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12 February 2020
Georgia pharmacy, pharmacist accused in civil suit of unlawfully dispensing thousands of opioids and other controlled substancesRead the Press Release
BRUNSWICK, GA: A South Georgia pharmacy and its pharmacist are accused in a newly filed federal civil complaint with dispensing thousands of highly addictive controlled substances in violation of the Controlled Substances Act.
Chip’s Discount Drugs Inc., Chips Discount Drugs LLC, and pharmacist Rogers Wood, of Hazlehurst, Ga., are accused in the suit, filed in U.S. District Court by the U.S. Attorney’s Office for the Southern District of Georgia, of failing to recognize “red flags” of improper and illegitimate prescriptions, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia.
The suit is part of the ongoing crackdown by the Southern District U.S. Attorney’s Office and its federal law enforcement partners to combat the opioid crisis through criminal prosecutions and civil actions.
“Pharmacists have responsibilities under the law which nearly all follow,” said U.S. Attorney Christine. “This lawsuit is part of our office’s continuing effort seeking to hold accountable every level of the distribution chain who fail to act consistent with the basic obligations of the law.”
As alleged in the suit, the defendants “knew or should have known” that many of the prescriptions it filled were not issued for legitimate reasons. Those “red flag” warnings of drug abuse and diversion included numerous patients traveling long distances to get prescriptions filled; simultaneous prescriptions to the same patients for similar drugs; prescriptions for the same drugs in multiple strengths; prescriptions for daily doses higher than medically necessary; prescriptions for drug combinations well-known in the medical and pharmacy community as carrying a high risk of drug abuse; and a disproportionate level of cash sales.
The suit also alleges that the defendants could not account for more than 9,000 oxycodone and hydrocodone pills supplied to the pharmacy as required by the Controlled Substances Act.
Dispensing drugs in violation of the Controlled Substances Act carries a civil penalty of up to $64,820 per violation, and failing to maintain and provide accurate prescription records carries a civil penalty of up to $15,040 per violation. The suit alleges “thousands” of violations by Wood and Chip’s Pharmacy.
Robert J. Murphy, the Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA) said, “DEA Diversion investigators did remarkable work in this case. DEA Diversion, its law enforcement partners and the U.S. Attorney’s Office will continue to aggressively pursue healthcare providers who are not in compliance with mandatory regulations.”
The claims asserted against the defendants are allegations only and there has been no determination of liability.
The DEA is investigating the case, and Assistant U.S. Attorneys Bradford C. Patrick and Jonathan A. Porter are representing the United States.
Freeland Man Sentenced to 270 Months’ Imprisonment for Drug Trafficking, Firearms, and Explosives OffensesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on February 11, 2020, Roberto Torner, age 47, of Freeland, Pennsylvania, was sentenced to 270 months’ imprisonment and five years of supervised release, by United States District Court Judge Malachy E. Mannion, for drug trafficking, firearms, and explosives offenses.
According to United States Attorney David J. Freed, Torner was convicted following a 13-day jury trial of conspiring to distribute 15 grams of heroin from June 2, 2015 and June 8, 2015, and for distributing five grams of heroin on June 8, 2015. Torner also was convicted of possessing and conspiring to possess firearms as a multi-convicted felon. From May 12, 2012 to August 28, 2017, Torner obtained and had access to numerous firearms, including several that were maintained by his co-defendant, Liza Robles.
After Torner was charged initially with heroin trafficking and firearms offenses, he was released on bail in advance of trial. While on pretrial release, Torner planted stolen, U.S. military C4 plastic explosives at the residence of his co-defendant, David Alzugaray-Lugones. Judge Mannion also found that Torner obstructed justice by lying on the stand at trial about his criminal activities, and by destroying evidence—his own shirt—in the middle of trial by flushing it down a holding cell toilet bowl.
Torner’s codefendants, Liza Robles and David Alzugaray-Lugones, also were convicted at trial of heroin trafficking offenses, and Robles was convicted of firearms offenses. Alzugaray-Lugones previously was sentenced to 27 months of imprisonment. Robles previously was sentenced to 36 months of imprisonment.
Judge Mannion ordered Torner to pay a $20,000 fine. Judge Mannion also ordered the forfeiture of the ammunition and firearms seized during the investigation, which included a:
- Magnum Research 1911U .45acp, Serial Number U100343;
- Hi-Point JHP .45acp, Serial Number 4266999;
- Stag Arms STAG-15, .223 cal., Serial Number 185412, which is capable of accepting a high capacity magazine;
- Mossberg 500 12-gauge shotgun, Serial Number U080316;
- Norinco MAC90, 7.62x39, Serial Number 934134, which is capable of accepting a high capacity magazine; and a
- Tikka T3, 30.06, Serial Number C77995.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Weatherly Police Department, the Luzerne County Drug Task Force, the Pennsylvania State Police, and other federal, state, and local law enforcement agencies. Assistant United States Attorneys Phillip Caraballo and Todd Hinkley prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
The case also was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Fort Wayne Man Sentenced to 15 YearsRead the Press Release
FORT WAYNE – Jeremiah Montel, age 40, of Fort Wayne, Indiana was sentenced before U.S. District Court Judge Holly A. Brady upon his guilty plea to the sexual exploitation of minors, announced U.S. Attorney Kirsch.
Montel was sentenced to 180 months in prison, 5 years of supervised release and ordered to pay $5000.
According to documents in this case, from April 2016 through April 2017, Montel enticed a minor to produce child pornography.
The case was investigated by the Federal Bureau of Investigation’s Violent Crimes Against Children Task Force. The case was handled by Assistant United States Attorney Lesley J. Miller Lowery.
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Former mayor arrested in fraud schemeRead the Press Release
McALLEN, Texas – The former mayor of La Joya has been indicted on two counts of wire fraud relating to a public relations contract and the purchase of real property, announced U.S. Attorney Ryan K. Patrick.
Authorities arrested Jose “Fito” Salinas, 81, today. He is expected to make his initial appearance before U.S. Magistrate Judge Juan Alaniz 11 a.m. tomorrow.
A federal grand jury returned the indictment Feb. 11. It was unsealed today upon his arrest.
From June 2018 to approximately November 2018, the City of La Joya entered into a public relations contract with Sylvia Garces Valdez, according to the charges. As a condition for receiving the contract, the mayor’s daughter - Frances Salinas De Leon – was to allegedly receive a portion of the contract’s payments.
The indictment alleges that from January 2016 to approximately July 2016, Salinas devised a scheme that resulted in the City of La Joya purchasing property he owned at a highly-inflated rate.
If convicted, Salinas faces up to 20 years in federal prison and up to $250,000 maximum fine. The indictment also includes a notice of intent to forfeit $235,000.
Former La Joya Housing Authority member Valdez, 39, La Joya, is also charged in relation to the scheme as is former interim executive director for the La Joya Housing Authority – De Leon, 52, La Joya. They face up to 10 and 20 years in prison, respectively.
The FBI, Department of Housing and Urban Development - Office of Inspector General conducted the investigation. Assistant U.S. Attorneys Sarina S. DiPiazza and Roberto Lopez, Jr. are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Former President of Labor Union Sentenced to 2 Years in Prison for Demanding and Accepting BribesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that GLENN BLICHT, the former president of a labor union (the “Union”), was sentenced to 24 months in prison for violating the Taft-Hartley Act by demanding and accepting approximately $150,000 in bribe payments from an employer (the “Employer”). In exchange for these bribes, BLICHT did not represent Union members’ interests. BLICHT previously pled guilty before United States District Judge Analisa Torres, who also imposed today’s sentence.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As the president of a labor union, Glenn Blicht’s duty was to fight for his union members. Instead, he repeatedly sold them out in exchange for cash bribes, which he spent on luxury items. For this betrayal, he has been sentenced to federal prison.”
According to the allegations in the Indictment to which BLICHT pled guilty, public court filings, and statements made in court:
From 2009 through 2019, BLICHT served as an officer of the Union, including as its president for many years. In that role, BLICHT had a duty to act in the best interests of the Union and its members, including by avoiding personal financial conflicts of interest with the Union. Nevertheless, BLICHT demanded and received cash payments from the Employer, which employed a number of members of the Union. For instance, on July 26, 2019, BLICHT received a $10,000 cash bribe from an official of the Employer at a restaurant in New York, New York; BLICHT was arrested outside this restaurant, in possession of the $10,000 bribe.
In exchange for these bribes, BLICHT repeatedly declined to represent Union members’ interests, such as declining to pursue arbitration claims on their behalf. In total, BLICHT received approximately $150,000 in bribes from the Employer over about 10 years.
BLICHT used the monies he received to purchase luxury items, such as designer watches, custom clothing, tickets to sporting events, meals at expensive restaurants, and cigars.
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In addition to his prison term, BLICHT, 57, of Wilton, Connecticut, was ordered to serve two years of supervised release. BLICHT was also ordered to forfeit $150,000 in criminal proceeds. Under the terms of his plea agreement, BLICHT has also agreed to a 13-year ban, which generally prohibits him from, among other things, being employed by a labor union or employee benefit plan, pursuant to 29 U.S.C. §§ 504 and 1111.
Mr. Berman praised the Department of Labor’s Office of Inspector General and Employee Benefits Security Administration, the Internal Revenue Service, Criminal Investigation Division, and the Federal Bureau of Investigation for their outstanding work on the investigation. Mr. Berman also thanked the Department of Justice’s Labor-Management Racketeering Unit of the Organized Crime and Gang Section for its assistance in this case.
This matter is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Michael D. Neff is in charge of the prosecution.
Former Police Officer Sentenced to 10 Years in Federal Prison for Possession of Child PornographyRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that David Delaney, age 29, of Golden, Colorado, was sentenced to serve 120 months (10 years) in federal prison, followed by 5 years of supervised release for possessing images of child pornography. Delaney was also ordered pay $3,000 in restitution to a victim of his crime. At the conclusion of the sentencing hearing, Delaney was remanded to custody of the United States Marshal. Homeland Security Investigations (HSI) Special Agent in Charge Steven W. Cagen joined in today’s announcement.
According to court records, including stipulated facts contained in the defendant’s plea agreement, and publicly available employment information, Delaney was an officer with the Red Rocks Community College Police Department prior to his arrest. In June 2018, law enforcement officers in Colorado from four agencies independently discovered Delaney’s computer offering child pornography for distribution online via a file-sharing program. Each of these officers downloaded files from Delaney’s computer and confirmed that the files were images and videos of child exploitation, including many graphic videos of child sexual assaults.
On July 31, 2018, and August 3, 2018, search warrants were executed by the Golden Police Department and HSI at Delaney’s residence. Delaney was not present during the search because he had been traveling internationally. Authorities seized electronic media, including an SD card that had been hidden in Delaney’s bedroom. The SD card revealed a deleted folder containing remnants of a video depicting the sexual assault of a minor girl by an adult man. Officers also discovered a shelf in Delaney’s bedroom that contained pictures depicting Delaney and a child, along with various notes and memorabilia involving Delaney and the child. Further investigation revealed that Delaney had access to another child. During the sentencing hearing, the Court found that Delaney had engaged in a pattern of activity involving the sexual abuse of the second child and that he was grooming the first child for abuse.
On August 6, 2018, Delaney returned to the United States and was found to be in possession of various electronic media which was searched pursuant to a federal search warrant. Child pornography as well as remnants of several file-sharing programs were found in deleted space on that media.
“These actions are reprehensible,” said U.S. Attorney Jason Dunn. “As a police officer, the defendant took an oath to uphold the law. Today, the law was upheld, and this defendant is held to account.”
“Plain and simple, this criminal’s disgusting actions stripped these victims of their innocence and dignity,” said Steven Cagen, Special Agent in Charge of Homeland Security Investigations, Denver. “HSI special agents are highly skilled and trained to use the most advanced technology available to locate, identify and investigate these criminals. We aggressively work with community members and our law enforcement partners to rescue these innocent children and prosecute their exploiters.”
U.S. District Court Judge Raymond P. Moore pronounced the sentence. The case was investigated by HSI in collaboration with the Jefferson County Sheriff’s Office, the Golden Police Department, the FBI, the Durango Police Department and the Arapahoe County Sheriff’s Office.
Delaney was prosecuted by Assistant U.S. Attorney Alecia L. Riewerts.
This matter is part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC coordinates 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 PSC, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
Former Owner of Lee County Truck Driving School Pleads Guilty to Conspiring to Pay Bribes to CDL ExaminerRead the Press Release
Montgomery, Alabama – On Tuesday, February 11, 2020, James F. Welburn, a resident of Columbus, Georgia and the former owner of American Truck Driving Academy, located in Lee County, Alabama, pleaded guilty to conspiring to commit bribery in relation to federal programs, announced United States Attorney Louis V. Franklin, Sr. and Regional Special Agent-In-Charge Todd Damiani, with the U.S. Department of Transportation Office of Inspector General.
According to court documents, Welburn paid bribes to a commercial driver’s license (CDL) examiner in exchange for the examiner showing preferential treatment to American Truck Driving Academy students when those students took CDL driving exams. Specifically, Welburn paid the examiner $25 per student tested by the examiner. In exchange for these payments, the examiner agreed to do things like: (1) test students even though students had not possessed learner’s permits for at least 14 days, as required by federal regulations; (2) test more than five students in a single day, in violation of state law; and (3) refrain from testing students on certain trucking maneuvers if the students were unlikely to be able to perform the maneuvers.
Welburn will have a sentencing hearing scheduled in the next few months where he will face up to five years in prison. He also faces substantial monetary penalties and restitution.
“In putting profit ahead of ensuring that his students could safely operate commercial vehicles, Mr. Welburn placed thousands of individuals at danger,” noted United States Attorney Franklin. “It is my hope that as a result of this case, our roadways—in Alabama and across the country—will become somewhat safer places.”
“The guilty plea of James Welburn related to charges of paying bribes for falsifying commercial driver license documents demonstrates our commitment to ensuring safety on the roads by requiring that only qualified individuals obtain CDLs,” stated Todd Damiani, Regional Special Agent-In-Charge, U.S. Department of Transportation Office of Inspector General. “Working with our Federal, State and local law enforcement and prosecutorial partners, we will continue our vigorous efforts to prevent and detect CDL fraud schemes which adversely affect the public trust throughout Alabama and elsewhere.”
This case was investigated by the United States Department of Transportation Office of Inspector General, with assistance from the Georgia Department of Drivers Services, the Federal Motor Carrier Safety Administration, the United States Department of Labor – Office of Inspector General, and the Alabama Law Enforcement Agency. Assistant United States Attorneys Jonathan S. Ross and Thomas R. Govan, Jr. are prosecuting the case.
Former Fort Drum Soldiers Plead Guilty to Burglarizing North Country Firearms DealersRead the Press Release
SYRACUSE, NEW YORK – Rian Patterson, age 23, and Devin Diggs, age 20, who were soldiers stationed at Fort Drum, New York, pled guilty yesterday to felony charges in connection with the burglaries of federally licensed firearms dealers in September 2019, announced United States Attorney Grant C. Jaquith and John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
In pleading guilty, Patterson and Diggs admitted to stealing firearms during the burglary of a licensed federal firearms dealer in Gouvernuer, New York, on September 14, 2019, and to the burglary of a second licensed federal firearms dealer in De Kalb Junction, New York, on September 29, 2019. As part of their guilty pleas, both men also admitted to knowingly possessing stolen firearms taken during those burglaries in their barracks at Fort Drum, in Le Ray, N.Y. Patterson also admitted that he knowingly possessed a firearm with an obliterated serial number.
Patterson and Diggs each face up to 10 years in prison, a maximum fine of up to $250,000, and up to 3 years of supervised release, when they are sentenced by Senior United States District Judge Thomas J. McAvoy on June 16, 2020. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. Patterson and Diggs have already been discharged from the United States Army.
This case was investigated by the ATF, the U.S Army Criminal Investigation Division (ARMY CID), the St. Lawrence County Sheriff’s Department, and the New York State Police, and is being prosecuted by Assistant U.S. Attorney Thomas Sutcliffe.
This case is brought pursuant to 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.
Former Chief Operating Officer Pleads Guilty to Defrauding Asset Management Company and Its ClientsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that RICHARD DIVER pled guilty earlier today to fraud charges in connection with his embezzlement from the asset management company where he served as chief operating officer. Specifically, DIVER pled guilty to investment adviser fraud in connection with his fraudulently overbilling the company’s clients by hundreds of thousands of dollars and rerouting those funds into his personal account, and wire fraud for diverting millions of dollars in the company’s payroll to which he was not entitled to his personal account over a period of several years. DIVER pled before Judge Loretta A. Preska in Manhattan federal court.
Manhattan U.S. Geoffrey S. Berman said: “As he admitted today, Richard Diver betrayed his employer and his company’s clients, all to enrich himself to the tune of millions of dollars. This kind of fraud will not be tolerated.”
According to statements in the Indictment and Complaint in this case, and statements made in public court proceedings:
DIVER was the chief operating officer (“COO”) of a Manhattan-based asset management company (“Company-1”) that offers its customers investment planning and wealth management services. As COO, DIVER’s responsibilities included overseeing the company’s payroll and billing functions.
Beginning in 2011 and continuing into December 2018, DIVER fraudulently caused Company-1’s third-party payroll vendor to pay him salary significantly beyond his authorized salary and bonus. Over that period, DIVER caused over $4.5 million to be routed to his personal checking account above and beyond his approved compensation.
In 2017, DIVER began to also defraud Company-1’s clients. Typically, Company-1 billed its clients quarterly, in most cases having been authorized by the clients to deduct its investment advisory fees directly from their custodial accounts. DIVER began to cause an employee to run the billing process, which was based on a fixed percentage of the assets the clients had under the company’s management, at off-cycle intervals as to certain clients in addition to the regular quarterly intervals at which it billed legitimately. These billings were not accompanied by any notice. The clients affected by this practice therefore had their accounts debited twice, but were only notified of the single legitimate billing in periodic reports and correspondence from the company. DIVER routed the excess funds to his own personal bank accounts through the company’s payroll system. Through this mechanism, DIVER defrauded the clients of over $700,000.
In December 2018, certain clients noticed the overbilling and complained to Company-1’s president, who confronted DIVER. DIVER admitted to both fraudulent practices, stating that the funds he had stolen were consumed by his own “wild” spending. More recently, law enforcement agents recorded a conversation in which DIVER acknowledged having defrauded the company of $4.5 million through the payroll fraud and certain clients of over $700,000 through the billing fraud.
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DIVER, 63, of New York New York, pled guilty to one count of investment adviser fraud and one count of wire fraud. The wire fraud count carries a maximum potential sentence of 20 years in prison. The investment adviser fraud count carries a maximum sentence of five years in prison. The maximum potential penalties are prescribed by Congress and are 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 U.S. Postal Inspection Service and thanked the New York Regional Office of the U.S. Securities and Exchange Commission, which has filed civil charges against DIVER in a separate action.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorney Martin S. Bell is in charge of the prosecution.
Former Chandler Police Officer Pleads Guilty to Illegal Possession of Firearm SilencersRead the Press Release
OKLAHOMA CITY – STEVEN BRADLEY SIMON, 47, of Chandler, has pleaded guilty to illegal possession of firearm silencers, announced U.S. Attorney Timothy J. Downing.
A Superseding Indictment returned by the Grand Jury on January 21, 2020, charged Simon with two counts of illegal possession of firearm silencers. Simon pleaded guilty to these two counts on February 11, 2020, before Senior U.S. District Judge Joe Heaton. He admitted that he had failed to register the firearm silencers in the National Firearms Registration and Transfer Record and that the firearm silencers did not contain identifying information as required by federal law.
Each count of conviction carries a term of imprisonment of up to 10 years, a fine of up to $250,000, and a term of up to three years of supervised release. Sentencing will take place in approximately 90 days.
This case is a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Chandler Police Department and the Lincoln County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Nick Coffey.
Reference is made to public filings for more information.
Former CEO Sentenced in Scheme to Defraud Elderly Victims in the Sale of Worthless StockRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that KEITH ORLEAN was sentenced today in Manhattan federal court to 32 months in prison for participating in a scheme to use false statements to promote and sell stock in his company. ORLEAN pled guilty on September 26, 2019, to one count of securities fraud and one count of securities fraud conspiracy before U.S. District Judge Vernon S. Broderick, who also imposed today’s sentence.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Keith Orlean and his co-conspirators obtained more than $2 million by taking advantage of innocent investors – many of them elderly – through blatant lies. As this prosecution and today’s sentence reflect, this kind of predatory fraud will not be tolerated.”
According to the allegations contained in the Complaint, the Indictment, and statements made in related court filings and proceedings:
For several years, ORLEAN and his codefendants operated a fraudulent scheme in which a salesman named “Mike Palmer” would call elderly persons on the phone and offer them what he claimed was a time-sensitive opportunity to buy stock in certain companies. In fact, there was no “Mike Palmer,” and the salesman was actually Vladimir Ziskind or Kevin Weinzoff, co-conspirators of the defendant who were taking turns using the fake alias. The purported time-sensitive investment opportunity was also fabricated by the defendants, as the company in which they solicited investments were actually companies under their control. In one intercepted phone call conversation, Ziskind described to KEITH ORLEAN his strategy for a successful investor sales pitch as: “You ram it down their fucking throat.” In another intercepted call between Ziskind and ORLEAN, upon learning that a particular victim investor died, Ziskind remarked: “I knew I should have pulled the last $10,000 out of him.”
The most recent version of the defendants’ phony sales pitch included false representations about an impending initial public offering, or “IPO,” for their company, Digital Donations Technologies, Inc. For example, in April 2018, one of the defendants assured a victim investor that “our company is doing great,” that the company had an offer for an IPO valued at approximately $300 million, and that defendant KEITH ORLEAN was considering a private sale of the company for more than $1.5 billion. In truth, however, the defendants knew that the company had little or no actual commercial value and that no such IPO or sale was taking place.
The Federal Bureau of Investigation (“FBI”) estimates that since April 2014, the defendants have convinced more than approximately 57 persons, many of whom were elderly, to purchase stock in companies controlled by one or more of the defendants based on false representations. During the period of the conspiracy, the defendants successfully solicited more than $2 million in stock purchases from victims.
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In addition to a prison term, ORLEAN, 62, of Hauppauge, New York, was sentenced to three years of supervised release, ordered to pay restitution in the amount of $2,080,771, and ordered to pay a forfeiture money judgment in the amount of $883,700.
Vladimir Ziskind and Kevin Weinzoff, who each previously pled guilty to his participation in the scheme, await sentencing.
Mr. Berman praised the outstanding work of the FBI.
The prosecution of this case is being overseen by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Robert Boone and Andrew Thomas are in charge of the case.
Florida Man Sentenced to Federal Prison for an Investment Fraud Scheme Involving Baton Rouge Area VictimsRead the Press Release
United States Attorney Brandon J. Fremin announced that U.S. District Judge Brian A. Jackson sentenced Wallace Byers, age 60, of Miami, Florida, to 121 months in federal prison following his conviction for wire fraud. The Court further sentenced Byers to three years of supervised release following his term of imprisonment, and ordered him to pay restitution in the amount of $6,880,000.
According to admissions made as part of Byers’ guilty plea, between October 2014 and November 2018, he solicited victims in the Baton Rouge area and elsewhere to invest with his company, WBI Associates, Inc., promising victims large returns in a short time frame. Byers focused his solicitations on older individuals and those who had been victims of prior schemes. He promised his victims that the money would be invested, variously, in gold production, a lottery company, foreign currency, or “dark pools” or “blind pools.” Whenever his victims pressed for returns or refunds of their money, Byers gave various excuses for delays – the money was invested overseas, other individuals had to “sign off,” or more money needed to be invested before any was paid out. In truth, instead of investing the money as promised, Byers spent the money on personal expenditures, including among others, approximately $10,000 per month in rent for his residence in a Miami hotel, the lease of luxury cars, and gambling in casinos. Byers admitted that he received between $3,500,001 and $9,500,000 as a result of his scheme, $3,000,000 of which he sent to a Swiss bank account he controlled. Byers also admitted that he had two prior federal felony convictions, one of which was for a similar wire fraud scheme.
As part of the investigation, the FBI seized several bank accounts controlled by Byers, including the funds in the Swiss bank account. The FBI also seized $260,000 in cash, $230,000 of which was seized from one of his safe deposit boxes, and $30,000 of which was seized from a safe in his residence. Byers’ interest in these bank accounts, in the cash, and in other items has been forfeited. All property forfeited to the United States, including the cash and the funds in the bank accounts, will be made available for distribution to all of the victims.
U.S. Attorney Brandon J. Fremin stated, “Preventing and prosecuting elder fraud is a priority of the Department of Justice, and this sentence should serve as a warning to those who would commit crimes against our vulnerable citizens that we will use all of our resources, both here and abroad, to bring offenders to justice and punish those that break the law. I applaud the efforts of our prosecutors and the FBI in the conviction of this defendant and seizing proceeds of the theft.”
Bryan A. Vorndran, FBI New Orleans Special Agent in Charge stated, “Wallace Byers left his victims broke and betrayed. Unfortunately, the investment funds and life savings stolen from vulnerable members of our community has negatively impacted each of their lives. Throughout his endeavors, Byers demonstrated a lack of integrity, self-control, and morals, as he defrauded elderly victims from seven different states. I hope today’s sentence serves as a small victory for all his victims who remain traumatized by his actions. If you believe you are a victim of elder fraud, please contact the FBI at 1-800-CALL FBI or online at https://tips.fbi.gov.”
This matter was investigated by the Federal Bureau of Investigations - Baton Rouge Field Office, and was prosecuted by Assistant United States Attorneys Elizabeth E. White, Peter J. Smyczek, Demetrius D. Sumner, and J. Brady Casey, and former Assistant United States Attorney Jay Thompson.
The Department of Justice’s Elder Justice Initiative aims to combat elder financial exploitation by expanding efforts to investigate and prosecute financial scams that target seniors; educate older adults on how to identify scams and avoid becoming victims of financial fraud; and promote greater coordination with law enforcement partners. For more information please visit: https://www.justice.gov/elderjustice.
Five Texas Men Sentenced to Federal Prison for their Roles in Scheme to Launder Millions from Business Email Compromise FraudRead the Press Release
In Austin this afternoon, a federal judge sentenced a Nigerian National formerly residing in Houston to 135 months in federal prison for his role in laundering millions derived from Business Email Compromise (BEC) schemes, announced U.S. Attorney John F. Bash; Special Agent in Charge Shane Folden, Homeland Security Investigations (HSI), San Antonio; and, Inspector in Charge Adrian Gonzalez, U.S. Postal Inspection Service (USPIS), Houston Division.
In addition to the prison term, U.S. District Judge Robert Pitman ordered that 32-year-old Bameyi Kelvin Omale pay $5,378,292.03 in restitution.
“At DOJ we take cyber-theft extremely seriously, and we work tirelessly to protect our economy from sophisticated criminal schemes that target American businesses and consumers,” stated U.S. Attorney Bash.
“Today’s sentencing highlights HSI’s commitment to imposing consequences on cybercriminals, no matter who they are or where they are,” said HSI Special Agent in Charge Folden. “The vast scope of this criminal scheme had a devastating effect on businesses, consumers and financial institutions. HSI is uniquely positioned to investigate and mitigate weaknesses within the U.S. financial, trade, and transportation sector that can be exploited by transnational criminal networks.”
“The U.S. Postal Inspection Service is committed to defending the nation’s mail system from illegal use,” stated USPIS Inspector in Charge Gonzalez. “The sentence handed down today will send a clear message to those criminals who decide to use the U.S. mail in furtherance of their deceptive schemes. Postal Inspectors will continue to work with our law enforcement partners to investigate and bring them to justice.”
On September 24, 2019, Omale pleaded guilty to one count of conspiracy to launder monetary instruments. Prior to Omale, three of his four co-defendants–Chinonso Agbaji, a 30-year-old resident of Houston; Igho Calaba, a 26-year-old resident of Austin; and Chibuzor Stanley Uba, a 31-year-old resident of San Antonio–also pleaded guilty to the same charge. Last month, Judge Pitman sentenced: Agbaji to 78 months in federal prison; Uba to 36 months in federal prison; and, Calaba to 30 months in federal prison.
The fourth co-defendant, Nnamdi Nwosu, a 33-year-old resident of Houston, is charged by indictment with one count of conspiracy to launder money instruments and one count of passport fraud in furtherance of the money laundering conspiracy. Nwosu remains a fugitive in this case.
Two other defendants involved in this scheme have also pleaded guilty to federal charges and have been sentenced. In December, Judge Pitman sentenced Joseph Odibobhahemen, a 29-year-old resident of Austin who pleaded guilty to the same money laundering conspiracy charge, to 78 months in federal prison and ordered him to pay $1,639,419.57 in restitution. Judge Pitman is scheduled to sentence the final defendant, Nosa Onaghise, next week. In December 2018, the 33-year-old resident of Austin, pleaded guilty to one count of passport fraud in furtherance of the money laundering conspiracy. As alleged in court documents, they were acting as part of the same scheme to launder funds from BEC fraud.
According court records, the funds were largely derived from BEC schemes perpetrated against U.S. and foreign victims. Over $10 million was allegedly sent by victims to accounts controlled by the defendants, who were able to take in excess of $3 million before law enforcement or financial institutions stopped the fraudulent transfers. In a BEC scheme, scammers target businesses and individuals making wire transfer payments, often targeting employees with access to company finances. The scammers trick the employees into making wire transfer payments to bank accounts thought to belong to trusted partners—except the money ends up in accounts controlled by the fraudsters. Sometimes the scammers use computer intrusion techniques to alter legitimate payment request emails, changing the recipient bank accounts. Sometimes they send spoofed emails from email addresses similar to trusted partners.
Whatever the BEC method used, the scammers need bank accounts controlled by coconspirators to collect the stolen money. The indictment alleges that the conspirators acquired or controlled dozens of bank accounts opened in the U.S., including in Austin, TX, utilizing fraudulent identification documents, including fraudulent foreign passports in fake names. The indictment alleges that once the funds were fraudulently procured and deposited into these bogus accounts, the defendants worked quickly to withdraw or transfer the funds.
The indictment further alleges that some of the conspirators also received funds sent by the victims of romance fraud.
This indictment resulted from a continuing investigation by HSI and USPIS. The FBI also assisted in the investigation as did the California Highway Patrol. The U.S. Attorney’s Offices for the Southern District of Texas and the Southern District of New York also provided assistance. Assistant U.S. Attorneys Michael Galdo and Keith Henneke are prosecuting this case on behalf of the government.
Anyone with information as to the whereabouts of Nnamdi Nwosu is asked to contact U.S. Immigration and Customs Enforcement (ICE). ICE encourages the public to report any suspicious activity through its toll-free Tip Line at 1-866-DHS-2-ICE or by completing its online tip form. Both are staffed around the clock by investigators. From outside the U.S. and Canada, callers should dial 802-872-6199. Hearing impaired users can call TTY 802-872-6196.
Money laundering conspiracy calls for up to 20 years in federal prison upon conviction; passport fraud calls for up to 10 years in federal prison upon conviction.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. Nwosu is presumed innocent until proven guilty in a court of law.
Firing a Revolver During an Altercation at a Downtown Gas Station Earns Felon Federal PrisonRead the Press Release
A felon and drug user who fired a revolver during an altercation with another man at a downtown gas station was sentenced February 13, 2020 to more than 3 years in federal prison.
Kenneth Everett, age 29, from Sioux City, Iowa, received the prison term after an October 4, 2019, guilty plea to being a felon in possession of a firearm. Everett was previously convicted of robbery in Mississippi.
Evidence at Everett’s detention, change of plea, and sentencing hearings revealed Eleazar Lopez-Martinez (who subsequently died in an unrelated incident) pursued Everett with a knife, for reasons unknown, and Everett retrieved a loaded handgun from his car. A video shows the two men faced off for a period of time until Everett fired a shot that missed Lopez-Martinez, but which placed the public and patrons of the gas station at risk of serious harm.
Everett’s criminal history includes a robbery conviction, a domestic assault conviction, and other minor offenses. He was also a regular user of marijuana at the time of the shooting.
Everett was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Everett was sentenced to 37 months’ imprisonment. He must also serve a 2-year term of supervised release after the prison term. There is no parole in the federal system.
Everett is being held in the United States Marshal’s custody until he can be transported to a federal prison
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian partners: Sioux City Police Department. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was investigated by the Sioux City, Iowa Police Department. It was prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-4066.
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Fifteen Defendants Indicted on Federal Racketeering and Drug Conspiracy Charges at Jessup Correctional InstitutionRead the Press Release
Greenbelt, Maryland – A federal grand jury has indicted 15 defendants on federal racketeering and drug conspiracy charges at the Jessup Correctional Institution (JCI), including correctional officers, inmates, and outside “facilitators,” for allegedly paying bribes to correctional officers to smuggle contraband, including narcotics, alcohol, tobacco, and cell phones into the prison. The indictment was returned on February 5, 2020, and made public today upon the arrest of 11 of the defendants. Three of the defendants were arrested earlier this week. Law enforcement is still seeking outside facilitator, Trinesse Butts.
The indictment 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 Secretary Robert Green, of the Maryland Department of Public Safety and Correctional Services.
“Corrupt correctional officers endanger the lives of their co-workers and of the inmates entrusted to their care and supervision,” said United States Attorney Robert K. Hur. “They also endanger the entire community, as prisoners can use contraband cell phones to direct criminal activity outside prison walls. The United States Attorney’s Office will continue to work with our law enforcement partners to root out prison corruption and prosecute correctional officers who abuse their positions of trust to facilitate and engage in criminal behavior.”
“The public expects its correctional officers to guard the wall that divides those who are in prison from the community. But the allegations in the indictment show that the defendants were nothing more than corrupt gatekeepers -- allowing the free flow of criminal activity in and out of the prison,” said Jennifer Boone, Special Agent in Charge of the Baltimore Field Office of the FBI. “Today’s charges show that no one in a position of public trust who carries out a criminal conspiracy is beyond the reach of the dedicated agents, officers and detectives from Maryland’s law enforcement agencies.”
“Nothing matters more than the safety of our citizens, our correctional employees, and the inmates in our custody," said DPSCS Secretary Robert L. Green. "We have worked diligently on this case from the moment we learned of the potential security compromise. And, we'll continue to work closely with our local and federal law enforcement partners to maintain secure facilities for our employees and the inmates in our care.”
According to the indictment, JCI was a maximum-security prison that housed approximately 1,800 male inmates, with approximately 423 Correctional Officers (COs).
The two-count indictment alleges that from at least 2017 until the present, the COs, inmates, and outside facilitators conspired to smuggle contraband into JCI, including narcotics, alcohol, tobacco, and cell phones, in order to enrich themselves and protect and expand their criminal operation. According to the indictment, defendant COs accepted or agreed to accept payments from facilitators and/or inmates or engaged in sexual relations with inmates as consideration for smuggling contraband into JCI. Inmates allegedly acted as both wholesalers and retailers of contraband and in the process made profits that far exceeded the profits that could be made by selling similar drugs on the street. For example, conspirator inmates could purchase Suboxone strips for approximately $3 each and sell them inside JCI for approximately $50 each, or for a profit of more than 1,000 percent.
The indictment alleges that the defendants conspired to smuggle and traffic in narcotics within JCI, including MDMA (commonly referred to as “molly” or ecstasy), buprenorphine (commonly referred to as “Suboxone,” a prescription opioid used to treat heroin addiction), and synthetic cannabinoids (otherwise known as “K2”), as well as other contraband, including cell phones, alcohol, and tobacco.
According to the indictment, although COs were required to pass through security screening at the entrance to JCI, the COs were able to hide contraband on their persons. Once the COs had the smuggled contraband inside the facility, they allegedly delivered it to inmates in the kitchens and in bathrooms or closets near where inmates and staff interacted, among other locations. The indictment alleges that defendant inmates who had jobs that allowed them to move throughout the prison took orders for contraband from inmates and delivered contraband to inmates. Further, the indictment alleges that defendant COs had sexual relationships with inmates and exchanged sex for contraband. In addition, these sexual relationships allegedly facilitated smuggling and trafficking relationships between COs and inmates.
According to the indictment, inmates and facilitators paid COs for smuggled contraband in cash, as well as using Cash App, Green Dot cards, and other forms of electronic payments. Inmate defendants were able to use contraband cell phones or the jail call system to direct outside facilitators to pay corrupt COs directly using the Cash App from within JCI. Inmate defendants also received payments from inmates for contraband through Green Dot and other forms of electronic payments, often with the assistance of facilitators.
If convicted, the defendants face a maximum sentence of 20 years in prison for the racketeering conspiracy and 20 years in prison for the drug trafficking conspiracy. 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. The arrested defendants will have initial appearances in U.S. District Court in Baltimore today.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The U.S. Attorney expressed appreciation to the Department of Public Safety and Correctional Services, whose staff initiated the JCI investigation and have been full partners in this investigation.
United States Attorney Robert K. Hur commended the FBI and the Department of Public Safety and Correctional Services for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Burden H. Walker and Lauren E. Perry, who are prosecuting this case.
JCI Indictment Defendants
Correctional Officers: Dominique Booker, Correctional Officer, age 43, of Baltimore; Chanel Pierce, Correctional Dietary Officer, age 27, of Pikesville, Maryland.
Inmates: Page Boyd, age 35; William Cox, a/k/a Dollar, age 43; Kenneth Fonseca, a/k/a Bean, age 36; Marshall Hill, a/k/a Boosie, age 28; Vernard Majette, a/k/a Nard, age 38; and
Darnell Smith, a/k/a Hook, age 39.Facilitators: Chaz Chriscoe, a/k/a Cheese, age 39, of Owings Mills, Maryland; Vonda Bolden, age 55, of Baltimore; Latina Braxton, age 34, of Baltimore; Trinesse Butts, age 36, of Parkville, Maryland; Sataya Hall, a/k/a Tia, age 37, of Baltimore; Laurice Norfleet, age 41, of Taneytown, Maryland; and
Samantha Washington, a/k/a Pinky, age 28, of Baltimore.# # #
Federal Felon Pleads Guilty to Gun ChargeRead the Press Release
NEW ORLEANS – United States Attorney Peter G. Strasser announced today that TERRELL RICHARDSON (“RICHARDSON”), age 36, of New Orleans, pled guilty to being a prohibited person in possession of a firearm in violation of 18 U.S.C.§ 922(g)(1). RICHARDSON faces a maximum term of imprisonment of ten years, up to $250,000 in fines, up to three years supervised release following any term of imprisonment, and a $100 special assessment fee.
According to court documents, Jefferson Parish Sheriff’s deputies stopped RICHARDSON after he committed a traffic violation on N. Causeway Blvd. in Metairie, Louisiana. Law enforcement smelled marijuana and proceeded to search RICHARSON’s vehicle. They discovered a reportedly stolen and loaded, SCCY Industries Model CPX-2, nine-millimeter caliber semi-automatic firearm, bearing serial number 192060. RICHARDSON possessed the firearm after having been convicted on January 22, 2002 of a federal felony offense. The court set sentencing in this matter for May 13, 2020. RICHARDSON faces a maximum term of imprisonment of ten (10) years, a maximum $250,000 fine, up to three (3) years supervised release, and a $100 special assessment fee.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This matter was handled by the Bureau of Alcohol, Tobacco, Firearms and Explosives along with the Jefferson Parish Sheriff’s Office. Assistant United States Attorney Duane A. Evans is prosecuting the case.
East Glacier Park man convicted at trial of involuntary manslaughter, assault in vehicle crashRead the Press Release
GREAT FALLS – A jury today convicted an East Glacier Park man accused of killing one passenger and seriously injuring a second passenger after he had been drinking and driving and crashed in Glacier National Park last year, U.S. Attorney Kurt Alme said.
The jury found Leo James Hagan, 19, guilty of involuntary manslaughter and of assault resulting in serious bodily injury. Hagan faces a maximum eight years in prison, a $250,000 fine and three years of supervised release on the manslaughter charge and a maximum 10 years in prison, a $250,000 fine and three years of supervised release on the assault charge.
U.S. District Judge Brian M. Morris presided. Judge Morris set sentencing for June 3 and continued Hagan’s release.
The trial began on Monday.
“Drinking and driving often ends tragically. We will prosecute those who do so to the full extent of the law to ensure that we keep our national parks safe. I want to thank Assistant U.S. Attorneys Kalah Paisley and Ethan Plaut, along with the National Park Service, Blackfeet Law Enforcement Services and Medical Services, the Glacier County Sheriff’s Office and the Montana Highway Patrol for investigating and prosecuting this case,” U.S. Attorney Alme said.
In evidence presented at trial, the prosecution said the crash occurred on June 11, 2019, on Two Medicine Road, near Lower Two Medicine Lake, about 200 yards inside of Glacier National Park. Hagan, and the two victims had been socializing at the Trailhead Saloon in East Glacier that night, and Hagan had consumed alcohol. The three left the saloon and traveled toward Two Medicine Lake with Hagan driving a Ford Escape. One passenger was in the front seat and one passenger was in the rear seat.
Hagan lost control of the vehicle, failed to negotiate a sharp left turn, went off the road and hit a tree. The vehicle spun and rolled and came to rest on the driver’s side. The front seat passenger was ejected and suffered severe injuries. The rear seat passenger also was ejected, pinned under the vehicle and died at the scene.
Hagan, the prosecution said, traveled on foot back toward his residence and called 911 on his cell phone. He reported there had been a crash and implied that he had come upon the scene and was otherwise not involved. He reported seeing one injured person but not his involvement, the cause or that a passenger had died.
The Glacier County Sheriff’s Office responded to the 911 call but struggled to find the scene initially because of the vague description Hagan had provided to the dispatcher. While looking for the crash, a deputy spotted a man, later identified as Hagan, walking along the road. Hagan did not try to flag down the marked vehicle. Deputies found the crash scene about two minutes later.
The injured passenger told officers there had been three people in the vehicle, which prompted law enforcement to look for Hagan.
A Blackfeet Law Enforcement Services officer found Hagan at his residence at about 2:30 a.m., and Hagan confirmed he had been in the crash. Hagan admitted he had been driving and refused medical treatment. A Montana Highway Patrol trooper began a drunken driving investigation, and Hagan admitted to a park service ranger that he had been driving and that the group had been drinking at the bar.
Hagan told law enforcement that the front seat passenger had put him in a headlock while he was driving and that he was traveling at 30 mph. Hagan was eventually transported to the Indian Health Service where a blood draw determined his blood alcohol level was .093 percent.
The injured passenger told law enforcement that nobody was “horsing around” in the vehicle, but that he also did not remember most of the events of that night.
A crash investigation determined that the vehicle was traveling more than 70 mph in a 45 mph speed zone when it crashed, that the driver never applied the brakes and that neither Hagan nor the front passenger was wearing a seatbelt. Hagan had claimed he was wearing a seatbelt and had braked.
Assistant U.S. Attorneys Kalah Paisley and Ethan Plaut are prosecuting the case, which was investigated by the National Park Service, Blackfeet Law Enforcement Services and Medical Services, the Glacier County Sheriff’s Office and the Montana Highway Patrol.
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Dominican National Pleads Guilty to False Identity CrimeRead the Press Release
Boston – A Dominican national residing in Boston pleaded guilty today in federal court in Boston to false representation of a Social Security number.
Altagracia Baez Guerrero, 27, pleaded guilty to one count of false representation of a Social Security number. U.S. District Court Judge Richard G. Stearns has not yet scheduled a sentencing date. Baez Guerrero has been in federal immigration custody since Feb. 11, 2019.
On March 14, 2016, Baez Guerrero falsely represented that a Social Security number was hers in an application for a learner’s permit at the Massachusetts Registry of Motor Vehicles. The victim whose identity was stolen told law enforcement that she had never visited, lived in, or worked in Massachusetts. The victim learned in 2018 that W-2s in her identity were issued for income earned at two different Massachusetts businesses the previous year. Based on information provided by one of the businesses, the victim learned that the imposter had provided a home address in Dorchester, which was the same address that the defendant used when applying for the learner’s permit.
The charge of false representation of a Social Security number provides for a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. Assistant U.S. Attorney Sandra S. Bower of Lelling’s Major Crimes Unit is prosecuting the case.
District Man Found Guilty of First-Degree Murder in 2008 Killing of Silver Spring ManRead the Press Release
WASHINGTON – Mason Binion, 32, of Washington, D.C., was found guilty after a jury trial of first-degree murder while armed, announced U.S. Attorney Timothy J. Shea and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Binion was found guilty following a trial in the Superior Court of the District of Columbia in front of The Honorable Ronna Lee Beck. Sentencing is scheduled for May 1, 2020. Proctor faces a potential sentence of life in prison without parole.
According to the government’s evidence, on June 21, 2008, at approximately 12:30 a.m., Binion and three other individuals drove the victim, Michael F. Taylor, from a recreation center in Silver Spring to the 600 Block of Emerson Street, Northwest, Washington, D.C. Binion and Taylor had arranged for a large purchase of drugs, and Taylor had given the drug money to a middleman who then took off with the money. Searching for revenge, Binion and his associates drove into the alley, stopped the car in front of a detached garage behind 610 Farragut Street, and then shot Taylor in the back of the head, killing him.
In announcing the verdict, U.S. Attorney Shea and Chief Newsham commended the work of those investigating the case from the Metropolitan Police Department (MPD). They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Dan Lenerz and Jeff Pearlman; Supervisory Victim/Witness Services Coordinator Katina Adams-Washington; Victim/Witness Services Coordinator La June Thames; Administrative Services Specialists Tina Wall; Supervisory Budget Specialist Nikiya Burnett; Paralegal Meridith McGarrity; Victim Advocate Marcia Rinker; Supervisory IT Specialist Leif Hickling; and Investigative Analyst Zach McMenamin.
Finally, they commended the work of Assistant U.S. Attorneys Gilead Light and Michael Spence, who prosecuted the case.
Dark Web Narcotics Trafficker Sentenced to 3½ Years in Prison in Connection with Laundering More Than $19 MillionRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that HUGH BRIAN HANEY was sentenced to 42 months in prison for money laundering charges, based on his attempt to launder the proceeds of a narcotics trafficking operation that HANEY ran on the Dark Web site known as “Silk Road.” HANEY previously pled guilty to the money laundering charges before United States District Judge Jed S. Rakoff, who also imposed today’s sentence.
U.S. Attorney Geoffrey S. Berman said: “Hugh Haney used the Dark Web site Silk Road to sell drugs illegally and avoid detection. He then laundered more than $19 million in profits through cryptocurrency. Now Haney is headed to prison for his crimes.”
As alleged in the underlying Complaint, Indictment, and statements made in open court:
Silk Road was an online criminal marketplace designed to be outside the reach of law enforcement or governmental regulation. All transactions on Silk Road could be completed only through use of the cryptocurrency Bitcoin. During its two-and-a-half years in operation, Silk Road was used by several thousand drug dealers and other unlawful vendors to distribute hundreds of kilograms of illegal drugs and other illicit goods and services to well over 100,000 buyers, and to launder hundreds of millions of dollars derived from these unlawful transactions. Law enforcement shut down Silk Road in or about October 2013.
One prominent narcotics vendor on Silk Road was called “Pharmville.” HANEY was one of the operators of Pharmville, which supplied a dedicated community of individuals who often traded illicit narcotics. HANEY had previously been convicted on federal charges for distributing narcotics via the Internet. In 2018, pursuant to a judicially authorized search of Haney’s house in Ohio, law enforcement agents found on a computer in Haney’s house a document entitled “HBH DAILY TO DO LIST,” which among other things referred to Silk Road, Pharmville, and large scale narcotics trafficking including of the deadly opioid fentanyl, as well as a ledger of customers whom HANEY had supplied with fentanyl and pharmaceutical drugs.
In 2017 and 2018, HANEY transferred Bitcoins representing narcotics proceeds he had earned through his control of Pharmville from Bitcoin addresses connected to Silk Road to an account HANEY controlled at a company involved in the exchange of Bitcoins and other digital currency (“Company-1”). In correspondence with Company-1, HANEY falsely claimed that he had legitimately earned these Bitcoins through cryptographically creating them and from fair transfers with others, while in reality the Bitcoin were derived from transfers from Silk Road. After HANEY transferred the Bitcoins to cash worth more than $19 million through Company-1, law enforcement seized the money pursuant to a judicially authorized seizure warrant from a custodial account at a bank (“Bank-1”).
* * *
In addition to his prison term, HANEY, 61, of Westerville, Ohio, was sentenced to three years of supervised release, and ordered to forfeit approximately $19 million and pay a fine of $10,000.
Mr. Berman praised the outstanding investigative work of Homeland Security Investigations.
This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Tara M. La Morte and Samuel L. Raymond are in charge of the prosecution.
Dark Web Fentanyl Trafficker Known as "the Drug Llama" Sentenced to 13 Years in Federal PrisonRead the Press Release
Melissa Scanlan (a/k/a “The Drug Llama”) has been sentenced to 160 months in federal prison in the
United States District Court for the Southern District of Illinois for trafficking fentanyl throughout the United States via the “dark web,” engaging in an international money laundering conspiracy, and distributing fentanyl that results in death.The crimes for which Scanlan was sentenced are as follows: one count of conspiracy to distribute fentanyl, five counts of distributing fentanyl, one count of selling counterfeit drugs, one count of misbranding drugs, one count of conspiracy to commit international money laundering, and one count of distribution of fentanyl resulting in death. The 32-year old San Diego native pleaded guilty to those charges in October 2019. Scanlan’s co-conspirator, Brandon Arias, 34, was previously sentenced to nine years in federal prison for his role in the conspiracy.
Facts disclosed in open court revealed that Scanlan and Arias created an account on “Dream Market,” a dark web1 marketplace where users buy and sell illegal substances and services, and used that account to sell substantial quantities of narcotics while operating under the moniker, “The Drug
Llama.” The charged fentanyl distribution conspiracy lasted from October 2016 to August 2018, during which time Scanlan sold approximately 52,000 fentanyl pills throughout the United States.According to court records, Scanlan and Arias made over $100,000 from their dark web drug trafficking and split the money evenly. Court records also demonstrated Scanlan’s participation in an international money laundering conspiracy with Mexican cartel members, as well as her role in aiding and abetting the distribution of fentanyl pills to a woman identified as A.W., who later died.
Commenting on the case, U.S. Attorney Steven D. Weinhoeft assailed the culture of criminality that exists on the dark web. “Criminals like Melissa Scanlan who recklessly flood our communities with opioids may think they can evade detection in the shadowy corners and back alleys of the internet.
But they will find no quarter there. Where they go, we will follow. With the collaboration of outstanding investigators at our partner agencies, we will use every tool and method available to find these people and prosecute them to the fullest extent of the law.” U.S. Attorney Steven D.
Weinhoeft also noted that this prosecution further underscores the critical need for Congress to permanently criminalize fentanyl analogues.“Illicit opioid distribution, whether online or through conventional drug distribution methods, and the resulting overdoses and deaths are a continuing national crisis; those who contribute to that crisis through their illegal actions will be brought to justice,” said Special Agent in Charge
Charles L. Grinstead, FDA Office of Criminal Investigations Kansas City Field Office. “We are fully committed to disrupting and dismantling illegal prescription drug distribution networks that misuse the internet at the expense of public health and safety.”“With accessibility of fentanyl, it is imperative that the Drug Enforcement Administration and its law enforcement partners exploit all distribution avenues utilized by drug traffickers in Scanlan’s case,” stated DEA Special Agent in Charge William J. Callahan of the St. Louis Division. “Scanlan distributed poison in our community that resulted in death and she is now being held accountable.”
This case was part of a months-long, coordinated national operation involving the Food and Drug
Administration – Office of Criminal Investigations, the Drug Enforcement Administration, the United
States Postal Inspection Service, the Department of Homeland Security, United States Customs and
Border Protection, the United States Attorney’s Office for the Southern District of California, and the United States Attorney’s Office for the Southern District of Illinois. Assistant U.S. Attorney Derek
J. Wiseman is the prosecuting attorney on the case.1 The dark web is an underground computer network that is unreachable by traditional search engines and Web Browsers. This false cloak has led to a proliferation of criminal marketplaces, like the one used by Scanlan and Arias.
Colorado Neurosurgeon and Related Companies Pay $2.35 Million to Resolve Allegations of Illegal KickbacksRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced today that Dr. William Choi and three companies he owned have paid the United States $2.35 million to resolve civil allegations that Dr. Choi received illegal kickbacks from distributors of spinal implant devices that he used in surgeries he performed.
The federal Anti-Kickback Statute makes it generally unlawful for a doctor to solicit or receive money or other remuneration paid to influence the doctor’s health care decisions. This statute protects patients whose medical expenses are paid from federal health care programs (such as Medicare and Medicaid). An unlawful kickback may occur if a doctor receives money or other perks intended to influence that doctor’s health care decisions, such as a referral to another practitioner or a choice of supplies for a surgery.
The United States alleges that Dr. Choi arranged to receive unlawful kickbacks, as follows. Dr. Choi is a neurosurgeon who, among other services, performs spinal surgeries. During the time period relevant to this matter, Dr. Choi performed surgeries at Sky Ridge Medical Center, Castle Rock Adventist and Porter Adventist hospitals. In 2011 and in 2015, Dr. Choi caused the creation of two distributorships of spinal equipment: Nexus Spine, LLC and 4D Spine, LLC. These two distributorships provided spinal implant equipment, such as rods, screws and cages, to hospitals for use in surgeries that Dr. Choi performed. Dr. Choi arranged for third parties to serve as the registered owners of both Nexus and 4D, while he secretly maintained control of both distributorships and the money those distributorships made. Through this arrangement, Dr. Choi solicited and received from Nexus and 4D improper payments and other benefits.
The United States alleges that this conduct violated the federal Anti-Kickback Statute, as well as the federal False Claims Act because these kickbacks meant that false claims for payments were made to federal health care programs – Medicare, Medicaid, and TRICARE. These payments were made for more than five years, from November 1, 2012 through June 30, 2017.
The lawsuit resolved by this settlement was originally filed by Mark Rahe. Mr. Rahe was an employee of Dr. Choi’s medical practice and, later, of distributorship 4D. As such, Mr. Rahe had inside knowledge of the kickback relationships. Mr. Rahe filed a civil action, under seal, in the United States District Court for the District of Colorado, captioned United States ex rel. Mark Rahe v. William Choi et al., No. 17-cv-01208-WJM-NRN (D. Colo.). Under the False Claims Act, private citizens who know about a fraud against the United States may present those allegations to the government by bringing a lawsuit under seal on behalf of the United States. If the government’s investigation substantiates those allegations and the United States obtains a monetary recovery under the False Claims Act, the private citizen may share in that monetary recovery.
“When doctors receive kickbacks, those kickbacks undermine patient trust in our healthcare system, and they also drive up medical costs,” said United States Attorney Jason Dunn. “It is important for patients to know that when a doctor chooses equipment for a surgery, that decision is being made solely on that patient’s best interest, and is not impacted in any way by someone paying a kickback. And it is important for doctors to know that if they get illegal kickbacks, they face serious penalties.”
“In 2013, we issued a Fraud Alert warning of physician owned distributorship schemes. The concern then, as now, is that surgeons would choose the most profitable products from distributorships they controlled and pass the bills to taxpayers,” said Curt L. Muller, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Working closely with our law enforcement partners, we will continue protecting the integrity of federal healthcare programs.”
"This settlement highlights the commitment of the Defense Criminal Investigative Service (DCIS) and its law enforcement partners to protect the integrity of the Department of Defense (DoD) health care program known as TRICARE," said DCIS Special Agent in Charge Michael C. Mentavlos. "DCIS aggressively investigates health care providers that defraud the DoD, to preserve American taxpayer dollars intended to care for our warfighters, their family members, and military retirees."
The claims settled by this civil agreement are allegations. In entering into this civil settlement, Dr. Choi did not admit to any liability.
The United States was represented in this matter by Assistant United States Attorney Andrea Wang.
Coles County Man to Serve 22 Years in Prison for Armed Robbery of Team Wireless StoreRead the Press Release
URBANA, Ill. – U.S. District Judge Michael M. Mihm has sentenced Alfred E. Jerry, 28, of Charleston, Ill., to 22 years in prison for the May 2, 2019, armed robbery of the Team Wireless store in Charleston, Ill. Jerry was sentenced on Feb. 11, 2020.
Jerry pleaded guilty on Sept. 30, 2019, to all three counts as charged in the indictment, including obstructing commerce by robbery, brandishing a firearm in furtherance of robbery, and possession of a firearm by a felon. The charges stem from Jerry’s May 2, 2019, robbery of the Team Wireless store located on Woodfall Drive in Charleston, Ill., which was recorded by the store’s security system.
The security recording, which was played at Jerry’s sentencing, showed a masked man wielding a revolver enter the store and order its two employees into a back room. The gunman threatened to shoot the employees if they did not comply. After the employees filled a trash bin with merchandise, the gunman took cash and keys from one of the employees. After more than five minutes in the store, the gunman left through the back door with the stolen merchandise and keys.
Police officers with the Charleston Police Department and the Eastern Illinois University Police Department arrested Jerry minutes after the robbery as he fled on foot. Police recovered a loaded revolver, stolen merchandise, and a ski mask containing DNA evidence linking Jerry to the robbery nearby.
Jerry has remained in the custody of the U.S. Marshals Service since his arrest on May 2, 2019.
The Federal Bureau of Investigation, the Charleston Police Department, the Eastern Illinois University Police Department, and the Coles County Sheriff’s Office, collaborated in the investigation. The case was prosecuted by Assistant U.S. Attorney Ryan Finlen.
Cleveland man sentenced to 15 years for selling a fatal dose of cocaine laced with heroin and fentanylRead the Press Release
Terry Lee Christian was sentenced today to 15 years of imprisonment for selling a mixture of cocaine, heroin and fentanyl that resulted in the fatal overdose of a man inside a downtown Cleveland hotel in July 2018. Christian previously pleaded guilty to selling the fatal mixture to the victim. This is the first prosecution in this District for causing the death of another by selling cocaine to a victim who was unaware that the cocaine was laced with heroin and fentanyl.
According to court records, members of the Cleveland Division of Police’s Heroin Involved Death Investigations Unit responded to a drug overdose at a hotel room in Cleveland on July 14, 2018. Officers observed a bag of suspected cocaine on the dresser and suspected cocaine residue on the dresser and bathroom vanity.
The narcotics were tested and found to be a mixture of cocaine, heroin and fentanyl. The packaging material was tested and the DNA found on the package matched Christian’s DNA.
A review of the victim’s phone and other evidence revealed that the victim met with Christian on July 13, 2018, and later exchanged several calls that day to establish a time and place for the victim to purchase cocaine. Specifically, Christian agreed to sell two grams of cocaine in exchange for $200. Shortly after their brief meeting and subsequent calls, the victim was seen on nearby surveillance cameras arriving at the agreed location and engaging in a hand-to-hand transaction. The victim neither requested nor knew that the cocaine he purchased from Christian was laced with heroin and fentanyl.
This matter was investigated by the Cleveland Division of Police and Drug Enforcement Administration, and prosecuted by Assistant U.S. Attorneys Vasile C. Katsaros and Margaret Sweeney.
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Career Offender Sentenced to 360 Months After Guilty Verdict for Gun and Drug CrimesRead the Press Release
COLUMBUS, Ga. – A convicted felon with an extensive criminal history in both Alabama and Georgia was sentenced to 360 months in prison after being found guilty for criminal gun and drug charges, announced Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia.
Freddie Clark, 43, of Phenix City, Alabama was sentenced by U.S. District Judge Clay Land on Tuesday, February 11, 2020. A citizen jury found Clark guilty on all three charges he was facing during a federal trial in September, including possession of a firearm by a convicted felon, possession of methamphetamine with intent to distribute, and possession of a firearm in furtherance of a drug trafficking crime. U.S. District Judge Clay Land presided over the federal jury trial in Columbus beginning on Monday, September 23, 2019. There is no parole in the federal system.
“Decreasing violent crime in Columbus is a top priority of our office, and we will prosecute violent and career offenders to the fullest extent of the law,” said U.S. Attorney Charlie Peeler. “I hope this stiff 30 year sentence sends a message to all criminals that guns and drugs do not pay in Columbus, Georgia. I want to thank the Columbus Police Department and the ATF for their excellent work in this case.”
Mr. Clark was pulled over by a Columbus Police Department officer for extreme erratic driving March 14, 2018 at 3:30 a.m. on Buena Vista Road. Mr. Clark did not exit the car as directed, and upon approaching the vehicle, the arresting officer saw a pistol on Mr. Clark’s lap. The officer was able to remove the loaded Ruger .380 from Mr. Clark and the defendant was taken into custody. Officers found various drugs and 85 grams of methamphetamine on Mr. Clark and inside his vehicle. Mr. Clark has a total of eight prior felony convictions in Alabama and Georgia state courts.
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.
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/archives/projectguardian.
The case was investigated by the Columbus Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant U.S. Attorney Christopher Williams is prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Buffalo Man Sentenced for Cashing Counterfeit and Altered Checks at Local Banks and Credit UnionRead 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 Nilo Arnaldo Pena Delgado, 32, of Buffalo, NY, who was convicted of bank fraud, was sentenced to serve 12 months and one day in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Charles M. Kruly, who handled the case, stated that on March 19, 2019, the defendant cashed four counterfeit or altered checks totaling $30,680.89 drawn on the accounts of four different victims at financial institutions in the Western New York area.
The plea and sentencing are the result of an investigation by the United States Postal Inspection Service, Boston Division, under the direction of Inspector-in-Charge Joseph W. Cronin, with assistance from the Genesee County Sheriff’s Office, under the direction of Sheriff William A. Sheron, Jr., and the Town of Tonawanda Police Department, under the direction of Chief James P. Stauffiger.
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Bronx Man Convicted of Conspiring to Distribute More Than One Kilogram of Heroin in SpringfieldRead the Press Release
BOSTON – A Bronx man was convicted by a federal jury today in connection with his role in a large-scale drug conspiracy that trafficked dozens of kilos of heroin and fentanyl into Springfield from Bronx, N.Y., and the Dominican Republic.
Richard Rosario, 35, was convicted of one count of conspiring to distribute and possession with intent to distribute more than one kilogram of heroin in violation of the Controlled Substances Act. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for June 29, 2020.
Rosario routinely travelled to a heroin mill at 152 Lebanon Street in Springfield where he and others packaged kilograms of heroin for retail distribution for a drug trafficking organization (DTO) based in Springfield, which was run by Alberto Marte. The Marte DTO had direct contact with heroin supply sources in the Dominican Republic. On a monthly basis, members of the organization transported between eight and 20 kilograms of heroin to the Springfield area. Marte and 11 others have pleaded guilty to crimes resulting from their roles in the organization.
During trial, evidence showed that on Sept. 22, 2016, law enforcement executed a search at the heroin mill and found 1.7 kilograms of heroin, some of which was mixed with fentanyl, that had been packaged or was about to be packaged. There was also evidence that Rosario and others had packaged 1.5 kilograms of heroin in addition to what was discovered when they searched the premises.
The charge of conspiracy to distribute more than one kilogram of heroin provides for a minimum sentence of 10 years in prison, a minimum of five years of supervised release and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Hampden County District Attorney Anthony D. Gulluni; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Springfield Police Commissioner Cheryl Claprood; Chicopee Police Chief William Jebb; Holyoke Police Chief Manny Febo; and West Springfield Police Chief Paul Connor made the announcement today. Assistant U.S. Attorneys Neil L. Desroches, of Lelling’s Springfield Branch Office, and Stephen W. Hassink, of Lelling’s Narcotics and Money Laundering Unit, are prosecuting the case.
Boyle County Man Pleads Guilty to Drug Trafficking and Possession of Firearm by Convicted FelonRead the Press Release
FRANKFORT, Ky. - Richard Simpson, 33, of Danville, Kentucky, pled guilty in federal court on Wednesday, before U.S. District Judge Gregory Van Tatenhove, and admitted that he distributed heroin and was illegally in possession of a firearm as a convicted felon.
Simpson admitted that on August 19, 2018, he was found in his vehicle at a motel parking lot and arrested by law enforcement officers based on a warrant for a parole violation. Upon Simpson’s arrest, officers found him in possession of 3.5 grams of heroin and $5,150 in cash, along with a .45 caliber pistol. Simpson further admitted that inside his motel room he had additional heroin, methamphetamine, and another firearm. During a search of the room, officers located 13.066 grams of heroin, 19 grams of methamphetamine, and a .22 caliber pistol. Simpson admitted to possessing the heroin and methamphetamine with intent to distribute, and to unlawfully possessing firearms.
Simpson was indicted in October 2019.
Simpson was previously convicted of five felony offenses: Possession of a Controlled Substance First Degree, in 2018; Trafficking in a Controlled Substance First Degree (two counts), in 2013; Burglary Third Degree and Criminal Mischief, in 2006; and Possession of a Controlled Substance First Degree, in 2006.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Tommy Estevan, Special Agent in Charge for ATF; and Sheriff Derek Robbins, Boyle County Sherriff’s Department, jointly announced the guilty plea.
The investigation was conducted by the ATF and Boyle County Sheriff’s Department. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Francisco Villalobos II.
Simpson is scheduled to be sentenced on June 9, 2020. He faces up to 40 years in prison and a maximum fine of $2.25 million. However, any sentence will be imposed by the Court after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Robert Duncan Jr., coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Boston Man Pleads Guilty to Life Insurance Fraud SchemeRead the Press Release
BOSTON – A Boston man pleaded guilty today in federal court in Boston to a scheme to defraud numerous life insurance companies.
Kellerman Jason Zheng, 33, pleaded guilty to mail and wire fraud. U.S. District Judge Nathaniel M. Gorton scheduled sentencing for June 18, 2020. Zheng was arrested and charged by criminal complaint in December 2019.
Between December 2016 and March 2018, Zheng took out at least 24 life insurance policies in his brother’s name. These policies, which carried total coverage limits in excess of $11.5 million, listed Zheng and his parents as the beneficiaries. Zheng’s brother however, had died months earlier, during a visit to China in April 2015. As part of the scheme, Zheng also took steps to make it appear as though his brother were still alive such as opening and using bank accounts in his brother’s name and renewing his brother’s Massachusetts Driver’s License.
Later, Zheng also obtained a false Chinese death certificate for his brother indicating that his brother had died in August 2018, and used it to submit over $5 million in life insurance claims. Zheng admitted that his brother died prior to the inception of the insurance policies during meetings with an undercover agent who was posing as a claims manager willing to assist in the fraud scheme.
The charges of mail and wire fraud each carry a sentence of up to 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss from the offense. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service; and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office made the announcement today. Assistant U.S. Attorney Jordi de Llano, Deputy Chief of Lelling’s Securities and Financial Fraud Unit, is prosecuting the case.
Bennington Man Sentenced for Failing to Pay Withholding TaxesRead the Press Release
United States Attorney Joe Kelly announced that David E. Doll, 60, of Bennington, Nebraska, was sentenced today in Lincoln, Nebraska, by Senior United States District Judge Richard G. Kopf for failure to pay over withholding taxes. Doll was sentenced to 5 years’ probation and was ordered to pay $279,609.77 in restitution.
During 2012 and 2013, David E. Doll operated and owned Double D Excavating (DDE) and Load Rite Excavating (LRE), which operated in Omaha and Bennington, Nebraska. Doll was responsible for authorizing business expenses, authorizing payment of employee paychecks, signing of employee paychecks, approval of payments made by the corporation, and approval of payment of “payroll taxes” to the Internal Revenue Service.
During 2012 and 2013, Doll’s businesses withheld federal income taxes, and Medicare and Social Security taxes, commonly referred to as “payroll taxes,” from his employees’ paychecks. Doll was then required to make deposits of those “payroll taxes” to the IRS on a periodic basis. Doll was also required to file a Form 941, “Employer’s Quarterly Federal Income Tax Return” for those businesses at the end of each calendar quarter. When filed correctly, the Form 941 sets forth the total amount of wages and other compensation subject to withholding, the total amount of income taxes withheld, the total amount of “payroll taxes” due, and the total tax deposits. Doll did not make those filings with the IRS and also did not pay those withheld “payroll taxes” to the IRS on behalf of his employees.
“Employers have a responsibility to their employees to withhold the proper amount of taxes and pay those taxes over to the IRS,” said IRS Criminal Investigation Special Agent in Charge Karl Stiften. “When employers fail to do so, it affects revenue to the United States government, but more importantly, it could affect their employees’ Medicare and Social Security benefits.”
This case was investigated by the Internal Revenue Service.
Beaver Falls Man Pleads Guilty in Project Safe Neighborhoods CaseRead the Press Release
PITTSBURGH, PA – A resident of Beaver Falls, Pennsylvania, has pleaded guilty in federal court in Pittsburgh on charges of violating federal firearms and narcotics laws, United States Attorney Scott W. Brady announced today.
Eliezer Rodriguez, age 41, pleaded guilty to two counts before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Rodriguez was in possession of firearms in furtherance of a drug trafficking offense and possessed with intent to distribute a quantity of a mixture of heroin and fentanyl, all on or about October 3, 2018.
Judge Cercone scheduled the sentencing for June 17, 2020. The law provides for a maximum total sentence of not less than five years and up to life in prison, a fine of not more than $1,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Yvonne M. Saadi is prosecuting this case on behalf of the government.
The Beaver Falls Police Department and the Pennsylvania Office of Attorney General conducted the investigation leading to the Indictment in this case. This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Beaufort County Man Sentenced to Eight Years Imprisonment on Gun ChargesRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that in federal court, Chief United States District Judge Terrence W. Boyle sentenced DAVON DONNELL REID, 38, of Chocowinity to 96 months imprisonment, followed by 3 years of supervised release.
REID was named in a Criminal Information filed on November 27, 2018 charging him with possession of firearms by a felon. On November 28, 2018, REID pled guilty to that charge.
According to the investigation, between January and June of 2018, REID possessed 24 firearms after organizing straw purchases of the firearms in and around Greenville, North Carolina. On July 26, 2018, REID was arrested in Washington, North Carolina after law enforcement executed a search warrant for the residence where REID was staying. In the front bedroom, law enforcement found a 12-gauge shotgun and a .223 caliber rifle. REID was prohibited from possessing firearms due to a prior federal felony conviction for conspiring to distribute 224 grams of cocaine base (crack).
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 Onslow County Sheriff’s Office, Pitt County Sheriff’s Office, Washington Police Department, Greenville Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation in this matter. Assistant United States Attorney Aakash Singh represented the government.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Baltimore Business Owner Sentenced to 15 Years in Federal Prison for Conspiring to Burn Down His Business in Order to Obtain Insurance ProceedsRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander today sentenced Demetrios Stavrakis, a/k/a Jimmy, age 54, of Lutherville-Timonium, Maryland, to 15 years in federal prison, followed by three years of supervised release, for an arson conspiracy to damage his business by setting it on fire in order to obtain insurance proceeds. Judge Hollander also ordered that Stavrakis forfeit $15,081,435. The federal jury returned the guilty verdict late on October 28, 2019.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Maryland State Fire Marshal Brian Geraci; and Commissioner Michael Harrison of the Baltimore Police Department.
U.S. Attorney Robert K. Hur stated, “The evidence proved that ‘Jimmy’ Stavrakis conspired to burn down his business in order to defraud his insurance company of millions of dollars in insurance proceeds. Now he will serve 15 years in federal prison, where there is no parole—ever. Criminals who commit arson to obtain insurance proceeds jeopardize their community and first responders, and must be held accountable.”
According to evidence presented at his 7-week trial, beginning in July 2015, Stavrakis made a plan to set fire to commercial property he owned at 234 S. Haven Street in Baltimore, in order to collect insurance proceeds on the property. The building housed Adcor Industries, Inc., a manufacturing shop owned by Stavrakis since 1991, as well as Adcor Beverage, LLC and other LLC’s owned and created by Stavrakis.
Testimony at trial revealed that by 2010, Adcor’s business experienced a downturn due to the loss of a contract with Colt Industries. From 2011 to 2015, Stavrakis’s businesses defaulted on various loans, struggled to pay suppliers resulting in legal action, and sold off profitable divisions of the business to satisfy defaulted loans. In 2014, Adcor incurred an operating loss of $2,053,427 and its liabilities exceeded its assets by almost $900,000. Financial records showed that during 2014, Stavrakis liquidated personal assets and injected the proceeds into Adcor to utilize as working capital. A public accounting firm hired by Adcor to review its financial condition reported to Stavrakis that the balance of cash and cash equivalents as of December 31, 2014 was inadequate to fund operations through December 31, 2015. More losses followed, and Adcor was again in default on a line of credit and their monthly operating losses put them on pace to lose approximately $2.9 million for the year.
The evidence proved that on July 28, 2015, just before 6 p.m., Stavrakis used adhesive tape to defeat one of the security features on the front door of the building so that the person or persons setting the fire could enter the building.
According to the trial evidence, at 12:25 a.m. on July 29, 2015, someone disarmed the alarm inside the building by entering the four-digit code. At 12:33 a.m., an alarm in another part of the building was disarmed. At approximately 1:30 a.m., the fire was reported to law enforcement by a passerby who saw smoke emanating from the building. The Baltimore Fire Department responded to extinguish the blaze. The fire destroyed an office on the shop floor of the building and damaged a portion of the ceiling directly above the office area. Later on July 29, 2015, Stavrakis contacted a public adjuster firm that his company had previously retained to notify them of the fire and to request their assistance in filing claims with the insurance company.
Trial evidence proved that from July 29, 2015 through August 5, 2016, the adjusters, acting on behalf of Stavrakis and his companies, submitted insurance claims totaling more than $21 million. The insurance company paid a total of approximately $15,081,435. Of that amount, approximately $7.5 million was used to purchase new machinery, purchase parts inventory, restore the building, and for other business expenses. In addition, insurance proceeds were transferred or used for other expenses, including $600,000 which was transferred to an account in the name of Stavrakis’s wife, after which additional monthly payments of approximately $6,000 followed; approximately $98,499.20 used to purchase a 2016 Mercedes-Benz GL 550, titled and registered to Stavrakis; approximately $52,890.55 used to purchase a BMW titled and registered in the name of Stavrakis’s wife; approximately $25,500 used to purchase a 2016 Harley-Davidson Street Glide motorcycle; and approximately $35,087 in watches and jewelry.
United States Attorney Robert K. Hur commended the ATF, the Office of the Maryland State Fire Marshal, and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Judson T. Mihok and Paul E. Budlow, who prosecuted the case.
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Attorney General William P. Barr Makes Announcement on Sanctuary Cities at the National Sheriffs' Association ConferenceRead the Press Release
BIRMINGHAM, ALA. – Attorney General William P. Barr has announced further actions the Department of Justice will take to protect the American people by ensuring the proper and lawful functioning of our nation’s federal immigration system. Attorney General William Barr said, “Let us state the reality up front and as clearly as possible: When we are talking about sanctuary cities, we are talking about policies that are designed to allow criminal aliens to escape. These policies are not about people who come to our country illegally but have otherwise been peaceful and productive members of society. Their express purpose is to shelter aliens whom local law enforcement has already arrested for other crimes. This is neither lawful nor sensible.”
Read the Attorney General’s full remarks at this link: https://www.justice.gov/opa/speech/attorney-general-william-p-barr-delivers-remarks-national-sheriffs-association-winter
“Our federal, state, and local law enforcement within the Northern District of Alabama are steadfast in their commitment to enforce all the laws of our state and federal justice systems,” Town said. “This commitment is due to the support and coordination local law enforcement has with their federal partners. Through the Prosecutor-to-Prosecutor Program my office has prioritized improving the quality and reliability of the assistance that we provide to our local law enforcement partners. Our continued partnership has developed mutual respect and support by federal and local law enforcement for the mission and work of their counterparts. One of the many benefits of this common purpose and allegiance between federal, state, and local law enforcement has been a shared adherence to respect all federal immigration laws and keeping our communities safe.”
Examples of illegal aliens prosecuted in this office:
Felipe Martinez-Arrellanes, a citizen of Mexico, was removed from the United States to Mexico in June 2013 following a felony conviction. In January 2018, Martinez-Arrellanes was arrested under the name “Felipe Martinez” by the Tuscaloosa Police Department and charged with Soliciting Prostitution. Martinez-Arrellanes was taken into ICE custody. Martinez-Arrellanes pled guilty to Illegal Re-entry After Deportation or Removal in April 2018.
Mike Sierra, a citizen of Mexico, was removed from the United States to Mexico in February 2016 and July 2014. Before, during and after those removals, Sierra, often using an alias, was convicted two times for Driving Under the Influence and two times for Illegal Entry into the United States. Following his most recent conviction in January 2018, for Driving Under the Influence in Northport, Ala., the defendant was taken into ICE custody. Sierra pled guilty to Illegal Re-Entry Deportation or Removal in March 2018.
Jose Hernandez Hernandez, a citizen and national of Mexico, illegally possessed a Rossi 38 caliber pistol in June 2018, in Madison County. Hernandez pled guilty to Possession of a Firearm by an Illegal Alien in October 2018.
Armed Methamphetamine Dealer Sentenced to Five YearsRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Jermaine Stamps, 33, of Madison, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to five years in federal prison, followed by four years of supervised release, for possessing more than 50 grams of methamphetamine with intent to distribute. Stamps pleaded guilty to this charge on October 30, 2019.
In June and July 2019, Stamps distributed methamphetamine to an undercover officer on five occasions. On July 18, 2019, the Dane County Narcotics Task Force executed a search warrant at his apartment. They recovered 64 grams of methamphetamine, a loaded Glock 9mm pistol and $1,079. Stamps admitted he had been distributing narcotics for five years, and that he had recently begun selling methamphetamine too.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach involves collaboration by federal, state and local law enforcement agencies and prosecutors and communities to address gun crime, especially felons illegally possessing firearms and ammunition, and violent crimes and drug crimes that involve the use of firearms.
The charge against Stamps was the result of an investigation conducted by the Dane County Narcotics Task Force. The prosecution of the case has been handled by Assistant U.S. Attorney Rita M. Rumbelow.
Armed Drug Dealer Sentenced in Federal CourtRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Anthony Ahn Le, 21, of Daphne, Alabama, was sentenced today to 121 months on three federal charges relating to drugs and guns. In July of 2019, Le entered a guilty plea to one count of conspiracy to possess with intent to distribute marijuana, and two counts of using, carrying or possessing a firearm during or in relation to a drug trafficking felony.
United States District Court Judge Jeffery U. Beaverstock imposed the 121 month sentence on February 10, 2020. Specifically, Le was sentenced to 60 months on each of the gun counts, which are required by statute to be served consecutively to all other sentences. Le was sentenced to one month on the drug count, which will also be consecutive. Judge Beaverstock ordered that Le will serve a term of five years under supervised release when he is discharged from prison. The judge also ordered that Le will pay special assessments of $300.
The case was investigated by the Foley Police Department, the Daphne Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Armed Drug Dealer Sentenced in Federal CourtRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Eugene Sanchez Crayton, 27, of Mobile, was sentenced this morning in federal court for his involvement in the distribution of controlled substances while carrying a firearm. In October of 2019, Crayton entered a guilty plea to the charges of possession with intent to distribute “spice,” a controlled substance analogue, carrying a firearm in relation to a drug trafficking felony, and being a felon in possession of a firearm.
United States District Court Judge Callie V. S. Granade imposed a sentence of 105 months imprisonment, consisting of 45 months on the drug and felon in possession counts, and 60 months consecutive on the other gun count. The judge ordered that Crayton would serve a period of five years under supervised release when he is discharged from prison. During that term, he will undergo drug testing and treatment. The judge ordered that Crayton will pay a special assessment of $300.
The case was investigated by the Mobile Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Alton man sentenced for attempting to entice minor via social mediaRead the Press Release
McALLEN, Texas - A 23-year-old man has been ordered to federal prison following his conviction for attempted coercion and enticement of a minor, announced U.S. Attorney Ryan K. Patrick.
Dan Eliud Moncada-Gonzalez pleaded guilty Nov. 25, 2019.
Today, U.S. District Judge Micaela Alvarez sentenced Moncada-Gonzalez to 120 months in federal prison. In handing down the sentence, the court noted his behavior was not a lapse in judgment as the defense attempted to portray, adding that Moncada-Gonzalez was provided multiple opportunities to stop his conduct. He was further ordered to serve five years on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. Moncada-Gonzalez will also be ordered to register as a sex offender.
In June 2019, Moncada-Gonzalez enticed an individual he believed to be a 13-year-old female on a social media application. During his conversations, he sent multiple unsolicited sexually-explicit images of himself and others and described sexual acts he desired to perform with the minor.
Moncada-Gonzalez then requested to meet in person at an agreed upon location. There, he expected to engage in sexual activity with the minor. Law enforcement took him into custody upon his arrival.
At the time of his arrest, Moncada-Gonzalez had condoms, lubricant, oral gel and marijuana with him.
Immigration and Customs Enforcement’s Homeland Security Investigations Rio Grande Valley Child Exploitation Investigations Task Force conducted the investigation.
Assistant U.S. Attorneys Michael Mitchell and Claire Nguyen prosecuted the case. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
11 February 2020
Young Fentanyl Trafficker Pleads Guilty to Possessing Large Quantities of Drugs and Multiple FirearmsRead the Press Release
PITTSBURGH – A former resident of McKees Rocks, Pennsylvania pleaded guilty in federal court to federal narcotics and firearms charges, United States Attorney Scott W. Brady announced today.
Dushawn Griffey, age 21, pleaded guilty before Chief United States District Court Judge Mark R. Hornak to one count of conspiracy to possess with the intent to distribute and distribute 40 grams or more of fentanyl and one count of possession of a firearm in connection with a drug trafficking crime.
In connection with the guilty plea, the court was advised in March of 2017, Griffey, then 18, was a fentanyl dealer living and operating out of a house in McKees Rocks, PA. On March 28, 2017, City of Pittsburgh Bureau of Police Detectives stopped Griffey after he left his house in McKees Rocks and recovered a bag of fentanyl and a loaded firearm from him. Subsequent to this stop, members of the FBI Western District of Pennsylvania Opioid Task Force conducted a search of Griffey’s home. The search of the home recovered a large quantity of suspected fentanyl, drug packaging materials and drug paraphernalia, and multiple firearms.
The law provides for a mandatory minimum total sentence of 10 years in prison up to life, a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. DuShawn Griffey has been detained since his initial appearance in federal court and will remain detained pending sentencing.
Assistant United States Attorneys Timothy M. Lanni and Douglas Maloney are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation – Western District of Pennsylvania Opioid Task Force conducted the investigation leading to the guilty plea in this case. This Task Force is comprised of FBI Special Agents and state and local Task Force Officers, including officers from the Pittsburgh Bureau of Police, Allegheny County Sherriff’s Department, Allegheny County Police, Port Authority Police, Munhall Police Department, Stowe-Rox Police Department, and Pennsylvania Attorney General’s Office.
Willow Grove Man Sentenced to 27+ Years in Prison for Sexually Exploiting and Abusing Children While Living in His Mother’s HomeRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Anthony Rocco Major, 47, of Willow Grove, PA was sentenced to 325 months’ imprisonment and 20 years’ supervised release by United States District Court Judge Joel Slomsky for multiple child exploitation offenses.
In July 2019, the defendant pleaded guilty to multiple counts of manufacturing child pornography. The charges arise from Major’s abuse of a girl under the age of 10. While the defendant was living in his mother’s home, he lured the victim to his upstairs bedroom with the promise of playing computer games. While upstairs and separated from other adults in the house, the defendant undressed the child and filmed himself sexually assaulting her. The victim suffered in silence for years, only coming forward after her mother caught the defendant in the act of molesting the victim’s younger sister in the home’s pool. Videos of the sexual assaults, along with other images of child pornography, were recovered from the computer in the defendant’s bedroom.
“The defendant is a dangerous predator who targeted very young children for years while living in his mother’s home, right under her nose,” said U.S. Attorney McSwain. “Instead of acting as a trusted, caring adult, Major violated the trust of these children, their mother and his own family in the most heinous way – and recorded his depravity for posterity. Today’s significant sentence will keep him safely behind bars and unable to commit similar crimes. Holding child sexual offenders accountable will continue to be a top priority of my Office and the entire Department of Justice.”
“Anthony Rocco Major will spend the rest of his life behind bars where he can no longer harm children,” said William S. Walker, Acting Special Agent in Charge of HSI Philadelphia. “The defendant violated his young victim twice. First, via sexual assault, and second by creating images of that depraved and horrific crime. Today’s sentence is well deserved. In partnering with our federal, state, local law enforcement allies, Homeland Security Investigations will remain steadfast in our efforts to rid our communities of child predators.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the Department of Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Veronica J. Finkelstein.
Waterbury Man Involved in New Haven Drug Ring Sentenced to 5 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that HAKEEM BASIR, 56, of Waterbury, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 60 months of imprisonment, followed by four years of supervised release, for trafficking heroin.
This matter stems from a joint investigation headed by the DEA New Haven Task Force, FBI and New Haven Police Department into a New Haven-based drug trafficking organization that acquired and distributed heroin and cocaine. The investigation revealed that Basir distributed heroin at locations in Waterbury and Hartford.
During the investigation, law enforcement officers seized more than 500 grams of heroin, more than 300 grams of fentanyl, more than one kilogram of cocaine, three firearms, over $90,000 in cash, vehicles, jewelry and precious metals.
On April 19, 2018, a grand jury in New Haven returned an indictment charging Basir and 18 other individuals with narcotics trafficking offenses. Basir and several other members of the conspiracy were arrested on April 25, 2018.
Basir has been detained since his arrest. On August 9, 2019, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin.
The DEA New Haven Task Force includes participants from the U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia, Meriden, Derby, Middletown, Naugatuck and Waterbury Police Departments. The Connecticut Department of Correction, Milford Police Department and East Haven Police Department have assisted the investigation.
The case is being prosecuted by Assistant U.S. Attorney H. Gordon Hall.
Walpole Man Sentenced for Filing a False Tax ReturnRead the Press Release
BOSTON – A Walpole man was sentenced today in federal court in Boston in connection with failing to report income from his landscaping business to the Internal Revenue Service (IRS).
Stephen L. Petrucci, 57, was sentenced by U.S. Senior District Court Judge George A. O’Toole Jr. to one year and a day in prison, one year of supervised release, a fine of $10,000 and restitution to the IRS in the amount of $633,327. In November 2019, Petrucci pleaded guilty to one count of filing a false tax return.
Petrucci owed more than $630,000 in income taxes to the IRS after he failed to report approximately $1.8 million in income from his landscaping business on his federal tax returns for tax years 2012 through 2017. To conceal his scheme, Petrucci utilized bank accounts at three different banks or directly cashed customer checks without first depositing them. He also maintained two sets of books: one to track business receipts deposited into his corporate account and one to track gross business receipts. He further withheld information concerning his gross business receipts from his tax preparers.
United States Attorney Andrew E. Lelling and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement. Assistant U.S. Attorney Kristen A. Kearney of Lelling’s Securities and Financial Fraud Unit prosecuted the case.
Wagner Man Charged with Threatening CommunicationsRead the Press Release
United States Attorney Ron Parsons announced that a Wagner, South Dakota, man has been indicted by a federal grand jury for Threatening Communications.
Kyle Gullikson, age 29, was indicted on December 3, 2019. He appeared before U.S. Magistrate Judge Veronica L. Duffy on February 7, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about November 5, 2019, Gullikson knowingly and willfully transmitted threatening messages on Facebook.
The charge is merely an accusation and Gullikson is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Gullikson was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Ute Mountain Ute Man Found Guilty of Violent Sexual and Physical Assault of Wife Following Week-Long Jury TrialRead the Press Release
DURANGO – United States Attorney Jason R. Dunn announced that David Sidney Wells, age 43, of Towaoc, Colorado, was found guilty last week of federal sexual and physical assault charges following a week-long jury trial. Wells appeared at trial in custody and was remanded to the custody of the U.S. Marshals Service at the trial’s conclusion. The FBI and the Bureau of Indian Affairs (BIA) joined in today’s announcement.
Wells was indicted by a federal grand jury on four counts – Aggravated Sexual Abuse, Assault with the Intent to Commit Aggravated Sexual Abuse, Assault Resulting in Serious Bodily Injury and Assault with a Dangerous Weapon. According to court documents, as well as facts presented during trial, on March 9. 2019, Wells assaulted his wife of ten years in their residence on the Ute Mountain Ute Indian Reservation, in Towaoc, Colorado. Wells repeatedly struck his wife in the head with a wooden club, kicked her in the stomach to induce a miscarriage, and punched her in the face. Wells then sexually assaulted her before strangling her to unconsciousness. The victim’s injuries were so severe that she was medically evacuated by airplane to a Lakewood, Colorado hospital.
Following the assault, Wells fled the scene. At the time of the assault, Wells had a warrant for his arrest from a case brought by the State of Colorado for Assault in the Second Degree by Strangulation, as an act of domestic violence, related to an assault against his wife from August of 2018. Additionally, Wells had a prior history of domestic violence convictions in tribal court.
The defendant was indicted on April 5, 2019. He was founded guilty on February 7, 2020, following a jury trial before U.S. District Court Judge Blackburn. Wells is scheduled to be sentenced by Judge Blackburn on June 7, 2020 in Durango, Colorado. Wells faces up to life in prison.
“Sexual assault on the Ute Mountain Ute Reservation will always be vigorously prosecuted by this office,” said U.S. Attorney Jason Dunn. “Wells was responsible for a brutal and violent assault against this victim. He is now facing a significant prison sentence.”
This case was investigated by the Federal Bureau of Investigations (FBI) and the Bureau of Indian Affairs (BIA). The defendant was prosecuted by Assistant U.S. Attorneys Jeff Graves and R. Josh Player.
United States Attorney’s Office Reaches Settlement with Lackawanna County over Polling Place Access for VotersRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced a settlement with Lackawanna County under Title II of the Americans with Disabilities Act to improve physical accessibility at the county’s polling places for individuals who use wheel chairs and other mobility aids, and for individuals who are blind or have vision impairments.
According to United States Attorney David J. Freed, during the May 16, 2017 primary election, the United States Attorney’s Office, along with an architect from the Department of Justice, surveyed a portion of the county’s polling place locations. The survey resulted in a finding that many of the county’s polling places contain barriers to access for persons with disabilities. Title II of the ADA prohibits discrimination on the basis of disability by a state or local government in any of its programs or services, including its voting program.
Lackawanna County is working collaboratively with the United States Attorney’s Office to make all polling places accessible. Under the terms of the agreement, the county will use an evaluation form for each current and prospective polling place based on ADA architectural standards. The settlement requires the county to either relocate inaccessible polling places to new, accessible facilities, or to use temporary measures such as portable ramps, signs, traffic cones and doorbells, where appropriate to ensure accessibility on Election Day.
“I commend Lackawanna County for agreeing to achieve our shared goal of making polling places accessible to all eligible voters with a disability,” said U.S. Attorney Freed. “Individuals with disabilities have a fundamental right to participate in our democracy and barriers to access polling places must not diminish or restrict that right.”
This investigation was handled by Assistant United States Attorney Michael J. Butler, the civil rights coordinator for the Middle District of Pennsylvania, with the assistance of the United States Department of Justice, Civil Rights Division (Disability Rights Section). Those interested in finding out more about the ADA can access the ADA website at www.ada.gov.
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United States Attorney's Office District of Arizona January 2020 Immigration and Border ReportRead the Press Release
I. Illegal Reentry After Deportation (8 U.S.C. 1326)
1,074 individuals were charged in January with illegal reentry
A. 336 of those 1,074 individuals had been convicted of non-immigration criminal offenses in the
U.S.
Of the 336 individuals with non-immigration criminal records,
1. 67 had violent crime convictions, including
2 individuals had homicide convictions
8 individuals had sex offense convictions
31 individuals had domestic violence convictions
2. 53 had property crime convictions
3. 107 had DUI convictions
4. 119 had drug crime convictions
B. 252 of those 1,074 individuals had been deported three or more times
II. Alien Smuggling (8 U.S.C. 1324)
76 individuals were charged in January with alien smuggling
III. Ilegal Entry CCI (formerly Operation Streamline) (8 U.S.C. 1325)
779 individuals were charged in January with illegal entry on the CCI calendar
Criminal conviction information based on preliminary criminal history reports provided by the arresting agency.
These numbers represent United States Attorney's Office prosecutions only. These numbers do not include individuals apprehended by immigration enforcement officials and subjected solely to administrative process.
United States Attorney Announces Money Laundering Charges Against Operators of Multimillion-Dollar Nationwide High-End Prostitution EnterpriseRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Peter C. Fitzhugh, Special Agent in Charge of the Department of Homeland Security’s (“DHS”) Homeland Security Investigations (“HSI”) in New York, and Dermot Shea, the Commissioner of the New York City Police Department (“NYPD”), announced today the arrest of TRACY REYNOLDS, a/k/a “Sara,” and IZHAK COHEN, for money laundering and conspiracy to commit money laundering in connection with their ownership and operation of VIP Escorts, a nationwide multimillion-dollar business offering high end prostitution services, as well as the seizure of bank accounts and 391 websites related to the VIP Escorts business. REYNOLDS was arrested this morning at Tampa International Airport while boarding a flight to Mexico and was presented today in Tampa federal court. COHEN was arrested by Israeli authorities in Hadera, Israel. The United States Attorney’s Office will seek COHEN’s extradition to stand trial in the United States.
According to the allegations in the Complaint sworn out in Manhattan federal court:[1]
From at least 2012 to the present, REYNOLDS and COHEN have operated an online high-end prostitution business through their company and its affiliates known as “VIP Escorts.” VIP Escorts maintains a website, http://wvvw.vipescorts.com (the “VIP Escorts Website”), which it used to promote its prostitution services and was registered to COHEN. VIP Escorts also operates an array of affiliated escort websites, which also advertised its prostitution services, with names such as “Prestige Escorts,” “American Escorts,” “Russian Escorts,” and “Manhattan Exotics,” all of which are registered to COHEN.
As part of their prostitution business, REYNOLDS and COHEN arranged for escorts to meet clients in Manhattan and in numerous other locations for prostitution services, charging them thousands of dollars. REYNOLDS and COHEN required escorts to deposit the proceeds of their commercial sex acts into a large number of bank accounts that they controlled, many of them in the name of fake entities. REYNOLDS and COHEN then laundered the money through thousands of domestic and international financial transactions. In total, over $10 million passed through various personal and business accounts controlled by REYNOLDS during the course of this conspiracy, and over $1 million was sent from REYNOLDS in the United States to COHEN in Israel in thousands of small transactions designed to conceal the nature, location, source, ownership, and control of the proceeds.
REYNOLDS and COHEN then used the proceeds of the prostitution scheme for personal gain and to further their illegal prostitution business. They paid, for example, over $295,000 from bank accounts under their control to advertise the VIP Escorts business on a known advertising platform for the prostitution industry.
* * *
REYNOLDS, 45, of Alamosa, Colorado, and Cohen, 53, of Hadera, Israel, are each charged with one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison, and two counts of money laundering, each of which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of HSI, NYPD, and the El Dorado Task Force, and expressed his sincere gratitude to the Israel National Police and the Israel Ministry of Justice for their support and assistance with the investigation. He also thanked the Office of International Affairs of the U.S. Department of Justice for their assistance in the arrest of COHEN.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Michael R. Herman is in charge of the prosecution.
The charge contained in the Complaint is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
U.S. Attorney Scott W. Murray’s Statement Regarding Sanctuary CitiesRead the Press Release
CONCORD- Yesterday, Attorney General William Barr addressed the dangers that sanctuary cities and sanctuary policies pose to the general public. In jurisdictions that have adopted these policies, local law enforcement officers are restrained from working with their federal law enforcement partners. The result is that federal law enforcement officers are hampered in their efforts to locate, arrest, and remove people who are in the United States illegally. This may include individuals who are actively engaged in criminal conduct.
Barr’s remarks resonate in New Hampshire, where the opioid crisis has been fueled by foreign drug cartels who exploit our citizens for the sake of making a profit. Their lethal drugs reach our state through a network of traffickers who often employ criminal aliens as dealers to sell drugs in our communities. To shield themselves from arrest, criminal aliens often reside outside of our state, sometimes living in sanctuary cities where they feel safe.
The highest obligation of the government is to protect its citizens, especially from victimization by criminals. This requires coordination on the part of law enforcement at all levels. When local communities adopt sanctuary policies, those policies can jeopardize public safety by preventing the federal government from arresting and prosecuting removable aliens. While reasonable people can debate the merits of various immigration policies, few would contest that those who commit serious criminal offenses while unlawfully inside this country should be prosecuted and then removed from the United States. When a sanctuary jurisdiction refuses to honor an immigration detainer and releases a felon onto the street, all of our citizens are endangered. These policies also endanger the brave law enforcement officers who must try to identify and arrest criminal aliens after they have been released by sanctuary cities.
Here in New Hampshire, we frequently prosecute criminals who are unlawfully in this country, including those who have taken up residency in sanctuary cities in other states. Many of these criminal aliens have distributed fentanyl, heroin and other dangerous drugs, thereby causing great suffering. It is not uncommon to encounter criminal aliens who use fraudulent documents to mask their true identity and immigration status. If these criminals are released before they can be removed from the United States, it can be challenging to locate them again. Enforcing our laws is a complicated and difficult undertaking and sanctuary policies only make it more difficult to protect our citizens.
While New Hampshire has not been in the forefront of the sanctuary movement, it is important to realize that we are negatively impacted by the adoption of these policies in other states. The reality is that criminals can shelter behind sanctuary policies to the detriment of everyone else in society. This is especially true if you are an interstate drug dealer looking for a place to hide while hooking Granite Staters on your deadly product.
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U.S. Attorney Duncan's Statement on Sanctuary JurisdictionsRead the Press Release
Respecting and enforcing the law, including criminal immigration law, is at the core of the Department of Justice’s mission. Unfortunately, some state and local jurisdictions are attempting to impede or frustrate the Federal Government’s efforts, by enacting “sanctuary policies.” The terms “sanctuary city” and “sanctuary jurisdiction” are not proper legal terms and actually have no consensus definitions. Generally, a jurisdiction is considered to have “sanctuary policies” when the jurisdiction prevents or limits state and local law enforcement from working with their federal partners in some way. While these policies vary widely in substance and scope, at a minimum, most limit the sharing of certain information between state and local police and federal law enforcement authorities.
In truth, these “sanctuary” jurisdiction policies are the opposite of what their name suggests. When implemented, they jeopardize public safety by preventing the federal government from locating, arresting, and prosecuting removable aliens inside the United States, including those who have committed criminal offenses.
To be clear, state and local governments are not compelled by federal law to participate in federal immigration enforcement activities. That said, they are not permitted to actively obstruct federal efforts either.
In the Eastern District of Kentucky, we do not have any recognized sanctuary jurisdictions, and only have a very small number of local entities that are uncooperative with federal law enforcement. Overall, we are fortunate to share extremely strong working relationships with state and local government agencies and our law enforcement partners. However, the threat to public safety is not limited to jurisdictions with these harmful sanctuary policies.
One common way these sanctuary jurisdictions intentionally frustrate federal law is by failing to honor an immigration detainer – a formal request issued by Immigration and Customs Enforcement (ICE) officials asking federal, state, or local law enforcement authorities to simply hold an individual who is already in custody on another violation of criminal law. The detainer is based on probable cause that an alien is illegally in the country. ICE issues detainers to give other law enforcement agencies notice that it intends to take custody of the alien within 48 hours, before he or she is released from criminal custody.
ICE routinely requests detainers so that it can take appropriate action, which might include deportation. A jurisdiction that refuses to honor a detainer simply releases the individual back onto the streets. This forces ICE agents to re-arrest the person – a situation that can create a danger to the agents and others. Moreover, it also causes an unnecessary expenditure of time, manpower, and resources – forcing agents to lawfully re-arrest a person who has just be released from custody. A jurisdiction that ignores detainers and releases criminal aliens undermines the law and ultimately endangers each of us.
Our Office remains committed, along with our partners at the Department of Homeland Security (DHS), ICE, and other agencies, to enforcing and respecting the law. This includes the prosecution of illegal immigration cases.
In Fiscal Years 2018 and 2019, our Office prosecuted 119 defendants for felony violations of criminal immigration laws, including cases involving defendants who had been previously deported for aggravated felony offenses. During the same timeframe, we prosecuted 17 defendants charged with being illegal aliens in possession of a firearm.
Our enforcement efforts also include prosecuting individuals, who are illegally in the United States, with other criminal offenses, such as drug trafficking. One such example is the prosecution of Fernando Lara Salas, a cooperative effort led by investigators from the Drug Enforcement Administration (DEA), DHS, ICE, and the Lexington Police Department.
Lara Salas was convicted of multiple offenses, at trial in January 2018, including drug trafficking, firearms, and immigration offenses. His drug trafficking convictions included conspiracy to distribute more than five kilograms of cocaine, possession with intent to distribute more than five kilograms of cocaine, and possession with intent to distribute fentanyl, methamphetamine, and tramadol. Lara Salas’ firearms convictions included possession of a firearm in furtherance of a drug-trafficking crime, possession of a firearm as a convicted felon, and possession of a firearm by an alien. Lara Salas was also convicted of unlawfully re-entering the United States after previously being deported for a felony drug offense.
The joint investigation by federal and state law enforcement into the drug trafficking activities of Lara Salas began in August 2016, and culminated with the execution of search warrants at Lara Salas’ residence in Lexington and a cargo trailer located in a remote location in Franklin County. The search of Lara Salas’ home resulted in the seizure of 6 kilograms of cocaine, more than 50 grams of methamphetamine, a 9 mm firearm, and $110,000 in U.S. currency. Evidence found in the cargo trailer revealed that Lara Salas and others utilized the trailer for the preparation of fentanyl for distribution. Agents located packaging material consistent with kilogram quantities of controlled substances, and the packaging contained a residual amount of fentanyl – a particularly deadly Schedule II opioid. Also located in the trailer were five kilograms of tramadol, a Schedule IV controlled substance that is commonly used by drug traffickers as a cutting agent for fentanyl and heroin, and boxes of latex gloves.
Lara Salas had previously been convicted of felony possession of cocaine, in 2014, and deported to Mexico. He illegally reentered the country after his deportation and resumed his drug trafficking activities. For his most recent conviction, Lara Salas was sentenced to nearly 30 years in federal prison.
Lara Salas’ prosecution demonstrates the importance of strong partnerships across local, state, and federal law enforcement. It is imperative that we continue working together to enforce the law.
Respecting and enforcing the law, including criminal immigration law, is at the core of the Department of Justice’s mission. Unfortunately, some state and local jurisdictions are attempting to impede or frustrate the Federal Government’s efforts, by enacting “sanctuary policies.” The terms “sanctuary city” and “sanctuary jurisdiction” are not proper legal terms and actually have no consensus definitions. Generally, a jurisdiction is considered to have “sanctuary policies” when the jurisdiction prevents or limits state and local law enforcement from working with their federal partners in some way. While these policies vary widely in substance and scope, at a minimum, most limit the sharing of certain information between state and local police and federal law enforcement authorities.
In truth, these “sanctuary” jurisdiction policies are the opposite of what their name suggests. When implemented, they jeopardize public safety by preventing the federal government from locating, arresting, and prosecuting removable aliens inside the United States, including those who have committed criminal offenses.
To be clear, state and local governments are not compelled by federal law to participate in federal immigration enforcement activities. That said, they are not permitted to actively obstruct federal efforts either.
In the Eastern District of Kentucky, we do not have any recognized sanctuary jurisdictions, and only have a very small number of local entities that are uncooperative with federal law enforcement. Overall, we are fortunate to share extremely strong working relationships with state and local government agencies and our law enforcement partners. However, the threat to public safety is not limited to jurisdictions with these harmful sanctuary policies.
One common way these sanctuary jurisdictions intentionally frustrate federal law is by failing to honor an immigration detainer – a formal request issued by Immigration and Customs Enforcement (ICE) officials asking federal, state, or local law enforcement authorities to simply hold an individual who is already in custody on another violation of criminal law. The detainer is based on probable cause that an alien is illegally in the country. ICE issues detainers to give other law enforcement agencies notice that it intends to take custody of the alien within 48 hours, before he or she is released from criminal custody.
ICE routinely requests detainers so that it can take appropriate action, which might include deportation. A jurisdiction that refuses to honor a detainer simply releases the individual back onto the streets. This forces ICE agents to re-arrest the person – a situation that can create a danger to the agents and others. Moreover, it also causes an unnecessary expenditure of time, manpower, and resources – forcing agents to lawfully re-arrest a person who has just be released from custody. A jurisdiction that ignores detainers and releases criminal aliens undermines the law and ultimately endangers each of us.
Our Office remains committed, along with our partners at the Department of Homeland Security (DHS), ICE, and other agencies, to enforcing and respecting the law. This includes the prosecution of illegal immigration cases.
In Fiscal Years 2018 and 2019, our Office prosecuted 119 defendants for felony violations of criminal immigration laws, including cases involving defendants who had been previously deported for aggravated felony offenses. During the same timeframe, we prosecuted 17 defendants charged with being illegal aliens in possession of a firearm.
Our enforcement efforts also include prosecuting individuals, who are illegally in the United States, with other criminal offenses, such as drug trafficking. One such example is the prosecution of Fernando Lara Salas, a cooperative effort led by investigators from the Drug Enforcement Administration (DEA), DHS, ICE, and the Lexington Police Department.
Lara Salas was convicted of multiple offenses, at trial in January 2018, including drug trafficking, firearms, and immigration offenses. His drug trafficking convictions included conspiracy to distribute more than five kilograms of cocaine, possession with intent to distribute more than five kilograms of cocaine, and possession with intent to distribute fentanyl, methamphetamine, and tramadol. Lara Salas’ firearms convictions included possession of a firearm in furtherance of a drug-trafficking crime, possession of a firearm as a convicted felon, and possession of a firearm by an alien. Lara Salas was also convicted of unlawfully re-entering the United States after previously being deported for a felony drug offense.
The joint investigation by federal and state law enforcement into the drug trafficking activities of Lara Salas began in August 2016, and culminated with the execution of search warrants at Lara Salas’ residence in Lexington and a cargo trailer located in a remote location in Franklin County. The search of Lara Salas’ home resulted in the seizure of 6 kilograms of cocaine, more than 50 grams of methamphetamine, a 9 mm firearm, and $110,000 in U.S. currency. Evidence found in the cargo trailer revealed that Lara Salas and others utilized the trailer for the preparation of fentanyl for distribution. Agents located packaging material consistent with kilogram quantities of controlled substances, and the packaging contained a residual amount of fentanyl – a particularly deadly Schedule II opioid. Also located in the trailer were five kilograms of tramadol, a Schedule IV controlled substance that is commonly used by drug traffickers as a cutting agent for fentanyl and heroin, and boxes of latex gloves.
Lara Salas had previously been convicted of felony possession of cocaine, in 2014, and deported to Mexico. He illegally reentered the country after his deportation and resumed his drug trafficking activities. For his most recent conviction, Lara Salas was sentenced to nearly 30 years in federal prison.
Lara Salas’ prosecution demonstrates the importance of strong partnerships across local, state, and federal law enforcement. It is imperative that we continue working together to enforce the law.
Two Project Safe Childhood Defendants Plead GuiltyRead the Press Release
CHARLESTON, W.Va. – Defendants in two separate Project Safe Childhood cases pled guilty, announced United States Attorney Mike Stuart.
“These are despicable crimes,” said United States Attorney Mike Stuart. “Our partners are working around the clock to track down sexual exploiters of children. We will prosecute each and every one and seek the maximum penalty by law.”
Christopher Charles Hirst, 26, of Hurricane, pled guilty to receipt of child pornography. Hirst admitted that beginning in approximately August 2018 he began a relationship with a 14-year-old girl from Putnam County. During the course of that relationship, Hirst repeatedly asked the minor to send him sexually explicit photographs via the Snapchat app. When the minor ultimately sent the images, Hirst preserved those images without the minor’s knowledge. Hirst also admitted to taking several sexually explicit images of the minor in person, including one depicting them engaged in a sexual act. Hirst faces at least 5 years and up to 20 years in prison when sentenced on May 11, 2020. Following his release from prison, Hirst will be required to register as a sex offender. The Putnam County Sheriff’s Department and Homeland Security Investigations conducted the investigation. United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Jennifer Rada Herrald is handling the prosecution.
Joey Michael King, 39, of Elkview, pled guilty to attempted enticement of a minor that occurred online in February 2019. King admitted that in February 2019, he communicated via a social messaging application with a minor he believed to be a 15-year-old girl located in Bridgeport, West Virginia. In reality, the minor was a Task Force Officer with the West Virginia State Police Internet Crimes Against Children Task Force and he was operating in an undercover capacity. Despite knowing the purported minor’s age, King repeatedly requested who he believed to be a minor to take sexually explicit photographs of her female genitals and to send them to him both via text and email. King provided who he believed to be a minor with his personal cell phone number and his personal email – both of which matched the phone number and email that King provided to the West Virginia Sex Offender Registry in his January 2019 Sex Offender Registration Report. King faces a mandatory minimum sentence of at least ten years imprisonment and up to life in prison when he is sentenced on May 7, 2020. The Federal Bureau of Investigation, in conjunction with the West Virginia State Police Internet Crimes Against Children Task Force, the Bridgeport Police Department, and the Nitro Police Department conducted the investigation. United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney Kristin F. Scott handled the prosecution.
These cases were prosecuted as part of Project Safe Childhood, a nationwide initiative of 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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