Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Thursday 12 December 2019
Former West Virginia Correctional Officer Sentenced to Federal Prison for Drug DistributionRead the Press Release
CHARLESTON, W.Va. – A former West Virginia correctional officer, John Edward Roach II, was sentenced to federal prison today for a drug crime, announced United States Attorney Mike Stuart. John Roach, 47, of St. Albans, was sentenced to 46 months in prison for possession with intent to distribute methamphetamine.
“A disgraceful breach of public trust,” said United States Attorney Mike Stuart. “As a long-time correctional officer, Roach knew firsthand the dangers drugs pose in the prisons and ignored them. Those who violate the public’s trust will be held accountable. If I’ve said it once, I’ve said it a million times, there’s no such thing as a little bit of public corruption.”
In early April 2019, an inmate at the South Central Regional Jail paid Roach $2,000 to smuggle contraband into the jail. Law enforcement then arranged a sting operation. On April 11, 2019, Roach met with an undercover agent and received a $2,000 payment and four ounces of methamphetamine. Roach was quickly arrested before he could transport the methamphetamine to the jail.
The Drug Enforcement Administration, the Kanawha County Sheriff’s Department, the Putnam County Sheriff’s Department, the St. Albans Police Department and the Boone County Sheriff’s Department conducted the investigation. United States District Court Judge Joseph Goodwin imposed the sentence. Former Assistant United States Attorney Drew Inman and Assistant United States Attorney Kathleen Robeson handled the prosecution.
Follow us on Twitter: SDWVNews and USAttyStuart
###
Former West Covina Man Charged with Selling Bogus Memorabilia Containing Phony Autographs of Sports Stars, CelebritiesRead the Press Release
SANTA ANA, California – A former Los Angeles County resident now living in Mexico faces federal criminal charges alleging he sold millions of dollars of memorabilia that contained the forged signatures of sports stars, musicians, actors, and other celebrities.
Anthony J. Tremayne, 51, formerly of West Covina but who now lives in Tijuana, Mexico, is charged in a 19-count federal grand jury indictment unsealed today.
Tremayne, who was arrested on a warrant at the San Ysidro border crossing, and made a court appearance today in United States District Court in San Diego.
According to the indictment, beginning in 2010 and continuing until this month, Tremayne operated businesses – including Tremayne Enterprises and Timeless Treasures – that sold memorabilia that contained the forged signatures of celebrities and sports stars. Tremayne allegedly hired and paid other people to forge the signatures. The phony goods were sold on the Internet and were shipped via U.S. mail, FedEx, or other private or commercial interstate carriers, according to the indictment. Tremayne allegedly held out that the forged signatures were real.
For example, in November 2013, Tremayne allegedly met with a buyer in Ladera Ranch. During that meeting, he allegedly sold for $100,000 approximately 100 memorabilia items with forged signatures, including “Star Wars” Darth Vader and Imperial storm trooper helmets that had forged signatures from actors in the movie series, as well as posters with forged signatures of actors from the “Hunger Games” and “Twilight” movie series.
In November 2019, Tremayne allegedly shipped to an FBI undercover buyer a “Keeping Up with the Kardashians” photograph that had forged signatures of three of the television show’s personalities.
As a result of the scheme, Tremayne and his memorabilia business sold more than $1 million in memorabilia items, according to the indictment. Tremayne has been charged with 13 counts of wire fraud, three counts of mail fraud, and three counts of aggravated identity theft.
The indictment also alleges that Tremayne had moved to Mexico to avoid paying approximately $1.4 million in taxes that he owed to the U.S. government.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted, Tremayne would face a statutory maximum sentence of 20 years in federal prison for each fraud count and two years in federal prison for each aggravated identity theft count.
The FBI investigated this matter.
Assistant United States Attorney Charles E. Pell of the Santa Ana Branch Office is prosecuting this case.
Former Vice President of Teamsters Labor Union Pleads Guilty to BriberyRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that JOHN ULRICH, who previously served as the vice president of the International Brotherhood of Teamsters Local 812 (the “Union”) and as a trustee of the Union’s employee health benefit plan (the “Plan”), pled guilty today to soliciting tens of thousands of dollars in bribe payments from an executive with the Plan’s Third Party Administrator (the “TPA-1”), in exchange for using his influence to ensure the Union’s continued retention of TPA-1 as its Plan administrator. ULRICH pled guilty before United States District Judge Analisa Torres.
U.S. Attorney Geoffrey S. Berman said: “As he admitted in court today, John Ulrich betrayed the trust of the Union members who elected him in order to line his pockets with bribe money. This Office is committed to prosecuting corrupt union officials who abuse their positions of trust for their own financial benefit.”
According to the allegations in the Indictment, other public filings, and statements made during the plea proceeding:
The Union has more than approximately 3,000 members, and represents workers in the beverage industry throughout the New York metropolitan area. The Union’s members are covered by the Plan, which provides, among other things, life insurance, health insurance, dental, vision, and disability benefits to Union members and their families. As the Plan’s third-party administrator, TPA-1 processed health insurance claims for participants in the Plan. At all times relevant to the Indictment, ULRICH was a member and officer of the Union and a trustee of the Plan.
In or about 2013, ULRICH solicited bribe payments from an executive with TPA-1 (“Executive-1”) of $5,000 per quarter in exchange for using his influence to maintain TPA-1 as the Plan’s third-party administrator. Before ULRICH solicited these bribes, the Plan had issued a request for proposals for a new third-party administrator, and TPA-1 was at risk of losing the Plan’s business. ULRICH told Executive-1 that ULRICH would use his influence with the Union to ensure that the Plan continued to use TPA-1 to administer the Union’s health care plan. Executive-1 agreed to make $5,000 quarterly payments to ULRICH, and began doing so. Subsequently, despite receiving multiple bids from other third-party administrators, the Plan then continued to work with TPA-1.
In or about 2014, ULRICH demanded increased bribe payments from Executive-1. In part, ULRICH told Executive-1 that these increased bribe payments were needed for another trustee of the Plan, and Executive-1 began making such increased payments. On or about September 19, 2015, ULRICH again solicited additional bribe payments for this trustee.
After a special board meeting convened by the Plan in February 2016, ULRICH was terminated as vice president and trustee of the Union and Plan, respectively. In total, ULRICH demanded, and Executive-1 paid, tens of thousands in bribes before ULRICH was removed from office.
* * *
ULRICH, 48, of Newburgh, New York, pled guilty to one count of conspiracy to solicit and receive bribe payments to influence the operation of an employee benefit plan, which carries a maximum penalty of five years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
ULRICH is scheduled to be sentenced by Judge Torres on April 23, 2020, at 2:00 p.m.
Mr. Berman praised the Federal Bureau of Investigation, the U.S. Department of Labor Office of Inspector General, the U.S. Department of Labor Employee Benefits Security Administration, and the U.S. Department of Labor Office of Labor-Management Standards for their outstanding investigative work in this case.
This matter is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Eli J. Mark and Louis A. Pellegrino are in charge of the prosecution.
Former Richmond Hill police officer sentenced to federal prison for enticement of a minorRead the Press Release
SAVANNAH, GA: A former Richmond Hill police officer has been sentenced to 10 years in prison for luring teen girls to meet him for sex.
Jeffrey Allen Allmond Jr., 25, of Richmond Hill, who was convicted in June by a federal jury on one count of coercion and enticement of a minor, was sentenced to 10 years in prison by U.S. District Court Judge Lisa Godbey Wood, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Allmond also must serve 10 years on supervised release after completion of his prison term, and there is no parole in the federal system.
Evidence presented at trial revealed that Allmond, then a police officer, met two girls, ages 15 and 16, via the Tinder dating app. Allmond then communicated with the girls through Snapchat and arranged to pick them up in the middle of the night outside the gate of Fort Stewart, where the two lived. Allmond then drove the teens back to his apartment and performed sexual acts on both of them. Later that night, Allmond returned the girls near the Fort Stewart gate. Allmond continued communicating with the girls through Snapchat and met up with them twice more at his apartment where he performed sexual acts on them.
The Richmond Hill Police Department asked the Georgia Bureau of Investigation (GBI) to investigate the case and terminated Allmond after initial charges were filed. The U.S. Army Criminal Investigation Command (CID) provided assistance during the investigation.
“This predator disgraced his badge while victimizing the children of our military personnel,” said U.S. Attorney Christine. “His vile behavior earned hard time in the federal prison system, and should send a warning to others who would exploit our innocent citizens.”
“Nobody is above the law, and we salute the GBI, the Richmond Hill Police Department and Assistant U.S. Attorney Groover for doing the right thing by holding this individual accountable for his unconscionable acts,” said Christopher Grey, spokesman for the U.S. Army Criminal Investigation Command. “Our CID special agents, along with the Military Police, go to great lengths to protect and serve the Army community on our installations worldwide, and we sincerely appreciate the backup from our law enforcement partners outside of our gates.”
“This former officer took an oath to serve and protect the public. When someone with whom we have placed our trust violates that trust in this manner, children and the community are damaged,” said Vic Reynolds, Director of the Georgia Bureau of Investigations (GBI). “The GBI will continue to work with our law enforcement partners to ensure all people who seek to harm our children are held accountable.”
“The men and women of the Richmond Hill Police Department are proud to serve their community with distinction every day, and we are satisfied that the outcome of this case demonstrates our agency’s steadfast intent to hold accountable those who violate the law – no matter who they are,” said Richmond Hill Police Chief Mitch Shores.
Assistant U.S. Attorney Tania Groover prosecuted the case for the United States.
Former Officer Manager Pleads Guilty to Wire FraudRead the Press Release
Harrisonburg, VIRGINIA – The former officer manager of a Winchester-based company that provides safety services to construction companies, pleaded guilty yesterday in U.S. District Court in Harrisonburg for stealing more than $200,000 during her employment. United States Attorney Thomas T. Cullen and Virginia Attorney General Mark Herring made the announcement.
Amy Jo Hansen, 44, of Inwood, West Virginia, waived her right to be indicted and pleaded guilty yesterday to one count of wire fraud. At sentencing, Hansen faces up to twenty years in prison and a $250,000 fine.
“Unfortunately, theft by trusted employees is more common than most people realize,” U.S. Attorney Cullen stated today. “Where these type of embezzlement schemes involve the use of the mail, the internet, or other forms of electronic communication, they become federal crimes, and we will prosecute them.”
“So called ‘white collar’ crime is still crime and we will make sure that people who break the law like this are held accountable,” said Attorney General Herring.
According to court documents, Hansen was employed by Firstline Safety Management from 2001 until her termination in November 2018. During her tenure, Hansen worked as the office manager for more than 10 years. Her duties in that capacity included, but were not limited to, managing the office, ordering supplies, downloading credit card statements, coding purchasing for bookkeeping purposes, and sending invoices to another employee responsible for payroll and accounting.
At relevant times, Firstline utilized three access devices for the purchase of supplies and other work products. Hansen made numerous unauthorized, personal purchases on these devices. Initially, she submitted the credit card statements containing the unauthorized purchases to the company with the unauthorized purchases either miscoded to make them appear authorized or not coded at all.
Beginning in approximately January 2016, Hansen began altering credit card billing statements containing unauthorized purchases, using the edit function on Adobe software to modify the statements to falsely inflate charges from a vendor or create a nonexistent vendor charge, in order to cover up Hansen’s personal charges. The fraudulent charges increased throughout 2016, and by 2017 regularly involved unauthorized purchases of thousands of dollars a month.
The investigation of the case was conducted by the Office of the Virginia Attorney General. Assistant United States Attorney Ronald M. Huber is prosecuting the case for the United States.
Former Office Manager Indicted for Stealing Approximately $420,000 in Company FundsRead the Press Release
St. Louis, MO –Tammy Fox, 49, of Carrolton, Illinois, was indicted by a federal grand jury on two counts of wire fraud related to her former position as Office Manager of Explosive Professionals Midwest, Incorporated, also known as ExPro Midwest.
According to the Indictment, Fox served as the Office Manager for ExPro Midwest in St. Louis County, Missouri. From January, 2011 through February, 2018 Fox schemed to steal approximately $420,000 from the company. During that time, Fox issued approximately 215 unauthorized ExPro Midwest checks to herself, which she deposited into her personal bank account. Fox forged the signature of one of the owners of ExPro Midwest to those unauthorized checks. Fox spent the stolen funds on personal items and services such as clothing, automobile payments, rent payments, as well as making numerous cash withdrawals. Fox also issued unauthorized ExPro Midwest company checks to a close personal friend, and deposited those checks into her personal bank account as well. Fox also used the ExPro Midwest corporate credit card to make unauthorized purchases of personal items, such as airline tickets, general retail items, clothing, and sporting goods. As Office Manager, Fox caused the company to pay the monthly ExPro Midwest corporate credit card bills, knowing that her unauthorized personal charges were contained in the billings. In order to conceal her fraud scheme, Fox altered the company’s internal financial records which she then sent to the company’s outside accountants. Altogether, Fox’s fraud scheme netted her approximately $420,000 in funds stolen from ExPro Midwest.
If convicted, as to each charge Fox faces a maximum penalty of 20 years in prison and a $250,000 fine. Restitution is also mandatory.
In determining the actual sentence, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The Federal Bureau of Investigation is investigating this case. Assistant U.S. Attorney Hal Goldsmith is handling the case for the U.S. Attorney’s Office.
Former Moroccan Diplomat and Two Others Charged in White Plains Federal Court with Visa Fraud ConspiracyRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Todd J. Brown, Director of the U.S. Department of State’s Diplomatic Security Service (“DSS”), announced today that former Ambassador from the Permanent Mission of the Kingdom of Morocco to the United Nations (the “Moroccan Mission”) ABDESLAM JAIDI (“JAIDI”), his now ex-wife, MARIA LUISA ESTRELLA JAIDI (“ESTRELLA”), and ESTRELLA’s brother, RAMON SINGSON ESTRELLA (“SINGSON”) were charged in White Plains federal court with conspiring to defraud the United States, to make materially false statements, to commit visa fraud, and to induce aliens to illegally enter, come to, and remain in the United States. The charges stem from a scheme to bring domestic workers into the United States under fraudulently obtained diplomatic visas, only to then be exploited by JAIDI and ESTRELLA once they arrived. On March 13, 2019, ESTRELLA was arrested on a complaint and presented in White Plains federal court. Both JAIDI and SINGSON remain at large.
U.S. Attorney Geoffrey S. Berman stated: “Today’s charges underscore that no one is above the law. The conspiracy alleged to have occurred here was intentionally designed to circumvent important protections against exploitation for domestic workers brought to the United States. We will not tolerate this type of fraud on the United States or the exploitation of domestic workers – no matter the title or position of the alleged offender.”
DSS Director Todd J. Brown said: “We are committed to working with our law enforcement partners to prevent situations where vulnerable individuals are exploited for personal gain in schemes such as this. Because of our global presence, DSS is well positioned to work with U.S. and foreign law enforcement to stop those who would criminally manipulate instruments of international travel, such as passports and visas, to abuse the legal immigration system.”
As alleged in the Indictment unsealed in White Plains federal court[1]:
From approximately 2006 through 2019, JAIDI, ESTRELLA, and SINGSON conspired to fraudulently procure visas for at least 10 foreign domestic workers (collectively, the “Domestic Workers”), who were from the Philippines and Morocco, among other countries. At various times relevant to the Indictment, JAIDI was a diplomatic agent accredited to the Moroccan Mission with the rank of ambassador. From approximately 1980 through approximately 2016, JAIDI and ESTRELLA were married.
In order to fraudulently obtain visas for the Domestic Workers, JAIDI and ESTRELLA caused the Domestic Workers to submit visa applications containing false statements and to submit fraudulent employment contracts in support of those visa applications. SINGSON – who resides in the Philippines – helped recruit several of the Domestic Workers in the Philippines to work for JAIDI and ESTRELLA in the United States and instructed the Domestic Workers to make false statements in their visa applications and to State Department officials.
In particular, JAIDI, ESTRELLA, and SINGSON caused a number of the Domestic Workers to falsely state in their visa applications that they would be employed as administrative staff at the Moroccan Mission or at the Consulate General of the Kingdom of Morocco in Manhattan. In addition, they caused some of the Domestic Workers to submit fraudulent employment contracts to the State Department in support of their visa applications. The fraudulent employment contracts overstated the Domestic Workers’ salaries, understated their hours, and, in many cases, falsely guaranteed benefits, including, among others, sick leave, dental insurance, and medical insurance.
Once the Domestic Workers arrived in the United States, JAIDI and ESTRELLA employed the workers as their personal drivers, domestic helpers, farmhands, and assistants at their residence in Bronxville, New York and their farm in Ancramdale, New York. JAIDI and ESTRELLA paid the Domestic Workers less than the minimum salary required by law and regularly compelled them to work far in excess of 40 hours per week. In addition, JAIDI and ESTRELLA generally denied the Domestic Workers the benefits set forth in their employment contracts, compelled the Domestic Workers to work seven days a week, and required the Domestic Workers to surrender their passports.
* * *
JAIDI, 82, of Rabat, Morocco, ESTRELLA, 60, of Scarsdale, New York, and SINGSON, 55, of Manila, Philippines, are each charged with one count of conspiracy to defraud the United States, to make materially false statements, and to commit visa fraud, which carries a maximum sentence of five years, and one count of conspiracy to induce aliens to illegally enter, come to, and remain in the United States, which carries a maximum sentence of 10 years. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the DSS Criminal Fraud Investigations Branch, the DSS Saint Albans Resident Office, the DSS New York Field Office, Homeland Security Investigations, the U.S. Department of Labor’s Wage and Hour Division from the Albany District Office, the Yonkers Police Department, and the New York State Police. In addition, Mr. Berman thanked the U.S. Attorney’s Office in the Northern District of New York, the Community Development Project at the Urban Justice Center, and the Human Trafficking Program at the Worker Justice Center of New York for their assistance in this investigation.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Sam Adelsberg, Gillian Grossman, and James Ligtenberg are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Former Georgia attorney arraigned for fraud and theft of client fundsRead the Press Release
ATLANTA - Carla B. Gaines, an attorney formerly licensed in Georgia, has been arraigned on charges of wire fraud and theft from a local government that receives federal funding.
“Attorneys who allegedly lie and steal abuse the trust owed to their clients and violate the law,” said U.S. Attorney Byung J. “BJay” Pak. “The indictment alleges that Gaines stole client money that should have been held in escrow, and then lied about the theft in an attempt to lull her victims into a false sense of security.”
“It is very disheartening when a lawyer, sworn to uphold the Constitution of the United States and the Constitution of the jurisdiction they are licensed in, violates that oath,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “When they do, the FBI is committed to protecting the citizens who suffer from their transgression.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Carla B. Gaines was an attorney licensed in Georgia until she was disbarred on November 18, 2019. From August 2014 through March 2016, she allegedly stole $337,400 that she had received from the Clayton County government to hold in escrow for payment to a Georgia business, Kelete, Inc., located in College Park, Georgia. After the theft, Gaines allegedly lied to Clayton County and Kelete to convince them that she still had the money and payment was on the way.
In 2014, Clayton County entered into an agreement with Kelete for Kelete to sell a right of way or easement through Kelete’s property to the County, for $712,400. Gaines was retained to serve as the escrow agent for this real estate transaction. Clayton County transferred $712,400 to Gaines for her to hold in escrow and complete the transaction.
In November 2015, Clayton County and Kelete closed the real estate deal. Gaines paid $375,000 to Kelete and its bank at the time of closing. Under the settlement agreement, Gaines was required to hold the remaining $337,400 in escrow until Kelete removed certain trade fixtures and improvements on the property. In March 2016, Kelete completed the removal and requested the remaining payment of $337,400. But Gaines never paid, despite repeated demands. Instead of holding the $337,400 in escrow as required, Gaines had diverted the funds to pay for personal and law firm expenses.
Beginning in March 2016, when payment was demanded, Gaines repeatedly made false representations to Clayton County and Kelete about whether she had the money and whether payment was on the way. For example, Gaines falsely claimed that the wire was “pending,” that the wire was “stuck,” that she had a check ready for Kelete, that she was “awaiting a call from the bank,” that “the bank was holding the wire,” that she had “straightened out the issue,” and that the “wire should be processed Monday.” These representations were false. No wires were stuck, pending, held, or on their way; and no check was ready. Gaines had far less than $337,400 in her bank accounts at the time she made these misrepresentations.
Kelete sued Gaines to recover the $337,400 it was owed. As part of that civil proceeding, Gaines testified in two depositions, in March 2017 and June 2018, and allegedly lied. Gaines testified that she had paid a portion of Kelete’s funds to another client, a pastor, in error. Gaines also testified that she had called the pastor and informed him of the mistake, and that he had promised repeatedly to pay the money back to Gaines. These representations were false.
Carla B. Gaines, 60, of Mableton, Georgia, was indicted by a federal grand jury on December 10, 2019. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
The Federal Bureau of Investigation is investigating this case.
Assistant U.S. Attorney Stephen H. McClain, Chief of the Complex Frauds Section, is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former CFO Arrested and Charged with Embezzling Millions of Dollars from Construction Company and Defrauding LendersRead the Press Release
NEWARK, N.J. – The former chief financial officer (CFO) of a Sussex County retail construction company was arrested today for defrauding the company and several lenders, including by embezzling millions of dollars for his own personal benefit, U.S. Attorney Craig Carpenito announced.
Jonathan Baker, 38, of Green Township, New Jersey, was indicted on five counts of wire fraud and three counts of money laundering. He was arrested this morning by special agents of the FBI and is scheduled to appear this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court.According to documents filed in this case and statements made in court:
Baker held the title of CFO of Victim-Company 1, a small, privately held retail construction company located in Sparta, New Jersey. The company acted as a construction manager and a general contractor for construction projects, such as new business offices, retail spaces, and restaurants. Baker also held the title of manager of Victim-Company 2, which held 100 percent of the voting and equitable interest in Victim-Company 1.
From 2015 through 2018, Baker defrauded both companies and several commercial lenders, embezzling millions from the companies and fraudulently inducing commercial lenders into providing funds to Baker and his associated entities through fraudulent use of Victim-Company 1’s name, bank statements, balance sheet, and bank accounts.
Baker misappropriated millions of dollars from the Victim-Companies’ bank accounts and used the funds for his personal expenses, including mortgage payments on Baker’s residence, the purchase of a BMW, and the purchase of six donkeys. He also used the Victim-Companies’ credit cards to make unauthorized personal purchases.
Baker obtained funds by causing Victim-Company 1 to enter into agreements with commercial lenders through falsified documents, such as false resolutions of the Board of Directors of Victim-Company 1.
Baker concealed the fraud by making false statements to members of the Victim-Companies after they confronted him with evidence of the fraud. He falsely claimed that a commercial lender had made a mistake in filing a lien against Victim-Company 1 and repeatedly misrepresented that the commercial lender would be issuing a retraction and apology. Baker then refused to meet or join conference calls with the members of the companies to discuss the liens against Victim-Company 1, refused to produce the Companies’ bank statements, changed the locks on the Companies’ offices, and attempted to disable the Companies’ email and phone system.
The wire fraud counts each carry a maximum potential penalty of 20 years in prison and $250,000 fine, or twice the gross gain or loss from the offense. The money laundering counts each carry a maximum potential penalty of 10 years in prison and $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Jonathan Fayer and Courtney A. Howard of the U.S. Attorney’s Office Economic Crimes Unit.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Michael Weinstein Esq., Hackensack, New Jersey
Former Associate Clerk in Office of the Clerk of the Circuit Court of Cook County Sentenced to Two Years in Prison for Lying to Federal Grand JuryRead the Press Release
CHICAGO — A former associate clerk in the Office of the Clerk of the Circuit Court of Cook County was sentenced today to two years in prison for lying under oath to a federal grand jury.
BEENA PATEL, 58, of Chicago, was convicted earlier this year of making false declarations before a grand jury. The grand jury was conducting an investigation of possible criminal violations in connection with the purchasing of jobs and promotions in the Clerk’s office.
U.S. District Judge Sara L. Ellis imposed the two-year sentence after a hearing in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Patrick M. Blanchard, Cook County Inspector General; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI.
“Defendant not only had answers to the questions the grand jury was asking, but had information that went to the very heart of its investigation,” Assistant U.S. Attorneys Heather McShain and Ankur Srivastava argued in the government’s sentencing memorandum. “Witnesses who lie during the course of a grand jury investigation not only violate their solemn oath to tell the truth, but also impede the grand jury’s ability to gather evidence.”
According to evidence at trial, the grand jury was conducting an investigation of possible criminal violations in connection with the purchasing of jobs and promotions in the Clerk’s office. Patel sold campaign fundraiser tickets on behalf of the Clerk to colleagues in the office and knew that other employees did the same. Yet when asked about it during grand jury testimony on Oct. 15, 2015, Patel denied selling the tickets to employees and denied knowing that other employees had done the same. The jury at trial found that Patel’s statements were false.
Evidence further revealed that Patel provided false statements to the grand jury about two other matters. Patel lied when she denied having recent conversations with another Clerk’s Office employee who had previously loaned $15,000 to a company associated with the Clerk and her husband. Patel also falsely denied contacting the Clerk’s Chief of Staff regarding a promotion opportunity for a Clerk’s Office employee whose brother had previously donated $10,000 to the Clerk’s campaign.
Former Army Employee Charged with Bribery, Kickbacks in Connection with Scheme to Steer ContractsRead the Press Release
A former civilian employee of the U.S. Army was charged in an indictment unsealed today for his role in a scheme to steer Army contracts for work to be performed at Camp Arifjan, a U.S. Army base in Kuwait.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent Jozette Gillespie, Acting Director, U.S. Army Criminal Investigation Command's (CID) Major Procurement Fraud Unit and Special Agent in Charge Robert E. Craig Jr. of the U.S. Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office made the announcement.
Ephraim Garcia, 62, was charged in an indictment filed in December 2018 in the District of Columbia with one count of offering a bribe, one count of receiving illegal gratuities and one count of offering kickbacks. The indictment further charges Gandhi Raj, 39, with paying illegal gratuities to Garcia.
As alleged in the indictment, Garcia worked in the U.S. Army’s Directorate of Public Works and was involved in the solicitation, award and management of various government contracts related to projects at Camp Arifjan. In or around September 2015, Garcia allegedly approached an employee of a prime contractor and offered to pay him in exchange for his assistance in steering contracts to a particular subcontractor owned by Raj, Gulf Link Venture Company. Garcia allegedly told the prime contractor employee that Gulf Link would artificially inflate the cost of certain of its bid proposals, and Garcia, Gulf Link and the prime contractor employee would split the proceeds. Additionally, over a period of about five years, Garcia and/or members of his immediate family allegedly received over $170,000 in wire transfers from Raj and other individuals associated with Gulf Link and another subcontractor that was bidding on work under the prime contract.
Garcia was arrested on Dec. 10, 2019, in the Philippines, where he has been residing since 2016. Raj, who was living in Kuwait at the time of the offense, remains a fugitive.
The charges in the indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The Army CID and DCIS investigated the case. Trial Attorney Christopher D. Jackson of the Criminal Division’s Fraud Section is prosecuting the case.
Five Sentenced for Roles in Timber Theft Conspiracy from Menominee Indian ReservationRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that five individuals received sentences after convictions for conspiring to steal timber from the Menominee Indian Reservation:
The sentences, imposed on December 10, 2019, by United States District Judge William C. Griesbach, were the result of guilty pleas to a charge of Conspiracy in violation of 18 U.S.C. § 371, entered by the five individuals in July 2019. Judge Griesbach sentenced the defendants as follows:
Defendant
Months of Prison
Months of Supervised Release
Restitution
Dugan R. Webster, (Age: 42), Shawano, Wisconsin
20
36
$219,100.75
Arthur P. Fish (Age: 49), Keshena, Wisconsin
18
36
$408,248.90
Chauncey J. Webster, Jr. (Age: 49), Neopit, Wisconsin
12 +1 day
36
$178,322.65
Derrin B. Webster, (Age: 21), Neopit, Wisconsin
7
36
$178,322.65
Melvin T. Caldwell, Jr. (Age: 44), Neopit, Wisconsin
3
36
$99,000.00
The investigation revealed that the defendants logged timber for Menominee Tribal Enterprises (MTE) from designated areas on the Menominee Indian Reservation. On at least 100 occasions, the defendants and others used forestry equipment to cut down extra trees beyond what MTE authorized. Fish used a tractor-trailer to transport the extra timber to two sawmills outside the boundaries of the reservation.
Dugan and Derrin Webster received payments from the mills for the timber, which the defendants divided amongst themselves. The outside sawmills paid Dugan and Derrin Webster $408,248.90 between January 2012 and September 2018 for the timber the defendants and others removed from the reservation without permission. Investigators discovered evidence of the defendants using spray paint to make it appear they were working with trees designated by MTE for harvest.
In sentencing the defendants, Judge Griesbach noted the seriousness of the crimes the defendants committed. Judge Griesbach also remarked upon the terrible damage to the community caused by the defendants, necessitating a sentence that reflected the “impact on the community, along with the breach of trust the defendants each had with the tribe.” Judge Griesbach also emphasized the strong cultural ties between the Menominee people and the forest, which they have protected and relied upon for centuries. The sentences were a necessary deterrent to those would might consider similar actions, undertaken out of greed.
The case was investigated by the Menominee Tribal Police Department, Menominee Conservation Department, United States Forest Service, and Federal Bureau of Investigation. Special assistance was provided by Menominee Tribal Enterprises Forestry. It was prosecuted by Assistant United States Attorney Andrew J. Maier.
# # #
For Additional Information Contact:
Public Information Officer Kenneth Gales 414-297-1700
Follow us on Twitter
Five Members of Drug Trafficking Organization IndictedRead the Press Release
CAMDEN, N.J. – A grand jury has returned an indictment against five members of a drug-trafficking organization for conspiring to distribute significant amounts of narcotics through an open-air drug market in Camden, U.S. Attorney Craig Carpenito announced today.
The indicted defendants include: Juan Figueroa, 22; Christopher Vasquez, 29; Jose Diaz, 27; and Jose Agron, 26, all of Camden; and Dwight Williams, 28, of Lumberton, New Jersey. The indictment charges each defendant with participating in a drug trafficking conspiracy that involved at least one kilogram of a mixture and substance containing heroin; at least 280 grams of a mixture and substance containing cocaine base (“crack cocaine”); and quantities of cocaine and fentanyl. Each defendant named in the indictment was previously charged by federal complaint.
Nine other members of the drug-trafficking conspiracy – Ronnie Lopez, Nelson Salcedo, Paul Salcedo, Waldemar Garcia, William Carrillo, Elisa Rivera, Ramon Velez, Naeem Sadler, and Jasmin Velez – previously have pleaded guilty in this case. The charges against four other defendants in this case remain pending, and they and the defendants indicted today are presumed innocent unless and until proven guilty.
According to documents filed in this case and statements made in court:
The FBI used surveillance, confidential informants, consensual recordings, multiple controlled drug purchases, a GPS vehicle tracker, search warrants of several different locations, and several court-authorized wiretaps to uncover the operations of a drug trafficking organization that dealt heroin, crack cocaine, cocaine, and fentanyl in and around Camden. The organization’s activities were concentrated on the 400-500 blocks of Pine Street, where members distributed drugs to customers who approached on foot and in vehicles. The organization also supplied drugs elsewhere, including in and around the residences of some of its members.
Members of the organization previously had conducted drug trafficking activities in and around the 1900 block of Filmore Street. After a fatal, drug-related shooting in that area in April 2017, local law enforcement increased their presence in the area and the drug-trafficking activities ultimately shifted to the area around Pine Street.
The investigation revealed that the organization’s members worked together in a multi-layered organization to supply drugs. The main role of Ronnie Lopez – one of the leaders of the organization – was to obtain bulk quantities of illegal drugs for sale to customers. The organization also had distributors and packagers, such as Carlos Perez and Nelson Salcedo, whose main roles were to obtain drugs from Lopez and others and to prepare and package the drugs for distribution downstream. The organization used “runners,” or managers, like Juan Figueroa and Paul Salcedo. These individuals obtained drugs from higher-level distributors and packagers within the organization and then provided those drugs downstream to shift managers like Jose Diaz and Christopher Vazquez. “Runners” also collected drug proceeds from lower-level shift managers and provided that money to higher-level members of the organization, such as Lopez. Shift managers, in turn, supervised the organization’s set workers, including Jose Agron, Dwight Williams, Elisa Rivera, Jasmin Velez, Kaliel Johnson, William Carrillo, Meylin Troncoso, Waldemar Garcia, Naeem Sadler, Jameel Byng, Ramon Velez and David Velez. These set workers sold drugs directly to customers and passed the proceeds up the organizational hierarchy.
Multiple communications intercepted by wiretaps reflected that members of the organization owned guns and were prepared to use them. In November 2018, law enforcement officers recovered firearms during the execution of several search warrants on locations related to the drug-trafficking organization. Juan Figueroa currently is facing several charges in Camden County Superior Court regarding the Aug. 7, 2018, shooting of two law enforcement officers, who were in an unmarked car and wearing plain clothes after having conducted surveillance earlier in the day on members of the organization. Also, some of the heroin that was purchased from the organization bore the same stamp as drugs found at the sites of drug overdoses in Camden, including two fatal overdoses.
The drug trafficking conspiracy count carries a mandatory penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $10 million fine.
U.S. Attorney Craig Carpenito credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael T. Harpster; the Camden County Police Department, under the direction of Chief Joseph Wysocki; the Camden County Prosecutor’s Office, under the direction of Acting Prosecutor Jill S. Mayer; the Camden County Sheriff’s Department, under the direction of Sheriff Gilbert L. Wilson; the Cherry Hill Police Department, under the direction of Chief William P. Monaghan; and the New Jersey State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s indictment. He also thanked the Drug Enforcement Administration, the U.S. Marshals Service, and the Department of Homeland Security for their assistance.
The government is represented by Assistant U.S. Attorneys Sara A. Aliabadi and Patrick C. Askin of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel:
Juan Figueroa: Paul Sarmousakis Esq., Avalon, New Jersey
Vasquez: Edward J. Crisonino Esq., Collingswood, New Jersey
Diaz: John B. Brennan Esq., Marlton, New Jersey
Agron: Gil Scutti Esq., Somerdale, New Jersey
Williams: Justin Loughry Esq., CamdenFederal Court Shuts Down Illinois Tax Return PreparerRead the Press Release
A federal court has permanently barred Jackelin Brooks, a Bolingbrook, Illiniois tax return preparer, from preparing federal tax returns for others, the Justice Department announced today. The civil injunction order was entered by the U.S. District Court for the Northern District of Illinois.
According to the government’s complaint, Brooks, a Bolingbrook resident, prepared returns that reported false income and expenses from Schedule C businesses and improperly claimed the American Opportunity Tax Credit and the Residential Energy Credit, resulting in refunds to which her customers were not entitled. The complaint alleges that the falsified tax returns cost the United States tens of thousands of dollars in tax revenue. The injunction was entered against Brooks by default because she failed to defend against the government’s allegations.
Return preparer fraud is one of the IRS’s “Dirty Dozen” tax scams for 2019. In the past 10 years, the Justice Department’s Tax Division has obtained injunctions against hundreds of return preparers and tax-fraud promoters. Information about these cases is available on the Justice Department website.
FBI sting operation nabs four men charged with attempting to entice minors to engage in sexual activityRead the Press Release
ATLANTA – Four men have been charged with attempted enticement of a minor to engage in sexual activity. Rolando Hernandes, Mark Hanna, James Daniel Stinchcomb, and William Sage were arrested separately for attempting to entice a minor to engage in sexual activity.
“During the Thanksgiving holiday our federal and local law enforcement partners remained vigilant in an effort to identify individuals targeting minors online for unlawful sex acts,” said U.S. Attorney Byung J. “BJay” Pak. “Those who attempt to prey on children should know that they face arrest and jail when they seek to exploit the youngest members of our community.”
“The FBI will always be vigilant in pursuing those who choose to prey on our most vulnerable citizens, our children,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “I would like to thank our law enforcement partners and their task force officers as part of the FBI’s Metro Atlanta Child Exploitation and Human Trafficking (MATCH) task force for their commitment to making these arrests.”
According to U.S. Attorney Pak, the charges and other information presented in court: between on or about November 19, 2019, through on or about December 6, 2019, the FBI communicated online with several men during undercover operations targeting adults seeking minors for sex. The operation resulted in the arrests of four men: Sage, Hernandes, Hanna, and Stinchcomb.
On November 19, 2019, Sage began communicating online with an undercover agent. Over the next several days, Sage exchanged multiple messages with the agent in an effort to meet for sex with a person he believed to be an 11-year-old girl. During the chats, Sage described the sex acts he intended to do to the child. On November 25, 2019, Sage traveled to Norcross, Georgia, for a planned meeting with the child. FBI agents and Gwinnett County police officers immediately arrested him upon his arrival.
Also on November 19, 2019, Hernandes began communicating online with an undercover agent. Over the next eight days, Hernandes exchanged multiple messages with the agent in an effort to meet for sex with a person he believed to be a 10-year-old girl. Hernandes described the sex acts he intended to do to the child during the chats. On November 27, 2019, Hernandes traveled to Smyrna, Georgia, for a planned meeting with the child. FBI agents and Cobb County police officers immediately arrested him upon his arrival.
On November 22, 2019, Hanna began communicating online with an undercover agent. Over the next several days, Hanna exchanged multiple messages with the agent in an effort to meet for sex with a person he believed to be an 11-year-old girl. Hanna described the sex acts he intended to do to the child during the chats. On December 4, 2019, Hanna traveled to Norcross, Georgia, for a planned meeting with the child. FBI agents and Gwinnett County police officers immediately arrested him upon his arrival.
On November 19, 2019, Stinchcomb began communicating online with an undercover agent. Over the next two-and-a-half weeks, Stinchcomb exchanged dozens of messages with the agent in an effort to meet for sex with a person he believed to be an 11-year-old girl. Stinchcomb followed a similar pattern of describing the sex acts he intended to do to the child during the chats. On December 6, 2019, Stinchcomb, who is a Gwinnett County employee, traveled to Norcross, Georgia, in his county work vehicle for a planned meeting with the child. FBI agents and Gwinnett County police officers immediately arrested him upon his arrival.
Rolando Hernandes, 30, of Mableton, Georgia, was arraigned on December 5, 2019. Mark Hanna, 29, of Anaheim, California, was arraigned on December 10, 2019. James Daniel Stinchcomb, 34, of Bethlehem, Georgia will be arraigned later this month. William Sage, 32, of Sandy Springs, Georgia will be arraigned on December 18, 2019.
The Federal Bureau of Investigation is investigating these cases.
Assistant U.S. Attorneys Laurel Boatright, Theodore S. Hertzberg, and Leanne Marek are prosecuting these cases.
Members of the public are reminded that the indictments only contain charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
These cases are being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Executive of Purported Caffeinated Snack Company Sentenced to 4 Years in Prison for Defrauding Investors of More Than $2.3 MillionRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that BARRY SCHWARTZ was sentenced to four years in prison today by U.S. District Judge Jed S. Rakoff for participating in a conspiracy to defraud more than 50 investors in the Starship Snacks Corporation of more than $2.3 million, by making false and fraudulent representations about, among other things, the status of the company’s products, guarantees that purportedly backed the investments, and the interest of large multi-national corporations in acquiring the companies.
U.S. Attorney Geoffrey Berman said: “Barry Schwartz participated in a conspiracy to defraud investors, telling them their investments were safe and guaranteed when, in fact, he and his co-conspirators had misappropriated investor funds to support their lavish lifestyles. Schwartz lied about the readiness of his company’s products and about the claim that two large multi-national companies were vying to buy the company. Schwartz’s house of lies eventually collapsed, bringing financial devastation to many of its victims. Today Schwartz was held accountable for the criminal conduct that defrauded more than 50 investors of more than $2.3 million.”
According to the allegations contained in the Indictment filed against SCHWARTZ and statements made in related court filings and proceedings, including the trial of co-defendant Joel Margulies:
The Starship Snack Corporation Fraud Scheme
From approximately August 2015 through August 2017, SCHWARTZ, Margulies, and a co-conspirator, Lisa Bershan, raised more than $2.3 million from investors in a company originally called the Awake Company and later renamed Starship Snacks Corporation (“Starship”), which purported to be in the business of developing and manufacturing caffeinated snack products, based on the following misrepresentations, among others: (a) that investments in Starship were guaranteed against losses by Bershan; (b) that Starship was going to be acquired by Monster Beverage (“Monster”) in a one-for-one stock exchange; (c) that Starship was engaged in actual product development and had procured samples of candies infused with caffeine; (d) that SCHWARTZ and others at Starship had entered into non-disclosure agreements with Monster that prohibited them from discussing Starship’s purported acquisition by Monster and its purported product development. SCHWARTZ held himself out as Starship’s corporate secretary.
After receiving funds from Starship investors, SCHWARTZ and his co-conspirators used those funds to maintain their own extravagant lifestyles, spending hundreds of thousands of dollars on things like luxury clothing, plastic surgery, interior decorating, the rental of a high-end apartment in New York City, and the down payment for a multimillion-dollar house in Florida.
In addition to the prison term, SCHWARTZ, 73, was sentenced to two years of supervised release. SCHWARTZ was also ordered to forfeit $2,163,214. A restitution order will be entered within 90 days.
Lisa Bershan was convicted upon a guilty plea, and sentenced by Judge Rakoff on November 22, 2019, principally to a term of seven years in prison. Joel Margulies was convicted following a seven-day jury trial before Judge Rakoff and is scheduled to be sentenced on December 16, 2019.
Mr. Berman praised the work of the Federal Bureau of Investigation, and thanked the Securities and Exchange Commission for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Christine Magdo and Negar Tekeei are in charge of the prosecution.
Ex-Northern Cheyenne Tribal President sentenced to six months in prison for travel fraud schemeRead the Press Release
BILLINGS—The former president of the Northern Cheyenne Tribe was sentenced today to six months in prison, three years of supervised release and ordered to pay $25,092 restitution for a travel fraud scheme in which he admitted stealing from federal, state and tribal agencies, U.S. Attorney Kurt Alme said.
Lawrence Jace Killsback, 40, of Busby, pleaded guilty in July to wire fraud and to false claims conspiracy. In admitting the scheme to investigators, Killsback noted that this travel fraud happens all of the time on the reservation. Killsback was aware of this scheme and described this as a culture of fraud.
U.S. District Judge Susan P. Watters presided.
“Mr. Killsback exploited his positions as the tribe’s health director and then as its president to steal funds intended to benefit tribal members and programs for his own personal enrichment. His conduct violated the public’s trust in his official positions. We will prosecute such frauds to the full extent of the law. I want to thank Assistant U.S. Attorneys Bryan Dake and Ryan Weldon, the Guardian’s Project and the Office of Inspector General for the Department of Health and Human Services and the Department of Interior, for their work on the case,” U.S. Attorney Alme said.
The prosecution said in court records that Killsback stole money first in his position as the Tribe’s health director and later as the Tribe’s president. The thefts occurred multiple times over a three-year period and resulted in more than $20,000 in improper payments to Killsback. As part of the scheme, Killsback submitted false or fraudulent invoices to tribal, state and federal entities claiming travel-related expenses for travel for which he was already being reimbursed or that never occurred or for dates or rates that were exaggerated.
In one scheme, Killsback double and triple dipped travel reimbursement on at least 10 trips he made while serving on various state and national boards.
In another scheme, Killsback falsified hotel invoices by changing the number of days, rate or total expenses for trips through a software program used by himself or a co-conspirator.
Although Killsback disputed the amount, prosecutors said he received more than $20,000 in improper reimbursements from 2014 to 2017.
Assistant U.S. Attorneys Bryan Dake and Ryan Weldon prosecuted the case, which was investigated by the Department of Health and Human Services, Office of Inspector General and the Department of Interior, Office of Inspector General. The case is part of the Guardians Project, which is a multi-agency anti-fraud task force that investigates and prosecutes persons attempting to use federal funds for private gain.
XXX
Eleven Individuals Charged with Conspiracy to Distribute Heroin, Fentanyl, and CocaineRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the unsealing of an indictment charging 11 individuals with federal drug trafficking offenses. Ahmad Rashad Weston, a/k/a “Blood,” (42, St. Petersburg); Charleston Shellie Long, a/k/a “Shellie,” (38, St. Petersburg); Shyron Deonta Givens, a/k/a “Ron,” (42, St. Petersburg); Charlie James McDuffy, Jr. (32, Clearwater); Teddy Terrell Strachan (38, Pembroke Pines); Ceveghnta Billvon Guyden, a/k/a “Chop,” (41, St. Petersburg); Quincy Alfonzo Turner, a/k/a “Chico,” (42, St. Petersburg); Justice Deshonna McLaurin, a/k/a “Jussy,” (24, St. Petersburg); Willie Carl McLaurin, a/k/a “Baldy,” (53, St. Petersburg); Ja’Vonta Willie McLaurin, a/k/a “Tay Tay,” (26, St. Petersburg); and Willie Carl McLaurin, Jr. (30, St. Petersburg) are charged with conspiracy to distribute heroin, fentanyl, and cocaine. If convicted, each faces a maximum penalty of 40 years in federal prison. Weston and Turner, are also charged with distributing heroin and fentanyl. If convicted, each faces a maximum penalty of 20 years in federal prison.
According to the indictment, between on an unknown date, but no later than August 2018, and continuing through November 26, 2019, the defendants conspired to distribute heroin, fentanyl, and cocaine.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
These cases were investigated by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. Agencies involved in this OCDETF operation include the Drug Enforcement Administration, the St. Petersburg Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It will be prosecuted by Assistant United States Attorney David Waterman.
Eagle Butte Woman Indicted for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, woman has been indicted by a federal grand jury for Conspiracy to Distribute Methamphetamine.
Kristen Nordvold, a/k/a Kristen Pretty Weasel, a/k/a Kristen Red Dog, age 38, was indicted on December 10, 2019. She appeared before U.S. Magistrate Judge Mark A. Moreno on December 11, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is life in prison and/or a $10,000,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that beginning on or about January 1, 2016, and continuing to on or about December 10, 2019, in the District of South Dakota and elsewhere, Nordvold, knowingly and intentionally, combined, conspired, confederated, and agreed with others to knowingly and intentionally distribute and possess with intent to distribute 500 grams or more of methamphetamine.
The charge is merely an accusation and Nordvold is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Nordvold was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Doctor and Occupational Therapist Sentenced to Prison for Participating in $30 Million Scheme to Defraud Medicare and MedicaidRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that physician PAUL J. MATHIEU was sentenced yesterday evening by U.S. District Judge Lorna G. Schofield to 48 months in prison for his participation in a $30 million scheme to defraud Medicare and the New York State Medicaid Program. Between 2007 and 2013, MATHIEU falsely posed as the owner of three medical clinics, which were actually owned a by corrupt businessman, and falsely claimed that he had examined and treated thousands of patients whom he had not in fact seen. In addition, occupational therapist LINA ZHITNIK was sentenced by Judge Schofield on December 3, 2019, to 14 months in prison for her role in the same scheme, which included falsifying medical records in order to claim that she had provided therapy services that she had not in fact provided. MATHIEU was convicted in May 2019, following a six-week trial, on charges of health care fraud, wire fraud, mail fraud, conspiracy to commit those offenses, and conspiracy to make false statements in connection with a federal health care program. ZHITNIK pled guilty to health care fraud and conspiracy to commit health care fraud, mail fraud and wire fraud in April 2019, during jury selection for trial.
U.S. Attorney Geoffrey S. Berman said: “Corrupt doctors and therapists who defraud Medicare and Medicaid betray their medical training, their professions, their patients, and the taxpayers. These taxpayer-funded programs are designed to provide essential medical services to the elderly and the needy, not to enrich corrupt doctors and other fraudsters. Paul Mathieu’s sentence sends a clear message that those who cheat Medicare and Medicaid will be held accountable.”
According to the evidence presented at trial and other public documents, including Zhitnik’s guilty plea transcript:
Between 2007 and 2013, Aleksandr Burman – who is currently serving a 10-year prison term for his participation in this scheme – owned and operated six medical clinics in Brooklyn (the “Clinics”) that fraudulently billed Medicare and Medicaid approximately $30 million for medical services and supplies that were not provided, were provided without regard to medical necessity, or were otherwise fraudulently billed. Under New York State law, professional medical corporations must be owned by a medical professional. To circumvent this requirement, Burman and MATHIEU agreed to have MATHIEU pose as the true owner of a succession of three different clinics, which Burman owned and operated for more than five years, from 2007 through 2013. Throughout those years, MATHIEU signed a variety of fraudulent documents that falsely represented to banks, Medicare, Medicaid, and others that MATHIEU was the sole owner of The Medical Office of Paul J. Mathieu, P.C.; Sunlight Medical, P.C.; and Ocean View Medical of Brooklyn, P.C. Burman also hired two other doctors, Ewald J. Antoine and Mustak Y. Vaid, to pose fraudulently as the owners of three additional, related clinics.
MATHIEU also came weekly to several of the clinics, where he signed stacks of false and fraudulent medical charts, and issued referrals for expensive additional testing, occupational therapy, and physical therapy. For the last 3½ years of the scheme, MATHIEU saw no patients at all, simply falsifying enormous stacks of phony medical records falsely stating that he had seen and treated such patients.
In addition to his role in the clinics, MATHIEU also wrote unneeded prescriptions for adult diapers and other incontinence products, which prescriptions were filled at Universal Supply Depot, a medical supply company also owned by Aleksandr Burman. MATHIEU was so prolific in this regard that, throughout the period of the fraud, he was the No. 1 top prescriber of adult diapers in the State of New York. The only year MATHIEU ranked second, he ranked behind another member of the same criminal scheme. MATHIEU continued to write such prescriptions, even after the medical clinics closed after Medicare stopped paying any of the clinics’ claims.
ZHITNIK participated in the scheme for more than a year, from mid-2011 through mid-2012. ZHITNIK was paid to come to one of the clinics for a portion of each day. While there, ZHITNIK signed large numbers of medical records to be used in fraudulent billing, falsely claiming to have provided occupational therapy services that she did not in fact provide. Indeed, ZHITNIK signed such fraudulent paperwork, backdated, even for weeks when she was on family vacations in New Orleans and Miami, as well as when she was on shorter trips or out of town taking private flying lessons.
MATHIEU is the tenth defendant, and the third physician, who has been sentenced in this case and a related case. The other defendants, each of whom pled guilty, include: Aleksandr Burman, who was sentenced in a related case on May 8, 2017, to 10 years in prison; Marina Burman, the former wife of Aleksandr Burman and the owner of a related medical supply company, sentenced on May 17, 2018, to three years in prison; Mustak Y. Vaid, a physician sentenced on August 1, 2018, to 18 months in prison; Ewald J. Antoine, a physician sentenced on August 21, 2018, to a year and a day in prison; Asher Oleg Kataev, a Burman business partner, sentenced on May 31, 2018, to three years in prison; Alla Tsirlin, a Clinic office manager, sentenced on June 5, 2018, to a year and a day in prison; and Edward Miselevich and Ivan Voychak, Burman partners who jointly ran a related ambulette company, sentenced on June 12 and July 19, 2018, to three years in prison each.
One additional defendant awaits sentencing, physical therapist Hatem Behiry, who was convicted at trial with MATHIEU.
In addition to the prison term, MATHIEU, 54, of Morristown, New Jersey, was sentenced to three years of supervised release. Judge Schofield also ordered MATHIEU to pay restitution and forfeiture. ZHITNIK, 52, of Brooklyn, New York, was also sentenced to three years of supervised release, ordered to pay restitution of $1,369,554, and to forfeit $89,682.
Mr. Berman praised the outstanding investigative work of the Federal Bureau of Investigation, the Office of the Inspector General of the U.S. Department of Health and Human Services, and the New York State Office of the Medicaid Inspector General (“OMIG”).
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys David Raymond Lewis, Stephen J. Ritchin, and Timothy V. Capozzi are in charge of the prosecution.
Defendant indicted in phone scam targeting U.S. victimsRead the Press Release
ATLANTA - Shivang Bharatkumar Thakur has been indicted for his involvement in a transnational criminal organization that victimized approximately 288 people across the United States through a fraudulent India-based call-center scheme that resulted in over $330,000 in losses.
“Thakur allegedly worked with a phone scam ring that tricked unwitting U.S. residents into sending money they couldn’t afford to lose in the hope of receiving a loan in return,” said U.S. Attorney Byung J. “BJay” Pak. “This case exists as an example of how federal and state law enforcement are partnering to investigate transnational phone scams and hold the scam participants, including those who launder scammed funds, accountable.”
“This indictment demonstrates that TIGTA and its law enforcement partners continue to make significant progress in investigating IRS-related impersonation scams,” said J. Russell George, the Treasury Inspector General for Tax Administration. “We appreciate the efforts of the U.S. Attorney’s Office for the Northern District of Georgia and the Bloomington, Minnesota Police Department.”
“By utilizing our state and federal law enforcement partners, this case that crossed several state and national boundaries, was investigated and resulted in the indictment of Shivang Thakur. Phone scams all too often target the vulnerable and I am proud of those who worked together to hold Thakur accountable to those he victimized,” said Bloomington, Minnesota Police Chief Jeff Potts.
According to U.S. Attorney Pak, the indictment, and other information presented in court: the defendant, Shivang Bharatkumar Thakur, is an Indian national who arrived in the United States in August 2017 and allegedly began laundering funds derived from phone scams shortly thereafter. As part of the fraud, call centers based outside the United States defrauded U.S. residents, including elderly victims, by misleading them over the telephone into sending money utilizing a loan scam. As part of the scam, callers deceived U.S. residents into believing that they were eligible for fictitious loans. Callers directed the U.S. residents to pay supposed taxes and fees to prove their ability to repay the loan and verify their bank accounts. The victims received nothing in return.
From on or about August 12, 2017, to on or about January 10, 2018, Thakur allegedly retrieved over $330,000 in cash payments of scammed funds from money transmitters using fake identification documents and fraudulent information. Approximately 288 victims sent the funds in response to the fraud. Thakur used approximately 71 fake identification cards with numerous aliases to retrieve the scammed funds.
Shivang Bharatkumar Thakur, 26, of India, was charged with conspiracy to commit money laundering and six counts of money laundering. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
The U.S. Attorney’s Office for the Northern District of Georgia is part of the Department Of Justice Transnational Elder Fraud Strike Force. The Strike Force focuses on investigating and prosecuting defendants associated with foreign-based fraud schemes that disproportionately affect American seniors. These include romance scams, phone scams, mass-mailing fraud schemes, and tech-support fraud schemes. For further information on these scams, see https://www.justice.gov/elderjustice/senior-scam-alert.
The U.S. Treasury Inspector General for Tax Administration and the City of Bloomington, Minnesota Police Department are investigating the case.
Assistant U.S. Attorney Jolee Porter is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Dawsonville real estate agent pleads guilty to defrauding clientsRead the Press Release
GAINESVILLE, Ga. - Carol Michaelson, a formerly licensed real estate agent, pleaded guilty today to defrauding her clients by faking property sales, forging contracts and deeds, and then pocketing her victims’ money.
“This defendant stole her clients’ hard-earned money by pretending to purchase properties for them, while pocketing their funds for her own personal use,” said U.S. Attorney Byung J. “BJay” Pak. “She then tried to cover her tracks with fake sales agreements and forged deeds. Michaelson is a repeat offender, having previously lost her real estate license for defrauding clients.”
“This case demonstrates the commitment the Secret Service and our law enforcement partners have in aggressively pursuing those who defraud innocent victims,” said Steven R. Baisel, Special Agent in Charge of the U.S. Secret Service, Atlanta Field Office. “This guilty plea should serve as a reminder to other like-minded individuals that we will protect our economic system and arrest criminals who violate public trust for personal gain.”
“We are grateful to all the involved criminal justice agencies who worked so diligently to help close these cases. It is our continued desire that justice will be served in hopes of deterring these types of crimes,” said Dawson County Sheriff Jeff Johnson.
According to U.S. Attorney Pak, the charges and other information presented in court: Carol Michaelson operated a scheme to defraud her clients while acting as a real estate agent. She pretended to arrange real estate purchases for her clients and received funds from them to complete the purchases, but then diverted the funds to her own personal use. In furtherance of the scheme, she prepared fraudulent real estate contracts listing false owners, forged signatures on the contracts and other agreements, and filed fraudulent warranty deeds with forged signatures with the county clerk’s office. Michaelson also sent emails to her victims impersonating closing attorneys, loan officers, and other financial and real estate personnel, to trick the victims into believing that the real estate transactions were legitimate and progressing.
Michaelson defrauded her victims in a variety of ways. In some cases, she falsely informed victims that certain properties were for sale by their owners, when in fact they were not; and the true owners were unaware of Michaelson’s false representations. In another instance, after Michaelson deceived a victim into believing that she had purchased properties for the victim, Michaelson created false tenant identities to deceive the victim into further believing that she had arranged for the properties to be rented. Michaelson then sent rent checks to the victim, pretending to be the false tenants. The victim did not know that he was not the true owner of the properties. In yet another instance, after facilitating a real sale to a victim, Michaelson transferred ownership back to the bank, without the victim’s knowledge, and filed a fraudulent warranty deed with forged signatures in the county clerk’s office.
Michaelson stole over $1 million from her victims through her real estate scheme.
Carol Michaelson, 56, of Dawsonville, Georgia, was previously charged with forgery, theft by conversion, and false statements in Dawson County for defrauding real estate clients. As a result, she lost her real estate license in 2014. Even after surrendering her license, Michaelson continued to act as an unlicensed real estate agent and engage in fraudulent real estate transactions. Sentencing has not yet been scheduled.
The U.S. Secret Service, the Dawson County Sheriff’s Office, and the Enotah Judicial Circuit District Attorney’s Office are investigating this case.
Assistant U.S. Attorney Stephen H. McClain, Chief of the Complex Frauds Section, is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Corpus jury convicts Houston men for smuggling alien in waterwayRead the Press Release
CORPUS CHRISTI, Texas – A federal jury has returned guilty verdicts against two Houston men for knowingly and intentionally conspiring to unlawfully transport an undocumented alien, announced U.S. Attorney Ryan K. Patrick.
The jury deliberated for approximately 90 minutes before convicting Reuben Stafford, 47, and Reginald Lewis, 31, following a three-day trial.
The jury heard that at approximately 9:15 a.m. on May 29, authorities at the Javier Vega Border Patrol (BP) Checkpoint in Sartia observed a truck hauling an empty boat trailer. Lewis was driving. At primary inspection, he provided several inconsistent stories about his travel plans and displayed signs of nervousness.
Testimony revealed that authorities suspected he was smuggling contraband through the inter-coastal waterway and followed Lewis to the Port Aransas boat docks. There, they observed Stafford arrive at the dock in a boat along with an undocumented alien.
Both men, along with the alien attempted to flee the Corpus Christi area. However, law enforcement quickly arrested them at the docks.
The jury heard a confession Stafford had made, but the defense attempted to convince the jury that authorities coached Stafford on what to say. They further tried to claim the men had no idea they were transporting an undocumented alien.
The jury did not believe those claims and found them guilty as charged.
U.S. District Judge David S. Morales presided over the trial and set sentencing for March 13, 2020. At that time, each man faces up to 10 years imprisonment and a maximum $250,000 possible fine. Both have been and will remain in custody pending that hearing.
BP conducted the investigation. Assistant U.S. Attorney Neel Kapur is prosecuting the case.
Convicted Murderer Sentenced to 10 Years in Prison for Being a Felon in Possession of a FirearmRead the Press Release
LITTLE ROCK— A convicted murderer has been sentenced to 10 years in federal prison for being a felon in possession of a firearm. Today, United States Chief District Judge D.P. Marshall, Jr., sentenced Patrick Johnson, 22, of Little Rock, to 120 months’ imprisonment. Ten years is the statutory maximum penalty for being a felon in possession of a firearm.
Cody Hiland, the United States Attorney for the Eastern District of Arkansas, and Diane Upchurch, Special Agent in Charge of the FBI Little Rock Field Office, announced today’s sentence. The Court ordered that the sentence run consecutive to Johnson’s anticipated revocations in multiple pending state court cases and his pending Pulaski County Circuit Court cases for murder in the second degree and unlawful discharge of a firearm.
Johnson, a gang member, previously pleaded guilty before Judge Marshall to possession of a stolen rifle. The federal conviction stems from a March 19, 2018, arrest, when Little Rock Police Department Violent Crime Apprehension Team conducted a traffic stop. Johnson, who was a suspect in multiple violent crimes, was in the vehicle. The rifle was in plain view in a backpack Johnson was seen carrying prior to getting into the vehicle. Officers also located suspected crack cocaine in the vehicle.
On March 12, 2018, Johnson was involved in a shooting near Wright Avenue and Battery Street, where he and others fired shots at two individuals. He pleaded guilty to two counts of unlawful discharge of a firearm. Only hours later, on March 13, 2018, Johnson was involved in a shooting near 26th Street and Cross Street, where the defendant and others were responsible for firing shots at an occupied vehicle. Two individuals were shot, one of whom died, and Johnson pleaded guilty to murder in the second degree. Analysis by the Arkansas State Crime Lab linked the rifle found during the March 19 traffic stop to the March 13 murder.
“Removing violent criminals from our communities is a top priority for our office, and today’s ten year sentence sends a message that we will not tolerate gun violence,” said U.S. Attorney Hiland. “Prosecuting violent criminals is critical to keeping our communities safe. We remain committed to working with our state and local partners to fulfill our promise that gun crime by violent criminals will lead to federal time—time with no opportunity for parole.”
The United States requested that the sentence run consecutively because the firearm was connected to multiple shooting incidents, including a murder. The United States also based the request on Johnson’s criminal history, which includes the convictions for murder in the second degree, unlawful discharge of a firearm, commercial burglary, theft, and continued criminal conduct while incarcerated.
The investigation was conducted by the FBI GETROCK Task Force and the Little Rock Police Department.
# # #
This news release, as well as additional information about the office of the United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Do not reply to this message. If you have questions, please use the contacts in the message or call the U.S. Attorney’s Office at 501-340-2600.
Convicted Felon in Austin Faces Federal Ammunition Possession ChargeRead the Press Release
In Austin this afternoon, federal authorities filed a criminal complaint charging 33–year-old Timothy Maurice Selmon with being a convicted felon in possession of ammunition, announced U.S. Attorney John F. Bash, Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division, Austin Police Chief Brian Manley and Special Agent in Charge Fred Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosive’s (ATF) Houston Division.
According to the criminal complaint, Austin Police (APD) officers earlier today responded to a local retail outlet after receiving a report of a man in the store restroom who was in possession of a pipe and several shotgun shells and appeared to be attempting to construct a pipe bomb. When store security officers confronted Selmon, he left the store and proceeded to a nearby bus stop. APD officers found Selmon on a transit bus at the bus stop. While taking him into custody, APD officers discovered two PVC pipes capped with duct tape underneath the seat occupied by the defendant and numerous shotgun shells inside his jacket pocket. An APD Explosive Ordinance Disposal unit conducting a protective sweep of the store bathroom recovered a single matching shotgun shell and a butane bottle inside the bathroom stall.
This investigation continues. No one was injured during this incident. Individuals inside both the bus and the store were evacuated as a precaution.
According to the criminal complaint, Selmon’s criminal history includes two felony burglary convictions—one in August 2014, and one in October 2008—and one felony conviction for manufacture/delivery of a controlled substance in October 2008.
Upon conviction of the felon-in-possession charge, Selmon faces up to ten years in federal prison. He remains in custody. Selmon’s initial appearance in Austin before U.S. Magistrate Judge Susan Hightower is expected to occur tomorrow.
The FBI’s Joint Terrorism Task Force (JTTF), Austin Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) are investigating this case. Assistant U.S. Attorney Karthik Srinivasan and Michael Galdo are prosecuting this case on behalf of the government.
It is important to note that a criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendant is innocent until proven guilty in a court of law.
Connecticut Mother Convicted of Traveling to Pennsylvania to Attempt to Have Sex with a 14 Year-old BoyRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Sarah Norton, 38, of Jewett City, Connecticut was convicted at trial of attempted enticement of a minor and traveling to engage in illicit sexual conduct with a minor arising from her interactions with a 14 year-old boy.
The defendant, a married mother of three, met the victim while “gaming” online. She then used online and cell phone communications to attempt to seduce the victim into engaging in sexually explicit contact. Norton traveled from her home in Connecticut to Pennsylvania to meet with the boy for sex in a hotel room that she had rented, near where the child lived. Norton’s plan was foiled after the victim’s father became suspicious of the messages the victim had on his cell phone and interrupted the plan.
“Those who sexually target children are among the most depraved in our society,” said U.S. Attorney McSwain. “This is true no matter the gender of the offender or the excuses served up for this type of behavior. We will aggressively pursue and prosecute anyone who targets children for their own sexual gratification.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The defendant faces a maximum possible sentence of lifetime incarceration, a mandatory minimum ten years imprisonment, a mandatory minimum five years supervised release up to lifetime supervised release, a $500,000 fine, a $10,200 in special assessments.
The case was investigated by the Upper Macungie Police Department and the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Sherri A. Stephan.
Coin Broker Sentenced to 54 Months for Defrauding Elderly ClientsRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Jamie Smith, 42, Baldwin, Wisconsin, was sentenced yesterday by U.S. District Judge William Conley to 54 months in federal prison for mail fraud. Smith pleaded guilty to this charge on September 17, 2019.
Smith owned and operated two precious metals brokerages houses in Hudson, Wisconsin from 2014 to 2017, called American Platinum Gold & Silver, Inc., and American Independent Gold & Silver, Inc. These entities were engaged in the business of evaluating, buying, selling and trading coins and precious metals. Through his work at these brokerage houses, Smith contacted individuals concerning their coins and precious metals, and offered to appraise the coins, buy them, trade them, or sell them for the client.
Smith defrauded his clients by misappropriating their money and property. He did this by not honoring his coin transaction agreements with his clients, and failing to tell them he was using their money and property for his own uses and personal expenses.
As part of the fraud scheme, Smith liquidated his clients’ coins and used the funds for purposes other than what he promised. When clients demanded their money or return of their coins, Smith lied and told them that their coins and/or money were in the mail, when in fact, they were not. Smith also took in money from other clients for the purchase of coins, but never shipped the coins. Finally, Smith took in coins from additional clients for purposes of providing an appraisal of the coins, but never returned the coins to them, or paid them for the coins.
When clients began complaining and threatening to sue Smith, he falsely told his clients that he needed two years to pay everybody what he owed them because he suffered a financial loss due to, among other things, an “employee embezzlement of company funds.” In exchange for the time extension, Smith promised he would pay interest, penalties, and any taxes caused by the extension.
FBI agents traced the client funds that went into Smith’s main business bank accounts, which showed that Smith used client monies to pay for charges at fast food restaurants, grocery stores, liquor stores, bars, hotels, ATM cash withdrawals, and his home monthly mortgage and utilities. FBI agents identified 46 victims in this case, and the loss amount was $1,240,299. Many of Smith’s victims were elderly and the stolen coins represented their retirement nest eggs.
Smith previously ran his brokerage houses in Minnesota from 2010 to 2012 with Robert Gundy and Jay Flynn. Gundy and Flynn pleaded guilty to mail fraud in 2014 in Minnesota. Both were sentenced in 2015, with Flynn receiving a prison sentence of 52 months and Gundy receiving a 41-month prison sentence. While Smith was not charged in the Minnesota mail fraud case, he did enter into a civil settlement agreement with the Minnesota Attorney General’s Office and agreed that he and his company would be permanently enjoined in Minnesota from engaging in misleading and deceptive business practices pertaining to the purchase, sale, or appraisal of coins and precious metals for clients.
The charges against Smith were the result of an investigation conducted by the Federal Bureau of Investigation, St. Croix County Sheriff’s Office, River Falls Police Department, and the Minnesota Department of Commerce. The prosecution of the case has been handled by Assistant U.S. Attorney Daniel J. Graber.
Clinton Woman Sentenced to 10 Months in Prison Under Project Guardian for Attempting to Illegally Purchase a FirearmRead the Press Release
Jackson, Miss. – Yolunda Shaunderes Walker, 36, of Clinton, was sentenced today by Senior U.S. District Judge Tom Lee to 10 months in prison, followed by three years of supervised release, for attempting to purchase a firearm by making false statements on a federal background check form, announced U.S. Attorney Mike Hurst and Kurt Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives. Walker was also ordered to pay a $1500 fine.
On June 6, 2019, Walker attempted to purchase a 9mm pistol from a pawn shop in Jackson by completing ATF Form 4473, a federal background check form required for all firearms purchases from firearms dealers. On the form, Walker falsely stated that she was not a habitual user of controlled substances. In, 2017, Walker was charged with possession of marijuana after calling the Clinton Police Department to report that she was holding burglars at gunpoint in her home. Officers investigated and determined there were no burglars in the home and no evidence that a burglary had taken place. The officers found marijuana and a firearm in the home. There were also bullet holes inside the home where it was apparent that Walker had discharged her firearm several times inside the residence. Walker was interviewed by an officer and admitted that she smoke marijuana almost daily. As a habitual user of controlled substances, Walker is legally prohibited from purchasing a firearm.
Walker pled guilty before Judge Lee on September 12, 2019 to making false statements on a federal background check form.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Charles W. Kirkham.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please click here.
Clinton Man Sentenced to 2 Years in Prison Under Project EJECT for Possession of a Firearm by a Convicted FelonRead the Press Release
Jackson, Miss. – Jeremie Markell Torrey, 29, of Clinton, was sentenced today by Senior U.S. District Court Judge Thomas S. Lee to 24 months in federal prison, followed by 3 years of supervised release, for being a convicted felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Michelle A. Sutphin, Special Agent in Charge of the Federal Bureau of Investigation. Torrey was also ordered to pay a $1500.00 fine.
On June 1, 2018, Torrey was a passenger in a vehicle that was stopped by Jackson Police Department officers. When the officer spoke with the driver, he smelled marijuana in the vehicle. Marijuana was found in the vehicle, along with baggies for packaging and a digital scale. Torrey was sitting in the back seat of the car, and a Glock pistol was found on the rear passenger armrest just next to where he was sitting. A Smith & Wesson pistol was also found under the front passenger side seat where another passenger, Clifton Horton, was sitting.
During interviews by the FBI, Torrey admitted to possessing the Glock pistol and Horton admitted to possessing the Smith & Wesson pistol. Both Torrey and Horton are convicted felons and it is illegal for them to possess firearms. Torrey pled guilty before Judge Lee on September 12, 2019, to being a convicted felon in possession of a firearm. Horton is being prosecuted in a separate criminal case by the U.S. Attorney’s Office.
The case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Charles W. Kirkham.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Justice Expel Crime Together." PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Cecil County Pimp Indicted on Federal Charges Including Sex Trafficking of a Child, Production of Child Pornography, and Using a Website to Promote His Prostitution BusinessRead the Press Release
Baltimore, Maryland – A federal grand jury has returned a superseding indictment charging Xavier Lee, a/k/a “X,” age 40, of Elkton, Maryland, on federal charges of using a website to promote and conduct his prostitution business, sex trafficking of a minor, production of child pornography, and interstate transportation for prostitution. The superseding indictment was returned on December 11, 2019, and added the charges for sex trafficking of a minor, production of child pornography, and interstate transportation for prosecution.
The superseding indictment 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; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Chief Matthew J. Donnelly of the Elkton Police Department; and Interim Cecil County State’s Attorney James Dellmyer.
According to the five-count superseding indictment, from 2013 through March 14, 2019, Lee operated an illicit prostitution business for financial gain, including operating a website to advertise and promote the business. The indictment alleges that the website restricted its full content to viewers who logged-in as members and that Lee maintained control over the website’s membership. Lee allegedly required prospective members to send Lee a picture of themselves that included in the picture their identification, such as a driver’s license. Members were provided by Lee or at his direction a log in and password. According to the indictment, website members could then view the “profiles” of the females whom Lee was prostituting, which included photographs, descriptions, and fictitious names. The website also listed the cost of prostitution appointments, described services that were available, and allowed members to post comments. The indictment alleges that Lee’s prostitution business was primarily operated at hotels in Elkton, Maryland, during weekdays, from Monday through Friday, with Lee typically driving a number of females whom he was prostituting to a local hotel in Elkton for prostitution appointments with paying customers. Customers would contact Lee to schedule a prostitution appointment, often calling Lee on his cell phone. To facilitate these prostitution appointments, Lee allegedly rented rooms at a local Elkton hotel.
Further, the superseding indictment alleges that in April 2013 Lee trafficked a minor female for commercial sex acts, from which he financially benefitted. According to the superseding indictment, in September 2013 and May 2014, Lee produced and appeared in two videos documenting the sexual abuse of another minor female victim, who was 15 and 16 years old at the time of the abuse.
If convicted, Lee faces a maximum sentence of five years in federal prison for using a website to promote and conduct his prostitution business; a mandatory minimum of 10 years and up to life in federal prison for sex trafficking of a minor; a mandatory minimum of 15 years and up to 30 years in federal prison for each of two counts of production of child pornography; and a maximum of 10 years in federal prison for interstate transportation for prostitution. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. No court appearance is currently scheduled for Lee.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the FBI, the Maryland State Police, the Elkton Police Department, and the Cecil County State’s Attorney’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Ayn B. Ducao and Daniel A. Loveland, Jr., who are prosecuting the case.
# # #
California Man Indicted on Fentanyl Distribution ChargesRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on December 10, 2019, a federal grand jury returned an indictment against Richard Garner (age: 55) of Rancho Cucamonga, California.
On November 20, 2019, Garner was arrested in Riverside, California based on a criminal complaint filed in the Eastern District of Wisconsin. The criminal complaint alleged, among other things, on July 31, 2019, Garner had a suspected drug-laden package mailed from Redondo Beach, California to a residence in Milwaukee, Wisconsin. The U.S. Postal Inspection Service intercepted the suspicious package, which was later confirmed to contain approximately a kilogram (2.2 pounds) of N-Phenyl-N-[1-(2-phenylethyl)-4-piperidinyl] propanamide, commonly known as fentanyl.
The indictment returned against Garner alleges he conspired to possess with intent to distribute at least 400 grams of fentanyl, contrary to Title 21, United States Code, Section 846; and that he possessed with the intent to distribute at least 400 grams of fentanyl, contrary to Title 21, United States Code, Sections 841(a)(1) and (b)(1)(A)(vi). If convicted of the charges alleged, Garner faces a mandatory ten year term of imprisonment and up to a lifetime term of imprisonment.
Garner is pending arraignment in Milwaukee federal court.
This case was investigated by the North Central High Intensity Drug Trafficking Area (HIDTA), the Drug Enforcement Administration (DEA), and the U.S. Postal Inspection Service (USPIS), and will be prosecuted by Assistant United States Attorney Robert J. Brady, Jr.
An indictment and criminal complaint contain only charges and are not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
# # #
For Additional Information Contact:
Public Information Officer Kenneth Gales 414-297-1700
Follow us on Twitter
Business manager sentenced to prison for crimes involving more than $2 million in Department of Defense contractsRead the Press Release
COLUMBUS, Ohio – A California man was sentenced here today for crimes involving more than $2 million in Department of Defense contracts.
Timothy M. Kelly, 56, of Palos Verdes Estates, Calif., was sentenced to 30 months in prison for conspiring to commit wire fraud and for money laundering. Kelly served as the office manager for Emerson Company, which was owned by Daniel Emerson Norton, 52, formerly of Arlington, Va.
Norton was sentenced on Nov. 18 to 96 months in prison.
Norton and Kelly fraudulently secured approximately $2.2 million in contracts to provide critical parts to the U.S. Department of Defense, which they then filled with defective parts made in China, in violation of the Buy American Act. In total, Norton and Kelly supplied parts that did not meet military requirements for at least 130 contracts.
“The defendants’ actions put our military at risk, which is unfathomable,” IRS Criminal Investigation SAC Bryant Jackson said. “IRS Criminal Investigation followed the flow of money in this case in order to uncover the fraud, and we are proud to work with our law enforcement and military partners to investigate financial transactions that impact our country and our military.”
According to court documents, the Department of Defense (DOD) barred Emerson Company from doing business with the U.S. Government in 2011.
Between 2011 and 2013, Norton continued to recruit people who either already had companies or were willing to start companies to do his bidding on solicitations and contract with the military to provide parts for the U.S. military. When one of the companies was awarded a purchase order, Norton directed the company to send the purchase order to Emerson Company, which would buy and ship the part directly to DoD. Kelly would instruct the company to invoice DoD for the part.
Norton bought the parts from manufacturers in China, even though the contracts required a large number of the parts to be made in the United States.
Until 2012, Kelly primarily conducted spot inspections of parts upon their arrival. In late 2012, Norton took over the responsibility of inspecting a sample part before accepting it from the manufacturer and shipping it to the DoD.
The parts Norton and Kelly provided had dimensional defects, material substitutions, incorrect or missing markings, incorrect finishes, improper shapes or styles, mislabeled packaging or poor workmanship and thus failed to conform to the contract requirements. In some cases, contracts called for precise OEM parts and instead the defendants made defective imitation parts overseas.
They involved a variety of parts used on military weapon systems including aircraft, vessels, vehicles and Nuclear Reactor programs. Many of the parts were considered Critical Application items, which are essential to weapon system performance or operation, or the preservation of life or safety of operating personnel, as determined by military services.
As part of each man’s sentence, Norton and Kelley were ordered to pay $2.38 million in restitution, and forfeit more than $333,000 in the bank account in the name of Emerson Manufacturing Inc. and a $725,000 residence held by Emerson Manufacturing Company in Kihei, Hawaii.
Four other defendants were sentenced this year in a separate scheme to defraud the Department of Defense.
Janay McDonald Ruiz founded JanTech Inc. in 2012 and SoCal Components Place in 2013 with little or no experience, training or education in aircraft, vessel, weapons systems or maintenance. Ruiz’s sister, Raven McDonald, and friends Candace Villar and Niena Johnson, helped operate the companies and their five affiliate companies.
The defendants created and operated four additional companies under different aliases using the names and identities of others after their original companies were debarred in 2013. In one instance, Ruiz used the name and identity of an elderly victim who suffers from dementia. Ruiz opened bank accounts, credit cards and a company to continue to defraud the government.
In sum, the conspiring females created six different companies and entered into more than 1,000 contracts with the government valued more than $2.4 million. The defendants delivered noncompliant, incorrect, used, surplus, refurbished, aftermarket and antiquated parts to the government that were often obtained from unauthorized vendors selling items on the grey and black market. Many of the parts were identified as "Critical Safety Items." Ruiz used her ill-gotten gains to pay for an elaborate wedding in Beverly Hills that included a multi-tiered cake suspended from the ceiling, concert tickets, a Mercedes Benz and designer clothes and shoes.
Each of the four defendants pleaded guilty and has been sentenced to serve time in prison (ranging from 18 to 46 months in prison) and ordered to jointly pay $1.16 million in restitution.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Leigh-Alistair Barzey, Special Agent in Charge, U.S. Department of Defense, Defense Criminal Investigative Services (DCIS), Central Field Office; and Bryant Jackson, Special Agent in Charge, Internal Revenue Service (IRS), Criminal Investigation announced the sentence imposed today by U.S. District Judge Michael H. Watson. Assistant United States Attorneys Jessica W. Knight and J. Michael Marous represented the United States in this case.
# # #
Burlington Man Sentenced for Possessing Child PornographyRead the Press Release
BOSTON – A former civilian employee of the Hanscom Air Force Base was sentenced yesterday in federal court in Boston in connection with possessing thousands of files depicting child pornography, including a manual titled “How to Practice Child Love.”
William Gates, 41, of Burlington, was sentenced by U.S. District Court Judge Leo T. Sorokin to 30 months in prison and five years of supervised release. In April 2019, Gates pleaded guilty to one count of possession of child pornography.
In November 2017, law enforcement in Boston received information from authorities in Australia about an investigation involving an online personal photo site, known for hosting child pornography. Australian investigators observed a user of the site posting photographs of, and comments regarding, an approximately six-year-old boy on a school bus, who the user identified as a child on a field trip they were chaperoning. Australian and U.S. authorities were able to trace the account activity to IP addresses assigned to Gates’s home in Burlington and to Hanscom Air Force Base, where Gates was a civilian employee at the time.
A search of two of his digital devices revealed approximately 51 images of child pornography. More than 900 child pornography files were recovered during a search of Gates’s home. He was subsequently indicted by a Middlesex grand jury for possession of child pornography. Further forensic analysis of one of Gates’ laptops revealed an encrypted volume, where approximately 5,000 images and 440 videos of child pornography were hidden, as well as a document titled, “How to Practice Child Love,” which purports to serve as a guide to teach adults how to have sex with children.
United States Attorney Andrew E. Lelling and Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Valuable assistance was provided by the Middlesex District Attorney’s Office and the Burlington Police Department. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit, prosecuted the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Broward County Fugitive Apprehended and Sentenced to 8 Years in Prison for Possessing Child PornographyRead the Press Release
On December 10, 2019, former fugitive Stanley Simms was sentenced by U.S. District Court Judge Joan A. Lenard to 96 months in prison, to be followed by 40 years of supervised release, for possessing child pornography.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida and George L. Piro, Special Agent in Charge, FBI’s Miami Field Office made the announcement.
In September of 2012, Simms was observed on a peer-2-peer file sharing program sharing child pornography. A number of videos and images of child pornography were downloaded by an undercover FBI agent. On June 2, 2013, a search warrant was executed on Simms residence in Sunrise, Florida. During the execution of the search warrant Simms asked to leave his residence. He was allowed to leave and did not return. A forensic analysis of the electronic devices seized from Simms’ home, pursuant to the search warrant, revealed images and videos of children engaged in sexual activity. Law enforcement made every attempt to locate Simms, however he could not be found.
On June 7, 2013, a warrant was issued for Simms’ arrest. On September 29, 2016, Simms, who had not yet been located, was indicted for possession of child pornography (Case No.16cr60285). In November of 2016, U.S. District Judge Lenard entered an Order transferring Stanley Simms to fugitive status. Law enforcement continued their search for the defendant. Simms was ultimately located in Jamaica. On May 10, 2019, Simms arrived at Miami International Airport and was arrested.
Simms pled guilty to possessing child pornography on September 11, 2019. A restitution hearing has been scheduled for February 24, 2020 at 11:30 a.m., before Judge Lenard.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney Fajardo Orshan commended the investigatory efforts of the FBI’s Child Exploitation Task Force in this matter. This case was prosecuted by Special Assistant U.S. Attorney Catherine Koontz.
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.
Bridgeport Woman Sentenced to Prison for Credit Card Fraud SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that LATRICE M. COLVIN, 33, of Bridgeport, was sentenced yesterday by U.S. District Judge Janet Bond Arterton in New Haven to 30 days of imprisonment, followed by seven months of home confinement and two years of supervised release, for operating a credit card fraud scheme.
According to court documents and statements made in court, between September 2015 and July 2017, Colvin used the internet, including the dark web, to obtain the personal identifying info of numerous victims. She then contacted credit card companies and used the victims’ information to change the mailing address on certain accounts to her own address, and also to apply for and obtain fraudulent credit cards in the names of victims. After fraudulently obtained cards were mailed to her residence, she used them and to buy merchandise in person and online, and to obtain cash advances at ATMs.
Thirty-seven individuals, many of whom were elderly, were victimized through this scheme. Judge Arterton ordered Colvin to pay restitution of $27,718.35 to the financial institutions that covered the loss of the victimized individuals.
On July 9, 2019, Colvin pleaded guilty to one count of mail fraud.
Colvin, who is released on a $25,000 bond, is required to report to prison on February 11, 2020.
This matter was investigated by the U.S. Postal Inspection Service and was prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Boston Man Charged in Large-Scale Insurance Fraud SchemeRead the Press Release
BOSTON – A Boston man was charged today in connection with a scheme to defraud numerous life insurance companies.
Kellerman Jason Zheng, 33, was arrested and charged with one count of mail fraud and one count of wire fraud. Zheng was detained following an initial appearance in federal court in Boston today.
Between December 2016 and March 2018, Zheng allegedly took out at least 24 life insurance policies in his brother’s name. These policies, which carried total coverage limits in excess of $11.5 million, listed Zheng and his parents as the beneficiaries. The charging documents, however, allege that Zheng’s brother died months prior during a visit to China in April 2015. As part of the scheme, Zheng also took steps to make it appear as if his brother were still alive, such as opening and using bank accounts in his brother’s name and renewing his brother’s Massachusetts driver’s license.
Later, Zheng allegedly obtained a false Chinese death certificate, which indicated his brother died in August 2018, and submitted over $5 million in life insurance claims. Zheng admitted during meetings with an undercover agent, who was posing as a claims manager willing to assist in the fraud scheme, that his brother died prior to the inception of the insurance policies.
The charges of mail and wire fraud each carry a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss from the offense. 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; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service; and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office made the announcement today. Assistant U.S. Attorney Jordi de Llano, Deputy Chief of Lelling’s Securities and Financial Frauds Unit, is prosecuting the case.
Boat Captain Apprehended at Crown Bay Marina Pleads Guilty to Possessing Cocaine in St. ThomasRead the Press Release
St. Thomas, USVI –United States Attorney Gretchen C.F. Shappert for the District of the Virgin Islands announced that Jehiel Peña-Estrada pleaded guilty to possession of cocaine yesterday in federal court.
According to court documents filed in the case, on the evening of September 16, 2019, Customs and Border Protection (CBP) Caribbean Air and Marine Operations (CAMOC) began tracking a vessel travelling from the Maternillo area of Puerto Rico towards St. Thomas. The CPB Air and Marine (AMO) unit from St. Thomas located the vessel near the western portion of St. Thomas and followed it into the Crown Bay Marina. CMO agents detained two persons aboard the vessel, including Jehiel Peña-Estrada, later identified as the boat’s captain. The agents conducted a search of the defendant and located approximately $3,840.00 in cash and two baggies containing a white powdery substance later confirmed to contain approximately 15.7 grams of cocaine, a schedule II, narcotic controlled substance.
This case is being investigated by the Department of Homeland Security. It is being prosecuted by Assistant United States Attorney Juan Albino. The defendant will be sentenced at a later date.
Bethel Elementary Principal Arrested and Charged for Attempted Coercion and Enticement of a MinorRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that Christopher Allen Carmichael, 55, a principal working in the Lower Kuskokwim School District in Bethel, Alaska, has been charged with attempted transfer of obscene material to a minor, and attempted coercion and enticement of a minor. Carmichael was arrested yesterday, and is currently awaiting his initial court appearance.
Carmichael became the subject of a federal investigation in November 2019, when the Bethel Police Department contacted the FBI concerning Carmichael’s online activities. During the course of the investigation, Carmichael began engaging in graphic sexual communications with an undercover FBI agent posing as a fictional 13-year-old girl. The complaint alleges that, in a series of text messages in December 2019, Carmichael described in graphic detail several acts he would do to her that were sexually explicit. The complaint alleges that Carmichael continued to remind the fictional 13-year-old girl to delete their messages, and that it was really important they keep referring to her like she was eighteen so that he wouldn’t get into trouble.
If the public has any further information regarding Carmichael’s activities,
please contact Anchorage FBI at (907) 276-4441.
If convicted, Carmichael faces a mandatory minimum sentence of 10 years to life in prison for the most serious charges alleged. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The FBI’s Child Exploitation Task Force, the Bethel Police Department (BPD), the Alaska State Troopers (AST), and the Anchorage Police Department (APD) conducted the investigation leading to the charges in this case. This case is being prosecuted by Assistant U.S. Attorney Kyle Reardon.
The investigation is 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, Project Safe Childhood combines federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Under the Rural Alaska Anti-Violence Enforcement Network (RAAVEN), the U.S. Attorney’s Office is increasing engagement, coordination, and action on public safety in Alaska Native communities.
The charges in the criminal complaint are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Atlanta pharmacy operators convicted of more than $4 million fraudRead the Press Release
ATLANTA –Three defendants who own and operate an Atlanta pharmacy have been convicted by a jury of a multi-million dollar fraud scheme that targeted the U.S. Department of Agriculture’s Special Supplemental Nutrition Program for Women, Infants, and Children (“WIC”) program. Each defendant was convicted of conspiracy and multiple fraud counts for buying WIC vouchers from low-income recipients and then fraudulently seeking reimbursement from the federal government at a higher dollar amount as if they had actually provided nutritious food to those recipients.
“The defendants bought vouchers from low-income recipients and sought refunds from the federal government at a significant profit instead of providing the nutritious foods to infants and children listed on the vouchers,” said U.S. Attorney Byung J. “BJay” Pak. “The defendants’ scheme lined their pockets at the expense of federal taxpayers and the low-income women and children who stood to benefit from the program.”
“The Women, Infants, and Children (WIC) program was created to provide food and nutrition to those who truly need this assistance. Those who are involved in fraud and abuse of USDA feeding programs will be investigated by our office to the fullest extent,” stated United States Department of Agriculture, Office of Inspector General (USDA-OIG), Special Agent-in-Charge Jason Williams. “The USDA-OIG will continue to dedicate investigative resources, working with our law enforcement and prosecutorial partners, in order to protect the integrity of these programs and bring to justice those who commit fraud. We would like to thank the U.S. Attorney’s Office as well as the Georgia Department of Public Health for assisting us with this investigation.”
According to U.S. Attorney Pak, the charges and other information presented in court: Defendants Pauline Mediko Badiki and Ferdinand Mediko were siblings who owned and operated the Poly-Plex Pharmacy, which is located in the Bankhead neighborhood of Atlanta. Defendant Monica Mediko, who was Ferdinand Mediko’s wife, worked there as a pharmacy technician. In 2005, Poly-Plex became an authorized vendor of the WIC program, which is a U.S. Department of Agriculture food grant program administered statewide by the Georgia Department of Public Health. The WIC program provides healthy foods to low-income pregnant women, as well as infants and children up to age 5 who are nutritionally at risk. WIC recipients receive benefits in the form of paper vouchers, which can be exchanged at authorized vendors only for the healthy foods listed on the vouchers. As part of their participation as authorized vendors, the defendants received training on WIC program rules, including the prohibition on buying vouchers.
From at least 2009 through June 2013, the defendants bought WIC vouchers from low-income mothers for a fraction of their face value instead of providing the infant formula and food listed on the vouchers. After purchasing the vouchers, the defendants deposited them into their bank accounts as if they had provided recipients with the healthy foods listed on the vouchers and sought reimbursement from the U.S. Department of Agriculture.
During the time frame of the conspiracy, the defendants deposited tens of thousands of WIC vouchers that resulted in approximately $6.5 million in reimbursements from federal funds, which far surpassed the WIC redemptions from much larger big-box grocery stores located just miles away. Despite the massive amount of WIC redemptions, Poly-Plex Pharmacy had less than $1.3 million in actual expenses for food and infant formula during the same time frame.
Based on defendants’ multi-year scheme, the jury convicted the defendants of wire fraud conspiracy and 12 counts each of wire fraud, theft of government funds, and WIC fraud.
Sentencing for Pauline Mediko Badiki, 55, Ferdinand Mediko, 57, and Monica Mediko, 52, all of Atlanta, Georgia, has not yet been scheduled.
The U.S. Department of Agriculture, Office of the Inspector General is investigating this case.
Assistant U.S. Attorneys Nathan P. Kitchens and Thomas J. Krepp are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Atlanta man pleads guilty to multi-state health care fraud conspiracyRead the Press Release
ATLANTA – Matthew Harrell has pleaded guilty to healthcare fraud and aggravated identity theft charges related to fraudulent claims filed with the Georgia, Florida, and Louisiana Medicaid programs.
“Harrell exploited the Medicaid system and stole funds to be used for mental health treatment,” said U.S. Attorney Byung J. “BJay” Pak. “His fraud is particularly egregious because he replicated his fraud scheme in several states and continued stealing funds after he was released on bond.”
“Whenever someone fraudulently steals funding from federal programs like Medicaid they are not only stealing from the people who deserve it, but also from every American taxpayer,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Harrell and his co-conspirators will now have to pay for their own personal greed.”
“Medical identity theft from providers as well as patients in this case cost taxpayers millions of dollars,” said Derrick Jackson, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services. “We will continue working closely with our State and Federal law enforcement partners to protect our vital government healthcare programs.”
“This guilty plea is part of a years-long effort to uncover and prosecute a group of criminals who were willing to lie, cheat and steal at the expense our state’s youth and taxpayer dollars in Georgia, Florida and Louisiana,” said Georgia Attorney General Chris Carr. “Our Medicaid Fraud Division’s investigators and prosecutors proudly assisted in this effort along with our counterparts in the U.S. Attorney’s Office for the Northern District of Georgia and in Florida, and we will continued this spirit of collaboration to protect the interests of our citizens.”
“This fraudster deployed a scheme to steal the identities of children to defraud Florida and other states’ Medicaid programs out of millions. As a mother, I am especially outraged that this man targeted children, stealing information from summer and football camp registrations, but I am proud of our investigators working with other state Medicaid fraud units and federal authorities to stop the identity theft, protect our Medicaid program and secure a guilty plea for the architect of this nefarious scheme,” said Florida Attorney General Ashley Moody.
“Medicaid welfare fraud not only steals from taxpayers, it also jeopardizes much-needed services for our most vulnerable citizens. The Louisiana Department of Justice and I will continue to work tirelessly with our law enforcement partners to uncover, investigate, and arrest criminals who defraud Medicaid,” said Louisiana Attorney General Jeff Landry.
According to U.S. Attorney Pak, the charges, and other information presented in court: Harrell and co-conspirators owned or worked with companies that purportedly provided mental health counseling and treatment to children and adults. These companies included, Revive Athletics, Inc., R.A. Florida, Inc., Jode Counseling Treatment and Training Services, LLC, 118 Management and Consulting, Inc. and A Brighter Day, LLC. These companies billed over $3.7 million in Medicaid claims, and received approximately $2.5 million based on fraudulent billing.
According to the indictment, Harrell and co-conspirators fraudulently used or stole the Medicaid provider numbers of mental health service providers, including a psychologist and licensed clinical social workers, in Georgia and Florida. Harrell’s companies and related entities then used these identities to submit fraudulent Medicaid claims seeking payment for mental health services that were never provided. The Medicaid member numbers, many of which were assigned to children, were obtained from: summer and football camp registrations; a stolen government document which identified approximately 13,000 Louisiana Temporary Assistance for Needed Families (TANF) recipients; and children who were placed in foster care.
Harrell attempted to conceal the fraud scheme by directing employees and contractors to create fraudulent documentation and forge provider signatures to support the fraudulent billing. Harrell initially started the fraudulent billing scheme in Georgia and replicated the scheme in Florida and then Louisiana before his arrest. While on pretrial release in this case, Harrell opened a new company in Louisiana and continued to fraudulently bill Louisiana Medicaid until his bond was revoked and he was detained pending trial.
Sentencing for Matthew Harrell, 44, of Atlanta, Georgia, Harrell is schedule for March 9, 2020 at 2:30 p.m., before U.S. District Court Judge Steve C. Jones.
Co-defendants Nikki Richardson, 44, of Fairburn, Georgia, and Tomeka Howard, 44, of Decatur, Georgia, pleaded guilty previously to healthcare fraud and aggravated identity charges. On May 30, 2019, Richardson was sentenced to five years and five months in prison, three years of supervised release and ordered to pay restitution in the amount of $1,719,189.00. On the same day, Tomeka Howard was sentenced to three years’ probation, with 18 months of home confinement and ordered to pay restitution in the amount of $732,189.00.
The Georgia State Attorney General’s Medicaid Fraud Control Unit, U.S. Department of Health & Human Services, Office of the Inspector General, Federal Bureau of Investigation and the Medicaid Fraud Control Units for Florida and Louisiana are investigating this case.
Assistant U.S. Attorney Jeffrey Brown, Deputy Chief of the Complex Frauds Section, is prosecuting the case. Georgia Assistant Attorney General Elizabeth Grofic also assisted with the prosecution.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
Armed Drug Trafficker Sentenced to 6 Years in PrisonRead the Press Release
PROVIDENCE – A Providence man found to be in possession of a loaded firearm, ammunition, several bags of crack cocaine, and a large bag of marijuana when stopped by Pawtucket Police for a traffic violation, has been sentenced to 72 months in federal prison.
Scott Arnum, 30, was stopped by Pawtucket Police on September 18, 2017, after he failed to use a turn signal and his vehicle stopped short in front of a police cruiser. As the officer approached the vehicle she smelled a strong odor of marijuana emanating from the vehicle and observed the driver making rapid movements. Arnum complied with the officer’s request to exit the vehicle.
Once out of the vehicle, officers discovered a large bag of marijuana and six bags of crack cocaine inside Arnum’s clothing. A seventh bag fell out of Arnum’s underwear after he was transported to the police station. An inventory of Arnum’s vehicle resulted in the seizure of a loaded 9mm pistol and two loaded 9mm magazines from the vehicle’s glovebox.
Arnum pleaded guilty on September 17, 2019, to possession with the intent to distribute crack cocaine, felon in possession of a firearm, and possession of a firearm in furtherance of drug trafficking.
According to court records, in December 2010, Arnum was sentenced to 84 months in federal prison and 5 years supervised release, having been convicted for possession of crack cocaine with the intent to distribute and felon in possession of a firearm.
In this most recent case, Arnum was sentenced on December 6, 2019, by U.S. District Court Judge William E. Smith to 72 months in federal prison to be followed by 3 years supervised release.
Arnum’s sentence is announced by United States Attorney Aaron L. Weisman, Pawtucket Police Chief Tina Goncalves, Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division Brian D. Boyle, and Special Agent in Charge of the Boston Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives Kelly D. Brady.
This Project Safe Neighborhoods case was prosecuted by Assistant U.S. Attorney Ronald R. Gendron.
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.
Air Force Veteran Sentenced on Charges Arising from False Claims to the Department of Veterans AffairsRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, BRYAN PAUL WINQUIST, 39, of Cordova, Tennessee, was sentenced to 1 month of intermittent confinement and 9 months of house arrest as terms of a 3 year period of probation on a charge of Theft of Government Property. WINQUEST was also ordered to pay a $3,100.00 fine and $11,669.06 in restitution to the United States Department of Veterans Affairs (VA).
Mr. Higdon stated, “To commit a fraud upon the VA is to steal from those who have risked their lives to protect this nation. The limited funds available to the VA are critical to meeting the needs of those who have faithfully served our country and this office will continue to hold accountable all who obtain veterans benefits through fraud and deception. In this case, the defendant completely fabricated a battlefront incident, and injury and falsely claimed to have received a commendation as a result of that incident. Then, adding insult to injury, he stole the benefits and services due to those who have served and been injured. His conduct is shameful, illegal and an affront to those who have served honorably and with distinction and to those who bear the scars of defending this county.”
The United States Department of Veterans Affairs (VA) affords disability compensation to veterans for injuries and illnesses that are service-connected, that is, for conditions incurred or aggravated during military service. To receive disability compensation, a veteran must file a truthful claim alleging specific facts justifying the service-connected nature of the claimed disability.
On or about March 22, 2014, WINQUIST, submitted a claim to the VA alleging that he suffered from Post-Traumatic Stress Disorder (PTSD) arising from a service-connected incident. The claim falsely alleged that on September 18, 2003, WINQUIST was on patrol in the town of Balad, Iraq, as an augmented medic/EMT for an army infantry unit. The claim further alleged that while serving in this unit, WINQUIST was hit with shrapnel from an improvised explosive device (IED) and was shot in the left shoulder during a small arms firefight. WINQUEST further claimed to have “neutralized the threat and continued to assist in the firefight and treat those who were injured…” As a result of these events, WINQUIST claimed to have received the Military Order of the Purple Heart.
In fact, as WINQUIST knew at the time of his March 2014 Claim, he was not injured by an IED or shot in a small-arms firefight in Balad, Iraq. The VA Office of Inspector General (OIG) confirmed this falsehood in a number of ways. A review of service records, and interview of a fellow service member, both showed that the claimed incident did not occur. Although WINQUIST was deployed to Balad, Iraq for one month, he was assigned to the base as a firefighter. A fellow fireman did not recall WINQUIST ever going off base on patrol, and also never knew of any small arms fire or injuries to WINQUIST. Likewise, VA OIG contacted the Air Force Historical Society to query records concerning an alleged IED and firefight incident at the place and time claimed. There was no record of the incident. Likewise, WINQUIST was not a recipient of the Purple Heart.
Nevertheless, based upon the representations in WINQUIST’s March 2014 Claim and supporting documentation, the VA began to pay benefits to WINQUIST under the auspices that WINQUIST suffered from PTSD arising from the alleged 2003 firefight in Balad, Iraq. WINQUIST received the VA benefits by withdrawing them from his bank account in various locations, including the Eastern District of North Carolina. At no time during receipt of these government funds did WINQUIST acknowledge the falsehoods in his claim or seek to return the funds.
On December 13, 2017, WINQUIST admitted during an interview that he fabricated the incident. In particular, he stated, “I was hurting for money, and I made it up.” WINQUIST also stated that he knew it was wrong.
In February of 2019, WINQUIST was charged in a federal indictment. WINQUIST pleaded guilty to Theft of Government Property on August 5, 2019.
The United States Department of Veterans Affairs, Office of the Inspector General investigated this case. Assistant United States Attorney William M. Gilmore represented the United States.
7 Charged in Heroin Trafficking ConspiracyRead the Press Release
PITTSBURGH - Seven residents of Allegheny County, Pennsylvania, have been indicted by a federal grand jury on a charge of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
The one-count Indictment, returned on December 10 and unsealed today, named:
Martise Smith, 27, of Pittsburgh, Pennsylvania;
Lamont Goodwine, Jr., 31, of Carrick, Pennsylvania;
Raymond Jones, 33, of Wilkinsburg, Pennsylvania;
Robert Howard, 33, of Bethel Park, Pennsylvania;
David Joyner, 24, of McKeesport, Pennsylvania;
Duane Henderson, 30, of Pittsburgh, Pennsylvania; and
Mbuitidem Essiet, 23, of Pittsburgh, Pennsylvania.
According to Indictment, from in and around June of 2019, and continuing thereafter to in and around December of 2019, the defendants conspired with each other to distribute and possess with intent to distribute one kilogram or more of heroin, a Schedule I controlled substance.
The law provides for a maximum total sentence of not less than 10 years to a maximum of life in prison, a fine not to exceed $10,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant
Assistant United States Attorney Mark V. Gurzo is prosecuting this case on behalf of the government.
A federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) conducted the investigation leading to the Indictment in this case. The task force is headed by the Federal Bureau of Investigation and is comprised of members drawn from Homeland Security Investigations, the Allegheny County Police Department, the Stowe Township Police Department, the Pittsburgh Bureau of Police, the Office of the Attorney General, the Allegheny County Sheriff's Office, the North Versailles Police Department, the Allegheny County Port Authority Police Department, the Munhall Police Department, and the Pennsylvania State Police. The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
12 Members of Crack Cocaine Distribution Ring Operating in Vicinity of 125th Street and Lexington Avenue in Manhattan Charged with Narcotics and Firearms OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Dermot Shea, the Commissioner of the Police Department for the City of New York (“NYPD”), announced the unsealing of an Indictment charging 12 individuals with operating a crack cocaine distribution ring in the vicinity of 125th Street and Lexington Avenue in Manhattan. Six of the 12 defendants charged in the Indictment were arrested yesterday, and are scheduled to appear before U.S. Magistrate Sarah L. Cave in federal court later today. One of the defendants is already in state custody and will be presented at a later date. Five defendants remain at large. The case has been assigned to U.S. District Court Judge Andrew L. Carter, Jr.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, the defendants were members of a Harlem crack distribution crew that peddled its wares in and around the AK Houses, the Metro-North station at 125th Street, and P.S. 30. Several members are also alleged to have used guns in the plying of their illegal trade. Our thanks to the NYPD for their continued efforts to rid our neighborhoods of illegal drugs and guns.”
NYPD Police Commissioner Dermot Shea said: “This case highlights our success in stopping those offenders who sow violence in our city’s neighborhoods. Working together, our mission to eradicate narcotics and illegal guns is clear and I want to commend our NYPD investigators and partners for targeting violent crime and dismantling it with precise effectiveness.”
According to the allegations in the Indictment[1]:
The defendants are members and associates of a drug trafficking organization (the “AK Houses Crew” or “Crew”) that sold crack cocaine in and around the AK Houses apartment complex, located at East 128th Street in the Harlem neighborhood of Manhattan. During the period 2017 to the present, the AK Houses Crew sold hundreds of grams of crack to customers on the streets of Harlem, and crew members carried and displayed firearms in furtherance of the drug trade. These crew members routinely sold crack in the vicinity of, among other locations, the area of the AK Houses, the Metro-North commuter rail station at East 125th Street, and Public School 30 at East 128th Street.
The leaders of the AK Houses Crew included defendants VAN WHITMORE, a/k/a “V-High,” RONALD NIXON, a/k/a “Jeter,” and BARRY WILLIAMS, a/k/a “Bistro.” WHITMORE, NIXON, and WILLIAMS were responsible for, among other things, obtaining supplies of powder cocaine, converting the cocaine into crack, and pushing that crack to customers on the street through the Crew’s network of street-level dealers. These leaders also maintained order and discipline within the Crew, including by using threats of violence. Other members of the AK Houses Crew, including defendants RODNEY ROBINSON, a/k/a “Stretch,” KAPRIE LAMBERT, a/k/a “Pri,” SHAROD BELL, a/k/a “Rodo,” and IAN HAYLOCK, a/k/a “E,” served the Crew by, among other things, managing and enforcing order within the Crew’s network of street-level crack dealers, and collecting proceeds from their crack sales to finance the Crew’s operations.
The Crew’s street-level crack dealers included defendants MALIK HAWKINS, a/k/a “Leeky,” ABDOUL HANNE, a/k/a “Buylot,” MALIK BREEDLOVE, a/k/a “LB,” TYRELL MURPHY, a/k/a “Fat Cat,” and ANTHONY MCDADE, a/k/a “Pap,” each of whom obtained crack from other members of the Crew and sold the crack to customers on the street. In addition, certain members of the AK Houses Crew, including WHITMORE, ROBINSON, HAYLOCK, BELL, and HAWKINS, used and facilitated the use of firearms in furtherance of the Crew’s crack dealing, including for the purposes of enforcing the collection of payment for drugs and to protect members of the Crew. In the course of the narcotics conspiracy, HAYLOCK and BELL also sold firearms to undercover law enforcement officers in Harlem.
During the execution of a search warrant at NIXON’s house yesterday, law enforcement recovered a firearm, more than 80 grams of heroin belonging to NIXON, and paraphernalia for packaging narcotics for distribution. During the execution of a search warrant at an apartment where BREEDLOVE was arrested yesterday, law enforcement recovered approximately 50 grams of crack cocaine.
The Indictment charges 12 defendants and contains two counts. A chart containing the names, ages, residences, and charges for the defendants is set forth below. The maximum term of imprisonment for both counts is life imprisonment. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
This case is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Juliana Murray and Louis Pellegrino are in charge of the prosecution.
* * *
Defendant
Age
Hometown
Charges
VAN WHITMORE,
a/k/a “V High”
49
Harlem, New York
Narcotics Conspiracy; Firearms Offense
RONALD NIXON,
a/k/a “Jeter”
42
New Rochelle, New York
Narcotics Conspiracy
BARRY WILLIAMS,
a/k/a “Bistro”
42
Bronx, New York
Narcotics Conspiracy
RODNEY ROBINSON,
a/k/a “Stretch”
44
Harlem, New York
Narcotics Conspiracy; Firearms Offense
KAPRIE LAMBERT,
a/k/a “Pri”
22
Harlem, New York
Narcotics Conspiracy
IAN HAYLOCK,
a/k/a “E”
24
Harlem, New York
Narcotics Conspiracy; Firearms Offense
SHAROD BELL,
a/k/a “Rodo”
23
Harlem, New York
Narcotics Conspiracy; Firearms Offense
MALIK HAWKINS,
a/k/a “Leeky”
26
Harlem, New York
Narcotics Conspiracy; Firearms Offense
ABDOUL
HANNE
a/k/a “Buylot”
27
Harlem, New York
Narcotics Conspiracy
MALIK BREEDLOVE,
a/k/a “LB”
23
Harlem, New York
Narcotics Conspiracy
TYRELL MURPHY,
a/k/a “Fat Cat”
21
Harlem, New York
Narcotics Conspiracy
ANTHONY MCDADE,
a/k/a “Pap”
28
Bronx, New York
Narco
###
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment set forth herein constitute only allegations and every fact described should be treated as an allegation.
$1.7+ Million in DOJ Grants Awarded to Fight the Opioid Crisis in the Middle District of GeorgiaRead the Press Release
MACON, Ga. – Athens and Columbus, Georgia governments were awarded significant federal funding to support their efforts combatting drugs and crime, announced Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. The Justice Department’s Office of Justice Programs (OJP) today announced awards totaling more than $333 million to help communities across the nation affected by the opioid crisis. In the Middle District of Georgia, the Unified Government of Athens-Clarke County was awarded $600,000 under the Justice and Mental Health Collaboration Program. The Columbus Consolidated Government received a $735,360 grant under the Family Drug Court Program and a $400,000 grant under the Juvenile Drug Treatment Court Program. In addition, the Criminal Justice Coordinating Council, which supports law enforcement efforts across Georgia, received $2,000,000 under the Adult Drug Court and Veterans Treatment Court Discretionary Grant Program. Another statewide impact recipient is the Boys and Girls Clubs of America, awarded $1,250,000 under the Statewide and Regional Mentoring Initiatives for Youth Impacted by Opioids, one of only four states to receive this funding targeting youth. Information about these programs and awards announced today is available here.
“The opioid crisis has destroyed far too many lives and left too many Americans feeling helpless and hopeless,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “This epidemic—the most deadly in our nation’s history—is introducing new dangers and loading public health responsibilities onto the public safety duties of our law enforcement officers. The Department of Justice is here to support them during this unprecedented and extremely challenging time.”
“These grants reflect the Department of Justice’s commitment to helping local communities fight the opioid crisis,” said U.S. Attorney Charlie Peeler. “As our state continues to grapple with opioid abuse, these grants will support effective treatment for abusers, develop stronger court programs and bolster mentoring for young people. Thank you to our law enforcement partners, local government, and community leaders for your help fighting this historic epidemic.”
With more than 130 people dying from opioid-related overdoses every day, the Department of Justice has made fighting addiction to opioids—including heroin and fentanyl—a national priority. The Trump Administration is providing critical funding for a wide range of activities—from preventive services and comprehensive treatment to recovery assistance, forensic science services and research—to help save lives and break the cycle of addiction and crime.
The awards announced today support an array of activities designed to reduce the harm inflicted by these dangerous drugs. Grants will help law enforcement officers, emergency responders and treatment professionals coordinate their response to overdoses. Funds will also provide services for children and youth affected by the crisis and will support the nationwide network of drug and treatment courts. Other awards will address prescription drug abuse, expand the capacity of forensic labs and support opioid-related research.
For more information about OJP awards, visit the OJP Awards Data webpage. The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training and technical assistance, and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Wednesday 11 December 2019
Yankton Man Sentenced in Fentanyl Distribution ConspiracyRead the Press Release
United States Attorney Ron Parsons announced that a Yankton, South Dakota, man convicted of conspiring to distribute 40 grams or more of fentanyl was sentenced on December 9, 2019, by U.S. District Judge Karen E. Schreier.
Fletcher Stark, age 23, was sentenced to 30 months in federal prison, to be followed by 3 years of supervised release. He was also ordered to pay $100 to the Federal Crime Victims Fund.
Stark was indicted with others for conspiracy to distribute a mixture and substance containing fentanyl, a Schedule II controlled substance, by a federal grand jury on February 5, 2019. He pled guilty on August 21, 2019.
Stark was obtaining fentanyl from co-conspirators in Minneapolis for redistribution in South Dakota.
This case was investigated by Homeland Security Investigations, Drug Enforcement Administration, and the police departments of Vermillion, Yankton, and Sioux Falls, South Dakota. Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
Stark was immediately turned over to the custody of the U.S. Marshals Service.
Woman from Santa Fe faces federal charges of illegally cashing more than $100,000 in checks drawn on U.S. TreasuryRead the Press Release
ALBUQUERQUE, N.M. – Zayra Olivia Alvarado, 36, of Santa Fe, New Mexico, appeared in federal court in Albuquerque on December 6 for an arraignment on an indictment charging her with theft of public money from the United States.
A grand jury returned an indictment against Alvarado on November 20. The indictment charged Alvarado with 100 counts of allegedly cashing checks drawn on the U.S. Department of Treasury each in the amount $1000 or more. Alvarado allegedly committed these offenses between February 17, 2015, and October 26, 2015, causing a loss to the Treasury of hundreds of thousands of dollars.
Alvarado is currently out of custody pending trial. She faces up to 10 years in prison for each offense. An indictment is only an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
The Internal Revenue Service Criminal Investigation investigated this case. Assistant U.S. Attorney Kimberly A. Brawley is prosecuting the case.
Westbrook Man Sentenced to Seven Years in Prison for Two Bank RobberiesRead the Press Release
Portland, Maine: A Westbrook man was sentenced yesterday in federal court in Portland for committing two bank robberies, the second of which he committed while on pretrial release for the first, U.S. Attorney Halsey B. Frank announced.
U.S. District Court Judge Nancy Torresen sentenced Aaron West, 38, to seven years in prison and three years of supervised release. He was also ordered to pay $16,250 in restitution to Cumberland County Federal Credit Union and $1,140 in restitution to Norway Savings Bank. West pleaded guilty to both bank robberies on June 28, 2019.
According to court records, on January 31, 2018, West entered the Cumberland County Federal Credit Union in Falmouth. Holding his right hand in his sweatshirt pocket in a manner consistent with carrying a concealed weapon, he approached a teller and told her, “this is a robbery, no dye packs.” He obtained $16,250 in the robbery. He was subsequently arrested for the robbery and a federal grand jury indicted him in November 2018. He was released pending trial. In early March 2019, he became a fugitive from justice because he violated his pretrial release conditions and a warrant issued for his arrest.
On March 18, 2019, while in fugitive status, West entered a Norway Savings Bank in Portland. He held his right hand in his sweatshirt pocket, in a manner consistent with carrying a concealed weapon. He told the teller, “give me the money,” and after first receiving a small amount of money, demanded “more” and threatened to “start shooting.” He obtained $1,400 in the robbery.
The FBI and the Falmouth, Portland and Westbrook Police Departments investigated the case.
U.S. Attorneys Say Strike Force Targets Drugs, Violence in Kansas City MetroRead the Press Release
KANSAS CITY – A new Kansas City Metro OCDETF Strike Force is targeting drug traffickers and violent criminals on both sides of the state line, U.S. Attorney Stephen McAllister in Kansas and U.S. Attorney Tim Garrison in the Western District of Missouri announced today.
McAllister and Garrison held a joint press conference to announce that local, state, and federal law enforcement officers are working together on Strike Force cases.
“The Strike Force already is conducting investigations and filing charges against the criminals who are poisoning our community with drugs and violence,” McAllister said. “Crime does not stop at the state line and neither does the Strike Force.”
“This new Strike Force presents a united front against drug trafficking and violent crime throughout the metropolitan area,” Garrison said. “We are marshaling agents and officers from both Missouri and Kansas under the same roof and equipping them with additional investigative resources to better protect our community from the violent scourge of drug trafficking.”
The Strike Force, which launched in April 2019, is targeting drug trafficking organizations that are making the streets of metro Kansas City less safe and more violent by importing large quantities of methamphetamine, heroin, fentanyl, and other drugs from Mexico and elsewhere.
JOINS OCDETF STRIKE FORCES NATIONWIDE
The Justice Department’s Organized Crime and Drug Enforcement Task Forces (OCDETF) oversees the Strike Force initiative. Kansas City joins OCDETF Strike Forces in major cities including Atlanta, Baltimore, Boston, Chicago, Cleveland, Denver, El Paso, Houston, Los Angeles, New York, North Texas, Phoenix, Sacramento, San Diego, San Juan, Southeast Michigan, and Tampa.
The OCDETF Strike Force in metro Kansas City includes members from the FBI, DEA, and ATF, as well as the police departments in Kansas City, Kansas, and Kansas City, Missouri, the Jackson County Drug Task Force, the U.S. Marshals Service, Homeland Security Investigations, the Internal Revenue Service, the Kansas Bureau of Investigation, the U.S. Secret Service, and the U.S. Postal Inspection Service. Federal prosecutors from the U.S. Attorney’s Offices in Kansas and the Western District of Missouri will prosecute the Strike Force’s cases in federal court.
MISSION: DISRUPT, DISMANTLE CRIMINAL ORGANIZATIONS
The goal of the Strike Force is to disrupt and dismantle criminal organizations, including gangs, cartels, and others that are trafficking in drugs and firearms, or engaging in money laundering.
Participating agencies have agreed to assign full-time personnel to the Strike Force. Police officers, federal agents, and prosecutors are working together under one roof. For security reasons, the location will not be made public.
An FBI Assistant Special Agent in Charge manages the Strike Force’s three teams: a major crime squad, a major threat squad, and a fugitive squad. A Strike Force Executive Council, whose members include both U.S. Attorneys, will oversee the Strike Force.
CASES FILED
As an example of the work of the Kansas City Metro OCDETF Strike Force, an investigation across state lines resulted in separate indictments being brought in both Kansas and Missouri last month.
In Kansas City, Kansas, the Strike Force investigated a case (U.S. v. Jose Manuel Delgado-Hernandez, et al.) that resulted in federal drug conspiracy charges against six men who are accused of distributing methamphetamine, heroin, and fentanyl that came to Kansas through a pipeline that begins in Mexico.
The indictment alleges the organization’s distributors at the street level were operating within 1,000 feet of Kensington Park playground and Wyandotte High School.
During the investigation, law enforcement seized 19 pounds of methamphetamine, 66 pounds of marijuana, and firearms, including handguns and a military style rifle.
In Kansas City, Missouri, the parallel Strike Force investigation resulted in a case (U.S. v. Christie D. Holloway, et al) that included federal drug conspiracy charges against four defendants who are accused of conspiring to distribute methamphetamine. One of the defendants is accused of illegally possessing a firearm
Other Strike Force cases include:
- U.S. v. Luis Martinez-Carrango, et al.: Agents seized more than 220 pounds of methamphetamine when they served a search warrant at a house in Kansas City, Kansas. Fourteen defendants were charged in a 33-count grand jury indictment. During the investigation, the agents also seized approximately 140 gallons of liquid methamphetamine being transported from Douglas County, Kansas, to Lees Summit, Missouri.
- US v. Lionel Simpson: In November, Simpson was sentenced to 10 years in federal prison after pleading guilty to selling crack cocaine to undercover agents during meetings in grocery store parking lots and gas stations in Kansas City, Kansas. He was arrested with a backpack containing gloves, a mask, a gun, and a 50-round magazine. He said he kept it in case he ever ran into a rival gang member who was responsible for the death of his sister.
- U.S. v. Jovanny Medina, et al.: Medina was indicted Oct. 23, 2019. The indictment alleges he was arrested during the unloading of 35 pounds of methamphetamine from a car hauler truck in the parking lot of a Dollar General in Kansas City, Kansas.
- U.S. v. Ladele D. Smith, et al.: Twenty defendants were indicted for their roles in a drug-trafficking conspiracy. Approximately 200 federal agents and local law enforcement officers were involved in an Oct. 2, 2019, operation in which most of the defendants were arrested. During the operation, officers seized 23 firearms, heroin and other illegal drugs, and $75,000 in cash. The indictment alleges the defendants participated in a conspiracy to distribute at least a kilogram of heroin, as well as cocaine, crack cocaine, oxycodone, codeine, and marijuana.
The charges contained in these indictments are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
STATEMENTS FROM PARTNERS
Agency officials who are working with the Strike Force made the following statements:
- Timothy Langan, FBI Special Agent Charge, Kansas City Division: “The creation of the KC Metro OCDETF Strike Force provides a collaborative effort, serving as a force multiplier to effectively protect the public, by targeting the command structure of major international and interstate drug organizations. We have already seen success with the establishment of this task force locally, through the recent indictment and arrest of multiple subjects in an ongoing drug conspiracy investigation in the Western District of Missouri. That investigation, as well as future investigations, will aim at dismantling, disrupting and prosecuting the hierarchy of these organizations through a concerted effort of federal, state and local law enforcement.”
- Erik Smith, DEA Assistant Special Agent in Charge: “The DEA Kansas City District Office is pleased to collaborate with our federal, state, and local partners in this Strike Force endeavor. The prevalence of drugs and violence is a threat to this community, and a concerted focus on addressing these threats is required from all federal, state, and local law enforcement. We are committed to doing our part.”
- Marino Vidoli, ATF Special Agent in Charge: “ATF’s unique expertise in using crime gun intelligence to identify those involved in gun crime and our experience in investigating how firearms are acquired by violent criminals in our communities, allows us to be an integral part of the Strike Force efforts to find, and hold accountable those responsible for violent crime. The Strike Force strengthens ATF’s long standing tradition of partnering with federal, state and local law enforcement agencies to reduce violence and make our communities safer.”
- Richard Smith, Chief of the Kansas City, Missouri, Police Department: “Drugs and violence have no boundaries in Kansas City or the metropolitan area. We look forward to continuing our partnership with the Strike Force to combat violence and provide a safer community for all. Working together provides additional tools and resources to identify violent offenders and remove them from our streets.”
- Michael York, Chief of the Kansas City, Kansas, Police Department: “The Kansas City, Kansas, Police Department is looking forward to working with our federal partners and local agencies with the hopes of reducing violent crime not just in our city but the entire metropolitan area. The new Metro Strike Force will be a force multiplier for agencies that are dealing with violent crime such as homicides and drive by shootings. We have already experienced success in the short time that Strike Force has been operational.”
- Ron Miller, U.S. Marshal of the District of Kansas, and Mark James, U.S. Marshal of the Western District of Missouri: “The U.S. Marshals Service looks forward to combining its fugitive targeting expertise with the overall significant drug and violent crime investigations pursued by the KC Metro OCDETF Strike Force. Together, we are a stronger force against criminal organizations impacting the Greater Kansas City area.”
- Paul Shade, U.S. Postal Inspection Service: “Our agency will assist in any matters that involve criminal activity while using the USPS to further their crimes. This includes but is not limited to the trafficking of narcotics and narcotics related U.S. currency being shipped through the mail.”
- Karl Stiften, IRS-Criminal Investigation Special Agent in Charge: “IRS-Criminal Investigation (CI) is a proud participant of the KC Metro OCDETF Strike Force. CI special agents contribute our financial investigative skills to track and seize proceeds of illegal activities from the criminals involved. Pooling the skills and resources of each agency makes a formidable team.”
The prosecutions announced in this release were brought as a part of the Department of Justice’s OCDETF Co-located Strike Forces Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations against a continuum of priority targets and their affiliate illicit financial networks. These prosecutor-led, co-located Strike Forces capitalize on the synergy created through the long-term relationships that can be forged by agents, analysts, and prosecutors who remain together over time, and they epitomize the model that has proven most effective in combating organized crime.
OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s illicit drug reduction strategy. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
U.S. Attorneys Say Strike Force Targets Drugs, Violence in Kansas City MetroRead the Press Release
U.S. Attorney Tim Garrison (left) announced the new KC Metro Strike Force to target drug traffickers and violent criminals on both sides of the state line. Garrison was joined by U.S. Attorney Stephen McAllister (District of Kansas, center), Adam Cohen, director of the Executive Office of the Organized Crime Drug EnforcementTask Forces (right), and law enforcement partners from 13 agencies.KANSAS CITY – A new Kansas City Metro OCDETF Strike Force is targeting drug traffickers and violent criminals on both sides of the state line, U.S. Attorney Stephen McAllister in Kansas and U.S. Attorney Tim Garrison in the Western District of Missouri announced today.
McAllister and Garrison held a joint press conference to announce that local, state, and federal law enforcement officers are working together on Strike Force cases.
“The Strike Force already is conducting investigations and filing charges against the criminals who are poisoning our community with drugs and violence,” McAllister said. “Crime does not stop at the state line and neither does the Strike Force.”
“This new Strike Force presents a united front against drug trafficking and violent crime throughout the metropolitan area,” Garrison said. “We are marshaling agents and officers from both Missouri and Kansas under the same roof and equipping them with additional investigative resources to better protect our community from the violent scourge of drug trafficking.”
The Strike Force, which launched in April 2019, is targeting drug trafficking organizations that are making the streets of metro Kansas City less safe and more violent by importing large quantities of methamphetamine, heroin, fentanyl, and other drugs from Mexico and elsewhere.
JOINS OCDETF STRIKE FORCES NATIONWIDE
The Justice Department’s Organized Crime and Drug Enforcement Task Forces (OCDETF) oversees the Strike Force initiative. Kansas City joins OCDETF Strike Forces in major cities including Atlanta, Baltimore, Boston, Chicago, Cleveland, Denver, El Paso, Houston, Los Angeles, New York, North Texas, Phoenix, Sacramento, San Diego, San Juan, Southeast Michigan, and Tampa.
The OCDETF Strike Force in metro Kansas City includes members from the FBI, DEA, and ATF, as well as the police departments in Kansas City, Kansas, and Kansas City, Missouri, the Jackson County Drug Task Force, the U.S. Marshals Service, Homeland Security Investigations, the Internal Revenue Service, the Kansas Bureau of Investigation, the U.S. Secret Service, and the U.S. Postal Inspection Service. Federal prosecutors from the U.S. Attorney’s Offices in Kansas and the Western District of Missouri will prosecute the Strike Force’s cases in federal court.MISSION: DISRUPT, DISMANTLE CRIMINAL ORGANIZATIONS
The goal of the Strike Force is to disrupt and dismantle criminal organizations, including gangs, cartels, and others that are trafficking in drugs and firearms, or engaging in money laundering.
Participating agencies have agreed to assign full-time personnel to the Strike Force. Police officers, federal agents, and prosecutors are working together under one roof. For security reasons, the location will not be made public.
An FBI Assistant Special Agent in Charge manages the Strike Force’s three teams: a major crime squad, a major threat squad, and a fugitive squad. A Strike Force Executive Council, whose members include both U.S. Attorneys, will oversee the Strike Force.
CASES FILED
As an example of the work of the Kansas City Metro OCDETF Strike Force, an investigation across state lines resulted in separate indictments being brought in both Kansas and Missouri last month.
In Kansas City, Kansas, the Strike Force investigated a case (U.S. v. Jose Manuel Delgado-Hernandez, et al.) that resulted in federal drug conspiracy charges against six men who are accused of distributing methamphetamine, heroin, and fentanyl that came to Kansas through a pipeline that begins in Mexico.
The indictment alleges the organization’s distributors at the street level were operating within 1,000 feet of Kensington Park playground and Wyandotte High School.
During the investigation, law enforcement seized 19 pounds of methamphetamine, 66 pounds of marijuana, and firearms, including handguns and a military style rifle.
In Kansas City, Missouri, the parallel Strike Force investigation resulted in a case (U.S. v. Christie D. Holloway, et al) that included federal drug conspiracy charges against four defendants who are accused of conspiring to distribute methamphetamine. One of the defendants is accused of illegally possessing a firearm
Other Strike Force cases include:
U.S. v. Luis Martinez-Carrango, et al.: Agents seized more than 220 pounds of methamphetamine when they served a search warrant at a house in Kansas City, Kansas. Fourteen defendants were charged in a 33-count grand jury indictment. During the investigation, the agents also seized approximately 140 gallons of liquid methamphetamine being transported from Douglas County, Kansas, to Lees Summit, Missouri.
US v. Lionel Simpson: In November, Simpson was sentenced to 10 years in federal prison after pleading guilty to selling crack cocaine to undercover agents during meetings in grocery store parking lots and gas stations in Kansas City, Kansas. He was arrested with a backpack containing gloves, a mask, a gun, and a 50-round magazine. He said he kept it in case he ever ran into a rival gang member who was responsible for the death of his sister.
U.S. v. Jovanny Medina, et al.: Medina was indicted Oct. 23, 2019. The indictment alleges he was arrested during the unloading of 35 pounds of methamphetamine from a car hauler truck in the parking lot of a Dollar General in Kansas City, Kansas.
U.S. v. Ladele D. Smith, et al.: Twenty defendants were indicted for their roles in a drug-trafficking conspiracy. Approximately 200 federal agents and local law enforcement officers were involved in an Oct. 2, 2019, operation in which most of the defendants were arrested. During the operation, officers seized 23 firearms, heroin and other illegal drugs, and $75,000 in cash. The indictment alleges the defendants participated in a conspiracy to distribute at least a kilogram of heroin, as well as cocaine, crack cocaine, oxycodone, codeine, and marijuana.The charges contained in these indictments are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
STATEMENTS FROM PARTNERS
Agency officials who are working with the Strike Force made the following statements:
Timothy Langan, FBI Special Agent Charge, Kansas City Division: “The creation of the KC Metro OCDETF Strike Force provides a collaborative effort, serving as a force multiplier to effectively protect the public, by targeting the command structure of major international and interstate drug organizations. We have already seen success with the establishment of this task force locally, through the recent indictment and arrest of multiple subjects in an ongoing drug conspiracy investigation in the Western District of Missouri. That investigation, as well as future investigations, will aim at dismantling, disrupting and prosecuting the hierarchy of these organizations through a concerted effort of federal, state and local law enforcement.”
Erik Smith, DEA Assistant Special Agent in Charge: “The DEA Kansas City District Office is pleased to collaborate with our federal, state, and local partners in this Strike Force endeavor. The prevalence of drugs and violence is a threat to this community, and a concerted focus on addressing these threats is required from all federal, state, and local law enforcement. We are committed to doing our part.”
Marino Vidoli, ATF Special Agent in Charge: “ATF’s unique expertise in using crime gun intelligence to identify those involved in gun crime and our experience in investigating how firearms are acquired by violent criminals in our communities, allows us to be an integral part of the Strike Force efforts to find, and hold accountable those responsible for violent crime. The Strike Force strengthens ATF’s long standing tradition of partnering with federal, state and local law enforcement agencies to reduce violence and make our communities safer.”
Richard Smith, Chief of the Kansas City, Missouri, Police Department: “Drugs and violence have no boundaries in Kansas City or the metropolitan area. We look forward to continuing our partnership with the Strike Force to combat violence and provide a safer community for all. Working together provides additional tools and resources to identify violent offenders and remove them from our streets.”
Michael York, Chief of the Kansas City, Kansas, Police Department: “The Kansas City, Kansas, Police Department is looking forward to working with our federal partners and local agencies with the hopes of reducing violent crime not just in our city but the entire metropolitan area. The new Metro Strike Force will be a force multiplier for agencies that are dealing with violent crime such as homicides and drive by shootings. We have already experienced success in the short time that Strike Force has been operational.”
Ron Miller, U.S. Marshal of the District of Kansas, and Mark James, U.S. Marshal of the Western District of Missouri: “The U.S. Marshals Service looks forward to combining its fugitive targeting expertise with the overall significant drug and violent crime investigations pursued by the KC Metro OCDETF Strike Force. Together, we are a stronger force against criminal organizations impacting the Greater Kansas City area.”
Paul Shade, U.S. Postal Inspection Service: “Our agency will assist in any matters that involve criminal activity while using the USPS to further their crimes. This includes but is not limited to the trafficking of narcotics and narcotics related U.S. currency being shipped through the mail.”
Karl Stiften, IRS-Criminal Investigation Special Agent in Charge: “IRS-Criminal Investigation (CI) is a proud participant of the KC Metro OCDETF Strike Force. CI special agents contribute our financial investigative skills to track and seize proceeds of illegal activities from the criminals involved. Pooling the skills and resources of each agency makes a formidable team.”The prosecutions announced in this release were brought as a part of the Department of Justice’s OCDETF Co-located Strike Forces Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations against a continuum of priority targets and their affiliate illicit financial networks. These prosecutor-led, co-located Strike Forces capitalize on the synergy created through the long-term relationships that can be forged by agents, analysts, and prosecutors who remain together over time, and they epitomize the model that has proven most effective in combating organized crime.
OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s illicit drug reduction strategy. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.