Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Thursday 19 December 2019
Idaho man sentenced to prison for possessing meth for distributionRead the Press Release
MISSOULA—An Idaho man who admitted possessing meth for distribution after the vehicle in which he was riding crashed in Bozeman was sentenced today to 54 months in prison and five years of supervised release, U.S. Attorney Kurt Alme said.
Robert David Barclay, Jr., 42, of Pocatello, ID, pleaded guilty in August to possession with intent to distribute meth.
Chief U.S. District Judge Dana L. Christensen presided.
The prosecution said in court records that Barclay was arrested on May 7 and that law enforcement found 329 grams, or about 11 ounces, of meth in his backpack. A Montana Highway Patrol trooper who was watching traffic on Interstate 90 from the median near the Belgrade interchange, saw a sedan approaching at what appeared to be faster than the speed limit. The trooper pulled out to follow the sedan when it abruptly exited the interstate. After a high-speed chase toward Bozeman at rates nearing 90 mph, the trooper discontinued the pursuit for safety reasons.
Citizens reported a crash near the Costco parking lot and a man carrying a black backpack. A Gallatin County Sheriff’s deputy who was nearby responded and saw a man fitting the description provided by the Costco loading docks. A foot chase began and the man, identified as Barclay, was arrested for obstructing a peace officer. During a search of Barclay’s backpack at the county’s detention center, officers found 12 bags of meth, which totaled about 329 grams of nearly pure meth.
Assistant U.S. Attorney Tom Bartleson prosecuted the case, which was investigated by the Missouri River Drug Task Force, the Montana Highway Patrol, the Gallatin County Sheriff’s Office and the FBI.
The case is part of Project Safe Neighborhoods (PSN), which 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.
XXX
Husband and Wife Sentenced to Prison for Attempting to Bilk the IRS out of $1.3 MillionRead the Press Release
CHICAGO — A husband and wife have been sentenced to federal prison for stealing the identities of at least ten people and using the information to file fraudulent tax returns seeking more than $1.3 million in refunds.
TILLMAN LIGGINS III, 50, of Joliet, was sentenced Tuesday to five years and four months in prison. His wife, CHINITA WILLIAMS-LIGGINS, 39, of Joliet, was sentenced in July to three and a half years in prison. The couple was also ordered to pay $331,154 in restitution to the IRS.
U.S. District Judge Robert W. Gettleman imposed the sentences in federal court in Chicago.
The sentences were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Kathy A. Enstrom, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.
“Without the compliance of taxpayers with our country’s tax laws, the federal government would essentially cease to function,” Assistant U.S. Attorney Kalia Coleman argued in the government’s sentencing memorandums. “The honest taxpayers must shoulder a disproportionate amount of the tax burden, and fewer necessary government services and benefits can be provided when some people cheat the IRS out of substantial sums of money.”
Liggins III and Williams-Liggins each pleaded guilty earlier this year to one count of wire fraud and one count of aggravated identity theft. The couple admitted in plea agreements that they obtained personal identifying information, including names, Social Security numbers, and dates of birth, of at least ten individuals without their knowledge or consent. They used that information to prepare and file false and fraudulent individual federal income tax returns (Forms 1040) for the tax years 2011, 2012, 2013, and 2014.
In total, the pair caused to be filed with the IRS at least 219 false and fraudulent tax returns seeking refunds of approximately $1,323,793. As a result of the scheme, the IRS deposited approximately $331,154 in fraudulent refunds into bank accounts controlled by the couple and others.
Huntington Man Sentenced to Prison for Gun CrimeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man was sentenced to federal prison for a gun crime, announced United States Attorney Mike Stuart. Jeremy Adam Bartram, 27, was sentenced to 51 months in prison for being a felon in possession of a firearm.
Bartram previously admitted that on July 6, 2019 he was pulled over by the West Virginia State Police in the area of 16th Street Road in Huntington. He admitted that there was a handgun in the bag at his feet in the vehicle. Bartram was prohibited from possessing a firearm because of his felony conviction for Arson in the Third Degree in Wayne County, West Virginia.
The West Virginia State Police conducted the investigation. United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Stephanie Taylor handled the prosecution.
Follow us on Twitter: SDWVNews and USAttyStuart
###
Hultgren Construction, L.L.C., Ordered to Dissolve & Pay Restitution to Victims of Building CollapseRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that Hultgren Construction, L.L.C., of Sioux Falls, South Dakota, appeared in federal court for sentencing following its conviction for Willful Violation of the Occupational, Safety, and Health Act Causing Death to an Employee. U.S. District Judge Karen E. Schreier presided over the sentencing hearing.
Hultgren Construction, L.L.C., was sentenced to 1 year of probation. During that time, the company was ordered to dissolve and comply with all of the bankruptcy proceedings, including paying restitution to the victims of the building collapse. The company was not fined because all of the assets were used to pay restitution to the victims. As required by federal law, the company was also ordered to pay a $50 assessment to the Federal Crime Victims Fund.
According to court documents, on December 2, 2016, Hultgren Construction, L.L.C., an employer under the provisions of the Occupational Safety and Health Act, willfully violated the standards and regulations relating to instruction and training on proper demolition methods promulgated and prescribed under the Act, and said violation caused the death of Ethan McMahon.
At times relevant to this case, Hultgren Construction, L.L.C., was a company providing residential and commercial construction services throughout South Dakota, and the company employed approximately eleven (11) employees in South Dakota. On or about and at times prior to December 2, 2016, Hultgren Construction, L.L.C., the controlling and exposing employer, did not sufficiently instruct employees in the recognition and avoidance of unsafe conditions related to temporary shoring supporting a multi-story building. Employees were tasked to remove two adjoining exterior load bearing walls between the ground level and first floor. Employees were not sufficiently instructed in the means and methods for building and installing a temporary shoring system to transfer the building loads from the foundation to the shoring system. In the morning hours of December 2, 2016, an employee was fatally injured as a result of removing the last segment of the load bearing wall, thereby causing the structure to collapse.
Hultgren Construction’s acts and omissions exhibited a plain indifference to a known and obvious hazard. Hultgren Construction knowingly permitted employees to engage in demolition activities without sufficient training to ensure that a licensed engineering professional first prepared an engineering analysis to assess the structural stability of the building, including the planned temporary shoring systems.
This case was investigated by the Department of Labor – Office of the Solicitor, and the U.S. Attorney’s Office. The case was prosecuted by Assistant U.S. Attorney Jeremy R. Jehangiri.
Houston man learns fate for kidnapping and killing postal employeeRead the Press Release
HOUSTON – A 32-year-old resident of Houston has been ordered to federal prison following his conviction of kidnapping in connection with the death of a U.S. Postal Service (USPS) employee, announced U.S. Attorney Ryan K. Patrick.
Don Gaines pleaded guilty April 26, admitting he choked the victim and drove her to Louisiana, ultimately shooting her in the head.
Today, U.S. District Judge Alfred H. Bennett granted the government’s request for an upward departure of the U.S. Sentencing Guidelines and ordered Gaines to serve a 540-month sentence.
The court called the crime one of the most gruesome he has had to deal with in his 11 years on the bench. He considered the manner in which the victim died and her last moments of life as well as the defendant’s need for self-preservation over the life of the mother of his children. In imposing the sentence, the court remarked that if the crime had been a mistake, an argument gone horribly wrong, Gaines had the option of calling it off and turning around. “Instead, you doubled down,” he said, noting he then walked her into the woods and shot her.
The defense tried to argue the facts did not warrant a sentence applicable to 1st degree murder. The government disagreed, contending Gaines deliberately decided the victim would die Sept. 11, 2017.
At the hearing, the court heard from Gaines’ former girlfriend who became emotional, describing how Gaines had also choked her in June 2017. He had threatened her after she denied his sexual advances and said he would kill her. The victim’s father also took the stand and described his wonderful and loving daughter and mother to her children.
The defense attempted to portray Gaines as a troubled person who had a difficult life.
The government asked the court to consider what the victim endured at the hands of the defendant and called Gaines a cold-blooded killer.
“Postal inspectors’ duties include protecting employees and investigating violent crimes committed against them,” said Inspector in Charge Adrian Gonzalez of the U.S. Postal Inspection Service (USPIS). “While these types of crimes are rare, when they do occur, we will aggressively investigate to find those responsible and bring them to justice. This investigation was a partnership between local, state and federal law enforcement agencies who worked together tirelessly to bring justice to the victim and her family.”
The investigation identified Gaines, also a postal employee, as the person who abducted the victim as she left from the U.S. Postal Station - Houston distribution Center on Aldine Bender Road Sept. 11, 2017. The victim’s family reported her missing shortly thereafter. Gaines and the victim had previously been in a relationship and had two children together.
At the time of his plea, Gaines admitted he choked the woman in her car near his residence in Houston. After he strangled her, Gaines believed she was dead and transported her to Louisiana. However, during the trip, she regained consciousness, and Gaines drove her to a secluded area off the highway. At that time, he parked the car and walked the victim into the woods where he shot her in the head with a firearm. He abandoned her body and drove back to Houston in her car the same day.
Investigators identified location data on the victim’s car through a GPS device.
Evidence mirrored Gaines’ statements. Authorities located the victim’s car at his residence the same date he claimed to have choked her. Her car also traveled along Interstate 10 through Louisiana and returned to Houston. A video further showed Gaines purchased gas on the return drive to Houston after he disposed of the victim’s body.
Ultimately, the investigation led to the remote location in Louisiana where authorities discovered skeletal remains Oct. 12, 2017. Subsequent DNA analysis confirmed those remains were of the victim.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
USPIS led the investigation with the assistance of the Houston Police Department, Harris County Sheriff’s Office, Jefferson Davis Parish (Louisiana) Sheriff’s Office, Louisiana State Police, Calcasieu Parish (Louisiana) Coroner’s Office, Forensic Anthropology and Computer Enhancement Services Laboratory at Louisiana State University and the Georgia Bureau of Investigation.
Assistant U.S. Attorneys John Jocher and James McAlister prosecuted the case.
Hartford Gang Member Involved in Violent Kidnapping and Assault Sentenced to More Than 13 Years in PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that PEDRO CARILLO, also known as “P,” 25, of Hartford, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 161 months of imprisonment, followed by five years of supervised release, for a kidnapping and violent assault he committed with four other members of the Almighty Latin Kings Nation (“Latin Kings”).
According to court documents and statements made in court, on January 26, 2018, Carillo’s brother, Anthony Carillo, and another associate, Josue Franco, lured an individual (“the victim”) to a residence on Benton Street in Hartford. When the victim entered the residence, Jonathan Otero and Luis Pitt were waiting. Anthony Carillo, Franco, Otero and Pitt then threatened, assaulted and tortured the victim, prevented him from leaving the residence, and demanded a ransom. After the victim was restrained, Pedro Carillo arrived at the residence and participated in the ongoing assault and torture of the victim, which included burning him with cigarettes, pistol-whipping him and throwing a dart into his foot.
The defendants forced the victim to call someone to deliver money in exchange for his release. The victim then called his father. Franco grabbed the phone and told the victim’s father if he did not deliver $500 they were going to kill his son. After the call, Otero put a bullet in the victim’s hand and told him he would use that bullet to shoot him in the head if the victim could not get the ransom money. The victim was then transported to different locations in Hartford in an effort to collect ransom before he was eventually released.
The victim was treated at a hospital for a fractured cheekbone, a facial laceration, a concussion and other injuries.
Pedro Carillo’s criminal history includes two felony assault convictions and he was on probation for those offenses when he committed this violent assault. In June 2017, he was seriously wounded in a gang-related shooting.
Pedro Carillo is currently detained. On September 13, 2019, he pleaded guilty to one count of assault with a dangerous weapon in aid of racketeering, and one count of using, carrying and brandishing a firearm in furtherance of a crime of violence.
The other four defendants also pleaded guilty to related charges. On December 10, 2019, Otero was sentenced to 154 months of imprisonment; on December 16, 2019, Franco was sentenced to 132 months of imprisonment, and on December 18, 2019, Anthony Carillo was sentenced to 125 months of imprisonment. Pitt is detained while awaiting sentencing.
This matter has been investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Gang Task Force and the Hartford Police Department. The Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Major Crimes Division has provided critical assistance to the investigation.
The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Hamden Man Charged with Attempting to Travel to Fight for IsisRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, John C. Demers, Assistant Attorney General for National Security, and Brian C. Turner, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that KEVIN IMAN McCORMICK, 26, of Hamden, has been charged by indictment with attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
McCormick was arrested on October 21, 2019, and charged by federal criminal complaint. On October 30, a federal grand jury in New Haven returned an indictment charging McCormick with the offense. The affidavit in support of the criminal complaint was unsealed today.
As alleged in court documents and statements made in court, in October 2019, McCormick made several statements to others expressing a desire to travel to Syria and to fight for ISIS. In one conversation, McCormick stated “I gotta fight bro, because those people, Abu Masa and ISIL, they fought for me bro, I know it, I can feel it, in my heart. So it’s my time to fight . . . It just is what it is bro, it’s just my – it’s just my time to go bro.” When McCormick was asked to elaborate on where he would like to travel, McCormick responded, “I don’t know, I don’t know bro – it’s gotta be like Syria. Where ISIL is at….whichever place is easiest, whichever place I can get there the fastest, the quickest, the easiest, and where I can have a rifle and I can have some people bro. That’s what I need, I need a rifle and I need some people, I need Islamic law, I need, that’s what I need, because if I have these things, it’s going to be very hard to kill me.”
It is also alleged that, on October 12, 2019, McCormick attempted to board a flight from Connecticut to Jamaica, but was prevented by the U.S. Department of Homeland Security. McCormick subsequently told an individual that he wanted to travel to Jamaica, and then onward to Syria to join ISIS. He also indicated that he wanted to acquire weapons.
It is further alleged that, on October 19, 2019, McCormick made a video during which he pledged allegiance to ISIS and its leader, Abu Bakr Al-Baghdadi. Also on that date, he purchased a plane ticket from Toronto, Canada, to Amman, Jordan. On October 21, 2019, McCormick was arrested after he traveled to a small private airport in Connecticut where he expected to board a plane that would fly him to Canada.
McCormick has been detained since his arrest.
The charge of conspiring to provide material support to a designated foreign terrorist organization carries a maximum term of imprisonment of 20 years.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by Federal Bureau of Investigation’s Joint Terrorism Task Force (JTTF) with the assistance of the Transportation Security Administration (TSA).
The FBI’s JTTF includes participants from the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Internal Revenue Service – Criminal Investigation Division, Naval Criminal Investigative Service, U.S. Marshals Service, U.S. Citizenship and Immigration Services, Connecticut State Police, Connecticut Department of Correction, Metropolitan Transportation Authority Police Department, Norwich Police Department, Hartford Police Department, Stamford Police Department, Norwalk Police Department, Town of Groton Police Department, UConn Police Department, Yale Police Department, and New York Police Department.
This case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito and Trial Attorney Justin Sher from the Counterterrorism Section of the Justice Department’s National Security Division.
Grand Jury Returns Indictment Adding Drug, Firearms and Money Laundering Charges Against Alleged Fentanyl DealerRead the Press Release
PITTSBURGH, Pa. – A federal grand jury returned a third superseding indictment against two residents of Pittsburgh, PA, on charges of violating the federal narcotics, firearms and money laundering laws, United States Scott W. Brady announced today.
The nine-count third Superseding Indictment, returned on Dec. 17, named Lynell Guyton, age 30, and Drevon Woodson, age 22, as the defendants.
According to the third Superseding Indictment, Guyton and Woodson conspired to distribute and possess with intent to distribute varying quantities of an analogue of fentanyl, from May, 2017, to August, 2017. Guyton is charged with possession with intent to distribute the same. According to information provided to the Court, U.S. Immigration and Customs Enforcement’s (ICE)/ Homeland Security Investigations (HSI), assisted by the United States Postal Inspection Service, the Pennsylvania State Police and the Pittsburgh Bureau of Police, including the Pittsburgh Police SWAT Team, executed a federal search warrant at 7 Bond Street in Pittsburgh’s West End. During the entry, a table located near where the individuals were present inside the residence was overturned causing the powder narcotics to become airborne. Several SWAT operators experienced dizziness and numbness. In all, 18 officers were transported to UPMC-Mercy for evaluation before being medically cleared. In the kitchen of the residence, law enforcement located a plate with a significant quantity of white power on it and a number of packaged stamp bags and empty stamp bags. Officers observed stamp bags bearing both the "Ferrari" stamp and the "Louis Vuitton" stamp.
In addition, the third Superseding Indictment charges that Guyton possessed with intent to distribute a fentanyl analogue on July 20, 2017, and August 2, 2017, and that he attempted to possess with intent to distribute 10 grams or more of a fentanyl analogue on June 1, 2017. In addition, Guyton is charged with two counts of possession of firearms by a convicted felon, and with two counts of sending international wire transfers to promote the drug trafficking.
The law provides for maximum total sentences ranging from up to 10 years to up to life in prison as well as certain statutory minimum sentences starting at 5 years in prison. Fines ranging from $250,000 to up to $20,000,000 may also be imposed. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of each defendant. Guyton and Woodson are currently detained pending resolution of these charges.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The U.S. Immigration and Customs Enforcement’s (ICE)/ Homeland Security Investigations (HSI), assisted by the United States Postal Inspection Service, the Pennsylvania State Police and the Pittsburgh Bureau of Police, including the Pittsburgh Police SWAT Team, conducted the investigation leading to the third Superseding Indictment in this case.
A third superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
###
Government Contractor Charged in Scheme to Defraud U.S. Department of Veterans AffairsRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that Dale Johnson, 57, of Anchorage, has been charged with one count of conspiracy for his role in a scheme to defraud the U.S. Department of Veterans Affairs (VA) into issuing Service-Disabled Veteran-Owned Small Business (SDVOSB) government “set-aside” contracts to unqualified private contractors. A plea agreement has also been filed in this case, and Johnson is currently awaiting his Change of Plea hearing to be scheduled.
Johnson’s co-conspirators, Richard Vaughan, 72, and Donald Garner, 47, have been charged in a separate 31-count indictment with bribery and wire fraud charges in connection with the scheme.
Vaughan was a VA contract officer representative and was responsible for awarding and managing numerous contracts awarded by the VA, including certain SDVOSB “set-aside” contracts. Johnson was the owner of ADALECO General LLC, and Garner was the owner of Veteran Ability, which were both government contractors that provided various services to the U.S. government, including the VA in Anchorage.
The United States Small Business Administration (SBA) is an independent agency of the federal government responsible for aiding, counseling, assisting and protecting the interests of small business concerns. The SBA and VA administered a program to award SDVOSB “set-aside” contracts, which could only be awarded to small business concerns owned and controlled by qualified Service-Disabled Veterans (SDVs).
In October 2014, ADALECO had an SDVOSB certification, while Veteran Ability did not. According to court documents, Johnson falsely certified to the VA that his company ADALECO would perform a majority of the work on a snow removal contract awarded in October 2014, which was a “set-aside” contract for a certified SDVOSB contractor. The investigation revealed, however, that it was actually Garner and Veteran Ability, along with other non-SDVOSB companies, who performed 100% of the work under the snow removal contract. Johnson received 5-10% of every payment under the contract as a “kickback” for allowing Garner to use ADALECO’s SDVOSB certification, which amounted to approximately $54,302. Johnson also made other misrepresentations to the VA in furtherance of the fraudulent scheme.
The Federal Bureau of Investigation (FBI), the U.S. Department of Veterans Affairs Office of the Inspector General, Small Business Administration Office of the Inspector General, and General Services Administration Office of the Inspector General, conducted the investigation leading to the charges in this case. This case is being prosecuted by Assistant U.S. Attorneys Ryan D. Tansey and Kyle Reardon.
The charges against Johnson are merely allegations, and he is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Georgia Man Sentenced to 30 Years for Drug TraffickingRead the Press Release
ASHEVILLE, N.C. – U.S. District Judge Martin Reidinger sentenced Alejandro Javier Chaves, 44, of Douglasville, Georgia, to 360 months in prison, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Judge Reidinger also ordered Chaves to serve five years under court supervision after he is released from prison.
Joining U.S. Attorney Murray in making today’s announcement are Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Asheville District Office; Gregory Forest, United States Marshal for the Western District of North Carolina; Director Robert Schurmeier of the North Carolina State Bureau of Investigation; Sheriff Chip Hall of the Jackson County Sheriff’s Office; Sheriff Robert Holland of the Macon County Sheriff’s Office; and Sheriff Quentin Miller of the Buncombe County Sheriff’s Office.
According to filed court documents and today’s sentencing hearing, in 2017, Chaves was serving a sentence in the Georgia Department of Corrections related to nine felony convictions, including convictions for trafficking methamphetamine and threatening to kill a member of law enforcement. Between January and February 2017, while incarcerated in Georgia, Chaves used a contraband cell phone to orchestrate multi-ounce methamphetamine deals with a narcotics trafficker located in the Western District of North Carolina. Following an investigation into that criminal activity, Chaves was indicted in October 2017 by a grand jury in Asheville, and was transferred to the Western District of North Carolina to face the federal charges.
In May 2018, Chaves pleaded guilty to possession with intent to distribute methamphetamine. Court records show that, while he was in federal custody at the Buncombe County Detention Center, Chaves used a phone within the detention center to orchestrate additional methamphetamine deals, accounting for another four and half kilograms of methamphetamine. According to court records, Chaves arranged the drug deals between the date he entered his guilty plea and the date of his sentencing hearing.
Chaves remains in custody. Upon designation of a federal facility he will be transferred to the custody of the federal Bureau of Prisons. All federal sentences are served without the possibility of parole.
The DEA in Asheville conducted the investigation. The U.S. Marshals Service, the SBI, the Jackson County Sheriff’s Office, the Macon County Sheriff’s Office, and the Buncombe County Sheriff’s office also assisted with the case.
Assistant U.S. Attorney Thomas Kent of the U.S. Attorney’s Office in Asheville prosecuted the case.
Gary, Indiana Man Sentenced to PrisonRead the Press Release
HAMMOND-Edward T. Bell, 30, of Gary, Indiana, was sentenced by Judge Simon to 87 months imprisonment following his guilty plea to possession of firearms by a convicted felon, announced U.S. Attorney Kirsch.
According to documents in the case, during July and August 2018, the FBI and ATF purchased nine firearms, including a fully automatic pistol, from Edwards in East Chicago and Gary, Indiana. Thereafter, in August 2018, during a search of Bell’s vehicles in Gary, Indiana, law enforcement recovered eleven semi-automatic pistols, one fully automatic pistol, 72 grams of crack cocaine, and synthetic marijuana. Bell has prior felony convictions for possession of cocaine and distribution of ecstasy.
This case is the result of the investigative efforts of the Federal Bureau of Investigation-Chicago Field Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives-Chicago Field Division. The case was prosecuted by Northern District of Indiana Assistant U.S. Attorney Nicholas J. Padilla.
###
Four Separate Indictments Brought Against Residents of Fairfield, Stockton, Vallejo, and Mount Shasta charged with Being a Felon in Possession of a FirearmRead the Press Release
SACRAMENTO, Calif. — As part the U.S. Attorney’s Office for the Eastern District of California’s strategy to reduce violent crime by focusing on firearms prosecutions, U.S. Attorney McGregor W. Scott announced that a federal grand jury returned indictments today in the following cases involving firearms offenses:
Roderick Darnell Harris, 45, of Fairfield, was charged with being a felon in possession of a firearm. According to court documents, on Oct. 19, police officers tried to stop Harris, who was riding his bicycle on the sidewalk in violation of a city ordinance. Harris disregarded the officer’s many requests to yield at first, but eventually stopped. A loaded 9 mm pistol was concealed in his jacket. Harris cannot lawfully possess firearms or ammunition because he has previously been convicted of five felony offenses.
This case is the product of an investigation by the Fairfield Police Department with assistance from the FBI’s Solano County Violent Crimes Task Force and the Solano County District Attorney’s Office.
Fred Lavender, 44, of Stockton, was charged with being a felon in possession of a firearm. According to court documents, on Oct. 31, Lavender was arrested for a parole violation. In the car he had been driving, police officers found a Glock Model 23 handgun. Lavender has several prior convictions – including a misdemeanor conviction for domestic violence battery – which prohibit him from possessing a firearm.
This case is the product of an investigation by the San Joaquin County District Attorney’s Office, the Stockton Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Michael W. Redding is prosecuting the case.
Joshua Wayne Thompson, 25, of Vallejo, was charged with being a felon in possession of a firearm. According to court documents, on Nov. 18, Thompson had several outstanding warrants. When law enforcement officers saw Thompson in front of his home in Vallejo, they tried to apprehend him. Thompson got into a car and tried to flee, ramming a law enforcement vehicle in the process. When Thompson was arrested, he had a pistol with an extended magazine in his waistband. Thompson cannot lawfully possess firearms or ammunition because he has previously been convicted of a felony offense.
This case is the product of an investigation by U.S. Marshals Service, ATF, Vallejo Police Department, and California Highway Patrol.
Daniel Andrew Walker, 60, of Mount Shasta, was charged with being a felon in possession of a firearm. According to court documents, in April 2018, Walker filed a Petition for Certificate of Rehabilitation, seeking a court recommendation for a retroactive pardon of his prior felonies. As part of his application, Walker submitted a questionnaire in which he indicated that he did not possess any firearms. Walker has multiple felony convictions with both felony and misdemeanor convictions for domestic violence and is prohibited from possessing firearms. An ensuing investigation by the Siskiyou County District Attorney’s Office uncovered that Walker did in fact possess multiple firearms. In March 2019, law enforcement officers executed a search warrant at Walker’s home. In total, officers seized 39 firearms, including 10 weapons without serial numbers, six short-barreled AR-style rifles, multiple shotguns and handguns, and an improvised silencer.
This case is the product of an investigation by Siskiyou County District Attorney’s Office, California Department of Justice, Siskiyou County Sheriff’s Office, Siskiyou County Child Protection Services, and ATF. Assistant U.S. Attorney James Conolly is prosecuting the case.
If convicted, each of the defendants face a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information, please see https://www.justice.gov.
Four Men Sentenced to More Than 100 Years in Prison, Collectively, for Violent Crime in Nashville Public HousingRead the Press Release
NASHVILLE, Tenn. – December19, 2019 – Four Nashville men were sentenced to federal prison last week by Chief U.S. District Judge Waverly D. Crenshaw, Jr., for their roles in violent crime incidents connected to Nashville public housing developments, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
The four men were found responsible for a murder, multiple armed robberies and home invasions, shootings, and illegal firearms possession connected to the JC Napier public housing development in Nashville in 2015.
Aweis Haji-Mohamed, aka Son Son, 31, previously pleaded guilty and was sentenced to 35 years in prison. He was responsible for committing three armed robberies, including a robbery of Isaiah Starks a/k/a Blue, in the J.C. Napier Homes public housing development, and later shot and killed Starks in February 2015. He also committed other shootings, including in January 2015, at a home in east Nashville that was occupied by women and children, including a disabled child. Haji-Mohamed fired several shots during that incident as part of an ongoing dispute relating to a stolen gun. Prior to these incidents, Haji-Mohamed had been ordered deported to his home country, Somalia, from the United States and was under an order of supervision by U.S. Immigration and Customs Enforcement.
Marquis Brandon aka Dummy, 25, was sentenced to 25 years in prison after being convicted at trial in April 2018, of illegal firearms possession and committing an armed home invasion. In January 2015, Brandon entered a home in north Nashville and hoisted a male occupant onto the wall while brandishing a pistol. He took cash and a MAC-10 type firearm in that home invasion which he committed with Santez Bradford. At sentencing, Brandon was found responsible for committing other commercial robberies, including the armed robbery of a Cricket Wireless store near the J.C. Napier community with Haji-Mohamed in January 2015; an armed robbery of a Shell gas station in which he fired shots at a clerk the following week; and a robbery at a north Nashville home construction site in which two construction workers were shot in February 2015. One of the victims was shot in the throat and the other was permanently paralyzed from the shooting. Brandon was found to have threatened potential witnesses and also provided Haji-Mohamed the pistol which Haji-Mohamed used to murder Starks.
Santez Bradford a/k/a Wacco, 25, previously pleaded guilty and was sentenced to 22 ½ year in prison for illegal firearms possession and the January 2015 home invasion, which he committed with Brandon. During that home invasion, Bradford forced a man to his knees at gun point and threatened to shoot him. He was also responsible for shooting at a group of people at close range in the J.C. Napier area in December 2014 and attempted to prevent a victim whom he had tried to rob from testifying against him.
Charles Braden, aka Manstinka, 26, also pleaded guilty and was sentenced to 22 years in prison for illegal firearms possession; two drug-related robberies which he committed with Haji-Mohamed in January 2015; and committing an armed home invasion in the J.C. Napier community in March 2015. In that home invasion, Braden targeted a residence he believed would contain a substantial amount of drugs, which he planned to take, but invaded the wrong home while he was high on heroin. Braden terrorized the occupants, and threatened to kill a man, two women, and several young children who lived in that home. He was found responsible for attempting to tamper with one of the victims of that home invasion. Braden was later arrested after being wounded in a shootout in the J.C. Napier community in March 2015.
The multi-year investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Metropolitan Nashville Police Department. Assistant United States Attorney Sunny A.M. Koshy prosecuted the cases. More than 70 individuals have been convicted in the probe since 2015.
# # # # #
Fort Smith Man Sentenced to 35 Years in Federal Prison for Production of Child PornographyRead the Press Release
Fort Smith, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Jay Don Gifford, age 26, of Fort Smith, Arkansas, was sentenced today to 420 months in federal prison followed by a lifetime of supervised release on one count of Production of Child Pornography and one count of Offense by a sex Offender. The Honorable P. K. Holmes, III presided over the sentencing hearing in the United States District Court in Fort Smith.
According to court records, in October 2018, officers with the Northwest Arkansas Internet Crimes Against Children taskforce received information from the National Center for Missing and Exploited Children (NCMEC) that at ninety (90) files of suspected child pornography were uploaded to Dropbox by an individual. Further investigation showed the individual to be Gifford, a registered sex offender who was residing in Fort Smith, Arkansas. Law enforcement located and interviewed Gifford who admitted to taking explicit photographs and videos of two minors.
Gifford was indicted in February of 2019 on federal charges and entered a guilty plea to Counts 1 and 7, Production of Child Pornography and Offense by a Sex Offender in August 2019.
This case was investigated by Arkansas State Police and Homeland Security Investigations. Assistant United States Attorney Carly Marshall prosecuted the case for the United States.
Former shipbuilding project manager sentenced to more than 4 years in prison for $1.5 million false invoice schemeRead the Press Release
Seattle – A former project manager for Portland, Oregon-based shipbuilder Vigor Marine LLC, was sentenced today in U.S. District Court in Seattle to 51 months in prison for his scheme to defraud his employer out of approximately $1.5 million, announced U.S. Attorney Brian T. Moran. SHELTON LAYNE SMITH, 50, of Portsmouth Virginia was indicted in June 2019 and pleaded guilty to wire fraud on September 26, 2019. At the sentencing hearing, U.S. District Judge Robert S. Lasnik found that SMITH had obstructed justice by making false statements to FBI agents and urging a co-conspirator to lie to investigating agents. SMITH was also ordered to pay $1,483,802 in restitution.
“This fraud could have resulted in the shipbuilder being barred from government contracts – a key source of shipbuilding work,” said U.S. Attorney Brian Moran. “In order to line his pockets, this defendant put the future of his employer and its 2,300 person work force at risk.”
According to records filed in the case, in 2016 and 2017, SMITH served as the project manager on the renovation of two U.S. Coast Guard cutters called the “Bertholf” and the “Waesche.” The renovations took place at Vigor’s Seattle facility. SMITH was responsible for selecting vendors and approving payments to them for equipment and services related to the renovations. Smith admitted in a plea agreement that, in this role, he fabricated invoices from a fictitious company called “Marine Service Solutions” (MSS). The fraudulent invoices caused Vigor to pay out approximately $1.5 million for work that was never done and equipment that was never provided. SMITH used the fraud proceeds for his own purposes, including to finance his gambling activities.
SMITH’s scheme to defraud was an elaborate charade. SMITH persuaded a legitimate Vigor vendor to serve as a “pass-through” entity that received invoices from MSS, marked up the cost of the services, and passed on the fraudulent expenses to Vigor. The local vendor was not aware that Marine Service Solutions was not a real company. SMITH also misled a long-time acquaintance in Mississippi into setting up a bank account for MSS, cashing the checks, and funneling most of the proceeds to SMITH. In emails, SMITH posed as the Mississippi man, making it appear as if the Mississippi man was the owner of MSS.
When questioned by the FBI, SMITH repeatedly lied about MSS and encouraged his acquaintance in Mississippi to stick to a false story about the company.
Vigor terminated SMITH in 2017, after discovering that SMITH had mishandled the Bertholf project. SMITH’s successor discovered the fraud, and Vigor reported the crime to the FBI.
The case was investigated by the FBI. The case was prosecuted by Assistant United States Attorney Seth Wilkinson.
Former felons imprisoned after Lakewood Park rap video shootRead the Press Release
HOUSTON – The last of 11 Houston men convicted in a conspiracy to unlawfully possess a firearm by a felon has been sent to prison, announced U.S. Attorney Ryan Patrick.
Joshua Amos, 31, pleaded guilty July 11. Today, U.S. District Judge Nancy Atlas ordered him to prison for 30 months. Also sentenced this week were the remaining 10 defendants who had also pleaded guilty to the federal charges that resulted from a rap video filmed in Northeast Houston’s Lakewood Park March 28, 2018.
The lead rapper in that video - Warren Brown II aka NFL Cartel Bo, 30 - received a 78-month term of imprisonment. Ivory Vershone Brown, 31, was the last to plead guilty and was also sentenced yesterday, receiving 36 months in prison, while Keithric Lewis, 30, was ordered to serve a 60-month sentence.
Roland Labome, 34, Garrett Winn, 30, and Devonte Haynes, 26, all received 30 months, while Kenneth Fontenot 22, and Marces Randolph, 30, were both ordered to serve 24-month terms of imprisonment.
Jerrell Grant, 37, and Frenton Price, 33, received respective terms of 36 months and 20 months.
At the hearings that began Dec. 16 and concluded today, the court heard additional evidence that detailed the unlawful possession of eight loaded firearms by convicted felons during the filming of a rap video.
During the video shoot, numerous criminal street gang members – all convicted felons - gathered in the park to film a music video promoting gangs in Houston. All brandished firearms on the basketball court. After receiving a 911 call, authorities responded to the scene to find that a majority of the group had fled the area. Law enforcement subsequently located eight loaded firearms abandoned at the park. The music video was released May 20, 2018, via YouTube which WorldStarHipHop.com promoted. From the video, authorities were able to identify each person who was in possession of a firearm by comparing each gun recovered at the scene to the ones they held in the video.
With the exception of Winn, Amos, Price, Randolph and Labome, all have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. The others had been previously released but were permitted to voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Houston Police Department conducted the investigation. Assistant U.S. Attorneys Britni Cooper and Lisa Collins are prosecuting the case.
Former Tribal Supervisor Pleads Guilty to Embezzlement from Sisseton-Wahpeton Tribal OrganizationRead the Press Release
United States Attorney Ron Parsons announced that a former supervisor of a tribal government department was sentenced on December 12, 2019, by U.S. Magistrate Judge William D. Gerdes.
Jerome Renville, age 42 of Peever, South Dakota, pleaded guilty to one count of misdemeanor embezzlement and theft from an Indian Tribal Organization. Renville was sentenced to one year of probation and ordered to pay $6,000 in restitution. He was also ordered to pay $25 to the Federal Crime Victims Fund.
According to court documents, between on or about January 2015 and March 2019, in the District of South Dakota, Renville embezzled, willfully misapplied, willfully permitted to be misapplied monies, funds, credits, goods, assets, and other property belonging to the Sisseton-Wahpeton Oyate Sioux Tribe, an Indian Tribal Organization. Renville was the Supervisor of the Tribe’s Facilities Maintenance for over 5 years. While serving in that position, he willfully misapplied money and funds belonging to the Tribe; Renville used and converted those monies and funds for his own personal use.
The investigation was conducted by the Federal Bureau of Investigation and the U.S. Attorney’s Office. Assistant U.S. Attorney Jeremy Jehangiri prosecuted the case.
The U.S. Attorney’s Office’s Guardians Project is a federal law enforcement initiative to coordinate efforts between participating agencies, to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those who are responsible for adversely affecting those living in South Dakota’s Indian country communities. The Guardians Project is another step of federal law enforcement’s on-going efforts to increase engagement, coordination, and positive action on behalf of tribal communities. Led by the U.S. Attorney’s Office, the participating federal agencies include: Federal Bureau of Investigation; the Offices of Inspector General for the Departments of Interior, Health and Human Services, Social Security Administration, Agriculture, Transportation, Education, Justice, and Housing and Urban Development; Internal Revenue Service, Criminal Investigation Division; U.S. Postal Inspector Service; U.S. Postal Service, Office of Inspector General
For additional information about The Guardians Project, please contact the U.S. Attorney’s Office at (605) 330-4400. To report a suspected crime, please contact law enforcement at the federal agency’s locally listed telephone number.
Former Postal Employee Who Stole Mail is SentencedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that CAREEMA LEWIS, 33, of Waterbury, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to three years of probation for stealing mail while employed by the U.S. Postal Service. Judge Bolden ordered Lewis to perform 100 hours of community service while she is on probation.
According to court documents and statements made in court, between September 2018 and January 2019, while she was employed as a postal worker at the U.S. Post Office in Plymouth, Lewis stole numerous pieces of mail, specifically, greeting cards that contained gift cards or other items of value. When confronted by investigators in January 2019, Lewis admitted that she stole “between 20 and 50” gift cards from the mail. Lewis subsequently surrendered approximately 10 gift cards that she had stolen from greeting cards, and approximately 17 pieces of stolen mail that she had in her vehicle and her purse.
On September 26, 2019, Lewis pleaded guilty to one count of theft of mail by a postal employee.
Restitution will be determined after additional court proceedings.
This matter was investigated by the U.S. Postal Service Office of the Inspector General and was prosecuted by Assistant U.S. Attorney Margaret M. Donovan.
Individuals who believe they are a victim of mail theft may file a complaint by calling 888-USPS-OIG or by clicking this link.
Former Pittsburgh Resident Sentenced to Nearly 5 Years for Robbing Four Banks and a Convenience StoreRead the Press Release
PITTSBURGH, PA - A former resident of Pittsburgh, Pennsylvania, has been sentenced in federal court on bank robbery and Hobbs Act robbery charges, United States Attorney Scott W. Brady announced today.
United States District Judge Donetta W. Ambrose imposed the sentence on Patrick Acierno, 34, who received a total of 57 months’ imprisonment, followed by 36 months’ supervised release.
According to information presented to the court, on March 5, 2019, Acierno entered KeyBank, located at 9605 Harmony Drive, Ingomar, PA 15127, dressed in a black hooded sweatshirt, black mask, sunglasses, and blue latex gloves, proceeded toward the teller stations where two tellers were working and took $7,743, including eight $20.00 bait bills. Acierno fled on foot and was observed by one of the tellers getting into a blue Toyota Rav 4. Franklin Park Police later identified the Toyota Rav4, and apprehended the defendant after a brief vehicle chase. Inside the vehicle, law enforcement officials found the items Acierno wore during the robbery, and $7,743 in U.S. currency, including the bait bills from the Key Bank.
In addition to the March 5, 2019 KeyBank robbery, Acierno was sentenced for committing three additional bank robberies on September 12, 2018, at the PNC Bank at 20940 Route 19, in Cranberry, on November 12, 2018, at the West View Savings Bank, 2566 Brandt School Road, in Wexford, and December 5, 2018, at the WesBanco Bank, 3531 Broadhead Road, in Monaca.
Additionally, Acierno was sentenced for robbing the Cogos located at 1400 Pennsylvania Avenue, also in Monaca, on October 11, 2018. Acierno was ordered to pay restitution to the victim banks and convenience store, which totals $26,423 from the banks and $630 from CoGos.
Assistant United States Attorney Rebecca L. Silinski prosecuted this case on behalf of the government.
The Federal Bureau of Investigation, the Cranberry Police Department, the Franklin Park Police Department, the Center Township Police Department, the McCandless Police Department, and the Monaca Police Department conducted the investigation leading to the prosecution of Acierno.
Former New Orleans Church Official Pleads Guilty to Wire FraudRead the Press Release
NEW ORLEANS – CHARLES WILLIAMS, JR. (“WILLIAMS”), age 50, of New Orleans, Louisiana, entered a plea of guilty on December 18, 2019 to Wire Fraud, in violation of Title 18, United States Code, Section 1343.
According to documents filed in Federal Court, the defendant was elected Senior Warden of St. Luke’s Episcopal Church (“St. Luke’s”) located at 1222 North Dorgenois Street in New Orleans. In his role as Senior Warden, WILLIAMS was responsible for paying all of St. Luke’s bills including insurance, salaries, and utilities. WILLIAMS took over the finances of the church and reduced or eliminated other church members’ access to church finances shortly after becoming the Senior Warden at St. Luke’s. WILLIAMS did not share church bank statements with other church members in an effort to conceal his embezzlement of church funds and he transferred church funds from one bank account to another account before withdrawing the funds. During his tenure, WILLIAMS embezzled approximately $89,000 from St. Luke’s in his capacity as Senior Warden. WILLIAMS deposited much of the money into his various Chase accounts and used some of the stolen money to support his pizza restaurant located in the Esplanade Mall.
On August 29, 2018, FBI special agents interviewed WILLIAMS. During the interview, WILLIAMS said he used cash withdrawn from a St. Luke’s account to fund a $2,500 Chase cashier check dated February 21, 2018, with Remitter: St. Luke’s Episcopal Church/Operating Account. When the agents specifically asked whether bank records would show the money for the cashier’s check came from a St. Luke’s account, he denied that bank records would show the $2,500 coming from the church account. Further, he told the agents that the $2,500 had come from his personal account. The investigation showed, however, that on February 21, 2018, he had withdrawn $2,900 from St. Luke’s operating account ending x1224 and then used $2,500 of those funds to purchase the above described cashier’s check made payable to the Esplanade Mall for the benefit of his pizza restaurant. Further, he used St. Luke’s money for his business and personal use.
WILLIAMS faces a maximum penalty of twenty (20) years imprisonment. Upon release from prison, WILLIAMS faces up to three (3) years of supervised release and a fine of up to $250,000.
WILLIAMS will be sentenced by U.S. District Court Judge Lance M. Africk on April 15, 2020.
U.S. Attorney Peter G. Strasser praised the work of the Federal Bureau of Investigation. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Supervisor of the Financial Crimes Unit.
Former Greeneville man pleads guilty to embezzlement schemeRead the Press Release
Greeneville, Tenn. – On December 19, 2019, Shain A. Chappell, 48, currently of Helena, Montana, entered a guilty plea to one count of wire fraud and one count of filing a false tax return in the United States District Court for the Eastern District of Tennessee at Greeneville. Sentencing has been set for May 1, 2020, at 9:00 a.m., in United States District Court in Greeneville.
Chappell faces a term of up to 23 years in Federal prison, $500,000 in fines, and supervised release of three years.
As part of the written plea agreement, Chappell waived an indictment by a Federal Grand Jury and agreed to plead guilty to the aforementioned charges. Chappell admitted to using his position as controller to embezzle over $1 million from his former employer, Greentech Environmental, LLC, in Johnson City. Chappell began employment as controller in October 2015, and by July 2017, had devised a scheme where Greentech would falsely pay for his personal credit card purchases by showing the payments as purchases of inventory in Greentech’s books and records.
During the two year period, Chappell embezzled money by causing Greentech to pay for lavish lifestyle expenditures. Chappell’s luxury purchases included clothing, shoes, jewelry, meals, vacations, sports memorabilia, athletic and concert tickets, firearms, a Harley Davidson motorcycle, a hot tub, and significant charitable contributions. In addition to stealing from Greentech, Chappell filed false tax returns for calendar years 2017 and 2018 that failed to include income from the money stolen from his employer, resulting in additional income tax owed of over $350,000.
“The federal law enforcement agencies are to be congratulated for their detection, investigation and successful prosecution of this individual. The devastation caused by economic white collar crimes from embezzlement negatively impacts many people. Our office will continue in our efforts to uncover these crimes and prosecute the individuals responsible” said United States Attorney J. Douglas Overbey.
"The FBI is committed to investigate and pursue those who commit fraud for personal gain and we take that responsibility very seriously. We along with our law enforcement partners will continue to seek justice and hold accountable those who use illegal means and criminal behavior to take advantage of others” said Special Agent in Charge Joseph E. Carrico.
“IRS Criminal Investigation agents play an important role in fraud and embezzlement investigations due to complex financial transactions that can take time to unravel, “said Matthew D. Line, Special Agent in Charge, Internal Revenue Service, Charlotte Field Office. “Mr. Chappell abused his position as controller and stole from his employer by embezzling company funds for personal gain. In addition to cheating his employer, Mr. Chappell hid these gains from the IRS and cheated taxpayers by failing to pay taxes on this ill-gotten income.”
The criminal information and plea agreement are the result of an ongoing investigation by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigations.
Mac D. Heavener, III, Assistant United States Attorney represented the United States.
###
Former Federal Government Contract Officer Pleads Guilty to Accepting BribesRead the Press Release
WASHINGTON – Ronnie Simpkins, 67, a former government contract officer with the General Services Administration (GSA), pled guilty today to a federal bribery charge stemming from a scheme in which he accepted bribes from government contractors from August 2011 to August 2017.
The announcement was made by U.S. Attorney Jessie K. Liu, Timothy M. Dunham, Special Agent in Charge, FBI Washington Field Office, Criminal Division, and Eric D. Radwick, Acting Special Agent in Charge, National Capital Region, Office of Investigations.
Simpkins, of Lusby, Md., pled guilty in the U.S. District Court for the District of Columbia. The charge carries a statutory maximum of 15 years in prison and potential financial penalties. Under federal sentencing guidelines, Simpkins faces a likely range of 18 to 24 months in prison and a fine of up to $75,000. He also has agreed to pay approximately $12,108 in a forfeiture money judgement. The Honorable Trevor N. McFadden scheduled sentencing for March 18, 2020.
According to the government’s evidence, from 1989 until May 2019, Simpkins was employed by the General Services Administration (“GSA”) as a Contract Specialist, informally known as a Contracting Officer, in procurement related positions, and between August 2013 and May 2019, he worked as a Contract Specialist assigned to GSA’s headquarters in Washington, D.C. As a Contract Specialist, Simpkins was deemed to be a public official as defined by 18 U.S.C. Section 201(a)(1), and as a senior Contract Specialist.
From February 2010 to August 2017, Simpkins was assigned to a sub-division of the Federal Acquisition Service, which oversees the administration of GSA Schedule 70 contracts. “Schedules” are long-term government-wide contracts with commercial companies that provide access to commercial products and services at fair and reasonable prices to the government. “Schedule 70 contracts” provide IT solutions, services, and software to federal, state, and local customer agencies. GSA pre-negotiates the vendors’ pricing, terms, and conditions, to streamline the acquisition process while at the same time providing the best value to the end user agency.
Company A was a corporation owned by Person 1 and Person 2 and was located in Northern Virginia. At times during the relevant time-period, the company’s website included a link entitled: “GSA Schedule,” which emphasized for prospective customers that the company was awarded a GSA Scheduled contract. Advertising its GSA Schedule status was seen as benefiting Company A when it sought contracting opportunities with other federal agencies, as those agencies may have considered Company A’s GSA status and GSA pricing in fashioning their own contracts.
To maintain a GSA Schedule contract, Company A was required to have annual sales in excess of $25,000. GSA Schedule contracts are subject to cancellation if sales levels are not met. The annual sales requirement can be waived by the GSA Administrative Contracting Officer (“ACO”) for good cause after communicating with the contract vendor. If the contract vendor can demonstrate that it has potential, pending or unreported sales, the ACO normally will allow the contract to continue and withdraw the contract cancellation. In addition, contractors, such as Company A, are required to pay an Industrial Funding Fee (“IFF”) of 0.75% of all Schedule sales. The IFF is a fee to cover GSA’s cost of operating the Federal Supply Schedules program.
Simpkins administered and oversaw Company A’s GSA contracts for years, beginning on or about June 3, 2009, while Company A held a GSA contract, and continuing through August 2017 when GSA awarded Company A with a replacement contract. Simpkins’ duties included executing contract modifications and ensuring contract compliance. Company A maintained its GSA Schedule contract despite reporting no sales and not paying any IFFs since 2006.
Beginning in or around August 2011, and continuing through in or around August 2017, Simpkins received and agreed to receive from Person 1 and Person 2 things of value, including cash, meals, and furniture, in return for, when the opportunity arose, using his official position at GSA to help Company A through the performance of official action, aiding in the commission of a fraud on the United States, and acting or failing to act in violation of his official duty.
Simpkins met Person 1 and/or Person 2 over a dozen times at various restaurants in Northern Virginia, at Person 1 and Person 2’s residence, and other places, often outside of normal GSA business hours and on weekends. As Simpkins admitted to law enforcement, Person 1 and Person 2 paid for meals during their meetings at restaurants. During some of their meetings (Simpkins estimated 15 times), Simpkins accepted cash payments totaling approximately “thousands of dollars into the teens.” After receiving the cash, Simpkins often deposited some or all of it into his Navy Federal Credit Union account. During the relevant period, Simpkins deposited $9,750.00 in cash into that account, consisting of the cash payments he accepted from Person 1 and Person 2. In July of 2016, Simpkins also accepted furniture paid for by Person 1 and/or Person 2, valued at $2,358.91. Between the cash payments and furniture, not including meals paid for by Person 1 and/or Person 2, Simpkins admits to accepting at least $12,108.91 in things of value from Person 1 and Person 2.
In exchange for these things of value, oftentimes soon before or after the meetings with Person 1 and Person 2, Simpkins took official action and/or provided improper assistance to benefit Company A’s GSA Schedule contracts. Specifically, Simpkins recommended and signed Company A’s contracts with GSA, even though Company A failed to meet program requirements; willfully neglected to notify GSA, as he was obligated to do, when Company A’s contract under his supervision no longer met program requirements; and advised Company A about ways to avoid contract cancellation despite failing to meet GSA’s program requirements.
In announcing the plea, U.S. Attorney Liu, Special Agent in Charge Dunham, and Acting Special Agent in Charge Radwick, commended the work performed by those who investigated the case from the FBI’s Washington Field Office and GSA Office of Inspector General. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Amanda Rohde and Quiana Dunn-Gordon, former Assistant U.S. Attorney Denise Simmonds, and Assistant U.S. Attorney Virginia Cheatham, who is prosecuting the case.
Former Employee of NASA Contractor Convicted for Substituting Foreign Materials for Domestic Materials to Be Used by NASARead the Press Release
Orlando, Florida – A federal jury has found Seongchan “Steven” Yun (32, Redondo Beach, CA) guilty of providing a false document to a federal agency. Yun faces a maximum penalty of 10 years in federal prison. His sentencing hearing is scheduled for March 2, 2020.
Yun was indicted on March 13, 2019.
According to evidence presented at trial, Yun was an employee at CBOL Corporation, a company that provided parts and materials to the aerospace industry, including NASA. In the summer of 2014, Yun handled a contract that required CBOL to provide stainless steel tubing to carry hypergolic fuel (rocket fuel) for use in support of NASA’s Space Launch System/Orion project at Kennedy Space Center. The contract required that the steel tubing originate from the United States. During the procurement, Yun received steel tubing originating from China. Instead of replacing the tubing with materials from the United States, Yun covered up the foreign origin of the parts on documentation that accompanied the parts. He then caused the steel tubing to be shipped to the Kennedy Space Center, and later prepared a certification falsely certifying that the steel tubing conformed to all of NASA’s requirements. The steel tubing ultimately failed materials testing conducted by NASA regarding its suitability for use in NASA’s fueling programs.
“The NASA Office of Inspector General will continue to aggressively investigate those who undermine and defraud NASA efforts to build the SLS launch vehicle and it’s systems,” said Special Agent in Charge John Corbett, Central Field Office. “This jury verdict serves as a staunch reminder that such conduct will not be tolerated.”
This case was investigated by the NASA – Office of Inspector General and the Air Force Office of Special Investigations. It is being prosecuted by Assistant United States Attorney E. Jackson Boggs Jr.
Former Coraopolis Man Sentenced to 8 Years in Federal Prison for Distributing Fentanyl that Resulted in the Death of a Moon Twp. WomanRead the Press Release
PITTSBURGH – A former resident of Coraopolis, PA, was sentenced to eight years in prison to be followed six years of supervised release for distribution of fentanyl, United States Attorney Scott W. Brady announced today.
Cleo Maurice Bronaugh, age 42, was sentenced by United States District Judge Nora Barry Fischer. Bronaugh acknowledged as part of his guilty plea that the fentanyl he distributed resulted in the death of a Moon Township woman. Bronaugh has been detained since his initial appearance in federal court and will continue to remain detained pending his placement in the Bureau of Prisons.
According to information presented to the court, on March 5, 2017, Bronaugh delivered a quantity of fentanyl to an individual identified as L.T. in Moon Township, PA. Bronaugh attempted to warn L.T. and her family members of the potency of the fentanyl he distributed to her by leaving numerous phone messages. However, these messages did not reach L.T. in time and she ingested the fentanyl without any of the defendant’s warnings. L.T. was discovered by her family members the next day. The Allegheny County Office of the Medical Examiner later determined that L.T.’s death was due to fentanyl toxicity.
Assistant United States Attorneys Timothy M. Lanni is prosecuting this case on behalf of the government.
The Moon Township Police, the Allegheny County Police, the Allegheny County Office of the Medical Examiner and the Drug Enforcement Agency conducted the investigation that led to the Indictment in this case.
Former College Professor Sentenced to 10 Years for Enticement of A MinorRead the Press Release
CHARLOTTE, N.C. – Michael Edwin Dorcas, 56, of Huntersville, N.C., was sentenced today to 120 months in prison for enticement of a minor, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, U.S. District Judge Robert J. Conrad Jr. also ordered Dorcas to serve 30 years of supervised release and to register as a sex offender.
According to court documents and today’s court proceedings, on January 29, 2016, Dorcas befriended a 12-year-old female online and began chatting with her. Over the course of their communication, Dorcas – who knew the victim was 12 years old– suggested they communicate via video chat. Dorcas led the minor to believe that he was a 15-year-old male, and convinced the minor to use her web cam, which allowed him to see her. Dorcas lied to the minor, telling her that his video cam was not working, and instead sent her pictures of a teenage male claiming it was him. Court records show that during their exchange, Dorcas convinced the minor to expose herself by removing articles of clothing.
On April 7, 2016, agents with the North Carolina State Bureau of Investigation (SBI) executed a search warrant at Dorcas’ residence, and seized electronic devices. A forensic examination of the devices revealed that, in addition to the 12-year-old victim, Dorcas had chatted with other minors as well.
Dorcas pleaded guilty on February 28, 2019, to enticement of a minor. He will be ordered to report to the Federal Bureau of Prisons to begin serving his sentence upon designation of a federal facility. Federal sentences are served without the possibility of parole.
In making today’s announcement, U.S. Attorney Murray commended the SBI for their investigation of this case and thanked Homeland Security Investigations for the assistance.
Assistant United States Attorney Cortney Randall, with the U.S. Attorney’s Office in Charlotte, prosecuted the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorney’s Office and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Former Certified Registered Nurse Anesthetist at Ann Arbor VA Hospital Arraigned on Drug ChargesRead the Press Release
A former certified registered nurse anesthetist was arraigned today on an Indictment charging her with fraudulently obtaining controlled substances, including several opioids, U.S. Attorney Matthew Schneider announced today.
Schneider was joined in the announcement by Special Agent in Charge Gregg Hirstein of the Department of Veterans Affairs Office of Inspector General and Special Agent in Charge Keith W. Martin of the Drug Enforcement Administration, Detroit Field Division.
Charged in the indictment is Elizabeth A. Prophitt, CRNA, 38, of Saline, who previously worked at the VA Hospital in Ann Arbor.
As alleged in the Indictment, Prophitt utilized her position as a surgical nurse aesthesis to retrieved vials of controlled substance medications from hospital dispensing machines for purported use on patients. The purpose of obtaining these controlled substances was not for the legitimate treatment of patients, but rather for her own personal consumption and/or drug diversion.
It is alleged that Prophitt would retrieve medications on days when she was unscheduled to work or after normal working hours; retrieve medications for patients that were not on her surgery service; retrieve medications for surgeries that had been cancelled or had already been completed; retrieve more medication than required for a patient’s surgery and keep the unused portions; and falsify “waste” records to keep any unused medication instead of properly returning or disposing of the controlled substances. Prophitt exploited her knowledge of her employer’s internal controls to obtain these controlled substances, which would go unnoticed. From July 2018 to February 2019, she accessed more than 2200 vials of controlled substances such as fentanyl, hydromorphone, morphine and midazolam, which were believed to be obtained by fraud, misrepresentation and deceit.
An indictment is only a charge and is not evidence of guilt. Each 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 of a drug charges alleged in the Indictment, the defendant faces a maximum sentence of imprisonment of four years for each count of the Indictment, and a maximum fine of $250,000.
The case is being investigated by the VA Office of Inspector General and the DEA; and is being prosecuted by Assistant United States Attorneys Brandy R. McMillion. McMillion serves as the District’s Opioid Fraud Abuse and Detection Prosecutor as well as the Deputy-Chief of the Health Care Fraud Unit. The Opioid Fraud Abuse and Detection Unit is a Department of Justice initiative designating twelve special prosecutors across the country to focus on prosecuting medical professionals that are contributing to the nation’s opioid crisis.
Former CEO of Israeli Company Sentenced to 22 Years in Prison for Orchestrating Major International Binary Options Fraud SchemeRead the Press Release
The former CEO of the Israel-based company Yukom Communications, a purported sales and marketing company, was sentenced to 22 years in prison today for orchestrating a scheme to defraud investors who had purchased more than $100 million in financial instruments known as “binary options.”
Lee Elbaz, 38, a citizen of Israel, was sentenced by U.S. District Judge Theodore D. Chuang of the District of Maryland. On Aug. 7, 2019, after a three-week jury trial, Elbaz was found guilty of one count of conspiracy to commit wire fraud and three counts of wire fraud.
“This defendant targeted and defrauded thousands of victims, looting monies from retirees, veterans and other individuals, many of whom lost their entire savings,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Today’s sentence demonstrates that criminals who defraud U.S. investors will face serious consequences, no matter where in the world they commit their crimes.”
“Financial criminals like Elbaz and her co-conspirators are interested in one thing: taking money out of the pockets of unsuspecting investors for their own benefit. The FBI is dedicated to identifying and investigating fraud, no matter where the criminals are located, or how long it takes,” said Assistant Director in Charge Timothy R. Slater of the FBI’s Washington’s Field Office. “I’d like to thank our partners in this investigation, specifically the Israeli Police, and to encourage anyone who may have information about binary options fraud to come forward and report it to the FBI.”
According to the evidence presented at trial, Elbaz and her co-conspirators fraudulently sold and marketed binary options to investors located in the United States and throughout the world through two websites, known as BinaryBook and BigOption. The evidence showed that in her role as CEO of Yukom, Elbaz, along with her co-conspirators and subordinates, misled investors using BinaryBook and BigOption by falsely claiming to represent the interests of investors when, in fact, the owners of BinaryBook and BigOption profited when investors lost money; by misrepresenting the suitability of and expected return on investments through BinaryBook and BigOption; by providing investors with false names and qualifications and falsely claiming to be working from London; and by misrepresenting whether and how investors could withdraw funds from their accounts.
Representatives of BinaryBook and BigOption, working under Elbaz’s supervision, misrepresented the terms of so-called “bonuses,” “risk free trades” and “insured trades,” and deceptively used these supposed benefits in a manner that in fact harmed investors, the evidence showed.
Five co-conspirators who worked for Elbaz, including Liora Welles, Shira Uzan, Yair Hadar, Austin Smith, and Lissa Mel, have pleaded guilty to conspiring to commit wire fraud, and have been sentenced. Welles, Uzan, Hadar, and Smith all cooperated against Elbaz and testified at her trial in July 2019. In addition, an indictment charging an additional 15 of Elbaz’s alleged co-conspirators was unsealed in November 2019.
The FBI’s Washington Field Office investigated this case. Principal Assistant Chief Henry Van Dyck and Assistant Chiefs L. Rush Atkinson and Caitlin R. Cottingham of the Criminal Division’s Fraud Section are prosecuting the case. Assistant Chief Tracee Plowell and Trial Attorney Ankush Khardori of the Fraud Section previously prosecuted the case. The Criminal Division’s Office of International Affairs and the U.S. Commodity Futures Trading Commission also provided assistance in this investigation.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information at https://www.justice.gov/criminal-vns/case/lee-elbaz.
This investigation is ongoing.
Felon Sentenced to More Than 5 Years in Prison for Illegally Possessing a GunRead the Press Release
Ira Lee Wilkins, 38, of Tulsa, was sentenced Thursday in U.S. District Court for being a felon in possession of a Hi-Point C9 9 mm pistol and associated ammunition, announced U.S. Attorney Trent Shores.
Chief U.S. District Judge John E. Dowdell sentenced Wilkins to 70 months in federal prison.
“Felons are prohibited from possessing firearms, period. No ifs, ands, or buts. A central focus of our Project Safe Neighborhoods initiative is prosecuting felons who possess guns because they pose a threat to the security of our community,” said U.S. Attorney Trent Shores. “I commend the combined effort of law enforcement and Assistant U.S. Attorneys to ensure that fellow Oklahomans are safe.”
In May 2019, a local business contacted authorities after a disturbance involving the defendant. Officers from the Tulsa Police Department answered the call and discovered that Wilkins had outstanding warrants and was previously convicted of multiple felonies. Upon his arrest, officers found the loaded pistol in his front pants’ pocket.
The Tulsa Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorneys Scott Proctor and Shannon Cozzoni prosecuted the case.
Felon Sentenced for Possessing Firearm and Shooting at Police OfficersRead the Press Release
St. Louis, MO – Quentin Bryant, 32, of St. Louis, was sentenced to 60 months in prison today for felon in possession of a firearm. He appeared in federal court today before U.S. District Judge Catherine D. Perry.
According to court documents, on July 18, 2018, officers of the St. Louis Metropolitan Police Department responded to a call for an individual armed with a firearm in the 4400 block of West Pine. Officers observed Bryant and approached him. He began to run. During the foot pursuit, Bryant discharged his firearm at the officers who were required to return fire in defense of themselves and for the safety of the public. The foot pursuit ended when Bryant reach a dead end and threw his nine millimeter handgun to the ground.
“This case is another example of the everyday dangers the men and women of law enforcement face and the incredible courage and bravery they display day-in and day-out, said United States Attorney Jeff Jensen after today’s sentencing. “You have a choice when it comes to a gun. Pick it up or put it down. We want you to put it down. If you do, you save your life and the lives of others, including kids. If you don’t, you will be aggressively prosecuted federally. In the last year, this office has doubled the number of federal prosecutions of individuals who refused to put down the gun. Today’s sentence is another example of those efforts,” Jensen continued.
This case was investigated by the St. Louis Metropolitan Police Department. Assistant U.S. Attorney Tom Mehan is handling the case for the U.S. Attorney’s Office.
Federal Jury Finds South Charleston Man Guilty of Gun CrimeRead the Press Release
CHARLESTON, W.Va. – A federal jury convicted Paul William Martin, 34, of South Charleston, yesterday after a two-day trial, announced United States Attorney Mike Stuart. The jury found Martin guilty of being a felon in possession of a firearm on October 12, 2018.
“Martin had a laundry list of previous state and federal felony convictions,” said United States Attorney Mike Stuart. “Achieving convictions in felon in possession cases is critical to public safety by keeping guns out of the wrong hands. I want to thank the investigators and my prosecutors for their exemplary work in this case.”
Martin was previously indicted on being a felon in possession of a firearm due to previous convictions for possession of a stolen vehicle, forgery, daytime burglary, and fraudulent use of an access device in Kanawha County, West Virginia. Martin also had a previous federal conviction for being a felon in possession of a firearm in the Southern District of West Virginia. At trial, evidence revealed Jason Buzzard had picked up Martin at the Sheetz gas station in order to sell him firearms. Martin and Buzzard were stopped by officers with the South Charleston Police Department, who were able to locate and recover a .25 semi-automatic handgun and a .22 caliber revolver.
Buzzard pled guilty on September 23, 2019, and faces up to ten years in prison when sentenced on January 6, 2020. Martin faces up to ten years in prison when sentenced on March 11, 2020.
The investigation was conducted by the South Charleston Police Department with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
United States District Judge Joseph R. Goodwin presided over the trial. Assistant United States Attorneys L. Alexander Hamner and Andrew Tessman handled the prosecution.
Follow us on Twitter: SDWVNews and USAttyStuart
###
Fairbanks Woman Charged for Firearm Offenses and Attempted Credit Union RobberyRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that Tiffany Jamil Flenaugh, 29, of Fairbanks, has been named in two separate federal indictments for crimes including attempted credit union robbery, receipt of a firearm while under felony indictment, and possession of a stolen firearm. Flenaugh is currently in custody in Fairbanks, and is awaiting her first court appearance on the charges.
The federal indictment alleges that, on Nov. 19, 2019, Flenaugh was in possession of a stolen firearm, while knowingly under indictment by the State of Alaska for multiple felony offenses. Specifically, according to state court documents, Flenaugh allegedly stole a firearm from the Rabinowitz Courthouse in Fairbanks, which was being used as evidence for a trial in which Flenaugh was the defendant. It is alleged that Flenaugh then fled the courthouse with the firearm, a Taurus 450 Titanium .45 caliber revolver. Flenaugh was apprehended by officers with the Fairbanks Police Department shortly after, and the firearm was located in a nearby park.
A separate federal indictment alleges that, on Sept. 3, 2019, Flenaugh attempted to rob the Spirit of Alaska Federal Credit Union in Fairbanks.
If convicted of the firearm offenses, Flenaugh faces a maximum of up to ten years in federal prison for the most serious charges alleged. If Flenaugh is convicted of attempted credit union robbery, she faces a maximum of up to 20 years in federal prison. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Federal Bureau of Investigation (FBI), Fairbanks Police Department (FPD) and the Alaska State Troopers (AST) conducted the investigation leading to the charges against Flenaugh for her alleged firearm offenses. The FBI and FPD conducted the investigation leading to the charge against Flenaugh for attempted credit union robbery. Both cases are being prosecuted by Assistant U.S. Attorney Ryan D. Tansey.
The charges in the indictments are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Ex-Hampton Police Detective Pleads Guilty to Drug ConspiracyRead the Press Release
NEWPORT NEWS, Va. – A former Hampton police detective pleaded guilty yesterday to conspiracy to distribute cocaine.
According to court documents, Deangelo Freeman, 31 conspired with local drug dealers while he was a detective in the Special Investigations Unit of the Hampton Police Division. Specifically, Freeman was associated with a number of individuals who were selling large quantities of cocaine. These individuals included Alex Burnett who owned 9Rounds Gym in Hampton Town Center. Freeman admitted to providing information to Burnett about an ongoing federal criminal investigation. Freeman learned of this information while serving as a narcotics detective and participating in the investigation of Burnett. The information provided by Freeman included the identity of a confidential informant. Freeman provided the information to compromise the investigation and to help Burnett’s drug distribution activities.
Freeman pleaded guilty to conspiracy to distribute more than 500 grams of cocaine and faces a mandatory minimum sentence of five years in prison and a maximum of 40 years in prison when sentenced on April 23, 2020. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office; and Terry L. Sult, Chief of Hampton Police Division, made the announcement. after U.S. Magistrate Judge Robert Krask accepted the plea. Assistant U.S. Attorney Eric M. Hurt is prosecuting the case.
The Hampton Police Division has fully cooperated and provided significant assistance with this investigation. The Idaho State Police provided assistance with the arrest of Freeman in Idaho.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:17-cr-111.
Eleven people indicted for their roles in a bookmaking and money laundering conspiracyRead the Press Release
Eleven people were indicted in federal court for their roles in a conspiracy to operate an illegal gambling business and a conspiracy to launder monetary instruments.
Stephen Bellipario, aka Tony, 36, of Long Island, New York; Joseph Fowles, aka Matt, 36, of Seaford, New York; Amir Hugh Robinson, 47, of Sunny Isles Beach, Florida; Anthony Pinialis, 64 of Las Vegas, Nevada; Clinton Reider, 41, of Mentor on the Lake; Thomas Reed, 48 of Kirtland Hills, James Ovens, 50 of Willoughby; Michael Tutolo, 53 of Mentor; Maurey Presser, 61 of South Euclid; Alan Bambic, 44 of Painesville; and Ralph Robertson 57 of Chagrin Falls are all charged with conspiracy to operate an illegal gambling business and operating an illegal gambling business. Bellipario, Fowles, Robinson, Pinialis, Ovens, and Tutolo are also charged with conspiracy to launder monetary instruments.
“Identifying fraudulent schemes, including alleged gambling and money laundering enterprises, remains a priority of the Department of Justice and this U.S. Attorney’s Office,” said U.S. Attorney Justin Herdman. “Our partner agencies share in this commitment, which is certainly reflected in the work performed by the Internal Revenue Service and the United States Secret Service that led to these charges.”
“One of the U.S. Secret Service’s priorities is to safeguard the country’s financial system,” stated Jonathan Schuck, Special Agent in Charge of the U.S. Secret Service, Cleveland Field Office. “The U.S. Secret Service, IRS and United States Attorney’s Office were able to successfully collaborate to identify a large complex money laundering scheme that reaches not only domestically but internationally as well.”
“IRS Criminal Investigation is committed to unraveling complex financial transactions and money laundering schemes where individuals attempt to conceal the true source of their money," stated Bryant Jackson, Special Agent in Charge of IRS-Criminal Investigations’ Cincinnati Field Office. “Working collaboratively with the U.S. Secret Service and U.S. Attorney’s Office, IRS-CI will continue our efforts to ensure all those who participated in these schemes are brought to justice.”
The indictment alleges that the conspiracy was made up of bookmakers, more commonly known as bookies, operators of a bookmaking website, and money launderers. Bellipario and Fowles allegedly operated PremierPerHead.com (“PPH”), a gambling website based in Costa Rica. PPH allowed bookmakers to pay a weekly fee per active client account, known as a “pay per head” fee, and provided bookmakers in the Northern District of Ohio and elsewhere with access to an online gambling platform that their clients could use to place and track bets. Specifically, PPH is alleged to have allowed gambling clients to make bets on sporting events and other wagers via the website or by phone. PPH also allegedly tracked clients’ winnings and losses and maintained a dollar balance of the bookmakers’ client accounts.
The indictment alleges that Reider, Ovens, Tutolo, Reed, Presser, Bambic, and Robertson, along with others, operated as bookmakers in the Northern District of Ohio, Eastern Division and utilized the PPH website. The indictment further alleges that the pay per head fees were paid to the PPH website through a variety of payment methods, including money orders, prepaid gift cards, MoneyGram, Western Union, PayPal, Bitcoin and cash payments.
According to the indictment, Robinson and Pinialis assisted in the laundering of proceeds from PPH. Pinialis allegedly collected money orders sent to an address in Las Vegas, Nevada by bookmakers for payment of PPH fees and deposited the money orders into a bank account in his name. Robinson allegedly processed prepaid gift cards sent by bookmakers as payment for PPH fees, which resulted in deposits into his business bank account. Robinson later converted the deposits into Bitcoin in order to transfer the funds to the operators of the PPH website.
The indictment also alleges numerous payments of thousands of dollars from the bookmakers to the operators of PPH. Additionally, the indictment alleges that thousands of dollars of cash was seized from the homes of some of the bookmakers.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendants’ sentences will be determined by the Court after reviewing factors unique to this case, including the defendants’ prior criminal records, if any, the defendants’ roles in the offense and the characteristics of the violations. In all cases the sentences will not exceed the statutory maximum and in most cases sentences will be less than the maximum.
This case was investigated by the United States Secret Service and the Internal Revenue Service Criminal Investigations. It is being prosecuted by Assistant U.S. Attorneys Carmen Henderson and Alejandro Abreu and Criminal Division Chief Robert Bulford.
###
Eagle Butte Man Sentenced for Assault and Brandishing a Firearm During a Crime of ViolenceRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man convicted of Assault with a Dangerous Weapon and Brandishing a Firearm during and in Relation to a Crime of Violence was sentenced on December 16, 2019, by U.S. District Judge Roberto A. Lange.
William Hawk, Sr., age 31, was sentenced to 8 years in federal prison, followed by 3 years of supervised release, forfeiture of 2 rifles, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Hawk was indicted by a federal grand jury on May 14, 2019. He pled guilty on September 25, 2019.
The conviction stemmed from an incident on May 11, 2019, when Hawk entered a motel in Eagle Butte, with a rifle in his hands and another swung on his back. Hawk spoke to the night clerk and demanded a key to a certain individual’s room. At that time, the individual Hawk was referring to walked into the lobby and Hawk instructed him to walk outside to speak with him. When the individual refused to do so unless he put the gun down, Hawk told the individual that if he did not go outside with Hawk, the individual would be executed in the lobby. At that point, the rifle discharged, and the round struck the door to the registration office. After the shot was fired, the individual ran out of the motel into the parking lot. Hawk pursued him into the parking lot, and fired a shot in the individual’s direction. The bullet struck a parked vehicle. The individual ran to a nearby residence and called 911.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was investigated by the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Jay Miller prosecuted the case.
Hawk was immediately turned over to the custody of the U.S. Marshals Service.
Dupree Woman Charged with Assault with a Dangerous Weapon and Child AbuseRead the Press Release
United States Attorney Ron Parsons announced that a Dupree, South Dakota, woman has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Child Abuse.
Cache Hebb, age 23, was indicted on December 10, 2019. She appeared before U.S. Magistrate Judge Mark A. Moreno on December 16, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 15 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about March 8, 2019, Hebb assaulted a minor child, who was under the age of seven, with a dangerous weapon, a hairbrush, and did abuse, expose, torture, torment, and cruelly punish the minor child.
The charges are merely accusations and Hebb is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services and the Federal Bureau of Investigation. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Hebb was released on bond pending trial. A trial date has not been set.
Domestic violence offenders plead guiltyRead the Press Release
HONOLULU, Hawaii – U.S. Attorney Kenji M. Price for the District of Hawaii announced two important guilty pleas:
-David Benjamin Cordeiro, 37, of Mountain View, Hawaii, pleaded guilty today in federal court to one count of possessing ammunition after having been previously convicted of misdemeanor domestic violence under Hawaii State law, in violation of 18 U.S.C. § 922(g)(9). Sentencing is scheduled for April 22, 2020 before U.S. District Judge Leslie E. Kobayashi. According to court documents and information presented in court, on September 1, 2018, Cordeiro possessed multiple rounds of ammunition, which he fired into a stopped car that an adult female was driving, while she was in the driver’s seat. Cordeiro had previously been convicted of domestic violence against an intimate partner, in violation of Hawaii Revised Statutes § 709-906 (Abuse of Family or Household Members). In light of his prior domestic violence conviction, federal law prohibited Cordeiro from possessing firearms or ammunition.
-Austin Borja-Haumea, 24, of Kekaha, Hawaii, pleaded guilty today in federal court to one count of possessing a firearm while being subject to an active Order for Protection, in violation of 18 U.S.C. § 922(g)(8). Sentencing is scheduled for April 15, 2020 before U.S. District Judge Leslie E. Kobayashi. According to court documents and information presented in court, on February 18, 2018, Borja-Haumea possessed an unloaded shotgun while seated in a car on Kaua’i. Borja-Haumea was prohibited from possessing a firearm because he was subject to an Order for Protection that had been filed by a family member due to domestic violence.
“These prosecutions are examples of the federal law enforcement community holding individuals accountable for possessing firearms and ammunition, when federal law expressly prohibits them from doing so. Law enforcement officials will continue to protect our communities by sending a strong enforcement message to prior offenders who have no business possessing a firearm or ammunition.”
The case against Cordeiro was investigated by the Hawaii County Police Department and the Federal Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). It was prosecuted by Assistant U.S. Attorney Morgan Early.
The case against Borja-Haumea was investigated by the Kaua’i County Police Department and ATF. It was prosecuted by Assistant U.S. Attorney Sean Van Demark.
These prosecutions are part of Project Safe Neighborhoods (PSN), a program that brings 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 the local community to develop effective, locally-based strategies to reduce violent crime.
Doctor, Pharmacists, and Marketers in Compounding Pharmacy Kickback Conspiracy SentencedRead the Press Release
Tampa, Florida – Two pharmacists, a physician, and two marketers have been sentenced for conspiring to pay and receive health care kickbacks for prescriptions for compounded creams billed to TRICARE.
On December 17, 2019, U.S. District Judge Mary S. Scriven sentenced Dr. Anthony Baldizzi (56, Treasure Island) to one year and a day in federal prison for his role in the conspiracy. Baldizzi was ordered to forfeit $100,000, including a BMW that he had received as a kickback. On March 7, 2018, Baldizzi had pleaded guilty to conspiracy to commit healthcare fraud and receive kickbacks, and one count of receiving healthcare kickbacks. He will be surrendering his license to practice medicine in January 2020.
On October 18, 2019, U.S. District Judge Elizabeth A. Kovachevich sentenced pharmacist Carlos Mazariegos (42, Palm Harbor) to one year and a day in federal prison for his role in the conspiracy. On April 10, 2017, Mazariegos had pleaded guilty to conspiracy to commit health care fraud. He is no longer a licensed pharmacist.
On November 6, 2019, U.S. District Judge Susan C. Bucklew sentenced pharmacist Benjamin Nundy (42, Ruskin) to a five-year term of probation for his role in the conspiracy. On July 13, 2017, Nundy had pleaded guilty to conspiracy to commit health care fraud. He is no longer a licensed pharmacist.
Mazariegos and Nundy paid $6,404,793.24 in restitution to the United States and forfeited $6,404,793.24 in cash.
On December 18, 2019, U.S. District Judge Mary S. Scriven sentenced the owners of the marketing firm Centurion Compounding, Inc., Frank V. Monte and Kimberley S. Anderson, to 24 months and 18 months in federal prison, respectively. Monte and Anderson also forfeited more than $3 million in property and luxury vehicles, including a Lamborghini, a Porsche, a Ferrari, a Ford GT racing car, a McLaren, and a Mercedes.
According to court documents, in 2014 and 2015, Centurion, a marketing firm located in Pasco County, was operated by Monte and Anderson. Centurion employed sales representatives to market compounded prescription medications—specifically, creams for pain and scars—to beneficiaries of healthcare plans, especially TRICARE. These creams typically ranged in price from $900 to $21,000 for a one-month supply. Centurion representatives marketed the creams to individuals living and working at MacDill Air Force Base in Tampa.
In May 2014, Centurion entered into an exclusive, illegal kickback arrangement with Pinellas County-based LifeCare pharmacy, whereby Centurion and LifeCare agreed to share equally in the profits from the claims paid by health benefit programs, including TRICARE, for compounded medications prescribed to beneficiaries. Baldizzi agreed with Monte, Anderson, and the owners of LifeCare pharmacy (Mazariegos and Nundy), that, in exchange for kickbacks, he would write prescriptions for compounded creams marketed by Centurion to TRICARE beneficiaries. Between May and November 2014, LifeCare billed health insurers, including TRICARE, more than $12.4 million for compounded cream prescriptions written by Baldizzi and marketed by Centurion. LifeCare realized a profit of more than $10 million, which it shared with Baldizzi, Monte, and Anderson.
Even after LifeCare closed and Baldizzi withdrew from the conspiracy, Centurion transferred the existing refills from Baldizzi’s prescriptions to a new pharmacy, which filled the prescriptions and billed TRICARE. In all, Centurion caused TRICARE to be billed more than $50 million for compounded creams prescribed to patients that it had recruited. Following the execution of a federal search warrant in February 2015, Centurion ceased operations, and the United States facilitated the repayment or reversal of more than $48 million in claims to TRICARE.
This case was investigated by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services Office of the Inspector General, the Defense Criminal Investigation Service, and the U.S. Air Force Office of Special Investigations, with assistance from the U.S. Army Criminal Investigation Command, the Naval Criminal Investigative Service, and the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorneys Mandy Riedel and Colin McDonell, with assistance from Assistant United States Attorneys Suzanne Nebesky and Holly Gershow.
Distribution of child pornography sends Gallatin County man to prison for more than 19 yearsRead the Press Release
MISSOULA—A Gallatin County man who admitted distributing child pornography using his smartphone was sentenced today to 19 years and seven months in prison and 15 years of supervised release, U.S. Attorney Kurt Alme said.
In addition, Chief U.S. District Judge Dana L. Christensen ordered Aaron Matthew Manning, 30, to pay $18,000 restitution and to forfeit his smartphone.
Manning pleaded guilty in September to distribution of child pornography.
The prosecution said in court records that the Bozeman Police Department and the Gallatin County Sheriff’s Office were investigating Manning in 2016 for sexually assaulting a 12-year-old child he had met online. During the investigation, law enforcement obtained search warrants for Manning’s smartphone and his Dropbox account, a cloud-based file storage service. Investigators determined that Manning used an application known as KIK on his smartphone to trade child pornography with other KIK users and that in December 2015, Manning sent an image of a prepubescent child engaged in sexually explicit conduct to another KIK user. Manning also communicated with another KIK user and sent the user a link to his Dropbox account, which investigators determined contained images and videos of child pornography.
Assistant U.S. Attorney Cyndee Peterson prosecuted the case, which was investigated by the Bozeman Police Department, the Gallatin County Sheriff’s Office and the Internet Crimes Against Children Task Force.
This case was initiated under the Department of Justice’s Project Safe Childhood initiative, which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. It is implemented through partnerships including the Montana Internet Crimes Against Children Task Force. The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children.
XXX
Department of Justice, United States Patent and Trademark Office, and National Institute of Standards and Technology Announce Joint Policy Statement on Remedies for Standard-Essential PatentsRead the Press Release
Today the Justice Department, U.S. Patent and Trademark Office (USPTO), and National Institute of Standards and Technology (NIST) issued a joint policy Statement regarding the treatment of standard-essential patents (SEP) where the patent holder has agreed to license its patents on fair, reasonable, and non-discriminatory (F/RAND) terms. This Statement replaces the 2013 policy statement on SEP remedies issued jointly by the Department of Justice and USPTO.
“Consistent with Article I, Section 8 of the U.S. Constitution, our patent system rewards inventors with an exclusive right to practice their inventions for a limited time,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “Today’s Policy Statement recognizes that when licensing negotiations fail, appropriate remedies for patent infringement, including injunctive relief, should be available to SEP holders. The availability of the full range of remedies is necessary in order to preserve competition and incentives for innovation, and for continued participation in standards-setting activities, which can produce substantial benefits for American consumers.”
To this end, the Statement clarifies that a patent owner’s promise to license a patent on F/RAND terms is not a bar to obtaining any particular remedy, including injunctive relief. The agencies make clear that no “special set of legal rules” apply to SEPs, and the courts, the U.S. International Trade Commission, and other decision makers are able to assess appropriate remedies based on current law and relevant facts. According to the Statement, “The particular F/RAND commitment made by a patent owner, the [standard development organization’s] intellectual property policies, and the individual circumstances of licensing negotiations between patent owners and implementers all may be relevant in determining remedies for infringing a standards-essential patent, depending on the circumstances of each case.”
The Statement follows the Justice Department’s withdrawal from the 2013 SEP policy statement, which had been construed incorrectly as suggesting that special remedies applied to SEPs and that seeking an injunction or exclusion order could potentially harm competition.
“Our patent system is what has made the American economy the innovation capital of the world, and we should not misapply the antitrust laws to diminish the incentive to innovate,” said Assistant Attorney General Delrahim.
Since that announcement, many industry participants and policymakers have provided input to the agencies as they prepared the new Statement.
“We value the input provided across the industry and policy spectrum as the agencies drafted a new Statement, in particular the input from Senate Intellectual Property Committee Chairman Thom Tillis and Ranking Member Chris Coons,” said Assistant Attorney General Delrahim. “As the new Statement emphasizes, ultimately, there is no special set of remedies for standard-essential patents. All patent owners have a statutory right to seek injunctive relief, and this joint statement reaffirms that if they do so the agencies will not put a thumb on the scale against them.”
Department of Justice Awards over $800,000 to the City of Aurora for Body Worn CamerasRead the Press Release
DENVER – United States Attorney Jason R. Dunn and the Department of Justice’s Office of Justice Programs announced that the Department of Justice has awarded funding of more than over $62 million to provide services designed to protect officers and improve overall public safety. OJP’s Bureau of Justice Assistance and National Institute of Justice awarded grants to law enforcement departments, local jurisdictions, and training, technical assistance and research organizations throughout the United States.
During this round of funding, the City of Aurora received $852,580 for the Department’s body worn cameras. In total, BJA awarded nearly $20.53 million to 82 law enforcement agencies under its Body- Worn Camera Policy and Implementation Program. Funding will enable grantees to improve their capacity to gather evidence and protect the safety of law enforcement officers and citizens.
“Body worn cameras are an important part of policing, both for officers and the public,” said U.S. Attorney Jason Dunn. “This grant will help make Aurora Police Department better and thus the people of Aurora safer.”
“The Office of Justice Programs stands proudly with the Attorney General and the President in our commitment to the 700,000 sworn law enforcement professionals who selflessly put their lives on the line to keep us all safe,” said OJP’s Principal Deputy Assistant Attorney General Katharine T. Sullivan. “Bulletproof vests, body-worn cameras, health and safety research—these resources will provide officers the training, equipment and strategies needed to enable them to do their jobs effectively and keep them safe from harm.”
The FBI’s official crime data for 2019 reflects a decrease in the number of law enforcement officers feloniously killed between 2018 and 2019 (43 killed through September 2018 and 32 killed as of Sept. 30, 2019). There was also a slight decrease in the number of law enforcement officers reported accidentally killed in 2019 (29) as compared to the same reporting period in 2018 (33).
Still, there were almost 60,000 assaults against officers in 2018, according to the latest data available from the FBI.
Nearly $23 million will support the training and implementation of law enforcement agencies’ body-worn camera programs. Another $21 million will reimburse jurisdictions for up to 50 percent of the cost of body armor vests, while over $14.8 million will support law enforcement safety and wellness programs, research and services.
In addition, over $3 million is allocated for research and evaluation of safety, health and wellness priorities. These investments include the development of ballistic vests, studies of in-vehicle safety and the evaluation of less-lethal technologies to increase police and public safety.
A full list of the awards, organized under specific grant programs and listed awardees by state, is available online at https://go.usa.gov/xpxd3.
Additional information about Fiscal Year 2019 grant awards made by the Office of Justice Programs can be found online at the OJP Awards Data webpage.
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
Department of Justice Reaches $5.5 Million Settlement with Van Andel Research Institute to Resolve Allegations of Undisclosed Chinese Grants to Two ResearchersRead the Press Release
WASHINGTON — The Department of Justice announced today that Van Andel Research Institute (VARI) has agreed to pay $5,500,000.00 to resolve allegations that it violated the False Claims Act by submitting federal grant applications and progress reports to the National Institutes of Health (NIH) in which VARI failed to disclose Chinese government grants that funded two VARI researchers. The settlement further resolves allegations that in a Dec. 21, 2018 letter, VARI made certain factual representations to NIH with deliberate ignorance or reckless disregard for the truth regarding the Chinese grants.
Andrew Birge, U.S. Attorney for the Western District of Michigan, said, “Our local institutions, like VARI, serve a vital role in raising West Michigan’s profile as a national player in cutting-edge biomedical research, but institutions everywhere must deal honestly and transparently when applying for U.S. government funding and respond appropriately when compliance issues arise. It’s unfair to other grant applicants and to the NIH for any institution to withhold requested information about whether the research that an institution wants the NIH to support may be getting funding from outside sources, specifically including foreign governments. False Claims Act penalties are harsh by design. I sincerely hope the word gets out on the importance of full disclosure with the government.”
“It is imperative that recipients of NIH grant funds properly report all sources of research support, financial interests and affiliations of individual researchers to ensure the proper and effective use of taxpayer dollars,” said Lamont Pugh III, Special Agent in Charge of HHS-OIG’s Chicago Region. “HHS-OIG will continue to investigate allegations of failures to properly report information to ensure the integrity of Departmental programs.”
Obtaining research funding from NIH is a highly competitive process, with only a small portion of eligible applications receiving funding each year. Nondisclosures and false statements to granting agencies are especially harmful because they distort competition, disadvantage applicants who play by the rules, and undermine agencies’ decision-making on the use of their limited resources.
As part of its grants application process, NIH requires recipient institutions to disclose all financial resources—including any other research grants—that are available to researchers and other key research personnel in support of their research endeavors (known as “Other Support” disclosures). Other Support disclosures allow NIH to independently evaluate, among other things, whether research submitted for taxpayer support is being funded by another source. During the term of a grant, NIH also requires recipient institutions to disclose whether certain aspects of federally-funded research will be, or have been, performed outside of the United States (known as “Foreign Component” disclosures). Research institutions, which apply for NIH grants on behalf of researchers and groups of collaborating researchers, make these Other Support and Foreign Component disclosures on or in connection with NIH forms.
VARI is an independent research institute in Grand Rapids, Michigan. Between Jan. 1, 2012, and Aug. 31, 2019, VARI received NIH grants for two researchers, including a researcher identified here as “Professor 1.” The government alleged that in applying for the NIH grants, and in submitting claims for federal grant funds, VARI did not disclose any foreign research funding for those researchers or any foreign components of their NIH-sponsored research. The government alleged, however, that both researchers received research funding from Chinese sources while VARI was applying for and receiving NIH funds on their behalf. The government specifically alleged that between Jan. 2012 and Dec. 2018, Professor 1 received grants and research support from a variety of Chinese sources, including the People’s Republic of China’s Thousand Talents Program. The Thousand Talents Program is in place with the purpose of returning talent, research, and technology to China for China’s benefit.
The government claimed that between Jan. 2012 and June 2018, VARI should have known about these foreign grants and disclosed them to NIH. The government alleged that while VARI had institutional policies and procedures in place to address conflicts of interest, VARI did not take adequate additional steps to investigate the researchers’ foreign funding sources despite receiving specific information about their Chinese affiliations. The government claimed, for example, that a Chinese institution sent VARI a letter stating that Professor 1 was receiving “generous support” from the Chinese Thousand Talents Program. The government also alleged that VARI knew that Professor 1 held a directorship at a Shanghai-based research institute—a collaboration between VARI and the Shanghai Institute of Materia Medica—that would involve Professor 1 applying for Chinese research grants to support work at the foreign institution.
The government claimed that VARI learned about certain of Professor 1’s Chinese grants in June 2018 while reviewing a press release for one of Professor 1’s publications. The government claimed that rather than confirming and disclosing the information to the NIH, VARI removed references to those grants from the proposed funding attributions in its press release. The government alleged that shortly thereafter, VARI received an Aug. 20, 2018 letter from NIH Director Francis S. Collins, M.D., Ph.D. that reminded recipient institutions of the need to disclose “support coming from foreign governments or other foreign entities” for their researchers. The government alleged that VARI then received a Nov. 30, 2018 e-mail from NIH that cited specific concerns about potential nondisclosures relating to Professor 1. The government claimed that VARI did not disclose Professor 1’s Chinese grants to NIH even after receiving this correspondence.
The government claimed that VARI instead retained an outside consulting firm, and, relying on that firm’s advice, sent a Dec. 21, 2018 letter to NIH in which VARI stated that it was not required to disclose information about Professor 1’s foreign grants because “there was no undisclosed overlap of any budgetary resources, commitment, or scientific endeavor” between the Chinese grants and the NIH grants. NIH, however, requires disclosure of all financial resources available in support of an individual’s research endeavors. The government further alleged that VARI, in representing to the agency that “there was no undisclosed overlap” between the Chinese grants and the NIH grants, did not know whether that statement was true.
U.S. Attorney Birge added that institutions concerned about a prior statement on a grant application should know that it is Department of Justice policy that entities or individuals that make “proactive, timely, and voluntary self-disclosures to the Department about misconduct will receive credit during the resolution of a False Claims Act case.”
This case was a cooperative effort among HHS-OIG, the FBI, and the U.S. Attorney’s Office for the Western District of Michigan. Assistant U.S. Attorney Adam B. Townshend represented the United States
The claims resolved by the settlements are allegations only. There has been no determination of liability.
###
Defendant Charged in Conspiracy to Transport 13 Kilos of Highly Toxic Fentanyl from Texas to New YorkRead the Press Release
Aurora Betancourt, a Canadian citizen, will be arraigned today in federal court in Brooklyn before United States Magistrate Judge Steven M. Gold on an indictment charging her with conspiring to distribute, and distribution of, fentanyl. Betancourt was arrested in Colombia on December 28, 2018, and extradited to the United States on December 18, 2019.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F .Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the extradition and indictment.
“As alleged in the indictment, Betancourt arranged the transportation of what she and her co-conspirators referred to as heroin, but what was in fact fentanyl, a synthetic opioid substitute even more potent than heroin,” stated United States Attorney Donoghue. “Thanks to the outstanding work by law enforcement officers, Betancourt’s alleged plan to flood our streets with this extremely dangerous drug was thwarted, and she will now face justice for her actions.” Mr. Donoghue extended his grateful appreciation to Drug Enforcement Administration Galveston, Texas office and the United States Marshals Service.
“Narcotics such as fentanyl and heroin are destroying lives and terrorizing communities across the United States, as well as here in New York. As alleged, the defendant showed a flagrant disregard for human life and public safety, by arranging with her associates to have a significant amount of fentanyl transported to New York,” stated FBI Assistant Director-in-Charge Sweeney. “Today’s arrest demonstrates the commitment of the FBI and our law enforcement partners to holding accountable anyone who would perpetuate the cycle of addiction contributing to the opioid crisis.”
“Allegedly responsible for attempting to transport 13 kilos of highly addictive fentanyl onto the streets of New York City, Betancourt will now have to answer for her actions that could have resulted in overdoses and deaths in our city,” stated HSI Special Agent-in-Charge Fitzhugh. “Fentanyl has claimed the lives of far too many Americans, and so seizures and arrests like this are an important step to help rid the streets of this deadly epidemic.”
According to court documents, at a meeting in Queens, New York, in July 2017, Betancourt conspired with others to transport narcotics from Houston, Texas, for distribution in the New York metropolitan area. The conspirators referred to the narcotics as “grasa,” a code for heroin. DEA agents seized the narcotics in Texas before they could be transported. Subsequent laboratory testing revealed that the narcotics were actually fentanyl, a highly potent synthetic opioid that can serve as a substitute for heroin and frequently results in overdoses by users. The total weight of the seizure was approximately 13 kilos, at the time the second largest seizure of fentanyl by the DEA. DEA estimated the street value of the fentanyl in New York at approximately $800,000.
If convicted of either count of the indictment, Betancourt faces a mandatory minimum of 10 years’ imprisonment and a maximum of life imprisonment.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering section. Assistant United States Attorney Alicia N. Washington is in charge of the prosecution.
The Defendant:
AURORA BETANCOURT
Age: 35
CanadaE.D.N.Y. Docket No. 18-CR-623 (ARR)
Davis Man Sentenced to over 3 Years in Prison for California Driver’s License FraudRead the Press Release
SACRAMENTO, Calif. — David Sun, 65, of Davis, was sentenced today to three years and one month in prison for a scheme to fraudulently obtain California Class A and Class B commercial driver licenses (CDLs) for the students of his commercial driving school, U.S. Attorney McGregor W. Scott announced.
“He not only knowingly and willfully abused his position of trust for personal gain, but did so at the expense of others, in this document fraud scheme,” said Tatum King, special agent in charge, San Francisco, Homeland Security Investigations. “HSI will continue working with our law enforcement partners to identify and disrupt document fraud and bring to justice those involved in these illegal schemes.”
On Sept. 13, after a seven-day trial, a jury found Sun guilty of one count of conspiracy to commit unauthorized access of a computer and to produce identification documents without lawful authority, eight counts of production of identification documents without lawful authority, and one count of conspiracy to produce identification documents without lawful authority and to transfer identification documents produced without lawful authority.
According to court documents and evidence produced at trial, Sun operated a driving school named Commercial Driver Institute USA in the East Bay with a parking lot in Richmond. Sun primarily catered to Mandarin and Cantonese speaking students. He helped students get Class A or Class B commercial driver licenses that allowed them to drive large vehicles like tractor-trailer trucks and buses. Sun typically charged $2,500 to $6,500 per student.
Sun committed two different types of fraud: a testing conspiracy where Sun helped his California students fraudulently bypass the required written and/or behind the wheel driving tests to get commercial licenses, and a residency conspiracy where Sun recruited students from New York and helped them pose as California residents to get a California CDL. Sun would arrange for the licenses to be mailed to the students who had returned to their actual home state of New York.
Sun’s students struggled with the written tests because of their English language limitations so he helped them bypass the written testing requirements for learner’s permits. Those permits were issued from DMV’s Walnut Creek office under one employee’s login from at least November 2014 through January 2016. None of Sun’s students in the conspiracy or charged counts ever went to that Walnut Creek DMV office or passed the tests on the dates indicated in DMV’s records. Sun instructed his students to attempt the written tests, which they did at various DMV offices in the Bay Area. If they failed, Sun often took their DMV receipt, which would show their unique California DMV number, and a fraudulent permit would issue from the Walnut Creek DMV after fraudulent passing scores were entered under the Walnut Creek employee login.
On occasion, Sun provided his students with a Bluetooth device to wear during the driving test, and instructed them to wear a beanie to conceal it, so that Sun could tell the student what to say and do during the test. In addition, on many occasions Sun took his students to a particular licensing registration examiner at the DMV in Santa Rosa with whom Sun had a personal relationship. Evidence at trial showed that Sun was paid extra money to guarantee his students would pass the driving tests.
This case was the product of an investigation by the California Department of Motor Vehicles Office of Internal Affairs and Homeland Security Investigations. Assistant U.S. Attorneys Rosanne L. Rust and Christopher S. Hales prosecuted the case.
Corrupt Guatemalan Mayor Indicted in Eastern District of Texas Designated by Treasury Department under Kingpin Act for Drug Trafficking ActivitiesRead the Press Release
PLANO, Texas – A 44-year-old Guatemalan Mayor has been indicted for drug trafficking activities and extradited to the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Erik Salvador Suniga Rodriguez, also known as “El Pocho” surrendered to U.S. Drug Enforcement agents in Guatemala this morning and boarded an airplane for extradition to McKinney, Texas. Suniga Rodriguez was indicted by a federal grand jury on June 13, 2018 in the Eastern District of Texas and charged with drug and money laundering violations. Suniga Rodriguez was the mayor of Ayutla, a town on the border with Mexico.
Also today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) identified Suniga Rodriguez, and the Suniga Rodriguez drug trafficking organization (Suniga Rodriguez DTO or “Los Pochos DTO”) as significant foreign narcotics traffickers pursuant to the Foreign Narcotics Kingpin Designation Act (Kingpin Act).
As a result of today’s actions, all assets in which Suniga Rodriguez has an interest in the United States or in the possession or control of U.S. persons must be blocked and reported to OFAC. OFAC’s regulations generally prohibit all dealings by U.S. persons or within (or transiting) the United States that involve any property or interests in property of blocked persons.
This case is the result of an extensive joint investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The Criminal Division’s Office of International Affairs of the Justice Department provided significant assistance in securing the defendant’s extradition from Guatemala. This case is being investigated by the U.S. Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Colleen Bloss.
It is important to note that an indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
Connecticut Man Charged with Attempting to Provide Material Support to ISISRead the Press Release
John C. Demers, Assistant Attorney General for National Security, John H. Durham, U.S. Attorney for the District of Connecticut, and Brian C. Turner, Special Agent in Charge of the New Haven Division of the FBI, today announced that Kevin Iman McCormick, 26, of Hamden, Connecticut, has been charged by indictment with attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
McCormick was arrested on Oct. 21, 2019, and charged by federal criminal complaint. On Oct. 30, 2019, a federal grand jury in New Haven returned an indictment charging McCormick with the offense. The affidavit in support of the criminal complaint was unsealed today.
As alleged in court documents and statements made in court, in October 2019, McCormick made several statements to others expressing a desire to travel to Syria and to fight for ISIS. In one conversation, McCormick stated “I gotta fight bro, because those people, Abu Masa and ISIL, they fought for me bro, I know it, I can feel it, in my heart. So it’s my time to fight . . . It just is what it is bro, it’s just my – it’s just my time to go bro.” When McCormick was asked to elaborate on where he would like to travel, McCormick responded, “I don’t know, I don’t know bro – it’s gotta be like Syria. Where ISIL is at….whichever place is easiest, whichever place I can get there the fastest, the quickest, the easiest, and where I can have a rifle and I can have some people bro. That’s what I need, I need a rifle and I need some people, I need Islamic law, I need, that’s what I need, because if I have these things, it’s going to be very hard to kill me.”
It is also alleged that, on Oct. 12, 2019, McCormick attempted to board a flight from Connecticut to Jamaica, but was prevented by the U.S. Department of Homeland Security. McCormick subsequently told an individual that he wanted to travel to Jamaica, and then onward to Syria to join ISIS. He also indicated that he wanted to acquire weapons.
It is further alleged that, on Oct. 19, 2019, McCormick made a video during which he pledged allegiance to ISIS and its leader, Abu Bakr Al-Baghdadi. Also on that date, he purchased a plane ticket from Toronto, Canada, to Amman, Jordan. On Oct. 21, 2019, McCormick was arrested after he traveled to a small private airport in Connecticut where he expected to board a plane that would fly him to Canada.
McCormick has been detained since his arrest.
The charge of attempting to provide material support to a designated foreign terrorist organization carries a maximum term of imprisonment of 20 years.
An indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by FBI’s Joint Terrorism Task Force (JTTF) with the assistance of the Transportation Security Administration (TSA).
The FBI’s JTTF includes participants from the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Internal Revenue Service – Criminal Investigation Division, Naval Criminal Investigative Service, U.S. Marshals Service, U.S. Citizenship and Immigration Services, Connecticut State Police, Connecticut Department of Correction, Metropolitan Transportation Authority Police Department, Norwich Police Department, Hartford Police Department, Stamford Police Department, Norwalk Police Department, Town of Groton Police Department, UConn Police Department, Yale Police Department, and New York Police Department.
This case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito and Trial Attorney Justin Sher from the Counterterrorism Section of the Justice Department’s National Security Division.
Colorado Springs Gang Member Sentenced to over 7 Years in Federal Prison for Being A Felon in Possession of A Firearm and AmmunitionRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Perry Wayne Suggs, Jr., age 33, of Colorado Springs, Colorado was sentenced today by U.S. District Court Judge William J. Martinez to serve 90 months (7.5 years) in federal prison, followed by 3 years on supervised release for being a felon in possession of a firearm and ammunition. Suggs appeared at the sentencing hearing in custody, and was remanded at its conclusion. ATF Denver Division joined in today’s announcement.
According to court documents and evidence presented at trial, at approximately 6:30 p.m. on January 3, 2018, Colorado Springs Police Officers were dispatched to a “shots fired” call where witnesses stated that a man in a BMW fired at a pedestrian crossing the street. Officers interviewed a mother and daughter who had witnessed the shooting. They provided the make and model of the car, as well as its license plate number, to law enforcement. The pedestrian was legally crossing an intersection when an individual in a black BMW engaged in an altercation with the pedestrian. The pedestrian had nothing in his hands and was several feet from the BMW. The driver of the vehicle pointed a firearm at the pedestrian’s legs, fired, and then fled the scene. A witness took a picture of the car’s license plate and identified the shell casing in the intersection, which was retrieved by the officers.
The victim also called 911 and was interviewed by the police officers. Based on the victim’s information as well as that of other witnesses, officers learned that the black BMW was registered to Perry Suggs, Jr., the defendant, who lived in Colorado Springs. It was determined that Suggs was a member of the Gangster Disciples street gang and had at least one felony conviction. It is against federal law for felons to possess firearms.
Officers executed search warrants at Suggs’ residence and on his BMW. While they were executing these search warrants, officers observed two firearms in plain view inside a vehicle parked at the defendant’s residence, including a black handgun and a black semi-automatic rifle. Officers then secured another search warrant on that vehicle and recovered a Glock handgun and an AR-15 style rifle, as well as ammunition. A test using the NIBIN database (National Integrated Ballistic Information Network) as well as a full forensic examination confirmed that the Glock recovered by officers matched the shell casings found at the scene.
“We are using modern technology and science, coupled with stiff federal penalties, to help rid communities of violent gun crime and gangs,” said U.S. Attorney Jason Dunn. “We will continue to offer our help to law enforcement and stand ready to assist anytime they ask.”
“The Colorado Springs Police Department, NIBIN, and observant members of the community are the reason this investigation was a success,” said ATF Denver Division Acting Special Agent in Charge Doak Dyer. “ATF, along with our law enforcement partners, will use every resource available to protect our communities from violent crime.”
This matter was investigated by the Colorado Springs Police Department and the ATF with the assistance of the Colorado Springs Metro Crime Lab. The defendant was prosecuted by Assistant U.S. Attorneys Emily Treaster and Hetal J. Doshi.
NIBIN is a national database of digital images of spent bullets and cartridge cases that were found at crime scenes or test-fired from confiscated weapons. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) manages the system and provides the equipment to crime labs around the country.
Chinese National Pleads Guilty to Federal Mail Fraud and Conspiracy Charges for Trafficking in Counterfeit GoodsRead the Press Release
Baltimore, Maryland –Xiaoying Xu, age 34, a Chinese citizen residing in Covina, California, pleaded guilty today to on a federal conspiracy and mail fraud charges related to her trafficking in counterfeit goods.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge John Eisert of Homeland Security Investigations (HSI) Baltimore; Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service - Washington Division; and Casey Durst, Director of Field Operations, U.S. Customs and Border Protection - Baltimore Field Office.
“Xu sold counterfeit products, representing them to unsuspecting customers as legitimate merchandise bearing the registered trademarks of legitimate companies.” said U.S. Attorney Robert K. Hur. “The sale of counterfeit goods not only defrauds consumers and legitimate companies, but results in American jobs lost, American business profits stolen, and American consumers tricked into receiving substandard products.”
According to her plea agreement, from about August 2016 until approximately April 2019, Xu conspired with others to defraud e-commerce customers by importing and selling counterfeit consumer goods, specifically Pandora jewelry and Ray-Ban sunglasses. Xu used her residence and offices in El Monte and Alhambra, California, as destination points for shipments of counterfeit goods shipped from Hong Kong and China. Xu repackaged the counterfeit goods, then mailed them to unsuspecting customers throughout the United States who believed they had purchased authentic goods.
Xu and other members of the conspiracy obtained funds from the victims of the counterfeit scheme through fraudulently acquired customer accounts opened in the names of other people at a global online payment company. The online payment company sent the victims’ money to Xu by electronic transfer to bank accounts or by check, which Xu cashed at ATMs or deposited into bank accounts opened by co-conspirators.
Xu admits that as a result of her fraudulent conduct, as well as her knowledge of the fraudulent conduct of her co-conspirators, members of the conspiracy sold $2,322,845 worth of counterfeit Pandora and Ray-Ban-branded products to unsuspecting customers, causing a loss to the customers of at least that amount.
Xu faces a maximum sentence of five years in prison for conspiracy to commit mail fraud and a maximum of 20 years in prison for mail fraud. Chief U.S. District Judge James K. Bredar has scheduled sentencing for March 12, 2020.
United States Attorney Robert K. Hur commended the FBI, HSI, U.S. Postal Inspection Service, and U.S. Customs and Border Protection, in Maryland and in Los Angeles, California; Seattle, Washington; and Tampa, Florida for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Peter J. Martinez and Martin J. Clarke, who are prosecuting the case.
# # #
Chinese National Arrested in $23.8 Million Scheme to Sell Counterfeit Laptop Computer Batteries on eBay and AmazonRead the Press Release
LOS ANGELES – A San Gabriel Valley man was arrested today on federal criminal charges that he participated in a $23.8 million scheme to manufacture and ship counterfeit laptop computer batteries and other electronics from China to the United States, where the bogus batteries were sold to unsuspecting buyers in online marketplaces.
Zoulin Cai, a.k.a. “Allen Cai,” 28, of La Puente, was arrested at his residence this morning on a federal grand jury indictment unsealed today. He is scheduled to be arraigned on the indictment this afternoon in United States District Court in downtown Los Angeles.
The three-count indictment alleges that Cai, a Chinese national who moved to Los Angeles County in 2012, worked for Shenzhen Theseus Technology Co. Ltd., a China-based company. Theseus Technology, which was owned and operated by Cai’s relatives, manufactured counterfeit lithium-ion batteries, some of which were designed for laptop computers.
Cai and his co-conspirators sold and shipped the counterfeit batteries to unsuspecting individual buyers via eBay and Amazon, falsely advertising them as brand-name new, genuine, original, or OEM (original equipment manufacturer) products, the indictment alleges. The batteries allegedly bore counterfeit trademarks of companies such as Apple, Dell, HP, and Toshiba, as well as counterfeit certification marks of UL, a company that tests and certifies the safety of electronic products.
Counterfeit lithium-ion laptop batteries pose significant safety risks – including the risk of extreme heat, fire, and explosions – and the batteries that Cai and his co-conspirators allegedly shipped frequently lacked required essential internal safeguards.
“Counterfeit goods are not manufactured with the same care as legitimate products backed by well-known companies and their highly developed intellectual property,” said First Assistant United States Attorney Tracy L. Wilkison. “The batteries involved in this case were sold to numerous unsuspecting online buyers, including one victim whose laptop started smoking and nearly caught fire after the battery was installed. Consumers need to exercise great caution when purchasing discounted items, particularly electronic goods, because these items pose very real safety risks.”
“Counterfeit products not only attack the name and value of a known business, but, in many cases, can cause harmful, and sometimes fatal, consequences for the unsuspecting buyer,” said Mark Zito, Acting Special Agent in Charge for Homeland Security Investigations (HSI) Los Angeles. “These fakes have no place in a fair, legitimate marketplace. While we hear about consumer fraud on a daily basis during the holiday season, the public should be assured that HSI, along with our federal and state law enforcement partners – including Customs and Border Protection and the Los Angeles Police Department – is committed to targeting the unscrupulous vendors of substandard merchandise year round. They are the ones who may pay the steep price.”
The counterfeit batteries allegedly were imported, sold, and shipped from warehouses in La Puente and the City of Industry, which Cai ran and where federal agents made undercover purchases of counterfeit laptop batteries from Cai on several occasions.
The indictment further alleges that from 2014 through June 2019, Cai and his co-conspirators fraudulently obtained at least $23.8 million from the sale of counterfeit laptop batteries through eBay and Amazon. They laundered those funds, including more than $18 million wired directly to Chinese bank accounts in the name of Theseus Technology as well as other Chinese businesses involved in the conspiracy. Cai allegedly used his ill-gotten gains for a variety of personal expenses, including monthly payments for a Maserati sports car he leased.
Cai is charged with conspiracy to traffic in counterfeit goods and labels, conspiracy to commit wire fraud and mail fraud, and conspiracy to engage in money laundering.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted of all charges, Cai would face a statutory maximum sentence of 50 years in federal prison.
This matter was investigated by Homeland Security Investigations, which was assisted in this investigation by the brand-holding companies.
This case is being prosecuted by Assistant United States Attorneys Anil J. Antony and Julia S. Choe of the Cyber and Intellectual Property Crimes Section, and Katherine Schonbachler of the Asset Forfeiture Section.
Charleston Man Sentenced to 46 Months in Federal Prison for Drug CrimeRead the Press Release
CHARLESTON, W.Va. – A Charleston man was sentenced to federal prison for a drug crime, announced United States Attorney Mike Stuart. Jalen Scruggs, 24, was sentenced to 46 months in prison and three years of supervised release for possession with the intent to distribute methamphetamine.
“MDENT’s investigation kept 187 grams of meth from making it out on the streets of Charleston,” said United States Attorney Mike Stuart. “And now this meth dealer will be spending almost four years in federal prison.”
Scruggs previously admitted that he possessed 187 grams of methamphetamine, packaged in eight separate bags, that he intended to sell. During the course of an investigation, law enforcement officers executed a search warrant on Scruggs’ home, where they found the methamphetamine already packaged for sale.
The Metropolitan Drug Enforcement Network Team (MDENT) conducted the investigation. United States District Judge Joseph R. Goodwin imposed the sentence. Assistant United States Attorney Chris Arthur handled the prosecution.
Follow us on Twitter: SDWVNews and USAttyStuart
###
Cedar Rapids Man Sentenced to Federal Prison for Unlawfully Possessing Loaded FirearmRead the Press Release
A man who illegally possessed a firearm was sentenced today to more than two years in federal prison.
Dante Williams, age 37, from Cedar Rapids, Iowa, received the prison term after a July 17, 2019, guilty plea to being a prohibited person in possession of a firearm. Williams unlawfully possessed a loaded pistol in his waistband at the time of his arrest for public intoxication and disorderly conduct. He was prohibited from possessing firearms based on two prior convictions for misdemeanor crimes of domestic violence. He was also prohibited for being a drug user.
Williams was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Williams was sentenced to 27 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Williams is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was prosecuted by Special Assistant United States Attorney Elizabeth Dupuich and Assistant United States Attorney Justin Lightfoot and investigated by the Cedar Rapids Police Department, the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-78-CJW.
Follow us on Twitter @USAO_NDIA.