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Monday 16 December 2019
Fishing Vessel Owner and Operator Plead Guilty and Fined $1 Million for Discharging Oily Waste into the Coastal Waters of the United StatesRead the Press Release
Sea Harvest Inc., operator of the fishing vessels Enterprise and Pacific Capes, along with Fishing Vessel Enterprises Inc., the vessels’ owner, pleaded guilty today to violating the Clean Water Act for both knowing and negligent discharges of oily bilge water from the vessels’ engine rooms. The companies were sentenced to pay a $1 million criminal fine and serve a five-year term of probation. As a special condition of probation, the companies will be required to implement a robust environmental compliance plan at their own expense that will cover 36 commercial fishing vessels that are owned or operated by the defendants.
“The laws that govern the discharge of oily bilge waste from vessels have been on the books for decades,” said Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Environment and Natural Resources Division. “Today’s plea should send the message that we will no longer tolerate the routine discharge of oily bilge waste into New Bedford Harbor and its surrounding waters. Vessel owners and operators can either voluntarily comply with laws that protect the nation’s waters or face criminal prosecution.”
“The defendants intentionally discharged pollutants from their fishing vessels into New Bedford Harbor,” said Special Agent in Charge Tyler Amon of EPA’s Criminal Investigation Division for New England. “It is important that we all treat our nation's resources with respect and to comply with our laws. EPA will continue to work with our enforcement partners with the State of Massachusetts and U.S. Coast Guard to investigate environmental crimes like this one that threaten marine life and the coastal waters of New England.”
According to court documents, the defendants owned and operated multiple vessels engaged in commercial fishing operations out of New Bedford, Massachusetts. From at least early 2017 until late 2018, as a result of insufficient supervision, fishing vessels owned and operated by the defendants discharged oily bilge waste from the vessels into the sea on multiple occasions. Count one of the information charged that, on Sept. 20, 2017, the New Bedford Massachusetts Police Port Security Unit traced an oil sheen in the Acushnet River to the F/V Enterprise, which was owned and operated by the defendants. When questioned about the sheen, the vessel’s manager confirmed that he had illegally pumped oily bilge water from the Enterprise’s engine room bilge overboard into the Acushnet River.
Previously, the vessel had been subject to several enforcement actions related to their improper management of oily bilge waste on the vessel. On Nov. 19, 2016, the U.S. Coast Guard issued a Letter of Warning to the vessel for pumping oily bilge waste into the Acushnet River. In addition, on or about Jan. 26, 2017, the Coast Guard issued a Captain of the Port Order requiring the vessel to return to port and discharge oily bilge water to a shore side facility. On Aug. 22, 2017, the U.S. Coast Guard held a community outreach meeting aimed at informing the commercial fishing community about the problem of discharging oily bilge water into New Bedford Harbor. Defendant’s representatives did not attend this meeting. Nevertheless, U.S. Coast Guard representatives went to the vessel to meet with the defendant’s representative after the meeting and provided handouts and information that detailed the prohibition of discharging oily bilge water into the sea. Less than a month later, the vessel made the illegal discharge that forms the basis of count one.
In a second incident that forms the basis of count two, on July 3, 2018, the Captain of the F/V Pacific Capes attempted to discharge water from a fish hold into New Bedford Harbor in Fairhaven, Massachusetts. In doing so, the Captain negligently failed to ensure that the valve alignment on the vessel’s bilge manifold was in the proper configuration to prevent the bilge pump from pumping oily bilge water overboard. Oil contamination was discovered alongside the Pacific Capes, as well as approximately 1,000 yards north of the vessel along the beach.
Commercial fishing vessels, such as the F/V Enterprise and F/V Pacific Capes, generate oily bilge water in their machinery spaces. This oily bilge water is the result of fuel, lubrication oil, fresh water, and sea water entering the bilge of the vessel and comingling. These leakages may originate from the main engines, generators, fuel lines, stern-tube packing glands and other piping, valves and machinery in the vessel.
There are two lawful means of disposing of oily bilge water from commercial fishing vessels such as the F/V Enterprise and F/V Pacific Capes. First, the oily bilge water may be retained onboard the vessel and then discharged ashore to a properly licensed reception facility. Second, the oily bilge water may be discharged offshore if it has been processed through an Oily Water Separator (OWS) that ensures that the oily bilge water discharged contains no more than 15 parts per million of oil to water. At all times relevant to the information, neither the F/V Enterprise nor the F/V Pacific Capes had onboard an OWS. Therefore, the only lawful manner in which oily bilge water could have been discharged from either vessel was to land the oily bilge water ashore and dispose of it through a properly licensed reception facility.
New Bedford Harbor, a busy commercial seaport, works to support its surrounding communities as it did through the whaling and industrial times. The harbor environment struggles from a more recent past of electrical device production which caused it to be one of EPA's largest Superfund cleanup sites. The harbor continues to require significant time and funding to clean up. Visit https://www.epa.gov/new-bedford-harbor/harbor-cleanup#Why for more information.
The Environmental Protection Agency’s Criminal Investigation Division and Coast Guard Investigative Service investigated the case. Kenneth E. Nelson and Stephen Da Ponte of the U.S. Department of Justice’s Environmental Crimes Section are prosecuting the case.
Felon heads back to prisonRead the Press Release
CORPUS CHRISTI, Texas – A 34-year-old Corpus Christi man with a prior felony conviction has been ordered to federal prison for unlawfully possessing a firearm and ammunition, announced U.S. Attorney Ryan K. Patrick. Jacob Winkler pleaded guilty June 17.
Today, U.S. District Judge John D. Rainey handed Winkler a 41-month sentence to be immediately followed by three years of supervised release. In handing down the sentence, the court ordered a probation against gang-related activity and noted his failure to learn from his previous convictions.
On Jan. 31, law enforcement learned there was a man believed to be under the influence of drugs and carrying a gun at at a convenience store. They responded to the scene and found that man – Winkler. They immediately took him into custody and discovered a loaded handgun located in the cargo pocket of his shorts.
In 2015, Winkler was convicted for the manufacture and possession of a pipe bomb and, therefore, prohibited from possessing a firearm or ammunition per federal law.
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.
The Corpus Christi Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Joel Dunn prosecuted the case.
Federal Jury Convicts Wilmington Doctor of 39 Counts of Opioid DistributionRead the Press Release
WILMINGTON, Del. – United States Attorney David C. Weiss announced today that on December 13, 2019, a federal jury convicted Charles Esham, a 60 year old Wilmington physician, on charges of conspiracy to distribute and distribution of oxycodone, one of the most powerful and commonly abused opioids available. United States District Judge Richard G. Andrews presided over the trial and accepted the verdict.
According to court records and evidence presented during the six-day trial, Esham issued oxycodone prescriptions to five individuals outside the course of usual professional practice and not for a legitimate purpose over the course of several years. Many of these oxycodone pills were not taken by the people to whom they were prescribed, but were instead illegally diverted and sold for profit.
U.S. Attorney Weiss stated, “In the midst of an opioid epidemic, Esham abandoned his role as a doctor and effectively handed over his prescription pad to a drug trafficking ring. The jury’s verdict serves as a warning to doctors who betray the solemn trust that our society places in them: when doctors facilitate and enable drug abuse, they must be held accountable.”
“Dr. Esham was convicted of federal drug conspiracy and distribution charges for using his DEA registration to prescribe oxycodone without any legitimate medical purpose,” said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “DEA Registrants like Esham who choose to engage in these criminal practices risk losing their medical license as well as criminal prosecution and a federal prison sentence.”
Esham faces a maximum penalty of 20 years in prison on each count when sentenced in April 2020. Actual sentences for federal crimes are typically less than the maximum penalties. Judge Andrews will determine Esham’s sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case was investigated by DEA’s Wilmington Resident Office – Tactical Diversion Squad. Assistant U.S. Attorneys Christopher R. Howland and Dylan J. Steinberg prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 17-71-CR-RGA.
Federal Inmate Pleads Guilty to Conspiracy to Defraud the Bureau of PrisonsRead the Press Release
Portland, Maine: A former Waterville resident pleaded guilty today in federal court in Portland to conspiring to make false statements to the Federal Bureau of Prisons (BOP) and to commit mail fraud, U.S. Attorney Halsey B. Frank announced.
According to court records, Frank Curtis, 41, caused the creation of false substance abuse treatment records in an effort to secure admission to the Residential Drug Abuse Program (RDAP) within the BOP. Inmates who successfully complete the RDAP can qualify for a period of early release of up to 12 months.
While detained at the BOP, Curtis sent a letter to a person in Maine with directions for the creation of false records. The other person created the records, which were subsequently transmitted to a BOP facility in South Carolina. The fraudulent records were designed to secure Curtis’s admission to the RDAP at the BOP facility in Estill, South Carolina. Law enforcement discovered the scheme prior to Curtis’s admission to the program.
Curtis faces up to five years in prison and a fine of $250,000. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The U.S. Department of Health and Human Services, Office of Inspector General; and the Healthcare Crimes Unit of the Maine Attorney General’s Office investigated the case.
Fayette County Man Sentenced to 300 Months for Methamphetamine Trafficking and Illegal Firearms PossessionRead the Press Release
LEXINGTON, Ky. – Lawrence Westbrook III, 41, of Lexington, was sentenced to 300 months in federal prison on Friday, by Chief United States District Judge Danny C. Reeves, for offenses involving methamphetamine trafficking and illegal firearms possession.
Westbrook previously pleaded guilty to two counts of possession with the intent to distribute methamphetamine, two counts of possession of a firearm in furtherance of a drug trafficking crime, and one count of possession of a firearm by a convicted felon.
According to his plea agreement, on June 23, 2018, Lexington Police made contact with Westbrook during a traffic stop in Lexington, where officers located approximately 159 grams of methamphetamine, as well as a loaded firearm he used to further his drug trafficking activity. After being released from custody, by posting a state issued bond, Westbrook admitted to being arrested again in August, where he was found in possession of additional methamphetamine for sale. Officers located approximately $11,000 in U.S. currency, on top of a stolen, loaded firearm used in furtherance of his drug trafficking.
Westbrook had prior felony convictions, having previously been convicted of Assault with a Firearm on a Person in 2001 and of being a Convicted Felon in Possession of a Firearm in 2015.
Under federal law, Westbrook must serve 85 percent of his sentence. Upon completion of his imprisonment, he will be under the supervision of the United States Probation Office for a period of five years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Tommy Estevan, Special Agent in Charge, ATF, Louisville Field Division; and Lawrence Weathers, Chief of Police, Lexington Police Department, jointly made the announcement.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The PSN program was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Estero Man Sentenced for Illegally Poaching and Transporting Wood TurtlesRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell today sentenced Michael P. Ellard (58, Estero) to 15 months in federal prison, for illegally capturing Wood Turtles and transporting them across state lines into Florida for commercial gain. In doing so, Ellard violated the Lacey Act, which makes it unlawful for any person to knowingly transport or sell wildlife that has been taken, collected, or captured in violation of law. A restitution hearing has been set for March 2, 2020.
Ellard had pleaded guilty on July 24, 2019.
The collection of Wood Turtles is illegal in West Virginia because it is a primary threat to the species’ viability in that state. According to court documents, Ellard was engaged in the business of buying and selling reptiles within Florida and throughout the United States. During three separate trips to the West Virginia area in March, April, and May 2016, Ellard illegally captured at least 140 Wood Turtles and transported them across state lines into Florida with the intent to sell them.
On May 19, 2016, during the execution of a federal search warrant at Ellard’s residence in Estero, U.S. Fish and Wildlife agents seized a total of 17 Wood Turtles. Ellard had transported these turtles from the West Virginia area to Florida.
This case was investigated by the U.S. Fish and Wildlife Service. It is being prosecuted by Assistant United States Attorney Jeffrey F. Michelland.
Eleven Indicted in West Tennessee for Federal Drug Trafficking Charges in “Operation Clear-Cut”Read the Press Release
Jackson, TN – A total of eleven individuals have been indicted for conspiracy to distribute methamphetamine in the Western District of Tennessee. U.S. Attorney D. Michael Dunavant announced the indictments today.
On November 18, 2019, a federal grand jury returned indictments charging eleven defendants with federal crimes including conspiracy to distribute methamphetamine, aiding and abetting possession with intent to distribute methamphetamine, distribution of actual methamphetamine over five grams, and distribution of actual methamphetamine over 50 grams.
These indictments follow a year-long investigative operation known as "Operation Clear-Cut." These defendants are alleged to have participated in a conspiracy to distribute in excess of 20 kilograms of actual methamphetamine throughout West Tennessee in a twelve month period. Purity levels of methamphetamine seized during the investigation tested as high as 99%.
The defendants include:
• Travis Bradshaw, 39, Dyersburg, TN
• Casey Bailey, 32, Dyersburg, TN
• Anne Taylor Davis, 27, Dyersburg, TN
• Terry Hill, 34, Union City, TN
• Alizdez Lockett, 39, Blytheville, AR
• James Matthews, Jr., 30, Rutherford, TN
• Kimberly Parson, 26, Dyersburg, TN
• William Kreg Pierce, 32, Dyersburg, TN
• Erica Pugh, 27, Dyersburg, TN
• Carale Shields, 40, Jackson, TN
• Ashley Vazquez, 28, Union City, TNCount 1 charges all defendants with conspiracy to possess with the intent to distribute methamphetamine, a Schedule II controlled substance.
Count 2 charges all defendants with aiding and abetting one another to possess with the intent to distribute methamphetamine, a Schedule II controlled substance.
Count 3 charges Casey Bailey with the distribution of more than five grams of actual methamphetamine, a Schedule II controlled substance.
Count 4 through Count 8 charges Travis Bradshaw with the distribution of more than five grams of actual methamphetamine, a Schedule II controlled substance.
Count 9 charges Anne Davis with the distribution of more than five grams of actual methamphetamine, a Schedule II controlled substance.
Count 10 charges Travis Bradshaw with the possession of more than 50 grams of actual methamphetamine, a Schedule II controlled substance, with the intent to distribute.
If convicted, the defendants each face mandatory minimum sentences of 10 years and up to life imprisonment.
U.S. Attorney D. Michael Dunavant said, "Methamphetamine that is trafficked in and through West Tennessee is increasing in dangerous purity, and continues to destroy individuals, families, and communities. These indictments demonstrate our focus on the priority area of narcotics cases that impact public safety in our rural communities, and we appreciate the partnerships with our local law enforcement agencies in this case."
This case was investigated by the FBI’s Safe Streets Task Force, the Dyersburg Police Department, the 27th Judicial District Drug Task Force, and the Tennessee Bureau of Investigation. This investigation was conducted in conjunction with prosecutors in Jackson as part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF) Program, which seeks to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations, money laundering organizations and related criminal enterprises.
Assistant U.S. Attorney Matthew Wilson is prosecuting this case on behalf of the government.
The charges and allegations in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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East Bridgewater Man Sentenced for Production, Distribution and Possession of Child PornographyRead the Press Release
Boston – An East Bridgewater man was sentenced to 17 years in prison on child pornography charges.
Daniel O’Connor Jr., 57, was sentenced on Friday, Dec. 13, 2019 by Chief U.S. District Court Judge Patti B. Saris to 17 years in prison, five years of supervised release and ordered to pay $5,000 in restitution. In September 2019, O’Connor Jr. pleaded guilty to one count each of production of child pornography, distribution of child pornography and possession of child pornography.
A forensic review of an iPhone recovered during a search of O’Connor Jr.’s home revealed images of child pornography including approximately 137 images and approximately 26 videos of child pornography. Fifteen of those 26 videos depicted the same 11-year-old girl. O’Connor Jr.’s collection of child pornography included girls between approximately five and 13 years of age. In addition, the cellphone contained multiple apps popular with minors, such as Kik Messenger. A review of O’Connor Jr.’s Kik app revealed chats between him and an 11-year-old girl during which he coerced and persuaded the girl to record and send him sexually explicit videos of herself.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; East Bridgewater Police Chief Scott Allen; and Plymouth County District Attorney Timothy Cruz made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit prosecuted the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identity and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Doctor and Pharmaceutical Representative Admit Health Care Fraud Conspiracies Targeting State Health Benefits ProgramsRead the Press Release
CAMDEN, N.J. – A Trenton doctor today admitted his role in two separate conspiracies for defrauding New Jersey state health benefits programs and accepting kickbacks in exchange for referring laboratory work, U.S. Attorney Craig Carpenito announced. A pharmaceutical representative admitted his role in a separate health care fraud conspiracy and to obstructing justice by telling witnesses to lie to the grand jury investigating the scheme.
Dr. Daniel Oswari, 48, of Bordentown, New Jersey, pleaded guilty today before U.S. District Judge Robert B. Kugler in Camden federal court to two counts of an indictment charging him with conspiracy to commit health care fraud and wire fraud (Count One) and conspiracy to violate the Anti-Kickback Statute and the Travel Act (Count 23). Mark Bruno, 45, of Northfield, New Jersey, also pleaded guilty before Judge Kugler to an information charging him with conspiracy to commit health care fraud and obstruction of justice.
Oswari was charged in October 2019 along with Steven Monaco, Michael Goldis, and Aaron Jones, and charges remain pending against those three defendants.
According to documents filed in these cases and statements made in court:
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredient.
Between January 2014 and April 2016, Oswari participated in a conspiracy that discovered that certain insurance plans paid for certain prescription compound medications – a including vitamins and pain creams – from a Louisiana pharmacy, identified in the indictment as the “Compounding Pharmacy 1,” and a Pennsylvania pharmacy, identified in the indictment as “Compounding Pharmacy 2.” The conspirators targeted patients with these insurance plans that provided coverage for the compound medications, particularly New Jersey state and local government and education employees. An entity referred to in the indictment as the “Pharmacy Benefits Administrator” provided pharmacy benefit management services for the State Health Benefits Program, which covers qualified state and local government employees, retirees, and eligible dependents, the School Employees’ Health Benefits Program, which covers qualified local education employees, retirees, and eligible dependents, and other insurance plans. The Pharmacy Benefits Administrator paid prescription drug claims and then billed the State of New Jersey or the other insurance plans for the amounts paid.
Oswari and members of his staff tried to persuade patients to receive the prescription compound medications, even if the patients did not have a medical necessity for the medications. Oswari signed printed prescription forms from Compounding Pharmacies 1 and 2 that had pre-selected the highest number of refills to obtain the highest possible insurance reimbursement. Oswari signed some prescriptions without seeing or evaluating the individuals, including for individuals who were not his patients. Oswari signed approximately 285 prescriptions for compounded medications, and the Pharmacy Benefits Administrator paid Compounding Pharmacies 1 and 2 approximately $1.9 million for the prescriptions he signed. In exchange for signing the prescriptions, Oswari received cash kickbacks.
Oswari also pleaded guilty to a separate conspiracy to take kickbacks for referring laboratory work and signing prescriptions. Oswari had a laboratory hire his medical assistant as a phlebotomist. The medical assistant continued to work for Oswari, but laboratory paid her salary for over two years. In return, Oswari referred his blood and urine samples to the laboratory for testing. This lab work was insured by Medicare, New Jersey Medicaid, and other insurance companies.
Bruno worked for a company that marketed compounded medications and received a percentage of the insurance payments. Bruno introduced a doctor to the company and received a percentage of the payments for prescriptions that the doctor wrote. Bruno and others paid the doctor to reward him for signing prescriptions. Bruno recruited individuals covered by New Jersey state insurance plans because he knew that those plans paid thousands of dollars for certain compounded medications. Bruno paid several of these individuals to see his doctor and receive prescriptions for compounded medications. Bruno received $68,872 from the company and caused $524,935 in losses.
Bruno learned in 2018 that the federal grand jury was investigating him. In 2019, two individuals paid by Bruno to receive compounded medications told him that they had received subpoenas to testify in the grand jury, and another two told Bruno that they were contacted by the FBI. Bruno told the first two to lie in the grand jury and deny that he paid them. Bruno told the other two to tell the FBI that he had not paid them.
The health care fraud and wire fraud conspiracy count to which Oswari pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. The kickbacks conspiracy count to which Oswari also pleaded guilty carries a maximum penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The heath care fraud conspiracy and obstruction of justice charges to which Bruno pleaded guilty each carry a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gain or loss from the offense.
Sentencing for Oswari is scheduled for March 23, 2020, and sentencing for Bruno is scheduled for March 24, 2020.
U.S. Attorney Carpenito credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; IRS – Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur in Newark; and the U.S. Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka, with the investigation leading to the guilty pleas. He also thanked the Division of Pensions and Financial Transactions in the State Attorney General’s Office, under the direction of Attorney General Gurbir S. Grewal and Division Chief Aimee Nason, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorneys R. David Walk Jr. and Christina O. Hud of the U.S. Attorney’s Office in Camden.
The charges and allegations contained in the indictment against Monaco, Goldis, and Jones are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Delaware County Child Predator Sentenced to 20 Years in PrisonRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that John C. Dellarocco, Jr., 25, of Holmes, Pennsylvania, was sentenced to 240 months’ imprisonment, and a lifetime of supervised release, by United States District Judge Petrese B. Tucker for online enticement and manufacturing child pornography. The defendant pled guilty in August 2019.
These charges arise from an investigation into the defendant’s communications with at least eleven minor female children on an Internet-based application on which the defendant persuaded or attempted to persuade the girls to engage in sexual activity and sexually explicit conduct, photograph themselves engaging in that conduct, and then transmit the images to the defendant via the Internet. In all of these cases, Dellarocco was surreptitiously recording the chats and exposures and saving the videos on flash drives or his cell phone – evidence which was later discovered by investigators.
“Child exploitation is a pervasive problem – made more so by the accessibility of the Internet and digital media – that demands an aggressive response,” said U.S. Attorney McSwain. “This case is particularly disturbing because of the number of children the defendant was able to target and communicate with on the Internet. We urge parents and caregivers to monitor what their children do online, and we stand ready with our federal and local partners to identify and prosecute those who would prey upon minor children.”
The case was investigated by the Federal Bureau of Investigation and the Delaware County Criminal Investigation Division, and is being prosecuted by Assistant United States Attorney Roberta Benjamin.
December Grand JuryRead the Press Release
United States Attorney Joe Kelly announced the federal Grand Jury for the District of Nebraska has returned 29 Indictments charging 32 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Morgan C. Brown, age 24, of Fremont, Nebraska, and Pedro R. Torres, age 35, of Omaha, are charged with possession with intent to distribute 50 grams or more of methamphetamine (actual) on or about August 16, 2019. The maximum possible penalty if convicted is life imprisonment, $20,000,000 fine, 10-year term of supervised release, and a $100 special assessment. There is also an allegation to forfeit United States currency and a 2019 Chevrolet Malibu LS Sedan seized on or about August 16, 2019.
* Carmen Yobani Capellan De Martinez, age 64, is charged with false statement in an application for U.S. Passport beginning on or about May 17, 2012. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Michael Coffman, age 36, is charged with possession of a firearm by a prohibited person on or about December 3, 2019. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Marcus D. Dunn, age 25, is charged with possession of child pornography on or about April 6, 2019 through on or about November 15, 2019. Because of the prior child pornography conviction the maximum possible penalty if convicted is 20 years’ imprisonment, a $250,000 fine, a Life term of supervised release, a $100 special assessment, and a $17,000 additional special assessment.
* Carolina Estrada, age 20, of Tucson, Arizona, is charged with conspiracy to distribute and possession with intent to deliver 500 grams or more of methamphetamine (mixture) beginning in May 2019 and continuing through August 2019. The maximum possible penalty if convicted is life imprisonment, $10,000,000 fine, 5-year term of supervised release, and a $100 special assessment. .
* Anthony Wayne Hall, age 64, is charged with bank robbery by force from an employee at First State Bank on or about November 21, 2019. The maximum possible penalty if convicted is 20 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Socorro Gonzalez Hernandez, age 51, is charged in a two-count Indictment. Counts I and II charge the defendant with felon in possession of a firearm on or about January 8, 2019 and again on November 20, 2019. The maximum possible penalty if convicted is 10 years’ imprisonment each count, a $250,000 fine each count, a 3-year term of supervised release each count, and a $100 special assessment each count.
* Genaro Hernandez Rivas, age 48, is charged with illegal reentry after deportation following a felony conviction on or about February 19, 2019. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Luis Fernando Hernandez-Ortiz, age 22, is charged with illegal reentry after deportation on or about November 18, 2019. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a 1-year term of supervised release, and a $100 special assessment.
* Raymundo Hernandez-Rubio, age 35, is charged with possession with intent to distribute 500 grams or more of methamphetamine (mixture) on or about December 7, 2019. The maximum possible penalty if convicted is life imprisonment, $10,000,000 fine, 5-year term of supervised release, and a $100 special assessment.
* Randall W. Hillman, age 68, of Palm Desert, California, is charged in a three-count Indictment. Count I charges the defendant with possession of device making equipment on or about April 29, 2016. The maximum possible penalty if convicted is 15 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment. Count II charges the defendant with using or trafficking in an unauthorized access device on or about April 26, 2016. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment. Count III charges the defendant with possession of 15 or more counterfeit or unauthorized access devices on or about April 29, 2016. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment. There is also an allegation to forfeit United States currency seized on or about April 29, 2019.
* Jack Jackson, age 45, of Omaha, is charged with possession with intent to distribute 50 grams or more of methamphetamine (mixture) on or about August 4, 2019. The maximum possible penalty if convicted is 40 years’ imprisonment, $5,000,000 fine, 4-year term of supervised release, and a $100 special assessment.
* Cassandra Jimenez, age 33, of Omaha, is charged with possession with intent to distribute 500 grams or more of methamphetamine (mixture) on or about November 20, 2019. The maximum possible penalty if convicted is life imprisonment, $10,000,000 fine, 5-year term of supervised release, and a $100 special assessment.
* Diego Juan Diego, age 27, is charged with illegal reentry after deportation on or about November 13, 2019. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a 1-year term of supervised release, and a $100 special assessment.
* Isidro Lamadrid Morales, age 54, is charged with illegal reentry after deportation on or about November 20, 2019. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a 1-year term of supervised release, and a $100 special assessment.
* Adrian Lemus Cruz, age 22, is charged with illegal reentry after deportation on or about September 28, 2019. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a 1-year term of supervised release, and a $100 special assessment.
* Edward E. Lewis, age 37, of Omaha, and Donte M. Leeper, age 36, of Omaha, are charged in a four-count Indictment. Count I charges the defendants with interference with commerce robbery by force from two employees at Sprint on or about October 28, 2019. The maximum possible penalty if convicted is 20 years’ imprisonment each, a $250,000 fine each, a 3-year term of supervised release each, and a $100 special assessment each. Count II charges the defendants with brandishing a firearm during a crime of violence on or about October 28, 2019. The maximum possible penalty if convicted is not less than 7 years’ to life imprisonment, a $250,000 fine each, a 5-year term of supervised release each, and a $100 special assessment each. Count III charges Lewis with felon in possession of a firearm on or about October 28, 2019. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment. Count IV charges Leeper with felon in possession of a firearm on or about October 28, 2019. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Roberto Luna-Nava, age 32, is charged with possession with intent to distribute 500 grams or more of methamphetamine (mixture) on or about September 26, 2019. The maximum possible penalty if convicted is life imprisonment, $10,000,000 fine, 5-year term of supervised release, and a $100 special assessment. There is also an allegation to forfeit United States currency seized on or about September 26, 2019.
* Roman Mejia Dimayuga, age 36, is charged with illegal reentry after deportation on or about November 14, 2019. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a 1-year term of supervised release, and a $100 special assessment.
* Maria De Jesus Mora De Rodriguez, age 54, is charged with illegal reentry after deportation on or about November 22, 2019, following an aggravated felony conviction. The maximum possible penalty if convicted is 20 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Mitchell Ryan Pond, age 37, of Lincoln, Nebraska, is charged in a three-count Indictment. Count I charges the defendant with conspiracy to distribute and possession with intent to deliver 500 grams or more of methamphetamine (mixture) and 50 grams or more of methamphetamine (actual) on or about November 1, 2018 and continuing to on or about July 10, 2019. The maximum possible penalty if convicted is life imprisonment, $20,000,000 fine, 10-year term of supervised release, and a $100 special assessment. Count II charges the defendant with use of a firearm during and in relation to a drug trafficking crime on or about July 2, 2019. The maximum possible penalty if convicted is life imprisonment consecutive to the conspiracy, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment. Count III charges the defendant with felon in possession of a firearm on or about July 10, 2019. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Walter Omar Rivas-Molina, age 33, is charged in a two count Indictment. Count I charges the defendant with falsely representing a Social Security number to be his on or about November 15, 2019. The maximum possible penalty if convicted is 5 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment. Count II charges the defendant with fraud and misuse of visas, permits and other documents on or about November 15, 2019. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Gerardo Santiago Morales, age 41, is charged with illegal reentry after deportation on or about December 4, 2019, following an aggravated felony conviction. The maximum possible penalty if convicted is 20 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Tyler Shields, age 33, and Jesse Perez are charged with conspiracy to distribute and possession with intent to deliver 500 grams or more of methamphetamine (mixture) on or about November 1, 2019 and continuing to on or about November 19, 2019. The maximum possible penalty if convicted is life imprisonment, $10,000,000 fine, 5-year term of supervised release, and a $100 special assessment.
* Wallace Ray Swaim, Jr., age 59, is charged with possession with intent to distribute 50 grams or more of methamphetamine (actual) on or about May 24, 2019. The maximum possible penalty if convicted is life imprisonment, $10,000,000 fine, 5-year term of supervised release, and a $100 special assessment.
* David A. Terry, age 55, is charged with possession with intent to distribute 500 grams or more of methamphetamine (mixture) on or about October 25, 2019. The maximum possible penalty if convicted is life imprisonment, $8,000,000 fine, 8-year term of supervised release, and a $100 special assessment.
* Brandon D. Wolff, age 34, is charged with conspiracy to distribute 50 grams or more of methamphetamine (mixture) on or about August 8, 2019 and continuing to on or about November 4, 2019. The maximum possible penalty if convicted is 40 years’ imprisonment, $5,000,000 fine, 4-year term of supervised release, and a $100 special assessment.
Cooley Dickinson Hospital Resolves Allegation of Billing for Unnecessary Tick-Borne Disease TestsRead the Press Release
BOSTON – Cooley Dickinson Hospital, a Partners HealthCare affiliated hospital based in Northampton, has agreed to pay $11,332 to resolve the allegation that it submitted claims to Medicare and Medicaid for medically unnecessary testing.
Individuals can contract tick-borne diseases, such as Lyme disease, anaplasmosis, erlichiosis, and babesiosis, if bitten by specific ticks infected with bacteria, viruses, or parasites. The type of tick-borne disease an individual may contract depends on the species of tick, which, in turn, depends upon the geographic region where the individual was bitten.
Cooley Dickinson allegedly created tick borne disease test “panels” through which physicians and nurse practitioners could order more than one tick-borne disease test. When a physician and/or nurse practitioner selected a testing panel in the ordering system (as opposed to manually selecting each medically appropriate tick-borne disease test), an order went to Cooley Dickinson’s laboratory to test for all of the tick-borne diseases programmed into the testing panel, even though the panel included tests for diseases caused by ticks that were not likely to be present in the geographic region where the individual was bitten so that the tests were not medically indicated by the patient’s symptoms. The government alleges that between July 1, 2014, and June 22, 2017, Cooley Dickinson submitted claims to Medicare and Medicaid for blood tests used to detect tick-borne diseases when the tests were not medically necessary.
“This settlement is another reminder of how whistleblowers can help the government identify improper billing practices among health care providers,” said United States Attorney Andrew E. Lelling.
A patient of Cooley Dickinson, Dr. Morris Leibowitz, brought these allegations through a whistleblower lawsuit. Under the qui tam provisions of the False Claims Act, private individuals, known as relators, can sue on behalf of the government for false claims and to share in any recovery. In connection with today’s announced settlement, Dr. Leibowitz will receive 21% of the recovery.
U.S. Attorney Lelling made the announcement today. Assistant U.S. Attorneys Steven Sharobem and Christopher Morgan of Lelling’s Office handled the matter.
Columbus Man Sentenced to Almost Nine Years in Federal Prison for Drug and Gun OffensesRead the Press Release
CHARLESTON, W.Va. – A Columbus, Ohio man was sentenced to federal prison for federal drug distribution and firearm offenses, announced United States Attorney Mike Stuart. D’ Alfonza Mikell, 27, was sentenced to 106 months in prison for possession with intent to distribute methamphetamine and heroin, and carrying a firearm in furtherance of a drug trafficking crime. His imprisonment is to be followed by 36 months of supervised release.
“Mikell was a gun-toting, poly-drug dealer from Columbus that made the mistake of peddling his poisons in Charleston,” said United States Attorney Mike Stuart. “As a result of MDENT’s great work, he will now be spending a significant time in federal prison for his crimes.”
Mikell previously admitted that on January 10, 2019, detectives with the Metro Drug Enforcement Network Team (MDENT) stationed themselves around the McDonald’s parking lot of Washington Street East, in Charleston. They had been warned that Mikell had come from Ohio and would be conducting a drug transaction that morning. A white pickup truck, with Mikell and three other individuals inside, pulled in and parked. Detectives watched as the defendant met with a confidential source. After meeting with the confidential source, MDENT detectives approached the truck in which Mikell was seated. Mikell was ordered out of the truck and at that time, detectives observed a Smith & Wesson .40 caliber pistol hidden underneath his leg. The defendant also had over 25 grams of methamphetamine and 2 grams of heroin inside his jacket pocket. Digital scales, 13 more grams of methamphetamine, and 2 more grams of heroin were inside the truck’s console.
The Metro Drug Enforcement Network Team conducted the investigation. Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorneys L. Alexander Hamner and Erik Goes handled the prosecution.
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Co-Leader of Lightfoot Drug Trafficking Organization Pleads Guilty to Running One of the Largest DTOs in Pittsburgh HistoryRead the Press Release
PITTSBURGH – A former resident of Monessen, PA, has plead guilty to federal narcotics charges, United States Attorney Scott W. Brady announced today.
Deaubre Lightfoot, age 29, pleaded guilty to one count of conspiracy to possess with the intent to distribute and distribute 500 grams or more of cocaine in front of United States District Court Judge Mark R. Hornak. Additionally, Lightfoot accepted responsibility for between five and 15 kilograms of cocaine and for having a leadership role supervising five or more people in the conspiracy. Judge Hornak scheduled his sentencing for April 16, 2020 at 9:30 a.m. Lightfoot has been detained since his initial appearance and will remain detained pending sentencing.
According to information presented to the court, from April 2017 to November 5, 2017, Deaubre Lightfoot conspired with others to import large quantities of cocaine and marijuana into Western Pennsylvania. Once the narcotics were in Western Pennsylvania, Lighfoot, and his brother Jamie Lightfoot, Jr. who previously pleaded guilty in this case, would store the narcotics at their respective homes. The drugs would be distributed to co-conspirators in almost every region of Western Pennsylvania. On December 12, 2017, FBI investigators recovered a kilogram of cocaine from Deaubre Lightfoot’s residence.
The law provides for a mandatory minimum sentence of not less than five years in prison and a maximum of 40 years and/or a fine of not more than $5,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Timothy M. Lanni and Shaun Sweeney are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police, with assistance from the South Strabane Police Department, the Elizabeth Borough Police Department, the Penn Hills Police Department and the Perryopolis Police Department, conducted the investigation.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Clarence Surgeon Sentenced on Drug Charge and Lying to the DEARead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Dr. Anthony Leone, 55, of Clarence, NY, who was convicted of unlawful possession of a controlled substance and making material false statements, was sentenced to two years probation, to include three months home confinement, by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Laura A. Higgins, who handled the case, stated that on September 8, 2016, the defendant, who was a licensed spine and general orthopedic surgeon and Drug Enforcement Administration registrant, completed a controlled substance form for Henry Schein, a commercial distributor of controlled substances. One of the questions on the form asked Leone if he used “any controlled substances ordered to treat family members,” to which he responded, “no.” That statement was false. Leone in fact ordered zolpidem for treatment of an identified family member.
Further, the form asked the defendant whether he used any of the controlled drug items he ordered for his own personal use, to which he again falsely responded “no,” as Leone ordered Adderall XR, tramadol, and clonazepam for his own personal use.
Finally, the form asked the defendant whether his office performed surgery or any other in office procedures that required the use of controlled substances, to which he responded with the following: “Procedures performed on an outpatient basis: Epidural steroid injections and facet injections, outpatient procedure: lumbar and [illegible word] spine reconstructive surgery.” That statement was also false in that Leone did not administer or dispense controlled substances in his office, but instead, wrote patients prescriptions for fulfillment at a pharmacy.
Thereafter, the defendant ordered and received bulk quantities of Adderall XR, hydrocodone, both Schedule II controlled substances, and clonazepam, tramadol, and zolpidem, all Schedule IV controlled substances from Henry Schein.
On April 24, 2018, the Drug Enforcement Administration conducted an administrative search at Leone’s offices located at 934 Cleveland Drive in Cheektowaga, NY. During that search, the defendant told DEA agents that he ordered quantities of hydrocodone, which he dispensed to patients. In truth and fact, Leone was transporting the hydrocodone from his medical office in Cheektowaga to his residence in Clarence, where he stored them for his own personal use.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Ray Donovan, Special Agent-in-Charge, New York Field Office.
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Citizen of Mexico Sentenced for Unlawfully Voting in the 2016 General ElectionRead the Press Release
NEW BERN – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that PATRICIA FRANCO-RODRIGUEZ, age 28, of Mexico, residing in Johnston County, North Carolina, was sentenced to a $975 fine and $25 special assessment by United States District Judge Louise W. Flanagan after a guilty plea to illegal voting by an alien.
According to court records, FRANCO-RODRIGUEZ, a Mexican citizen, is a lawful permanent resident in the United States and not a citizen of the United States. Thus, FRANCO-RODRIGUEZ is not permitted to vote for candidates for the office of President, Vice President, and House of Representatives. FRANCO-RODRIGUEZ registered to vote in North Carolina in 2016 by signing a voter registration application on which there was an attestation of United States citizenship.
FRANCO-RODRIGUEZ voted in the General Election of 2016. When questioned by Homeland Security agents, FRANCO-RODRIGUEZ admitted that she voted for all of the positions in the ballot.
The Document Fraud Benefit Task Force led by agents from Homeland Security Investigations conducted the investigation in this matter. The investigation as to voter fraud is ongoing.
Chilton Man Sentenced for Violating the Arms Export Control ActRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin announced that on December 16, 2019 Andy Lloyd Huebschmann, 59, of Chilton, Wisconsin, was sentenced to 24 month in federal prison for violating the Arms Export Control Act, Title 22, United States Code, Sections 2778(b)(2) and 2778(c), and Title 22, Code of Federal Regulations, Sections 121.1, 123.1, and 127.1.
According to court filings, Huebschmann manufactured numerous firearms and firearm-parts for an Australian criminal and gun-enthusiast. These included rifle kits, which contained the component parts for rifles that could function with either semi-automatic or fully automatic triggers, and 1911 firearm frames that could be assembled into completed pistols. Huebschmann exported those items from the United States to Australia illegally, failing to obtain the required export licenses and shipping guns in containers designed to hide the presence of firearms.
While handing down his sentence, U.S. District Judge William C. Griesbach noted the “extremely dangerous nature of the crime” that “called out for punishment.” Judge Griesbach noted Huebschmann’s considerable cooperation with authorities as well as his low likelihood to reoffend. But those positive factors were overridden by the strong need to deter others from engaging in this type of criminal behavior.
In addition to the prison sentence, Huebschmann was ordered to pay a $15,000 fine and will spend one year on supervised release following his release.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Department of Homeland Security. The case was prosecuted by Assistant United States Attorney Rebecca Taibleson.
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Chatham Man Pleads Guilty to Drug and Gun ChargesRead the Press Release
ALBANY, NEW YORK – Carlos Rivera, age 43, of Chatham, New York, pled guilty on December 13 to possessing and intending to distribute cocaine and to being a felon in possession of a firearm.
The announcement was made by United States Attorney Grant C. Jaquith and Special Agent in Charge Ray Donovan, U.S. Drug Enforcement Administration, New York Field Division.
Rivera admitted that on September 18, 2018, he possessed, at his residence in Chatham, approximately 480 grams of cocaine that he intended to distribute to others. He also admitted to possessing a Mossberg 535 12-gauge shotgun after having been convicted of a felony in New York.
Rivera faces up to 30 years in prison on the drug charge and up to 10 years in prison on the firearm charge, as well as a term of post-imprisonment supervised release of at least 6 years, and a maximum fine of $2 million, when he is sentenced by Senior United States District Judge Thomas J. McAvoy on May 12, 2020. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the DEA and the Columbia County Sheriff’s Office, and is being prosecuted by Assistant U.S. Attorneys Troy R. Anderson and Alicia Giglio Suarez.
Ceres Gamecock Breeder Indicted on Animal Cruelty ChargesRead the Press Release
FRESNO, Calif. — A federal grand jury returned a three-count indictment on Thursday, Dec. 12 against Joseph D. Sanford, 72, of Ceres, charging him with offenses involving cockfighting, U.S. Attorney McGregor W. Scott announced.
Sanford was arrested at his place of business this morning and will be arraigned in Fresno at 2:00 p.m. today.
According to court documents, Sanford is charged with conspiring to violate the Animal Welfare Act, unlawfully possessing animals for an animal fighting venture, and unlawfully selling animals for an animal fighting venture. The indictment seeks the forfeiture of thousands of game fowl at his business, Joe Sanford Gamefarm.
According to court documents, Sanford is the owner and operator of Joe Sanford Gamefarm, a 10.26 acre property in Ceres, where he breeds and sells gamecocks for cockfighting. Sanford also fights his own roosters. Following an undercover purchase of a trio of fighting birds, law enforcement officers searched Joe Sanford Gamefarm, where Sanford resides, and found a large cockfighting enterprise consisting of 2,956 game fowl. It is alleged in the indictment that Sanford was involved in the interstate shipments of game fowl. It is also alleged that Sanford acquired and maintained medical equipment, such as scalpels, syringes, thermometers, and medications for conditioning roosters and surgically altering them by removing their wattles, combs, spurs and other body parts.
This case is the product of an investigation by the U.S. Department of Agriculture, Office of Inspector General (USDA-OIG); the USDA Animal and Plant Health Inspection Service; the IRS Criminal Investigation; the U.S. Marshal Service; Homeland Security Investigations; the U.S. Forest Service; the Humane Society of the United States; the Stanislaus County Sheriff’s Office; the Placer County Animal Services, and the El Dorado County Animal Services. The Environmental Crimes Section of the U.S. Department of Justice also lent assistance. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
If convicted, Sanford faces a maximum statutory penalty of five years in prison and a $250,000 fine as to each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Carthage Sex Offender Pleads Guilty After Impregnating 14-Year-Old VictimRead the Press Release
SPRINGFIELD, Mo. – A prior sex offender in Carthage, Missouri, who impregnated a 14-year-old victim, pleaded guilty in federal court today to the sexual exploitation of a child.
Victor Alfonso Vasquez, 33, pleaded guilty before U.S. District Judge M. Douglas Harpool to the sexual exploitation of a child. Vasquez is a prior sex offender with prior felony convictions for statutory rape and statutory sodomy.
The investigation began when the 14-year-old victim, identified in court documents as “Jane Doe,” visited a health clinic for a pregnancy test, which indicated she was more than eight weeks pregnant. The victim told investigators she met Vasquez while playing a game on her cell phone when she was 13 years old. Vasquez then began contacting her via Facebook Messenger. They also exchanged sexually explicit images via SnapChat. During their online relationship, Vasquez discussed having a sexual relationship with Jane Doe, and he discussed physically meeting her to have sex.
On Jan. 19, 2018, Jane Doe lied to her mother at Vasquez’s direction and asked her mother to drop her off at a friend’s house. Her mother actually dropped her off at Vasquez’s residence, when Vasquez began a physical relationship with the child victim that lasted for several months.
Under federal statutes, Vasquez is subject to a mandatory minimum sentence of 25 years in federal prison without parole, up to a sentence of 50 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the FBI, the Joplin, Mo., Police Department, and the Southwest Missouri Cyber Crimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Carmichael Man Indicted for Sexually Exploiting MinorsRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment Thursday, Dec. 12 against Christopher Espinoza, 27, of Carmichael, charging him with two counts of sexual exploitation of a minor and one count of possession of child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, in 2018, Espinoza sexually exploited two minor victims, and on Jan. 11, 2019, he was found in possession of several electronic devices that contained child pornography.
Espinoza was arrested and is currently in custody. On Dec. 13, he was arraigned and entered a plea of not guilty.
This case is the product of an investigation by the Internet Crimes Against Children Task Force, a federally and state-funded task force managed by the Sacramento Sheriff’s Office with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant U.S. Attorney Roger Yang is prosecuting the case.
If convicted, Espinoza faces a maximum statutory penalty of 30 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
California Man Charged with Conspiracy to Distribute 114 Kilograms of CocaineRead the Press Release
NEWARK, N.J. – A California man has been charged with conspiring to distribute approximately 114 kilograms of cocaine in Hunterdon County, New Jersey, U.S. Attorney Craig Carpenito announced today.
Angel Alfonso Maldonado, 25, of Long Beach, California, is charged by complaint with one count of conspiring to distribute and possessing with intent to distribute over five kilograms of cocaine. He appeared today before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court and was detained.
According to documents filed in this case and statements made in court:
Law enforcement officers in the area of Clinton Township, New Jersey, observed a tractor-trailer pull off I-78 onto the shoulder of the highway. Maldonado, who is the owner of the tractor-trailer, appeared nervous when law enforcement approached.
A certified narcotics detection canine screened the outside of the tractor-trailer and alerted for the presence of narcotics on the side of the cabin of the tractor-trailer, as well as inside the cabin. Law enforcement subsequently searched the cabin and found two hidden compartments. Each hidden compartment contained approximately 57 kilograms of suspected narcotics. The approximately 114 kilograms were plastic wrapped, consistent with narcotics packaging. Law enforcement field-tested some of the kilograms, which tested positive for the presence of cocaine.
The count of conspiracy to distribute and possess with intent to distribute over five kilograms of cocaine carries a maximum penalty of life in prison, a mandatory minimum term of 10 years in prison, and a $10 million fine.
U.S. Attorney Carpenito credited the U.S. Attorney Carpenito credited the DEA Strike Force including agents and officers of the DEA; the New York City Police Department; the New York State Police; Immigration and Customs Enforcement – Homeland Security Investigations; the U. S. Internal Revenue Service Criminal Investigation Division; the Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection; U.S. Secret Service; the U.S. Marshals Service; New York National Guard; the Clarkstown Police Department; U.S. Coast Guard; Port Washington Police Department; and New York State Department of Corrections and Community Supervision, with the investigation leading to today’s charge..
The government is represented by Unit Chief Meredith J. Williams and Assistant U.S. Attorney Lauren E. Repole of the Organized Crime Drug Enforcement Task Force/Narcotics Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
CEO of Staten Island Technology Company Indicted for Stealing Hundreds of Thousands of Dollars Earmarked for Internet Access at Catholic Schools in the Diocese of BrooklynRead the Press Release
An indictment was unsealed today in federal court in Brooklyn charging John Comito, Chief Executive Officer of Staten Island-based AutoExec Computer Systems, Inc. (AutoExec) with mail and wire fraud in connection with the federal program known as E-rate. Comito was arrested this morning, and was arraigned this afternoon before United States Magistrate Judge Steven M. Gold. Comito was released on a $500,000 bond.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Philip R. Bartlett, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS), and David L. Hunt, Inspector General, Federal Communications Commission (FCC-OIG), announced the charges.
“Comito allegedly overbilled the E-rate program and schools for equipment and services in order to enrich himself at the expense of the children the program was designed to serve,” stated United States Attorney Donoghue. “This Office will vigorously prosecute those who defraud taxpayer-supported programs for personal gain.”
“Instead of completing the work he was trusted and contracted to perform, the defendant allegedly chose to bilk the government and steal from those less fortunate. Society will swiftly denounce this type of criminal behavior, and Comito will now he held accountable,” stated USPIS Inspector-in-Charge Bartlett.
“An important mission of the Office of Inspector General is to investigate allegations of fraud related to the E-rate Program,” stated FCC Inspector General Hunt. “We will continue to work with our law enforcement partners to investigate these matters, where the allegation involves a service provider seeking to take advantage of the program by retaining funds for his own purposes rather than providing equipment and services to needy schoolchildren.”
As set forth in the indictment and other court documents, the E‑rate program distributes funds to schools and libraries serving economically disadvantaged children to purchase telecommunication services, internet access and related equipment. In order to qualify, educational institutions must certify that they are purchasing equipment and services from a private vendor. The vendor must certify that it is providing the services and equipment as ordered, and is otherwise in compliance with the requirements of the program. If approved, the E-rate program defrays the cost by up to 90 percent.
From 2013 to 2017, 26 elementary, middle and high schools located in the Diocese of Brooklyn contracted with AutoExec to provide telecommunications equipment and services. At least eight schools received no equipment or services, and the remaining schools received partial, substandard or non-approved equipment and services. In total, Comito overbilled the E-rate program, and defrauded the program and schools, in the amount of approximately $426,000.
The charges in the superseding indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
If convicted, Comito faces a maximum sentence of 20 years’ imprisonment on each count of mail fraud and wire fraud.
Assistant United States Attorneys Francisco J. Navarro and Philip Pilmar are in charge of the prosecution.
The Defendant:
JOHN COMITO
Age: 68
Staten Island, New YorkE.D.N.Y. Docket No. 19-CR-593 (RMM)
Boyle County Woman Sentenced to 270 Months for Production of Child PornographyRead the Press Release
LEXINGTON, Ky. – Jacquolyn S. Walls-Land, 37, previously of Junction City, Kentucky, was sentenced to 270 months in federal prison, on Monday, before Chief United States District Judge Danny C. Reeves, for the production of child pornography.
According to the evidence at the trial of her co-defendant Richard Derringer, Jacquolyn Walls-Land, who previously pleaded guilty to one count of using a minor to engage in sexually explicit conduct for the purpose of producing child pornography, took videos of the minor female victim while Derringer sexually abused the victim. The sexual abuse, and recording of it, occurred on March 11, 2018. The evidence established that Derringer forced the minor victim to smoke methamphetamine with him, on multiple occasions, during an approximate 3-hour period while the sexual abuse occurred. Derringer even took hits of the methamphetamine himself and then exhaled into the minor victim’s mouth. The minor victim reported the sexual abuse and forced drug use to her mother, approximately 8 hours after the abuse ended, and the minor victim was taken to a local hospital, where she tested positive for methamphetamine.
Walls-Land’s co-defendant, Richard Derringer was sentenced to 100 years in federal prison earlier this month. Under federal law, Walls-Land must serve 85 percent of her prison sentence. Walls-Land will be under the supervision of the U.S. Probation Office for 30 years, following her release.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; James Robert Brown, Jr., Special Agent in Charge, Federal Bureau of Investigation; and Richard Sanders, Commissioner, Kentucky State Police, jointly announced the sentence.
The investigation was conducted by the FBI and Kentucky State Police. Assistant U.S. Attorneys David Marye and Mary Melton represented the United States.
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Boston Man Sentenced for Federal Firearm OffenseRead the Press Release
BOSTON – A Boston man was sentenced on Thursday, Dec. 12, 2019, in federal court in Boston for illegally possessing a firearm and ammunition.
Robert Vishaun Roscoe, 28, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 27 months in prison and three years of supervised release. In September 2019, Roscoe pleaded guilty to one count of being a felon in possession of a firearm and ammunition. Roscoe was charged in May 2019 and has been in custody since.
On Oct. 11, 2018, law enforcement officers encountered Roscoe with a loaded black KelTec 9mm semi-automatic pistol and seven rounds of ammunition in Dorchester. Roscoe had been previously convicted of a crime punishable by more than one year in prison and was therefore prohibited from possessing a firearm or ammunition.
United States Attorney Andrew E. Lelling; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Boston Police Chief William G. Gross; and Suffolk County District Attorney Rachael S. Rollins made the announcement today.
This prosecution 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.
Bluefield Woman Guilty Following Three-Day Jury TrialRead the Press Release
Abingdon, VIRGINIA – Following a three-day jury trial in U.S. District Court in Abingdon, the former executive vice president of J&R Manufacturing in Bluefield, Virginia, was convicted of tax charges, wire fraud, and making false statements, United States Attorney Thomas T. Cullen made the announcement today.
Teresa Barringer, 58, of Bluefield, Va., was convicted last week on three counts of willfully failing to pay over payroll taxes, two counts of wire fraud, and three counts of making false statements to a federal law enforcement officer.
“Payroll-tax schemes and other forms of workplace fraud are serious federal crimes and ones that the Department of Justice and the IRS take very seriously,” U.S. Attorney Cullen stated today. “I appreciate the hard work of the FBI and IRS agents in uncovering the defendant’s criminal conduct and bringing her to justice.”
According to evidence presented at trial, Barringer failed to pay more than $175,000 in payroll taxes withheld from employees. She also fraudulently prematurely obtained over $360,000 from her 401K plan by falsely claiming that she needed the money to avoid foreclosure and falsely representing her last day of employment. Barringer also lied to federal agents when questioned about her employment and the 401K withdrawals.
The investigation of the case was conducted by the Federal Bureau of Investigations, the Internal Revenue Service, and the Virginia State Police. Assistant United States Attorneys S. Cagle Juhan and Randy Ramseyer prosecuted the case for the United States.
Arlington Man Indicted for Stealing Government BenefitsRead the Press Release
BOSTON – An Arlington man was arrested on Friday, Dec. 13, 2019, and charged with fraudulently receiving disability benefits from the Department of Veterans Affairs and the Social Security Administration.
Patrick Quinn, 47, was charged with two counts of theft of public funds and two counts of making false statements. He was released on conditions following an initial appearance in federal court in Boston.
According to the indictment, since January 2012, Quinn stole more than $420,000 in veterans benefits and Social Security benefits by falsely telling the Department of Veterans Affairs and Social Security Administration that he was unable to work due to a disability, when in reality, he owned and operated Quinn Insurance Group, Inc.
The charge of theft of public funds provides for a sentence of up to 10 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of making a false statement charge provides for a sentence of up to five years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Jeffrey Stachowiak, Acting Special Agent in Charge of the Department of Veterans Affairs, Office of Inspector General, Northeast Field Office; and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit is prosecuting the case.
Andrew R. Vara Appointed as U.S. Trustee for Ohio and MichiganRead the Press Release
Attorney General William P. Barr has appointed Andrew R. Vara as the U.S. Trustee for Ohio and Michigan (Region 9) effective December 22, 2019, the Executive Office for U.S. Trustees (EOUST) announced today. He will replace Daniel M. McDermott, who is retiring after 30 years of government service. In addition to his appointment in Region 9, Mr. Vara also will continue to serve as the U.S. Trustee for Region 3 (Delaware, New Jersey, and Pennsylvania) on an interim basis.
Mr. Vara has served the U.S. Trustee Program with distinction for 26 years, first as a Trial Attorney under the Attorney General’s Honors Program and then as an Assistant U.S. Trustee in Wilmington, Delaware, from 2005 to 2008 and in Cleveland for the past 11 years. He received his law degree from The Ohio State University Michael E. Moritz College of Law and his undergraduate degree magna cum laude from Duke University.
“Mr. Vara has made significant contributions to the U.S. Trustee Program both at the local and national levels, and he possesses the legal and managerial skills that will allow Region 9 to continue to perform at the highest level,” said EOUST Director Cliff White. “I also congratulate and thank Mr. McDermott for his many years of exceptional leadership in support of the U.S. Trustee Program’s mission.”
The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The USTP has 21 regions and 90 field office locations. Region 9 is headquartered in Cleveland, Ohio, with additional offices in Cincinnati and Columbus, Ohio, and Detroit and Grand Rapids, Michigan.
Albany Man Pleads Guilty to Possessing Loaded Firearms as a FelonRead the Press Release
ALBANY, NEW YORK – Steven McGill, age 49, of Albany, pled guilty on December 13 to being a felon in possession of firearms and ammunition.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
McGill admitted that on January 9, 2019, in Troy, New York, he possessed a loaded .40 caliber pistol and a loaded .380 caliber pistol, as well as the ammunition contained within each firearm. He also admitted that he provided those firearms to another individual who sold them to a third party and returned the money to McGill.
McGill faces up to 10 years in prison, a term of post-imprisonment supervised release of up to 3 years, and a maximum fine of $250,000, when he is sentenced by Senior United States District Judge Thomas J. McAvoy on May 13, 2020. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the FBI and its Capital District Safe Streets Gang Task Force, and is being prosecuted by Assistant U.S. Attorney Alicia Giglio Suarez.
4 Face Federal Drug Trafficking Charges after Ultralight Aircraft Used to Smuggle 184 Pounds of Meth from Mexico into United StatesRead the Press Release
RIVERSIDE, California – Four men who used off-road vehicles to retrieve a load of methamphetamine that was smuggled into the United States on an ultralight aircraft and dropped near the Salton Sea are scheduled to make their first court appearances this afternoon on federal narcotics trafficking charges.
The four men were arrested early Friday morning after authorities tracked the ultralight aircraft as it entered U.S. airspace and flew to the area of North Shore, a community on the edge of the Salton Sea. After the aircraft descended to a low altitude, Border Patrol agents observed two off-road utility vehicles leaving the area. Two of the men were in one vehicle and were arrested without incident; the other two were taken into custody after they fled from a marked Border Patrol vehicle and drove into the Coachella Canal.
The four men were named in a criminal complaint filed Saturday that charges each with one count of possession with the intent to distribute methamphetamine, which carries a statutory maximum penalty of life in federal prison.
The four defendants are Victor Bugarin-Perez, 28, of Mecca; Juan Favela-Paredez, 25, a Mexican national in the United States illegally; Juan Carlos Iturriaga-Centeno, 33, a Mexican national in the United States illegally; and his brother, Leonardo Iturriaga-Centeno, 28, of North Shore.
According to the affidavit in support of the criminal complaint, the Border Patrol and the Air and Marine Operations Center in Riverside tracked the ultralight as it crossed the international border near Calexico. After radar surveillance indicated that the ultralight descended and then headed back to Mexico, a California Highway Patrol aircraft saw two vehicles. The two vehicles left the area and were intercepted by a marked Border Patrol vehicle. A Polaris off-road vehicle with the Iturriaga-Centeno brothers stopped, but a Can-Am vehicle with the other two men sped away. The Can-Am vehicle was driven into the Coachella Canal, and the Border Patrol rescued Bugarin-Perez and Favela-Paredez when they were unable to exit the canal.
After the men were taken into custody, authorities recovered from the canal 26 Tupperware containers that contained a total of 184.5 pounds of methamphetamine. Two GPS devices were found in the Polaris, which authorities believe were attached to the narcotics dropped from the ultralight.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
This investigation is being conducted by the Drug Enforcement Administration.
This matter is being prosecuted by Assistant United States Attorney Benjamin J. Weir of the Riverside Branch Office.
Saturday 14 December 2019
Monmouth County Man Charged with Being Felon in Possession of FirearmRead the Press Release
NEWARK, N.J. – A Monmouth County man has been charged with being a previously convicted felon in possession of a firearm, U.S. Attorney Craig Carpenito announced today. The weapon in question was found, along with a number of other weapons and ammunition, during a lawful search of a pawn shop and residence connected to one of the perpetrators of the Dec. 10, 2019, mass shooting in Jersey City, New Jersey.
Ahmed A-Hady, 35, of Keyport, New Jersey, is charged in a criminal complaint with one count of being a previously convicted felon in possession of a firearm. He was arrested by FBI agents early this morning and is expected to appear on Monday before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court.
According to the complaint, filed today:
On Dec. 10, 2019, there was a mass shooting in Jersey City in which two individuals, a male (Individual 1) and a female (Individual 2), killed three civilians after earlier killing a law enforcement officer. After the shooting, law enforcement recovered from Individual 1’s right rear pants pocket a handwritten note that contained a telephone number ending in 4115, and a Keyport, New Jersey, address. Law enforcement also recovered several weapons carried by Individuals 1 and 2, including an AR-15 rifle.
FBI agents determined that the phone number ending in 4115 contained on the note belonged to A-Hady. Law enforcement also determined that the Keyport address listed on the note was a storefront for a pawn shop.
Law enforcement obtained records of A-Hady’s history of firearm purchases. Those records indicated that around May 23, 2007, A-Hady purchased a Smith and Wesson .45 caliber handgun bearing serial number NHN5284 (the “.45 caliber”). Records also indicate that on or about June 2, 2007, A-Hady purchased a Smith and Wesson .44 caliber handgun bearing serial number CEV4085 (the “.44 caliber”).
Subsequent to purchasing the firearms, A-Hady was convicted on April 2, 2012, in Monmouth County Superior Court, of attempting to obtain a controlled dangerous substance or analog by fraud, a crime punishable by more than one year in prison. As a result of that conviction, A-Hady is no longer permitted to possess a firearm.
On the evening of Dec. 13, 2019, law enforcement officers traveled to the pawnshop and interviewed A-Hady and two of his relatives. During the course of A-Hady’s interview, he admitted to owning both the .45 caliber and the .44 caliber, but falsely denied that they were on the premises.
After A-Hady was interviewed, one of his relatives (Relative-1) told law enforcement that there was a safe located inside Company A. Relative-1 further stated that the safe contained firearms, including A-Hady’s .44 and .45 caliber handguns. Relative-1 subsequently consented to a search of the safe located inside the pawnshop. Law enforcement recovered three firearms: (i) a PK 380; (ii) a Ruger 9mm bearing serial number 33389546; and (iii) the Smith and Wesson .44 caliber handgun bearing serial number CEV4085 referenced above.
Law enforcement then lawfully searched both the pawnshop and A-Hady’s private residence. During the search of the pawnshop, law enforcement recovered six rifles (including three AR-15-style assault rifles), three handguns, and one shotgun. In addition, during the searches of the pawnshop and A-Hady’s private residence, law enforcement recovered over 400 rounds of ammunition, including a large number of hollow point bullets.
The charge of being a previously convicted felon in possession of a firearm carries a maximum potential penalty of 10 years in prison and a $250,000 fine.
U.S. Attorney Craig Carpenito credited special agents with the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson in Newark; the Office of the New Jersey Attorney General, under the direction of Attorney General Gurbir S. Grewal; and the N.J. State Police, under the direction of Col Patrick J. Callahan, with the investigation leading to the charge. U.S. Attorney Carpenito also thanked the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, the Jersey City Police Department, under the direction of Director James Shea, and the Keyport Police Department, under the direction of Chief Mark Hafner, for their assistance.
The government is represented by Ronnell Wilson, Chief of the National Security Unit of the U.S. Attorney’s Office for the District of New Jersey, and Assistant U.S. Attorneys Dean C. Sovolos and Thomas S. Kearney, also of the National Security Unit.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Friday 13 December 2019
Zambian National Who Stole U.S. Taxpayer Identities and Refunds Sentenced to 8+ Years in Federal PrisonRead the Press Release
A Zambian national who operated a scheme to steal U.S. taxpayer identities and fraudulently claim their refunds was sentenced to 97 months in federal prison, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Innocent Wangwamba, 36, of Zambia, was sentenced by District Judge Sam A. Lindsay on December 13 after an extensive investigation led by IRS Criminal Investigations Dallas Field Office. The defendant pleaded guilty in July to theft of public money and aiding and abetting in Mansfield, Texas.
In his plea papers, he admitted that from February 2012 to March 2014, he participated in a stolen identity refund fraud scheme involving falsely claimed tax refunds from the Department of the Treasury. His participation in the scheme involved obtaining Electronic Filing Identification Numbers from IRS in stolen identities, obtaining and sharing personal identifying information of victims, setting up fraudulent accounts with third party providers such as Drake and Refund Advantage to file tax returns and obtain refunds, directing falsely claimed returns to particular bank accounts.
Through this scheme, the co-conspirators submitted more than 7,400 fraudulent tax returns in the names of U.S. taxpayers using stolen personal identifying information. The schemers attempted to obtain US $36,000,000 from the U.S. Treasury, but IRS was able to prevent more than US $29,000,000 of the attempted fraud. Still, the co-conspirators stole approximately $6,000,000 from the U.S. Treasury. Most of the defendant’s participation occurred while he was outside of the United States. At the end of one of his trips to the United States, the defendant was arrested at JFK Airport in New York attempting to board a flight out of the country.
The defendant, a citizen of Zambia with a permanent resident card to live in the United States, will likely face deportation proceedings after his sentence.
The Internal Revenue Service’s Criminal Investigation Division conducted the investigation. Assistant U.S. Attorney mary Walters prosecuted the case
Woburn Man Sentenced for Being a Felon in Possession of Firearm and AmmunitionRead the Press Release
BOSTON – A Woburn man was sentenced yesterday in federal court in Boston for being a felon in possession of a firearm and ammunition.
Vasily Hardy, 28, was sentenced by U.S. District Court Senior Judge Rya W. Zobel to 15 months in prison and three years of supervised release. In September 2019, Hardy pleaded guilty to one count of being a felon in possession of a firearm and ammunition and has been in custody since his arrest in January 2019.
On Nov. 14, 2018, a police officer conducted a vehicle stop after observing the driver make multiple traffic violations. The officer was informed over the radio that there was an active warrant for Hardy’s arrest and he was subsequently arrested and his vehicle was searched. During the search, a Sig Sauer, semi-automatic pistol loaded with an eight-round magazine of .45 caliber ammunition as well as a second eight-round magazine were recovered. During an interview with law enforcement, Hardy confirmed that the handgun belonged to him and that he did not have a license to carry a firearm in Massachusetts. Further investigation revealed that Hardy was prohibited from possessing firearms and ammunition due to a previous conviction of larceny from a person in 2013, which is punishable by more than a year in jail.
United States Attorney Andrew E. Lelling and Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement today. Valuable assistance was provided by the Wellesley Police Department, Norfolk County District Attorney’s Office and the Hillsborough County Attorney’s Office in New Hampshire. Assistant U.S. Attorney Stephen W. Hassink of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.
Waxahachie Man Sentenced to Four Years in Federal Prison for Extorting Women for Sexually Explicit Photographs and VideosRead the Press Release
In El Paso, a federal judge sentenced 32–year-old James Alger of Waxahachie, TX, to four years in federal prison for his scheme to extort females into sending him sexually explicit photos and videos, announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Luis Quesada, El Paso Division.
On December 6, 2019, Senior U.S. District Judge David Briones sentenced Alger to two years imprisonment for wire fraud, cyberstalking, and interstate communications with intent to extort followed by two years imprisonment for aggravated identity theft. Judge Briones also ordered that Alger be placed on supervised release for a period of three years after completing his prison term.
On April 2, 2019, Alger pleaded guilty to all four charges. By pleading guilty, Alger admitted that from 2016 to 2018, he messaged over 1,000 women he found through social media in an effort to obtain sexually explicit videos and pictures of them. Alger admitted that he would pretend to be one of several wealthy, famous individuals who would then offer to pay a large sum of money to have sex with the women he targeted. He managed to convince over 100 women to send him nude photos and videos, then subsequently demanded his victims continue sending him more sexually explicit videos and photos or he would release the explicit material in his possession to the victim’s friends and family.
The FBI conducted this investigation. Assistant U.S. Attorney Ian Hanna prosecuted this case on behalf of the government.
Virginia Tax Lobbyist Sentenced to Prison for Filing a False Tax ReturnRead the Press Release
An Alexandria, Virginia, tax lobbyist was sentenced to one year in prison today for willfully filing a false tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia.
According to court documents, attorney James F. Miller, 67, underreported his gross income on his 2010 through 2014 tax returns by more than $2.2 million. Miller, a tax policy lobbyist and former employee of the Justice Department’s Tax Division, filed multiple false tax returns with the Internal Revenue Service (IRS). These returns omitted partnership income he received from two law firms and the gross receipts he received from his own lobbying firm. The total tax loss resulting from Miller’s fraudulent conduct was more than $730,000.
In addition to the term of imprisonment, U.S. District Judge Leonie M. Brinkema, ordered Miller to serve one year of supervised release and to pay restitution to the United States in the amount of $735,933.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Terwilliger commended agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant United State Attorney Ryan S. Faulconer from the Eastern District of Virginia and Trial Attorney Terri-Lei O’Malley of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Vandalia Man Sentenced for Drug and Gun OffensesRead the Press Release
On December 11, 2019, Wade Garrett McWhorter, 26, of Vandalia, Illinois, was sentenced to 64
months’ imprisonment for distributing methamphetamine and being a felon in possession of a firearm,
United States Attorney, Steven D. Weinhoeft, announced today.Court documents established that McWhorter, who pled guilty in August of 2019, was a felon who
possessed and sold three firearms, one of which was stolen, and distributed methamphetamine on
multiple occasions. The offenses occurred in Bond, Clinton and Fayette Counties. McWhorter has been
in custody since his arrest on March 5, 2019.A federal grand jury charged McWhorter and Aeron Michael Davis in the same indictment. In November,
a federal judge sentenced Davis to 50 months’ imprisonment for his involvement in one of the
methamphetamine sales and one of the firearm sales.The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation
leading to the charges against McWhorter and Davis.
U.S. Attorney’s Office in Miami Hosts Reentry SimulationRead the Press Release
“A Day in the Life”
MIAMI, FL - U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida announced the successful completion of a Reentry Simulation yesterday at the U.S. Attorney’s Office in Miami. More than 40 community members, officials and stakeholders attended the event, which simulates the struggles and challenges faced by individuals who are transitioning from incarceration back into society. The U.S. Attorney’s Office for the Southern District of Florida and its dedicated partners continue to take significant steps to reduce recidivism and help formerly incarcerated individuals successfully contribute to their communities.
The Reentry Simulation is just one of many initiatives that support Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction strategy. Locally, PSN is carried out by the Violence Reduction Partnership (VRP), a holistic, three-pronged approach to violence reduction – one focused not only on enforcement, but also on prevention and reentry. Utilizing this multi-faceted approach, the VRP aims to reduce crime and promote safer and more resilient communities.
Each year, more than 600,000 citizens return to our neighborhoods after serving time in federal and state prisons, and another 11.4 million individuals cycle through local jails. The long-term impact of a criminal record prevents many returning citizens from obtaining employment, housing, a quality education, adequate health care, personal identification and even financial credit. These often-crippling barriers can contribute to a cycle of incarceration that makes it difficult for even the most well intentioned individuals to continue on the right path and avoid reentering the criminal justice system. Within the Southern District of Florida, comprehensive reentry initiatives promote the successful reintegration of returning citizens and strive to reduce recidivism. The goal is to help those who have paid their debt to society best prepare for substantive opportunities beyond the prison gates, promote family unity, contribute to the health of our economy, advance public safety, and sustain the strength of our local communities.
Participants in today’s VRP Reentry Simulation gained an understanding of the significant obstacles faced by men and women, upon their release from incarceration. Employment opportunities, social services, and resources are needed in order to support the returning citizens’ successful transition back into our local community.
In addition to the Reentry Simulations, the U.S. Attorney’s Office and our partners support other invaluable reentry initiatives.
In 2016, the Southern District of Florida launched its first ever Reentry Court, known as the Court-Assisted Reentry (CARE) Initiative. The CARE Initiative is a problem-solving, collaborative effort between U.S. District Court, the U.S. Probation Office, the U.S. Attorney’s Office and Federal Public Defender representatives, and a Department of Justice Re-Entry Specialist. The CARE Team’s mission is to: help those returning from prison to become productive members of society by providing coordination for job training and placement, housing assistance, educational support, and the medical, substance abuse and mental health referrals; promote community safety by reducing recidivism and victimization; and reduce taxpayer spending on incarceration. Through bi-weekly court sessions, the CARE Team assesses each participants’ progress, addresses any issues with his or her reentry, decides whether wrap-around services can be provided, and determines appropriate rewards and/or sanctions. To date, six individuals have successfully graduated from the program.
To further support our returning citizens, the U.S. Attorney’s Office, alongside the Federal Bureau of Prisons, U.S. Probation and non-profit service providers have conducted Reentry and Resource (“in-reach”) Meetings at both the Federal Detention Center and the Federal Correctional Institution located in the Southern District. The meetings provide inmates preparing to be released from incarceration with the tools and information they need to navigate their successful re-entry into society and reduce their risk of recidivism. Since 2013, more than 300 individuals have attended the meetings and received a Reentry Resource Guide.
The U.S. Attorney’s Office and our community partners also continue to support the South Florida Reentry Center Hub, a traveling one-stop service center for returning citizens and their families. The Reentry Center Hub provides returning citizens with easy, centralized access to a variety of reentry services within their local communities. Since 2014, Reentry Center Hub events, held in Fort Pierce, Miami Gardens, Liberty City and Goulds, Florida, have reached more than 500 returning citizens and their families.
The success of these initiatives and today’s simulation would not have been possible without community support.
Additional information regarding the CARE and VRP initiatives is available at [email protected] (link sends e-mail) or by calling (305) 961-9134.
U.S. Attorney: Federal Grant will Support Drug Court in Ellis CountyRead the Press Release
WICHITA, KAN. - A grant from the Justice Department’s Office of Justice Programs will support the drug court program in Ellis County, U.S. Attorney Stephen McAllister said today.
Ellis County will receive $406,366 as part of more than $333 million in Justice Department grants announced today to fight the opioid crisis across the nation.
“Drug courts are proven to reduce recidivism and increase the likelihood of rehabilitation,” McAllister said.
Funding for the grant to Ellis County comes from the Adult Drug Court and Veterans Treatment Court Discretionary Grant Program, Category 2. The grant supports enhancement of fully operational drug courts that incorporate the evidence-based principles included in the National Association of Drug Court Professionals’ Adult Drug Courts Best Practice Standards.
Kansas received a total of $30.9 million in grant awards from OJP in fiscal year 2019.
Information about the programs and awards announced today is available here. For more information about OJP awards, visit the OJP Awards Data webpage .
U.S. Attorney Murray Announces That the Justice Department Has Awarded More Than $333 Million to Fight the Opioid CrisisRead the Press Release
CHARLOTTE, N.C. – The Justice Department’s Office of Justice Programs today announced awards of more than $333 million to help communities affected by the opioid crisis, of which more than $3.5 million will help public safety and public health professionals in the Western District of North Carolina to combat substance abuse and respond effectively to overdoses. OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan and U.S. Attorney Andrew Murray made the announcement.
“The opioid crisis has destroyed far too many lives and left too many Americans feeling helpless and hopeless,” said PDAAG Sullivan. “This epidemic—the most deadly in our nation’s history—is introducing new dangers and loading public health responsibilities onto the public safety duties of our law enforcement officers. The Department of Justice is here to support them during this unprecedented and extremely challenging time.”
With more than 130 people dying from opioid-related overdoses every day, the Department of Justice has made fighting addiction to opioids—including heroin and fentanyl—a national priority. The Trump Administration is providing critical funding for a wide range of activities—from preventive services and comprehensive treatment to recovery assistance, forensic science services and research—to help save lives and break the cycle of addiction and crime.
“Opioid abuse and addiction are rampant nationwide, and unfortunately, Western North Carolina is not immune from this national epidemic. Federal funding provided by the Justice Department to counties in this district will go a long way toward providing much-needed services to the communities hardest hit by the widespread abuse of opioids,” said U.S. Attorney Murray.
The awards announced today support an array of activities designed to reduce the harm inflicted by these dangerous drugs. Grants will help law enforcement officers, emergency responders and treatment professionals coordinate their response to overdoses. Funds will also provide services for children and youth affected by the crisis and will support the nationwide network of drug and treatment courts. Other awards will address prescription drug abuse, expand the capacity of forensic labs and support opioid-related research.
The following awards, totaling $3,555,478, were made to agencies and counties in the Western District of North Carolina, to support comprehensive abuse site-based programs, and/or adult drug court and treatment court for veterans.
- Buncombe County Health and Human Services - $878,803.
- Rutherford County - $600,000.
- Burke County - $600,000.
- Appalachian District Health Department - $551,257.
- Catawba County - $500,000.
- Cleveland County Health Department - $425,418
Information about the programs and awards announced today is available here. For more information about OJP awards, visit 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 and 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.
Two convicted of stealing from labor unionRead the Press Release
HOUSTON - Two 67-year-old Houston women pleaded guilty today for their roles in an embezzlement scheme, announced U.S. Attorney Ryan K. Patrick.
Beverly Davis and Evelyn Smith were each employed with the Communications Workers of America Local 6222 in Houston. Davis was employed from 2010 to 2017, while Smith served as secretary/treasurer from 2005 to 2018.
At the plea today, Davis admitted she used union funds to pay for personal expenses and other unauthorized charges. By the time she ceased doing so in 2017, she had embezzled union funds in the amount of $85,536.77.
Smith began using union funds to pay for personal expenses in 2011. She stopped in 2018, but had taken $50,967.76 during that time.
According to the plea agreement, Davis administered a fund intended to help union members in financial hardships. As part of the scheme, she falsified reports to hide her activity. Smith had control over the general fund at the time she made the unauthorized transactions.
U.S. District Judge Keith P. Ellison accepted the pleas today and set sentencing for Feb. 28, 2020. At that time, each woman faces up to five years in federal prison and a possible $10,000 maximum fine.
They were permitted to remain on bond pending those hearings.
The U.S. Department of Labor-Office of Labor Management Standards conducted the investigation. Assistant U.S. Attorney Rodolfo Ramirez is prosecuting the case.
Two New York Men Charged with Manipulating Publicly Traded StockRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that defendants Joseph Fabiilli, 58, of Middle Village, New York, and Christopher Knight, 55, of Forest Hills, New York, were charged by Indictment and arrested for conspiracy to commit securities fraud and securities fraud, related to their manipulation of the securities of Mainstream Entertainment, Inc., n/k/a Volt Solar Systems, Inc.
The Indictment alleges that Fabiilli, Knight and others manipulated the stock of Mainstream Entertainment, Inc., a publicly traded security, through fraudulent press releases, a fraudulent securities disclosure filed with the U.S. Securities and Exchange Commission, and other fraudulent communications, and through manipulative stock trading. The defendants and others were thus able to fraudulently inflate the price of Mainstream Entertainment stock, and then sell their own shares at inflated prices, reaping illicit proceeds – a scheme which is commonly referred to as a “pump and dump”.
“The United States’ securities laws exist to safeguard the integrity of the markets and to protect individual investors who play by the rules. Accordingly, they must be vigorously enforced,” said First Assistant U.S. Attorney Williams. “These defendants allegedly violated these laws and will be held accountable if convicted. The U.S. Attorney’s Office appreciates the substantial assistance provided by the U.S. Securities and Exchange Commission in investigating this case.”
“Fraudsters use ‘pump and dump’ schemes to enrich themselves, at the expense of innocent investors,” said Michael T. Harpster, Special Agent in Charge of the FBI's Philadelphia Division. “The FBI is committed to cracking down on such harmful market manipulation, to protect both the public and our financial system.”
If convicted, the defendants face a maximum possible sentence of 50 years imprisonment, a $500,000 fine, a 3-year period of supervised release, and a $200 special assessment.
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Michael J. Rinaldi.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Two New Haven Residents Charged with Trafficking Heroin and FentanylRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven has returned an eight-count indictment charging JAMES COOPER, also known as “Jimi” and “Bamboo,”48, and MINISHA SUMLER, also known as “Mish,” 30, both of New Haven, with narcotics trafficking offenses.
The indictment was returned on December 10, and both defendants were arrested yesterday. Cooper is detained, and Sumler was released today on a $25,000 bond.
As alleged in court documents, between August and November 2019, law enforcement made multiple controlled purchases of distribution quantities of heroin and fentanyl from Cooper and Sumler.
The indictment charges Cooper and Sumler with one count of conspiracy to distribute and to possess with intent to distribute heroin and fentanyl, and with additional counts of possession with intent to distribute, and distribution of, heroin and fentanyl. If convicted, Cooper and Sumler face a maximum term of imprisonment of 20 years on each count of conviction.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. The charges contained in the indictment are only allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Drug Enforcement Administration New Haven Task Force and the Hamden Police Department. The Task Force includes participants from the U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia, Meriden, Derby, Middletown, Naugatuck and Waterbury Police Departments. The case is being prosecuted by Assistant U.S. Attorney Nathaniel J. Gentile.
Two Men Sentenced for Their Roles in Identity Theft ScamsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Jeriel Slay, 29, of Brooklyn, NY, and co-defendant Sirr Wright, 44, of Norfolk, VA, who were each convicted of conspiracy to commit wire fraud and aggravated identity theft, were sentenced to serve 112 months and 48 months in prison respectively by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Jonathan P. Cantil, who handled the case, stated that between December 2016 and September 2018, the defendants conspired with Angela Slay, Michael Wright, and others to defraud multiple victims.
As a part of their scheme, Jeriel and Angela Slay, who are siblings, stole the identities of unsuspecting individuals and created fictitious Limited Liability Companies (LLCs), with company names indicating ownership by the victims. The defendants then opened bank accounts under the names of the LLCs and fraudulently transferred money from a victim’s actual bank account to the LLC bank account.
Specifically, on December 14, 2016, Jeriel Slay fraudulently obtained Victim 1’s personally identifying information from the internet and opened a bank account in Victim 1’s name. Jeriel Slay then contacted Victim 1’s legitimate financial institution and transferred money via wire transfer from Victim 1’s legitimate account to the fraudulent bank account. Jeriel Slay, using device-making equipment, then created fraudulent driver’s licenses, fraudulent utility bills, and other identification documents in the name of Victim 1. The fraudulent driver’s license had Victim 1’s information but Sirr Wright’s image on the card. Using these fraudulent identification documents, Wright went to the bank that serviced the fraudulent Victim 1 bank account and withdrew the funds from that fraudulent account, totaling $65,960.
All defendants have been convicted in this case.
The sentencings are the result of an investigation by the Federal Bureau of Investigation, Buffalo Division, under the direction of Special Agent-in-Charge Gary Loeffert.
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Two Florida Men Facing Federal Indictment in Maryland for Allegedly Scamming Elderly Victims of More Than $1.5 MillionRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted David James Green, age 24, of Miami Gardens, Florida, and McArnold Charlemagne, age 32, of Miramar, Florida, on federal charges of mail fraud and conspiracy to commit mail fraud, in connection with a scheme in which they allegedly defrauded more than 65 elderly victims of more than $1.5 million. The indictment was returned on December 3, 2019, and was unsealed on December 12, 2019.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
According to the seven-count indictment, from January 2018 through August 2019, the defendants were part of a conspiracy to defraud elderly victims by persuading them to send thousands of dollars in cash to members of the conspiracy by falsely stating that the money would be used to help the victims’ relatives pay legal or other expenses in connection with crimes and other incidents that had not occurred. Charlemagne and Green’s co-conspirators allegedly telephoned elderly victims throughout the United States, posing as a police officer, lawyer, or other individual, falsely telling the victim that a relative, typically the victim’s grandchild, had been incarcerated in connection with a car accident or traffic stop involving a crime, and needed money—often tens of thousands of dollars—for bail, legal fees, and other expenses.
As stated in the indictment, during the telephone calls, the co-conspirators directed victims to send cash to a particular address via an overnight delivery service. The co-conspirators allegedly even posed as the victims’ relatives to further induce them to send the cash. Once the victims did send money, the co-conspirators called the victims asking for more cash, regularly obtaining tens of thousands of dollars from the retirement savings of victims. To prevent the victims from sharing the information with anyone, the co-conspirators allegedly told the victims that a “gag order” had been placed on the case requiring secrecy, or that the situation was embarrassing for the grandchild and they didn’t want anyone else to know about it.
The indictment further alleges that in order to conceal the crime, Charlemagne, Green, and other co-conspirators identified residential locations across the country where the cash should be sent, including in Maryland, Pennsylvania, Delaware, and Florida. Charlemagne and Green allegedly identified locations that were either vacant or for sale, so that no one would be at those locations at the time of the deliveries, then retrieved the packages of cash when they were delivered. Charlemagne, Green and other co-conspirators recruited and instructed additional people to assist in retrieving packages of cash from specified locations.
If convicted, Charlemagne and Green each face a maximum sentence of 20 years in federal prison for mail fraud conspiracy and for each of three counts of mail fraud. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. Charlemagne had his initial appearance today in U.S. District Court in Baltimore. Chief U.S. Magistrate Judge Beth P. Gesner ordered Charlemagne to be released to a third party custodian, with the condition that he post a $100,000 bond. An arrest warrant has been issued for Green.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The Department of Justice has an interactive tool for elders who have been financially exploited to help determine to which agency they should report their incident, and also a senior scam alert website. Victims are encouraged to file a complaint online with the FBI’s Internet Crime Complaint Center at this website or by calling 1-800-225-5324. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Sean R. Delaney and Matthew J. Maddox, who are prosecuting the case.
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Two Dallas Men Plead Guilty to Hate Crimes After Using Dating App to Target Gay Men for Violent CrimesRead the Press Release
Daryl Henry, 24, and Pablo Ceniceros-Deleon, 19, pleaded guilty yesterday to a federal hate crime and other charges in connection with their involvement in a scheme to target gay men for violent crimes.
Daryl Henry pleaded guilty to one count of 18 U.S.C. § 249 (hate crime act) and one count of 18 U.S.C. § 371 (conspiracy to commit hate crimes, kidnapping, and carjacking). Pablo Ceniceros-Deleon pleaded guilty to one count of 18 U.S.C. § 249 (hate crime act), one count of 18 U.S.C. § 2119 (carjacking), and one count of 18 U.S.C. § 924(c) (use of a firearm during and in relation to a crime of violence).
“Kidnappings, carjackings, thefts, sexual assaults, and armed, violent attacks against innocent people are heinous crimes, and when perpetrators commit those crimes against victims because of their sexual orientation, the U.S. Department of Justice will continue zealously to seek justice for the victims and to punish the perpetrators to the full extent of the law,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “Prosecuting those who commit such monstrous acts because of victims’ sexual orientation is a priority of the Department of Justice, and we will continue to bring to justice anyone who commits such hateful, violent crimes.”
“These defendants used Grindr to single out their victim based on sexual orientation – something the Northern District of Texas simply will not tolerate,” said U.S. Attorney Erin Nealy Cox for the Northern District of Texas. “Unfortunately, this is not the first time a dating app user has fallen victim to a violent crime. I’m urging the public to be vigilant about the dangers lurking online.”
“One of the FBI’s top priorities is to defend the civil rights of the communities we serve. We actively work with our law enforcement partners to investigate hate crimes and achieve justice for the victims impacted by these violent crimes,” said FBI Dallas Special Agent in Charge Matthew J. DeSarno. “The victims in this case were specifically targeted because of their sexual orientation. The FBI wants to reassure the public that we will pursue individuals who commit violent hate acts against any member of our community.”
According to court documents filed in connection with their guilty pleas, both Henry and Ceniceros-Deleon admitted Grindr was used, a social media dating platform primarily used by gay men, to lure gay men to a vacant apartment and other areas in and around Dallas for robbery, carjacking, kidnapping, and hate crimes. Henry admitted that he and others held the victims against their will in the vacant apartment. Ceniceros-Deleon admitted that he and others traveled to local ATMs to withdraw cash from the victims’ accounts. Both Henry and Ceniceros-Deleon admitted that while the victims were being held captive they were subjected to taunts based upon the co-conspirators’ perception of the men’s sexual orientation.
In addition, Ceniceros-Deleon admitted to being the gunman in a Dec. 7, 2017, carjacking where he and others used Grindr to lure a man to a location and then forced the man, at gunpoint, to drive the conspirators to local ATMs to withdraw cash from the man’s account.
In March of 2019, Michael Atkinson pleaded guilty to conspiracy and kidnapping charges in connection with this case. Atkinson will be sentenced in February of 2020. Sentencing for Ceniceros-Deleon is set for April 1, 2020. The court has not set a sentencing hearing for Henry.
The FBI’s Dallas Field Office conducted the federal investigation; a separate criminal investigation is being conducted by the Dallas Police Department. Assistant U.S. Attorney Nicole Dana of the Northern District of Texas along with Special Litigation Counsel Rose E. Gibson and Trial Attorney Kathryn Gilbert of the Justice Department’s Civil Rights Division are prosecuting the case.
Two Computer Programmers Plead Guilty in Connection with Operating Two of the Biggest Illegal Movie and Television Show Streaming Services in the United StatesRead the Press Release
A resident of Las Vegas, Nevada, pleaded guilty yesterday to multiple criminal copyright and money laundering charges related to his running of iStreamItAll, one of the biggest illegal television show and movie streaming services in the United States, and to his working as a computer programmer with co-defendants to help build Jetflicks, a similarly large illegal television show streaming service. Today, a second defendant, who also resides in Las Vegas, pleaded guilty in the same court to a criminal copyright charge for his work as a computer programmer for Jetflicks.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia and Assistant Director in Charge Timothy R. Slater of the FBI’s Washington Field Office made the announcement today.
Darryl Julius Polo, aka djppimp, 36, pleaded guilty yesterday in the U.S. District Court for the Eastern District of Virginia to one count of conspiracy to commit criminal copyright infringement, one count of criminal copyright infringement by distributing a copyrighted work being prepared for commercial distribution, one count of copyright infringement by reproduction or distribution, one count of copyright infringement by public performance and one count of money laundering. In a separate proceeding today, co-defendant Luis Angel Villarino, 40, pleaded guilty to one count of conspiracy to commit copyright infringement. Sentencing for both defendants will be before U.S. District Judge T.S. Ellis III of the Eastern District of Virginia, with Polo’s on March 13, 2020, and Villarino’s on March 20, 2020.
According to Polo’s plea agreement, Polo ran a site called iStreamItAll (ISIA), an online, subscription-based service headquartered in Las Vegas that permitted users to stream and download copyrighted television programs and movies without the permission of the relevant copyright owners. Polo admitted that he reproduced tens of thousands of copyrighted television episodes and movies without authorization, and streamed and distributed the infringing programs to thousands of paid subscribers located throughout the U.S. Specifically, Polo admitted that ISIA offered more than 118,479 different television episodes and 10,980 individual movies. In fact, according to the plea agreement, ISIA had more content than Netflix, Hulu, Vudu and Amazon Prime, and Polo sent out emails to potential subscribers highlighting ISIA’s huge catalog of works and urging them to cancel those licensed services and subscribe to ISIA instead.
According to Polo’s plea agreement, Polo obtained infringing television programs and movies from pirate sites around the world—including some of the globe’s biggest torrent and Usenet NZB sites specializing in infringing content—using various automated computer scripts that ran 24 hours a day, seven days a week. Specifically, Polo used sophisticated computer programming to scour global pirate sites for new illegal content; to download, process, and store these works; and then make the shows and movies available on servers in Canada to ISIA subscribers for streaming and downloading. Polo also admitted to running several other piracy services—including a Usenet NZB indexing site called SmackDownOnYou—and earning over $1 million from his piracy operations.
In addition, in Polo’s and Villarino’s plea agreements, they each admitted that they separately worked as computer programmers at Jetflicks, another online, subscription-based service headquartered in Las Vegas that permitted users to stream and, at times, download copyrighted television programs without the permission of the relevant copyright owners. According to both plea agreements, Polo, Villarino and their co-conspirators at Jetflicks reproduced tens of thousands of copyrighted television episodes without authorization, and streamed and distributed the infringing programs to tens of thousands of paid subscribers located throughout the U.S.
Both Polo and Villarino also admitted that at Jetflicks they and their co-conspirators used automated software programs and other tools to locate, download, process and store illegal content, and then quickly make those television programs available on servers in the U.S. and Canada to Jetflicks subscribers for streaming and/or downloading.
In addition, as set forth in Polo’s and Villarino’s plea agreements, both Jetflicks and ISIA were not only available to subscribers over the internet but were specifically designed to work on many different types of devices, platforms and software including myriad varieties of computer operating systems, smartphones, tablets, smart televisions, video game consoles, digital media players, set-top boxes and web browsers.
The other defendants in the case are scheduled to go to trial starting on Feb. 3, 2020.
The FBI’s Washington Field Office conducted the investigation. Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Alexander P. Berrang of the Eastern District of Virginia and are prosecuting the case. The CCIPS Cybercrime Lab provided significant assistance.
Truck Driver Sentenced to 18 Months in Prison for Illegally Dumping 3,000 Gallons of Diesel FuelRead the Press Release
Albany, Ga. – The driver of a diesel fuel truck who dumped thousands of gallons of diesel fuel onto land draining into a Thomasville, Georgia creek in 2018, shutting down a school and causing a federally-led clean-up, was sentenced for his crime on Thursday, announced Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. Jaron Coleman, 40, of Oakville, Georgia, was sentenced to 18 months in prison on December 12, 2019 by U.S. District Judge Louis Sands. Defendant Coleman previously pleaded guilty to one count of Unauthorized Discharge of Oil in the Waters of the United States on Tuesday, September 10, 2019. There is no parole in the federal system.
According to the Statement of Fact entered in Court, on April 19, 2018, Mr. Coleman admitted that he dumped approximately 3,000 gallons of fuel on the ground near a gas station in Thomasville, Georgia after he realized he had loaded the wrong product for a delivery in Pelham, Georgia. Mr. Coleman, who was working for Eco Energy, did not have any permit or authorization to discharge the diesel fuel. The diesel fuel dumped on the ground migrated into an adjacent storm water drainage system that flows directly into a creek. The unnamed creek is a tributary of Good Water Creek which flows into Oquina Creek and then into the Ochlockonee River, a traditionally navigable water of the United States, and protected by the Clean Water Act. Under the Clean Water Act, diesel fuel is considered “oil” and the amount discharged was a harmful quantity. The discharge caused the Environmental Protection Agency (EPA) to engage in a costly clean-up and caused the evacuation of Garrison Pilcher Elementary School in Thomasville, Georgia on the same day as the incident, after school officials discovered a large amount of diesel fuel had swelled in ditches around the school.
“This defendant harmed the environment, endangered children at a nearby school and caused hundreds of thousands of dollars in cleanup costs when he selfishly dumped fuel into the waterways of the United States. Our office is committed to enforcing federal laws protecting our natural resources, especially when the health and safety of our citizens are jeopardized. As reflected in this case, the consequences for violating environmental laws can include significant prison time,” said U.S. Attorney Charlie Peeler. “I want to thank the EPA for their rapid response cleaning up our waterways and investigating this incident.”
“The defendant’s disregard for the law resulted in an oil spill that contaminated a local stream and triggered the evacuation of an elementary school,” said Special Agent in Charge Andy Castro of EPA’s criminal enforcement program in Georgia. “Today’s sentencing demonstrates that EPA and our law enforcement partners are committed to enforcing laws designed to protect the health of our communities and our natural resources.”
The case was investigated by the EPA. Assistant U.S. Attorney Robert McCullers prosecuted the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Three Men Plead Guilty to Conspiracy to Commit Bank FraudRead the Press Release
CONCORD – Three men, Syed Hoque, 24, of Brooklyn, New York, Tharushan Nirmalachandran, 30, of Ile-Bizard, Quebec, and Aijtharan Raveendran, 29, of Toronto, Ontario, have pleaded guilty in federal court to participating in a conspiracy to commit bank fraud, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, in April 2019, Hoque, Nirmalachandran, and Raveendran, conspired with others to withdraw money from other persons’ bank accounts by using cloned debit cards at ATMs. A “cloned” debit card is a gift card or other type of card that has been re-encoded to contain other persons’ debit card information. Blank credit and debit or gift cards can be encoded with stolen credit and debit card information using an “MSR” or “Magnetic Stripe Reader” machine. An MSR machine can read and write the information stored in the magnetic stripe on the back of credit and debit cards.
On Friday, April 26, 2019, a witness reported to the Hudson Police Department that a man later identified as Hoque drove his car through an ATM in Hudson, New Hampshire, several times to make withdrawals. The Hudson Police responded and found Hoque in his car at the ATM. The officer saw that Hoque was holding a cell phone that was displaying several sets of numbers on the screen and saw a large amount of cash on the front passenger seat of his car and several ATM or credit cards on the center console.
A search of Hoque’s phone revealed text messages in an application called “WhatsApp” from the weekend of April 24 through 26, 2019. One group message chain from April 26, 2019, showed members of the conspiracy coordinating their activities as they withdrew money from ATMs with the cloned debit cards.
The trio was operating out of a hotel room in Methuen, Massachusetts. Hotel surveillance video showed that, early in the morning on April 27, 2019, Nirmalachandran and Raveendran carried large duffle bags out of their hotel room. Investigators later found duffle bags during a search of Nirmalachandran’s car that contained (i) a portable MSR machine; (ii) 103 Visa, American Express, and MasterCard gift cards, 96 of which contained cloned debit card information; (iii) $51,610 United States currency; and (iv) a Hewlett Packard laptop computer. A later search of the computer revealed text files that contained over 170 debit card numbers.
In total, from April 25, 2019, through April 27, 2019, members of the conspiracy successfully withdrew at least $43,980.00 and attempted to withdraw an additional $69,900.00 from other people’s bank accounts using cloned debit cards.
Hoque pleaded guilty today and is scheduled to be sentenced on April 1, 2020.
Nirmalachandran pleaded guilty on November 4, 2019 and will be sentenced on February 14, 2020.
Raveendran pleaded guilty on November 14, 2019 and will be sentenced on February 28, 2020.
“Fraudsters like these defendants cause serious damage by stealing money from their victim’s bank accounts,” said U.S. Attorney Murray. “They also drive up business costs and undermine confidence in our banking system. In order to protect the citizens of New Hampshire, we will not hesitate to file federal charges against those who attempt to steal hard-earned money from innocent victims. I am grateful to the law enforcement officers whose hard work led to this successful prosecution.”
“The United States Secret Service is committed to investigating financial crimes including the unauthorized use of debit cards,” said Timothy Benitez, Resident Agent in Charge of the U.S. Secret Service, Manchester Resident Office. “The success of this investigation is a result of the cooperation between federal and local law enforcement partners.”
This matter was investigated by the United States Secret Service, with assistance from the Hudson and Methuen Police Departments. The case is being prosecuted by Assistant U.S. Attorney Matthew Hunter.
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Thirteen Indicted on Drug Trafficking ChargesRead the Press Release
BOSTON – Thirteen men were indicted on Dec. 4, 2019, and charged in federal court in Boston with various drug trafficking offenses and money laundering.
The following individuals were indicted:
- Yuen Liu-Torres, a/k/a “Chino,” 36, of New Bedford, was charged with conspiring to distribute and to possess with intent to distribute five kilograms or more of cocaine, and conspiracy to launder monetary instruments;
- Victor Alejandro-Carrillo, 28, of New Bedford, was charged with conspiring to distribute and to possess with intent to distribute five kilograms or more of cocaine, 100 grams or more of heroin and 40 grams or more of fentanyl;
- Elvis Garcia, 37, of New Bedford, was charged with conspiring to distribute and to possess with intent to distribute 500 grams or more of cocaine;
- Jose Rodriguez-Garcia, a/k/a Pina, 35, of New Bedford, was charged with conspiring to distribute and to possess with intent to distribute 500 grams or more of cocaine and conspiracy to launder monetary instruments;
- Jose L. Diaz Fontanez, 45, of New Bedford, was charged with conspiring to distribute and to possess with intent to distribute 500 grams or more of cocaine and possession with intent to distribute 500 grams or more of cocaine;
- Keon Green, 34, of New Bedford, was charged with conspiring to distribute and to possess with intent to distribute 500 grams or more of cocaine;
- Ricardo Correa-Perez, 44, of New Bedford, was charged with conspiring to distribute and to possess with intent to distribute 500 grams or more of cocaine;
- Caly Juan Montanez Agosto, a/k/a “Cali,” 38, of Puerto Rico, was charged with conspiring to distribute and to possess with intent to distribute 500 grams or more of cocaine;
- Manuel Colon, 48, of New Bedford, was charged with conspiring to distribute and to possess with intent to distribute 500 grams or more of cocaine, 100 grams or more of heroin and 50 grams or more of fentanyl;
- Jaime Torres, 45, of Fall River, was charged with conspiring to distribute and to possess with intent to distribute 500 grams or more of cocaine, and possession with intent to distribute 100 grams or more of heroin, 500 grams or more of cocaine, 40 grams or more of fentanyl and 5 grams or more of methamphetamine;
- Ricardo Torres, a/k/a “Louis Torres,” a/k/a “Angel Manzano,” a/k/a “Richie,” 46, of Chicopee, was charged with conspiring to distribute and to possess with intent to distribute 500 grams or more of cocaine;
- Alexander Santiago Medina, a/k/a “Flaco,” 32, of Fall River, was charged with conspiring to distribute and to possess with intent to distribute 500 grams or more of cocaine; and
- Vicente Gonzalez, a/k/a/ “Viejo,” 46, was charged with conspiring to distribute and to possess with intent to distribute 500 grams or more of cocaine and possession with intent to distribute 500 grams or more of cocaine.
The charge of conspiracy to possess with intent to distribute and possession with intent to distribute five kilograms or more of cocaine provides for a sentence of at least 10 years and up to life in prison, five years of supervised release and a fine of up to $10 million. The charge of conspiracy to possess with intent to distribute 500 grams or more of cocaine, 100 grams or more of heroin, and 40 grams or more of fentanyl, as well as the charge of possession with intent to distribute 500 grams or more of cocaine, 100 grams or more of heroin, 40 grams or more of fentanyl, and five grams or more of methamphetamine, each provide for a sentence of at least five years and up to 40 years in prison, four years of supervised release and a fine of up to $5 million. The charge of conspiracy to launder monetary instruments provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $500,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Joseph Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and New Bedford Police Chief Joseph C. Cordeiro made the announcement. Assistant U.S. Attorney Craig Estes of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. 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. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
Texas Woman Found Guilty for Role in $5.5 Million Federal Worker’s Compensation Overbilling SchemeRead the Press Release
A federal jury found a Texas woman guilty today for her role in a $5.5 million scheme to overbill the U.S. Department of Labor Office of Workers’ Compensation Program for physical therapy and other services.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Erin Nealy Cox of the Northern District of Texas, Special Agent in Charge Robert Bourbon of the U.S. Department of Justice Office of Inspector General’s (DOJ-OIG) Dallas Field Office, Special Agent in Charge Steven Grell of the U.S. Department of Labor Office of Inspector General’s (DOL-OIG) Dallas Regional Office, Special Agent in Charge Chris Cave of the U.S. Postal Service Office of Inspector General’s (USPS-OIG) Southern Area Field Office and Special Agent in Charge James Ross of the U.S. Department of Veterans Affairs Office of Inspector General’s (VA-OIG) Criminal Investigations Division—South Central Field Office and Special Agent in Charge Ray Rayos of the U.S. Army Criminal Investigation Command, Major Procurement Fraud Unit (MPFU), Southwest Fraud Field Office made the announcement.
After a five-day trial, before U.S. District Judge Karen G. Scholer of the Northern District of Texas, Melissa Sumerour, 48, of Lorena, Texas, was found guilty of six counts of health care fraud. Sentencing has not yet been scheduled.
According to evidence presented at trial, from approximately January 2011 to March 2017, Sumerour engaged in a scheme to defraud the Department of Labor’s Office of Workers’ Compensation Program by overbilling for physical therapy. The evidence established that the fraud, in which Sumerour billed for more physical therapy than was provided, cost the Office of Workers’ Compensation Program in excess of $5.5 million.
One other defendant has been charged in this matter. Latosha Morgan, 42, of Grand Prairie, Texas, pleaded guilty and is scheduled for sentencing in March 2020.
This case was investigated by DOJ-OIG, DOL-OIG, USPS-OIG, VA-OIG, and Army CID-MPFU. Trial Attorney Brynn Schiess and Counsel Amy Markopoulos of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.