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Friday 20 December 2019
Wisconsin Man Sentenced for Tax EvasionRead the Press Release
Matthew D. Krueger, the United States Attorney for the Eastern District, announced that John Miller Ragland (Age 72), who previously resided in Menomonee Falls, Wisconsin, was sentenced in federal court to six months in prison, and ordered to pay $1.4 million in restitution to the IRS. Ragland previously had pleaded guilty to tax evasion, in violation of 26 U.S.C. § 7201.
During the years 2007 through 2013, Ragland operated a number of business ventures in the United States and elsewhere, including Hong Kong, China. Through these business ventures, Ragland received more than $3,000,000 in commissions that he hid in bank accounts in Hong Kong and failed to report on his federal income tax returns. As a result, Ragland underreported and underpaid his federal income taxes by more than $1,000,000.
Prior to his sentencing, Ragland paid the IRS more than $1.4 million, representing all of the taxes he evaded plus interest.
This matter was investigated by agents of the Internal Revenue Service – Criminal Investigations and was prosecuted by Assistant United States Attorney Matthew L. Jacobs.
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West Palm Beach Man Sentenced to Prison for Stealing Dozens of Letters from Residence in Lantana with over $170,000 in Checks InsideRead the Press Release
FORT LAUDERDALE - Marchello Wilbon, 34, of West Palm Beach, Florida was sentenced today to one year and a day in prison, to by followed by two years of supervised release by U.S. District Judge Rodolfo A. Ruiz II, after previously pleading guilty to mail theft (Case No. 19-CR-80119).
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Sean Scheller, Chief of Police for the Town of Lantana, Florida, and Lesley Allison, Acting Inspector in Charge, United States Postal Inspection Service (USPIS), Miami Division, made the announcement.
According to court documents, including the indictment, criminal complaint and factual proffer in the plea agreement, on July 15, 2019, at approximately 8:30 am, a Lantana resident who lives on S.E. Atlantic Drive placed letters containing 39 checks with face value of approximately $171,599 in the mailbox located outside the resident’s home for pick up by the U.S. Postal Service. Wilbon was charged with stealing the mail, containing the checks, from the resident’s mailbox.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the Lantana Police Department, and USPIS. This case was prosecuted by Assistant U.S. Attorney Lauren Jorgensen.
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 at http://pacer.flsd.uscourts.gov.
Washington State Couple Sentenced on Access Device and Firearms ChargesRead the Press Release
United States Attorney Joe Kelly announced that Anthony Hanel, age 30, and Courtney Clark, age 33, formerly of Washington state, were sentenced today in federal court. Hanel was convicted of Illegal Possession of Access Device-Making Equipment and of being a Felon in Possession of a Firearm. Clark was convicted of Illegal Possession of Access Device-Making Equipment. Chief United States District Judge John M. Gerrard sentenced Hanel to 46 months’ imprisonment to be followed by 3 years of supervised release. Chief Judge Gerrard sentenced Clark to 12 months’ and 1 day imprisonment to be followed by 2 years of supervised release. There is no parole in the federal system.
On February 5, 2019, officers with the Omaha Police Department conducted a traffic stop of a Dodge Durango that Hanel and Clark were travelling in. Following the alert of a narcotic detecting canine, a search of the vehicle revealed a credit card embossing machine, 43 counterfeit credit cards, blank cards (commonly referred to as “white plastic”), and 18 cards that were in various stages of production. Officers also found a defaced Sig Sauer 9mm handgun and a .22 caliber 1911 model handgun. Hanel is a convicted felon.
Resident Agent in Charge of the Omaha Division of the United States Secret Service, Paul A. Brandenburg, said, “We thank the members of the Omaha Metro Financial Crimes Task Force (OMFCTF) who worked hard on this case. Credit card manufacturing and fraud is unfortunately a common scheme that effects millions of Americans and costs our economy billions of dollars each year. We at the Secret Service and the OMFCTF are committed to investigate financial crimes, and together with the U.S. Attorney’s office, will prosecute the offenders.”
This case was investigated by the Omaha Police Department, the United States Secret Service, and the Sarpy County Sheriff’s Office.
Virginia Contractor Charged Federally in Maryland for Selling Chinese-Made Body Armor and Related Goods to Federal AgenciesRead the Press Release
Greenbelt, Maryland – A federal criminal complaint has been filed in Maryland charging Arthur Morgan, age 67, of Lorton, Virginia, on a federal wire fraud charge, in connection with federal contracts to provide helmets, body armor, and other goods to military and other federal entities. The criminal complaint was filed on December 16, 2019 and was unsealed at his initial appearance following his arrest on December 17, 2019.
At a detention hearing yesterday in U.S. District Court in Greenbelt, U.S. Magistrate Judge Gina L. Simms ordered that Morgan be released to a third-party custodian on home confinement, with a special condition that he pay a $75,000 bond. He will be detained until a hearing at 3:30 p.m. today to confirm that Morgan has met his conditions of release.
The criminal complaint was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Eric D. Radwick of the General Services Administration (GSA) Office of Inspector General; Special Agent in Charge Ashan Benedict of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Washington Field Division; Special Agent in Charge John A. Salazar, Naval Criminal Investigative Service; and Special Agent in Charge Marc A. Meyer of the U.S. Department of State Office of Inspector General.
According to the affidavit filed in support of the criminal complaint, Morgan is the Chief Executive Officer of Surveillance Equipment Group Inc. (SEG) and its relevant division, SEG Armor. The GSA enters into government-wide contracts with commercial firms to provide supplies and services that are available for use by federal agencies worldwide. All GSA contracts are subject to the Trade Agreements Act, which requires that all products listed on GSA contracts must be manufactured or “substantially transformed,” in a “designated country.” China is not a designated country under the TAA. Any contractor wishing to supply products from China or other non-designated countries must specifically identify all foreign products and state their country of origin. Failure to do so disqualifies the contractor from eligibility for the contract, and a contractor who falsely certifies cannot seek payment from the United States.
The criminal complaint alleges that Morgan falsely certified that the ballistic vests, helmets, riot gear, and other items he offered for sale were from designated countries, specifically, Hong Kong and the United States. The affidavit alleges that Morgan knew that the items were manufactured and purchased from China. From September 2015 to July 2019, the U.S. Navy and U.S. Department of State were two of at least five federal agencies that placed a total of nine orders with SEG for ballistic vests, helmets, or riot gear, valued at approximately $639,921.11.
For example, the U.S. Navy placed an order with SEG for helmets, and Morgan had a series of e-mail communications with a Navy contract specialist in Indian Head, Maryland, concerning SEG’s inability to meet the agreed-upon delivery schedule. The affidavit alleges that in his e-mails, Morgan falsely advised the contract specialist that SEG had a factory in southern Virginia, that the helmets for the order “were in production” there, and that the delays were due to a backorder of materials needed for the helmets. In addition, on the same date that Morgan received a partial payment from the Navy in the amount of $127,069.60, Morgan made a payment to a Chinese company that manufactures the exact same helmet as SEG delivered to the Navy, in the amount of $67,915.
If convicted, Morgan faces a maximum sentence of 20 years in federal prison for wire fraud. 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 complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the GSA OIG, the State Department OIG, the ATF, and the NCIS for their work in the investigation, and recognized the Army Major Procurement Fraud Unit, the Defense Criminal Investigative Service, Homeland Security Investigations, the FBI, the Air Force Office of Special Investigations, and the Coast Guard Investigative Service for their assistance. Mr. Hur thanked Assistant U.S. Attorney Elizabeth Wright, who is prosecuting the case.
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Versailles Man Sentenced to 190 Months for Trafficking Fentanyl and HeroinRead the Press Release
LEXINGTON, Ky. – Damon Bristol Hardy, of Versailles, Kentucky, was sentenced on Friday to 190 months in federal prison, by Chief United States District Judge Danny C. Reeves, for possession with intent to distribute fentanyl and heroin.
In his guilty plea agreement, Hardy admitted that on April 2, 2019, in Woodford County, he possessed and intended to distribute 6.8 grams of a mixture that contained fentanyl and heroin. Hardy also agreed to abandon $587 in cash and various drug paraphernalia seized from him. Hardy admitted that he threw the controlled substances away, as he fled from the police.
Due to his prior criminal history, which included convictions for third-degree assault (police / probation officer) and first-degree trafficking in a controlled substance (heroin), Hardy was subject to an enhanced sentence.
Under federal law, Hardy must serve a minimum of 85 percent of his prison sentence. He will be under the supervision of the United States Probation Office for six years after being released.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Dan Dodds, Acting Special Agent in Charge, DEA Louisville Field Division; and Chief Mike Murray, Versailles Police Department, jointly announced the sentence.
The investigation was directed by the Versailles Police Department and the Drug Enforcement Administration. The United States was represented by Special Assistant U.S. Attorney James T. Chapman.
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United States obtains $3.1 million in judgments against Darien Pharmacy and its pharmacistRead the Press Release
SAVANNAH, GA: A pharmacy and pharmacist owe $3.1 million in civil judgments to resolve claims that they violated the Controlled Substances Act.
The settlement, a result of the first-ever Controlled Substances Act lawsuit filed by the United States against a pharmacy in the history of the Southern District of Georgia, is among substantive results in the ongoing efforts of the U.S. Attorney’s Office for the Southern District of Georgia to fight the prescription opioid crisis.
Darien Pharmacy, located in Darien, Ga., and its former pharmacist-in-charge, Janice Ann Colter, have agreed to judgments totaling $3.1 million to resolve a civil lawsuit alleging they filled thousands of prescriptions that they knew or should have known were not issued for legitimate medical reasons, including prescriptions for extremely high quantities of opioids, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia.
“Our office is serious about combatting the opioid crisis, and will fight for penalties to underline that message when medical professionals and businesses fail to follow the law,” said U.S. Attorney Christine. “Pharmacies have a critical role in preventing drug abuse and diversion.”
The suit alleges that many of the excessive prescriptions filled by Colter and Darien Pharmacy were written by Dr. Frank Bynes, Jr., who was recently convicted in U.S. District Court on multiple counts of Unlawful Dispensation of Controlled Substances and Health Care Fraud. During a two-year period, Darien Pharmacy dispensed more units of controlled substances prescribed by Dr. Bynes than by any other doctor, according to the suit, despite a distance of nearly 100 miles between Dr. Bynes’ practice and the pharmacy, and the existence of numerous other red flags indicating the prescriptions were illegitimate. Inventory audits also showed the pharmacy was unable to account for all the controlled substances coming into the pharmacy, according to the suit.
“The sharp increase in the distribution and consumption of opiates for non-medical reasons continues to be a major concern to the Drug Enforcement Administration (DEA),” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “Consequently, DEA Diversion Investigators will continue to pursue pharmacists and other medical practitioners who engage in unlawful and egregious prescribing practices. This hefty civil fine in the Southern District of Georgia shows that DEA, the entire law enforcement community and the U.S. Attorney’s Office are committed to making sure medical practitioners are abiding by proper prescribing guidelines.”
In addition to the Darien Pharmacy settlement, the U.S. Attorney’s Office also recently reached civil settlements with two other pharmacists and pharmacies in the Southern District for alleged violations of the Controlled Substances Act:
- Liberty Square Pharmacy and its former pharmacist-in-charge, Wilton Clinton “Clint” Meeks, III, of Waynesboro, Ga., agreed to pay $150,000 to settle claims related to their inability to account for tens of thousands of pills including Oxycodone and Soma; and,
- Ludowici Drugs and its pharmacist-in-charge, John S. Townsend, of Ludowici, Ga., agreed to pay $55,000 to settle claims that they failed to keep required records to account for several categories of controlled substances, and unlawfully dispensed controlled substances pursuant to invalid oral and written prescriptions on numerous occasions.
The U.S. Attorney’s Office for the Southern District of Georgia is committed to using all available remedies under the Controlled Substances Act against doctors, pharmacists, and others who break the law. The claims asserted against defendants in a civil suit are allegations only and are not determinations of liability.
These civil cases were investigated by the Drug Enforcement Administration (DEA). The United States was represented in these cases by Assistant U.S. Attorneys Bradford C. Patrick and Jonathan A. Porter.
Ukrainian National Admits Piloting 590-Foot Vessel in San Francisco Bay While IntoxicatedRead the Press Release
SAN FRANCISCO – Vadim Humenyuk pleaded guilty to operating a commercial cargo ship while intoxicated, announced United States Attorney David L. Anderson and U.S. Coast Guard Captain of the Port Marie Byrd. The plea was accepted by U.S. Magistrate Judge Thomas S. Hixon.
In pleading guilty, Humenyuk, 51, of Izmail, Ukraine, admitted that he was intoxicated while serving as the Master, or head officer, of the Rainbow Quest, a Gibraltar-flagged bulk carrier. The 590-foot long Rainbow Quest was in San Francisco Bay and preparing to sail to South Korea when Humenyuk was found to be intoxicated.
“I appreciate the outstanding collaboration from the San Francisco Bar Pilots, Customs and Border Protection, and the U.S. Attorney’s office for ensuring safety on our waters, and protecting the maritime public, property, and environment,” said Captain Byrd. “The Coast Guard and our partners will not tolerate operating a vessel under the influence from any mariner, much less a commercial ship captain preparing to get a large cargo ship underway in San Francisco Bay.”
The investigation began on Tuesday, December 10, 2019, when a San Francisco Bar Pilot contacted Coast Guard Sector San Francisco Vessel Traffic Service personnel reporting that the captain of the Rainbow Quest appeared to be intoxicated. Investigators of the U.S. Coast Guard administered sobriety tests to Humenyuk late on the evening of December 10, 2019, and the early morning of December 11, 2019. After Humenyuk failed the sobriety tests, he was charged with operating a non-recreational vessel under the influence of alcohol, in violation of 46 USC 2302(c), a Class A misdemeanor.
Humenyuk faces a maximum statutory penalty of up to one year of incarceration, an additional year of supervised release, and a fine of up to $100,000. Magistrate Judge Hixson scheduled Humenyuk’s sentencing hearing for January 3, 2019 at 10:00 a.m.
The case is being prosecuted by Special Assistant United States Attorney Alexandra Shepard. This case is being investigated by the United States Coast Guard.
U.S. Attorney’s Office Collects over $15 Million in Civil and Criminal Actions in Fiscal Year 2019Read the Press Release
HARRISBURG - U.S. Attorney David J. Freed announced today that the Middle District of Pennsylvania collected $15,249,331 in criminal and civil actions in Fiscal Year 2019. Of this amount, $2,431,898 was collected in criminal actions and $12,817,433 was collected in civil actions.
Additionally, the Middle District of Pennsylvania worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $1,447,320 in cases pursued jointly by these offices. Of this amount, $13,767 was collected in criminal actions and $1,433,552 was collected in civil actions.
“The United States Attorney’s Office for the Middle District of Pennsylvania is dedicated to the protection of our fellow law-abiding citizens, whether we are battling the scourge of drugs and violent crime or attacking scams designed to defraud government agencies,” said U.S. Attorney Freed. “The diligent efforts of our hard working attorneys and staff have again resulted in our collections far exceeding our office budget. In addition, our successes in the realm of asset forfeiture provide direct benefits to crime victims and strong support of numerous law enforcement initiatives.”
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 Middle District of Pennsylvania, working with partner agencies and divisions, collected $70,977,344 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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U.S. Attorney’s Office Collects More Than $14 Million in Fiscal Year 2019Read the Press Release
OKLAHOMA CITY – The Western District of Oklahoma collected $14,463,175.11 in civil and criminal actions in the fiscal year that ended on September 30, 2019, announced U.S. Attorney Timothy J. Downing. Of this amount, the office collected $9,794,703.57 in civil actions and $4,668,471.54 in criminal actions.
The U.S. Attorneys’ Offices, along with the Department of Justice’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 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 to federal and state victim compensation and victim assistance programs.
"Recovering money for the United States, penalizing wrong-doers, and collecting restitution for crime victims are integral parts of our law enforcement mission," said U.S. Attorney Downing. "In FY2019, we collected nearly twice the amounts we collected in both FY2017 and FY2018. That’s a tribute to the hard work of civil and criminal attorneys, and particularly the hard work of our Financial Litigation Unit."
Highlights of the Western District of Oklahoma’s FY2019 collection efforts include:
- a $4.2 million civil settlement in June 2019 with PAE Applied Technologies, LLC, in a dispute over alleged false claims to the United States Air Force concerning employee wages at Vance Air Force Base;
- a $2.8 million civil settlement in May 2019 with the Oklahoma Heart Hospital, LLC, and the Oklahoma Heart Hospital South, LLC, based on allegations of improper Medicaid billing for cardiovascular stent procedures;
- a $455,000 civil settlement in October 2018 with Olsen Orthopedics, PLLC, over allegations of false billings to Medicare and TRICARE for injectable drugs that were purchased outside the United States and did not have approval from the Food and Drug Administration;
- multiple settlements of claims against health care providers under federal laws concerning record-keeping and registrations involving drugs that qualify as controlled substances, including a June 2019 settlement for $155,000 with Comanche County Memorial Hospital and two doctors concerning testosterone records;
- $818,083 in restitution from former Bank of Union President John Arnold Shelley, whose December 2018 sentence for making a false statement to the FDIC included a restitution order of more than $137 million;
- $493,707.59 in restitution from Joel Matthew Eilerts, who was sentenced in June 2019 for fraud against SandRidge Energy, Inc., where he worked as a senior landman;
- $269,107.79 in restitution in a criminal health care fraud against Lawrence and Eunja Vasquez, who were sentenced in January 2019 for using their company, Mercy Diabetic Supply, Inc., to defraud the Oklahoma Health Care Authority;
- $230,333.37 in restitution from the Estate of Howard Michael Wampler in connection with his 2012 conviction for fraudulently inflating the cost of building projects involving federal low-income housing tax credits; and
- $151,799.02 in restitution from Samuel Okere, who was sentenced in November 2018 for defrauding the Oklahoma Health Care Authority in connection with behavioral counseling.
Additionally, the U.S. Attorney’s Office deposited $1,763,203 into the Department’s Asset Forfeiture Fund in FY 2019. Many forfeited assets are returned to victims of crime. When that is not possible, forfeiture proceeds are deposited into a centralized fund and used to assist crime victims across the nation and for a variety of law enforcement purposes.
To download a photo of U.S. Attorney Downing, click here.
U.S. Attorney’s Office Collects $90,585,906 in Civil and Criminal Actions in Fiscal Year 2019Read the Press Release
DETROIT - U.S. Attorney Matthew Schneider announced today that the Eastern District of Michigan collected $90,585,906 in criminal and civil actions in Fiscal Year 2019. Of this amount, $86,186,604 was collected in criminal actions and $4,399,302 was collected in civil actions.
Additionally, the Eastern District of Michigan worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $5,990,117 in cases pursued jointly by these offices. Of this amount, $38,009.96 was collected in criminal actions and $5,952,107 was collected in civil actions.
“The prosecutors and trial attorneys in our office worked tirelessly every day and these numbers prove it,” stated United States Attorney Matthew Schneider. “Our office recovered over three times the amount of money spent in our annual budget of $29 million. I’m happy to say these funds will be returned to victims and taxpayers.”
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 Eastern District of Michigan, working with partner agencies and divisions, collected $14,168,249 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.
U.S. Attorney’s Office Collects $13,006,363.50 in Civil and Criminal Actions in Fiscal Year 2019Read the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced today that the Eastern District of North Carolina collected $8,527,783.50 in criminal and civil actions in Fiscal Year 2019. Of this amount, $6,362,993.33 was collected in criminal actions and $2,164,790.17 was collected in civil actions.
One notable example of the office’s dogged pursuit of victim restitution is the case against Compassionate Home Care Services, Inc. and two other individual defendants. After a years-long investigation and civil prosecution of false claims submitted to Medicaid, the Court awarded the United States and the State of North Carolina a multimillion-dollar judgment. Because of evidence developed during a thorough financial investigation, the Court restrained significant property early in the case to preserve it for collection. After the judgment issued, the governments used garnishments, executions, and other remedies to collect over $500,000 in short order.
Additionally, the Eastern District of North Carolina worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $134,460.79 in cases pursued jointly by these offices. Of this amount, $15,378.18 was collected in criminal actions and $119,082.61 was collected in civil actions.
“We will use every tool in our arsenal to aggressively collect victim restitution and criminal fines, and recover taxpayer dollars lost to fraud and owed to government agencies,” said Mr. Higdon. “We are proud of the men and women in our office who have worked so hard to ensure justice through their collection efforts. They are to be congratulated for their tremendously successful efforts.”
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 Eastern District of North Carolina, working with partner agencies and divisions, collected $4,478,580 in asset forfeiture actions in FY 2019. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund can be used for a variety of purposes, including to support law enforcement. In certain circumstances, they can also be used to restore funds to crime victims. The Department of Justice, for instance, restored at least 1.8 million in assets forfeited by the United States Attorney’s Office for the Eastern District of North Carolina in Fiscal Year 2019, which assets have been used to compensate the victims of crimes prosecuted by this office.
Mr. Higdon stated: “Asset forfeiture is an important tool in the fight against crime. The forfeiture of assets which facilitate crimes or which are the fruits of the crime deprives the criminals of the means and reasons for their criminal activity. We will continue to aggressively pursue wrongdoers and their illegal assets as well.”
U.S. Attorney's Office Collects $1,228,588.74 in Civil and Criminal Actions in Fiscal Year 2019Read the Press Release
United States Attorney Christina E. Nolan announced today that the District of Vermont collected $1,228,588.74 in criminal and civil actions in Fiscal Year 2019. Of this amount, $574,416.22 was collected in criminal actions and $654,172.52 was collected in civil actions.
The District of Vermont worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $39,001,889.33 in cases pursued jointly by these offices. Of this amount, $18,037.74 was collected in criminal actions and $38,983,851.59 was collected in civil actions.
The U.S. Attorneys’ Offices, along with the Justice 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 Vermont U.S. Attorney’s office, working with partner agencies and divisions, collected $330,182.00 in asset forfeiture actions in FY 2019. Forfeited assets deposited into the Department of Justice Asset Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
“The District of Vermont’s federal prosecutors and Civil Division attorneys work tirelessly to protect our citizens, to recover financial losses they sustain from criminal conduct, and to safeguard precious taxpayer resources,” said U.S. Attorney Nolan. “Their efforts enabled us to achieve justice for victims and recoup a significant amount of taxpayer dollars in Fiscal Year 2019.”
U.s. Attorney’s Office Collects $1,914,673.40 in Civil and Criminal Actions in Fiscal Year 2019Read the Press Release
ALBUQUERQUE, N.M. - U.S. Attorney John C. Anderson announced today that the United States Attorney’s Office for the District of New Mexico collected $1,914,673.40 in criminal and civil actions in Fiscal Year 2019. Of this amount, $1,411,492.49 was collected in criminal actions and $503,180.91 was collected in civil actions.
“One of the most powerful tools in the prosecution of drug, financial, and other crime is the ability to divest criminals of their ill-gotten gains and compensate victims for physical injury and monetary losses,” said U.S. Attorney John C. Anderson. “Collection is also effective in civil litigation to recover government money lost to fraud and penalize other misconduct. These impressive criminal and civil collections in 2018 demonstrate the commitment of the U.S. Attorney’s Office to providing economic justice to the people of New Mexico.”
As one example of the U.S. Attorney’s collection efforts, in Oct. 2018, the District of New Mexico recovered $184,251.79 from a defendant who filed false tax returns for 10 years. 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 for the District of New Mexico, working with partner agencies and divisions, collected $1,349,432 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.
Two St. Thomas Defendants Convicted of Mailing Firearms: Evidence at Trial Reveals Scheme to Transport Numerous Firearms with Obliterated Serial Numbers from Atlanta to St. ThomasRead the Press Release
St. Thomas, USVI – Shawn Tyson was found guilty yesterday of being a felon in possession of ammunition and of mailing firearms after a two-day jury trial in District Court, United States Attorney Gretchen C.F. Shappert announced. After jury selection earlier in the week, Natasha France, Tyson’s sister, who was charged with Tyson, pleaded guilty to two counts of willfully transferring weapons out of state to another unlicensed person, three counts of unlawfully mailing firearms, and three counts of delivering firearms to a common carrier without written notice.
According to trial testimony, on November 10, 2018, Natasha France, was captured on a United States Postal Service (USPS) surveillance video, walking into an Atlanta, Georgia post office and mailing six parcels to her brother Shawn Tyson at the St. Thomas Jet Center. Five of the parcels were subsequently intercepted by U.S. Customs and Border Protection (CBP) officers, when the packages arrived in St. Thomas. Inside of the parcels, CBP officers found gun parts sufficient to assemble eight ATI Omni Maxx pistols, along with three additional lower receivers and other gun components. In total, nine of the eleven gun lower receivers were ATI Omni Maxx Hybrids, which constitute firearms under federal law. The serial numbers on all eleven of the lower receivers were obliterated, in violation of federal law.
After confiscating the gun parcels mailed by defendant France from Atlanta on November 10, 2018, the United States Postal Inspection Service (USPIS) discovered four additional parcels en route from Atlanta to defendant Tyson at the St. Thomas Jet Center. Those parcels were also intercepted by law enforcement. Two of the four parcels were mailed on November 13, 2018, and were addressed from Natasha France to Shawn Tyson, while the other two were addressed from Shawn Tyson to Shawn Tyson. The two parcels mailed on November 13, 2018 contained parts sufficient to assemble two Mini Draco, 7.62 pistols, while the two parcels mailed on November 14, 2018, contained the parts sufficient to assemble three ATI Omni Maxx hybrids, as well as two additional ATI lower receivers. The serial numbers on all seven of the lower receivers contained in the four parcels were obliterated, in violation of federal law. Evidence at trial proved that defendant Tyson paid for the parcels mailed to/from himself on November 14, 2018.
Evidence presented at trial established that between November 2, 2018 and November 9, 2018, defendant France and two associates collectively purchased nine ATI Omni Max Hybrid pistols from various gun stores in the greater Atlanta area. Thereafter, on November 11, 2018, France purchased two additional Mini Draco pistols—the same make, model, and quantity of firearms that she mailed to Tyson on November 13, 2018. On that same date, France, Tyson, and two associates were captured on surveillance video staging their arrival times at Elite Pawn in Conyers, Georgia, where the two associates purchased a total of five ATI Omni Maxx Hybrids.
The trial evidence also established that on December 13, 2018, while executing a search warrant, agents with Homeland Security Investigations (HSI) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) recovered .223 caliber, 9 mm caliber, and .40 caliber ammunition from defendant Tyson’s locked bedroom in St. Thomas.
France’s sentencing hearing is scheduled for April 16, 2020; Tyson’s is scheduled for April 23, 2018. France faces a five-year maximum term of imprisonment on each of the counts of unlawfully transferring firearms and failing to provide written notice to a common carrier, and a maximum term of two years’ imprisonment on each of the counts of unlawfully mailing firearms. Tyson faces a ten-year maximum term of imprisonment on the felon in possession of ammunition charge and a two-year maximum on the unlawful mailing charge. France and Tyson are both facing federal firearms charges in Atlanta, along with others.
This case was investigated by CBP, Homeland Security Investigations (HSI), USPIS, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and was prosecuted by Assistant United States Attorneys Meredith J. Edwards and George Andrew LaTaif-Massucco.
Two Jennings Men Face Federal Prison Time for Methamphetamine and Firearms ChargesRead the Press Release
Eric Lawaun Alexander Sentenced to Six-and-a-Half Years on Methamphetamine and Firearm Charges
LAKE CHARLES, La. – United States Attorney for the Western District of Louisiana David C. Joseph, announced that Eric Lawaun Alexander, 38, of Jennings, Louisiana, was sentenced December 17, 2019, by U.S. District Judge James D. Cain Jr., to six-and-a-half years in prison for possession of methamphetamine with intent to distribute and possession of a firearm and ammunition by a convicted felon. Judge Cain also sentenced Alexander to a three-year term of court supervision after he is released from federal prison. Alexander pleaded guilty to these charges on September 10, 2019.
According to information presented to the court, on December 2, 2018, a Calcasieu Parish Sheriff’s deputy stopped Eric Alexander’s vehicle for a traffic violation. During the stop, Alexander attempted to flee from law enforcement, but was apprehended and consented to a search of his vehicle. Officers found a loaded Glock 21 underneath the driver’s seat and 26.29 grams of methamphetamine in the center console.
Alexander has prior felony convictions in the 31st Judicial District Court in Jennings for possession of Alprazolam, distribution of crack cocaine, and possession of cocaine.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Calcasieu Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Daniel J. McCoy prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Ronnie E. Prudhomme Sentenced to 13+ Years for Federal Drug Charges
LAKE CHARLES, La. – United States Attorney for the Western District of Louisiana David C. Joseph announced that Ronnie E. Prudhomme, 30, of Jennings, Louisiana, was sentenced December 19, 2019, by U.S. District Judge James D. Cain Jr., to 160 months (13 years, 4 months) in prison followed by four years of supervised release for possession of methamphetamine with intent to distribute. Prudhomme pleaded guilty on September 10, 2019.
According to information presented to the court, on January 28, 2019, a Louisiana State Police trooper initiated a traffic stop on Ronnie Prudhomme’s vehicle after observing a traffic violation on I-10. After the traffic stop was initiated, the defendant attempted to flee, which led to a vehicular pursuit and eventual arrest of Prudhomme. During the pursuit, the trooper observed Prudhomme dumping large amounts of a substance out of plastic bags onto the highway. When Prudhomme reached an intersection, he brought his vehicle to a stop after seeing State Police troopers and Calcasieu Parish Sheriff’s Office units positioned along the roadway. During a search of the vehicle, officers found 176.2 grams of pure methamphetamine, 176 grams of Alprazolam, and $110,981 in U.S. currency. Prudhomme was in possession of $3,021 in his pockets, $8,000 inside a leather zipper bag under the driver’s seat, and $99,960 in a leather bag on the rear seat behind the driver’s seat.
Homeland Security Investigations, Louisiana State Police and Calcasieu Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Daniel J. McCoy prosecuted the case.
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Two Former Pharmacists at New England Compounding Center Sentenced in Connection with 2012 Fungal Meningitis OutbreakRead the Press Release
BOSTON – Two former verification pharmacists at New England Compounding Center (NECC) have been sentenced in federal court in Boston for violating the Food, Drug, and Cosmetic Act (FDCA).
Michelle L. Thomas, 35, of Cumberland, R.I., was sentenced today by U.S. District Court Judge Richard G. Stearns to one year of probation. Yesterday, Judge Stearns sentenced Kathy S. Chin, 47, of Canton, to two years of probation. In May 2019, Thomas and Chin were convicted by a federal jury of two and four felony counts, respectively, of dispensing drugs without valid prescriptions with the intent to defraud or mislead government regulators and customers.
NECC, a licensed pharmacy, routinely dispensed drugs in bulk without valid prescriptions. Chin and Thomas served as verification pharmacists, signing off on drug orders prior to shipment to customers. Chin was convicted of approving shipments of drugs for patients with names such as Flash Gordon, Long John, Tony Tiger, Chester Cheeto, Dale Earnhardt, Tom Brokaw, Jon Stewart, Jay Leno, David Letterman, and Dick Van Dyke, among others. Thomas was convicted of approving shipments of drugs for patients with names such as L.L. Bean, Filet O’Fish, Rug Doctor, Squeaky Wheel, Dingo Boney, Coco Puff, and Harry Potter, among others.
Chin and Thomas dispensed these and other bulk orders of prescription drugs with the intent to defraud and mislead state and federal government regulators. Specifically, NECC repeatedly took steps to shield its operations from regulatory oversight by the Food and Drug Administration (FDA) by claiming to be a pharmacy dispensing drugs pursuant to valid, patient-specific prescriptions. The jury heard evidence that the fake prescriptions, along with numerous other bulk drug orders, approved by Chin and Thomas allowed NECC to operate as an unregulated drug manufacturer.
In June 2017, Barry Cadden, the former owner and head pharmacist for NECC, was sentenced to nine years in prison and three years of supervised release after being convicted of racketeering, racketeering conspiracy, mail fraud, and introduction of misbranded drugs into interstate commerce with the intent to defraud and mislead. In January 2018, Glenn Chin, NECC’s former supervisory pharmacist, was sentenced to eight years in prison and two years of supervised release after being convicted of 77 counts. In total, 13 NECC defendants have been convicted of 178 charges.
United States Attorney Andrew E. Lelling; FDA Commissioner Dr. Stephen M. Hahn; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Leigh-Alistair Barzey, Special Agent in Charge of the Defense Criminal Investigative Service, Northeast Field Office; Sean Smith, Special Agent in Charge of the Department of Veterans Affairs Office of Inspector General, Criminal Investigations Division; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division, made the announcement today. Assistant U.S. Attorneys Amanda P.M. Strachan, Chief of Lelling’s Health Care Fraud Unit, and Christopher Looney prosecuted the case.
Two Fayetteville Men Indicted on Felon in Possession of a FirearmRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned indictments charging Miguel marquis hutchinson, age 33, of Fayetteville, with Felon in Possession of a Firearm, Possession of a Firearm in Furtherance of a Drug Trafficking Crime and Possession with Intent to Distribute a Quantity of Marijuana and Jeremy jamar tumbling, age 30, also of Fayetteville, with Felon in Possession of a Firearm.
A Fayetteville Police Officer stopped HUTCHINSON, who has a prior felony conviction for 2nd degree murder. A narcotics K-9 alerted to the presence of narcotics within HUTCHINSON’s vehicle and a search resulted in the discovery of 22.8 grams of marijuana inside the center console, baggies, and a digital scale. Further search revealed a black 9mm Taurus semiautomatic pistol from under the driver’s seat on the right side pinned against the center console.
If convicted, HUTCHINSON would face maximum penalties of 20 years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
TUMBLING, who has a prior felony conviction for possession of a stolen firearm, was a passenger in a vehicle stopped by Fort Bragg Military Police for speeding. Upon approaching the vehicle, the officer smelled a strong odor of marijuana. A vehicle search resulted in the discovery of a Taurus 9 mm pistol on the passenger’s side floorboard. A further search of the vehicle, led to the recovery and seizure of another pistol on the driver’s side floorboard, marijuana, an AK-47 assault rifle in the trunk, and approximately $17,000 in U.S. Currency.
If convicted, TUMBLING would face maximum penalties of 10 years imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
Homeland Security Investigations, the Fort Bragg Provost Marshal’s Office and the Fayetteville Police Department are investigating the cases.
Two Child Predators Sentenced to Federal PrisonRead the Press Release
United States Attorney Erica H. MacDonald today announced two unrelated sentencings under the Project Safe Childhood initiative. Both defendants were sentenced earlier this week in United States District Court.
United States Attorney Erica H. MacDonald said, “We have seen a dramatic uptick in the number of cases involving the sexual abuse of minors. I am committed to using every available resource to combat this disturbing trend. One such resource is the Project Safe Childhood initiative which brings together child protection experts nationwide that are laser focused on bringing these predators to justice.”
MICHAEL CARLOS MITCHELL, 43, was sentenced to 40 years in federal prison for two counts of production of child pornography on December 19, 2019, by United States District Court Judge Wilhelmina M. Wright, in St. Paul. MITCHELL, who pleaded guilty on December 19, 2018, created hundreds of videos and thousands of images of himself sexually abusing a child under the age of 10 years old. This case was investigated by the Bureau of Criminal Apprehension in conjunction with assistance from the Minnetonka, Minnesota, Police Department.
MARTY KEITH LARSON, 33, was sentenced to 25 years in federal prison for production of child pornography and distribution of child pornography. LARSON was sentenced on December 17, 2019, by United States District Court Judge Patrick J. Schiltz, in Minneapolis. LARSON, who pleaded guilty to one count each, on August 29, 2019, created sexual abuse images of a minor under the age of 10 and distributed them using Kik Messenger application. This case was investigated by the Federal Bureau of Investigations with the assistance of the Itasca County, Minnesota, Sheriff’s Office.
The cases are being prosecuted by Assistant U.S. Attorney Manda M. Sertich.
These cases were brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
If you know of any child who may have been a victim of exploitation, please call the National Center for Missing or Exploited Children (NCMEC) at 1-800-THE-LOST (1-800-843-5678) or visit NCMEC’s web site at www.missingkids.com.
Defendant Information:
MICHAEL CARLOS MITCHELL, 43
Minnetonka, Minn.
Convicted:
- Production of Child Pornography, 2 counts
Sentenced:
- 40 years in prison
- 25 years supervised release
MARTY KEITH LARSON, 33
Keewatin, Minn.
Convicted:
- Production of Child Pornography, 1 count
- Distribution of Child Pornography, 1 count
Sentenced:
- 25 years in prison
- 10 years supervised release
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Tulsa Man Sentenced for Conspiring to Launder Money in Methamphetamine Trafficking OperationRead the Press Release
A Tulsa man was sentenced Friday in U.S. District Court for his involvement in methamphetamine trafficking and money laundering operations at Casa Herrera, a local money remitter business, announced U.S. Attorney Trent Shores.
U.S. District Judge Gregory K. Frizzell sentenced Cesar Ordaz-Miranda, 45, of Tulsa, to 84 months in federal prison to be followed by three years of supervised release for money laundering conspiracy. The defendant pleaded guilty to the money laundering conspiracy on Aug. 21, 2019.
“Methamphetamine continues to flow over our porous southern border and into Oklahoma. The drug proceeds return to Mexico, but the addicts remain here,” said U.S. Attorney Trent Shores. “Money laundering fuels drug trafficking operations and facilitates the distribution of drugs in northern Oklahoma. One way to stop the flow of methamphetamine into Oklahoma is to dismantle the money laundering operations that facilitate it. Whether you are a drug mule or a money launderer, the Drug Enforcement Administration, Federal Bureau of Investigation, Homeland Security Investigations, Tulsa Police Department, and U.S. Attorney’s Office are on the job. We will dismantle your illegal business and send you prison. Cesar Ordaz-Miranda learned that the hard way.”
Cesar Ordaz-Miranda was indicted with 21 other defendants in 2018. Also named in the indictment was Felix Ordaz-Miranda, the defendant’s brother. Felix Ordaz-Miranda was previously convicted in 2006 for drug trafficking. Subsequent to his prosecution, Felix was removed from the United States but later resumed his role in the drug trafficking organization in Mexico.
The highly efficient drug trafficking organization was able to transport 50 kilograms of high grade methamphetamine from Mexico into the Northern District of Oklahoma. The organization sent the methamphetamine in shipments of 15 kilograms each. Felix recruited Cesar to take part in the money laundering operations.
For 26 months, Cesar Ordaz-Miranda laundered money for the drug trafficking operation, thus facilitating the transport and sale of methamphetamine into Oklahoma. In his plea agreement, Cesar Ordaz-Miranda stated that he received money and sent it back to Mexico to individuals who supplied methamphetamine for distribution in Tulsa and the surrounding areas. To facilitate the process, he used Casa Herrera and other money remitter businesses to generate wire transfers using nominee names. A “nominee name” is used to hide the actual recipient of the money and disguise the true nature of the transactions. Cesar Ordaz-Miranda stated in his plea agreement that Alfredo Herrera, Domingo Aguirre, and Javier Passement assisted him by generating wire transfers to send drug proceeds from Tulsa to Mexico. As a result of the criminal prosecutions associated with this case, Casa Herrera is no longer in business.
Ordaz-Miranda remains in the custody of the U.S. Marshals Service until transfer to a U.S. Bureau of Prisons facility.
The Drug Enforcement Administration, FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and Tulsa Police Department conducted the investigation. Assistant U.S. Attorney Joel-lyn A. McCormick prosecuted the case. AUSA McCormick serves as the lead attorney for the United States Attorney’s Organized Crime Drug Enforcement Task Forces.
Treasure Coast Corporation and Corporate Officers Sentenced Federally for Conspiring to Conceal and Harbor Aliens for the Purpose of Commercial Advantage or Private Financial GainRead the Press Release
TentLogix, Inc., a Florida corporation headquartered in Fort Piece, Florida, and corporate officer Gary Hendry, 52, of Jenson Beach, Florida, were sentenced today by U.S. District Judge Robin L. Rosenberg, for their participation in a conspiracy to conceal and harbor aliens for the purpose of commercial advantage or private financial gain.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and Anthony Salisbury, Special Agent in Charge for U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), Miami Field Office made the announcement.
TentLogix, Inc. and its corporate officers Hendry and Dennis Birdsall, 41, of Stuart, Florida, and Kent Hughes, 53, of Jenson Beach, previously pled guilty for their involvement in the conspiracy (Case No. 19-CR-14035). TentLogix was sentenced to 4 years of probation, to include the implementation of a corporate compliance program. In addition, TentLogix was ordered to forfeit $3,033,946.46 to the United States. Hendry was sentenced to one year and one day in prison. He was also ordered to forfeit $282,789 to the United States and pay a $75,000 fine. Birdsall was previously sentenced to 5 years of probation. Birdsall was also ordered to forfeit $170,943 to the United States and pay a $15,000 fine. Hughes was previously sentenced to 3 years of probation. Hughes was also ordered to forfeit $80,000 to the United States and pay a $7,500 fine.
According to the court record, from January 2016 to March 2018, TentLogix employed approximately ninety-two aliens knowing those individuals had entered and remained in the United States unlawfully. During this time frame, a large portion of TentLogix’s workforce in the Southern District of Florida was comprised of aliens who were not authorized to work in the United States. While TentLogix was being investigated by HSI for violations of federal immigration law, Hendry, the chief executive officer of TentLogix, Birdsall, the president of TentLogix, and Hughes devised a scheme to “transfer” the aliens employed by TentLogix to KH Services, LLC, a company owned by Hughes, so that they no longer appeared on TentLogix’s payroll. Hendry was the architect of the unlawful scheme and recruited Hughes, a childhood friend, to participate. Hughes formed KH Services, LLC for the sole purpose of concealing, harboring, and shielding the aliens employed by TentLogix from HSI’s investigation. Hendry directed Birdsall to make a supervisor (“GMC”) at TentLogix aware of the scheme. At Hendry’s behest, Birdsall directed the supervisor to tell the aliens employed by TentLogix to obtain new identities, including social security numbers, which GMC did, so that they could be “transferred” to KH Services, LLC.
Birdsall directed wire transfers to be sent from TentLogix’s bank account to KH Services, LLC’s bank account on a bi-weekly basis to cover the payroll expenses for the aliens who worked for TentLogix but were purportedly employed by KH Services, LLC. Between May 2017 and March 2018, TentLogix transferred over $3,000,000 to KH Services, LLC in 23 separate wire transfers for the express purpose of paying aliens employed by TentLogix who were not authorized to work in the United States.
“The offenses TentLogix, Gary Hendry, Dennis Birdsall, and Kent Hughes stand convicted of are both serious and dangerous to the administration and enforcement of federal immigration law,” stated U.S. Attorney Ariana Fajardo Orshan. “The United States prosecutes harboring by employment cases to protect our domestic economy and the American worker. Corporations and employees that carry out schemes to conceal and harbor aliens, in order to profit from the use of illegal labor, will continue to be held accountable through criminal sanctions and stiff financial penalties.”
“Federal law requires employers hire only U.S. citizens and aliens who are authorized to work in the country,” said HSI Miami Special Agent in Charge Anthony Salisbury. “TentLogix harbored and hired manual laborers with little or no regard for their legal status. Today, they paid a substantial price for that conduct. HSI will continue to vigorously enforce immigration law where we find employers engaging in a pattern or practice of hiring and harboring unauthorized individuals in reckless disregard of the law.”
U.S. Attorney Fajardo Orshan commended the investigative efforts of HSI in this matter. This case was prosecuted by Assistant U.S. Attorney Michael D. Porter. Assistant U.S. Attorney Adrienne Rosen is responsible for the asset forfeiture component of this case.
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 at http://pacer.flsd.uscourts.gov.
Three Men Extradited for Overseeing Call Centers That Threatened and Defrauded Spanish-Speaking U.S. ConsumersRead the Press Release
WASHINGTON — Three Peruvian men were extradited today to the United States, where they stand accused of operating a large fraud and extortion scheme, the Department of Justice and U.S. Postal Inspection Service announced.
Johnny Enso Hidalgo Marchan, 40, of Lima, Peru; Francesco Flabio Guerra Perez, 24, of Lima, Peru; and Rodolfo Hermoza Vega, 45, of Cajamarca, Peru, will face federal charges in Miami, Florida. The three men were arrested on July 28, 2016, by Peruvian authorities based on a U.S. indictment. All three have remained incarcerated in Peru since that time.
“The Department of Justice’s Consumer Protection Branch will pursue and prosecute transnational criminals who defraud U.S. consumers, wherever they are,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “Those who target and threaten U.S. consumers by phone will not escape justice by placing their calls from abroad. I thank the Republic of Peru for extraditing these individuals to face charges here in the United States.”
“Individuals who defraud American consumers will be brought to justice, no matter where they are located,” said U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida. “Protecting the elderly and vulnerable members of our community from schemes, such as this one, is a top priority of this Office and the Department of Justice.”
“The U.S. Postal Inspection Service will not allow overseas criminal enterprises to illegally enrich themselves by using the mail to defraud consumers in the United States,” said Miami Division Inspector in Charge, Antonio J. Gomez. “With the continued cooperation of foreign governments these criminals will be aggressively pursued and brought to justice.”
Hidalgo, Guerra, and Hermoza allegedly managed and operated Peruvian call centers called Everglades, which were based in Lima and Cajamarca, Peru, and which worked in partnership with Angeluz Florida Corporation in Miami. According to the indictment, Hidalgo, Guerra, and Hermoza, and their employees in Peru used Internet-based telephone calls to lie to and threaten Spanish-speaking victims in the United States. The callers falsely accused the victims of having failed to accept delivery of certain products and claimed that the victims owed thousands of dollars in fines and that court proceedings would be brought against them. In reality, the victims — many of whom were elderly — had never ordered these products and nothing had been delivered.
The indictment alleges that the defendants and their call center employees claimed that the consumers could resolve the supposed debts and fines if they immediately paid a “settlement fee.” Consumers who contested these settlement fees were told that failure to pay could lead to harmed credit, arrest, deportation, or seizure of property.
A 37-count federal indictment was filed against the defendants in the U.S. District Court for the Southern District of Florida in June 2015 and was unsealed upon the defendants’ extradition to the United States. Hidalgo, Guerra, and Hermoza were charged with conspiracy, mail fraud, and wire fraud. Hidalgo and Guerra also face attempted extortion charges.
An indictment merely alleges that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two individuals previously were brought to justice in connection with this scheme. In 2014, charges were brought against Angeluz and Everglades owner-operators, Maria Luzula, of Miami and Juan Alejandro Rodriguez Cuya, of Lima, Peru. Luzula pleaded guilty to all counts against her midway through trial and was sentenced to serve 165 months in prison. Rodriguez Cuya was convicted following a two-week trial. U.S. District Court Judge Patricia A. Seitz sentenced Rodriguez Cuya to serve 210 months in prison.
The case is being prosecuted by Trial Attorney Phil Toomajian of the Department of Justice’s Consumer Protection Branch. The U.S. Postal Inspection Service investigated the case. The Criminal Division’s Office of International Affairs, the U.S. Attorney’s Office of the Southern District of Florida, the Diplomatic Security Service, and the Peruvian National Police provided critical assistance.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, this past March the Department announced the largest elder fraud enforcement action in American history, charging more than 260 defendants in a nationwide elder fraud sweep. The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
More information about the Department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at https://www.ovc.gov.
Three Members of GozNym Cybercrime Network Sentenced in Parallel Multi-National Prosecutions in Pittsburgh and Tbilisi, GeorgiaRead the Press Release
PITTSBURGH - A resident of Varna, Bulgaria, was sentenced on December 16, 2019, in federal court in Pittsburgh to a period of time served after having served more than 39 months in prison following his conviction on charges of criminal conspiracy, computer fraud, and bank fraud for his role as a member of the GozNym malware cybercrime network, United States Attorney Scott W. Brady announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Krasimir Nikolov, 47, of Bulgaria. Nikolov will be transferred into U.S. Immigration and Customs Enforcement custody and removed from the United States to Bulgaria.
At the request of the United States, Nikolov was arrested in September 2016 by Bulgarian authorities and extradited to Pittsburgh in December 2016 to face prosecution in the Western District of Pennsylvania. According to information presented to the court, Nikolov’s primary role in the conspiracy was that of a "casher" or "account takeover specialist." In that capacity, Nikolov used victims’ stolen online banking credentials captured by GozNym malware to access victims’ online bank accounts and attempt to steal victims’ money through electronic transfers into bank accounts controlled by fellow conspirators.
Nikolov conspired with fellow GozNym members charged in a related Indictment announced in May 2019 in The Hague, Netherlands by U.S. Attorney Brady and international partners from Georgia, Ukraine, Moldova, Bulgaria, Germany, Europol, and Eurojust. The Indictment, returned by a federal grand jury in Pittsburgh, charged 10 additional members of the GozNym criminal network with conspiracy to commit computer fraud, conspiracy to commit wire fraud and bank fraud, and conspiracy to commit money laundering.
According to that Indictment, Alexander Konovolov, aka "NoNe," aka "none_1," of Tbilisi, Georgia, was the primary organizer and leader of the GozNym network who controlled more than 41,000 victim computers infected with GozNym malware. Konovolov assembled the team of elite cybercriminals charged in the Indictment, in part by recruiting them through underground online criminal forums. Marat Kazandjian, aka "phant0m," of Kazakhstan and Tbilisi, Georgia, was Konovolov’s primary assistant and technical administrator. Konovolov and Kazandjian were arrested and prosecuted in Georgia for their respective roles in the GozNym criminal network
In a related announcement today, the Office of the Prosecutor General of Georgia and the Ministry of Internal Affairs of Georgia announced the convictions and imposition of sentences against Konovolov and Kazandjian following a lengthy trial held in Tbilisi, Georgia. In an unprecedented level of cooperation, the Georgian trial included witness testimony from an FBI agent and a computer scientist from the FBI’s Pittsburgh Field Office, as well as evidence obtained by the
FBI and U.S. Attorney’s Office through their parallel investigation. The Georgian prosecution was based on violations of Georgian criminal laws perpetrated by Konovolov and Kazandjian against GozNym victims in the United States, including victims in the Western District of Pennsylvania.
"In announcing the prosecution of the GozNym international cybercrime syndicate with our law enforcement partners at Europol in May, I stated that borderless cybercrime necessitates a borderless response," said U. S. Attorney Brady. "This new paradigm involves unprecedented levels of cooperation with willing and trusted law enforcement partners around the world who share our goals of searching, arresting and prosecuting cyber criminals no matter where they might be. I want to congratulate and personally thank the Office of the Prosecutor General of Georgia and the Ministry of Internal Affairs of Georgia for their dedication and hard work in securing these important convictions, and for their willingness to seek justice on behalf of GozNym victims in the United States and around the world."
"The FBI will not allow cyber criminals from any country to operate with impunity," said FBI Pittsburgh Special Agent in Charge Robert Jones. "For years, these cyber criminals believed they could steal millions from innocent victims. Through international cooperation with multiple agencies, we were able to target, takedown and bring to justice members of this criminal enterprise. We will continue to relentlessly pursue these cyber criminals who think they can conduct illicit activity from behind the perceived anonymity of a computer."
Assistant U.S. Attorney Charles A. Eberle prosecuted this case on behalf of the U.S. government.
In addition to extending his gratitude and appreciation to the Office of the Prosecutor General of Georgia and the Ministry of Internal Affairs of Georgia for their investigation and successful prosecution of Konovolov and Kazandjian, United States Attorney Brady commended the FBI for the investigation leading to the successful prosecutions of Nikolov, Konovolov and Kazandjian.
The Criminal Division’s Office of International Affairs provided significant assistance with the extradition of Nikolov from Bulgaria as well as with the bi-lateral sharing of evidence with Georgia. Bulgaria’s General Directorate for Combatting Organized Crime assisted in the arrest of Nikolov.
Georgia Prosecutor's Office Press Release.pdfThree Defendants Charged with Importing over 500 lbs. of MethamphetamineRead the Press Release
NEWS RELEASE SUMMARY – December 20, 2019
SAN DIEGO – Liam Graham Szalay-Bristol, Jose Benjamin Cisneros-Quintero, and Cristian Rodriguez-Hernandez were charged in federal court yesterday with conspiring to import 505 pounds of methamphetamine, in violation of Title 21, U.S.C., Section 963. Defendant Cisneros-Quintero was also charged with knowingly and intentionally importing the drug, in violation of Title 21, U.S.C., Sections 952 and 960.
On December 18, 2019, Cisneros-Quintero, the driver and sole occupant of a white bobtail box truck, arrived at the Otay Mesa Port of Entry Cargo Facility with what appeared to be a load of cement and/or clay blocks. The U.S. Customs and Border Protection Officer inspected one of the cement blocks and observed a brown package inside, containing a white crystal substance that field-tested positive for methamphetamine. The truck and Cisneros-Quintero were subsequently released from the inspection area and were kept under constant surveillance by special agents with Homeland Security Investigations. While agents watched closely, Cisneros-Quintero picked up defendant Rodriguez-Hernandez and met with Defendant Szalay-Bristol before proceeding to a storage facility, which defendant Szalay-Bristol unlocked. At that point, the three defendants unloaded a total of 60 packages weighing 505.87 pounds into the unit. All three were arrested, charged, and appeared in federal court yesterday afternoon.
“Methamphetamine-related deaths are at record numbers here in San Diego, and this spike directly mirrors the increase in meth seizures at the border,” said U.S. Attorney Robert Brewer. “Fortunately, diligent federal agents prevented this very large meth load from causing further misery in our community, and ensured that the smugglers responsible will be held accountable.”
“Methamphetamine continues to be a deadly epidemic impacting our communities, and San Diego is a key hub for Mexican cartel methamphetamine coming into the United States,” said Cardell T. Morant, acting special agent in charge of Homeland Security Investigations (HSI) San Diego. “As this significant seizure makes clear, HSI, CBP, and our partners are resolute in our efforts to protect our communities and our country from the threats of drug trafficking.”
“Smuggling of narcotics is a serious threat to our communities. As long as transnational criminal originations continue to profit from their illicit activities, they will continue to develop ways to move their product,” said Pete Flores, director of Field Operations for CBP in San Diego. “Close collaboration between CBP and HSI is an essential piece to combatting trafficking of illegal narcotics.”
DEFENDANTS Case Number 19MJ5657
Liam Graham Szalay-Bristol Age: 21 San Diego
Jose Benjamin Cisneros-Quintero Age: 25 Tijuana
Cristian Rodriguez-Hernandez Age: 31 Tijuana
SUMMARY OF CHARGES
Importation of Methamphetamine, in violation of 21 U.S.C. §§ 952, 960
Maximum penalty: Life in prison and $10 million fine
Conspiracy to import Schedule II Controlled Substance into the U.S., in violation of 21 U.S.C. § 963
Maximum penalty: Life in prison and $10 million fine
AGENCIES
Homeland Security Investigations
Customs and Border Protection
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Thirteen Kinston Residents Sentenced to Federal Prison for Drug and Gun SalesRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that in federal court, before Chief United States District Judge Terrence W. Boyle, twelve men and one woman were sentenced for their roles in selling heroin, cocaine, crack cocaine, and guns to undercover agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) in 2018.
The investigation was part of OCDETF Operation Crosstown Traffic, which targeted violent gang members operating out of Kinston, North Carolina. Operation Crosstown Traffic was created in response to the violent crime and gang problems that had been plaguing the area. The 2016 Uniform Crime Reporting (UCR) data from the FBI identified Kinston as the 3rd most dangerous city in North Carolina. According to the City Rating, the 2016 Kinston city violent crime rate was 194% higher than the National violent crime rate and 175% higher than the crime rate in North Carolina.
Mr. Higdon commented: “About 18 months ago, we stood with law enforcement in Kinston and dedicated ourselves to taking that community back from the violent criminals and drug traffickers who were terrorizing the community. Working with our federal, state, and local law enforcement partners we have made important progress in removing drug traffickers, violent criminals and those illegally carrying guns from the community. Our work is not yet done, but these sentences and the removal of these defendants from the community are an important next step.”
“Today’s sentencing is the culmination of a focused initiative designed to remove the most dangerous individuals from our neighborhoods,” stated Vincent Pallozzi, ATF Charlotte Field Division’s Special Agent in Charge. “These collaborative efforts with our local, state and federal partners have a major role in breaking up violent criminal groups.”
An Organized Crime Drug Enforcement Task Force (OCDETF) is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
As part of the investigation, law enforcement conducted dozens of controlled purchases of heroin, cocaine, and various firearms from local gang members and individuals operating under their direction. During the course of the operation, which took place between January 2018 and January 2019, 100 firearms (12 reported stolen), 254 grams of heroin, 296 grams of cocaine, and 92 grams of crack cocaine were seized by ATF.
On January 9, 10, and 11, 2019, ATF arrested 34 federal defendants and 22 were also arrested on state charges. During the roundup, 14 firearms, 50 grams of MDMA, 14 grams of heroin, and $5,690.00 US Currency were seized. Suspect interviews resulted in the arrest and/or solving of 3 homicides and 5 shootings in the Kinston area.
The defendants who have been sentenced thus far include:
- JAQUAL MONTIE KOONCE, aka “Little Haiti,” 22, of Kinston, NC. KOONCE was convicted of conspiracy to distribute and possess with the intent to distribute a quantity of heroin, distribution of a quantity of heroin, and possession of a firearm in furtherance of a drug trafficking crime. KOONCE was sentenced to 240 months’ imprisonment.
- NAHSON JAHKEEM SUGGS, aka “Nas,” 23, of Kinston, NC. SUGGS was convicted of conspiracy to distribute and possess with the intent to distribute a quantity of heroin, four counts of distribution of a quantity of heroin and aiding and abetting, one count of distribution of a quantity of heroin and methoxyacetal fentanyl, two counts of distribution of a quantity of heroin, and possession of a firearm in furtherance of a drug trafficking crime. SUGGS was sentenced to 123 months’ imprisonment.
- DWAYNE LEONZO HERRING, 31, of Kinston, NC. HERRING was convicted of aiding and abetting distribution of a quantity of cocaine, and possession of a firearm in furtherance of a drug trafficking crime. HERRING was sentenced to 90 months’ imprisonment.
- JARRETT JEROME JOHNSON, aka “JJ”, 21, of Kinston, NC. JOHNSON was convicted of distribution of a quantity of heroin and possession of a firearm in furtherance of a drug trafficking crime. JOHNSON was sentenced to 48 months’ imprisonment.
- TYRICCO MARIO PITTS, 28, of Kinston, NC. PITTS was convicted of distribution of a quantity of cocaine and possession of a firearm by a felon. PITTS was sentenced to 40 months’ imprisonment.
- DEANDRE MURRELL, aka “Man,” 25, of Kinston, NC. MURRELL was convicted of aiding and abetting distribution of a quantity of heroin and fentanyl, and possession of a firearm by a felon. MURRELL was sentenced to 37 months’ imprisonment.
- QUREN SHAIKEEM MEWBORN, aka “Buddha,” 24, of Kinston, NC. MEWBORN was convicted of conspiracy to distribute and possess with intent to distribute a quantity of heroin, aiding and abetting distribution of a quantity of cocaine, and possession of a firearm in furtherance of a drug trafficking crime. MEWBORN was sentenced to 36 months’ imprisonment.
- KHADAFI KAMEEK-MONTR BARNES, aka “Nookie,” 18, of Kinston, NC. BARNES was convicted of conspiracy to distribute and possess with intent to distribute a quantity of heroin, aiding and abetting distribution of a quantity of heroin, and aiding and abetting distribution of a quantity of cocaine. BARNES was sentenced to 22 months’ imprisonment.
- DESHAKEEM TYSHEIK TURNAGE, aka “Trouble,” 26, of Kinston, NC. TURNAGE was convicted of felon in possession of a firearm. TURNAGE was sentenced to 108 months’ imprisonment.
- ARVENTIONO NYREKI LAWSON, 22, of Kinston, NC. LAWSON was convicted of conspiracy to distribute and possess with the intent to distribute a quantity of heroin and aiding and abetting distribution of a quantity of heroin. LAWSON was sentenced to 30 months’ imprisonment.
- JAYQUON MARQUIS NOBLES, aka “Chop,” 22, of Kinston, NC. NOBLES was convicted of conspiracy to distribute and possess with intent to distribute a quantity of heroin, aiding and abetting distribution of a quantity of heroin, and possession of a firearm in furtherance of a drug trafficking crime. NOBLES was sentenced to 78 months’ imprisonment.
- COREY MILLS, 24, of Kinston, NC. MILLS was convicted of possession of a sawed-off shotgun. MILLS was sentenced to 5 years’ probation.
- INDIA AYESHA WILKERSON, aka “Esha,” 21 of Kinston, NC. WILKERSON was convicted of distribution of a quantity of codeine and aiding and abetting. WILKERSON was sentenced to 3 years’ probation.
This case is part of the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement. For more information about this initiative click here: https://www.justice.gov/usao-ednc/tbnc.
The Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), Kinston Police Department, Lenoir County Sheriff’s Office, Goldsboro Police Department, and the North Carolina State Bureau of Investigation, and with the assistance of the Drug Enforcement Administration (DEA) conducted the investigation. Assistant United States Attorney Laura S. Howard prosecuted this case on behalf of the government.
Texas Man Pleads Guilty to Child Exploitation ViolationsRead the Press Release
A Texas man has pleaded guilty today to child exploitation violations in the Eastern District of Texas, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Joseph D. Brown of the Eastern District of Texas.
Alexander Nathan Barter, 23, of Joaquin, Texas, pleaded guilty to attempted coercion and enticement of a minor and distribution of child pornography before U.S. Magistrate Judge Keith Giblin of the Eastern District of Texas.
According to information admitted by Barter as part of his plea, in October 2018, Barter posted an ad on a TOR site stating, “I’d like to try necrophilia and cannibalism, and see how it feels to take a life. If you’d be willing to let me kill you, are in the US (preferably in the south) and can travel by car, contact me.” An undercover officer saw the ad and responded, utilizing the persona of a father with a 13-year old daughter. Between Oct. 9, 2018, and Oct.19, 2018, Barter and the undercover officer exchanged a series of messages that included Barter’s repeated interest in raping, killing and eating the 13-year old child. Barter provided the undercover officer with instructions on traveling from Florida to Shelby County, Texas, what to tell the child to get her acquiescence to travel and how to conceal evidence of their crime. On Oct. 19, 2018, Barter arrived at the designated meet site with a knife, trash bag, cellular phone and a tablet.
As part of his plea, Barter also admitted to using a social media communications application, the Internet and digital devices he owned to communicate with other individuals about child pornography. On Oct. 14, 2017, Barter offered to send videos depicting the sexual exploitation of a prepubescent female to another individual. The individual accepted the offer and Barter sent the files, along with descriptions of their contents.
Barter entered into a plea agreement with the government that includes a sentence of 240 months imprisonment on each count. A sentencing date has not yet been set.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case is being investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Lufkin, Beaumont, and Houston, Texas; HSI Cocoa Beach, Florida, Child Exploitation Task Force; Brevard County Sheriff’s Office Florida; Nacogdoches Police Department; Texas Department of Public Safety; U.S. Customs and Border Protection Air Units; and Shelby County Sheriff’s Office. Senior Trial Attorney Jennifer Toritto Leonardo of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Marisa Miller of the Eastern District of Texas prosecuted the case.
Texarkana, Texas Man Sentenced for Multiple Armed RobberiesRead the Press Release
TEXARKANA, Texas – A 66-year-old Texarkana, Texas man has been sentenced to federal prison for bank robbery in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Troy Lee Ware pleaded guilty on July 23, 2019, to bank robbery and was sentenced to 180 months in federal prison today by U.S. District Judge Robert W. Schroeder III.
According to information presented in court, on April 26, 2019, Ware entered the Wells Fargo Bank on New Boston Road in Texarkana, Texas, brandishing a firearm and demanding money from the bank teller’s drawer. The teller complied and gave the cash to Ware. Ware took the cash and backed out of the bank while pointing the firearm at bank employees and demanding they remain on the floor. Ware fled the bank on a bicycle. Ware was indicted by a federal grand jury on May 15, 2019, and charged with bank robbery.
“This defendant was a danger throughout northeast Texas and in Arkansas,” said U.S. Attorney Joseph D. Brown. “He earned every one of those years he will serve.”
Ware also admitted to committing the following, additional armed robberies:
- Paradise Quick Stop Exxon located at 3400 New Boston Road in Texarkana, Texas on April 18, 2017;
- Papa John’s Pizza located at 403 State Line Ave. in Texarkana, Texas on April 22, 2017;
- The Tobacco Store located at 2806 New Boston Road, Texarkana, Texas on Dec. 18, 2017;
- Shamrock Gas Station and Convenience Store located at 824 Richmond Road, Texarkana on Dec. 23, 2017;
- Potato Patch restaurant located at 3815 N. State Line Ave., Texarkana on Dec. 23, 2017;
- Bancorp South, located at 2200 N. State Line Ave., in Texarkana, Arkansas on Feb. 16, 2017;
- Fast & Low #2 Convenience Store located at 402 East Street, Texarkana, Arkansas on April 24, 2017;
- Exxon gas station and convenience store located at 2324 N. Stateline Ave. in Texarkana, Arkansas on June 9, 2017;
- Family Dollar store located at 1213 E. 9th Street in Texarkana, Arkansas on Oct. 24, 2017;
- Texas Liquor store located at 914 N. Stateline Ave. in Texarkana, Arkansas on Oct. 27, 2017;
- Stop & Shop convenience store located at 402 East Street in Texarkana, Arkansas on or about Dec. 9, 2017; and
- Bottle Shop liquor store located at 1224 N. Stateline Ave. in Texarkana, Arkansas on Dec. 12, 2017.
As part of his plea agreement, Ware agreed to pay restitution of $24,702.00, which is the total amount he received from all robberies. He also agreed to forfeit the firearm and ammunition.
This case was investigated by the Texarkana, Texas and Texarkana, Arkansas Police Departments, the Miller County (Arkansas) Sheriff’s Office, the Federal Bureau of Investigation’s Texarkana, Texas and Texarkana, Arkansas Field Offices. This case was prosecuted by Assistant U.S. Attorney Jim Noble.###
Tallmadge Chemist Charged with Falsifying Test ResultsRead the Press Release
Andrew K. Ecklund, 57, a chemist, previously employed at an environmental testing company in Northeast Ohio, was charged in a nine-count indictment for falsifying test results that were sent to customers across the country.
As alleged in the indictment, Ecklund was a laboratory analyst who was responsible for testing environmental samples for the presence of hazardous substances. On numerous occasions between December 15, 2014 and February 25, 2015, Ecklund allegedly took steps to make it appear that deficient samples met quality control standards when, as charged in the indictment, they did not.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the Ohio EPA, Ohio Attorney General’s Office, Army Criminal Investigation Division, Department of Defense, Office of Inspector General, and U.S. EPA Criminal Investigation Division, all of which are members of the Northeast Ohio Environmental Crimes Task Force. The case is being prosecuted by Assistant U.S. Attorneys Carmen E. Henderson and Brad J. Beeson.
St. Francis Woman Found Not Guilty of Assault ChargesRead the Press Release
United States Attorney Ron Parsons announced that a St. Francis, South Dakota, woman was acquitted of Assault With a Dangerous Weapon and Assault Resulting In Serious Bodily Injury as a result of a federal jury trial in Pierre, South Dakota, beginning on December 17, 2019, and concluding on December 18, 2019.
Tiffany Spotted War Bonnet, age 45, was indicted by a federal grand jury on April 9, 2019.
The charges alleged that on March 4, 2019, Spotted War Bonnet, assaulted an individual with a sharp metal object with the intent to do bodily harm and the alleged assault resulted in serious bodily injury.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The U.S. Attorney’s Office prosecuted the case.
South Carolina Woman Sentenced to Three Years for Embezzling More Than $2.4 Million Worth of Computer Equipment from Her EmployerRead the Press Release
CHARLOTTE, N.C. – Jolynn Denise McHone, 45, of Fort Mill, South Carolina, was sentenced late yesterday to three years in prison and two years of supervised release for embezzling more than $2.4 million worth of computer equipment from her employer, announced Andrew Murray, U.S. Attorney for the Western district of North Carolina. U.S. District Judge Robert J. Conrad Jr. also ordered McHone to pay more than $2.4 million in restitution.
Special Agent in Charge John A. Strong, of the FBI Charlotte Field Office, joins U.S. Attorney Murray in making today’s announcement.
According to the filed court documents, from 2006 to 2017, McHone was employed by a Florida-based company as an information technology (IT) procurement manager. In that capacity, McHone was responsible for negotiating IT equipment purchases and lease agreements with the company’s IT vendors, managing IT equipment and purchases for the company and its subsidiaries throughout the United States, including North Carolina, and managing the company’s IT operating budget.
Court records show that from 2012 to 2017, McHone defrauded her employer by using company funds to order new IT equipment for supposedly legitimate company business, which she had delivered to a company subsidiary located in Concord, North Carolina. McHone intercepted the deliveries of the equipment, then met a co-conspirator in Charlotte, to whom she sold the equipment for cash, often for as little as 60 percent of the retail value of the equipment. During the relevant time period, McHone admitted that she engaged in dozens of fraudulent IT equipment purchase or lease transactions. Through this scheme, McHone obtained hundreds of fraudulently-acquired pieces of equipment, and caused losses of more than $2.4 million to the company.
On April 4, 2019, McHone pleaded guilty to wire fraud. McHone will be ordered to report to the federal Bureau of Prisons to begin serving her sentence, upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The FBI investigated the case. Assistant U.S. Attorney William Bozin, of the U.S. Attorney’s Office in Charlotte, handled the prosecution.
South Bend, Indiana Man SentencedRead the Press Release
SOUTH BEND – Eduardo Ramirez, age 44, of South Bend, Indiana was sentenced yesterday afternoon (December 19, 2019) before South Bend District Court Judge Damon Leichty upon his plea of guilty to being a felon in possession of a firearm, announced U.S. Attorney Kirsch.
Ramirez was sentenced to 72 months in prison followed by 3 years of supervised release.
According to documents in this case, Ramirez was involved in a vehicular accident. After he crashed into another car, his passengers exited the vehicle while he attempted to flee police, first by vehicle and then on foot. Officers detained him and found a fully loaded .357 revolver along with .357 and 9mm ammunition in the vehicle. Ramirez’s criminal history stretches back to 1992, with six felony convictions, four misdemeanor convictions, and a juvenile felony adjudication.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the St. Joseph County Police Department, the South Bend Police Department, and the St. Joseph County Prosecutor’s Office. The case was handled by Assistant U.S. Attorneys Molly E. Donnelly and Jerome W. McKeever.
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Sonoma County CEO Pleads Guilty to Charges Stemming from $25-65 Million Student Loan Repayment Services ScamRead the Press Release
SAN FRANCISCO – Brandon Frere pleaded guilty today to wire fraud and money laundering charges in connection with a multi-million-dollar scheme to use deceptive sales tactics to convince people to enroll in his companies’ student loan repayment services programs, announced United States Attorney David L. Anderson and Federal Bureau of Investigation, Special Agent in Charge John F. Bennett. The plea was accepted by the Hon. Susan Illston, United States District Judge.
Frere, 42, of Sonoma County, owned and operated three companies—American Financial Benefits Center (AFBC), the Financial Education Benefits Center (FEBC), and Ameritech Financial (Ameritech)—all based in Rohnert Park, Calif. According to his plea agreement, between January of 2014 and November of 2018, Frere used the companies to market student loan document preparation services for borrowers who wished to apply for programs through the Department of Education. Frere targeted potential customers who were seeking federal loan forgiveness, loan consolidation, and reduced-payment programs. When Frere’s companies sold consumers “document preparation” services, they also sold them a purportedly optional membership in a “financial education benefits program.” The so-called benefits program provided the opportunity to customers to sign up for services such as LifeLock identity theft protection and roadside assistance.
Frere admitted he instructed his employees to follow misleading sales scripts and to employ deceptive sales tactics so that people would enroll for services without fully understanding what they were paying for. For example, when initially enrolling consumers in the document preparation service and signing them up for the financial education benefits program, Frere hid the fees for the financial education benefits program and described the benefits program in a way that made it seem like the cost of the program was included in the document preparation services. Further, Frere admitted he instructed enrollment associates not to present the benefits program as an optional or additional service to the document preparation service; this way, consumers would purchase the benefits packages without knowing they were doing so.
In sum, Frere instructed his employees (1) to make false statements concerning the companies’ ability to deliver fixed payments for the life of student loans and loan forgiveness under alternative repayment plans; (2) to engage in enrollment practices that improperly inflated a consumers’ family size to reduce their prospective payments under federal alternative repayment plans (and therefore make it appear to the consumer that their monthly payments would be lower than what they would have been if the family size were not inflated); and (3) to hide the monthly fees that consumers would pay for a purportedly optional financial education benefits program while leading victims to believe that the benefits program was already included in the document preparation service. Frere admitted for the purposes of sentencing that the amount of losses attributable to his scheme was no less than $25,000,000 and up to $65,000,000.
Moreover, Frere admitted that in order to conceal the proceeds of his wire fraud scheme, in 2015, he began transferring to overseas bank accounts that he controlled large sums of the funds that he had received through the scheme. He continued this process in August 2017, after he became involved in litigation with the Federal Trade Commission (“FTC”) and became concerned the FTC or a court might be able to seize the proceeds of his fraud. The FTC filed a civil complaint in February 2018 against Frere and his companies in federal court in Oakland. (Federal Trade Commission v. American Financial Benefits, et al., Case No. CV 18-00806-SBA).
Frere was arrested December 5, 2018, at SFO as he attempted to board a flight to Cancun, Mexico. He is now free on bond pending sentencing. Judge Illston scheduled Frere’s sentencing for March 27, 2020 at 11:00 AM.
Frere was charged by information on October 1, 2019 with one count of wire fraud, in violation of 18 U.S.C. § 1343, and one count of money laundering, in violation of 18 U.S.C. § 1956(a)(2)(B). Frere pleaded guilty to both counts. Frere faces a maximum sentence of 20 years in prison, for each count. In addition, with respect to the fraud count, Frere faces a fine of $250,000, or the greater of twice the gross gain or twice the gross loss from the fraud. With respect to the money laundering count, Frere faces a fine of $500,000, or the greater of twice the gross gain or twice the value of the money instruments involved. In addition, restitution, supervised release, and additional fines may be ordered. However, any sentence following conviction will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Scott Joiner is prosecuting the case with the assistance of Kimberly Richardson. The prosecution is the result of an investigation by the Federal Trade Commission, Federal Bureau of Investigation, and Internal Revenue Service Criminal Investigation, with assistance from the U.S. Department of Education Office of Inspector General.
Shelby County Man Guilty of Child Exploitation ViolationsRead the Press Release
BEAUMONT, Texas – A 23-year-old Joaquin, Texas man has pleaded guilty to child exploitation violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Alexander Nathan Barter pleaded guilty to attempted coercion and enticement of a minor and distribution of child pornography before U.S. Magistrate Judge Keith Giblin on December 20, 2019.
According to information admitted by Barter as part of his plea, in October 2018, Barter posted an ad on a dark web site stating “I’d like to try necrophilia and cannibalism, and see how it feels to take a life. If you’d be willing to let me kill you, are in the US (preferably in the south) and can travel by car, contact me.” An undercover officer saw the ad and responded, utilizing the persona of a father with a 13-year old daughter. Between October 9, 2018 and October 19, 2018, Barter and the undercover officer exchanged a series of messages that included Barter’s repeated interest in raping, killing, and eating the 13-year old child. Barter provided the undercover with instructions on traveling from Florida to Shelby County, Texas, what to tell the child to get her acquiescence to travel, and how to conceal evidence of their crime. On October 19, 2018, Barter arrived at the designated meet site in Joaquin, Texas with a knife, trash bag, cellular phone, and a tablet.
“These are the cases that remind us that evil is real,” said U.S. Attorney Joseph D. Brown. “It also reminds us that we are fortunate that we have law enforcement working to stop these things.”
As part of his plea, Barter also admitted to using a social media communications application, the internet, and digital devices he owned to communicate with other individuals about child pornography. On October 14, 2017, Barter offered to send videos depicting the sexual exploitation of a prepubescent female to another individual. The individual accepted the offer and Barter sent the files, along with descriptions of their contents.
Barter entered into a plea agreement with the government that includes a sentence of 240 months imprisonment on each count. Each party has reserved the right to argue that the sentences should run concurrent or consecutive. Accordingly, Barter will face a minimum term of 20 years in federal prison and a maximum sentence of 40 years when he is sentenced. A sentencing date has not yet been set and the actual sentence will be determined by a federal judge at sentencing.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case is being investigated by Homeland Security Investigations in Lufkin, Beaumont, and Houston, Texas; Homeland Security Investigations Cocoa Beach, Florida, Child Exploitation Task Force; Brevard County Sheriff’s Office (Florida); Nacogdoches Police Department; Texas Department of Public Safety; Customs and Border Protection Air Units; and Shelby County Sheriff’s Office, and prosecuted by Assistant U.S. Attorney Marisa Miller and U.S. Department of Justice Senior Trial Attorney Jennifer Toritto Leonardo.
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Seffner Man Sentenced to 25 Years in Federal Prison for Firearms and Arson ChargesRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich today sentenced Joshua David Jordan (30, Seffner) to 25 years in federal prison for arson and for discharging a firearm during and in relation to attempted carjackings. The court also ordered Jordan to pay $82,200 in restitution to the victims of his crimes.
Jordan had pleaded guilty on September 4, 2019.
According to court documents, on the night of October 3, 2017, Jordan attempted to commit two armed carjackings in Hillsborough County, firing a semi-automatic handgun during each one. In the second attempted carjacking, Jordan shot the driver, who escaped and survived. Jordan then stole and set fire to a landscaping company’s spray truck, resulting in its destruction.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hillsborough County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Christopher Murray and Callan Albritton.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Retired City Clerk Sentenced for EmbezzlementRead the Press Release
WICHITA, KAN. – A retired city clerk of Caney, Kan. was sentenced Thursday to three years on federal probation for embezzling city funds, U.S. Attorney Stephen McAllister said. The defendant also was ordered to pay more than $150,000 in restitution.
Carole Sue Coker, 70, Oronogo, Mo., pleaded guilty to one count of mail fraud. Coker, who served as city clerk for about 40 years, admitted she took money from payments made to the city in the form of cash and checks.
In some cases, she did not deposit cash payments from customers into the city’s accounts. In other cases, she deposited only a portion of payments made in the form of checks.
McAllister commended the FBI and Assistant U.S. Attorney Alan Metzger for their work on the case.
Regional President of Outlaws Motorcycle Club Indicted on Firearms ChargesRead the Press Release
BOSTON – The regional president of the Outlaws Motorcycle Club was indicted yesterday by a federal grand jury in Boston for possession of an unregistered firearm.
Bruce Sartwell, a/k/a “Monster,” 48, of East Bridgewater, was indicted on one count of possession of an unregistered firearm. Sartwell was charged by criminal complaint and arrested in October 2019.
As alleged in the charging documents, Sartwell is the Regional President of the Brockton/East Bridgewater Chapters of the Outlaws Motorcycle Club. On Oct. 19, 2019, agents intercepted a package originating in China and addressed to Sartwell that was declared as a “Fuel Filter” but actually contained a firearm silencer. A review of importation records revealed that Sartwell had received approximately 65 shipments from Asia (over 55 from China), many of which were labeled as innocuous items that could have been more easily and cheaply purchased in the United States.
On Oct. 30, 2019, a search was executed at Sartwell’s residence where an AR-15 styled “ghost gun” – a firearm without any manufacturing or serial numbers – and firearm manufacturing tools, assembly parts including milling equipment, buffer spring, buffer tube, air-powered water dremel polish and a drill press were recovered.
In addition, two firearm silencers were found concealed in false bottom compartments, a guide for assembly and disassembly of an AR-15 rifle, 20 knives, a black powder handgun, a flare gun and various ammunition compatible with the AR-15 styled rifle. In the basement of the house, a floor-length mirror concealed the entrance to a hidden storage area that was found to contain a safe with silencer parts and a firearm assembly instruction book.
The charge of possession of an unregistered firearm provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, New England Field Division made the announcement today. The U.S. Postal Inspection Service; Customs and Boarder Protection; Massachusetts State Police; East Bridgewater Police Department; Bristol County Sheriff’s Office; and the Massachusetts Environmental Protection Agency provided assistance with the investigation. Assistant U.S. Attorney Linsey Weinstein of Lelling’s Major Crimes Unit is 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.
Rapid City Man Sentenced on Firearm ChargeRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Daniel Sweeris, age 36, was sentenced on December 17, 2019, to 36 months in federal prison, followed by 3 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
The conviction stemmed from Sweeris, a previously convicted felon prohibited from possessing firearms, knowingly possessing a Jimenez Arms, model J.A. T-380 caliber semi-automatic pistol, which was found during a traffic stop of Sweeris’ vehicle at Rapid City in August 2018.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Sweeris was immediately turned over to the custody of the U.S. Marshals Service.
Project Guardian: 118 Defendants Charged Federally in 2019 to Reduce Violence in LouisvilleRead the Press Release
LOUISVILLE, Ky. – United States Attorney Russell Coleman, surrounded by federal and local law enforcement partners, announced more than 100 felony offenders possessing firearms have been charged so-far in 2019 as part of the ongoing Project Guardian effort to fight back against the violent crime plaguing Metro Louisville.
This round of indictments brings the total number of defendants charged under the initiative to 223. During calendar year 2019 there have been 118 defendants charged, in calendar year 2018 there were 105 defendants charged in Louisville as part of the Project Guardian program. We have increased gun prosecutions 67 percent across the western district of Kentucky from fiscal year 2017 to fiscal year 2019.
The defendants charged this year are a result of the ongoing partnership between federal prosecutors and their counterparts from Jefferson County Commonwealth’s Attorney Tom Wine’s Office who work hand-in-hand with the Louisville Metro Police Department, the Bureau of Alcohol, Tobacco, & Firearms (ATF), the Federal Bureau of Investigation (FBI) and the Drug Enforcement Agency (DEA). The combined effort is a key component of the Department of Justice’s Project Guardian initiative - which targets the area’s most violent offenders.
“The violent crime our city has suffered over the last few years cannot stand. But for too long in law enforcement, we’ve allowed our greatest limiting factor to be what it says on our badge,” said U.S. Attorney Russell Coleman. “Through Project Guardian and under the leadership of our federal, state, and local partners here in Louisville, we are true partners in tackling this threat to our families and our kids.”
“ATF’s core mission to reduce violent crime and enforce federal firearms laws is achieved each day through the strength of our partnerships with local and state law enforcement,” stated Acting Special Agent in Charge Tommy Estevan of ATF’s Louisville Division. “Already, Project Guardian is building on these relationships and ATF’s gun crime gun intelligence to effectively disrupt the shooting cycles and arrest those who ‘lie and buy’ firearms. These strategies are reducing the access of illegally obtained firearms and helping to make our communities safer for everyone.”
Defendants charged this year have previously been found guilty of numerous crimes including: burglary, kidnapping, narcotics trafficking, manufacturing methamphetamine, theft of identity without consent, assault 4th degree domestic violence, robbery, escape, fleeing/evading police, wanton endangerment, among other charges.
Successful prosecutions this year included, Marcus Bishop Jr., 22, of Louisville was sentenced to 15-years in federal prison, where there is no parole. Bishop was federally convicted of use of a firearm in furtherance of a drug trafficking crime and three counts of possession with intent to distribute heroin.
Jamar Garrison, 33, of Louisville, Kentucky, was sentenced this year to 20 years of federal imprisonment followed by 6 years of supervised release for possession of heroin with the intent to distribute, and possession of a handgun by a convicted felon. Garrison is a 27 time convicted felon with prior convictions for drug trafficking, robbery, felony assault, identity theft, wanton endangerment, wanton endangerment of a police officer, felony fleeing and evading, and assorted other felony and misdemeanor crimes.
As gang-related violence escalated in the summer months federal law enforcement ushered in a new level of collaboration as the United States Marshals Service (USMS), Louisville Metro Police Department (LMPD), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Drug Enforcement Administration (DEA), and the Federal Bureau of Investigation (FBI) conducted Operation Iron Grip – a two week series of raids from July 22 to August 2, in an effort to reduce violent crime in Louisville. The raids led to more than 50 arrests and 13 firearms seized.
Following the raids the United States Attorney’s Office working with expertise from former LMPD Maj. Billy Hibbs and real-time crime data, erected eight billboards and five bus shelters with a strong message calling for residents to report felons with firearms in an effort to “stop gun violence.” In an addition to a plea, the billboards offered hope to residents and a phone number tip line.
If convicted at trial, the maximum sentence for unlawfully possessing a firearm is no more than ten years in prison, a $250,000 fine, and three years of supervised release. If that firearm is possessed or used in furtherance of a drug trafficking crime, a defendant faces a mandatory minimum five years in prison in addition to the sentence received for the underlying charges, and could receive up to life in prison. Some of the 118 defendants qualify as Armed Career Criminals, facing a mandatory 15 year sentence, or repeat drug traffickers, facing a mandatory 15 years sentence and, in some cases, a mandatory 25 year sentence.
These cases are being prosecuted by Assistant United States Attorneys Joe Ansari, Ann Marie Blaylock, Robert Bonar, Nute Bonner, Bryan Calhoun, Tom Dyke, Larry Fentress, Marisa Ford, Alicia Gomez, Amanda Gregory, Lettricea Jefferson-Webb, Joshua Judd, Corrine Keel, Jo Lawless, Erin McKenzie, Spencer McKiness, Randy Ream, Mac Shannon, Amy Sullivan, Christopher Tieke, David Weiser, Stephanie Zimdahl and Special Assistant United States Attorneys Ebert Haegele and Elizabeth Jones Brown with assistance from Laura Stinson, Western District of Kentucky Grand Jury Coordinator. The cases are being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Louisville Metro Police Department, the Federal Bureau of Investigation (FBI) and the United States Drug Enforcement Administration (DEA) and with significant collaboration with Tom Wine and the Jefferson County Commonwealth’s Attorney’s Office.
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Project Guardian is a nationwide program launched in November 2019 by Attorney General William Barr as a complementary effort to the Project Safe Neighborhoods Program (PSN). Project Guardian uses existing gun laws to comprehensively attack gun violence through the aggressive enforcement of existing laws in an effort to incapacitate the most dangerous and violent offenders.
Project Guardian’s implementation is based on five principles:
- Coordinated Prosecution. Federal prosecutors and law enforcement will coordinate with state, local, and tribal law enforcement and prosecutors to consider potential federal prosecution for new cases involving a defendant who: a) was arrested in possession of a firearm; b) is believed to have used a firearm in committing a crime of violence or drug trafficking crime prosecutable in federal court; or c) is suspected of actively committing violent crime(s) in the community on behalf of a criminal organization.
- Enforcing the Background Check System. United States Attorneys, in consultation with the Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in their district, will create new, or review existing, guidelines for intake and prosecution of federal cases involving false statements (including lie-and-try, lie-and-buy, and straw purchasers) made during the acquisition or attempted acquisition of firearms from Federal Firearms Licensees. Particular emphasis is placed on individuals convicted of violent felonies or misdemeanor crimes of domestic violence, individuals subject to protective orders, and individuals who are fugitives where the underlying offense is a felony or misdemeanor crime of domestic violence; individuals suspected of involvement in criminal organizations or of providing firearms to criminal organizations; and individuals involved in repeat denials.
- Improved Information Sharing. On a regular basis, and as often as practicable given current technical limitations, ATF will provide to state law enforcement fusion centers a report listing individuals for whom the National Instant Criminal Background Check System (NICS) has issued denials, including the basis for the denial, so that state and local law enforcement can take appropriate steps under their laws.
- Coordinated Response to Mental Health Denials. Each United States Attorney will ensure that whenever there is federal case information regarding individuals who are prohibited from possessing a firearm under the mental health prohibition, such information continues to be entered timely and accurately into the United States Attorneys’ Offices’ case-management system for prompt submission to NICS. ATF should engage in additional outreach to state and local law enforcement on how to use this denial information to better assure public safety. Additionally, United States Attorneys will consult with relevant district stakeholders to assess feasibility of adopting disruption of early engagement programs to address mental-health-prohibited individuals who attempt to acquire a firearm. United States Attorneys should consider, when appropriate, recommending court-ordered mental health treatment for any sentences issued to individuals prohibited based on mental health.
- Crime Gun Intelligence Coordination. Federal, state, local, and tribal prosecutors and law enforcement will work together to ensure effective use of the ATF’s Crime Gun Intelligence Centers (CGICs), and all related resources, to maximize the use of modern intelligence tools and technology. These tools can greatly enhance the speed and effectiveness in identifying trigger-pullers and finding their guns, but the success depends in large part on state, local, and tribal law enforcement partners sharing ballistic evidence and firearm recovery data with the ATF. Federal law enforcement represents only about 15 percent of all law enforcement resources nationwide. Therefore, partnerships with state, local, and tribal law enforcement and the communities they serve are critical to addressing gun crime. The Department recognizes that sharing information with our state, local, and tribal law enforcement partners at every level will enhance public safety, and provide a greater depth of resources available to address gun crime on a national level.
For more information on Project Guardian, see the Attorney General’s memorandum at: https://www.justice.gov/ag/project-guardian-memo-2019/download.
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The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Police Impersonator Sentenced to Federal Prison for Illegally Obtaining Cell Phone RecordsRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced today that Matthew Marre, age 30, of Johnstown, Colorado was sentenced by U.S. District Court Judge R. Brooke Jackson to serve 15 months imprisonment followed by 3 years of supervised release for fraudulently obtaining confidential phone records. The defendant appeared at the hearing in custody and was remanded at the hearing’s conclusion. The FBI joined in today’s announcement.
According to the stipulated facts contained in the plea agreement, Marre worked as a fugitive recovery agent, or bounty hunter, throughout Colorado. He contacted the four major cellular phone carriers – Sprint, Verizon, T-Mobile and AT&T – falsely claiming to be a law enforcement officer investigating exigent circumstances with suicidal subjects. In doing so, Marre submitted false documents and used an email address he had created to look like an official law enforcement email. Marre’s fraudulent requests involved cell phone GPS location information which he used in an effort to locate bounties rather than for a legitimate law enforcement purposes.
Phone providers became suspicious of Marre’s requests for emergency assistance and contacted the FBI when their attempts to verify Marre’s claim to be a law enforcement officer were unsuccessful.
“Those who impersonate peace officers for their own private gain will be held accountable for their actions,” said U.S. Attorney Jason Dunn. “In this case, the defendant will have some time in federal prison to reflect on his conduct.”
"Impersonating a law enforcement officer is a serious offense," stated FBI Special Agent in Charge Dean Phillips. "Gaining access to private information without a legitimate law enforcement purpose, especially alleging a threat to life, undermines the lawful processes in place which allow us to investigate crime."
This case was investigated by the FBI Safe Streets Task Force. The defendant was prosecuted by Assistant U.S. Attorney Greg Holloway.
Placer County Woman Sentenced for an Investment Fraud Scheme That Targeted Investors in Failed Folsom Ponzi SchemeRead the Press Release
SACRAMENTO, Calif. — Kari Sonovich, 48, of Meadow Vista, was sentenced today to two years and three months in prison for an investment fraud scheme, U.S. Attorney McGregor W. Scott announced.
On Jan. 31, 2014, a federal grand jury returned a three-count indictment, charging Sonovich with mail fraud. According to court documents, between July 2008 and April 2009, Sonovich recruited investors to invest with her Las Vegas company, B&B Consulting Group LLC, by telling them that she could place their funds with an international trader who operated at an extremely high level, promising returns of up to 500% every 90 days. When investors deposited funds with her, Sonovich kept $454,000 of the funds for herself, even though she told the investors that all of their funds would be invested. No investor ever received the promised returns, and in most or all instances, no investor received any of their initial investment back.
Some investors in Sonovich’s scheme became involved at the same time that an earlier investment fraud scheme in which they had invested was collapsing. Anthony Vassallo, 40, and Kenneth Kenitzer, 76, ran that Folsom-based Ponzi scheme through their company Equity Investment Management & Trading (EIMT). Both were convicted for that scheme, Vassallo is serving a 16‑year prison sentence and Kenitzer was sentenced to 6 years in prison was released on July 5, 2019.
“The role of IRS - Criminal Investigation becomes even more important in Ponzi schemes and fraud cases due to the complex financial transactions that can take time to unravel,” said Kareem Carter, IRS - CI Special Agent in Charge, Oakland Field Office. ”The scheme targeted by Sonovich was conducted in a way that her victims suffered substantial financial losses. Today’s sentencing emphasizes the partnership between IRS and the U.S. Attorney’s Office and the pursuit of those who violate these types of federal laws.”
This case was the product of an investigation by IRS - Criminal Investigation. Assistant U.S. Attorneys Matthew Thuesen and Audrey B. Hemesath prosecuted the case.
Pine Ridge Man Sentenced to Prison for Assault with a Dangerous WeaponRead the Press Release
United States Attorney Ron Parsons announced that a Pine Ridge, South Dakota, man convicted of Assault with a Dangerous Weapon was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Wakiyan Dreamer, age 21, was sentenced on December 16, 2019, to 37 months in federal prison, followed by 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Dreamer was indicted for the charge by a federal grand jury in April 2019. The charge related to Dreamer kicking a female victim in the face with shod feet at Pine Ridge on October 30, 2018. The victim suffered a black eye and other bruising about her head and face as a result of the assault.
This case was investigated by the Bureau of Indian Affairs, Office of Justice Services. Assistant U.S. Attorney Heather Sazama prosecuted the case.
Dreamer was immediately turned over to the custody of the U.S. Marshals Service.
Physician Group and Related Company Agree to Repay over $800,000 to Medicare for Unnecessary ServicesRead the Press Release
United States Attorney Matthew D. Krueger announced today that VPA, P.C. (VPA), and its management services affiliate, U.S. Medical Management (USMM), have agreed to pay $829,611 to the United States to resolve allegations that VPA and USMM billed Medicare for unnecessary physician visits.
VPA provides physician services for the elderly and other adults at their residences in twelve states, including Wisconsin. USMM provides management services for VPA, including billing services. The United States alleges that VPA and USMM routinely caused VPA’s physicians to conduct patient visits that were not medically necessary and then billed Medicare (through USMM) for those unnecessary visits. The government contends that VPA and USMM thus obtained over $800,000 from Medicare to which they were not entitled. The visits at issue occurred in Wisconsin from January 1, 2013 through March 31, 2016. VPA and USMM have agreed to repay Medicare for these visits.
“This settlement ensures that medical providers bill the Medicare program only for services that patients truly need,” stated United States Attorney Krueger. “It also ensures that the Medicare program will recoup its losses.”
“Medicare providers are not entitled to charge Medicare for services that patients do not need,” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General – Chicago Region. “The OIG will continue to work with our federal, state and local partners to protect vital taxpayer dollars.”
Assistant United States Attorney Michael Carter represented the government in this matter, and the OIG assisted in the investigation. The settlement agreement states allegations only; the defendants do not admit liability for the allegations.
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Oil Tanker Owner, Operator, and Chief Engineer Convicted for Obstruction of Justice and Concealing Deliberate PollutionRead the Press Release
Nikolaos Vastardis, Evridiki Navigation Inc., and Liquimar Tankers Management Services Inc., were convicted by a federal jury in Wilmington, Delaware, of violating the Act to Prevent Pollution from Ships, falsifying ship’s documents, obstructing a U.S. Coast Guard inspection, and making false statements to U.S. Coast Guard inspectors. The crimes were committed in order to conceal Vastardis’ deliberate bypassing of required pollution prevention equipment in order to illegally discharge oil-contaminated bilge waste overboard from the foreign-flagged oil tanker Motor Tanker (M/T) Evridiki.
“This case demonstrates that those who pollute our oceans and deliberately mislead Coast Guard officials will be brought to justice,” said Assistant Attorney General Jeffrey Bossert of the Justice Department’s Environment and Natural Resources Division. “The Department of Justice will continue to support the important work of the Coast Guard to deter deliberate vessel pollution.”
“The Coast Guard is committed to protecting the safety of the marine environment and our living marine resources,” said Rear Adm. Keith Smith, commander, 5th Coast Guard District. “Today’s conviction highlights our dedication to working with the Department of Justice to investigate and successfully prosecute those who violate the law and pollute our oceans and waterways.”
The M/T Evridiki was an 899 foot Liberian-flagged oil tanker owned by Evridiki Navigation and operated by Liqumar Tankers Management Services. Vastardis was the Chief Engineer of the M/T Evridiki. On March 10, 2019, the ship arrived in the Big Stone Anchorage, within Delaware Bay, for the purpose of delivering a cargo of crude oil. The following day, the ship underwent a U.S. Coast Guard inspection to determine, among other things, the vessel’s compliance with international environmental pollution prevention requirements.
The jury found that during the inspection, Evridiki, Liquimar, and Vastardis tried to deceive Coast Guard inspectors regarding the use of the ship’s oily water separator (OWS), a required pollution prevention device. Under the International Convention for the Prevention of Pollution from Ships (MARPOL), an international treaty to which the U.S. is a party, only bilge waste containing less than 15 parts per million (ppm) oil can be discharged overboard and must be first run through an OWS and oil content meter (OCM) to ensure that no waste containing more than 15 ppm oil is discharged. During the Coast Guard inspection, Vastardis operated the equipment with unmonitored valves that trapped fresh water inside the OCM’s sample line so that its oil sensor registered zero ppm instead of what was really being discharged overboard. However, historic OCM data recovered during the inspection proved that the OCM was being tricked and bypassed. When the Coast Guard opened the Evridiki’s OWS, they found it was fouled with copious amounts of oil and soot.
Each defendant was convicted of all four felony counts including knowingly failing to maintain an accurate oil record book, in violation of the Act to Prevent Pollution from Ships; obstruction of justice; obstruction of the Coast Guard’s inspection; and making a materially false statement to the Coast Guard concerning how the OWS was operated at sea.
U.S. District Court Judge Richard G. Andrews for the District of Delaware presided over the trial and will conduct sentencing on a date to be determined.
Senior Litigation Counsel Richard A. Udell and Senior Trial Attorney Kenneth E. Nelson, both with the Environmental Crimes Section of the U.S. Department of Justice, represented the government at trial. Assisting in the prosecution were Trial Attorney Joel La Bissonniere with the Environmental Crimes Section, Assistant U.S. Attorney Edmond Falgowski for the District of Delaware, and Lieutenant Commander Ben Robinson, attorney with the Coast Guard’s Office of Maritime and International Law. The Coast Guard’s Investigative Service investigated the case with assistance from the Coast Guard’s Sector Delaware Bay and Marine Safety Detachment in Lewes, Delaware.
Ocala Convicted Felon Sentenced to More Than 5 Years in Federal Prison on Federal Firearms ChargeRead the Press Release
Ocala, Florida – Senior United States District Judge John Antoon II today sentenced Twon Deshay Kinsler (28, Ocala) to 5 years and 10 months in federal prison for possessing a firearm as a convicted felon. The court also ordered Kinsler to forfeit two handguns and ammunition used during the offense. Kinsler had pleaded on October 2, 2019.
According to court documents, on May 7, 2019, City of Ocala police officers responded to a call from a homeowner about an unknown man shooting firearms in a backyard of a residential area. They located Kinsler, who was sweating profusely and wearing a bulletproof vest, in the backyard of the residence. Kinsler had illegal drugs in his pockets and two loaded firearms at his feet. One of the firearms had previously been reported stolen. A gunshot residue test also confirmed the presence of gunpowder on Kinsler’s hands.
At the time, Kinsler was a convicted felon and therefore prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Ocala Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Ocala Armed Career Criminal Sentenced to 15 Years in Federal Prison for Firearm and Narcotics OffensesRead the Press Release
Ocala, Florida – U.S. District Judge John Antoon today sentenced Daprix Devon Gadson (29, Ocala) to 15 years in federal prison for possessing a firearm as an armed career criminal and for possessing methamphetamine with the intent to distribute it. Gadson had pleaded guilty on September 5, 2019.
According to the plea agreement, on April 16, 2019, Gadson led officers from the Ocala Police Department on a high-speed vehicle chase when they attempted to pull him over for a traffic offense. After fleeing for approximately two miles, Gadson crashed his vehicle into a stop sign, disabling the car. Gadson then fled on foot, but was soon apprehended and arrested. During a subsequent search of Gadson’s vehicle, officers recovered a loaded semi-automatic handgun, 55 rounds of ammunition, and at least 20 grams of methamphetamine. At the time of his arrest, Gadson had 13 prior felony convictions, including 5 prior serious drug offenses. As a previous convicted felon, he is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Ocala Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney William S. Hamilton.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Officer Safety Top Priority of U.s. Justice DepartmentRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that the United States Department of Justice has awarded $460,810.27 to 77 local law enforcement agencies in the Eastern District of North Carolina to reimburse them up to 50 percent of the cost of body armor vests purchased for law enforcement officers through the Bulletproof Vest Partnership Program. (see attached list of agencies) Additionally, Pitt County received $100,000.00 under the Body Worn Camera Policy and Implementation Program. This funding will enable them to improve their capacity to gather evidence and protect the safety of law enforcement officers and citizens.
The Law Enforcement Safety and Wellness Research and Evaluation Program is used to address safety, health and wellness priorities through research and evaluation. The Research Triangle Institute received $549,260.00 under this program.
“The importance of protecting those who protect us cannot be overstated,” said Mr. Higdon. “The Department of Justice continues to demonstrate this through programs like these that provide funding for both the physical and emotional well-being of our brave men and women who protect us all every day.”
Norton Doctor Pleads Guilty to Illegally Prescribing Prescription DrugsRead the Press Release
Abingdon, VIRGINIA – United States Attorney Thomas T. Cullen and Virginia Attorney General Mark Herring announced that Dr. Raymond Michael Moore, 61, of Wise, Va., who had a medical practice in Norton, Va., pleaded guilty yesterday in United States District Court in Abingdon, to fourteen federal charges, including illegally prescribing more than 25,000 oxycodone pills, more than 17,000 hydrocodone pills, and more than 10,000 benzodiazepine pills; obtaining drugs by fraud; health care fraud; making a false statement to law enforcement; and failing to maintain required records.
“The public places great trust in physicians to act as gatekeepers to the powerful prescription drugs that have come to plague our communities,” First Assistant United States Attorney Daniel P. Bubar said today. “When they choose greed over their important obligation to help heal people, we will aggressively prosecute these doctors and seek to remove their ability to contribute to the opioid epidemic.”
According to evidence, Moore issued prescriptions for opioids and benzodiazepines without a legitimate medical purpose and beyond the bounds of medical practice. In addition, Moore originally told law enforcement that controlled substances found during execution of search warrants were returned from patients and were to be destroyed. He later admitted those controlled substances were for his personal use.
Pursuant to his plea agreement, Moore will pay more than $50,000 in restitution to Virginia Medicaid, will forfeit more than $100,000, and agreed to never again be a medical provider.
Sentencing was scheduled for March 26, 2020, at 2:00 p.m., before United States District Judge James P. Jones. At sentencing Moore faces a maximum sentence of imprisonment for a term of 80 years and a maximum fine of $4.25 million.
Special Assistant United States Attorney M. Suzanne Kerney-Quillen, a Virginia Assistant Attorney General assigned to the Attorney General’s Major Crimes and Emerging Threats Section, is prosecuting the case for the United States. The case was investigated by the Drug Enforcement Administration’s Tactical Diversion Squad, the Virginia State Police, and the Southwest Virginia Drug Task Force. Assistance with the search warrants was provided by the Norton Police Department, Big Stone Gap Police Department, Wise County Sheriff’s Office, Bristol Police Department, Wise Police Department, Martinsville Police Department, Buena Vista Police Department, Virginia Medicaid Fraud Control Unit, the Wise County Commonwealth’s Attorney, and the United States Department of Justice’s Appalachian Regional Prescription Opioid (ARPO) Strike Force.
New Orleans Man Sentenced to 77 Months for Being a Felon in Possession of FirearmsRead the Press Release
NEW ORLEANS - U.S. Attorney Peter G. Strasser announced that on December 19, 2019 KEVIN CRAWFORD (“CRAWFORD”), age 34, of New Orleans, was sentenced to 77 months imprisonment by Chief United States District Court Judge Nannette Jolivette Brown for being a prohibited person in possession of firearms. Additionally, CRAWFORD was ordered to serve three (3) years of supervised release and pay a $200.00 special assessment fee.
According to court documents, on April 12, 2018, New Orleans Police Department officers conducted a proactive patrol near 6100 N. Claiborne Ave. As the officers approached the area, CRAWFORD quickly walked away from a gold Infiniti sedan. Inside the sedan was an SKS, 7.62 x 39 mm caliber, semi-automatic rifle which was equipped with two extended magazines. CRAWFORD later admitted that he was the owner of the Infiniti.
On June 17, 2018, members of the New Orleans Police Department encountered CRAWFORD near 447 N. Rampart Street. This time, CRAWFORD drove a silver colored Infiniti (w/ a stolen temporary tag). When CRAWFORD returned to the vehicle, the officers approached to question him but he ran away. The officers apprehended CRAWFORD at the 1000 block of St. Louis Street. Inside the silver Infiniti was a chrome and black colored handgun sticking out from under the driver’s side car seat. The firearm was a stolen loaded Ruger Model P345, .45 caliber semi-automatic handgun. Due to his felon status, federal law prohibited CRAWFORD from possessing firearms.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. Attorney Strasser praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Orleans Police Department in investigating this matter. Assistant United States Attorney Duane A. Evans is prosecuting the case.
New Jersey Resident Sentenced for Threatening to Murder A United States Congressman and His StaffRead the Press Release
CAMDEN, N.J. – A New Jersey resident was sentenced yesterday to 87 months in prison for threatening to murder former U.S. Rep. Frank LoBiondo and members of the congressman’s staff, U.S. Attorney Craig Carpenito announced.
Joseph Brodie, 40, of Millville, New Jersey, was previously convicted in Camden federal court on two counts of making threats to officials, officers and employees of the United States – specifically, for a telephone threat to murder LoBiondo’s chief of staff and an email threat to murder LoBiondo, his chief of staff, his veterans affairs liaison, and all of the other staff of the Mays Landing office. During the sentencing hearing yesterday, the Court determined that over the course of the prosecution, Brodie had obstructed justice and that there also was evidence to show he had intended to carry out his threats.
According to documents filed in this case and the evidence presented at trial:
In the spring of 2017, Brodie reached out to LoBiondo seeking assistance with the medical care and treatment that Brodie was receiving from the Veterans Administration. Over the course of the next few months, Brodie spoke and corresponded with the congressman’s Veterans Affairs Liaison and a caseworker, both of whom assisted him with appointments and meetings regarding his medical care. On Sept. 19, 2017, Brodie contacted the congressman’s office and spoke to the chief of staff on the phone. Brodie wanted the chief of staff to arrange a meeting with the congressman, but the chief of staff refused. During this phone call, Brodie became angry and ultimately threatened the life of the chief of staff – calling him “a dead man.”
Approximately an hour and a half later, Brodie sent an email to the congressman’s veterans’ affairs liaison as well as the caseworker, threatening their lives as well as the lives of the congressman and his staff in the Mays Landing Office. In this email, Brodie stated that he wanted to meet the congressman “face to face” and he pointed out “how easy” it was to find the congressman’s Mays Landing Office. Brodie also attached a terrain map of the area, with the area around the congressman’s office enlarged for detail and a red pinpoint location marker on the office. Writing about the map, Brodie stated, “[i]t even shows the environment and surrounding terrain, parking lots, wooded areas, etc., (like the kind a highly trained Combat Infantryman would use)…”
On the same day as the threats, Brodie sent text messages to his fiancée stating: “I threaten the life of a Congressman’s Chief of Staff. I’m pretty sure the Secret Service are going to investigate.” He also wrote that he was “prepared” for any law enforcement officers who might respond to his home. He wrote, “I’ll give them a chance to leave. If not, it’ll be First Blood Part II Type Shit (if you never saw that Rambo movie).” Brodie also wrote, “I won’t surrender. It’s not in me.” The same day, Brodie spoke to his fiancée on the phone and told her that he was going to travel to an address in New Jersey, that he had GPS coordinates in his car, that he was going to kill LoBiondo’s chief of staff, and that there was going to be a “blood bath.”
One week later, in a statement recorded by the FBI, Brodie confessed to having made the phone threat to the chief of staff on Sept. 19, 2017, and to having sent the email threat on Sept. 19, 2017.
The evidence showed that at the time Brodie made these threats, Brodie owned several firearms and a large amount of ammunition at his home.
U.S. Attorney Craig Carpenito credited special agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; special agents of the U.S. Capitol Police, under the direction of Chief Steven Sund; officers from the N.J. State Police, under the direction of Col. Patrick J. Callahan; and the Cumberland County Prosecutor’s Office, under the direction of Prosecutor Jennifer Webb-McRae, with the investigation leading to yesterday’s sentencing.
The government is represented by Assistant U.S. Attorneys Sara A. Aliabadi and Jason Richardson, of the Camden office.
Defense counsel: Gina Amoriello, Esquire, Westmont, NJ and Philadelphia, PA
Nevada Man Indicted on Attempted Coercion of a Minor and Travel for Sex ChargesRead the Press Release
PITTSBURGH - A resident of North Las Vegas, Nevada, has been indicted by a federal grand jury in Pittsburgh on charges of Attempted Coercion and Enticement of a Minor to Engage in Illegal Sexual Activity and Travel With Intent to Engage in Illicit Sexual Conduct, United States Attorney Scott W. Brady announced today.
The three-count Indictment, returned on Dec. 17 and unsealed today, named Renad Bautista, age 30, as the sole defendant.
According to the Indictment, from in and around April 2018, until on or about December 9, 2019, Bautista used the Internet to knowingly attempt to entice a minor to engage in illegal sexual activity. The Indictment further alleges that on from on or about December 5, 2019 until on or about December 9, 2019, Bautista travelled for the purpose of engaging in illicit sexual contact.
The law provides for a maximum total sentence of not more than life in prison, a fine of $750,000.00 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the West Mifflin Police Department conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
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.justice.gov/psc.
Montgomery Doctor Convicted on Drug Distribution, Health Care Fraud, and Money Laundering ChargesRead the Press Release
Montgomery, Alabama – On Thursday, December 19, 2019, a federal jury convicted Dr. Richard A. Stehl, 59, of Montgomery, Alabama, on 94 counts of unlawfully distributing controlled substances, two counts of health care fraud, and five counts of money laundering, announced United States Attorney Louis V. Franklin, Sr, DEA Assistant Special Agent in Charge Clay Morris, and HHS-OIG Special Agent in Charge Derrick L. Jackson. In reaching its verdict, the jury found Dr. Stehl guilty on each of the 101 counts at issue in the case.
The trial evidence showed that, from 2010 through 2018, Stehl operated a medical practice called Healthcare on Demand. For most of that time, the practice was located at 201 Winton M. Blount Loop in Montgomery—just off of Taylor Road. At his practice, Stehl prescribed addictive controlled substances, including hydrocodone cough syrup, Adderall, Xanax, Klonopin, Valium, and Ativan, despite knowing no legitimate medical purposes existed to support these prescriptions. Stehl also required his patients to return for monthly office visits if they wanted refills on their medications. After doing nothing more than giving the patient a refill, Stehl would bill the patient’s insurance company for the cost of a 25-minute office visit and a moderately complex physical examination. Finally, Stehl laundered the proceeds of his drug distribution and health care fraud through a web of shell corporations, business entities registered in the names of family members, and investment accounts. In doing so, Stehl attempted to hide the approximately $1,000,000.00 he was generating each year from his medical practice. Stehl even went so far as to hide in excess of $70,000.00 in cash in a filing cabinet in his garage.
During the trial, the jury heard from ten of Stehl’s former patients. Each patient received multiple controlled substance prescriptions from Stehl. Several of the patients either developed addictions while seeing Stehl or had existing addictions worsened as a result of the supposed medical treatment Stehl provided. One patient stated that she would wait four hours to see Stehl and, by the time she made it to the examination room, she would demand that Stehl give her a prescription and let her leave, which he would then do. Another described driving in excess of four hours to see Stehl because she knew that Stehl would give her the drugs that she wanted. A third patient stated that Stehl gave her routine steroid injections, even though she reported to Stehl that she was allergic to steroids. After receiving several injections from Stehl, this patient wound up in the hospital.
Following these convictions, Stehl faces a significant sentence that could keep him in prison for the rest of his life, as well as substantial fines. The Court could also require Stehl to forfeit to the government his medical office building, his residence, the proceeds of an investment account containing over $400,000.00, and the cash found in his garage.
“Dr. Stehl put profit over patient care,” stated United States Attorney Franklin. “Over the past few years, my office has worked hard to take unnecessary prescription drugs out of medicine cabinets and off of the streets. I hope that this case reinforces the message that medical professionals like Dr. Stehl who use their prescription pads to become drug dealers will be held accountable. I am grateful to our law enforcement partners for their tireless work investigating this case. This verdict is a testament to their dedication.”
“Yesterday, another physician who has abandoned his Hippocratic Oath was dealt a substantial blow with guilty verdicts on over 100 counts of criminal activity,” stated DEA Assistant Special Agent in Charge Clay Morris. “Thanks to a jury of his peers, the United States Attorney's Office, and our law enforcement partners, Dr. Stehl is no longer a source of dangerous and addictive drugs in our community. Dr. Stehl's shameless disrespect for the law and for the safety of his patients has now been dealt with. He is no longer a threat and remains where he belongs— behind bars.”
“A doctor is entrusted with caring for his patients, not pushing unnecessary drugs and services on patients,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “Dr. Stehl continuously put his financial gain above the health and safety of our local residents. HHS-OIG continues to focus resources on those who divert and unnecessarily prescribe drugs for profit and abuse.”
“The Alabama Board of Medical Examiners and the Medical Licensure Commission of Alabama are charged with protecting the health and safety of our citizens of this great State of Alabama,” stated William M. Perkins, Associate Executive Director for the Alabama State Board of Medical Examiners. “This agency is proud to be in partnership with the many state and federal agencies that participated in this important prosecution.”
The Drug Enforcement Administration and Health and Human Services-Office of the Inspector General investigated this case, with assistance from the Alabama Board of Medical Examiners. They were also aided by the Internal Revenue Service-Criminal Investigation. Additional assistance was provided by the Alabama Law Enforcement Agency, the Millbrook Police Department, the Opelika Police Department, the Montgomery Police Department, and the United States Marshals Service. Assistant United States Attorneys Jonathan S. Ross, Megan A. Kirkpatrick, and Alice S. LaCour prosecuted the case, along with Assistant United States Attorneys R. Rand Neeley and Brett Talley.