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31 January 2020
FusionPharm Co-Conspirators Sentenced for $10+ Million Securities Fraud and Money Laundering SchemeRead the Press Release
DENVER – United States Attorney Jason Dunn announced that co-conspirators Guy M. Jean-Pierre, William Sears, and Scott Dittman, were sentenced to federal prison for their roles in the FusionPharm securities and financial fraud scheme, which cost investors more than ten million dollars. Jean-Pierre, age 60, of the Dominican Republic was sentenced to serve seven years in prison based on his conviction at trial of securities fraud, mail fraud, wire fraud, money laundering, and conspiracy. William Sears, age 53, of Thornton, Colorado was sentenced to a total of eight years in prison for his role in the conspiracy, as well as for tax violations. Scott Dittman, age 50, of Franktown, Colorado was sentenced to five years in prison. All three defendants will serve an additional three years of supervised release at the conclusion of their years of incarceration.
According to information contained in court filings and evidence presented at trial, beginning in late 2010, the defendants sought to establish a business that would retrofit steel shipping containers so that they could be used to grow plants hydroponically. The defendants acquired a dormant publicly traded penny stock company and changed its name to FusionPharm as part of plans to develop and capitalize the business. The main business plan was to resell these repurposed shipping containers, which FusionPharm called “pharm pods,” to hydroponic growers. The pharm pods were, at times, marketed as effective vehicles to get fresh produce, such as lettuce, quickly and efficiently to restaurants and local groceries in urban markets. Over time, however, the pharm pods were marketed to marijuana or cannabis growers in Colorado and other states.
An object of the conspiracy was to conceal the co-conspirators’ role in the management and operation of FusionPharm, due to Sears’ prior securities felony conviction. Sears and Dittman falsely represented that neither Sears nor companies related to him were an affiliate or control person of FusionPharm, thereby allowing Sears’ and the related companies’ FusionPharm shares to be treated as unrestricted securities that could be immediately sold in the public securities markets under the ticker symbol FSPM. Additionally, defendants Sears and Dittman reported to the public that certain sales transactions and revenues for FusionPharm had occurred when, in fact, they had not.
Defendant Jean-Pierre, a graduate of Columbia University Law School, prepared and transmitted documents that allowed FusionPharm to sell stock in violation of securities laws, falsely portrayed deposits of proceeds from the sale of FusionPharm common stock as convertible debt obligations, concealed the role of other co-conspirators in the FusionPharm business, falsely represented that disclosure documents and financial statements constituted adequate current information about FusionPharm, and failed to disclose defendant Jean-Pierre’s role in drafting documents for another attorney to sign and represented as the other attorney’s own work product.
In addition to the sentences announced this week, United States District Court Judge William A. Martinez previously entered preliminary orders of forfeiture in the amount of $12,204,172, based on proceeds and assets the defendants obtained from the scheme.
“Thanks to the tireless work of our prosecutors and law enforcement partners, justice has finally come for the victims of this scheme,” said United States Attorney Jason Dunn. “Prosecuting a complex financial scheme like this is challenging and lengthy, but it is critical that the public have confidence in the markets and that those who commit securities fraud be dealt with harshly.”
"Today’s sentence will hold these individuals accountable for their criminal actions,” said IRS-Criminal Investigation Special Agent in Charge Andy Tsui. “This complex scheme that involved false entity information to defraud investors to purchase their stock for their sole financial gain and evade their tax obligations will not be tolerated. IRS-CI special agents work diligently to identify and bring to justice those who attempt to profit by providing false and misleading information to innocent individuals.”
“The FBI will continue to aggressively investigate illusory schemes devised to exploit innocent victims. The recent sentencings of Guy M. Jean-Pierre, William Sears, and Scott Dittman, should send a strong message to anyone considering engaging in white collar fraud schemes,” said FBI Denver Special Agent in Charge Dean Phillips. “We will continue to work with our law enforcement counterparts and United States Attorney’s Office to protect our citizens and economy from those engaged in white collar crime. We would like to thank the Internal Revenue Service and United State Postal Inspection Service for their partnership and efforts on this case.”
“Securities fraud conducted via the U.S. mail through secret arrangements and altered documents can lead to false trust in the markets. Postal Inspectors will never rest in our fight to prevent criminals from using the mail to further their illegal activities,” said Stephen Sherwood, Acting Inspector in Charge of the Denver Division of the U.S. Postal Inspection Service.
This case was investigated by the FBI, IRS – Criminal Investigation, and United States Postal Inspection Service. Assistant United States Attorneys Jeremy Sibert and Robert Brown handled the prosecution. Assistant United States Attorney Tonya Andrews handled the asset forfeiture issues in this matter.
CASE NUMBER: 17-cr-8 and 16-cr-301
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Fugitive Wanted by Iraq for Murder of Iraqi Police Officers Arrested in ArizonaRead the Press Release
PHOENIX – On January 31, 2020, a Phoenix-area resident, who is alleged to have been the leader of a group of Al-Qaeda terrorists in Al-Fallujah, Iraq, appeared today before a federal magistrate judge in Phoenix, Arizona in connection with proceedings to extradite him to the Republic of Iraq. He is wanted to stand trial in Iraq for two charges of premeditated murder committed in 2006 in Al-Fallujah.
The arrest was announced by Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Michael Bailey for the District of Arizona.
An Iraqi judge issued a warrant for the arrest of Ali Yousif Ahmed Al-Nouri, 42, on murder charges. The Government of Iraq subsequently requested Ahmed’s extradition from the United States. In accordance with its treaty obligations to Iraq, the United States filed a complaint in Phoenix seeking a warrant for Ahmed’s arrest based on the extradition request. U.S. Magistrate Judge John Z. Boyle issued the warrant on January 29, 2020, and Ahmed was arrested the following day.
According to the information provided by the Government of Iraq in support of its extradition request, Ahmed served as the leader of a group of Al-Qaeda terrorists in Al-Fallujah, Iraq, which planned operations targeting Iraqi police. Ahmed and other members of the Al-Qaeda group allegedly shot and killed a first lieutenant in the Fallujah Police Directorate and a police officer in the Fallujah Police Directorate, on or about June 1, 2006, and October 3, 2006, respectively.
The details contained in the complaint are allegations and have not yet been proven in court. If Ahmed’s extradition is certified by the court, the decision of whether to surrender him to Iraq will be made by the U.S. Secretary of State.
Ahmed’s arrest was executed by the FBI Phoenix Field Office, HSI Phoenix Field Office and the U.S. Marshals Service. The extradition case will be handled by the U.S. Attorney’s Office for the District of Arizona and the Criminal Division’s Office of International Affairs.
If you have questions, please call the Office of Public Affairs at 202-514-2007.
Fugitive Wanted by Iraq for Murder of Iraqi Police Officers Arrested in ArizonaRead the Press Release
A Phoenix-area resident, who is alleged to have been the leader of a group of Al-Qaeda terrorists in Al-Fallujah, Iraq, appeared today before a federal magistrate judge in Phoenix, Arizona in connection with proceedings to extradite him to the Republic of Iraq. He is wanted to stand trial in Iraq for two charges of premeditated murder committed in 2006 in Al-Fallujah.
The arrest was announced by Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Michael Bailey for the District of Arizona.
An Iraqi judge issued a warrant for the arrest of Ali Yousif Ahmed Al-Nouri, 42, on murder charges. The Government of Iraq subsequently requested Ahmed’s extradition from the United States. In accordance with its treaty obligations to Iraq, the United States filed a complaint in Phoenix seeking a warrant for Ahmed’s arrest based on the extradition request. U.S. Magistrate Judge John Z. Boyle issued the warrant on January 29, 2020, and Ahmed was arrested the following day.
According to the information provided by the Government of Iraq in support of its extradition request, Ahmed served as the leader of a group of Al-Qaeda terrorists in Al-Fallujah, Iraq, which planned operations targeting Iraqi police. Ahmed and other members of the Al-Qaeda group allegedly shot and killed a first lieutenant in the Fallujah Police Directorate and a police officer in the Fallujah Police Directorate, on or about June 1, 2006, and October 3, 2006, respectively.
The details contained in the complaint are allegations and have not yet been proven in court. If Ahmed’s extradition is certified by the court, the decision of whether to surrender him to Iraq will be made by the U.S. Secretary of State.
Ahmed’s arrest was executed by the FBI Phoenix Field Office, HSI Phoenix Field Office and the U.S. Marshals Service. The extradition case will be handled by the U.S. Attorney’s Office for the District of Arizona and the Criminal Division’s Office of International Affairs.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Fraudster Sentenced for Scamming 350 Victims over Seven YearsRead the Press Release
ALEXANDRIA, Va. – A Colombian national was sentenced today to 87 months in prison for his leadership of a seven-year fraud and identity theft conspiracy that victimized more than 350 people and caused losses of nearly $2 million.
“Alberto Cortes Gomez’s crime was successful precisely because it targeted one of the most admirable qualities of its hundreds of victims: their desire to help others,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Cortes Gomez and his co-conspirators targeted innocent retail shoppers by feigning questions or a need for assistance, thus exploiting those victims’ generosity and willingness to give their time and attention to a total stranger. In doing so, Cortes Gomez and his co-conspirators broke society’s trust in a particularly pernicious way, by relying on the best in people in order to do them harm.”
According to court documents, Cortes Gomez, 39, orchestrated a nationwide scheme that targeted unsuspecting retail shoppers in order to steal their credit cards and other identity information. Cortes Gomez would travel from Florida to locations with high volumes of retail activity, such as the I-95 corridor through Virginia. While at a retail location, Cortes Gomez and co-conspirators would distract shoppers with questions seeking assistance, and other conspirators would steal the shoppers’ wallets. After altering means of identification to show the victims’ names but pictures of those working with Cortes Gomez, Cortes Gomez would direct purchases of expensive electronics and other retail goods. The members of the conspiracy would then ship the goods for resale.
“Cortes Gomez exhibited vicious and predatory greed, turning theft into a moneymaking operation at the expense of ordinary people,” said Raymond Villanueva, Washington D.C. Homeland Security Investigations (HSI) Special Agent in Charge. “HSI is committed to investigating fraudsters like Cortes Gomez, whose crimes impacted hundreds of unsuspecting victims.”
“Cortes Gomez planned, schemed, and defrauded hundreds of innocent people for his own personal gain,” said Timothy M. Dunham, Special Agent in Charge of the FBI Washington Field Office’s Criminal Division. “I'd like to thank the men and women of the FBI who work hard every day to identify and apprehend those responsible for breaking the public's trust and taking advantage of people’s altruistic instincts to steal from them.”
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Timothy M. Dunham, Special Agent in Charge, Criminal Division, FBI Washington Field Office; and Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. Special Assistant U.S. Attorney Ryan S. Faulconer and Assistant U.S. Attorney Laura M. Grimes prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-189.
Fort Defiance Man Sentenced to 4 Years’ Prison for Domestic ViolenceRead the Press Release
PHOENIX – On January 27, 2020, Bruce Robertson, 40, of Fort Defiance, Ariz., was sentenced by U.S. District Judge Steven P. Logan to 4 years’ imprisonment. Robertson had previously pleaded guilty to two counts of Domestic Assault Resulting in Substantial Bodily Injury.
On multiple occasions in 2015 and 2016, Robertson engaged in acts of domestic violence against his then-girlfriend, repeatedly punching her in the face, shoving her, and threatening to smother her. In one assault, when Robertson attempted to hit his infant child with a large metal belt, his girlfriend shielded the baby with her own body. As a result, Robertson beat her with the belt. The matter was eventually referred to the Federal Bureau of Investigation, and agents promptly began an investigation, which led to Robertson’s prosecution. Robertson is a member of the Navajo Nation, as was the victim, and the crimes occurred near Chinle, Ariz., on the Navajo Nation Indian Reservation.
The investigation was conducted by agents of the Federal Bureau of Investigation. The prosecution was handled by Assistant U.S. Attorney William G. Voit, District of Arizona, Phoenix.
Former Oakland County Lawyer Sentenced in Scheme to Obtain Fraudulent Mortgage Loans from Fifth ThirdRead the Press Release
A former Oakland County lawyer was sentenced yesterday, January 30, 2020, to serve 70 months in federal custody on one count of conspiracy to commit bank fraud, and three counts of bank fraud, United States Attorney Matthew Schneider announced today.
Paul Nicoletti, age 60, received the sentence from the Honorable Victoria A. Roberts, United States District Judge, in Detroit, Michigan. Judge Roberts also ordered that the defendant serve two years on supervised release after his release from federal custody and pay restitution totaling $5,299,751.58. A jury returned guilty verdicts against Mr. Nicoletti on May 5, 2019 after a seven-day trial.
According to the evidence introduced during the trial, Mr. Nicoletti, a lawyer and owner of a title company in Bloomfield Hills, Michigan, became involved in a scheme to obtain large mortgage loans from Fifth Third Mortgage, Michigan, a lending arm of Fifth Third Bank. Although somewhat complicated, the essence of the scheme involved real estate developers, a corrupt loan officer and Mr. Nicoletti working together to obtain large mortgage loans from Fifth Third Mortgage, Michigan, purportedly for the purchase and development of high-end properties in Bloomfield Hills and Birmingham, Michigan, based on numerous false statements both in the application and closing process of the loans, resulting in Fifth Third Mortgage, Michigan releasing over eight million dollars in loan proceeds.
More specifically, one or more of the conspirators would find and recruit “straw buyers” to serve as mortgage loan applicants for the purchase of real property which the conspirators wanted to purchase and develop. The straw buyers, who viewed themselves as “investors,” were paid a fee for the use of their names and credit histories in the loan applications and real estate transactions, and were promised a portion of the expected profit after the property was developed and resold. The straw buyers had no intention of living at or actually exercising ownership and control of the property, despite representations to the contrary in their applications, and in closing documents. Despite their good credit ratings, the straw buyers did not have the assets or income necessary to qualify for mortgages in the substantial amounts sought. Thus, false information pertaining to their income and assets was included in the mortgage loan applications to qualify them. Mr. Nicoletti’s role was to facilitate the fraudulent loans as the title agent by, among other things, falsely verifying that the borrowers made substantial down payments on the properties. To do so, Mr. Nicoletti obtained cashiers checks, issued after the loan proceeds were released to his Continental Title account and which were funded by the loan proceeds themselves, bearing the names of the straw buyers as “remitters,” which he then re-deposited into his Continental Title account, making it appear as though the borrowers funded the substantial down payments. In fact, the borrowers brought no money to the closings. When the fraud was discovered by authorities, Mr. Nicoletti counseled the destruction of evidence of the fraud and also personally destroyed relevant electronic and paper records.
Mr. Nicoletti was the sixth person convicted as a result of this investigation. The loan officer, a mortgage broker, an appraiser and several of the real estate developers have previously been sentenced after entering guilty pleas relating to the scheme. The investigation was conducted by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorneys Craig Weier and John Neal.
Former Major at Angola Prison Convicted of Beating a Handcuffed and Shackled InmateRead the Press Release
Daniel Davis, 44, a former major at Louisiana State Penitentiary (LSP) in Angola, Louisiana, was found guilty by a jury yesterday in federal court for his participation in the beating of an inmate who was handcuffed, shackled, and not resisting and for failing to intervene to stop his subordinates from participating in the same beating. In a previous trial in January 2018, Davis was convicted of conspiring with other officers to cover up the beating by devising a false cover story, submitting false reports documenting that cover story, tampering with witnesses, and lying under oath. Davis was also previously convicted of this beating in November 2018, but was granted a new trial based on juror misconduct.
Four other officers—former LSP Captains James Savoy, John Sanders, and Scotty Kennedy, and former Sergeant Willie Thomas—have all previously pleaded guilty for their roles in the beating and cover up. At Davis’s trial, Captains Sanders and Kennedy testified for the government and described the abuse and the extensive cover up.
After hearing testimony over the course of three days, the jury convicted Davis of willfully depriving the inmate of his right to be free from cruel and unusual punishment. The evidence showed that Davis initiated the beating by yanking the inmate’s leg chains, causing the inmate to fall face-first onto the concrete breezeway. At that point, Davis and the other officers punched, kicked, and stomped on the inmate, leaving the inmate with a dislocated shoulder, a hematoma, a collapsed lung, and broken ribs.
“The Constitution and its Bill of Rights protect all people in our nation from unlawful abuse by the government, and the Department of Justice will continue to prosecute officers who willfully violate the Constitution by abusing their power over those in custody,” said Attorney General Eric Dreiband for the Civil Rights Division. “This officer violated his oath and the law, and the Department of Justice will not tolerate this kind of criminal misconduct by correctional officers.”
U.S. Attorney Brandon Fremin stated, ““Corrections officers are charged with the duty of protecting the public, not abusing those who have been lawfully incarcerated. This district contains several penal institutions, and this should serve as a warning to those who would abuse their power that federal, state, and local law enforcement agencies will relentlessly pursue those who violate the public trust. I commend all of the agencies responsible for this conviction, and want to thank them for their partnership in this important matter.”
“Correctional officers have an obligation to protect inmates serving their sentences as ordered by the court,” said Bryan A. Vorndran, FBI New Orleans Special Agent in Charge. “Daniel Davis abused his authority by inflicting physical harm upon an inmate that was restrained and non-combative. His actions are a disgrace to all correctional officers who serve ethically and continue to maintain high moral standards throughout our correctional facilities. I commend the men and women of the FBI’s Baton Rouge Resident Agency Office, Louisiana Office of the State Inspector General, and the Department of Justice Civil Rights trial attorneys for their commitment to uphold the constitution and protect all Americans.”
“This is a just verdict,” said Louisiana Inspector General Stephen Street. “We cannot and will not tolerate the abuse of the considerable power afforded corrections officers. Whenever it does occur, it is critical to hold offenders criminally accountable in order to protect the integrity of the system. The jury did exactly that with Mr. Davis, and it was worth the time and effort to obtain this result. Thanks again to our federal partners at the FBI and DOJ.”
No date has been set for Davis’s sentencing. He faces a maximum penalty of five years of imprisonment on the conspiracy and perjury counts, 10 years of imprisonment on the excessive force count, and 20 years of imprisonment on each of the remaining obstruction counts.
This case was investigated by the FBI’s Baton Rouge Resident Agency Office and the Louisiana Office of the State Inspector General. It was prosecuted by Trial Attorneys Zachary Dembo and Anita Channapti of the Civil Rights Division’s Criminal Section. Trial Attorney Christopher J. Perras of the Civil Rights Division and Assistant U.S. Attorney Frederick A. Menner Jr., of the Middle District of Louisiana also assisted in the case.
Former Castroville Animal Control Officer Pleads Guilty to Role in Fraudulent Insurance Claim Plot Involving Former Castroville Police ChiefRead the Press Release
In San Antonio this afternoon, former Castroville Animal Control Officer Ambrose Rymers admitted his role in a fraudulent insurance claim scheme involving 54-year-old former Castroville Police Chief Chris Filline and a third individual, announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
Appearing before U.S. Magistrate Judge Elizabeth S. Chestney, Rymers pleaded guilty to one count of conspiracy. By pleading guilty, Rymers admitted to assisting Filline and a third individual in a fraudulent scheme to collect insurance proceeds. Rymers, who faces up to five years in federal prison, is scheduled for sentencing at 1:30pm on April 29, 2020, before U.S. District Judge Xavier Rodriguez.
A one-count federal grand jury indictment--unsealed on Monday following Filline’s arrest—alleges that between June 2016 and December 2016, Filline schemed to defraud Farmers Insurance Group regarding his 2007 Lincoln Navigator. According to court records, Filline conspired with Rymers and a third individual, to destroy the vehicle in order to collect insurance proceeds. Rymers admitted to following the third individual, who was allegedly driving Filline’s SUV, to a location in Bexar County on July 15, 2016. According to the indictment, the third individual doused the SUV with an accelerant and lit it on fire. The indictment further alleges that on July 18, 2016, Filline went to the Lytle Police Department and reported that his SUV had been stolen. Three days later, Filline electronically submitted an insurance claim to Farmers Insurance Group. That filing resulted in the processing and payment of a fraudulent claim for $14,388.25 to Filline.
The indictment charges Filline and the third individual with one count of conspiracy to commit wire fraud. Upon conviction, Filline and the third individual face up to 20 years in federal prison. Filline is on bond pending trial scheduled for 9:30am on March 30, 2020, before U.S. District Judge Xavier Rodriguez in San Antonio. The third individual is not in custody at this time.
The FBI, together with the Bexar County Fire Marshal’s Office, investigated this case. Assistant U.S. Attorney Greg Surovic is prosecuting this case on behalf of the government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
First Annual Mississippi Human Trafficking Summit Held in JacksonRead the Press Release
Jackson, Miss. – The U.S. Attorney’s Offices for the Southern and Northern Districts of Mississippi and the Mississippi Department of Public Safety presented the first annual Mississippi Human Trafficking Summit today at the Jackson, Mississippi, Convention Center. More than 400 participants, including local, state tribal, and federal law enforcement officers, prosecutors, victim service providers, nonprofits, policy makers and social workers, attended and participating in the Summit.
“Human trafficking is here in Mississippi, and sadly, it is significantly and adversely impacting the lives of many Mississippians,” said U.S. Attorney Hurst. “Our intent with the Mississippi Human Trafficking Council and with this summit is to train and raise awareness among the public, our nonprofits, and our law enforcement in order to prevent future trafficking, rescue and protect victims, and swiftly prosecute these evildoers. The Department of Justice and the U.S. Attorney’s Offices in Mississippi have made combatting this horrific and reprehensible crime one of our highest priorities in order to keep the public safe.”
“Today has been such a powerful and important day in the fight against human trafficking here in Mississippi,” said U.S. Attorney Lamar. “We have seen a large, diverse and committed group of people come together to hear about the work that has been done so far, to celebrate the successes and milestones of those engaged in the fight, and to make plans for combatting human trafficking crimes in our Stare in the future. With the continued and combined efforts of those present and others who are willing to work together, we can make a difference in the lives of victims and combat these heinous crimes that strike at the heart of basic human dignity.”
The Mississippi Human Trafficking Council was formed in September 2019, and is chaired by an Assistant U.S. Attorney from Northern District of Mississippi, an Assistant U.S. Attorney from Southern District of Mississippi, and the Mississippi Human Trafficking Coordinator, who works for the Mississippi Bureau of Investigation at the Mississippi Department of Public Safety. The mission of the Council is to use a victim-centered, collaborative, and multi-disciplinary model to prevent trafficking, protect victims, and prosecute criminals in all forms of domestic and international human trafficking, to include commercial sex trafficking and labor trafficking for the protection of both adult and minor victims.
Today’s Summit began with opening remarks from Mississippi Governor Tate Reeves, Lieutenant Governor Delbert Hosemann, Mississippi Attorney General Lynn Fitch, Colonel Chris Gillard, Assistant Commissioner of the Mississippi Department of Public Safety, Mississippi Band of Choctaw Indians Tribal Chief Cyrus Ben, U.S. Attorney Chad Lamar of the Northern District of Mississippi, and U.S. Attorney Mike Hurst of the Southern District of Mississippi.
Summit attendees also heard from:
- Bill Woolf, Human Trafficking Programs Director at the Office of Justice Programs within the U.S. Department of Justice;
- Alexandra Perron with A21’s Freedom Center in Charlotte, North Carolina, regarding the upcoming Mississippi Human Trafficking Council Billboard Campaign;
- Council Co-Chairs Kathlyn Van Buskirk - Assistant US Attorney, Southern District of MS, Susan Bradley - Deputy Criminal Chief US Attorney, Northern District of MS, and Ashlee Lucas - Statewide Human Trafficking Coordinator, MS Bureau of Investigation
- Council Subcommittee Chairs:
- Outreach and Public Awareness - Chair: Mandy Davis, Chief of Staff, MSDPS
- Strategic Planning and Trafficking Protocol - Chair: Dr. Tamara Hurst, School of Social Work, University of Southern Mississippi
- Policy and Legislation - Co-Chairs: Angela Cockerham, MS House of Representatives; Lora Hunter, General Counsel, MS Department of Public Safety
- Training - Chair: Paula Broome, MS Attorney General’s Office
- Victim Service - Co-Chairs: Hollie Jeffery, Children’s Advocacy Centers of Mississippi; Heather Wagner, Mississippi State Department of Health, Office Against Interpersonal Violence
- A Human Trafficking Survivor
- U.S. Department of Justice Grantees Relating to Human Trafficking:
- Heather Wagner - Grant - Victim Services
- Ashlee Lucas - Grant - Law Enforcement
- Those Involved in Mississippi Initiatives Addressing Human Trafficking:
- Heather Collins - Statewide Human Trafficking Analyst, Mississippi Bureau of Investigation
- Guy Collins - Master Sergeant, Mississippi Bureau of Investigation, Human Trafficking Special Victim’s Unit
- Nick Brown - Hinds County Sheriff’s Office, FBI Task Force Officer
- Mike Hurst - US Attorney, Southern District of Mississippi
- Chad Lamar - US Attorney, Northern District of Mississippi
- Leslie Williams Fisher, Trial Attorney, U.S. Department of Justice, Criminal Division Child Exploitation & Obscenity Section
The Department of Justice continues to fight human trafficking through investigating and prosecuting traffickers, dismantling transnational human trafficking networks, enhancing victim identification and protection of all victims of trafficking, and funding and providing domestic and international anti-trafficking programs. Information on the Department of Justice’s efforts to combat human trafficking can be found here. An update on human trafficking prosecution statistics can be found here.
Information about the Mississippi Human Trafficking Council can be found here.
Financial Advisor Sentenced to More Than 11 Years in Prison for Defrauding More Than a Dozen Clients in $8.1 Million Ponzi SchemeRead the Press Release
SANTA ANA, California – A former Ameriprise financial advisor who ran a Ponzi scheme that defrauded 20 of her clients – including some of her relatives – out of more than $8.1 million was sentenced today to 136 months in federal prison.
Li Lin Hsu, a.k.a. Yilin Hsu Lee, 42, of Diamond Bar, was sentenced by United States District Judge Andrew J. Guilford, who also ordered her to pay $5,274,277 in restitution to her victims. Hsu pleaded guilty in February 2019 to one count of wire fraud.
Between February 2014 and May 2018, Hsu lured in her victims with the promise that she would safely invest their money. She gained the trust of her victims – nearly all of whom are members of Southern California’s Chinese community – by speaking to them in their native language and telling them she was part of their community. Other victims included Hsu’s relatives.
In reality, Hsu failed to invest any of her victims’ money. Instead, she used their funds to buy homes in Diamond Bar and Irvine, a luxury Tesla automobile, a vacation at the Peninsula Hotel in Paris, and thousands of dollars’ worth of luxury goods at high-end stores such as Harry Winston, Chanel and Hermes. In the hallmark of a Ponzi scheme, Hsu also used money she stole from later investors to make lulling payments to early investors.
Hsu began her scheme while employed at Ameriprise Financial, Inc., as a financial advisor. Ameriprise fired her in 2015 after discovering her misconduct. In 2016, the Financial Industry Regulatory Authority (FINRA) barred Hsu from working in the investment business.
Shortly after Ameriprise terminated her, Hsu founded her own companies – American Capital Trading Group LLC and, in 2016, American Capital Republic, Inc. – where she sought out additional victim investors and swindled them.
Hsu told these new clients that their funds would be invested in low-risk municipal bonds. As with her Ameriprise accounts, Hsu failed to invest the funds as promised, but rather spent the funds on herself. She fabricated account statements that showed her victims’ funds were safely invested and lulled her victims into believing the account statements by making nominal “interest payments” that originated from the funds of other victims. She also lied to one of her victims when she said American Capital Trading Group – which she controlled – was an Ameriprise affiliate.
Through these two companies, Hsu caused losses of $8,191,554 to her victims.
In 2016, Hsu repeatedly lied under oath to the Securities and Exchange Commission, which had begun investigating her. After the FBI arrested Hsu in April 2018 and in violation of a court order, Hsu met with two of her victims and told them to lie to the FBI that her plan had always been to invest in the two properties she had purchased. She also induced them to give her an additional $450,000, which she then used to pay back another victim.
The FBI investigated this matter.
This case was prosecuted by Assistant United States Attorneys Poonam G. Kumar and Alexander C.K. Wyman of the Major Frauds Section, and Katharine Schonbachler and Victor A. Rodgers of the Asset Forfeiture Section.
Final Defendant Sentenced to over 30 Years for Role in Armed Robbery Crew and Drug Trafficking OrganizationRead the Press Release
5 Defendants Sentenced to a Total of 95 Years in Prison for Federal Violent Crime and Drug Offenses
Memphis, TN – Shuntario Johnson, 38, has been sentenced to 371 months in federal prison for his role in a conspiracy to possess with intent to distribute cocaine, the possession of a firearm in furtherance of a crime of violence, carjacking and aiding and abetting an attempted robbery. Overall, a five members and associates of an armed robbery crew and drug trafficking organization have been sentenced to a total of 1,143 months imprisonment for their various roles in a drug conspiracy, possession of a firearms in furtherance of a Violent Crimes and Drug Trafficking Crimes, carjacking and being a felon in possession of a firearm. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee, announced the sentences today.
On August 8, 2019, a federal grand jury returned an 11-count fifth superseding indictment against the following individuals:
Marcus Danner, 39
Quintez Agnew, 34
Shuntario Johnson, 38
John Lott, 30
Crystal Deener. 26
According to information presented in court, Danner, Agnew, Lott, and Johnson were members of an armed robbery crew that targeted narcotics traffickers in the Memphis area. The indictment followed a four-month investigation involving agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) as well as other state and local agencies, in which Johnson and his co-defendants were alleged to have participated
in a conspiracy to rob drug dealers in Memphis. Lott and Deener were also indicted for their roles in a conspiracy to tamper with evidence in the case. During the investigation,
agents seized multiple firearms, approximately $2,000 in U.S. currency, and approximately 28 grams of crack cocaine. See announcement of original indictment: https://www.justice.gov/usao-wdtn/pr/four-members-armed-robbery-crew-have-been-indicted-committing-robberies-throughout
On September 9, 2019, Shuntario Johnson demanded a jury trial on the fifth superseding indictment. Accordingly, the United States presented the following proof at trial:
On January 09, 2018, the victim "R.S." drove Johnson and an unknown male subject, identified as Johnson’s brother-in-law, to acquire marijuana from an apartment complex in Memphis, Tennessee. After acquiring the marijuana, "R.S." stopped at a stop sign at the intersection of Castalia Street and East Mclemore at which time Johnson who was in the front seat, displayed a silver semi-automatic handgun and pointed it at "R.S." head and said "give me what you got." "R.S." stated that the second suspect, sitting in the back seat, also pulled out a black semi-automatic handgun and pointed it at the victim. "R.S." advised Memphis Police Department officers that he gave the suspects his wallet and five dollars and was ordered out of the vehicle. "R.S." stated that once he exited his vehicle he began to run on foot as Johnson exited the vehicle, Johnson fired "multiple shots" at "R.S."
At the crime scene, MPD officers recovered two 9mm shell casings at the location of the shooting. A ballistics examination of the two 9mm shell casings from the crime scene were compared to a firearm recovered from Johnson on January 25, 2019.
On January 25, 2019, during Johnson’s arrest for his involvement in a drug conspiracy, he pointed a firearm at an ATF Agent then fled from the officers, throwing the firearm to the ground before his apprehension. The firearm was recovered during a search of the area, revealing that the firearm was a 9mm Ruger handgun. A ballistics examination of the firearm and the two shell casings recovered from the crime scene of the carjacking revealed that the 9mm Ruger handgun had fired the bullets and matched the 9mm shell casings. Later, Johnson stated to ATF Agents that Danner had given him the 9mm Ruger handgun.
Evidence was also presented that Danner, Agnew, Lott and Johnson attempted to rob "B.B" of his drug proceeds as stated in count six. During this incident, Johnson shot "V.R." "V.R." was not fatally injured and recovered from the gunshot. However, "V.R." died of an unrelated health issue prior to Johnson’s trial.
Evidence was also presented that Danner, Agnew, Lott and Johnson conspired to rob a stash house of cocaine. On January 25, 2019, Danner, Agnew, Lott and Johnson arrived at a location in Shelby County to rob what they believed to be a drug dealer. During this sting operation by the ATF, Danner, Agnew, Lott and Johnson were arrested.
On September 17, 2019, Johnson was convicted by a jury of counts 2, 3, 4 and 8 of the fifth superseding indictment.
On January 30, 2020, United States District Court Judge John T. Fowlkes Jr., sentenced Johnson to a total sentence of 371 months imprisonment followed by 3 years of supervised release for his involvement in these multiple crimes.
On January 10, 2019, John Lott was sentenced to a total sentence of 420 months imprisonment followed by five years’ supervised release, by United States District Court Judge John T. Fowlkes Jr. https://www.justice.gov/usao-wdtn/pr/john-lott-sentenced- 420-months-imprisonment-member-armed-robbery-crew-and-drug
On January 16, 2019, Quintez Agnew pled guilty to counts 5, 7, 8, 9 and 10, before United States District Court Judge John T. Fowlkes Jr. However, prior to sentencing, Agnew died of suicide.
On March 1, 2019, Marcus Danner was sentenced to 352 months imprisonment followed by five years’ supervised release, by United States District Court Judge John T. Fowlkes Jr. https://www.justice.gov/usao-wdtn/pr/marcus-danner-sentenced-352-months-imprisonment-leader-armed-robbery-crew-and-member
On February 21, 2019, Crystal Deener was sentenced to 1 day time served, followed by two years’ supervised release, by United States District Court Judge John T. Fowlkes Jr.
U.S. Attorney Dunavant said, "Armed Robbery crews made up of violent felons will NOT continue to terrorize and endanger our communities in West Tennessee with impunity. We use all available law enforcement and prosecutorial resources to pursue, disrupt, and dismantle groups and conspiracies that are most responsible for violence and drug dealing, and to remove dangerous offenders with firearms from our streets. I commend the great investigative work of ATF and our local partners in neutralizing this violent recidivist and this crew of trigger-pullers and traffickers."
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Multi-Agency Gang Unit (MGU) comprised of investigators from the Memphis Police Department and Shelby County Sheriff’s Office investigated this case.
Assistant U.S. Attorneys Jerry Kitchen and Gregory Allen prosecuted this case on behalf of the government.
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Felon Sentenced for Multiple Fraud ChargesRead the Press Release
BOSTON – A Springfield man was sentenced today in federal court in Springfield in connection with various fraud schemes.
Talal H. Soffan, 46, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 30 months in prison, five years of supervised release and ordered to pay $573,624 in forfeiture. In February 2019, Soffan pleaded guilty to making false statements to a federally insured financial institution, wire fraud, aggravated identity theft, conspiracy and bank fraud.
In March 2007, Soffan applied for two bank loans totaling $45,000 for his company, All Waste Management LLP. In the process of securing the loans, Soffan concealed his and an associate’s prior felony convictions. After receiving the loans, Soffan then misspent the loan proceeds, defaulted on the loans, and exploited both accounts in connection with a series of credit card bust-out schemes. In those schemes, Soffan defrauded various banks and credit card companies through 27 different accounts obtained in his name, the name of his business, other businesses, and other individuals, resulting in an overall loss of approximately $528,624.
In addition, Soffan conspired with a local real estate broker to defraud various banks relating to foreclosed properties owned by the banks. Soffan sent the broker e-mails containing his company’s genuine bid and false bids from other companies to ensure that his company received contracts to perform repair and maintenance work on the foreclosed properties. In exchange for receiving approximately $75,186 in contracts for his company, Soffan allowed the broker to keep approximately five percent of his company’s invoiced amounts.
United States Attorney Andrew E. Lelling; Robert Manchak, Acting Special Agent in Charge of the Federal Housing Finance Agency; Kristina O’Connell, Special Agent In Charge of the Internal Revenue Service’s Criminal Investigations in Boston; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service made the announcement. Assistant U.S. Attorneys Steven H. Breslow and Deepika Shukla of Lelling’s Springfield Branch Office prosecuted the case.
Federal Jury Finds Duquesne Man Guilty of Drug Law ViolationRead the Press Release
PITTSBURGH - After deliberating for two hours, a federal jury found Donte Taylor guilty of one count of violating the federal narcotics laws, United States Attorney Scott W. Brady announced today.
Taylor, 37, formerly of Duquesne, was tried before Senior United States District Judge David S. Cercone in Pittsburgh, Pennsylvania.
According to Assistant United States Attorney Shanicka L. Kennedy, who prosecuted the case, the evidence presented at trial established that on May 10, 2018, Donte Taylor was on parole. When parole agents went to his house for a routine visit, they smelled marijuana. Agents tested Taylor, and he tested positive for marijuana and cocaine. He also had $540.00 on his person. Parole agents noticed that his girlfriend, Ericka Smith, appeared to be extremely nervous. Parole agents then contacted the local police.
When the police responded, Smith advised that there was a small amount of marijuana in the house and gave verbal and written consent to search. Smith provided a conflicting statement about Taylor’s drug trafficking activities. Smith admitted that it was her house and that it was Taylor’s approved residence with parole.
Officers recovered approximately 279 grams of crack cocaine with a street value of $22,000 to $28,000. They also discovered cocaine, heroin, fentanyl and marijuana, as well as $14,466.00 in a safe, scales and other drug packaging materials.
Judge Cercone scheduled sentencing for June 5, 2020. The law provides for a total sentence of not less 10 years in prison and up to life, a fine not to exceed $8,000,000.00, a term of supervised release of at least eight years, or a combination thereof. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court ordered Taylor to remain in custody.
The Drug Enforcement Administration and the City of Duquesne Police Department conducted the investigation that led to the prosecution of Donte Taylor.
Federal Jury Convicts Colombian National for International Cocaine Smuggling ConspiracyRead the Press Release
Tampa, FL – A federal jury has found Emiro Hinestroza-Newbbooll (48, Colombia) guilty of one count of conspiracy to distribute and to possess with the intent to distribute five kilograms or more of cocaine while onboard a vessel subject to the jurisdiction of the United States, and one count of possession with the intent to distribute five kilograms or more of cocaine on that vessel. Hinestroza-Newbbooll faces a maximum penalty of life in federal prison. His sentencing is scheduled for April 30, 2020.
According to evidence presented at trial, Hinestroza-Newbbool was part of an international maritime drug smuggling operation involving at least 600 kilograms of cocaine worth approximately $18 million. Hinestroza-Newbbooll was the captain of a four-man, Colombia-based cocaine smuggling crew. Prior to their interdiction by the U.S. Coast Guard (USCG), Hinestroza-Newbbooll and his crew were transporting approximately 30 to 40 bales of cocaine onboard a go-fast vessel from Colombia to Honduras following a known smuggling route known as the “Honduras Rise.”
On December 1, 2018, a USCG HC-130J aircraft deployed from Air Station Elizabeth City, North Carolina spotted and recorded Hinestroza-Newbbooll and his crew onboard a go-fast vessel traveling at a high rate of speed, approximately 110 nautical miles southwest of Jamaica. In an attempt to destroy evidence and evade capture, Hinestroza-Newbbooll and his crew jettisoned all of the cocaine bales onboard the vessel and sank them to the ocean bottom, by tying the bales to their outboard engines and throwing the engines (their only means of propulsion) overboard. The USCG aircrew thwarted that attempt and was able to observe and record the jettison.
Later that day, Hinestroza-Newbbooll, his crew, and their now engine-less vessel were interdicted and boarded by USCG law enforcement officers from Tactical Law Enforcement Team (TACLET) Pacific. That boarding yielded crucial evidence consistent with cocaine trafficking, including trace amounts of cocaine present on the smuggling vessel and Hinestroza-Newbbooll and his crew.
This case was investigated by the Panama Express Strike Force, an Organized Crime Drug Enforcement Task Force (OCDETF) comprised of agents and analysts from the United States Coast Guard Investigative Service, Drug Enforcement Administration, the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Naval Criminal Investigative Service, and U.S. Southern Command's Joint Interagency Task Force South. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. The case was prosecuted by Special Assistant United States Attorneys Nicholas DeRenzo and Toni Goodin.
Farmington Man Sentenced to 6 Years in Federal Prison for Child PornographyRead the Press Release
Fayetteville, Arkansas – David Clay Fowlkes, Acting United States Attorney for the Western District of Arkansas, announced that Christopher Hauser, age 33, of Farmington, Arkansas, was sentenced yesterday to 72 months in federal prison followed by fifteen years of supervised release for one count of Receipt of Child Pornography. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in March 2018, members of the Internet Crimes Against Children (ICAC) Task Force identified an IP address that was using a peer-to-peer file sharing network to obtain suspected child pornography files. The IP address was traced to Hauser. On May 31, 2018, a federal search warrant was executed at Hauser’s residence in Farmington, Arkansas. Law enforcement confiscated a digital device that had been connected to the internet with intent to view child pornography. A forensic analysis of that device revealed that it did in fact contain images of child pornography.
Hauser was indicted in May 2019 on federal charges and entered his guilty plea in September 2019.
This case was investigated by Homeland Security Investigations (HSI) and the Northwest Arkansas Internet Crimes Against Children (ICAC) Task Force. Assistant United States Attorney Amy Driver prosecuted the case for the United States.
FCI Danbury Inmate Sentenced to 2 More Years in Prison for Possessing WeaponsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JULIAN DE JESUS CASTILLO, 35, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 24 months of imprisonment, followed by three years of supervised release, for possessing weapons while incarcerated at the Federal Correctional Institution in Danbury, Connecticut (FCI Danbury).
According to court documents and statements made in court, on February 8, 2018, Castillo, while an inmate at FCI Danbury, possessed a razor blade and a 7.5 inch piece of flat metal that had sharpened edges and a point at one end. The razor blade was discovered taped to the underside of Castillo’s assigned bunk and the metal blade was concealed at the base of a pillar adjacent to Castillo’s bunk. The objects were designed or intended to be used as weapons.
On September 24, 2019, Castillo pleaded guilty to possession of contraband in a federal prison.
This matter was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Anastasia E. King.
East Stroudsburg Financial Planner Convicted of Scheme to Defraud His ClientsRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Anthony Diaz, age 52, formerly of East Stroudsburg, Pennsylvania, was convicted on January 30, 2020 following a jury trial, of wire fraud and mail fraud offenses. The 12-day trial was held before United States District Court Judge Malachy E. Mannion in Scranton.
According to United States Attorney David J. Freed, the jury returned the guilty verdict on all counts charged in the superseding indictment after approximately eight hours of deliberation. Diaz was convicted of seven counts of wire fraud and four counts of mail fraud, all stemming from the same scheme.
“Schemes like this one committed by unscrupulous investment advisors seeking to line their own pockets by selling high-risk and high-commission securities to unsophisticated investors based on lies about the safety of the security and net worth of the investor are fraud, pure and simple,” said U.S. Attorney Freed. “I hope this case sends a message to others in the industry that similar misconduct will not be tolerated and will have potential criminal consequences as well as the more common civil consequences.”
The evidence presented at trial showed that from approximately 2008 through April 2015, Diaz owned and operated Financial Planners Group of America, a financial planning business in East Stroudsburg and Scotrun, Pennsylvania. Diaz persuaded his clients to invest in high risk, illiquid “alternative investment products,” including real estate investment trusts, business development companies, oil and gas drilling companies, and equipment leasing companies.
A dozen of Diaz’s former clients testified at trial that Diaz convinced them to invest their life savings in the alternative investments through a series of false representations, including that the investments were low-risk, with guaranteed protection of principle and guaranteed rates of return, and that the investments were liquid, giving investors access to their funds in an emergency. Evidence introduced at trial showed that the investments were high-risk and speculative, with no guarantees, and that in some instances, investors lost all of their money. Evidence at trial also showed that the investments had lengthy holding periods, with no access to funds, and that could be extended indefinitely at the unilateral discretion of the investment company. Some witnesses testified to having invested money over a decade ago that they still could not liquidate.
At trial, jurors saw extensive client documentation bearing false information about the clients’ assets, risk tolerance, investment experience, and investment objectives. Clients testified that Diaz regularly had them sign blank documents, with the promise that missing information would be filled in by his office. Former employees of Diaz testified that he ordered them to add false information to the account forms, inflating clients’ assets, risk tolerance, and investment experience to qualify them as suitable investors for the alternative investments.
Jurors also learned that Diaz was terminated by five broker-dealers and permitted to resign by a sixth broker-dealer. Clients who asked about the frequent changes to new broker-dealers were told that it was for their benefit. Diaz’s former employees testified that they were ordered to conceal his firings and lie to the clients about his changes between broker-dealers.
Jurors also learned that Diaz was suspended by the Certified Financial Planners Board of Standards in 2013, and under investigation by the Financial Industry Regulatory Authority and the Pennsylvania Department of Banking, both of whom ultimately barred Diaz from the securities industry in 2015. Diaz’s clients testified that he failed to disclose his suspension from the Certified Financial Planners Board of Standards, and concealed the nature and severity of the regulatory investigations.
Various industry witnesses testified that Diaz earned commissions on the alternative investments that were often double, or even quadruple the commissions earned on more conventional investments, such as stocks, bonds, and mutual funds. Documents at trial showed that Diaz regularly earned in excess of $1.5 million in commissions annually. Witnesses described how Diaz spent his money on expensive automobiles, a dozen properties across the United States, and frequent vacations to exotic locales.
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorneys Phillip Caraballo and Robert O’Hara prosecuted the case.
The combined maximum penalty under federal law for Diaz is up to 220 years of imprisonment. There is also a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Drug Trafficker Sentenced to 24 YearsRead the Press Release
CHARLOTTE, N.C. – Late yesterday, U.S. District Judge Max O. Cogburn Jr. sentenced Garlin Raymond Farris, 57, of Mathews, N.C. to 288 months in prison and five years of supervised release for trafficking large amounts of methamphetamine, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
Vincent C. Pallozzi, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, joins U.S. Attorney Murray in making today’s announcement.
According to court documents and today’s sentencing hearing, from 2016 through the summer of 2017, Farris trafficked significant amounts of methamphetamine throughout Western North Carolina. Court records show that Farris supervised a network of distributors, who sold his drugs throughout Mecklenburg, Watauga, Catawba, and Alexander Counties. Farris and his distributors made frequent trips to supply sources located in Atlanta, Georgia. During those trips, Farris personally picked up at least 50 kilograms of methamphetamine and then brought the drugs back into North Carolina for distribution.
In April 2019, a federal jury convicted Farris of conspiracy to traffic methamphetamine. He is currently in custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
In making today’s announcement, U.S. Attorney Murray thanked the ATF for handling the investigation.
Assistant U.S. Attorney Erik Lindahl, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Dominican National Sentenced for Role in Large-Scale Heroin Trafficking OrganizationRead the Press Release
BOSTON – A Dominican national previously residing in Springfield was sentenced on Tuesday, Jan. 28, 2020, in federal court in Springfield for his role in a large-scale heroin trafficking organization.
Juan Perez, 32, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 30 months in prison and five years of supervised. Perez will face deportation proceedings upon completion of his sentence. In July 2019, Perez pleaded guilty to conspiracy to distribute and possession with intent to distribute more than one kilogram of heroin. Perez and 17 co-defendants were indicted on heroin conspiracy charges in August 2017.
Perez worked with Alberto Marte, the leader of the Springfield-based drug trafficking organization, to distribute vast amounts of heroin in the Springfield area. Perez admitted to travelling to Bronx, N.Y. with Marte and other members of the organization where they purchased three kilograms of heroin, which they intended to distribute in Springfield. Agents seized the heroin on Sept. 22, 2016, when they searched a vehicle on Marte’s property.
The Marte drug trafficking organization had direct contact with heroin supply sources in the Dominican Republic. On a monthly basis, members of the organization transported between eight and 20 kilograms of heroin to the Springfield area.
Marte and 11 other co-conspirators have pleaded guilty and are awaiting sentencing. The remaining defendants have pleaded not guilty.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Hampden County District Attorney Anthony D. Gulluni; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Springfield Police Commissioner Cheryl Clapprood; Chicopee Police Chief William Jebb; Holyoke Police Chief Manny Febo; and West Springfield Police Chief Ronald Campurciani made the announcement today. Assistant U.S. Attorney Neil Desroches of Lelling’s Springfield Branch Office is prosecuting the cases.
District Man Sentenced to 25 Years in Prison for Sexually Assaulting 12-Year-Old Girl Walking to Metro StationRead the Press Release
WASHINGTON – Rakim Davis, 30, of Washington, D.C. was sentenced today by Judge Ronna L. Beck of the Superior Court of the District of the Columbia to 25 years in prison for sexually assaulting a 12-year-old girl who was walking to a D.C. metro station, U.S. Attorney Jessie K. Liu announced.
Davis pled guilty in November 2019 to first degree sexual abuse of a child. Upon completion of his prison term, Davis will be placed on lifetime supervised release. He will also be required to register as a sex offender for the rest of his life.
According to the government’s evidence, on October 12, 2019, the 12-year-old victim was walking to the Congress Heights Metro Station in Washington, D.C. As she entered the 1300 block of Alabama Ave. SE, Davis approached her and asked if he could take her to a traphouse for a massage. When the victim said no, the defendant grabbed her by the arm and told her not to make a scene and that he didn’t want to hurt her. Davis took the victim across the street to an old elementary school that had been converted to a community recreation center. In an isolated corner of the breezeway, he sexually assaulted her. The victim immediately reported the assault to her family members, who brought her to the hospital, at which point the Metropolitan Police Department was notified.
In announcing the sentence, U.S. Attorney Liu commended the work of the Metropolitan Police Department, including the Youth Division, which investigated the case. She also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist T.J. McPhail and Victim/Witness Advocate Juanita Harris. Finally, she expressed appreciation for the work of Assistant U.S. Attorney Caroline Burrell, who investigated and prosecuted the case.
David City Man Sentenced for Conspiracy to Possess Methamphetamine with Intent to DistributeRead the Press Release
United States Attorney Joe Kelly announced that David Rogers, 35, of Omaha Nebraska, was sentenced today by Judge Robert F. Rossiter to 120 months (10 years) incarceration for conspiracy to possess methamphetamine with intent to distribute. There is no parole in the federal system. His term of incarceration will be followed by a five-year term of supervised release.
On October 18, 2018, a Dodge County Deputy Sheriff conducted a traffic stop on a vehicle driven by Rogers for crossing a fog line. During the stop, a K9 indicated to the odor of narcotics coming from within the vehicle. A search of the vehicle revealed pipes, a scale, multiple baggies, several knives, and a personal safe containing more than 110 grams of actual methamphetamine. During a post-arrest interview, Rogers admitted to distributing half-pound quantities of methamphetamine in the previous month.
This case was investigated by the Dodge County Sheriff’s Department.
Cuban National Sentenced to Prison for Alien Smuggling OperationRead the Press Release
MIAMI - On January 28, 2020, Tomas Vale Valdivia, 45, a Cuban national who was living in Isla Mujeres, Mexico, was sentenced to 57 months in prison by U.S. District Kathleen M. Williams in Miami, Florida for his participation in a for-profit alien smuggling conspiracy that transported Cuban nationals to Mexico and then into the United States.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Anthony Salisbury, Special Agent in Charge of the U.S. Immigration and Customs Enforcement’s, Homeland Security Investigations (ICE-HSI) Miami Field Office, and George L. Piro, Special Agent in Charge of the FBI’s Miami Field Office made the announcement.
According to the court record, including the agreed upon factual proffer and evidence presented during the sentencing hearing, beginning at least as early as October 2013, and continuing through at least July 2018, a group of individuals, including Vale Valdivia and additional unnamed associates, were members of an alien smuggling conspiracy operating in Miami, Florida, Mexico, the Dominican Republic, and Haiti. Vale Valdivia admitted to being the leader and organizer of the alien smuggling conspiracy, which included five or more participants. Through this conspiracy in excess of 100 migrants were smuggled from Cuba to Mexico and then ultimately to the border of the United States. Generally, the migrants were charged approximately $10,000. Vale Valdivia admitted to knowing that the migrants coming to, entry, and residence in the United States was a violation of law. Vale Valdivia further admitted that this alien smuggling conspiracy, at times, smuggled aliens in a manner that intentionally or recklessly created a substantial risk of death or serious bodily injury to another person. For example, at times vessels used to smuggle migrants were overloaded or were used during foul weather so as to risk capsizing. In addition to smuggling migrants, Vale Valdivia smuggled baseball players from Cuba to the United States. Vale Valdivia also admitted to being involved in a conspiracy that stole engines in the United States and then shipped the engines through a freight forwarding company in Miami to Mexico to be used to further the alien smuggling conspiracy.
This prosecution is the result of the ongoing efforts of the Operation Sisyphus Task Force, a multi-agency partnership to combat Caribbean based organized crime that includes the U.S. Attorney’s Office for the Southern District of Florida, FBI Miami and HSI Miami. In recent years, the Operation Sisyphus Task Force has targeted organizations utilizing coercion and extortion to compel migrants and their families to make payments for the release of loved ones.
If you believe you are a victim of migrant coercion or extortion or know someone who is, you are encouraged to call 1-866-347-2423 or visit https://www.ice.gov/tipline. The toll-free phone number is available 24 hours a day, 7 days a week, 365 days a year. Help is available in English, Spanish, and additional languages.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the ICE-HSI, FBI, U.S. Customs and Border Protection (CBP), and U.S. Coast Guard Investigative Service (CGIS), Southeast Region in this matter. This case is being prosecuted by Assistant U.S. Attorneys J. Mackenzie Duane and Ignacio J. Vázquez, Jr. Assistant U.S. Attorneys Adrienne Rosen and Annika Miranda are assigned to the asset forfeiture aspects of the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Convicted Felon Sentenced to 10 Years in Prison on Child Pornography ChargeRead 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 Sean Humby, 31, of Rochester, NY, who was convicted of possession of child pornography involving prepubescent minors, after having sustained a conviction for child sexual abuse, was sentenced to serve 10 years in prison, and 10 years of supervised release, by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Kyle P. Rossi, who handled the case, stated that Humby was convicted of sexually abusing three minors in Monroe County in 2008, and sentenced to serve 108 months in prison. The defendant was released to parole supervision in 2016. On August 24, 2018, while conducting a routine search of Humby’s residence, New York State Parole Officers discovered the defendant to be in possession of a cellular phone, in violation to his parole conditions. Humby was taken into custody and the phone was turned over to the FBI. A forensic analysis recovered images of child pornography on the phone.
The sentencing is the result of an investigation by members of New York State Parole, under the direction of Acting Commissioner Anthony J. Annucci; the Federal Bureau of Investigation Child Exploitation Task Force, under the direction of Special Agent-in-Charge Gary Loeffert; and the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter.
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Congress Must Act to Permanently Ban Lethal DrugsRead the Press Release
A Grain Valley, Missouri, teenager ingested what he thought was just half of an oxycodone pill, and it nearly cost him his life.
The teenage victim didn’t know the pill he bought on the street in the Westport area of Kansas City was laced with a synthetic drug called carfentanil, which is 10,000 times more potent than morphine. Carfentanil is an analogue, or a chemically altered version, of the potent opioid fentanyl, and has been linked to a significant number of overdose deaths across the country.
In this case, the victim was fortunate to receive emergency medical treatment and survived his overdose. The man who sold him the pill, Gage Lankas, was recently sentenced to 15 years in prison.
This tragic scenario is repeated too often in communities from Springfield to Columbia and throughout the state. Fatal drug overdose deaths are on the rise in Missouri. In 2018, 1,635 Missourians died from drug overdose deaths. The vast majority of drug overdose deaths (1,132) were opioid overdoses.
Fentanyl and its analogues (like carfentanil) pose a greater risk of overdose than many other opioids. Only a couple of milligrams – the size of a few grains of salt – is enough to kill the average person. Drug dealers lace their products with fentanyl (which is 50 times more powerful than heroin) to make them more potent. Their customers, like the teenager in Grain Valley, often don’t know they are ingesting fentanyl, or how much.
It’s no secret where fentanyl is coming from — laboratories in China and Mexico manufacture huge amounts of fentanyl and smuggle it into the United States. For example, Edgar Reyes-Toscano was sent to prison last November after he was caught at a Kansas City bus station carrying a duffel bag that contained more than 3.5 kilograms of fentanyl and more than 2.3 kilograms of methamphetamine. When a few grains of fentanyl can be lethal, imagine the danger of more than seven pounds of fentanyl distributed on the streets of our community.
Law enforcement must have the resources to combat this deadly crisis of opioid overdose deaths caused by an influx of fentanyl and fentanyl analogues smuggled into our country. Congress this week voted to temporarily preserve one critical tool, however, there is more that must be done.
Until recently, fentanyl manufacturers could evade federal laws by making small adjustments to the chemical formula and thus creating a new, unregulated drug. These fentanyl analogues, because of their molecular variations, took advantage of a coverage gap in U.S. drug control laws.
In 2018, the DEA took emergency action. Rather than racing to schedule each of these new drugs as they are created and discovered, the DEA scheduled the entire class of fentanyl-like drugs. This authorized federal law enforcement to combat newly emerging fentanyl analogues as aggressively as fentanyl. As a result, there has been a marked decrease in the production of fentanyl analogues over the past two years.
That emergency order would have expired next week; fortunately, the U.S. House of Representatives authorized an extension yesterday of the DEA’s scheduling action controlling fentanyl analogues. The U.S. Senate unanimously approved an identical bill earlier this month, so the measure now awaits the president’s signature.
This is a step in the right direction, but further steps are still needed.
Beyond this temporary extension, a permanent legislative solution for class-wide fentanyl scheduling is necessary so that we don’t find ourselves in this position again, on the brink of opening the floodgates to drug traffickers. The proposed Stopping Overdoses of Fentanyl Analogues legislation has been introduced in Congress and endorsed by the attorneys general in all 50 states.
Missouri has a significant stake in Congressional action. Even as the Centers for Disease Control reports that drug overdose deaths are declining nationally, Missouri is one of the few states where overdose deaths have actually increased. Overdose deaths increased by 16.3 percent in 2018, the latest statistics available, ranked second in the nation only to Delaware (which increased by 16.7 percent). This increase is primarily due to opioids like fentanyl and its analogues. Missouri’s opioid epidemic affects all genders, all races, and many age groups in both rural and urban Missouri communities.
These deadly drugs should be made permanently illegal. The passage of this legislation is quite literally a matter of life and death.
Colebrook Man Pleads Guilty to Distributing Methamphetamine Near a SchoolRead the Press Release
CONCORD - Michael R. Haynes, 39, of Colebrook, pleaded guilty in federal court to distribution of methamphetamine within a school zone, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on February 15, 2019, Haynes sold methamphetamine to an individual who was cooperating with law enforcement officers. The sale occurred within 1,000 feet of an elementary school.
Haynes is scheduled to be sentenced on May 8, 2020.
“Methamphetamine presents a growing threat to people throughout New Hampshire,” said U.S. Attorney Murray. “Communities in all parts of our state have been impacted. In order to maintain public safety, we will continue to work closely with our law enforcement partners to identify and prosecute those who distribute this dangerous drug.”
This matter was investigated by the DEA, with assistance from the Colebrook Police Department, the New Hampshire State Police, U.S. Customs and Border Protection, the Office of Inspector General of the U.S. Department of Health and Human Services, the Coos County Sheriff’s Office, the New Hampshire Liquor Commission’s Division of Enforcement and Licensing, and the New Hampshire Attorney General’s Office. The case is being prosecuted by Assistant United States Attorneys Charles Rombeau and John S. Davis.
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Citizen of El Salvador Pleads Guilty to Reentering U.S. after Being Removed 3 TimesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that WILIAN ALEXANDER ORELLANA-LUNA, 40, a citizen of El Salvador last residing in West Haven, pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to reentry of a removed alien.
According to court documents and statements made in court, Orellana-Luna had encounters with the U.S. Border Patrol in Texas in March 2013, November 2015 and February 2019. He was removed to El Salvador after each encounter.
On October 22, 2019, Orellana-Luna was arrested by West Haven Police and charged with evading responsibility resulting in injury or property damage. A biometric match alerted Immigration and Customs Enforcement (ICE) that Orellana-Luna, who had been released after his arrest, was present in Connecticut. ICE arrested Orellana-Luna on December 5, 2019.
Immediately following the guilty plea proceeding, Judge Underhill sentenced Orellana-Luna to time served. Orellana-Luna was then released into ICE custody for removal to El Salvador.
This investigation was conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE). The case was prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Citizen of Ghana Pleads Guilty to Assaulting A Federal Officer and Drug ChargeRead 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 Nana Dwomah Yeboah, 36, a citizen of the Republic of Ghana, pleaded guilty, before U.S. District Judge Charles J. Siragusa, to assaulting a federal officer and possession of a controlled substance. The charges carry a maximum sentence of eight years in prison, and a $250,000 fine.
Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that that on the morning of December 24, 2017, U.S. Customs and Border Protection Officers were conducting a routine patrol of the Greyhound Bus Station on Cumberland Street in Rochester. Officers observed the defendant enter the bus station and place a package on a bench in the lobby area. Yeboah then exited the station, leaving the package unattended. After several minutes, officers searched the abandoned package to ensure that it did not pose a threat to the public. Inside, officers discovered a quantity of marijuana that appeared to be packaged for sale.
After several minutes, the defendant returned to the area and was questioned by officers, who quickly determined that he was not a U.S. Citizen. As they attempted to detain and further identify Yeboah, he fled the station, leading officers on a short chase. Yeboah was ultimately apprehended, but proceeded to fight with officers for several minutes. One of the officers suffer facial injuries that required treatment at Rochester General Hospital. The defendant was ultimately brought under control with the assistance of civilian bystanders. Subsequent investigation determined that Yeboah was in possession of an additional quantity of marijuana that was packaged for sale.
The plea is the result of an investigation by Customs and Border Protection, under the direction of Special Agent in Charge Vance Kuhner, with assistance from the U.S. Border Patrol under the direction of Chief Edwardo Payan, and the Rochester Police Department, under the direction of Chief La’Ron Singletary.
Sentencing is scheduled for May 7, 2020, before Judge Siragusa.
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Christopher Hasson Sentenced to More Than 13 Years in Federal Prison on Federal Charges of Illegal Possession of Silencers, Possession of Firearms by an Addict to and Unlawful User of a Controlled Substance, and Possession of a Controlled SubstanceRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel today sentenced Christopher Paul Hasson, age 50, of Silver Spring, Maryland, to 160 months in federal prison, followed by four years of supervised release, on four federal charges, including unlawful possession of unregistered silencers, unlawful possession of firearm silencers unidentified by serial number, possession of firearms by an addict to and unlawful user of a controlled substance, and possession of a controlled substance. Hasson has been detained since his arrest on February 15, 2019.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge Art Walker of the U.S. Coast Guard Investigative Service; and Acting Special Agent in Charge Toni Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division.
“Preserving our nation’s security against terrorist threats continues to be the Justice Department’s top priority. Lives were saved due to the skill and dedication of law enforcement in this case. Christopher Hasson intended to inflict violence on the basis of his racist and hateful beliefs. As long as violent extremists take steps to harm innocent people, we will continue to use all of the tools we have to prevent and deter them,” said United States Attorney Robert K. Hur.
“The FBI remains committed to combatting terrorism, both domestic and international, and we remain fully prepared to take those actions necessary to safeguard our communities,” said Special Agent in Charge Jennifer Boone. “We will use every tool given to us by the Department of Justice and Congress to disrupt Racially Motivated Violent Extremist activity. However, protection of our communities and our nation is a shared responsibility, and we must combat terrorism as a united force against all forms of violent hate.”
According to his plea agreement, Hasson was a Lieutenant in the United States Coast Guard. Prior to June 2016, Hasson owned a residence and lived in Currituck, North Carolina. In approximately June 2016, Hasson moved to a residence in Silver Spring, Maryland, and worked at Coast Guard Headquarters in Washington, D.C.
As detailed in the government’s sentencing memo and presented to the Court during the sentencing hearing, Christopher Hasson self-identified as a “White Nationalist” for over 30 years and in writings advocated for “focused violence” in order to establish a white homeland. Review of Hasson’s e-mail accounts, saved documents, text messages, and Internet searches show that he was inspired by racist murderers, stockpiled assault weapons, studied violence, and intended to exact retribution on minorities and those he considered traitors.
Hasson admitted that from at least March 2016 through early February 2019, he used various e-mail accounts, including an overseas encrypted e-mail account, to order Tramadol, which is an opioid, from various illegal Internet-based distributors. Hasson usually paid for the Tramadol by wiring money to individuals in Mexico, at the direction of the Mexico-based distributor, who then had the Tramadol shipped to Hasson, typically in 100mg pills, at addresses Hasson provided, including his North Carolina and Maryland residences. Hasson admitted that he then concealed the Tramadol in other packaging at his residence and work and personally took the pills, usually daily, including while he was at work.
As detailed in his plea agreement, at the time of Hasson’s arrest on February 15, 2019, agents recovered 196 Tramadol pills from Hasson’s backpack. Search warrants executed the same day recovered 106 Tramadol pills from Hasson’s desk at Coast Guard Headquarters and 122 Tramadol pills from Hasson’s residence. From Hasson’s residence, law enforcement also recovered the following firearms: seven rifles; two shotguns; four pistols; two revolvers; an assembled firearm silencer; and a disassembled firearm silencer. In close proximity to the guns, agents found multiple magazines that could accept more than 15 rounds of ammunition, as well as hundreds of rounds of ammunition. Hasson ordered the components of the firearm silencers from a company in California and used a drill to complete and assemble one firearm silencer. Hasson knew the firearm silencers were not registered in the National Firearms Registration and Transfer Record, and that they did not have serial numbers, as required by law.
As detailed in court documents, to prepare himself to take action, in addition to the firearms and silencers referenced above, Hasson purchased holsters, knives, magazines, ammunition, handguards, camping supplies, Meals-Ready-to-Eat, steel body armor plates, plate carriers, tactical vests and pouches, firearm repair kits, and smoke grenades. Hasson also e-mailed to his Coast Guard computer the manifestos of mass murderer Anders Breivik and Unabomber Ted Kaczynski, as well as the memoir of Eric Rudolph, the 1996 Atlanta Olympics bomber, titled “Between the Lines of Drift: The Memoirs of a Militant.” Hasson referred to those documents in his own writings. Hasson registered for an online sniper and sharpshooter forum, studied sniper tactics, and purchased high-end scopes and a sniper rifle. Internet searches performed by Hasson show that he targeted potential victims, including media personalities and current and former elected officials.
United States Attorney Robert K. Hur commended the FBI, the U.S. Coast Guard Investigative Service, and the ATF for their work in the investigation. Mr. Hur thanked his office’s national security prosecutors, who handled the case.
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California man who hacked into Nintendo servers to steal video games and other proprietary information pleads guiltyRead the Press Release
Seattle – A 21-year-old Palmdale, California, man pleaded guilty today in U.S. District Court in Seattle to federal crimes related to his computer hacking scheme and his possession of child pornography found on his digital devices, announced U.S. Attorney Brian T. Moran. RYAN S. HERNANDEZ, aka Ryan West, who used the online moniker “RyanRocks,” pleaded guilty to a two-count information. HERNANDEZ is scheduled for sentencing by U.S. District Judge John C. Coughenour on April 21, 2020.
According to records filed in the case, in 2016, while still a minor, HERNANDEZ and an associate used a phishing technique to steal credentials of a Nintendo employee, which were exploited to gain access to and download confidential Nintendo files related to its consoles and games. That stolen information, including pre-release information about the anticipated Nintendo Switch console, was leaked to the public. In October 2017, following an investigation into the hack, FBI agents contacted HERNANDEZ and his parents at their California residence. HERNANDEZ promised to stop any further malicious activity and confirmed that he understood the consequences of any future hacking.
Nevertheless, from at least June 2018 to June 2019, HERNANDEZ returned to his malicious activities, hacking into multiple Nintendo servers and stealing confidential information about various popular video games, gaming consoles, and developer tools. HERNANDEZ boasted about his hacking exploits on several online and social media platforms, such as Twitter and Discord, and leaked some of the stolen information to others. HERNANDEZ further operated an online chat forum called “Ryan’s Underground Hangout” in which he and others discussed Nintendo products and shared information about possible Nintendo network vulnerabilities, and on which he shared some of the confidential information he had stolen.
In June 2019, FBI agents searched HERNANDEZ’s home and seized numerous electronic devices, including computers, hard drives, and circumvention devices used to access pirated video games and software. On those devices, they discovered thousands of confidential Nintendo files. Forensic analysis of his devices also revealed that HERNANDEZ had used the internet to collect more than one thousand videos and images of minors engaged in sexually explicit conduct, stored and sorted in a folder directory he labeled “Bad Stuff.”
Under the terms of the plea agreement, prosecutors and defense attorneys, will recommend three years in prison. However, the ultimate sentence is up to the judge and could be up to the statutory maximums of 5 years in prison for computer fraud and abuse, and 20 years in prison for possession of child pornography.
HERNANDEZ has agreed to pay $259,323 in restitution to Nintendo for the remediation costs caused by his conduct. Under the terms of the plea agreement, HERNANDEZ also will be required to register as a sex offender following his conviction.
The case was investigated by the FBI, Seattle Cyber Task Force. The case is being prosecuted by Assistant United States Attorney Steven Masada.
C-Block Gang Leader Convicted of Drug and Firearms OffensesRead the Press Release
DES MOINES, Iowa – On January 30, 2020, following a four-day trial, a jury found Daeron Johnson Merrett guilty of conspiracy to distribute 500 grams or more of cocaine, 8 counts of distribution of a controlled substance, one count of possession with intent to distribute cocaine, and one count of possessing a firearm as a felon. The case was presided over by United States District Court Judge Rebecca Goodgame Ebinger. Sentencing is scheduled for May 29, 2020, at 9:00 a.m.
Merrett was arrested on March 27, 2019, during the coordinated execution of search and arrest warrants in Des Moines. Merrett was identified from the criminal complaint affidavit as a leader of C-Block, a criminal street gang based in Des Moines. In December 2018, law enforcement obtained authorization to intercept Merrett’s telephone communications, which led to the identification of Merrett’s cocaine trafficking network.
During trial, the government presented evidence that Merrett began traveling to Chicago, Illinois in January 2019 to obtain cocaine for distribution in Des Moines. Over the course of a one-month period, Merrett made four separate trips to Chicago to obtain cocaine, totaling over 500 grams. The evidence also showed that Merrett developed a Texas-based cocaine source of supply, from which he arranged to receive a kilogram of cocaine. Merrett had numerous cocaine customers and co-conspirators in Des Moines, many of whom were charged in the same Indictment and have entered guilty pleas.
On March 27, 2019, during a search warrant executed at Merrett’s Des Moines residence, law enforcement located cocaine, numerous digital scales, packaging materials, a loaded firearm, and various rounds of ammunition.
Merrett has a prior conviction for a serious drug felony, that is, a 2011 conviction in the Iowa District Court for Polk County for delivery of a controlled substance.
Conspiracy to distribute more than 500 grams of cocaine following a conviction for a serious drug felony carries a mandatory minimum term of imprisonment of ten years and a maximum term of imprisonment of life.
The case was investigated by the Federal Bureau of Investigation’s Central Iowa Gang Task Force, Des Moines Police Department, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Drug Enforcement Administration, Dallas County Sheriff’s Office, Polk County Sheriff’s Office, Story County Sheriff’s Office, and the Altoona Police Department. The case was prosecuted by Assistant United States Attorneys Mikaela J. Shotwell and Adam J. Kerndt.
Bulk Trafficker of Heroin and Crystal Methamphetamine Is Sentenced to 20 YearsRead the Press Release
CHARLOTTE, N.C. – Otequise Lenard Miller, 34, of Concord, N.C. was sentenced today to 240 months in prison and five years of supervised release on drug trafficking conspiracy resulting in an overdose death and money laundering charges, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office; Ronnie Martinez, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Charlotte; Chief Gary J. Gacek of the Concord Police Department; and Interim Chief Terry Spry of the Kannapolis Police Department join U.S. Attorney Murray in making today’s announcement.
According to filed court documents and today’s sentencing hearing, from 2015 until his arrest on August 22, 2018, Miller was part of a drug conspiracy that trafficked bulk crystal methamphetamine and heroin into Mecklenburg County. During the relevant time period, Miller trafficked approximately seven to nine kilograms of heroin, and 14 to 18 kilograms of crystal methamphetamine. In addition to drug trafficking, Miller concealed and laundered the drug proceeds.
Court records show that, in December 2017, Miller sold heroin to a victim identified in court documents as “W.M.,” which resulted in the victim’s overdose death. As described further in court documents, Miller continued to sell narcotics even after he became aware of the victim’s death. Miller is a repeat offender, and was previously convicted of drug trafficking charges.
Miller is currently in custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
This case is part of the U.S. Attorney’s Office initiative to combat the opioid abuse epidemic in the Western District of North Carolina through prosecution, enforcement and prevention.
In June 2019, U.S. Attorney Murray announced the formation of the Western District’s Heroin and Opioid Prevention and Enforcement (H.O.P.E.) Task Force. This multi-agency team of experienced federal and state investigators located in the Western District of North Carolina work with federal prosecutors to identify abusive practices by participants in the opioid pharmaceutical supply chain, and to prosecute drug trafficking networks that distribute lethal heroin and opioids into our communities.
The Task Force focuses on coordinating investigations, information sharing, identifying trends throughout the region, investigating whistleblower complaints, and the creation of cross-agency investigative teams so each agency task force member can bring its area of expertise on investigations.
The Task Force builds upon existing partnerships between the agencies, and its work reflects a heightened effort to reduce heroin and opioid abuse, to increase prevention through outreach efforts, and to educate the public about the dangers of counterfeit drugs, heroin abuse and opioid addiction.
This prosecution is also part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF), targeting the importation of narcotics from Mexico into Western North Carolina.
OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
DEA, HSI, the Concord Police Department, and the Kannapolis Police Department investigated the case.
Assistant U.S. Attorney Sanjeev Bhasker, of the U.S. Attorney’s Office in Charlotte, is in charge of the prosecution.
Buffalo Man Going to Prison for His Role in Drug Trafficking OrganizationRead 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 Devincio K.D. James, 30, of Buffalo, NY, who was convicted of conspiring to possess with intent to distribute, and distributing, 500 grams or more of cocaine, was sentenced to serve 87 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Laura A. Higgins, who handled the case, stated that between July 2017 and September 29, 2017, the defendant conspired with others to distribute cocaine in the Niagara Falls area for a drug trafficking organization led by co-defendant Cesar Rivera-Figueroa.
James was a mid-level distributor of cocaine for Rivera-Figueroa. James picked up the cocaine from either Rivera-Figueroa or another co-defendant, then sold it in Niagara Falls. On September 29, 2017, James was arrested inside his residence at 1080 99th Street in Niagara Falls. Investigators searched the residence and recovered approximately $29,260 in U.S. currency; a loaded 20 gauge shotgun; 23 live 20 gauge shotgun shells; and five digital scales.
A total of 12 defendants were charged and convicted in this case. James is the seventh defendant to be sentenced.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, Safe Streets Task Force, under the direction of Special Agent-in-Charge Gary Loeffert; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the New York State Police, under the direction of Major James Hall, and the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard.
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Boston Man Pleads Guilty to Illegally Possessing a Loaded HandgunRead the Press Release
BOSTON – A Boston man pleaded guilty yesterday in federal court in Boston to being a felon in possession of a firearm and ammunition.
Kerry Charlotin, 30, pleaded guilty to being a felon in possession of a firearm and ammunition before U.S. District Court Judge William G. Young who scheduled sentencing for May 21, 2020. Charlotin was charged in August 2019.
On May 1, 2019, officers were in the area of Blue Hill Avenue in Mattapan due to resident complaints of drug dealing and public drinking. It is alleged that when Charlotin, who was seen by the officers wearing a black backpack, observed the police presence, he ran. The officers pursued him, and when they caught up to him, a black backpack was in the air and landed on the roof of a building. Charlotin, no longer wearing a black backpack, continued running from the officers; he was eventually found hiding in a fenced in area in a backyard. When officers recovered the black backpack, they found, among other things, a loaded Glock 26, 9mm caliber Lugar semi-automatic pistol containing nine rounds of ammunition, one of those rounds was in the chamber.
Based on prior felony convictions, Charlotin is prohibited from possessing a firearm and ammunition under federal law.
The charging statute provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Boston Police Commissioner William G. Gross made the announcement. Assistant U.S. Attorney Lindsey E. Weinstein of Lelling’s Major Crimes Unit is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is 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.
Berks County Accountant Allegedly Victimizes the Mennonite and Amish Communities in Massive Ponzi SchemeRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Philip Elvin Riehl, 68, of Bethel Township, Berks County, PA, was charged by Information with conspiracy, securities fraud, and wire fraud, stemming from an investigation into a Ponzi scheme worth approximately $60 million. The alleged fraud targeted members of the Mennonite and Amish religious communities in Pennsylvania and elsewhere and is one of the largest Pennsylvania-based alleged Ponzi schemes in history.
Riehl, an accountant, is alleged to have fraudulently solicited tens of millions of dollars in investments, from his accounting clients and others, into a bogus investment program that he operated. Riehl then diverted funds from the program to Trickling Springs Creamery, LLC, a Franklin County–based creamery of which he was the majority owner. Riehl also fraudulently solicited direct investments in Trickling Springs Creamery. The Information further alleges that Riehl made material misrepresentations about the safety and security of these investments in his program and about the performance of the program, as well as misrepresentations and omissions about the creamery’s business and financial condition. Trickling Springs Creamery announced it was ceasing operations in September 2019 and filed a bankruptcy petition in December 2019.
The allegations constitute what is sometimes referred to as “affinity fraud,” which typically involves investment scams that prey upon members of identifiable groups, such as religious or ethnic communities. These types of scams exploit the trust and friendship that exist in groups of people who share common interests or beliefs. The victims of Riehl’s alleged scheme were generally members of the Mennonite or Amish religious communities who wanted a safe and secure investment, operated within their community and in a manner consistent with their religious principles. The charges note that Riehl was a co-religionist in the Mennonite religious community.
“These investors were looking for honesty and integrity when deciding where and with whom to invest their money,” said U.S. Attorney McSwain. “According to the Information, Riehl presented himself as a trusted member of their religious community, only to betray that trust and swindle them out of tens of millions of dollars. It is only natural for members of a tightly knit community to want to take care of one another, but Riehl did not care about anyone but himself. Fraudsters must be held accountable under the law – no matter what community they belong to – for justice to prevail.”
“So long as there are people with money to invest, there will be swindlers ready to take their money under false pretenses,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “But it is particularly loathsome when these criminals exploit trusting members of their own church or community. According to the Information, Philip Riehl repeatedly misrepresented what he was doing with his investors’ money – people who took him at his word. The FBI will continue to investigate and hold accountable those who engage in such financial fraud.”
If convicted, the defendant faces a maximum possible sentence of 45 years in prison, a $5,500,000 fine, a 3-year term of supervised release, forfeiture, and mandatory restitution.
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Michael J. Rinaldi. The U.S. Attorney’s Office appreciates the assistance of the Pennsylvania Department of Banking and Securities, and the U.S. Securities and Exchange Commission.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Berkeley County woman admits to theft of government propertyRead the Press Release
MARTINSBURG, WEST VIRGINIA – Crystal M. Tress, of Martinsburg, West Virginia, has admitted to stealing government property, U.S. Attorney Bill Powell announced.
Tress, age 42, pled guilty to one count of “Theft of Government Property.” Tress admitted to embezzling more $5,309.20 that belonged to the United States government while she was employed at the Veterans Canteen Service. The crime took place from April 2018 to March 2019 in Berkeley County.
Tress faces up to 10 years incarceration. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Kimberley D. Crockett is prosecuting the case on behalf of the government. The Department of Veterans Affairs Police investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Bella Vista, Arkansas Man Sentenced to 120 Months for Transportation of A Minor with Intent to Engage in Criminal Sexual ActivityRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Cameron Nathaniel Robinson, age 21, of Bella Vista, Arkansas, was sentenced to 120 months’ imprisonment, and 5 years of supervised release for Transportation Of A Minor With Intent To Engage In Criminal Sexual Activity, in violation of Title 18, United States Code, Section 2423(a). The charges arose from an investigation by the Westville Police Department and the Federal Bureau of Investigation.
The Indictment alleged that from on or about April 2, 2019, to on or about April 3, 2019, in the Eastern District of Oklahoma, and elsewhere, the defendant knowingly transported an individual who had not attained the age of 18 years, in interstate commerce, with the intent that such individual engage in sexual activity for which any person can be charged with a criminal offense.
“One of the most important responsibilities we have is to protect children from predators. The investigation in this case proved the defendant preyed upon the victim, a minor child, for his sexual desires. He began luring the victim through the use of internet applications and text messages, arranged to meet the victim in person, and then took her to his home in Arkansas,” said United States Attorney Brian J. Kuester. “Child predators commonly use the internet and phones to communicate with, lure, groom, and arrange to meet their victims. Tragically, technology has given criminals potential access to children even when they aren’t in the same state. This is a reality we must always remember and take precautions against.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Sarah McAmis represented the United States.Baltimore Felon Sentenced to Seven Years in Federal Prison for Illegal Possession of a FirearmRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake today sentenced Malik Moseley, age 28, of Baltimore, Maryland, to seven years in federal prison, followed by three years of supervised release, for being a felon in possession of a firearm. Moseley was charged as part of the federal-state initiative announced in December 2018 to combat the fentanyl crisis in Maryland.
Under this initiative, titled the “Synthetic Opioid Surge,” or “SOS” for short, every arrest involving distribution of fentanyl made by law enforcement in Baltimore is reviewed jointly by the State’s Attorney’s Office for Baltimore City, the Drug Enforcement Administration, and the U.S. Attorney’s Office to determine whether the case will be handled in the state or federal system. The U.S. Attorney’s Office will prosecute more cases involving fentanyl as a result of this new program. The use of federal resources and statutes, which carry significant terms of imprisonment, is necessary to prosecute those individuals who pose the greatest threat to public safety in distributing lethal doses of fentanyl.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; Commissioner Michael Harrison of the Baltimore Police Department; and Anne Arundel County Police Chief Tim Altomare.
“Law enforcement partners are working together to arrest and prosecute those who peddle deadly fentanyl on our streets and in our neighborhoods—especially those drug dealers who illegally possess guns,” said U.S. Attorney Robert K. Hur. “Drug traffickers are on notice that dealing in fentanyl increases their odds of federal prosecution. We must do everything we can to reduce overdose deaths from fentanyl and from all opioids. I am grateful to Baltimore City State’s Attorney Marilyn Mosby for providing a cross-designated Assistant State’s Attorney to facilitate and coordinate the review of SOS cases.”
According to Moseley’s guilty plea, in September and October 2018, members of the Baltimore Police Department conducted two controlled purchases of drugs from Moseley at a residence in the 400 block of Freeman Street in South Baltimore. Law enforcement officers also conducted covert surveillance outside the residence and observed Moseley and another individual engage in suspected hand-to-hand drug transactions in front of the home.
Based on this information, BPD officers obtained a search warrant for the residence, which they executed on October 17, 2018. At the time, Moseley had an open arrest warrant from Anne Arundel County, Maryland. While approaching the residence, the officers observed Moseley standing outside, and they immediately apprehended and arrested him. In a search of Moseley’s person incident to his arrest, the officers recovered a 9mm semi-automatic pistol, loaded with eight rounds of ammunition; a plastic bag containing nine suboxone strips, and $790 in cash. Moseley had a previous felony conviction and was therefore prohibited from possessing a firearm or ammunition.
During the search of the residence, the officers recovered bags containing a total of approximately 47 grams of fentanyl; a bag containing approximately 5 grams of a heroin-fentanyl mixture; drug paraphernalia, including three digital scales with drug residue; razor blades with residue; a glass plate with residue; a pill press with residue; and various drug packaging material. In addition, law enforcement recovered a gun holster; two remote-control surveillance drones; a home surveillance system with two high-definition cameras; $101 in cash, and $30 in counterfeit currency.
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. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the DEA, the Baltimore Police Department, and the Anne Arundel County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Christina A. Hoffman, who prosecuted the case and thanked Special Assistant U.S. Attorney Jeffrey Hann, a cross-designated Baltimore City Assistant State’s Attorney, for his assistance.
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Attorney General William P. Barr Names U.S. Attorney Erin Nealy Cox as Chair of Attorney General’s Advisory CommitteeRead the Press Release
Attorney General William P. Barr today announced that Erin Nealy Cox, U.S. Attorney for the Northern District of Texas, has been elevated from Vice Chair to Chair of the Attorney General’s Advisory Committee (AGAC).
Attorney General Barr also announced Justin Herdman, U.S. Attorney for the Northern District of Ohio, will become the new Vice Chair.
“Erin Nealy Cox has shown herself to be a leader in the U.S. Attorney community, a fierce advocate for the rule of law who has spearheaded prosecution efforts targeting domestic abusers and other violent criminals,” said Attorney General Barr. “Justin Herdman has also been a leader at the forefront of the department’s fight against the deadly trade in fentanyl and other dangerous drugs. I am pleased to have them leading my AGAC team.”
U.S. Attorney Nealy Cox replaced former Chair, Jessie Liu who resigned this week as U.S. Attorney for the District of Columbia.
In addition, Attorney General Barr appointed U.S. Attorney John Bash to the Attorney General’s Advisory Committee.
The AGAC represents the voice of the U.S. Attorneys and provides advice and counsel to the Attorney General on policy, management and operational issues impacting the Offices of the U.S. Attorneys.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Attorney General William P. Barr Names U.S. Attorney Erin Nealy Cox as Chair of Attorney General’s Advisory CommitteeRead the Press Release
Attorney General William P. Barr today announced that Erin Nealy Cox, U.S. Attorney for the Northern District of Texas, has been elevated from Vice Chair to Chair of the Attorney General’s Advisory Committee (AGAC).
Attorney General Barr also announced Justin Herdman, U.S. Attorney for the Northern District of Ohio, will become the new Vice Chair.
“Erin Nealy Cox has shown herself to be a leader in the U.S. Attorney community, a fierce advocate for the rule of law who has spearheaded prosecution efforts targeting domestic abusers and other violent criminals,” said Attorney General Barr. “Justin Herdman has also been a leader at the forefront of the department’s fight against the deadly trade in fentanyl and other dangerous drugs. I am pleased to have them leading my AGAC team.”
U.S. Attorney Nealy Cox replaced former Chair, Jessie Liu who resigned this week as U.S. Attorney for the District of Columbia.
In addition, Attorney General Barr appointed U.S. Attorney John Bash to the Attorney General’s Advisory Committee.
The AGAC represents the voice of the U.S. Attorneys and provides advice and counsel to the Attorney General on policy, management and operational issues impacting the Offices of the U.S. Attorneys.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Alien Smuggler Sentenced to 17 Years in Prison for Shooting at Border Patrol Agents During High Speed PursuitRead the Press Release
TUCSON, Ariz. – On January 24, 2020, Roberto Ramirez, 23, of Tucson, was sentenced by U.S. District Judge Jennifer G. Zipps to 204 months in prison. Ramirez previously pleaded guilty on August 8, 2019, to one count of Transportation of Illegal Aliens for Profit Placing in Jeopardy of Life, three separate counts of Assault on a Federal Officer with a Deadly Weapon, and one count of Possession of a Firearm by a Prohibited Person.
On Christmas Eve 2017, Ramirez transported two undocumented aliens for profit and fled from the Border Patrol checkpoint on I-19 at speeds close to 100 mph. Three Border Patrol agents were in pursuit when the defendant tried to ram their marked patrol cars with his own car. When that did not stop the pursuit, the defendant fired shots at the agents with a revolver. When his firearm was empty of ammunition, the defendant attempted to reload the weapon but, in doing so, lost control of his car which then rolled multiple times. One of the undocumented individuals was unrestrained and ejected from the defendant’s vehicle. He suffered head trauma that caused him to be in a coma, and sustained a broken shoulder and collarbone resulting in the permanent disfigurement of one of his shoulders. The other individual suffered a permanent injury to one of his eyes that will affect his vision for the rest of his life.
“This case highlights the dangers involved with illegal alien smuggling,” said HSI Special Agent in Charge, Scott Brown. “Recklessly, the driver caused bodily harm to two other people during the rollover, as he callously attempted to flee law enforcement officers while shooting at them. HSI continues to aggressively target and dismantle transnational criminal organizations that profit from the suffering of individuals.”
“We are grateful to the Border Patrol agents who put their lives on the line to stop Ramirez from causing even more harm,” said United States Attorney Michael Bailey. “These smugglers present a danger to everyone, and we will continue to work with Border Patrol, H.S.I., and other law enforcement partners to aggressively prosecute these cases.”
The investigation in this case was conducted by Homeland Security Investigations. The prosecution was handled by Liza M. Granoff and Matthew C. Cassell, Assistant U.S. Attorneys, District of Arizona, Tucson.
Alabama Physician Pleads Guilty to Drug Distribution Charges for Prescription of OpioidsRead the Press Release
BIRMINGHAM, Ala. – A family medicine physician pleaded guilty today of drug distribution charges arising out of her prescription of opioid drugs from a medical clinic she operated in Alabama.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Jay E. Town of the Northern District of Alabama, Special Agent in Charge Derrick L. Jackson for the Office of Inspector General of the U.S. Department of Health and Human Services and Special Agent in Charge Brad L. Byerley of the Drug Enforcement Administration’s New Orleans Field Division made the announcement.
Celia Lloyd-Turney (Turney), M.D., 66, of Toney, Alabama, who operated Choice Medicine Clinic, pleaded guilty to one count of unlawful distribution of controlled substances. Sentencing has been scheduled for June 8, 2020 before U.S. District Judge Liles C. Burke of the Northern District of Alabama.
"Turney operated a family medicine clinic, mass-prescribing opioids without medical justification and taking advantage of patients, many of whom are addicted to opioids, with no regard to the larger pain brought to those individuals, families and communities,” Town said. “After the government had rested its case, and faced with the mountain of evidence presented against her, Dr. Turney didn’t wait for the verdict. She pleaded guilty, which is the strongest form of proof in our system. I am grateful to the trial team, Main Justice Criminal Fraud Section, Criminal Division AAG Brian Benczkowski, and the entire ARPO Strike Force team for their efforts in this case. The citizens of Alabama are safer as a result and the message is clear to medical providers who over-prescribe opioids: the white coat is no shield to federal prosecution.”
"Prescription drug abuse remains a significant problem in this country that destroys countless lives. DEA is fully committed to the pursuit of any individual who abandons their oath as a medical practitioner,” DEA Special Agent in Charge Brad L. Byerley said. “DEA will continue to work with all of our law enforcement partners, the medical community and the public to identify and stop those responsible for endangering lives in our communities and bring them to justice.”
The plea came after a trial while the jury was deliberating, but before they reached a verdict. At trial, evidence showed that from 2015 to 2017, Turney wrote multiple prescriptions for controlled substances to purported patients who were actively abusing other drugs, suffering from addiction, and selling the pills.
This case was investigated by HHS-OIG and the DEA, with the assistance of the Huntsville, Alabama Police Department. Trial Attorneys Louis Manzo and Ann Weber Langely of the Criminal Division’s Fraud Section and Assistant U.S. Attorney J.B. Ward of the Northern District of Alabama 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.
The Fraud Section leads the Appalachian Regional Prescription Opioid (ARPO) Strike Force. Since its inception in October 2018, the ARPO Strike Force, which operates in 10 districts, has charged more than 70 defendants who are collectively responsible for distributing more than 40 million pills.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Alabama Physician Pleads Guilty to Drug Distribution Charges for Prescription of OpioidsRead the Press Release
A family medicine physician pleaded guilty today of drug distribution charges arising out of her prescription of opioid drugs from a medical clinic she operated in Alabama.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Jay E. Town of the Northern Distrcit of Alabama, Special Agent in Charge Derrick L. Jackson for the Office of Inspector General of the U.S. Department of Health and Human Services and Special Agent in Charge Brad L. Byerley of the Drug Enforcement Administration’s (DEA) New Orleans Field Division made the announcement.
Celia Lloyd-Turney (Turney), M.D., 66, of Toney, Alabama, who operated Choice Medicine Clinic, pleaded guilty to one count of unlawful distribution of controlled substances. Sentencing has been scheduled for June 8, 2020, before U.S. District Judge Liles C. Burke of the Northern District of Alabama.
The plea came after a trial while the jury was deliberating, but before they reached a verdict. At trial, evidence showed that from 2015 to 2017, Turney wrote multiple prescriptions for controlled substances to purported patients who were actively abusing other drugs, suffering from addiction, and selling the pills.
This case was investigated by HHS-OIG and the DEA, with the assistance of the Huntsville, Alabama Police Department. Trial Attorneys Louis Manzo and Ann Weber Langely of the Criminal Division’s Fraud Section and Assistant U.S. Attorney J.B. Ward of the Northern District of Alabama 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.
The Fraud Section leads the Appalachian Regional Prescription Opioid (ARPO) Strike Force. Since its inception in October 2018, the ARPO Strike Force, which operates in 10 districts, has charged more than 70 defendants who are collectively responsible for distributing more than 40 million pills.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Airbus Agrees to Pay over $3.9 Billion in Global Penalties to Resolve Foreign Bribery and ITAR CaseRead the Press Release
Airbus SE (Airbus or the Company), a global provider of civilian and military aircraft based in France, has agreed to pay combined penalties of more than $3.9 billion to resolve foreign bribery charges with authorities in the United States, France and the United Kingdom arising out of the Company’s scheme to use third-party business partners to bribe government officials, as well as non-governmental airline executives, around the world and to resolve the Company’s violation of the Arms Export Control Act (AECA) and its implementing regulations, the International Traffic in Arms Regulations (ITAR), in the United States. This is the largest global foreign bribery resolution to date.
Airbus entered into a deferred prosecution agreement with the department in connection with a criminal information filed on Jan. 28, 2020 in the District of Columbia charging the Company with conspiracy to violate the anti-bribery provision of the Foreign Corrupt Practices Act (FCPA) and conspiracy to violate the AECA and its implementing regulations, the ITAR. The FCPA charge arose out of Airbus’s scheme to offer and pay bribes to foreign officials, including Chinese officials, in order to obtain and retain business, including contracts to sell aircraft. The AECA charge stems from Airbus’s willful failure to disclose political contributions, commissions or fees to the U.S. government, as required under the ITAR, in connection with the sale or export of defense articles and defense services to the Armed Forces of a foreign country or international organization. The case is assigned to U.S. District Judge Thomas F. Hogan of the District of Columbia.
“Airbus engaged in a multi-year and massive scheme to corruptly enhance its business interests by paying bribes in China and other countries and concealing those bribes,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “This coordinated resolution was possible thanks to the dedicated efforts of our foreign partners at the Serious Fraud Office in the United Kingdom and the PNF in France. The Department will continue to work aggressively with our partners across the globe to root out corruption, particularly corruption that harms American interests.”
“International corruption involving sensitive U.S. defense technology presents a particularly dangerous combination. Today’s announcement demonstrates the Department’s continuing commitment to ensuring that those who violate our export control laws are held to account,” said Principal Deputy Assistant Attorney General David P. Burns of the Justice Department’s National Security Division (NSD). “The resolution, however, also reflects the significant benefits available under NSD’s revised voluntary self-disclosure policy for companies that choose to self-report export violations, cooperate, and remediate as to those violations, even where there are aggravating circumstances. We hope other companies will make the same decision as Airbus to report potential criminal export violations timely and directly to NSD so that they too can avail themselves of the policy’s benefits.”
“Today, Airbus has admitted to a years-long campaign of corruption around the world, said U.S. Attorney Jessie K. Liu of the District of Columbia. “Through bribes, Airbus allowed rampant corruption to invade the U.S. system. Additionally, Airbus falsely reported information about their conduct to the U.S. government for more than five years in order to gain valuable licenses to export U.S. military technology. This case exemplifies the ability of our prosecutors and law enforcement to work with our foreign counterparts to ensure that corruption around the world is prevented and punished at the highest levels.”
“Airbus SE, the second largest Aerospace company world-wide, engaged in a systematic and deliberate conspiracy, that knowingly and willfully violated U.S. fraud and export laws,” said Special Agent in Charge Peter C. Fitzhugh of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) New York. “Airbus’s fraud and bribery in commercial aircraft transactions strengthened corrupt airlines and bad actors worldwide, at the expense of straightforward enterprises. Additionally, the bribery of government officials, specifically those involved in the procurement of U.S. military technology, posed a national security threat to both the U.S. and its allies. The global threats facing the U.S. have never been greater than they are today, and HSI New York is committed to working with our federal and international partners to assure sensitive U.S. technologies are not unlawfully and fraudulently acquired. As this investigation reflects, national security continues to be a top priority not just for Department of Homeland Security, but for HSI New York.”
The Company’s payment to the United States will be $527 million for the FCPA and ITAR violations, and an additional 50 million Euros (approximately $55 million) as part of a civil forfeiture agreement for the ITAR-related conduct, and the department will credit a portion of the amount the Company pays to the Parquet National Financier (PNF) in France under the Company’s agreement with the PNF. In addition, the Company has agreed to pay a $10 million penalty to the U.S. Department of State’s Directorate of Defense Trade Controls (DDTC), of which the department is crediting $5 million. In related proceedings, the Company settled with the PNF in France over bribes paid to government officials and non-governmental airline executives in China and multiple other countries and the Company has agreed to pay more than 2 billion Euros (more than approximately $2.29 billion) pursuant to the PNF agreement. As part of this coordinated global resolution, the Company also entered into a deferred prosecution agreement with the United Kingdom’s Serious Fraud Office (SFO) over bribes paid in Malaysia, Sri Lanka, Taiwan, Indonesia and Ghana, and the Company has agreed to pay approximately 990 million Euros equivalent (approximately $1.09 billion) pursuant to the SFO agreement. The PNF and SFO had investigated the Company as part of a Joint Investigative Team.
According to admissions and court documents, beginning in at least 2008 and continuing until at least 2015, Airbus engaged in and facilitated a scheme to offer and pay bribes to decision makers and other influencers, including to foreign officials, in order to obtain improper business advantages and to win business from both privately owned enterprises and entities that were state-owned and state-controlled. In furtherance of the corrupt bribery scheme, Airbus employees and agents, among other things, sent emails while located in the United States and participated in and provided luxury travel to foreign officials within the United States.
The admissions and court documents establish that in order to conceal and to facilitate the bribery scheme, Airbus engaged certain business partners, in part, to assist in the bribery scheme. Between approximately 2013 and 2015, Airbus engaged a business partner in China and knowingly and willfully conspired to make payments to the business partner that were intended to be used as bribes to government officials in China in connection with the approval of certain agreements in China associated with the purchase and sale of Airbus aircraft to state-owned and state-controlled airlines in China. In order to conceal the payments and to conceal its engagement of the business partner in China, Airbus did not pay the business partner directly but instead made payments to a bank account in Hong Kong in the name of a company controlled by another business partner.
Pursuant to the AECA and ITAR, the DDTC regulates the export and import of U.S. defense articles and defense services, and prohibits their export overseas without the requisite licensing and approval of the DDTC. According to admissions and court documents, between December 2011 and December 2016, Airbus filed numerous applications for the export of defense articles and defense services to foreign armed forces. As part of its applications, Airbus was required under Part 130 of the ITAR to provide certain information related to political contributions, fees or commissions paid in connection with the sale of defense articles or defense services. The admissions and court documents reveal, however, that the Company engaged in a criminal conspiracy to knowingly and willfully violate the AECA and ITAR, by failing to provide DDTC with accurate information related to commissions paid by Airbus to third-party brokers who were hired to solicit, promote or otherwise secure the sale of defense articles and defense services to foreign armed forces.
As part of the deferred prosecution agreement with the department, Airbus has agreed to continue to cooperate with the department in any ongoing investigations and prosecutions relating to the conduct, including of individuals, and to enhance its compliance program.
For the FCPA-related conduct, the department reached this resolution with Airbus based on a number of factors, including the Company’s cooperation and remediation. In addition, for the FCPA-related conduct, the U.S. resolution recognizes the strength of France’s and the United Kingdom’s interests over the Company’s corruption-related conduct, as well as the compelling equities of France and the United Kingdom to vindicate their respective interests as those countries deem appropriate, and the department has taken into account these countries’ determination of the appropriate resolution into all aspects of the U.S. resolution.
With respect to the AECA and ITAR-related conduct, the department reached this resolution with Airbus based on the voluntary and timely nature of its disclosure to the department as well as the Company’s cooperation and remediation.
HSI’s New York Field Office Counter Proliferation Investigations Group is investigating the case. Deputy Chief Christopher Cestaro, Assistant Chief Vanessa Sisti and Trial Attorney Elina A. Rubin Smith of the Criminal Division’s Fraud Section, Deputy Chief Elizabeth L. D. Cannon and Trial Attorney David Lim of the National Security Division’s Counterintelligence and Export Control Section, and Assistant U.S. Attorneys Michelle Zamarin, Gregg Maisel, David Kent and Karen Seifert of the District of Columbia are prosecuting the case. The Criminal Division’s Office of International Affairs provided assistance.
The Department of Justice acknowledges and expresses its appreciation of the significant assistance provided by France’s Parquet National Financier and the UK’s Serious Fraud Office.
The Fraud Section is responsible for all investigations and prosecutions of the Foreign Corrupt Practices Act, and conducts other investigations into sophisticated economic crimes. The Counterintelligence and Export Control Section supervises the investigation and prosecution of cases involving the export of military and strategic commodities and technology, including cases under the AECA and ITAR.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Airbus Agrees to Pay over $3.9 Billion in Global Penalties to Resolve Foreign Bribery and ITAR CaseRead the Press Release
WASHINGTON - Airbus SE (Airbus or the Company), a global provider of civilian and military aircraft based in France, has agreed to pay combined penalties of more than $3.9 billion to resolve foreign bribery charges with authorities in the United States, France and the United Kingdom arising out of the Company’s scheme to use third-party business partners to bribe government officials, as well as non-governmental airline executives, around the world and to resolve the Company’s violation of the Arms Export Control Act (“AECA”) and its implementing regulations, the International Traffic in Arms Regulations (“ITAR”), in the United States. This is the largest global foreign bribery resolution to date.
Airbus entered into a deferred prosecution agreement with the department in connection with a criminal information filed on Jan. 28, 2020 in the District of Columbia charging the Company with conspiracy to violate the anti-bribery provision of the Foreign Corrupt Practices Act (“FCPA”) and conspiracy to violate the AECA and its implementing regulations, the ITAR. The FCPA charge arose out of Airbus’s scheme to offer and pay bribes to foreign officials, including Chinese officials, in order to obtain and retain business, including contracts to sell aircraft. The AECA charge stems from Airbus’s willful failure to disclose political contributions, commissions or fees to the U.S. government, as required under the ITAR, in connection with the sale or export of defense articles and defense services to the Armed Forces of a foreign country or international organization. The case is assigned to U.S. District Judge Thomas F. Hogan of the District of Columbia.
“Airbus engaged in a multi-year and massive scheme to corruptly enhance its business interests by paying bribes in China and other countries and concealing those bribes,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “This coordinated resolution was possible thanks to the dedicated efforts of our foreign partners at the Serious Fraud Office in the United Kingdom and the PNF in France. The Department will continue to work aggressively with our partners across the globe to root out corruption, particularly corruption that harms American interests.”
“International corruption involving sensitive U.S. defense technology presents a particularly dangerous combination. Today’s announcement demonstrates the department’s continuing commitment to ensuring that those who violate our export control laws are held to account,” said Principal Deputy Assistant Attorney General David P. Burns of the Justice Department’s National Security Division. “The resolution, however, also reflects the significant benefits available under NSD’s revised voluntary self-disclosure policy for companies that choose to self-report export violations, cooperate, and remediate as to those violations, even where there are aggravating circumstances. We hope other companies will make the same decision as Airbus to report potential criminal export violations timely and directly to NSD so that they too can avail themselves of the policy’s benefits.”
“Today, Airbus has admitted to a years-long campaign of corruption around the world,” said U.S. Attorney Jessie K. Liu of the District of Columbia. “Through bribes, Airbus allowed rampant corruption to invade the U.S. system. Additionally, Airbus falsely reported information about their conduct to the U.S. government for more than five years in order to gain valuable licenses to export U.S. military technology. This case exemplifies the ability of our prosecutors and law enforcement to work with our foreign counterparts to ensure that corruption around the world is prevented and punished at the highest levels.”
“Airbus SE, the second largest Aerospace company world-wide, engaged in a systematic and deliberate conspiracy, that knowingly and willfully violated U.S. fraud and export laws,” said Special Agent in Charge Peter C. Fitzhugh of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) New York. “Airbus’s fraud and bribery in commercial aircraft transactions strengthened corrupt airlines and bad actors worldwide, at the expense of straightforward enterprises. Additionally, the bribery of government officials, specifically those involved in the procurement of U.S. military technology, posed a national security threat to both the U.S. and its allies. The global threats facing the U.S. have never been greater than they are today, and HSI New York is committed to working with our federal and international partners to assure sensitive U.S. technologies are not unlawfully and fraudulently acquired. As this investigation reflects, national security continues to be a top priority not just for Department of Homeland Security, but for HSI New York.”
The Company’s payment to the United States will be $527 million for the FCPA and ITAR violations, and an additional €50 million (approximately $55 million) as part of a civil forfeiture agreement for the ITAR-related conduct, and the department will credit a portion of the amount the Company pays to the Parquet National Financier (PNF) in France under the Company’s agreement with the PNF. In addition, the Company has agreed to pay a $10 million penalty to the U.S. Department of State’s Directorate of Defense Trade Controls (DDTC), of which the department is crediting $5 million. In related proceedings, the Company settled with the PNF in France over bribes paid to government officials and non-governmental airline executives in China and multiple other countries and the Company has agreed to pay more than 2 billion Euros (more than approximately $2.29 billion) pursuant to the PNF agreement. As part of this coordinated global resolution, the Company also entered into a deferred prosecution agreement with the United Kingdom’s Serious Fraud Office (SFO) over bribes paid in Malaysia, Sri Lanka, Taiwan, Indonesia and Ghana, and the Company has agreed to pay approximately 990 million Euros equivalent (approximately $1.09 billion) pursuant to the SFO agreement. The PNF and SFO had investigated the Company as part of a Joint Investigative Team.
According to admissions and court documents, beginning in at least 2008 and continuing until at least 2015, Airbus engaged in and facilitated a scheme to offer and pay bribes to decision makers and other influencers, including to foreign officials, in order to obtain improper business advantages and to win business from both privately owned enterprises and entities that were state-owned and state-controlled. In furtherance of the corrupt bribery scheme, Airbus employees and agents, among other things, sent emails while located in the United States and participated in and provided luxury travel to foreign officials within the United States.
The admissions and court documents establish that in order to conceal and to facilitate the bribery scheme, Airbus engaged certain business partners, in part, to assist in the bribery scheme. Between approximately 2013 and 2015, Airbus engaged a business partner in China and knowingly and willfully conspired to make payments to the business partner that were intended to be used as bribes to government officials in China in connection with the approval of certain agreements in China associated with the purchase and sale of Airbus aircraft to state-owned and state-controlled airlines in China. In order to conceal the payments and to conceal its engagement of the business partner in China, Airbus did not pay the business partner directly but instead made payments to a bank account in Hong Kong in the name of a company controlled by another business partner.
Pursuant to the AECA and ITAR, the DDTC regulates the export and import of U.S. defense articles and defense services, and prohibits its export overseas without the requisite licensing and approval of the DDTC. According to admissions and court documents, between December 2011 and December 2016, Airbus filed numerous applications for the export of defense articles and defense services to foreign armed forces. As part of its applications, Airbus was required under Part 130 of the ITAR to provide certain information related to political contributions, fees or commissions paid in connection with the sale of defense articles or defense services. The admissions and court documents reveal, however, that the Company engaged in a criminal conspiracy to knowingly and willfully violate the AECA and ITAR, by failing to provide DDTC with accurate information related to commissions paid by Airbus to third-party brokers who were hired to solicit, promote or otherwise secure the sale of defense articles and defense services to foreign armed forces.
As part of the deferred prosecution agreement with the department, Airbus has agreed to continue to cooperate with the department in any ongoing investigations and prosecutions relating to the conduct, including of individuals, and to enhance its compliance program.
For the FCPA-related conduct, the department reached this resolution with Airbus based on a number of factors, including the Company’s cooperation and remediation. In addition, for the FCPA-related conduct, the U.S. resolution recognizes the strength of France’s and the United Kingdom’s interests over the Company’s corruption-related conduct, as well as the compelling equities of France and the United Kingdom to vindicate their respective interests as those countries deem appropriate, and the department has taken into account these countries’ determination of the appropriate resolution into all aspects of the U.S. resolution.
With respect to the AECA and ITAR-related conduct, the department reached this resolution with Airbus based on the voluntary and timely nature of its disclosure to the department as well as the Company’s cooperation and remediation.
HSI’s New York Field Office Counter Proliferation Investigations Group is investigating the case. Deputy Chief Christopher Cestaro, Assistant Chief Vanessa Sisti and Trial Attorney Elina A. Rubin Smith of the Criminal Division’s Fraud Section, Deputy Chief Elizabeth L. D. Cannon and Trial Attorney David Lim of the National Security Division’s Counterintelligence and Export Control Section, and Assistant U.S. Attorneys Michelle Zamarin, Gregg Maisel, David Kent, Karen Seifert and Zia Faruqui of the District of Columbia are prosecuting the case. The Criminal Division’s Office of International Affairs provided assistance.
The Department of Justice acknowledges and expresses its appreciation of the significant assistance provided by France’s Parquet National Financier and the UK’s Serious Fraud Office.
The Fraud Section is responsible for all investigations and prosecutions of the Foreign Corrupt Practices Act, and conducts other investigations into sophisticated economic crimes. The Counterintelligence and Export Control Section supervises the investigation and prosecution of cases involving the export of military and strategic commodities and technology, including cases under the AECA and ITAR.
Air Force Colonel Sentenced to Prison for Child PornographyRead the Press Release
ALEXANDRIA, Va. – An active duty Air Force colonel was sentenced today to five years in prison for receiving images of child sexual abuse.
According to court documents and admissions made in connection to his plea agreement, Colonel Mark Visconi, 48, of Fairfax, received and attempted to receive child pornography through the Internet. Visconi used an online bulletin board dedicated to the sharing of child pornography that operated on the anonymous Tor network to download child pornography. A forensic review of his laptop showed that Visconi downloaded and viewed numerous child pornographic images and videos.
Visconi also used his cell phone to create hundreds of pictures focused on the clothed buttocks of minor girls. In a smaller subset of these pictures, Visconi appeared to take “upskirting” images of some of the girls. It does not appear that any of the girls were aware that pictures were being taken.
In addition to his prison sentence, Visconi was sentenced to 15 years of supervised release, ordered to pay restitution to the identified victim, and ordered to complete 50 hours of community service by speaking or writing about his experience and conviction.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division; and Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., made the announcement after sentencing by Senior U.S. District Judge T.S. Ellis III. Assistant U.S. Attorney Whitney Russell and Special Assistant U.S. Attorney Gwendelynn E. Bills prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-258.
Air Force Colonel Sentenced for Receiving Child PornographyRead the Press Release
An Air Force colonel was sentenced today to five years in prison followed by 15 years of supervised release for receiving child pornography.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia made the announcement.
According to admissions made in connection with his plea agreement, between November 2015 and June 2016, Mark Visconi, 48, received and attempted to receive child pornography using the Internet. Visconi used an online bulletin board dedicated to the sharing of child pornography that operated on the anonymous Tor network to download child pornography. A forensic review of his laptop showed that Visconi downloaded and viewed numerous child pornography images and videos. Visconi previously pleaded guilty on Oct. 4, 2019.
Visconi also admitted to using his cell phone to create hundreds of apparently surreptitious pictures that were focused on the clothed buttocks of minor girls, including images that appear to have been taken with a camera angled upward underneath a minor’s skirt or loose shorts so as to depict or attempt to depict the minor’s underwear.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Trial Attorney Gwendelynn Bills of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Whitney Russell of the Eastern District of Virginia are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
35 Years Imprisonment for Nine Defendants Guilty in Methamphetamine, Cocaine Distribution Ring in Calcasieu and Beauregard ParishesRead the Press Release
LAKE CHARLES, La. – Nine defendants charged with various federal drug offenses linked to a large methamphetamine and cocaine distribution ring based in Calcasieu and Beauregard parishes have been sentenced to federal prison for their crimes, announced David C. Joseph, the U.S. Attorney for the Western District of Louisiana. U.S. District Judge Donald E. Walter handed down sentences for nine defendants, with the final sentencings occurring on Monday, January 27, 2020, at the federal courthouse in Lake Charles.
On January 27, 2020:
Antonio Montero, 57, a Cuban national, of Lake Charles, was sentenced to 10 years in prison after pleading guilty on September 24, 2019, to one count of conspiracy to distribute and possess with intent to distribute methamphetamine;
Felix Perez, 56, a citizen of Cuba, was sentenced to five years in prison after pleading guilty on September 25, 2019, to one count of possession with intent to distribute controlled substances (cocaine); and
Lionel Peschier, 49, of Sulphur, Louisiana, was sentenced to three years in prison after pleading guilty on September 24, 2019, to one count of attempted distribution of controlled substances (methamphetamine).
On December 16, 2019:
Julio Elizagarate, 68, a Cuban national, of Lake Charles, was sentenced to six years in prison after pleading guilty on September 5, 2019, to one count of conspiracy to distribute and possess with intent to distribute methamphetamine;
Michael Miers, 57, of DeRidder, Louisiana, was sentenced to 40 months in prison after pleading guilty on February 13, 2019, to one count of conspiracy to distribute and possess with intent to distribute cocaine;
Zetherneal Elizagarate, 57, of Lake Charles, was sentenced to five years of probation after pleading guilty on April 3, 2019, to one count of conspiracy to distribute and possess with intent to distribute methamphetamine;
Juan Gonzalez, 67, a Cuban national, of Leesville, Louisiana, was sentenced to 71 months in prison after pleading guilty on July 3, 2019, to one count of conspiracy to distribute and possess with intent to distribute cocaine;
Gary S. Byrd, 48, was sentenced to five years of probation after pleading guilty on August 15, 2019, to one count of distribution of controlled substances (methamphetamine); and
Angie Perez, 49, was sentenced to two years in prison after pleading guilty on September 13, 2019, to one count of distribution of controlled substances (methamphetamine).
From June 2017 through May 2018, law enforcement agents used controlled purchases and court-authorized wire taps to investigate Antonio Montero and three other Cuban nationals who were dealing large amounts of methamphetamine and cocaine in southwest Louisiana. Law enforcement officers learned of multiple stash houses and identified Antonio Montero and Juan Gonzalez as suppliers of methamphetamine and Michael Miers as a supplier of multiple kilos of cocaine. Five search warrants were executed and agents seized multiple kilograms of cocaine and methamphetamine.
When Miers was arrested at his residence on July 31, 2018, agents found $40,300 in cash proceeds from narcotics transactions, 5,343 grams of cocaine and 3,338 grams of methamphetamine. Miers admitted that he obtained the 3,338 grams of methamphetamine from Julio Elizagarate and Antonio Montero in trade for the same amount of cocaine.
Homeland Security Investigations, DEA, Louisiana State Police, Calcasieu Parish District Attorney’s Office, Calcasieu Parish Sheriff’s Office, Combined Anti-Drug Task Force, Beauregard Sheriff’s Office, Lake Charles Police Department, Iowa Police Department, and DeRidder Police Department participated in the investigation. Assistant U.S. Attorney Robert C. Abendroth is prosecuted the case.
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26-year-old sentenced to 10 years in prison for molesting 6-year-old child while residing on JBLMRead the Press Release
Tacoma, WA – A 26-year-old man was sentenced today in U.S. District Court in Tacoma to ten years in prison and lifetime supervised release for abusive sexual contact of a child, announced U.S. Attorney Brian T. Moran. CHARLES EVAN CRAWFORD was 22-years-old when he sexually molested a 6-year-old child who had been left in his care, while other adults ran errands on the base. At the sentencing hearing, U.S. District Judge Ronald B. Leighton said, “It is imperative that we in the criminal justice system offer protection and stability against future harm. I think Mr. Crawford is a threat.”
According to the stipulated facts admitted at the bench trial, the 6-year-0ld victim and other children were at the duplex on Joint Base Lewis McChord (JBLM) on June 16, 2016, when CRAWFORD’s mother left him in charge while she ran to the grocery store and picked up his step-father from his duty station.
During the period of time CRAWFORD was responsible for supervising the children, he took one 6-year-old child into the bathroom and molested the child. The victim and other children reported the assault to other adults within hours of the sexual contact. The child was forensically interviewed at Mary Bridge Children’s Hospital. The FBI and the Army Criminal Investigative Division (CID) conducted a joint investigation including the retrieval of DNA evidence. Because the assault occurred on an area of exclusive federal jurisdiction, the case was prosecuted in federal court.
CRAWFORD was arrested on June 17, 2016, and formally charged in federal court on June 20, 2016. CRAWFORD was convicted at a bench trial on July 8, 2019. Following his prison term, CRAWFORD will be required to register as a sex offender.
The case was investigated by FBI and Army CID. The case is being prosecuted by Assistant United States Attorneys Grady Leupold and Marie Dalton.
30 January 2020
Youngest Member of Murderous Family Conspiracy SentencedRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to 52 years in prison for his role in multiple carjackings, including one that resulted in a death.
According to court documents, Philip Friend, 36, was the youngest member of an entire family (a mother and her three sons; plus a cousin and some associates), who created a plan to steal a semi-trailer truck from an interstate trucker. They planned to travel to McAllen, Texas, where they would pick up a load of marijuana to distribute on the East Coast. In March 1999, the group attempted to hijack the truck of their first victim, Soren Cornforth, who they found sleeping in his truck as he waited to deliver potatoes from Idaho to a produce company in Richmond. When Cornforth strongly resisted, the Friends shot and killed him without taking his truck. About six weeks later, the Friends hijacked another independent trucker, John Cummings, stealing his rig. Philip Friend beat Cummings so viciously that he was maimed and lost his ability to work as a trucker. Two weeks later, in April 1999, the Friend clan carjacked their third victim, an independent trucker named Sam Lam, murdering him and taking his rig to Texas in search of marijuana.
Friend, who was just shy of 16 years old during this killing spree, originally pleaded guilty in 2000. Federal sentencing guidelines called for a mandatory life sentence, which he received. Years later, Friend’s case was sent back to the district court for resentencing after the Supreme Court held that a mandatory life sentence for a juvenile offender was unconstitutional.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and David W. Archey, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by Senior U.S. District Judge Henry E. Hudson. Assistant U.S. Attorney Brian R. Hood prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:99-cr-201.
Woman from Albuquerque sentenced to 39 months in federal prison for conspiracy, bank fraud, identity theft, and possession of stolen mailRead the Press Release
ALBUQUERQUE, N.M – Christina Torrez, 45, of Albuquerque, New Mexico, was sentenced today in federal court in Albuquerque to 39 months in prison for conspiracy, bank fraud, aggravated identity theft, and possession of stolen mail.
Torrez previously pleaded guilty to these offenses on July 19, 2019. According to Torrez’s plea agreement, she participated in a scheme with her husband and co-defendant, Jose Torrez, to steal mail containing credit cards, debit cards, checks, and personal information that could be used to commit more theft. Torrez and her husband accessed bank accounts using stolen identities and withdrew money from the accounts. Torrez and her husband also used stolen credit and debit cards to buy merchandise from various stores totaling more than $10,000. They also cashed checks from multiple banks and credit unions using false identification. During the scheme, Torrez and her husband also obtained United States Postal Service uniforms, badges, and keys to assist them in stealing mail.
Jose Torrez is currently in custody awaiting sentencing.
The United States Postal Inspection Service investigated this case with assistance from the Albuquerque Police Department, the Sandia Tribal Police, and the Laguna Pueblo Police Department. Assistant U.S Attorneys Kimberly A. Brawley and Nicholas J. Ganjei are prosecuting the case.