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Friday 27 December 2019
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Dec. 23 was:
Shean Moore, 38, of Billings, on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute meth and distribution of meth. If convicted of the most serious crime, Moore faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. Moore was detained pending further proceedings. The case was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force. Pacer case reference. 19-158.
Charles Anthony Sloan, 31, of Hardin, on charges of conspiracy to possess with intent to distribute meth, possession with intent to distribute meth and distribution of meth. If convicted of the most serious crime, Sloan faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least three years of supervised release. Sloan was detained pending further proceedings. The case was investigated by the Drug Enforcement Administration. Pacer case reference. 19-157.
Abran Rodriguez Rascon, 33, of Billings, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Rascon faces a maximum 10 years in prison a $250,000 fine and three years of supervised release. Rascon was detained pending further proceedings. Pacer case reference. 19-149.
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on Dec. 23 was:
Nicole Lee Chappel, 29, of Kalispell, on charges of conspiracy to possess with intent to distribute meth, possession with intent to distribute meth and distribution of meth. If convicted of the most serious crime, Chappel faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. Chappel was detained pending further proceedings. The case was investigated by the Drug Enforcement Administration and the Kalispell Police Department. Pacer case reference. 19-57.
Kevin Kenneth Gaethle, 38, of Lakeside, on charges of conspiracy to possess with intent to distribute meth, possession with intent to distribute meth and distribution of meth. If convicted of the most serious crime, Gaethle faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. Gaethle was detained pending further proceedings. The case was investigated by the Drug Enforcement Administration and the Kalispell Police Department. Pacer case reference. 19-58.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Dec. 23 was:
John Thomas Azure, 49, of Browning, on charges of aggravated sexual abuse and sexual abuse. If convicted of the most serious crime, Azure faces a maximum of life in prison, a $250,000 fine and five years of supervised release. Azure was detained pending further proceedings. The case was investigated by the FBI and the Blackfeet Law Enforcement Services. Pacer case reference. 19-87.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Former Dojo Pizza Owner Sentenced to 65 Years for Federal Child Sex ActsRead the Press Release
St. Louis, MO – Loren “Sensei” Copp, 50, former owner of Dojo Pizza located at 4601 Morganford Road, St. Louis, MO, was sentenced to 65 years in prison for production and attempted production of child pornography; possession of child pornography; and the use of interstate facilities to persuade or coerce a minor to engage in sexual activity. Copp appeared today before U.S. District Court Judge Audrey Fleissig who also ordered restitution in the amount of $294,000.
In December 2018, Copp was convicted of eight counts of child sexual exploitation and enticement involving four victims.
According to testimony presented at trial, for several years defendant Copp groomed and sexually abused two minor females who had been in his custody since 2009. The grooming process began when defendant Copp began touching the victims’ buttocks while playing “the butt game,” which then led to him touching their vaginas and breasts. Eventually, Copp began raping both girls, and he would record the sex acts with a cell phone or video recorder. While at the Dojo Pizza property, Copp would rape each girl multiple times a week, and while there he took pornographic pictures of one victim’s genitals and breasts. Copp would also watch pornography with one of the victims in his office at the Dojo Pizza property.
During trial, there was also evidence of Facebook chats between three minor female victims and a Facebook account utilized by Copp, which purported to be used by a 13 year-old named “Chrissy.” The Facebook account depicted a facial image of a minor female for the profile picture, and this same Facebook profile picture of “Chrissy” was found on Copp’s computer, along with multiple pornographic images of the three victims that were sent to the “Chrissy” Facebook account. Additionally, within the Facebook chats between “Chrissy” and the minor victims, there were multiple references to sexual activity and/or sexually explicit conduct occurring between the victims, as well as one particular victim and Copp. Also, there were coercive and deceptive emails sent from a Yahoo email account directed towards one minor victim, which were between Copp’s Gmail account and the Yahoo account. The majority of the Yahoo emails were sent from the same IP address attached to emails sent/received from Copp’s Gmail account. The subscriber information and backup emails used for the “Chrissy” Facebook account, as well as the Yahoo email account, were linked to Copp.
The Federal Bureau of Investigation, the St. Louis Metropolitan Police Department, the Regional Computer Crime Education and Enforcement Group (RCCEEG) and the U.S. Department of Homeland Security – Immigration and Customs Enforcement (ICE), investigated the case.
California Man Pleads Guilty to Transporting a Minor for ProstitutionRead the Press Release
KANSAS CITY, Mo. – A Murrieta, California, man pleaded guilty in federal court today to transporting a 16-year-old victim across state lines for prostitution.
Michael Barrett Cason, 38, pleaded guilty before U.S. District Judge Beth Phillips to the charge contained in a Dec. 13, 2017, federal indictment.
According to today’s plea agreement, Kansas City, Missouri, police officers received a request to conduct a wellness check for a missing 16-year-old from Texas on Nov. 18, 2017. Officers responded to a local hotel to locate the minor, who had posted her location on social media. While officers were at the hotel, co-defendant Shelbi Katelyn Chaddick, 28, of Texas, arrived, driving Cason’s Mercedes-Benz with the missing 16-year-old victim. Officers accompanied the victim to her hotel room, where they saw items consistent with prostitution. Officers also saw several text messages on the victim’s locked cell phone asking when she would be available.
The child victim told officers she had been transported by Cason and Chaddick from Texas to Missouri to engage in prostitution, and had engaged in prostitution with several individuals while in Kansas City. Investigators located live Backpage and CallsEscort ads that utilized the child victim’s cell phone number.
Chaddick pleaded guilty on July 10, 2019, to making false statements to law enforcement.
Under the terms of today’s plea agreement, Cason is subject to a sentence of 10 years in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Teresa Moore. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Ashland Felon Sentenced to One Year for Possessing FirearmRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Jeremy Strobel, 42, Ashland, Wisconsin, was sentenced on December 20, 2019, by U.S. District Judge James Peterson to one year in prison for possessing a firearm as a felon. Strobel pleaded guilty this charge on September 9, 2019.
On April 20, 2019, Ashland police found Strobel passed out in the driver’s seat of a car with a .38 caliber snub nose revolver next to him. In the vehicle, officers located empty baggies, empty vials, and $700 in cash. Officers also saw a bag of methamphetamine on his thigh which Strobel then appeared to swallow. Messages were found on Strobel’s phone that suggested he was dealing drugs.
Strobel has a lengthy criminal history starting in 1995 when he was 18 years old, has been on supervision more than 20 times, and has been revoked on many occasions due to rule violations and criminal offenses. Approximately three months before being caught with the gun in this case, he was revoked and sentenced to one year in prison but with extensive sentence credit was release soon thereafter.
At sentencing, Judge Peterson said that Henke had one of the longest criminal histories that he has seen and that protecting the public was his primary goal. Strobel is currently serving a six-year state prison sentence. Judge Peterson found that because Strobel was a danger to the community, additional punishment was warranted. Judge Peterson ordered the one-year federal sentence to run consecutive to the state prison term.
The charge against Strobel was the result of an investigation conducted by the Ashland Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Corey Stephan.
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, prosecutors and communities to prevent and deter gun violence.
Thursday 26 December 2019
U.S. Attorney's Office Collects over $3M in Civil and Criminal PenaltiesRead the Press Release
PROVIDENCE – United States Attorney Aaron L. Weisman announced today that the District of Rhode Island collected $3,256,549.78 in criminal and civil actions in Fiscal Year 2019. Of this amount, $1,633,893.21 was collected in criminal actions and $1,622,656.57 was collected in civil actions.
Additionally, the District of Rhode Island worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $20,833,502.89 in cases pursued jointly by these offices. Of this amount, $4,344.30 was collected in criminal actions and $20,879,158.59 was collected in civil actions.
Additionally, the U.S. Attorney’s office in Rhode Island working with partner agencies and divisions, collected $1,234,635.00 in asset forfeiture actions in FY 2019. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
These recoveries reflect the breadth of the District of Rhode Island’s caseload and enforcement efforts in multiple areas. For example, of the District’s total, approximately $535,000 was recovered in a civil penalty action brought against a major national pharmacy chain for its alleged failure to detect invalid prescriptions for controlled substances at its Rhode Island pharmacies; nearly $700,000 was recovered for false claims to the United States resulting from the supply of counterfeit military uniforms to government purchasers; and nearly $300,000 was recovered from a local ambulance company to resolve allegations that it improperly billed the Medicare and Medicaid programs for medically unnecessary ambulance runs.
“These collection figures reflect our Office’s commitment to use all the tools at our disposal to deter illegal conduct and make the government whole when it is victimized by fraud, as well as to recover the financial fruits of crime for the benefit of victims,” remarked U.S. Attorney Weisman in announcing these collection results.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S., and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
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Previously Removed Mexican National Sentenced to Seven Years on Prostitution, Narcotics and Firearms OffensesRead the Press Release
United States Attorney Matthew D. Krueger announced that on December 23, 2019, Jose Facio-Santos, a citizen of Mexico illegally in the United States after having been previously removed, was sentenced to seven years in federal prison for selling cocaine, heroin, and firearms, and transporting women into Milwaukee for purposes of prostitution. Upon completion of his sentence, he will be removed again to Mexico.
The investigation revealed Facio-Santos sold narcotics on multiple occasions between September 2014 and December 2016, including approximately 166 grams of cocaine and 138 grams of heroin. In addition, in 2017, Facio-Santos sold an AK-47 style rifle and a Norinco Model SKS Rifle to an individual Facio-Santos did not know was working at the direction of law enforcement. On October 26, 2018, a search of Facio-Santo’s house recovered a stolen 9 mm firearm along with a magazine containing approximately 11 rounds of ammunition. When his cell phone was searched, law enforcement found photographs of Facio-Santos posing with at least seven different firearms.
During the investigation, law enforcement discovered that Facio-Santos operated a brothel in Milwaukee. By his own admission, Facio-Santos prostituted 250 women during the years he ran the brothel. Every week, a new woman was brought from out-of-state to be prostituted and was required to perform between 10-15 commercial sex acts per day during her week in Milwaukee. At the end of the week, Facio-Santos would take the woman to a predetermined location where she would be transported to another city. Court documents revealed that the women were extremely vulnerable, as many were undocumented and in dire financial situations.
During the sentencing hearing Federal District Judge Lynn Adelman stated, that a “fairly significant sentence” was “necessary” to account for Facio-Santos having sold heroin, cocaine, and two highly dangerous weapons, as well as his managerial role in prostitution, all while in the United States illegally. The Judge further noted that Facio-Santos preyed upon “vulnerable people,” which was very harmful in so many different ways.
“Facio-Santos is a serious criminal who trafficked in dangerous drugs, lethal weapons, and vulnerable women,” said United States Attorney Krueger. “I commend the law enforcement agencies who conducted the investigation and brought Facio-Santos to justice.”
The following agencies participated in the investigation: Homeland Security Investigations, the Drug Enforcement Administration, and the Federal Bureau of Investigation.
The case was prosecuted by Assistant United States Attorneys Karine Moreno-Taxman and Elizabeth Monfils.
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For Additional Information Contact:
Public Information Officer Kenneth Gales 414-297-1700
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Maryland U.S. Attorney’s Office Collects over $77 Million in Civil and Criminal Actions for U.S. Taxpayers in FY 2019Read the Press Release
Baltimore, Maryland – U.S. Attorney Robert K. Hur announced that financial collections in criminal and civil actions in Fiscal Year (FY) 2019 in the District of Maryland reached $77,313,382.58. The U.S. Department of Justice keeps statistics on a fiscal year basis, closing the books each September 30.
“Thanks to the hard work and dedication of employees of the U.S. Attorney’s Office and our partner agencies, funds recovered far exceed the cost of operating the office,” said Maryland U.S. Attorney Robert K. Hur. “We will continue to hold accountable anyone who seeks to profit from illegal activities.”
According to statistics from the Department of Justice, the U.S. Attorney’s Office for the District of Maryland in FY 2019 collected $10,072,186.17 in criminal debts owed to the U.S. government and to federal crime victims, including restitution, criminal fines, and felony assessments.
The statistics show that the $67,241,196.41 collected in civil actions in Maryland include affirmative civil enforcement cases—in which the United States recovered government money lost to fraud or other misconduct or collected penalties imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws—and debts collected on behalf of several federal agencies, including the U.S. Department of Health and Human Services. These cases include the successful resolution of investigations or qui tam actions against Med Star Health, Inc., International Business Machines Corporation, ACell, Inc., Anne Arundel Medical Center, Skyline Urology, P.A., Hyperheal Hyperbarics, Inc., Maryland Treatment Centers, Inc., and two Medicare data-mining investigations against Dr. Wagdi Attia and Cardiac Associates, P.C.
Additionally, the District of Maryland worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $6,992,231 in cases pursued jointly with these offices. Of this amount, $10,473.20 was collected in criminal actions and $6,981,757.80 was collected in civil actions, including cases resolved under the False Claims Act on behalf of victim agencies such as the U.S. Department of Health and Human Services, the U.S. Department of Defense, and the U.S. Department of Education.
The U.S. Attorney’s Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered physical injury or financial loss. While restitution is paid directly to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal healthcare laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the U.S. Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration, and the U.S. Department of Education.
In addition, the U.S. Attorney’s Office for the District of Maryland, working with partner agencies and divisions, collected $6,142,695 in asset forfeiture actions in FY 2019. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
For more information, the Department’s Annual Statistical Reports on prior fiscal years can be found on the Internet at: https://www.justice.gov/usao/resources/annual-statistical-reports.
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Jeffrey Dworek Charged with Defrauding Metro Waste AuthorityRead the Press Release
Dworek alleged to have embezzled over one million dollars
DES MOINES, Iowa – On December 18, 2019, a federal grand jury returned an Indictment charging Jeffrey Dworek, age 54, formerly of Urbandale, with ten counts of Mail Fraud announced United States Attorney Marc Krickbaum. Trial is scheduled for February 3, 2020 before United States District Court Chief Judge John A. Jarvey.
According to the Indictment, from 2012 to 2017, Jeffrey Dworek, while employed as Metro Waste Authority Director of Operations, mailed fraudulent invoices to Metro Waste Authority for payment. The fraudulent invoices were from Britad, a company that Dworek incorporated in 2012, without the knowledge of Metro Waste Authority. As a result, Metro Waste Authority paid Britad over $1 million, to Dworek’s benefit.
The public is reminded that an Indictment is merely an accusation, and the defendant is presumed innocent unless they are proven guilty.
This matter has been investigated by the Federal Bureau of Investigation and the State of Iowa Auditor’s Office. This case is being prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Former Pittsburgh Resident Pleads Guilty to Narcotics TraffickingRead the Press Release
PITTSBURGH, PA - A former resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court last week to charges related to narcotics trafficking in connection with a large-scale investigation conducted by the Greater Pittsburgh Safe Streets Task Force, United States Attorney Scott W. Brady announced today.
John Fedorka, 36, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute heroin and fentanyl, and one count of possession with intent to distribute heroin and fentanyl, before United States District Judge William S. Stickman IV. The defendant acknowledged his responsibility for the distribution of 18 grams of a mixture of heroin and fentanyl. Mr. Fedorka is one of 37 defendants charged in the Indictment.
In connection with the guilty plea, the court was advised that in 2017, the Greater Pittsburgh Safe Streets Task Force initiated an investigation primarily targeting the Darccide/Smash 44, or DS44, neighborhood gang, and its drug-trafficking activity, in and around the South Side area of Pittsburgh. As part of this large-scale narcotics and firearms investigation, in February of 2019, the United States received authorization to conduct a federal wire investigation, which continued through June of 2019.
Fedorka purchased heroin and fentanyl from his co-conspirator, Christopher Highsmith, and served as a middleman in drug transactions. The court was further informed that on January 17, 2019, the Pittsburgh Bureau of Police made a traffic stop on a vehicle in which Fedorka was the front seat passenger. Police recovered three bricks of heroin from Fedorka.
Judge Stickman scheduled sentencing for May 6, 2020, at 10:30 am. The law provides for a total sentence of 30 years in prison, a fine of $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. In addition to the charges to which he pleaded guilty, Fedorka has a prior felony drug conviction, and, as such, is subject to enhanced penalties. The defendant remains in jail pending the sentencing hearing.
Assistant United States Attorney Christy C. Wiegand is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Bureau of Alcohol Tobacco Firearms and Explosives, Allegheny County Adult Probation, Allegheny County Police Department, Allegheny County Sheriff’s Office, Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, and the Wilkinsburg Police Department. Other assisting agencies include the Green Tree Police Department, New York City Police Department, Mount Oliver Police Department, Pennsylvania State Police, Yonkers Police Department, United States Marshals Fugitive Task Force, and the United States Postal Inspection Service.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Federal District Court Orders New York Company to Stop Distributing Adulterated and Misbranded Dietary SupplementsRead the Press Release
The U.S. District Court for the Eastern District of New York permanently enjoined ABH Nature’s Products, Inc., ABH Pharma, Inc., StockNutra.com, Inc. (together, "ABH"), each of Edgewood, New York, and their owner, Mohammed Jahirul Islam ("Islam") of Flushing, New York from distributing adulterated and misbranded dietary supplements in violation of the Federal Food, Drug, and Cosmetic Act, the Department of Justice announced today.
The injunction requires ABH and Islam to destroy, within 15 days, dietary supplements that are in their possession, custody, or control. The injunction also orders ABH and Islam to implement several consumer safety measures before resuming the manufacturing or distributing of dietary supplements. Those measures include hiring an independent expert to inspect ABH’s facility and certify that the facility has corrected all deficiencies and implemented current good manufacturing practices. It also mandates that the defendants engage a labeling expert to review their product labeling and certify that claims on their products comply with the law.
"Today’s injunction reflects the Department of Justice’s commitment to protect consumers from adulterated and misbranded dietary supplements," said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. "The Department of Justice will work with the FDA to ensure that dietary supplements are manufactured according to food safety laws and accurately describe their ingredients."
"As demonstrated by today’s consent decree, this office and the FDA will work tirelessly to protect consumers who take dietary supplements, ensuring that manufacturers comply with good manufacturing practices and do not distribute unapproved and misbranded drugs in violation of the Food, Drug, and Cosmetic Act," said U.S. Attorney for the Eastern District of New York Richard P. Donoghue.
"Manufacturers of products labeled as dietary supplements have an obligation to evaluate the safety and labeling to ensure their products are manufactured correctly to meet all federal requirements and are not misleading to consumers," said Melinda K. Plaisier, FDA Associate Commissioner for Regulatory Affairs. "Americans expect and deserve products that meet appropriate standards, and the FDA remains committed to taking action against companies and owners who place the health of American consumers at risk."
The injunction stems from a complaint the Department filed on Nov. 21, 2019, at the request of the U.S. Food and Drug Administration (FDA). According to the complaint, ABH and Islam manufactured, prepared, labeled, packed, held, and distributed dietary supplements under conditions that failed to comply with current good manufacturing practice regulations. In particular, the complaint alleged that the FDA had observed several critical deviations from current good manufacturing practice regulations during its inspections of ABH’s manufacturing facility, including failures to verify that certain dietary supplements met the product’s specifications for identity, purity, strength, and composition; to implement a production system that ensured the quality of the supplements; to include necessary information in its production records; and to properly review and investigate a consumer complaint.
In addition, the complaint alleged that ABH and Islam further violated the Federal Food, Drug, and Cosmetic Act by distributing unapproved and misbranded "new drugs" into interstate commerce. For instance, as alleged in the complaint, ABH made claims on product labeling that such products could be used to treat such medical conditions as cancer, heart disease, HIV and AIDS, even though the FDA had not approved those products for such purported uses, nor were there any published adequate and well-controlled investigations showing that such products are generally recognized as safe and effective for any use.
The defendants agreed to resolve the complaint and be bound by a consent decree of permanent injunction. The court adopted the agreement and entered the injunction.
The government is represented by Trial Attorney Joshua Fowkes of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Evan Lestelle of the U.S. Attorney’s Office for the Eastern District of New York, with the assistance of William Thanhauser of the FDA’s Office of Chief Counsel.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Eastern District of New York, visit its website at https://www.justice.gov/usao-edny.
Ex-housing authority official faces fraud chargesRead the Press Release
McALLEN, Texas – The former interim executive director for the La Joya Housing Authority is now in custody on charges of wire fraud, announced U.S. Attorney Ryan K. Patrick.
Frances Salinas De Leon, 52, La Joya, is set to appear before U.S. Magistrate Judge Elizabeth Chestney in San Antonio tomorrow morning.
The criminal complaint was filed Dec. 12 and unsealed upon her arrest earlier this week. It alleges that from June 2018 to approximately November 2018, De Leon acted as an intermediary between Sylvia Garces Valdez and a local elected official. De Leon allegedly helped secure a public relations contract for Valdez.
The charges also detail text conversations between Valdez and De Leon in which De Leon claimed to have a direct connection with a La Joya official. That individual would allegedly ensure the contract’s approval and any necessary amendments, according to the complaint. De Leon also allegedly set the amount of payment under the contract. The charges further allege Valdez would have to give money to DeLeon after the contract’s approval.
The complaint further alleges the women emailed each other about the contract and that Valdez had sent additional ones at DeLeon’s direction.
If convicted, De Leon faces up to 20 years in federal prison as well as a possible $250,000 maximum fine.
Valdez, 38, La Joya, is also charged in a related case. If convicted if federal program bribery, she faces up to 10 years and a possible $250,000 fine.
The FBI and Department of Housing and Urban Development—Office of the Inspector General conducted the investigation. Assistant U.S. Attorneys Sarina S. DiPiazza and Roberto Lopez Jr. are prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless and until convicted through due process of law.District Court Orders Three Long Island Companies and Their Owner to Stop Distributing Adulterated and Misbranded Dietary Supplements and Unapproved and Misbranded DrugsRead the Press Release
BROOKLYN, NY – The United States District Court for the Eastern District of New York has entered a consent decree barring three corporations, ABH Nature’s Products, Inc., ABH Pharma, Inc., and StockNutra.com, Inc. (together, “ABH”), each of Edgewood, New York, and their owner, Mohammed Jahirul Islam (“Islam”), from distributing adulterated and misbranded dietary supplements and unapproved and misbranded drugs, and requiring them to take remedial action.
The consent decree approved by United States District Judge LaShann DeArcy Hall requires ABH and Islam to destroy, within 15 days, all dietary supplements and drugs in their possession, custody or control. The injunction also requires ABH and Islam to implement consumer safety measures before resuming the manufacturing or distributing of dietary supplements. This includes hiring an independent expert to perform a comprehensive inspection of ABH’s facility, and requiring the expert to certify that defendants are complying with current good manufacturing practices.
The consent decree resolves a suit filed on November 21, 2019, at the request of the U.S. Food and Drug Administration (FDA). According to the complaint, ABH and Islam manufactured, prepared, labeled, packed, held and/or distributed dietary supplements under conditions that failed to comply with current good manufacturing practice regulations.
“As demonstrated by the consent decree, this Office and the FDA will work tirelessly to protect consumers who take dietary supplements, ensuring that manufacturers comply with good manufacturing practices and do not distribute unapproved and misbranded drugs in violation of the Food, Drug, and Cosmetic Act,” stated U.S. Attorney for the Eastern District of New York Richard P. Donoghue.
“Today’s injunction reflects the Department of Justice’s commitment to protect consumers from adulterated and misbranded dietary supplements,” stated Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The Department of Justice will work with the FDA to ensure that dietary supplements are manufactured according to food safety laws and accurately describe their ingredients.”
“Manufacturers of products labeled as dietary supplements have an obligation to evaluate the safety and labeling to ensure their products are manufactured correctly to meet all federal requirements and are not misleading to consumers,” said Melinda K. Plaisier, FDA Associate Commissioner for Regulatory Affairs. “Americans expect and deserve products that meet appropriate standards, and the FDA remains committed to taking action against companies and owners who place the health of American consumers at risk.”
According to the complaint, the FDA documented numerous significant deviations from current good manufacturing practice regulations during at least six inspections of ABH’s facilities conducted over the past several years, including failures to: conduct at least one appropriate test to verify the identity of a dietary ingredient; verify that finished batches of dietary supplements meet product specifications for identity, purity, strength and composition; include required information in batch production records; and properly review and investigate a consumer complaint.
In addition, the complaint alleged that ABH and Islam further violated the federal Food, Drug, and Cosmetic Act by distributing unapproved and misbranded “new drugs” into interstate commerce. For instance, as alleged in the complaint, ABH made claims on product labeling that such products could be used to treat such medical conditions as cancer, heart disease, HIV and AIDS, even though the FDA had not approved those products for such purported uses, nor were there any published adequate and well-controlled investigations showing that such products are generally recognized as safe and effective for any use.
ABH and Islam agreed to resolve the complaint and be bound by the consent decree of permanent injunction.
The government is represented by Assistant U.S. Attorney Evan Lestelle of the U.S. Attorney’s Office for the Eastern District of New York and Trial Attorney Joshua Fowkes of the Civil Division’s Consumer Protection Branch, with the assistance of Associate Chief Counsel for Litigation William Thanhauser of the Department of Health and Human Services’ Office of General Counsel’s Food and Drug Division.
For more information about the U.S. Attorney’s Office for the Eastern District of New York, visit its website at https://www.justice.gov/usao-edny. Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch.
The Defendants:
ABH NATURE’S PRODUCTS, INC.
Edgewood, New YorkABH PHARMA, INC.
Edgewood, New YorkSTOCKNUTRA.COM, INC.
Edgewood, New YorkMOHAMMED JAHIRUL ISLAM
E.D.N.Y. Docket No. 19-CV-6589 (LDH) (RLM)
Albuquerque Man Pleads Guilty to Three Armed Robberies at Local BusinessesRead the Press Release
ALBUQUERQUE, N.M. – Lalonzo Simmons, 44, of Albuquerque, NM, pleaded guilty today in federal court to committing three armed robberies with another man in 2018.
Simmons pleaded guilty to three counts of an indictment charging him with interference with commerce by robbery and violence and one count of using, carrying, brandishing, and discharging a firearm during a crime of violence. Simmons also pleaded guilty to a felony information charging him with being a felon in possession of a firearm.
Simmons admitted in his plea agreement that he committed these armed robberies at businesses in Albuquerque over the course of two months. Simmons admitted another man assisted him in these robberies, and that both of them possessed firearms during the crimes.
According to the plea agreement, Simmons and the other man robbed a fast food restaurant on March 19, 2018. During this robbery, Simmons accidentally discharged an assault rifle behind the counter. Later in the robbery, Simmons pressed his rifle to the back of a store employee to force the employee to open a cash register. The other man shot his gun while in a back room of the restaurant with another employee. Both Simmons and the other man fled the store with cash from the register.
In his plea agreement, Simmons admitted that he and the other man also robbed a marijuana dispensary on April 3, 2018. They ordered employees at gunpoint to sit down. The other man grabbed cash from a register. Both men also stole marijuana products from the store before fleeing.
Simmons also admitted that he and the other man also robbed a different marijuana dispensary on May 1, 2018. This time Simmons used a pistol in the offense. Simmons stood guard at the door while the other man fired his gun into the ceiling, threatened employees and customers, and stole money and marijuana products.
Police arrested Simmons at his home a few hours after the third robbery. Simmons had a rifle with an obliterated serial number at his home at the time of his arrest.
Simmons faces up to 20 years in prison for each count of interference with interstate commerce by robbery or violence. He faces from 10 years to life in prison for using, carrying, brandishing, and discharging a firearm and for being a felon in possession of a firearm.
Simmons currently is in custody awaiting sentencing. He previously was convicted of an unrelated charge of armed robbery with a deadly weapon, theft of means of transportation, aggravated battery with great bodily harm, conspiracy to commit aggravated burglary, and false imprisonment.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case with the Albuquerque Police Department. Special Assistant U.S. Attorney Timothy Trembley prosecuted the case as part of the U.S. Attorney’s Office’s “SAUSA Partnership” with the 2nd Judicial District Attorney’s Office, a joint initiative designed to reduce violent crime in Albuquerque.
Tuesday 24 December 2019
Attorney General Barr's Holiday Message to the Department of JusticeRead the Press Release
As 2019 comes to a close, I wish to thank each and every one of you for your invaluable work at the Department of Justice. Public service is a special calling that requires sacrifice, and that sacrifice is deeply appreciated by me and the Department leadership.
It is the duty of our agency to keep the American people safe. On that front, we have many reasons to be proud of our work together. Over the past twelve months, we forged real progress that has bolstered the rule of law and improved innumerable lives throughout the country. We have reduced violent crime, delivered justice to members of vulnerable communities, made headway in the opioid crisis, and launched nationwide law enforcement initiatives. I appreciate the invaluable contributions that you, the men and women of the Department, have made to these efforts.
I would also like to express special gratitude to the men and women who put on a badge every day to protect us. There is no tougher job in this country than being a police officer or law enforcement agent. Many will work long hours through the holidays and away from their families so that we can live in peace and safety.
Sadly, this holiday season, there are families that will be without loved ones who gave the last full measure of devotion to protect us from those who would do us harm. I had the honor of meeting a number of those families this year, and I found their resolve inspiring and a shining example of the American spirit. Please join me in thanking them for their service and sacrifice.
I wish all of you health and happiness as we embark upon this new year. The coming year marks the Department’s 150th anniversary and we will celebrate this milestone with events and in other special ways to underscore our agency’s seminal role in American history, enforcing the law and preserving the way of life that has allowed for unprecedented freedom and human flourishing.
May we together arrive in the new year rejuvenated, eager to celebrate 150 years of justice, and ready to continue serving the country and the American people. Happy Hanukkah, Merry Christmas, and the happiest of holidays to you and your loved ones.
With gratitude and appreciation,
Bill Barr
Monday 23 December 2019
Washington Township Businessman Sentenced for Conspiracy to Commit Wire Fraud Relating to Procurement of Government Set-Aside ContractsRead the Press Release
A Washington Township, Michigan man was sentenced on December 19, 2019 to serve 12 months in federal custody for conspiracy to commit wire fraud, United States Attorney Matthew Schneider announced today.
Schneider was joined in the announcement by Special Agent-in-Charge, Jeffrey Ryan, General Services Administration, Office of Inspector General.
Dennis Pomante, age 68, received the sentence from the Honorable Denise Page Hood, Chief United States District Judge. Judge Hood also ordered that the defendant pay a fine of $50,000, forfeit $30,000 to the United States, and serve two years on supervised release after his release from federal custody.
According to the information provided to the Court at the time of his guilty plea and sentencing, Mr. Pomante, from July 2006 through July 2014, devised and executed a scheme to defraud various government departments and agencies by making false material misrepresentations to obtain numerous government contracts which were set-aside for small businesses owned by service disabled veterans or socially disadvantaged individuals. The scheme involved POMANTE and co-conspirators falsely claiming that U.S. Builders Group, Inc. [USBG], a Detroit- based business, was a small business owned and controlled by a service-disabled veteran as defined by federal regulations. Mr. Pomante and his co-conspirators knew that USBG was an affiliated business of another business and did not qualify as a “small business,” and that a service-disabled veteran did not control the business as required to receive the contracts they bid on. Through these misrepresentations, USBG was able to obtain over $100 million in federal contracts that would otherwise have gone mainly to genuine small, service- disabled, veteran-owned businesses. Mr. Pomante is now retired, and no longer has ownership in the involved businesses. USBG went out of business in 2014.
"The GSA Office of Inspector General will aggressively pursue contractors who make false representations in order to obtain federal contracts” said Special Agent-in-Charge, Jeffrey Ryan. “Schemes to fraudulently access opportunities designated as set-aside contracts cheat the government and deserving bidders.”
The case was jointly investigated by agents of the Offices of Inspectors General for the Veterans’ Administration, the General Services Administration, the Small Business Administration, and the Department of Defense, and prosecuted by the White Collar Crimes Unit of the United States Attorney’s Office.
U.S. Attorney’s Office collects more than $14 million in civil and criminal actions in fiscal year 2019Read the Press Release
Seattle – U.S. Attorney Brian T. Moran announced today that the Western District of Washington collected more than $14 million in criminal and civil actions in fiscal year 2019. $10.3 million of that amount was collected in criminal cases, while $3.7 was collected in civil cases. Additionally, the office forfeited more than $4.6 million in criminally involved property in fiscal year 2019.
“Part of holding law breakers accountable is taking the profit out of crime and misconduct,” said U.S. Attorney Brian Moran. “I want to recognize the hard work of the attorneys and professional staff in the U.S. Attorney’s Office who work diligently to get offenders to pay up and work to see that civil fines and payments go to help those who have been damaged.”
In criminal case collections, the office secured more than $2 million in restitution for the investment fraud victims in U.S. v. Dennis Gibb.
In U.S. v. Steven Ross, the U.S. Attorney’s Office collected the full $368,000 in restitution for this case involving fraud on the Social Security Administration.
In civil collections, the office collected more than $400,000 from doctors and medical practices who settled allegations they received kickbacks for ordering unnecessary medical tests. And a nationwide flooring company paid more than $133,000 to settle allegations it paid kick-backs for government work.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Additionally, the U.S. Attorney’s Office in the Western District of Washington, working with partner agencies and divisions, forfeited $4,625,430 in criminally-involved property in FY 2019. The proceeds from those forfeitures are deposited into the Department of Justice Assets Forfeiture Fund, where they are used to restore funds to crime victims and for a variety of law enforcement purposes.
In 2019, significant Department of Justice forfeitures included the criminal forfeiture of $745,000 real property and financial accounts in U.S. v. Lionel Hampton, et al. The criminal group distributed controlled substances including oxycodone and laundered the proceeds through real property purchases.
In a second case, U.S. v. Keenan Gracey, the office forfeited nearly $604,000 in proceeds that Gracey paid to rent a mansion used in the fraud scheme. We have requested that these funds be applied to Gracey’s restitution order and paid to his victims.
U.S. Attorney’s Office Recovers more than $25 Million in Civil and Criminal Actions in Fiscal Year 2019Read the Press Release
Assistant U. S. Attorney Leah Bussell (619) 546-6727
NEWS RELEASE SUMMARY – December 23, 2019
SAN DIEGO – The Southern District of California collected $15,280,216.07 in criminal and civil actions in Fiscal Year 2019. Of this amount, $11,247,702.88 was collected in criminal actions and $4,032,513.19 was collected in civil actions. The Southern District of California worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $1,991,480.00 in cases pursued jointly by these offices.
Additionally, the U.S. Attorney’s office for the Southern District of California, working with partner agencies and divisions, collected $10,665,224 in asset forfeiture actions in FY 2019.
“The recovery of stolen funds and the return of that money to victims is an important priority for this office,” said U.S. Attorney Robert Brewer. “We use all available legal tools to recover money for victims and ensure that defendants are held accountable for the full amount of the losses. These results are a great credit to the hard work and dedication of our Asset Recovery section led by Assistant U.S. Attorney Leah Bussell and our outstanding team of agency partners.”
In one case in August, the U.S. Attorney’s Office recovered $2,934,754.01 in fraud proceeds from Karen Galstian. Galstian had pleaded guilty to conspiracy to commit mail and wire fraud in November of 2015. A court sentenced Galstian to 100 months custody and ordered him to pay restitution to the victim. The United States Attorney’s office pursued collection of the restitution and in August of 2019, collected almost $3 million from assets owned by Galstian – funds that were distributed to the victim.
The U.S. Attorneys’ offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Three Bay County Men Sentenced for Operating Sweepstakes Scam Targeting Elderly VictimsRead the Press Release
PANAMA CITY, FLORIDA–Three Bay County men – Delroy Williams, 52, of Lynn Haven, Vivian Walters,
33, of Lynn Haven, and Jevaughn Williams, 22, of Panama City Beach – were sentenced on federal
fraud charges stemming from activities meant to induce elderly victims with false promises of
sweepstakes prizes. The sentences were announced today by Lawrence Keefe, United States Attorney
for the Northern District of Florida.The three men pleaded guilty in June to one count of conspiracy to commit wire fraud and mail
fraud, one count of wire fraud, and one count of mail fraud. Jevaughn Williams was sentenced to 30
months in federal prison followed by three years of supervised release, while Walters and Delroy
Williams were sentenced to 36 months in federal prison followed by three years of supervised
release.“It is hard to fathom how some deceitful criminals have no problem preying on innocent victims,
especially those they consider most vulnerable because they are elderly. The U.S. Attorney’s Office
has a message for these criminals: We will find you, we will prosecute you, and we will put you
away,” Keefe said.Since the late 1990s, telemarketers in Jamaica have been engaging in a scam in which they contact
victims in the United States and falsely claim their targets have won large sweepstakes prizes.
Victims, who are primarily elderly, are induced to send cash or cash equivalents in order to
release their supposed prizes. The victims’ funds are often transported by wire transfers and
United States Postal Service packages.Between 2014 and 2017, the defendants conspired together to receive wire transfers and packages
mailed by victims. They then took a percentage of the funds for themselves before forwarding the
remainder to co-conspirators in Jamaica. Multiple victims have been identified through wire
transfer records and searches of the defendants’ electronic devices.“The U.S. Postal Inspection Service will continue to pursue justice on behalf of our elderly
customers by thoroughly investigating lottery scams and those involved with victimizing U.S.
Citizens,” stated Miami Division Inspector in Charge Tony Gomez.Assistant U.S. Attorneys Michael Harwin and Michelle Daffin prosecuted the case following a joint
investigation by the United States Postal Inspection Service and the Lynn Haven Police Department.The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that
serve as the nation’s principal litigators under the direction of the Attorney General. To access
public court documents online, please visit the U.S. District Court for the Northern District of
Florida website. For more information about the United States Attorney’s Office, Northern
District of Florida, visit http://www.justice.gov/usao/fln/index.html.Texas Health and Human Services Commission Agrees to Pay over $15 Million to Resolve False Claims Act Liability for Deficient Snap Quality ControlRead the Press Release
The Texas Health and Human Services Commission (THHSC) has agreed to pay the United States $15,294,360 to resolve allegations that it violated the False Claims Act in its administration of the Supplemental Nutrition Assistance Program (SNAP), the Department of Justice announced today.
“SNAP is an important vehicle for helping needy families,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “This settlement is an example of the Department’s commitment to ensuring that taxpayer funds are spent appropriately so that the public can have confidence in the integrity of vital programs like SNAP.”
“Although it is appalling that these actions occurred within a state agency entrusted with assisting vulnerable and needy residents, I am heartened that THHSC has resolved its liability and cooperated with our investigation,” said William D. Hyslop, United States Attorney for the Eastern District of Washington. “Together with our partners in the Justice Department’s Civil Division and the USDA, we will continue to investigate and hold accountable those who misuse and wrongfully obtain SNAP funding.”
Until 2008, SNAP was known as the Food Stamp Program. Under SNAP, the U.S. Department of Agriculture (USDA) provides eligible low-income individuals and families with financial assistance to buy nutritious food. Since 2010, SNAP has served on average more than 45 million Americans per month, and provided more than $71 billion annually.
Although the federal government funds SNAP benefits, it relies on the states to determine whether applicants are eligible for benefits, to administer those benefits, and to perform quality control to ensure that eligibility decisions are accurate. USDA requires that the states’ quality control processes ensure that benefits are correctly awarded, are free from bias, and accurately report states’ error rates in making eligibility decisions.
USDA reimburses states for a portion of their expenses in administering SNAP, including expenses for providing quality control. The USDA also pays performance bonuses to states that report the lowest and the most improved error rates each year, and can impose monetary sanctions on states with high error rates that do not show improvement.
The settlement resolves allegations that THHSC, beginning in 2009, contracted with Julie Osnes Consulting, LLC (Osnes Consulting) to provide advice and recommendations designed to lower its SNAP quality control error rate. The United States alleged that Osnes Consulting’s recommendations, as implemented by THHSC, injected bias into THHSC’s quality control process, and resulted in THHSC submitting false quality control data and information to USDA for which it received performance bonuses for fiscal years 2010, 2013, and 2014 to which it was not entitled.
This is the fifth settlement in this matter, and the fourth settlement with a state agency for manipulating its SNAP quality control findings. The United States has reached previous settlements with state agencies in Virginia, Wisconsin, and Alaska, as well as with Osnes Consulting and its owner, Julie Osnes. Including this settlement, the United States has now recovered over $32 million in connection with its investigation of deficient state SNAP quality control processes.
“We appreciate the commitment and investigative assistance provided by our partners at the Department of Justice’s Civil Division and the U.S. Attorney’s Office throughout this multi-state investigation,” said Special Agent-in-Charge Bethanne M. Dinkins of the USDA Office of Inspector General (OIG). “We also wish to note the technical assistance provided by our colleagues in the Office of Audit at OIG. During the investigation, conducted by OIG’s Northeast Regional Office, we worked together to address the concerns of employees of multiple states and others who alleged that the integrity of the SNAP quality control process was weakened by third-party consultants. These concerned individuals reported that cases were not being treated in a consistent manner, and that certain advice from consultants resulted in identified errors being diminished rather than used to improve eligibility determinations. The settlements reached to date send a strong message regarding the Government’s commitment to work across agency lines to protect the integrity of SNAP.”
The settlement was the result of a joint investigation conducted by the USDA Office of Inspector General, the U.S. Attorney’s Office for the Eastern District of Washington, and the Department of Justice’s Civil Division, Commercial Litigation Branch. The investigation arose out of a nationwide audit of SNAP QC processes by the USDA-OIG. The investigation for the U.S. Attorney’s Office for the Eastern District of Washington was handled by Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene. The claims resolved by the civil settlement are allegations only and there has been no determination of liability.
Texas Health and Human Services Commission Agrees to Pay over $15 Million to Resolve False Claims Act Liability for Deficient SNAP Quality ControlRead the Press Release
The Texas Health and Human Services Commission (THHSC) has agreed to pay the United States $15,294,360 to resolve allegations that it violated the False Claims Act in its administration of the Supplemental Nutrition Assistance Program (SNAP), the Department of Justice announced today.
“SNAP is an important program for helping families in need,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “This settlement is an example of the Department of Justice’s commitment to ensuring that taxpayer funds are spent appropriately so that the public can have confidence in the integrity of vital programs like SNAP.”
“Although it is appalling that these actions occurred within a state agency entrusted with assisting vulnerable and needy residents, I am heartened that THHSC has resolved its liability and cooperated with our investigation,” said United States Attorney William D. Hyslop for the Eastern District of Washington. “Together with our partners in the Justice Department’s Civil Division and the USDA, we will continue to investigate and hold accountable those who misuse and wrongfully obtain SNAP funding.”
“We appreciate the commitment and investigative assistance provided by our partners at the Department of Justice’s Civil Division and the U.S. Attorney’s Office throughout this multi-state investigation,” said Special Agent in Charge Bethanne M. Dinkins of the USDA Office of Inspector General (OIG). “We also wish to note the technical assistance provided by our colleagues in the Office of Audit at OIG. During the investigation, conducted by OIG’s Northeast Regional Office, we worked together to address the concerns of employees of multiple states and others who alleged that the integrity of the SNAP quality control process was weakened by third-party consultants. These concerned individuals reported that cases were not being treated in a consistent manner, and that certain advice from consultants resulted in identified errors being diminished rather than used to improve eligibility determinations. The settlements reached to date send a strong message regarding the Government’s commitment to work across agency lines to protect the integrity of SNAP.”
Until 2008, SNAP was known as the Food Stamp Program. Under SNAP, the U.S. Department of Agriculture (USDA) provides eligible low-income individuals and families with financial assistance to buy nutritious food. Since 2010, SNAP has served on average more than 45 million Americans per month, and provided more than $71 billion annually.
Although the federal government funds SNAP benefits, it relies on the states to determine whether applicants are eligible for benefits, to administer those benefits, and to perform quality control to ensure that eligibility decisions are accurate. USDA requires that the states’ quality control processes ensure that benefits are correctly awarded, are free from bias, and accurately report states’ error rates in making eligibility decisions.
USDA reimburses states for a portion of their expenses in administering SNAP, including expenses for providing quality control. The USDA also pays performance bonuses to states that report the lowest and the most improved error rates each year, and can impose monetary sanctions on states with high error rates that do not show improvement.
The settlement resolves allegations that THHSC, beginning in 2009, contracted with Julie Osnes Consulting LLC (Osnes Consulting) to provide advice and recommendations designed to lower its SNAP quality control error rate. The United States alleged that Osnes Consulting’s recommendations, as implemented by THHSC, injected bias into THHSC’s quality control process, and resulted in THHSC submitting false quality control data and information to USDA for which it received performance bonuses for fiscal years 2010, 2013, and 2014 to which it was not entitled.
This is the fifth settlement in this matter, and the fourth settlement with a state agency for manipulating its SNAP quality control findings. The United States has reached previous settlements with state agencies in Virginia, Wisconsin, and Alaska, as well as with Osnes Consulting and its owner, Julie Osnes. Including this settlement, the United States has now recovered over $32 million in connection with its investigation of deficient state SNAP quality control processes.
The settlement was the result of a joint investigation conducted by the USDA Office of Inspector General, the U.S. Attorney’s Office for the Eastern District of Washington, and the Department of Justice’s Civil Division, Commercial Litigation Branch. The investigation arose out of a nationwide audit of SNAP quality control procedures by the USDA-OIG. The claims resolved by the civil settlement are allegations only and there has been no determination of liability.
Sex Offender Sentenced to 262 Months for Attempting to Entice a MinorRead the Press Release
ALBANY, NEW YORK – James Seeley, age 55, of Albany and Queensbury, New York, was sentenced today to 262 months in prison for attempted coercion and enticement of a minor.
The announcement was made by United States Attorney Grant C. Jaquith; James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and New York State Police Superintendent Keith M. Corlett.
Seeley was a sex offender as a result of a 2002 conviction, deviate sexual intercourse with another person less than 11 years old, for which he was sentenced to 7 years in state prison. He also has a conviction for possessing child pornography.
As part of his guilty plea in federal court, Seeley admitted that in October 2018, he communicated with two undercover officers, including one posing as an 11-year-old girl. Seeley admitted that he discussed his interest in engaging in various sex acts with someone he believed to be the 11-year-old girl and then went to a location in Queensbury to engage in sexual intercourse with her.
United States District Judge Mae A. D’Agostino also ordered Seeley to serve a life term of supervised release following his release from prison.
This case was investigated by the FBI and the New York State Police, and was prosecuted by Assistant U.S. Attorney Katherine Kopita.
Pinellas County Man Sentenced to More Than Nine Years for Receiving and Possessing Child Sex Abuse MaterialRead the Press Release
Tampa, Florida – U.S. District Judge Virginia M. Hernandez-Covington has sentenced Kelly Stephen Ratcliffe (53, Dunedin) to nine years and two months in federal prison for receiving and possessing child pornography. In addition, Ratcliffe is ordered to pay $49,000 in restitution to the victims, and must forfeit the electronic devices that he used to commit the offenses.
Ratcliffe had pleaded guilty on September 19, 2019.
According to court documents, the FBI executed a search warrant at Ratcliffe’s residence in November 2018. Ratcliffe admitted that he had used his iPhone and iPad to access an internet application known to law enforcement to be used by individuals interested in sharing child sex abuse material, to communicate with others about the sexual abuse of children, and to receive, trade, and save child pornography. A forensic review of Ratcliffe’s electronic devices revealed that he had received numerous images and videos of child pornography from other individuals online and that he possessed approximately 230 videos and over 800 images of child sex abuse material depicting the sadomasochistic conduct, bondage, and penile penetration of infants and toddlers. Ratcliffe told other individuals that he liked child rape and liked them “crying” and “tied.” The forensic analysis of the devices also revealed that Ratcliffe had specifically sought out images and videos of toddlers being raped.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Lisa M. Thelwell.
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 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 locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Pennsylvania man admits to firearms violationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Charles Lynn, of Uniontown, Pennsylvania, has admitted to a firearms charge, U.S. Attorney Bill Powell announced.
Lynn, age 41, pled guilty to one count of “Unlawful Possession of Firearm.” Flynn, a convicted felon, admitted to illegally possessing a 12 gauge shotgun, a .308 caliber rifle, and a 7mm caliber rifle in October 2018 in Monongalia County.Lynn faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Sarah E. Wagner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Monongalia County Sheriff’s Office, and the Pennsylvania State Police investigated.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. Magistrate Judge Michael John Aloi presided.
Pearland man heads to prison for sex trafficking of a minorRead the Press Release
HOUSTON – A 23-year-old man has been ordered to federal prison after admitting he recruited a high school girl and trafficked her for sex, announced U.S. Attorney Ryan K. Patrick.
Dihlon Lee Davis pleaded guilty Aug. 1, 2o19.
Today, U.S. District Judge George C. Hanks Jr. noted there were consequences for his actions and sentenced Davis to 192 months in prison. He was further ordered to serve 15 years on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. Davis will also be ordered to register as a sex offender. Restitution will be determined at a later date.
On several consecutive weekends in late February and early March 2016, Davis used online advertisements for the victim’s services and rented hotel rooms where some of the commercial sex acts occurred. The victim attended Manvil high school during the week and engaged in the sexual activity on the weekends.
On multiple occasions, Davis provided illegal drugs to the minor victim. He used the money the victim earned to purchase the drugs which he consumed with his girlfriend - also a minor - and the victim.
Davis has been detained since his arrest and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Texas Department of Public Safety (DPS) and FBI – Texas City, both part of the Human Trafficking Rescue Alliance (HTRA), conducted the investigation.
HTRA law enforcement includes members of the Houston Police Department, FBI, Immigration and Customs Enforcement’s Homeland Security Investigations, Texas Attorney General’s Office, IRS-Criminal Investigation, Department of Labor, Department of State, Texas Alcoholic and Beverage Commission, DPS, Coast Guard, sheriff’s offices in Harris and Montgomery counties in coordination with District Attorney’s offices in Harris, Montgomery and Fort Bend Counties.
Assistant U.S. Attorneys Sherri L. Zack and Kimberly A. Leo are prosecuting the case.
Para-Educator Sentenced for Possession of Child PornographyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on December 20, 2019, Bradley Smith, 67, of Jericho, Vermont, was sentenced in United States District Court in Burlington, Vermont, to serve 24 months in prison after his guilty plea to one count of possession of child pornography. U.S. District Judge Christina Reiss also ordered Smith to serve a seven (7) year term of supervised release, and to pay a $100 special assessment.
According to court records and proceedings, the Vermont Internet Crimes Against Children Task Force (the ICAC) received a CyberTip from the National Center for Missing and Exploited Children (NCMEC) which reported that a file depicting child pornography had been uploaded to an Internet search engine. Law enforcement investigated the CyberTip and determined that the image of child pornography had been uploaded from Smith’s residence in Jericho, Vermont. On April 1, 2019, law enforcement executed a search warrant at Smith’s residence. At that time, Smith disclosed, among other things, that he possessed child pornography on his computer, that he had been interested in child pornography for “decades,” and that he found images of child pornography to be sexually arousing. A forensic search of Smith’s computer revealed that he possessed nearly 150 images of child pornography. At sentencing, the Court found that some of the images in Smith’s collection of child pornography depicted sadistic and masochistic conduct.
Prior to execution of the search warrant and his arrest, Smith was employed as a para-educator in a first-grade classroom at the Union Memorial School in Colchester, Vermont.
U.S. Attorney Christina Nolan commended the efforts of the Vermont Internet Crimes Against Children Task Force and Homeland Security Investigations.
Assistant U.S. Attorney Barbara A. Masterson handled the prosecution of Smith. Assistant Federal Public Defender Steven L. Barth represented Smith.
U.S. Attorney Nolan noted that this prosecution is part of the U.S. Department of Justice's Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Oregon Department of Corrections Officer and Co-Conspirator Indicted on Drug ChargesRead the Press Release
PORTLAND, Ore.—Richard Steven Alberts, II, 31, an Oregon Department of Corrections Officer and resident of Sherwood, Oregon, made an initial appearance today in federal court before U.S. Magistrate Judge John Jelderks.
The court unsealed a 3-count indictment charging Alberts and co-conspirator Joseph Lucio Jimenez, 27, of Gresham, Oregon, with conspiracy to distribute controlled substances and distribution of heroin. Alberts and Jimenez are alleged to have conspired with one another and others to distribute methamphetamine and heroin into the Coffee Creek Correctional Facility in Wilsonville, Oregon, where Alberts is employed.
The Oregon Department of Corrections previously placed Alberts on administrative leave pending this investigation.
Alberts was released pending trial. A jury trial is scheduled for February 25, 2020 before U.S. District Court Judge Michael H. Simon.
Jimenez was in pre-trial custody on an unrelated felon in possession of a firearm charge when he was indicted in this case. He will remain in custody and make his first appearance on these new charges at a later date.
This case was investigated by the FBI, Oregon State Police, and Oregon Department of Corrections Office of Inspector General, and is being prosecuted by Craig Gabriel and Scott Bradford, Assistant U.S. Attorneys for the District of Oregon.
An indictment is only an accusation of a crime, and defendants are presumed innocent unless and until proven guilty.
Oklahoma Man Sentenced for Passing Counterfeit United States CurrencyRead the Press Release
United States Attorney Ron Parsons announced that an Oklahoma City, Oklahoma, man convicted of Passing Counterfeit United States Currency was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Michael Ogden, age 38, was sentenced on December 18, 2019, to 41 months in federal prison, followed by 3 years of supervised released, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Michael Ogden was indicted by a federal grand jury in March 2018, together with Mary Autry and Marcus Franklin. The charges relate to the trio using printers, paper, and chemicals to convert legitimate $10 U.S. currency bills into counterfeit $100 U.S. currency bills. Using this equipment, they manufactured and passed thousands of dollars of counterfeit U.S. $100 bills in South Dakota and other states.
The investigation was conducted by the Rapid City Police Department and the U.S. Secret Service. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Ogden was immediately turned over to the custody of the U.S. Marshals Service. Autry and Franklin are awaiting sentencing.
Northern Hills Drug Traffickers SentencedRead the Press Release
United States Attorney Ron Parsons announced that a Spearfish, South Dakota, man and woman convicted of Conspiracy to Distribute a Controlled Substance, were recently sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Enrique Estrada, Jr., a/k/a Ricky Estrada, age 43, was sentenced on December 5, 2019, to 20 years in federal prison, followed by 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Kari Lee Vaughn, a/k/a/ Kari Drury, age 35, was sentenced on December 18, 2019, to 15 years in federal prison, followed by 10 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Estrada and Vaughn were indicted by a federal grand jury in September 2018. The charge relates to Estrada, Vaughn, and others distributing multiple pounds of methamphetamine in western South Dakota, primarily in the Northern Hills, between October 2017 and September 2018. Estrada coordinated several co-conspirators to obtain methamphetamine from the state of Colorado, then transport it to South Dakota and distribute it. Vaughn wired money for Estrada and traveled to Colorado, to assist in obtaining the methamphetamine. She further distributed the methamphetamine for Estrada, as well. Much of the methamphetamine was distributed out of Estrada’s home in Spearfish.
This investigation was led by the South Dakota Division of Criminal Investigation with the assistance from the Deadwood Police Department, Spearfish Police Department, Belle Fourche Police Department, South Dakota Highway Patrol, Lawrence County Sheriff’s Office, Butte County Sheriff’s Office, and members from the Unified Narcotics Enforcement Team (UNET). Additional arrests were also made at the State and Federal level in connection to this investigation. The case was prosecuted by Gina S. Nelson, Assistant U.S. Attorney.
Estrada and Vaughn were immediately turned over to the custody of the U.S. Marshals Service.
Natick Man Charged with Fentanyl and Methamphetamine TraffickingRead the Press Release
BOSTON – A Natick man has been indicted by a federal jury in Boston in connection with drug trafficking activities involving fentanyl.
Rafael Ashworth, 27, was indicted on Dec. 18, 2019, on one count of possession with intent to distribute 40 grams or more of fentanyl and 50 grams or more of methamphetamine. Ashworth was arrested by state authorities on Nov. 17, 2019, and charged by federal criminal complaint on Nov. 21, 2019. He is currently in federal custody.
According to court documents, after responding to a report of an overdose death at Ashworth’s apartment, police found Ashworth with approximately 100 grams of a substance containing both fentanyl and methamphetamine along with other paraphernalia associated with drug packaging and distribution. Police also found a deceased woman in the apartment, who is believed to have died from a fentanyl overdose.
The charge of possession with intent to distribute more than 40 grams of fentanyl and 50 grams or more of methamphetamine carries a mandatory minimum sentence of five years and up to 40 year in prison, at least four years of supervised release, and a fine of up to $5 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 and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division, made the announcement. Special assistance was provided by the Natick Police Department and the Massachusetts State Police. Assistant U.S. Attorneys Leah Foley and Stephen Hassink of Lelling’s Narcotics and Money Laundering Unit are prosecuting the case
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Miami Man Sentenced to More Than 5 Years in Prison for Role as Money Mule and Mule Recruiter in International Cybercrime Money Laundering NetworkRead the Press Release
Yamel Guevara Tamayo, 36, of Miami, was sentenced Friday, December 20, 2019 to 63 months in prison for his role in serving as a money mule, and recruiter of more than 15 additional money mules, in an international money laundering operation for business email compromise (BEC) and other cyber-schemes.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, made the announcement.
Tamayo previously pled guilty before U.S. District Judge Ursula Ungaro to conspiracy to commit money laundering. In addition to the prison sentence, U.S. District Judge Ursula Ungaro ordered Tamayo to serve three years of supervised release and pay $700,474.97 in restitution.
According to the court record, from November 2016 through June 2019, Tamayo, together with co-conspirators Roda Taher a/k/a “Rezi,” and others participated in a scheme to help steal more than $1.5 million dollars from individual and corporate victims, which proceeds were later laundered. The scheme involved recruiting “money mules,” including Tamayo, who allowed their respective names and personal identifying information to be used by co-conspirators to incorporate a sham business through the Florida Department of State, Division of Corporations, under such mule’s name. As part of the scheme, a mule would then open bank accounts at multiple banks in the name of his or her shell company. Several mules, including Tamayo, later recruited and managed new money mules. To date, more than 200 money mules and money mule recruiters have been identified as part of this international money laundering network.
A related cyberattack aspect of the scheme involved the creation, by co-conspirators, of email addresses that mimicked, but differed slightly from, legitimate email addresses of supervisory employees at various companies. The conspirators used these deceptive email addresses to send emails that appeared to be requests for payment of legitimate invoices or debts owed by the victims. The victims were deceived into transferring funds by wire into the bank accounts opened by the money mules and controlled by Tamayo and the co-conspirators. After the victims complied with the fraudulent wiring instructions, Tamayo, under the direction of other conspirators, quickly debited thousands of dollars from the accounts through in-person withdrawals, ATM withdrawals, and debit card purchases. Tamayo and co-conspirators also rapidly transferred victims’ funds to foreign bank accounts that co-conspirators controlled as soon as the funds came in. Tamayo and other co-conspirators kept a fraction of the proceeds as payment after doing so.
Tamayo’s role expanded over time. He ultimately recruited more than fifteen individuals to participate as mules in the money laundering scheme, serving as their manager and directing them to open new accounts. His involvement in the scheme lasted until in or around June 2019. In total, Tamayo and his mules intended to launder more than $1.4 million dollars, and succeeded in laundering more than $700,000 before banks were able to freeze and claw back some of the funds due to suspected fraud.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI and USSS in this matter. This case is being prosecuted by Assistant U.S. Attorney Lisa H. Miller.
In related cases in this District, more than thirty members of the money laundering network have been prosecuted and convicted. See United States v. Roda Taher, et al., 17-cr-60223-UU; United States v. Luis Pujols, et al., 17-cr-20702-JEM; United States v. Cynthia Rodriguez, et al., 17-cr-20748-JEM; United States v. Eliot Pereira, et al., 18-cr-20170-MGC; and United States v. Gustavo Gomez, et al., 18-CR-20415-UU; and United States v. Alfredo Veloso, et al., 18-20759-CR-KMW. Assistant U.S. Attorneys Dwayne E. Williams and Lisa H. Miller prosecuted those cases.
The Justice Department’s efforts to confront the growing threat of cyber-enabled financial fraud led to the formation of the BEC Counteraction Group (BCG), which assists U.S. Attorney’s Offices and the Department with the coordination of BEC cases and the centralization of related expertise. The BCG facilitates communication and coordination between federal prosecutors, serves as a bridge between federal prosecutors and federal agents, centralizes and manages institutional knowledge and training, and participates in efforts to educate the public about protecting themselves and their organizations from BEC scams.
The BCG draws upon the expertise of the following sections within the Department’s Criminal Division: the Computer Crime and Intellectual Property Section, which regularly investigates and prosecutes cases involving computer crimes, including network intrusions; the Fraud Section, which manages complex litigation involving sophisticated fraud schemes; the Money Laundering and Asset Recovery Section, which brings experience in seizing assets obtained through criminal activity; the Office of International Affairs, which plays a central role in securing international evidence and extradition; and the Organized Crime and Gang Section, which contributes strategic guidance in prosecuting complex transnational criminal cases.
This case was part of the Department of Justice’s Operation reWired, which followed “Operation Wire Wire,” the first coordinated enforcement action targeting hundreds of BEC scammers. That effort, announced in June 2018, resulted in the arrest of 74 individuals, the seizure of nearly $2.4 million, and the disruption and recovery of approximately $14 million in fraudulent wire transfers.
Victims are encouraged to file a complaint online with the IC3 at bec.ic3.gov. The IC3 staff reviews complaints, looking for patterns or other indicators of significant criminal activity, and refers investigative packages of complaints to the appropriate law enforcement authorities in a particular city or region. The FBI provides a variety of resources relating to BEC through the IC3, which can be reached at www.ic3.gov. For more information on BEC scams, visit: https://www.ic3.gov/media/2019/190910.aspx.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Metairie Woman Pleads Guilty to Obtaining Oxycodone by FraudRead the Press Release
NEW ORLEANS - U.S. Attorney Peter G. Strasser announced that BENNIE RUTH HARRIS, age 64, a resident of Metairie, Louisiana pled guilty on December 18, 2019 to obtaining oxycodone, a Schedule II controlled substance, by fraud.
According to court documents, on August 7, 2017, HARRIS filled a fictitious prescription for oxycodone and took possession of the oxycodone pills. The prescription was created using a stolen prescription template from an area physician. HARRIS faces up to 4 years’ imprisonment, a fine of up to $250,000, and up to one year of supervised release. Sentencing was scheduled for April 15, 2020 at 2:00 p.m. before U.S. District Court Judge Lance M. Africk.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation, the Drug Enforcement Administration, the Department of Health and Human Services, and the Jefferson Parish Sheriff’s Office for their work investigating the case.
The case is being prosecuted by Jared Hasten of the Criminal Division’s Fraud Section and Assistant United States Attorney Myles Ranier.
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Manhattan U.S. Attorney Announces Agreement with Related Companies to Increase Accessibility of the Vessel in Hudson YardsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Eric Dreiband, Assistant Attorney General for the Department of Justice Civil Rights Division, announced today that Related Companies L.P. (“Related”) and ERY Vessel LLC have agreed to install a one-of-a-kind platform lift mechanism on the upper levels of the Vessel, a new public attraction in Hudson Yards, to increase the Vessel’s accessibility for individuals with disabilities. Under the agreement, Related has agreed to design, construct, install, and operate a platform lift mechanism that will allow individuals with disabilities to traverse the stairways and platforms at the top levels of the Vessel so as to enjoy 360-degree views, providing access to the most traveled areas of the Vessel that are also currently inaccessible to individuals with disabilities.
The United States contends that as constructed, the Vessel, a multi-story, open air structure composed of eighty (80) platforms connected by stairways, is inaccessible to individuals with disabilities in violation of the Americans with Disabilities Act of 1990. Related has described the Vessel as the centerpiece of the new Hudson Yards development in Manhattan, and as a “public landmark” that “will lift the public up, offering a multitude of ways to engage with and experience New York, Hudson Yards and each other.” But the Vessel’s current design allows individuals with disabilities to access at most only three (3) of the 80 platforms, all on one side of the structure, as the sole elevator reaches three platforms and visitors must otherwise traverse stairs to move among the platforms. Due to the high demand for the elevator, Related has at times directed that the elevator bypass the platforms at levels 5 and 7, thereby rendering only one platform (at level 8) accessible to individuals with disabilities.
Manhattan U.S. Attorney Geoffrey S. Berman said: “We are pleased that Related has designed an innovative solution to increase accessibility to the Vessel. Related has agreed to commit substantial resources to install a platform lift that will allow individuals with disabilities to enjoy 360-degree views from the Vessel’s top level.”
Assistant Attorney General Eric Dreiband said: “As we approach the ADA’s 30th Anniversary, it is vital that individuals with disabilities have access to major new tourist attractions in our cities. I am pleased that Related is taking steps to increase accessibility of the Vessel.”
The agreement also requires Related to ensure that the elevator stops at levels 5 and 7 upon request, to operate the elevator on a pre-set, timed schedule, and to modify the Vessel’s ticketing reservation options to allow individuals with disabilities to reserve priority access to the elevator.
This case is being handled by the Office’s Civil Rights Unit. Assistant U.S. Attorney Ellen Blain is in charge of the case.
Montana U.s. Attorney’s Office Collects $9.5 Million in Civil and Criminal Actions in Fiscal Year 2019Read the Press Release
BILLINGS - U.S. Attorney Kurt Alme announced today that the District of Montana collected $9,536,489 in criminal and civil actions in Fiscal Year 2019. Of this amount, the office collected $1,567,514 in criminal actions and $7,968,974 in civil actions.
In some cases, the U.S. Attorney’s Office worked jointly with other litigating agencies of the Department of Justice to collect an additional $1,230,331.
“These recovered funds come from divesting criminals of ill-gotten gains and from civil penalties and debt collections. The money helps to make crime victims whole and benefits the U.S. Treasury, which are priorities of this office. I want to thank our employees and in particular, the Financial Litigation Unit, for their hard work and dedication,” U.S. Attorney Alme said.
Funds collected in criminal judgments include cases involving Stanley Weber, a former Indian Health Service doctor convicted of sexual abuse of children, and Woody’s Trucking LLC, which was convicted of multiple charges stemming from a 2012 explosion of an oil and gas processing plant in Wibaux.
Some of the funds recovered funds in civil actions include cases involving Bozeman Health Deaconess Hospital for alleged fraudulent billing and the Confederated Salish and Kootenai Tribes Pharmacy for alleged pharmacy violations involving opioids.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Additionally, the U.S. Attorney’s Office in Montana, working with partner agencies and divisions, collected $584,174 in asset forfeiture actions in FY 2019. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
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Laurel County Woman Sentenced to 168 Months for Two Armed Bank Robberies and CarjackingRead the Press Release
LONDON, Ky. – A London woman, Jennifer L. Moore, 51, was sentenced Monday to 168 months in federal prison, by United States District Judge Robert E. Wier, for carjacking, two armed bank robberies, and brandishing a firearm during a crime of violence.
According to Moore’s guilty plea agreement, Moore asked someone for a ride outside of St. Joseph Hospital in London; and during the ride, she pulled out a loaded handgun and demanded the van. Moore then drove the van to Forcht Bank in London, disguised herself, and demanded that the tellers provide her all their $100 dollar bills from their drawers. In her plea agreement, Moore further admitted to keeping her handgun displayed and repeatedly telling employees she would kill them. Moore left Forcht Bank with $16,088.00.
Moore then drove the stolen van to Cumberland Valley National Bank, where she once again demanded the bank tellers’ cash and threatened their lives. Similarly, Moore motioned to her loaded firearm while demanding the employees move faster. Moore left CVNB with $14,481.00. Moore brandished and carried a loaded 9mm semiautomatic pistol throughout the robberies and then led law enforcement on a brief high speed chase, which ended with her attempt to run on foot.
Moore pled guilty to the offenses on July 1, 2019. Under federal law, she must serve 85 percent of her prison sentence; and upon her release, she will be under the supervision of the United States Probation Office for five years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; James Robert Brown, Special Agent in Charge, FBI Louisville Field Division; and Darrel Kilburn, Chief of Police London Police Department (PD), jointly made the announcement.
The investigation was conducted by the FBI London Office and London Police Department. The United States was represented by Assistant U.S. Attorney Jenna Reed.
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Lancaster Woman Sentenced to 45 Months’ Imprisonment for Drug TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on December 20, 2019, United States District Court Judge Robert D. Mariani sentenced Myrna Echevarria-Jiminez, age 44, of Lancaster, Pennsylvania, to 45 months’ imprisonment followed by four years of supervised release for drug trafficking.
According to United States Attorney David J. Freed, Ecchevaria-Jiminez pled guilty to a conspiracy to distribute and possess with intent to distribute cocaine, and admitted responsibility for one kilogram of cocaine as part of that conspiracy. Several co-conspirators have also pled guilty and are pending sentencing. Codefendant Luis Enrique Martinez-Ortiz, a/k/a “Chino,” was previously sentenced to 87 months in prison. Ecchevaris-Jiminez’a sentence includes a 4-year term of supervised release after her prison term.
The case was investigated by the U.S. Drug Enforcement Administration (DEA), Wilkes-Barre Police Department, and Pennsylvania State Police. Assistant U.S. Attorney Sean A. Camoni is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement 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 enforcement and the local community to develop effective, locally-based strategies to reduce crime.
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Justice Department Files Lawsuit against Toledo Landlord who Subjected Women to Sexual HarassmentRead the Press Release
Today the Department of Justice filed a lawsuit in federal court alleging that a landlord violated the Fair Housing Act by sexually harassing several female tenants of rental properties in Toledo, Ohio. This is the 12th lawsuit alleging a pattern or practice of sexual harassment in housing that the Department has filed since it launched its Sexual Harassment in Housing Initiative in late 2017.
“Sexual harassment of women tenants by landlords and their agents violates the Fair Housing Act and, worse, destroys the ability of women and their families to live in peace and security. This illegal and despicable conduct inflicts emotional, psychic, and often physical pain and suffering on victims, including children,” said Assistant Attorney General Eric Dreiband. “Anyone who preys on women and their families should be on notice: the United States Department of Justice will continue aggressively to prosecute abusers and seek justice for the victims of cruel and inhumane sexual harassment.”
“Housing instability is a contributing factor to poverty, under education, and violent crime,” said U.S. Attorney for the Northern District of Ohio Justin Herdman. “This case and cases like these are designed to use every tool that we have on the federal level to ensure that tenants remain in housing free from fear that they will be harassed, assaulted, or subjected to conditions that are unlawful.”
The lawsuit, filed in the U.S. District Court for the Northern District of Ohio, alleges that from at least 2007 through the present, Anthony Hubbard sexually harassed female tenants of rental properties that he either owned or co-owned with three other defendants — Jeffery Hubbard, Anthony’s brother; Ann Hubbard, his mother; and Pay Up LLC. Anthony Hubbard acted as an agent for his three co-defendants while engaging in many of the various acts of harassment alleged in the complaint. The United States’ complaint alleges that Anthony Hubbard engaged in severe and pervasive sexual harassment that included making unwelcome sexual advances and comments and sending sexual text messages, videos, and photos to female tenants; offering to grant benefits — such as reducing security deposits, rent amounts, and waiving late fees — in exchange for sex or sexual acts; refusing to provide maintenance services or taking other adverse housing actions such as eviction against female tenants who objected to or refused his sexual advances; entering the homes of female tenants without their consent, and expressing a preference for renting to single female tenants.
In October 2017, the Justice Department launched an initiative to combat sexual harassment in housing. In April 2018, the Department announced the nationwide rollout of the initiative, including three major components: an outreach toolkit to leverage the Department’s nationwide network of U.S. Attorney’s Offices, a public awareness campaign, including the release of a national Public Service Announcement, and a new joint Task Force with HUD to combat sexual harassment in housing.
The lawsuit seeks monetary damages to compensate the victims, civil penalties, and a court order barring future discrimination.
Individuals who believe that they have information that is relevant to this case should contact the Department of Justice at 1-833-938-1375 or by email at [email protected]. Persons who have information about sexual harassment in other housing can contact the Justice Department’s Sexual Harassment in Housing Initiative by calling 1-844-380-6178, or through email at [email protected].
More information about the Justice Department’s Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt.
Individual Wanted for Capital Murder in Alabama Sentenced to Two Years in Federal Prison for Aggravated Identity TheftRead the Press Release
SAN JUAN, Puerto Rico – On December 20, 2019, United States District Court Chief Judge Gustavo A. Gelpí sentenced David Anthony Pike to two years in federal prison for aggravated identity theft, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. Pike is wanted for capital murder in the state of Alabama.
On January 30, 2019, a federal grand jury in the District of Puerto Rico returned an indictment against David Anthony Pike who was living under the name of Stephen Williamson Varner, charging Pike with willfully and knowingly making false statements in a U.S. Passport Renewal Application, mail fraud, misuse of social security number, aggravated identity theft, and false statement of representation made to a department or agency of the United States. On September 12, 2019, Pike plead guilty to the aggravated identity theft charge, which requires a mandatory sentence of two years in prison.
According to the charging documents, on December 7, 2018, Pike executed a U.S. Passport Renewal Application under the name Stephen Williamson Varner. Due to inconsistencies and fraud indicators in the passport renewal form, including a finding of a death record for a Stephen Williamson Varner, born and deceased at the early age of 22 months in the State of Alabama; the State Department’s Bureau of Consular Affairs referred the suspicious application to the Diplomatic Security Service (DSS) for investigation. During the course of the investigation conducted by DSS, with the assistance of the U.S. Marshals Service, the U.S. Postal Inspection Service, and the U.S. Department of Homeland Security, Office of the Inspector General, agents confirmed that the individual pretending to be Stephen Williamson Varner was in fact David Anthony Pike, a fugitive wanted since 1985 in Chambers County, Alabama, for capital murder charges (a death penalty eligible offense).
“We are pleased at the outcome of this case,” said Norman E. Ramirez-Seda, DSS resident agent in charge in San Juan. “The Diplomatic Security Service values our partnership with the U.S. Attorney’s Office and other law enforcement agencies around the world to prevent and jointly combat U.S. passport and visa fraud. Deterring, detecting, and investigating U.S. passport and visa fraud is not only essential to safeguarding our national security but also in bringing fugitives like Mr. Pike to justice.”
“The teamwork between DSS and the federal law enforcement agencies which collaborated in this investigation, led to the arrest of this dangerous fugitive. We commend the work and dedication of all the agents who turned this passport fraud investigation into the capture of someone who had been running from justice for over 30 years,” said U.S. Attorney Muldrow.
Assistant United States Attorney Vanessa D. Bonano-Rodríguez was in charge of the prosecution of the case.
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Individual Sentenced to Two Consecutive Life Sentences for Carjacking and Kidnapping Resulting in MurderRead the Press Release
SAN JUAN, P.R. –Jorge L. Rodríguez-Santos was sentenced to two consecutive terms of life imprisonment for committing a carjacking that resulted in death, kidnapping resulting in death, and using a firearm during a crime of violence, announced United States Attorney W. Stephen Muldrow. On May 10, 2019, Rodríguez-Santos was found guilty of all counts after a jury trial. United States District Court Judge Francisco A. Besosa presided over the trial. The FBI was in charge of the investigation.
On April 26, 2018, a federal grand jury returned a three-count indictment against Jorge L. Rodríguez-Santos, a.k.a. “Macho.” In May of 2019, during the trial, the government presented evidence proving that on October 10, 2015, in Ponce, Puerto Rico, Rodríguez-Santos, aiding and abetting others, while carrying a firearm, carjacked, kidnapped, and murdered María L. Mayol-Rivera in violation of Title 18, United States Code, Sections 2, 924(j)(1), 1201(a)(1), and 2119(3).
The defendant, along with other uncharged individuals, kidnapped Mayol-Rivera and using the vehicle she was driving, a white Mitsubishi Lancer, took her to a secluded area. There, they shot and killed Mayol-Rivera. They then burned her body and the Lancer.
“This was a senseless murder. The defendant planned and carried out the carjacking of a defenseless victim which resulted in her murder,” said US Attorney Muldrow. “We will continue our efforts to hold violent offenders accountable to the fullest extent of the law.”
“We are proud to be part of this outcome. Though nothing can bring the victim back, this is a win for justice. There is one less violent criminal on the streets of Puerto Rico, thanks to the fine work done by investigating Agents and by the AUSA’s in charge of prosecution,” said Douglas A. Leff, Special Agent in Charge of the FBI, San Juan Field Office.
The case was prosecuted by Assistant United States Attorneys Jenifer Y. Hernández-Vega and Jonathan L. Gottfried.
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Former Deputy Director of Alaska Dept. of Juvenile Justice Sentenced for Possession of Child PornographyRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that Dennis Weston, 55, of Anchorage, was sentenced today by U.S. District Judge Sharon L. Gleason to serve four years in federal prison, followed by 10 years supervised release, on one count of sexual exploitation of a child – possession of child pornography. Weston pleaded guilty as charged in October 2019.
According to court documents, in April 2017, Weston responded to an online advertisement and began a year-long dialogue with an undercover FBI agent regarding the exploitation of the fictional child named “Becky” that was referenced in the post, among other child exploitation topics. Weston communicated with the undercover agent using his cell phone, and called himself “John.” The investigation revealed that “John” was actually Weston, who at that time was working as the Deputy Director of the State of Alaska Department of Juvenile Justice, and in that capacity, served as the superintendent of McLaughlin Youth Center.
During a search of Weston’s residence, a laptop was seized that revealed 22 images depicting child sexual exploitation, and evidence that Weston had accessed the so-called “dark web” by using a Tor browser to search for images of child exploitation. Of the 22 images depicting a minor engaging in sexually explicit conduct recovered from Weston’s computer, ten of the images featured children under the age of 12.
At the sentencing hearing, Judge Gleason noted that Mr. Weston had abused the trust of the community, and that the sentence was intended to convey the fact that “all of us in this society are accountable to the law.”
The Federal Bureau of Investigation (FBI) conducted the investigation, with assistance from the Anchorage Police Department and State of Alaska Department of Juvenile Justice, leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Adam Alexander.
This case is being brought as part of Project Safe Childhood. In May 2006, DOJ launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood combines federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Former CEO and Former Employee of Broker-Dealer Charged with Falsifying Books and Records, Submitting False Reports to the Securities and Exchange Commission, and Making False Statements to SEC StaffRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Philip R. Bartlett, Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), announced that ALAN SEIDEL and BENJAMIN MEKAWAY were charged this morning with falsifying the books and records of Seidel & Co., LLC (“Seidel & Co.” or the “Firm”), a broker-dealer they controlled, submitting false reports to the United States Securities and Exchange Commission (“SEC”) regarding Seidel & Co.’s net capital, and making false statements to SEC staff. As alleged, in late 2016, SEIDEL, Seidel & Co.’s chief executive officer, and MEKAWAY, a Seidel & Co. employee, falsified the financial records of Seidel & Co. to obscure the fact that Seidel & Co.’s net capital fell below the threshold mandated by SEC regulations, submitted reports to the SEC containing false representations regarding Seidel & Co.’s financial condition, and lied to SEC staff members who made inquiries about Seidel & Co.’s net capital. SEIDEL and MEKAWAY will be presented today before U.S. Magistrate Judge Stewart D. Aaron.
U.S. Attorney Geoffrey S. Berman said: “In order to protect investors and our markets, the SEC must be able to rely on the accuracy of the books and records and regulatory filings of the firms it oversees. By allegedly lying to the SEC about Seidel & Co.’s financial condition, and then attempting to cover it up, Alan Seidel and Benjamin Mekaway threatened to undermine the SEC’s vital mission.”
USPIS Inspector-in-Charge Philip R. Bartlett said: “As alleged, these individuals, being fully aware of the financial status of their firm, chose to lie to the SEC by cooking their books to reflect a healthier financial condition. The investing public relies on the information provided by firms to make sound financial decisions. Shame on these two for allegedly falsifying their records and then trying to hide it from regulators. Criminal acts of the sort alleged here will always be uncovered by law enforcement, ensuring that individuals who break the law will be brought to justice.”
According to the Complaint[1] filed today in Manhattan federal court:
At all relevant times, SEIDEL was the CEO of Seidel & Co., a Manhattan-based inter-dealer broker registered with the SEC. MEKAWAY was a Seidel & Co. employee. As an inter-dealer broker, Seidel & Co. acted primarily as an intermediary between institutional broker-dealers trading bonds of various types.
SEC regulations required Seidel & Co. to maintain net capital reserves of the greater of $100,000 or six and two-thirds percent of its aggregate indebtedness. If Seidel & Co.’s net capital fell below the required threshold, the Firm was required to notify the SEC of that fact the same day. Once a broker-dealer falls out of its net capital requirement, it becomes subject to the suspension or revocation of its registration.
In order to ensure, among other things, that a broker-dealer maintains adequate net capital, SEC regulations require broker-dealers like Seidel & Co. to maintain books and records reflecting each expense incurred relating to their business and any corresponding liability. Seidel & Co. was also required to file monthly reports with the SEC summarizing information concerning its financial and operational status, including its current net capital position.
Beginning at least in or about late-2016, SEIDEL and MEKAWAY caused Seidel & Co. to maintain inaccurate books and records regarding its net capital position and to submit false reports to the SEC regarding Seidel & Co.’s net capital position. In particular, in monthly reports filed with the SEC reflecting Seidel & Co.’s financial position for the months of October 2016 and November 2016, SEIDEL and MEKAWAY caused Seidel & Co. to falsely represent that it had the requisite net capital to meet its regulatory requirements for those months. In fact, as SEIDEL and MEKAWAY well knew, the net capital of Seidel & Co. fell far below the requisite amount in both months. Specifically, in its filings for month-end October 2016, Seidel & Co. fraudulently represented that its net capital exceeded the minimum amount by: (i) failing to account for a debt of approximately $104,000 that the firm owed to its landlord, and (ii) falsely inflating the balance of a Firm brokerage account, for which MEKAWAY submitted a forged bank statement to the external financial operations entity the Firm engaged to prepare and submit reports to the SEC. Subsequently, in order to falsely represent that Seidel & Co. met its capital requirements in its filing for November 2016, Seidel & Co. falsely recorded as a capital contribution a $1 million loan that should have been recorded as a liability.
When, in December 2016, the SEC began to examine Seidel & Co.’s true net capital position, SEIDEL made false statements to the SEC’s exam staff regarding the $1 million loan. SEIDEL initially claimed on multiple occasions that the loan was a capital investment. When the SEC sought verification of this assertion, SEIDEL acknowledged that the money was in fact a loan but claimed, falsely, that he believed it might be converted to a capital investment.
Subsequently, in or about August 2018, MEKAWAY sought to obstruct an investigation by the SEC’s Division of Enforcement into the misconduct at Seidel & Co. by failing to produce relevant documents and emails in response to a subpoena for records and falsely denying that he was in possession of Seidel & Co. records.
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ALAN SEIDEL, 73, of Long Beach, New York, and BENJAMIN MEKAWAY, 37, of Hazlet, New Jersey, were charged in the Complaint with one count of conspiracy, one count of falsifying required books and records of a broker-dealer, and one count of falsifying records in a federal investigation. SEIDEL and MEKWAWY are also each charged with one count of making false statements to the SEC. The conspiracy charge and the false statements charges each carry a maximum prison term of five years. The falsification of records charges each carry a maximum prison term of 20 years.
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 work of the investigative work of USPIS. Mr. Berman also thanked the SEC, which brought a separate civil action.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Scott Hartman is in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the descriptions of the Complaint constitute only allegations, and every fact described should be treated as an allegation.
Former Banker Sentenced for Fraudulent Loan SchemeRead the Press Release
Memphis, TN - A former loan officer at Trustmark Bank has been sentenced to serve 18 months in federal prison in connection with a fraudulent loan scheme. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentence today.
Robert A. Whartenby, age 58 of Memphis, pleaded guilty in September to a one-count criminal information which charged him with bank fraud. According to the information, Whartenby, a former loan officer at Trustmark’s main Memphis office, defrauded Trustmark of almost $400,000 between May 2017 and June 2018. Whartenby submitted false paperwork in support of loans to Memphis Designs Group, LLC and Windridge Investments, fictitious companies he had created. The loan proceeds were then disbursed to accounts at Bank of America, which Whartenby had opened in the names of the fictitious entities.
On December 20, 2019, U.S. District Court Judge Sheryl H. Lipman sentenced Whartenby to 18 months in federal prison. He was also ordered to pay restitution in the amount of $351,927.04 and to serve a period of two years supervision under the United States Probation Office following his release from custody.
U.S. Attorney D. Michael Dunavant said, "The financial fraud committed by this defendant is disturbing. The abuse of his position of trust and authority as a bank loan officer for his own personal gain had a significant negative impact on the shareholders, employees and customers of Trustmark Bank. The U.S. Attorney’s Office places a high priority on protecting the security and integrity of transactions, deposits and assets of financial institutions, and this case demonstrates that commitment."
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Carroll L. André III prosecuted this case on behalf of the government.
Former Baltimore Delegate Facing Federal Honest Services Wire Fraud and Bribery Charges for Official Actions Allegedly Taken on Legislation Related to Medical Marijuana, Opioid Therapy Clinics, and Liquor LicensesRead the Press Release
Baltimore Maryland – A federal criminal information was unsealed today charging former Maryland State Delegate Cheryl Diane Glenn, age 68, of Baltimore, Maryland, with federal honest services wire fraud and bribery charges. The information was filed on July 23, 2019, and unsealed today. Glenn’s initial appearance and arraignment are scheduled for January 22, 2020, at 2:30 p.m. in U.S. District Court in Baltimore.
The federal charges were announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
“We expect our elected officials to put the interests of the public above their own. We do not expect them to sell their office to the highest bidder,” said U.S. Attorney Robert K. Hur. “The U.S. Attorney’s Office will hold accountable those who betray the public trust for their own greed.”
According to the criminal information, until her resignation on December 18, 2019, Glenn was a Maryland State Delegate representing District 45, which covered portions of Baltimore. During her tenure, Glenn served as the Chair of the Banking, Consumer Protection, and Commercial Law Subcommittee of the Economic Matters Committee; the Vice Chair of the Rules and Executive Nominations Committee; and the Chair of the Baltimore City Delegation, among other roles.
The criminal information alleges that from at least March 4, 2018 through February 11, 2019, Glenn defrauded the citizens of Maryland of the right to her honest services by soliciting and accepting bribes in exchange for her official actions. Specifically, the information alleges that Glenn accepted $33,750 in bribes from an associate in exchange for voting in favor of a bill to increase the number of medical marijuana grower and processing licenses that were available to an out-of-state company; promising to lead the effort to change the law in order to provide a preference for Maryland residency to in-state medical marijuana license applicants; introducing legislation that decreased the number of years of experience required to be a medical director of an opioid maintenance therapy clinic; and introducing legislation that created a class B alcohol and liquor license in District 45.
As detailed in the criminal information, after a meeting on March 5, 2018 with an associate and two businesspersons, Glenn agreed to use her position as a state legislator to vote for a bill which could favor Company 1 in its pursuit of a medical marijuana license, in exchange for $3,000 in cash, which would be used to pay an outstanding tax bill on her residence. Glenn subsequently voted for the bill after its Third Reading on March 8, 2018, and on April 7, 2018, after amendments from the Senate. The bill passed and on April 20, 2018, the associate provided Glenn with $3,000 in cash during a meeting at a restaurant in Baltimore County.
According to the information, on June 7, 2018, Glenn and her associate met with another businessperson at a restaurant in Baltimore to discuss medical marijuana licenses. During the conversation, Glenn allegedly told the businessperson that people had asked her how a medical marijuana company had been awarded a medical marijuana growing license without having any high-priced lobbyists. Glenn allegedly responded, “…they know God and Cheryl Glenn.” A few weeks later, Glenn followed up with the associate to see if the businessperson was “lookin’ for [Glenn] to help him or something?” The associate confirmed that the businessperson did want Glenn’s help and Glenn allegedly asked “…is he going to be makin’ a donation or something?” On August 10, 2018, the associate told Glenn that the businessperson had offered the associate $10,000 to get Maryland law changed so that local businesses would be given priority for medical marijuana licenses. The associate offered to split the $10,000 with Glenn, who agreed to introduce legislation to get the law changed in exchange for a payment of $5,000. The information alleges that in order to get the businessperson to make the $10,000 payment, Glenn subsequently sent the associate an e-mail pledging to take the lead in the effort to get the law changed so that Maryland residents received a preference for medical marijuana licenses. On August 23, 2018, the associate allegedly gave Glenn $5,000 in cash during a meeting at a Baltimore restaurant.
The information further alleges that on October 18, 2018, Glenn pre-filed legislation to reduce the required experience for medical directors at opioid maintenance therapy clinics in order to receive another $5,000 payment from the businessperson. The payment was provided on October 22, 2018, and Glenn subsequently introduced the bill on January 9, 2019. Further, Glenn allegedly agreed to introduce legislation to obtain a liquor license for a restaurant that the businessperson wanted to open in Glenn’s district, in exchange for $20,000, with the initial payment of $5,000 to be made up front and the remaining $15,000 payment when the legislation was introduced. According to the information, Glenn received the $5,000 payment on December 10, 2018. On January 28, 2019, Glenn introduced the bill to obtain the liquor license and on February 11, 2019, allegedly received a bribe payment of $15,000.
Glenn allegedly took steps to conceal her illegal activities, including: agreeing not to deposit bribe payments in her bank account; agreeing to meet in person to discuss the details of bribes rather than discussing them over the phone; and creating a false loan note for the $15,000 bribe payment, falsely stating that the money was a gift and was in no way connected to her position as a State Delegate. Further, the information alleges that on at least two occasions, Glenn texted an associate who was providing the bribe payments on behalf of the businesses and falsely advised the associate that the bribe payments were short a total of $750, which the associate subsequently provided to Glenn.
If convicted, Glenn faces a maximum sentence of 20 years in federal prison for honest services wire fraud and five years in federal prison for the bribery charge. 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.
A criminal information is not a finding of guilt. An individual charged by criminal information is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Derek E. Hines and Leo J. Wise, who are prosecuting the case.
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Fayette County Man Sentenced to 57 Months for Illegal Firearm Possession While Fleeing from PoliceRead the Press Release
LEXINGTON, Ky. –A Lexington man, Marcellis Means, 24, was sentenced Friday to 57 months in federal prison, by Chief U.S. District Judge Danny C. Reeves, for one count of being a convicted felon in possession of a firearm.
According to Means’ guilty plea agreement, on July 10, an officer made contact with him and another occupant of a parked vehicle, outside of a business near Patchen Drive in Lexington. Means admitted that, when the officer made contact, he quickly exited the vehicle and began to flee on foot. During the foot pursuit, Means removed a firearm from his waistband, resulting in the officer discharging his firearm. Means was apprehended by law enforcement shortly thereafter, and then admitted he was attempting to get rid of the firearm during the pursuit. Officers were able to locate the firearm discarded by Means. The firearm was found loaded and chambered with ammunition, and confirmed to be stolen. Means was a convicted felon, having previously been convicted of Assault Second Degree in 2015, and was prohibited from possessing the firearm.
Under federal law, Means must serve 85 percent of his sentence. Upon completion of his imprisonment, he will be under the supervision of the United States Probation Office for a period of three years.
The investigation was conducted by the ATF and the Lexington Police Department, in conjunction with the Kentucky State Police.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Tommy Estevan, Acting Special Agent in Charge, ATF, Louisville Field Division; Lawrence Weathers, Chief of Police, Lexington Police Department; and Chad White, Deputy Commissioner, Kentucky State Police, jointly made the announcement.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The PSN program was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Father and Sister of Inmate Plead Guilty to Federal Racketeering Charge Related to Maryland Correctional Institution JessupRead the Press Release
Greenbelt, Maryland – On December 19, 2019, Ashley Alston, age 28, of Baltimore pleaded guilty to a federal racketeering charge and on December 20, 2019, her father Aldon Alston, age 55 also of Baltimore, pleaded guilty to the same charge, for participating in a scheme to smuggle contraband into the Maryland Correctional Institution Jessup (MCIJ), including narcotics, unauthorized flash drives, tobacco, and cell phones. Ashley is the sister and Aldon is the father of MCIJ inmate Corey Alston, a/k/a “C,” age 29, who pleaded guilty on September 18, 2019, to the same charge.
The guilty pleas were 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 L. Green, of the Maryland Department of Public Safety and Correctional Services.
According to court documents, MCIJ was a medium-security prison in Anne Arundel County, Maryland, that housed approximately 1,100 male inmates, with 262 custody staff or correctional officers (COs) and 52 non-custody staff, including case management, medical, and administrative staff.
According to their plea agreements, Corey Alston recruited Ashley and Aldon Alston to obtain and package contraband, meet with correctional officers and employees to provide contraband and bribe payments, and manage the proceeds of illegal contraband sales for Corey Alston. At Corey Alston’s direction, Ashley and Aldon met with co-conspirator facilitators, including Tyirisha Johnson, to receive contraband as well as bribe payments, which they provided to Correctional Officer Janel Griffin and other corrupt prison employees to smuggle into the facility in exchange for bribes. Recorded jail calls between Corey Alston, his sister and his father confirm that beginning in April and July 2017, respectively and continuing until August 14, 2017, Ashley and Aldon Alston met with Johnson or another facilitator, as well as with corrupt prison employees, to obtain contraband and proceeds of the sales and to provide bribe payments. The contraband included Suboxone, Percocet, Ecstasy, K2, and tobacco, which they obtained and delivered to be smuggled into MCIJ.
Inmate Corey Alston admitted that he was a leader in the racketeering conspiracy.
Ashley and Aldon Alston each face a maximum sentence of 20 years in prison. U.S. District Judge Paula Xinis has scheduled sentencing for Aldon Alston on March 24, 2020, and for Ashley Alston on March 26, 2020, both at 4:00 p.m. Tyirisha Johnson, age 23, of Baltimore, pleaded guilty to her role in the conspiracy on July 23, 2019. No sentencing date has been set for Johnson or Corey Alston.
This case arose from the efforts of the Maryland Prison Task Force, coordinated by the U.S. Attorney’s Office and comprised of local, state, and federal stakeholders that meet regularly to share information and generate recommendations to reform prison procedures and attack the gang problem that has plagued Maryland in recent years. The work of the Task Force previously resulted in the federal convictions of more than 80 defendants, including 16 correctional officers, at the Eastern Correctional Institution, and 40 defendants, including 24 correctional officers, at the Baltimore City Detention Center.
United States Attorney Robert K. Hur commended the FBI and the Department of Public Safety and Correctional Services for their work in the investigation. The U.S. Attorney expressed appreciation to the Department of Public Safety and Correctional Services, whose staff initiated the MCIJ investigation and have been full partners in this investigation. Mr. Hur thanked Assistant U.S. Attorneys Lauren E. Perry and Sean R. Delaney, who are prosecuting this case.
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Des Moines Woman Sentenced to 10 Years in Prison for Possessing a Firearm as a Felon and Drug UserRead the Press Release
DES MOINES, Iowa – On December 20, 2019, Christina Louise Stein, age 34, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger for Felon and Unlawful User of a Controlled Substance in Possession of a Firearm. Stein was sentenced to 120 months imprisonment, the statutory maximum, to be followed by a three-year term of supervised release.
Stein pleaded guilty to the offense on August 14, 2019. At sentencing, the Court found on April 7, 2019, Stein was stopped by an Iowa State Patrol Trooper after she was driving the wrong way on a one-way street in downtown Des Moines. While the Trooper was conducting the traffic stop, Stein reversed her vehicle to escape, nearly hitting the Trooper. Stein then led the Trooper on a high-speed chase through the streets of downtown Des Moines, nearly striking multiple other vehicles. She reached speeds of between approximately 60 and 75 miles per hour. Stein eventually crashed her vehicle in a parking lot at Principal Park. A loaded revolver was found at her feet in the vehicle. At the time, Stein was on parole for three separate Iowa convictions.
The case was investigated by the Iowa Division of Narcotics Enforcement, Iowa State Patrol, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Cedar Rapids Woman Sentenced to Almost a Decade in Federal Prison for Selling MethRead the Press Release
Dana Lee Clatt, age 38, from Cedar Rapids, Iowa, was sentenced to nearly a decade in federal prison on December 20, 2019, for distributing methamphetamine.
After law enforcement searched her home, Clatt admitted she received over five kilograms of “ice” methamphetamine from her sources for her to further distribute. In a subsequent plea agreement, Clatt admitted selling methamphetamine four times in Cedar Rapids in February 2017.
Clatt was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Clatt was sentenced to 117 months and 26 days imprisonment. She must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system. Clatt is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of Drug Enforcement Administration (DEA) Task Force consisting of the DEA; Bureau of Alcohol, Tobacco, and Firearms, the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; and the Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/.
The case file number is 1:19-cr-00008-CJW-MAR.
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Beltsville Cocaine Dealer Sentenced to 11 Years in Federal PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Patrick Teon Robinson, age 27, of Beltsville, Maryland, to 11 years in prison, followed by three years of supervised release for conspiring to distribute and possess with intent to distribute cocaine and for possession of a firearm with an obliterated serial number. The sentence was imposed on December 20, 2019.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jesse R. Fong of the Drug Enforcement Administration - Washington Field Division; Chief Marcus Jones of the Montgomery County Police Department; and Chief Peter Newsham of the Metropolitan Police Department.
United States Attorney Robert K. Hur stated, “We are committed to working with our law enforcement partners to get guns out of the hands of drug dealers and off of our streets, in order to reduce violent crime in our neighborhoods. Patrick Robinson possessed a firearm with an obliterated serial number, so that it could not be traced. Now, he faces 11 years in federal prison, where there is no parole—ever. Please, put down the guns and save a life—maybe even your own.”
According to Robinson’s plea agreement, from in or about February 2017 through in or about February 2018, Robinson conspired with Francis Conteh, a/k/a “Luck,” a/k/a “Lucky” and others to distribute and possess with intent to distribute cocaine.
During the course of this conspiracy, co-defendant Conteh distributed cocaine to Robinson for resale to customers in Washington, D.C. and Maryland. The quantity of cocaine was equivalent to at least 50 grams but less than 100 grams.
On February 15, 2018, Robinson parked at the Silver Spring residence of an associate of Conteh and after approximately five minutes exited the residence carrying an olive green tote bag that appeared to be weighed down by its contents. Upon departing the residence, Robinson ran multiple stop signs and committed several speeding offenses. A Montgomery County police officer attempted to pull Robinson over, however Robinson fled to a nearby apartment complex. Robinson then exited his vehicle and retrieved the tote bag. While being pursed, Robinson dropped the tote bag, which was recovered by law enforcement and Robinson was subsequently arrested.
According to Robinson’s plea agreement, a black and silver 9mm rifle was recovered from the tote. The butt stock of the firearm was sawed off, and the serial number was obliterated.
Francis Conteh, age 37, of Washington, D.C. previously pleaded guilty to conspiracy to distribute and possess with intent to distribute powder and crack cocaine and was sentenced by Judge Xinis to 45 months in federal prison. To date, this DEA-led investigation has resulted in 10 convictions for narcotics trafficking and/or illegal possession of firearms.
United States Attorney Robert K. Hur commended the DEA, the Montgomery County Police Department, and the Metropolitan Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Timothy F. Hagan, who is prosecuting this Organized Crime Drug Enforcement Task Force case.
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Aurora Felon Pleads Guilty to Illegally Possessing 14 Firearms Including Two Assault RiflesRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced today that Jeffrey Mons Olson, age 49, of Aurora, Colorado, pleaded guilty today before U.S. District Court Judge Raymond P. Moore to being a felon in possession of a firearm. Olson appeared at the hearing in custody and was remanded at its conclusion. He is scheduled to be sentenced by Judge Moore on March 19, 2020.
According to the stipulated facts contained in the plea agreement, on March 28, 2019, the Colorado Department of Adult Parole conducted surveillance on Olson. During the surveillance, parole officers observed the defendant at a storage locker in Aurora. They then followed him home. Once at home, parole officers searched Olson’s Dodge Ram truck. They located a loaded Glock between the driver’s seat and the center console. Also discovered behind the driver’s seat was a black duffle bag with four additional firearms. Four of the five firearms recovered in the truck were loaded and previously reported stolen.
On March 29, 2019, investigators with the Denver Police Department and Homeland Security Investigations (HSI) went to the storage locker in Aurora, which had been rented by the defendant’s girlfriend. Law enforcement obtained and executed a search warrant at the locker. Inside the storage unit agents and officers found and seized nine additional firearms, including two semi-automatic rifles and seven handguns. Four of these firearms were loaded. In addition to the weapons, assorted ammunition of various calibers were seized. Prior to possessing the firearms and ammunition, Olson had been previously convicted of at least one felony.
“A felon carrying loaded firearms is a danger to the community,” said U.S. Attorney Jason Dunn. “Thanks to the hard work of this office and local and federal law enforcement, he was arrested, has admitted to his crime, and will face his punishment.”
Olson was indicted by a federal grand jury in Denver on September 5, 2019. He pleaded guilty today, December 23, 2019. The statutory maximum penalty for being a felon in possession of a firearm is not more than 10 years in federal prison, and up to a $250,000 fine. This case was investigated by HSI, the Colorado Department of Adult Parole and the Denver Police Department. The defendant is being prosecuted by Assistant U.S. Attorney Conor Flanigan.
Attorney General William P. Barr Announces Launch of Operation Relentless PursuitRead the Press Release
WHEELING, WEST VIRGINIA – U.S. Attorney Bill Powell is applauding the announcement made by Attorney General William P. Barr last week regarding the launch of “Operation Relentless Pursuit,” an initiative aimed at combating violent crime in seven of America’s most violent cities through a surge in federal resources.
Attorney General Barr pledged to intensify federal law enforcement resources into Albuquerque, Baltimore, Cleveland, Detroit, Kansas City, Memphis, and Milwaukee – seven American cities with violent crime levels several times the national average.
“Many of the violent offenders targeted by this initiative are also bringing that violence into the Northern District of West Virginia, pedaling their illegal drugs and firearms. Combatting violent crime is a continuing top priority in my district, as it is the Attorney General’s top priority across the country,” said Powell.
The operation will involve increasing the number of federal law enforcement officers to the selected cities, as well as bulking up federal task forces through collaborative efforts with state and local law enforcement partners. The surge in federal agents will be complemented by a financial commitment of up to $71 million in federal grant funding that can be used to hire new officers, pay overtime and benefits, finance federally deputized task force officers, and provide mission-critical equipment and technology.
Allentown Man Sentenced to 55 Months’ Imprisonment for Drug TraffickingRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that on December 19, 2019, Malcom Wilfong, age 28, of Allentown, Pennsylvania, was sentenced by U.S. District Court Judge Robert D. Mariani to 55 months’ imprisonment for participating in a methamphetamine trafficking conspiracy that operated in Schuylkill and Berks Counties.
According to United States Attorney David J. Freed, Wilfong previously pleaded guilty to conspiracy to distribute more than 500 grams of methamphetamine between July 2016 and May 2017.
Wilfong is the fourth defendant connected to the methamphetamine ring to be sentenced in federal court. Anibal Rodriguez, the leader of the drug conspiracy, was previously sentenced to 20 years’ imprisonment. Ernest Schaeffer received a 15-year prison sentence. David Castro was sentenced to 57 months’ imprisonment.
The matter was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and the Shenandoah Police Department. Assistant U.S. Attorney Francis P. Sempa 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.
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