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28 January 2020
It’s Time for a Permanent Ban on Fentanyl AnaloguesRead the Press Release
Joint Statement by California’s United States Attorneys: Robert S. Brewer, Southern District; Nicola T. Hanna, Central District; David L. Anderson, Northern District; McGregor W. Scott, U.S. Attorney, Eastern District
In 2017, almost 50,000 Americans died from opioid overdoses. In California alone, there were 2,428 fatal opioid overdoses in 2018. And it’s getting worse. In San Francisco and Los Angeles Counties, for instance, opioid fatalities have increased by 54% and 41%, respectively, since 2016. San Diego County and the Central Valley are also experiencing unprecedented levels of fatal opioid overdoses. This is a crisis, and illicitly produced fentanyl is largely responsible.
To fight this epidemic, law enforcement must have all the necessary tools at their disposal. One such tool is the Drug Enforcement Administration’s (DEA) 2018 order making all fentanyl-related drugs illegal in the United States. Unfortunately, that order was temporary and will expire in less than two weeks. The Senate recently passed bipartisan legislation approving a 15-month extension of the temporary order. While this is a step in the right direction, and the House should pass the Senate’s bill, a longer term solution is needed. We need a permanent ban on all fentanyl-like drugs.
Illicit fentanyl is manufactured in labs in China and Mexico and smuggled into the United States. It is 50 times more powerful than heroin and 100 times more powerful than morphine. So powerful, in fact, that only a couple milligrams – the size of a few grains of salt – can kill the average person.
Fentanyl, however, is unique. Because it is made in labs using chemicals, its structure is easily manipulated. And the drug cartels that manufacture and traffic this synthetic poison into our neighborhoods understand American laws and know how to exploit them. They know that by changing a single molecule in the chemical structure of fentanyl, they have essentially created a new drug. One that, unlike fentanyl, is not illegal in the United States. These drugs, known as “fentanyl analogues,” do as fentanyl does: create more addicts and kill more Americans. The analogues – which can be up to 100 times more potent than fentanyl and 10,000 times more potent than morphine – will become legal if Congress fails to act.
The DEA’s 2018 decision to temporarily schedule – that is, to make illegal – all fentanyl-related substances was a response to the extraordinary legal loophole exploited by drug traffickers. In April 2019, China also outlawed all fentanyl-related substances. This is extraordinary progress, with one caveat. Unlike China’s law, the United States’ has an expiration date.
On Feb. 6, 2020, the DEA’s temporary order expires, and all drugs seized by U.S. investigators over the past two years that have tested positive as fentanyl analogues will no longer be illegal. If Congress fails to pass the legislation it will have a dramatic impact not just on the prosecutors and law enforcement officers who spend their lives investigating and prosecuting drug dealers, but on communities already hard hit by the opioid epidemic, many of which are right here in California.
Despite the tireless efforts of law enforcement, California continues to be a main thoroughfare for fentanyl and fentanyl-like drugs arriving from China and Mexico. In 2019, federal law enforcement agents seized about three-quarters of a ton of fentanyl at the six ports of entry we share with Mexico and in all places in between. That’s 20 percent more than in 2018. And our federal resources are not infinite; we need all the help we can get. Passing this legislation would provide invaluable support to us as prosecutors and the entire law enforcement community as we continue to combat the opioid crisis in California and throughout America.
A number of organizations have voiced opposition to the proposed legislation, arguing that the bill does not “embrace public health approaches to the overdose crisis.” We agree that a comprehensive approach to the crisis is needed, and a permanent fentanyl analogue ban should be viewed as part of a holistic effort. But time is running out: there is no doubt that drug traffickers are eagerly awaiting the temporary order’s expiration to start flooding our communities with these dangerous drugs. The passage of this legislation is quite literally a matter of life and death.
There should be nothing partisan about declaring fentanyl analogues illegal. There is certainly nothing partisan about saving lives and bringing justice to those who profit from addiction and death. For the safety of our communities, we urge Congress to pass legislation making permanent the DEA’s temporary scheduling of all fentanyl-related drugs.
It’s Time for a Permanent Ban on Fentanyl AnaloguesRead the Press Release
In 2017, almost 50,000 Americans died from opioid overdoses. To put that number into perspective, the amount of American lives lost due to opioid overdoses is nearly three times the population of the city of Martinsburg. It is apparent that West Virginia has been particularly hard hit by opioids. In fact, West Virginia has the most opioid overdose fatalities per capita in the country. Many of these overdose deaths are due to illicitly-produced fentanyl and its analogues. One such death was at the center of a trial that just finished in Clarksburg Federal Court. The jury found the defendant guilty of providing the deadly fentanyl to the young West Virginia woman, age 20. Her body was found dismembered in a Georgia landfill, once again demonstrating the depths of depravity those who deal these poisons will go.
Fentanyl is a powerful synthetic opioid available lawfully only by a prescription. It has legitimate medical uses – primarily to manage severe pain and in palliative care – and is classified as a Schedule II drug by the Controlled Substances Act. According to the Drug Enforcement Administration (DEA), abuse and/or recreational use of pharmaceutically-prescribed fentanyl occurs on a small scale. It is illicit fentanyl and its analogues that are responsible for most overdose deaths.
Illicit fentanyl is manufactured in labs in China and Mexico and smuggled into the United States. It is 50 times more powerful than heroin and 100 times more powerful than morphine. So powerful, in fact, that only a couple milligrams – the size of a few grains of salt – can kill the average person.
Because fentanyl is made in labs using chemicals, its structure is easily manipulated. Drug cartels that manufacture and traffic this poison understand American laws and know how to exploit them. They know that by changing a single molecule in the chemical structure of fentanyl, they have essentially created a new drug. One that, unlike fentanyl, is not permanently illegal in the United States.
These drugs, known as “fentanyl analogues,” do as fentanyl does: creating more addicts and killing more Americans. These analogues can be up to 100 times more potent than fentanyl and 10,000 times more potent than morphine. Fentanyl and its analogues are increasingly being pressed into pill form, causing extreme danger to users who might not know the true nature of the substance.
In West Virginia, fentanyl and its analogues were involved in 531 resident overdose deaths in 2018 – accounting for 41% of all fatal overdoses. Two of the hardest hit counties – Berkeley and Monongalia – are in the Northern District of West Virginia.
To address the crisis of opioid overdose deaths, law enforcement must have all the necessary tools at their disposal. One such tool is the DEA’s 2018 order, which classifies all illicit fentanyl-related drugs as Schedule I drugs. Unfortunately, that order was temporary and will expire in less than two weeks.
On January 17, 2020, the Senate passed the Temporary Reauthorization and Study of the Emergency Scheduling of Fentanyl Analogues Act. This bipartisan legislation, with the support of Senate Majority Leader Mitch McConnell, approved a 15-month extension of DEA’s temporary scheduling order. This is certainly a step in the right direction, and the House should follow suit and pass the Senate’s bill.
However, a longer term legislative solution is needed. A permanent ban on all fentanyl analogues would send a strong message to the cartels and sophisticated drug operations that peddle illicit fentanyl that the United States is serious about addressing this crisis. It would also protect the public by permanently placing these drugs where they rightly belong - in Schedule I of the Controlled Substances Act, which is reserved for the most dangerous of drugs. There should be nothing partisan about making these deadly drugs permanently illegal. The issue of life and death transcends party lines.
On Feb. 6, 2020, the DEA’s temporary order expires. If Congress fails to pass legislation it will have a dramatic impact not just on the prosecutors and law enforcement officers who spend their lives investigating and prosecuting drug dealers, but also on communities already hard hit by the opioid epidemic, many communities which are right here in the Northern District of West Virginia.
There is little doubt that drug traffickers are eagerly awaiting the temporary order’s expiration to start flooding our communities with these dangerous drugs. The passage of this legislation is quite literally a matter of life and death.
Despite recent reductions in opioid-related overdose deaths in West Virginia, prosecuting drug dealers – particularly those who peddle heroin and fentanyl and profit from the misery of addiction and death– remains a top priority for my office. But our federal resources are not infinite; we need all the help we can get. Passing this legislation would provide invaluable support to the entire law enforcement community as we continue to combat the opioid crisis.
-U.S. Attorney Bill Powell, Northern District of West Virginia
Iowa Woman Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Ron Parsons announced that a Sioux City, Iowa, woman convicted of Conspiracy to Distribute Methamphetamine was sentenced on January 28, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Veronica Arciniega, age 42, was sentenced to 33 months in federal prison, followed by 3 years of supervised release, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Arciniega was indicted by a federal grand jury on July 16, 2019. She pled guilty on November 7, 2019.
The conviction stemmed from a methamphetamine conspiracy beginning in at least February 2019, where Arciniega, who had the source of methamphetamine in Iowa, brought ounces of methamphetamine to a home in the Sicangu Village. Arciniega and others distributed the methamphetamine in and around the Rosebud Sioux Indian Reservation in South Dakota.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services, the Valentine, Nebraska Police Department, and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Arciniega was immediately turned over to the custody of the U.S. Marshals Service.
Iowa Drug Dealer Sentenced to Federal PrisonRead the Press Release
A man who admitted selling drugs in the Northern District of Iowa was sentenced today to more than 19 ½ years in federal prison.
David Anthony Vargas, age 48, from Winthrop, Iowa, received the prison term after a September 3, 2019, guilty plea to conspiracy to distribute a controlled substance.
In a plea agreement, Vargas admitted he worked with at least one other person to distribute methamphetamine in the Northern District of Iowa and elsewhere. Vargas admitted selling drugs to another person on three occasions totaling more than 180 grams of pure methamphetamine. Officers recovered another 386.2 grams of pure methamphetamine in Vargas’s possession when he was arrested in Burlington, Iowa, and additional methamphetamine at his residence in Winthrop, Iowa. Vargas was previously convicted in state court of possession with intent to deliver methamphetamine in 2007.
Vargas was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Vargas was sentenced to 235 months’ imprisonment. He must also serve a ten-year term of supervised release after the prison term. There is no parole in the federal system.
Vargas is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and investigated by the Iowa Division of Narcotics Enforcement, the Buchanan County Sheriff’s Department, the Dubuque County Sheriff’s Department, the Independence Police Department, the Iowa State Patrol, the Oelwein Police Department, the Urbana Police Department, the Des Moines County Sheriff’s Department, the Tri-County Drug Task Force, the Federal Bureau of Investigation (FBI), and the Drug Enforcement Administration (DEA).
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-cr-02043.
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Harvard University Professor and Two Chinese Nationals Charged in Three Separate China Related CasesRead the Press Release
BOSTON – The U.S. Attorney’s Office announced today that the Chair of Harvard University’s Chemistry and Chemical Biology Department and two Chinese nationals have been charged in connection with aiding the People’s Republic of China.
Dr. Charles Lieber, 60, Chair of the Department of Chemistry and Chemical Biology at Harvard University, was arrested this morning and charged by criminal complaint with one count of making a materially false, fictitious and fraudulent statement. Lieber will appear this afternoon before Magistrate Judge Marianne B. Bowler in federal court in Boston.
Yanqing Ye, 29, a Chinese national, was charged in an indictment today with one count each of visa fraud, making false statements, acting as an agent of a foreign government and conspiracy. Ye is currently in China.
Zaosong Zheng, 30, a Chinese national, was arrested on Dec. 10, 2019, at Boston’s Logan International Airport and charged by criminal complaint with attempting to smuggle 21 vials of biological research to China. On Jan. 21, 2020, Zheng was indicted on one count of smuggling goods from the United States and one count of making false, fictitious or fraudulent statements. He has been detained since Dec. 30, 2019.
Dr. Charles Lieber
According to court documents, since 2008, Dr. Lieber who has served as the Principal Investigator of the Lieber Research Group at Harvard University, which specialized in the area of nanoscience, has received more than $15,000,000 in grant funding from the National Institutes of Health (NIH) and Department of Defense (DOD). These grants require the disclosure of significant foreign financial conflicts of interest, including financial support from foreign governments or foreign entities. Unbeknownst to Harvard University, beginning in 2011, Lieber became a “Strategic Scientist” at Wuhan University of Technology (WUT) in China and was a contractual participant in China’s Thousand Talents Plan from in or about 2012 to 2017. China’s Thousand Talents Plan is one of the most prominent Chinese Talent recruitment plans that are designed to attract, recruit, and cultivate high-level scientific talent in furtherance of China’s scientific development, economic prosperity and national security. These talent programs seek to lure Chinese overseas talent and foreign experts to bring their knowledge and experience to China and reward individuals for stealing proprietary information. Under the terms of Lieber’s three-year Thousand Talents contract, WUT paid Lieber $50,000 USD per month, living expenses of up to 1,000,000 Chinese Yuan (approximately $158,000 USD at the time) and awarded him more than $1.5 million to establish a research lab at WUT. In return, Lieber was obligated to work for WUT “not less than nine months a year” by “declaring international cooperation projects, cultivating young teachers and Ph.D. students, organizing international conference[s], applying for patents and publishing articles in the name of” WUT.
The complaint alleges that in 2018 and 2019, Lieber lied about his involvement in the Thousand Talents Plan and affiliation with WUT. On or about, April 24, 2018, during an interview with investigators, Lieber stated that he was never asked to participate in the Thousand Talents Program, but he “wasn’t sure” how China categorized him. In November 2018, NIH inquired of Harvard whether Lieber had failed to disclose his then-suspected relationship with WUT and China’s Thousand Talents Plan. Lieber caused Harvard to falsely tell NIH that Lieber “had no formal association with WUT” after 2012, that “WUT continued to falsely exaggerate” his involvement with WUT in subsequent years, and that Lieber “is not and has never been a participant in” China’s Thousand Talents Plan.
Yanqing Ye
According to the indictment, Ye is a Lieutenant of the People’s Liberation Army (PLA), the armed forces of the People’s Republic of China and member of the Chinese Communist Party (CCP). On her J-1 visa application, Ye falsely identified herself as a “student” and lied about her ongoing military service at the National University of Defense Technology (NUDT), a top military academy directed by the CCP. It is further alleged that while studying at Boston University’s (BU) Department of Physics, Chemistry and Biomedical Engineering from October 2017 to April 2019, Ye continued to work as a PLA Lieutenant completing numerous assignments from PLA officers such as conducting research, assessing U.S. military websites and sending U.S. documents and information to China.
According to court documents, on April 20, 2019, federal officers interviewed Ye at Boston’s Logan International Airport. During the interview, it is alleged that Ye falsely claimed that she had minimal contact with two NUDT professors who were high-ranking PLA officers. However, a search of Ye’s electronic devices demonstrated that at the direction of one NUDT professor, who was a PLA Colonel, Ye had accessed U.S. military websites, researched U.S. military projects and compiled information for the PLA on two U.S. scientists with expertise in robotics and computer science. Furthermore, a review of a WeChat conversation revealed that Ye and the other PLA official from NUDT were collaborating on a research paper about a risk assessment model designed to decipher data for military applications. During the interview, Ye admitted that she held the rank of Lieutenant in the PLA and admitted she was a member of the CCP.
Zaosong Zheng
In August 2018, Zheng entered the United States on a J-1 visa and conducted cancer-cell research at Beth Israel Deaconess Medical Center in Boston from Sept. 4, 2018, to Dec. 9, 2019. It is alleged that on Dec. 9, 2019, Zheng stole 21 vials of biological research and attempted to smuggle them out of the United States aboard a flight destined for China. Federal officers at Logan Airport discovered the vials hidden in a sock inside one of Zheng’s bags, and not properly packaged. It is alleged that initially, Zheng lied to officers about the contents of his luggage, but later admitted he had stolen the vials from a lab at Beth Israel. Zheng stated that he intended to bring the vials to China to use them to conduct research in his own laboratory and publish the results under his own name.
The charge of making false, fictitious and fraudulent statements provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of visa fraud provides for a sentence of up to 10years in prison, three years of supervised release and a fine of $250,000. The charge of acting as an agent of a foreign government provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. The charge of conspiracy provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of smuggling goods from the United States provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; John C. Demers, Assistant Attorney General for National Security; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Michael Denning, Director of Field Operations, U.S. Customs and Border Protection, Boston Field Office; Leigh-Alistair Barzey, Special Agent in Charge of the Defense Criminal Investigative Service, Northeast Field Office; Philip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General; and William Higgins, Special Agent in Charge of the U.S. Department of Commerce, Office of Export Enforcement, Boston Field Office made the announcement today. Assistant U.S. Attorneys B. Stephanie Siegmann, Jason Casey and Benjamin Tolkoff of Lelling’s National Security Unit are prosecuting these cases with the assistance of Trial Attorneys William Mackie and Davie Aaron of the National Security Division’s Counterintelligence and Export Control Section.
These case are part of the Department of Justice’s China Initiative, which reflects the strategic priority of countering Chinese national security threats and reinforces the President’s overall national security strategy. In addition to identifying and prosecuting those engaged in trade secret theft, hacking and economic espionage, the initiative will increase efforts to protect our critical infrastructure against external threats including foreign direct investment, supply chain threats and the foreign agents seeking to influence the American public and policymakers without proper registration.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Harvard University Professor and Two Chinese Nationals Charged in Three Separate China Related CasesRead the Press Release
The Department of Justice announced today that the Chair of Harvard University’s Chemistry and Chemical Biology Department and two Chinese nationals have been charged in connection with aiding the People’s Republic of China.
Dr. Charles Lieber, 60, Chair of the Department of Chemistry and Chemical Biology at Harvard University, was arrested this morning and charged by criminal complaint with one count of making a materially false, fictitious and fraudulent statement. Lieber will appear this afternoon before Magistrate Judge Marianne B. Bowler in federal court in Boston, Massachusetts.
Yanqing Ye, 29, a Chinese national, was charged in an indictment today with one count each of visa fraud, making false statements, acting as an agent of a foreign government and conspiracy. Ye is currently in China.
Zaosong Zheng, 30, a Chinese national, was arrested on Dec. 10, 2019, at Boston’s Logan International Airport and charged by criminal complaint with attempting to smuggle 21 vials of biological research to China. On Jan. 21, 2020, Zheng was indicted on one count of smuggling goods from the United States and one count of making false, fictitious or fraudulent statements. He has been detained since Dec. 30, 2019.
Dr. Charles Lieber
According to court documents, since 2008, Dr. Lieber who has served as the Principal Investigator of the Lieber Research Group at Harvard University, which specialized in the area of nanoscience, has received more than $15,000,000 in grant funding from the National Institutes of Health (NIH) and Department of Defense (DOD). These grants require the disclosure of significant foreign financial conflicts of interest, including financial support from foreign governments or foreign entities. Unbeknownst to Harvard University beginning in 2011, Lieber became a “Strategic Scientist” at Wuhan University of Technology (WUT) in China and was a contractual participant in China’s Thousand Talents Plan from in or about 2012 to 2017. China’s Thousand Talents Plan is one of the most prominent Chinese Talent recruit plans that are designed to attract, recruit, and cultivate high-level scientific talent in furtherance of China’s scientific development, economic prosperity and national security. These talent programs seek to lure Chinese overseas talent and foreign experts to bring their knowledge and experience to China and reward individuals for stealing proprietary information. Under the terms of Lieber’s three-year Thousand Talents contract, WUT paid Lieber $50,000 USD per month, living expenses of up to 1,000,000 Chinese Yuan (approximately $158,000 USD at the time) and awarded him more than $1.5 million to establish a research lab at WUT. In return, Lieber was obligated to work for WUT “not less than nine months a year” by “declaring international cooperation projects, cultivating young teachers and Ph.D. students, organizing international conference[s], applying for patents and publishing articles in the name of” WUT.
The complaint alleges that in 2018 and 2019, Lieber lied about his involvement in the Thousand Talents Plan and affiliation with WUT. On or about, April 24, 2018, during an interview with investigators, Lieber stated that he was never asked to participate in the Thousand Talents Program, but he “wasn’t sure” how China categorized him. In November 2018, NIH inquired of Harvard whether Lieber had failed to disclose his then-suspected relationship with WUT and China’s Thousand Talents Plan. Lieber caused Harvard to falsely tell NIH that Lieber “had no formal association with WUT” after 2012, that “WUT continued to falsely exaggerate” his involvement with WUT in subsequent years, and that Lieber “is not and has never been a participant in” China’s Thousand Talents Plan.
Yanqing Ye
According to the indictment, Ye is a Lieutenant of the People’s Liberation Army (PLA), the armed forces of the People’s Republic of China and member of the Chinese Communist Party (CCP). On her J-1 visa application, Ye falsely identified herself as a “student” and lied about her ongoing military service at the National University of Defense Technology (NUDT), a top military academy directed by the CCP. It is further alleged that while studying at Boston University’s (BU) Department of Physics, Chemistry and Biomedical Engineering from October 2017 to April 2019, Ye continued to work as a PLA Lieutenant completing numerous assignments from PLA officers such as conducting research, assessing U.S. military websites and sending U.S. documents and information to China.
According to court documents, on April 20, 2019, federal officers interviewed Ye at Boston’s Logan International Airport. During the interview, it is alleged that Ye falsely claimed that she had minimal contact with two NUDT professors who were high-ranking PLA officers. However, a search of Ye’s electronic devices demonstrated that at the direction of one NUDT professor, who was a PLA Colonel, Ye had accessed U.S. military websites, researched U.S. military projects and compiled information for the PLA on two U.S. scientists with expertise in robotics and computer science. Furthermore, a review of a WeChat conversation revealed that Ye and the other PLA official from NUDT were collaborating on a research paper about a risk assessment model designed to decipher data for military applications. During the interview, Ye admitted that she held the rank of Lieutenant in the PLA and admitted she was a member of the CCP.
Zaosong Zheng
In August 2018, Zheng entered the United States on a J-1 visa and conducted cancer-cell research at Beth Israel Deaconess Medical Center in Boston from Sept. 4, 2018, to Dec. 9, 2019. It is alleged that on Dec. 9, 2019, Zheng stole 21 vials of biological research and attempted to smuggle them out of the United States aboard a flight destined for China. Federal officers at Logan Airport discovered the vials hidden in a sock inside one of Zheng’s bags, and not properly packaged. It is alleged that initially, Zheng lied to officers about the contents of his luggage, but later admitted he had stolen the vials from a lab at Beth Israel. Zheng stated that he intended to bring the vials to China to use them to conduct research in his own laboratory and publish the results under his own name.
The charge of making false, fictitious and fraudulent statements provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of visa fraud provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. The charge of acting as an agent of a foreign government provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. The charge of conspiracy provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of smuggling goods from the United States provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General for National Security John C. Demers, United States Attorney Andrew E. Lelling; Special Agent in Charge of the FBI Boston Field Division Joseph R. Bonavolonta; Michael Denning, Director of Field Operations, U.S. Customs and Border Protection, Boston Field Office; Leigh-Alistair Barzey, Special Agent in Charge of the Defense Criminal Investigative Service, Northeast Field Office; Philip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General; and William Higgins, Special Agent in Charge of the U.S. Department of Commerce, Office of Export Enforcement, Boston Field Office made the announcement. Assistant U.S. Attorneys B. Stephanie Siegmann, Jason Casey and Benjamin Tolkoff of Lelling’s National Security Unit are prosecuting these cases with the assistance of trial attorneys William Mackie and David Aaron at the National Security Division’s Counterintelligence and Export Control Section.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
These case are part of the Department of Justice’s China Initiative, which reflects the strategic priority of countering Chinese national security threats and reinforces the President’s overall national security strategy. In addition to identifying and prosecuting those engaged in trade secret theft, hacking and economic espionage, the initiative will increase efforts to protect our critical infrastructure against external threats including foreign direct investment, supply chain threats and the foreign agents seeking to influence the American public and policymakers without proper registration.
Grand Jury Returns Indictments in Project Guardian Gun CasesRead the Press Release
WICHITA, KAN. – A grand jury in Wichita returned two indictments today charging federal gun crimes under the Justice Department’s new initiative called Project Guardian, U.S. Attorney Stephen McAllister said.
“We are working closely with our law enforcement partners to investigate and prosecute gun crimes as part of Project Guardian,” U.S. Attorney Stephen McAllister said.
Project Guardian calls for strict enforcement of federal firearms laws, as well as improved information sharing on denials of firearms transfers in an effort to disrupt potential mass shootings. Project Guardian also emphasizes the use of modern intelligence tools and technology such as the National Integrated Ballistic Information Network (NIBIN) to investigate and prevent gun crime.
More information about Project Guardian is available at https://www.justice.gov/ag/about-project-guardian
Today’s firearms indictments include the following:
Rigoberto Ferrel Jr., 27, Garden City, Kan., is charged with one count of unlawful possession of a firearm by a felon and one count of possession with intent to distribute methamphetamine. The crimes are alleged to have occurred Aug. 20, 2019, in Finney County, Kan.
If convicted, he could face up to 10 years in federal prison and a fine up to $250,000 and not less than five years and a fine up to $5 million on the drug charge. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.
Vario Jesus Portillo-Salinas, 26, Liberal, Kan., is charged with two counts of possession with intent to distribute methamphetamine, one count of unlawful possession of a firearm in furtherance of drug trafficking and two counts of unlawful possession of a firearm by a felon. The crimes are alleged to have occurred in July and August 2019 in Seward County, Kan.
If convicted, he could face a penalty of not less than 10 years in federal prison and a fine up to $10 million on each of the drug counts, not less than five years and a fine up to $250,000 on the charge of unlawful possession of a firearm in furtherance of drug trafficking, and up to 10 years and a fine up to $250,000 on each count of unlawful possession of a firearm by a felon. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.
OTHER INDICTMENTS
Gonzalo Sandoval-Vizcaino, 45, Oxnard, Calif., is charged with one count of possession with intent to distribute fentanyl. The crime is alleged to have occurred Nov. 2, 2019, in Ellis County, Kan.
If convicted, he could face a penalty of not less than 10 years in federal prison and a fine up to $10 million. The Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Katie Andrusak is prosecuting.
Miguel Angel Ramirez, 29, is charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred Dec. 2, 2019, in Seward County, Kan.
If convicted, he could face a penalty of not less than 10 years in federal prison and a fine up to $10 million. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
Kimberly A. Kirchner, 37, Atlanta, Kan., is charged with embezzling funds from the U.S. Postal Service while she was an employee. The crime is alleged to have occurred during a period from Sept. 23, 2019, to Jan. 3, 2020, in Cowley County, Kan.
If convicted, she could face up to 10 years in federal prison and a fine up to $250,000. The U.S. Postal Service – Office of Inspector General investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Gloucester County Man Admits Using Fraudulent Invoices to Steal from Hospitals, Clinics and Doctors’ Offices Across U.S.Read the Press Release
CAMDEN, N.J. – A Gloucester County, New Jersey, man today admitted mailing thousands of fraudulent invoices to hospitals, clinics and doctor’s offices throughout the United States, U.S. Attorney Craig Carpenito announced.
Robert S. Armstrong, 49, of Turnersville, New Jersey, pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to an information charging him with one count of mail fraud.
According to documents filed in this case and statements made in court:
Operating under the name of Pinnacle Medical Supplies, Armstrong prepared and caused to be prepared fraudulent invoices billing hospitals, clinics and doctors’ offices across the United States for medical supplies such as diabetic test strips, EpiPens® and sanitizing wipes that the medical providers never ordered or received. In addition to billing for medical supplies never ordered or received, the invoices included fraudulent shipping information and a fraudulent address.
Armstrong then contracted with a legitimate bulk mailing company to mail more than 10,000 invoices to medical providers across the United States. Each invoice included a payment envelope preaddressed to Pinnacle Medical Supply at mail boxes Armstrong had set up with commercial mail receiving agents in Florida and Texas.
In response to the phony invoices, at least 943 medical providers sent $214,495 to Pinnacle Medical Supply. Armstrong deposited many of the checks from the victim medical providers into a bank account he opened in the name of Pinnacle Medical Supply.
The count of mail fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits to Armstrong or twice the gross losses to the victims of his offense. In his plea agreement, Armstrong agreed to make full restitution to the victims.
This is Armstrong’s second mail fraud scheme. On Nov. 19, 2015, Armstrong was sentenced to 57 months in prison for committing a similar mail fraud scheme in the name of his company, Scholastic Book Supply. Armstrong caused the mailing of thousands of fraudulent invoices to schools throughout the United States billing them for books that the schools did not order or receive. Armstrong, who committed the present Pinnacle Medical Supply offense while on supervised release for the Scholastic Book Supply fraud, also pleaded guilty to three violations of his supervised release, for which he faces an additional 24 months in prison. Sentencing is scheduled for May 7, 2020.
U.S. Attorney Carpenito credited law enforcement officers of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge John Walker in Philadelphia, with the investigation leading to today’s guilty plea.The government is represented by Assistant U.S. Attorney Diana Carrig of the U.S. Attorney’s Office in Camden.
Defense counsel: Richard Coughlin Esq., Assistant Federal Public Defender, Camden
Glassport Man Charged with Possession of Child PornographyRead the Press Release
PITTSBURGH - A resident of Glassport, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of possession of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
The one-count Indictment named Rory Shelton, 57, as the sole defendant.
According to the Indictment, on or about May 7, 2019, Shelton possessed images and videos that depicted prepubescent minors, and minors who had not attained the age of 12, engaged in sexual activity.
The law provides for a maximum total sentence of not more than 20 years in prison, a fine of $250,000 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 Lee J. Karl is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Borough of Glassport Police Department and the Allegheny County Police Department conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Taneytown Police Chief Sentenced to Federal Prison for the Illegal Transfer and Possession of a Machine GunRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander today sentenced William E. Tyler, age 56, of Fairfield, Pennsylvania, to a year and a day in federal prison, followed by three years of supervised release, for the illegal transfer and possession of a machine gun. Tyler is the former Chief of Police in Taneytown, Maryland. Judge Hollander also ordered that Tyler must forfeit assets obtained as a result of, or used to facilitate the commission of his illegal activities, including the two .223-caliber machine guns that he illegally transferred and possessed.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Acting Special Agent in Charge Toni Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division.
“Police officers, no matter their rank, are subject to the same laws as everyone else. No one is above the law,” said U.S. Attorney Robert K. Hur. “William Tyler lied to fellow officers in an attempt to cover up his crime. Now he will serve federal prison time—where there is no parole, ever.”
According to his guilty plea, in 2017 Tyler transferred two machine guns owned by and registered to the Taneytown Police Department to himself and another officer, for their personal use. According to court documents, Tyler created documents titled a “Bill of Sale,” purporting to sell one of the machine guns to himself for $100, although records were never located to confirm any payment to the Taneytown Police Department. Tyler did not attempt to report the transfer of the machine guns to the ATF’s National Firearms Act (NFA) Division, which is responsible for maintaining registration and transfer information about all NFA weapons in accordance with federal law, as any such transfer is illegal.
On January 15, 2019, law enforcement executed search warrants at the residences of Tyler and the officer and recovered the machine guns. Tyler was interviewed by the FBI and ATF, and was warned that it is a crime to make a materially false statement or representation to federal agents. Despite the warning, Tyler lied when he told agents that he had never fired the .223-caliber machine gun recovered in his home and did not know it was automatic, when in fact he had fired the weapon, and as a trained law enforcement officer was well aware that the weapon was automatic.
United States Attorney Robert K. Hur commended the FBI and ATF for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Derek E. Hines and Leo J. Wise, who prosecuted the case.\
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Former Pittsburgh Man Facing Multiple Charges Stemming from an Attempted Kidnapping in September 2018Read the Press Release
PITTSBURGH – A former resident of Pittsburgh, PA, has been indicted by a federal grand jury in Pittsburgh and charged with violations of the federal robbery, extortion, firearms, and narcotics laws, United States Attorney Scott W. Brady announced today.
The seven-count Superseding Indictment named Kevin Harris, age 37, as the defendant.
According to the Superseding Indictment, from in and around September 1, 2017 to September 18, 2018, Harris conspired to possess with the intent to distribute and distribute marijuana. Also on September 18, 2018, Harris is charged with committing the offenses of attempted Hobbs Act extortion, Hobbs Act robbery, brandishing a firearm in furtherance of a crime of violence and/or a drug trafficking crime, possession of a firearm in furtherance of a crime of violence, and possession of a firearm in furtherance of a drug trafficking crime. According to information presented to the Court in previous hearings, the charges in this case stem from an attempted kidnapping of a victim over a drug debt on September 18, 2018 in Monroeville, PA.
The law provides for a mandatory minimum sentence of 17 years in prison and up to life, a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation – Western District of Pennsylvania Opioid Task Force conducted the investigation leading to the Superseding Indictment in this case. This Task Force is comprised of FBI Special Agents and state and local Task Force Officers, including officers from the Pittsburgh Bureau of Police, Allegheny County Sheriff’s Department, Allegheny County Police, Port Authority Police, Munhall Police Department, Stowe-Rox Police Department, and Pennsylvania Attorney General’s Office.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former McKeesport Resident Indicted for Illegally Possessing Heroin and a HandgunRead the Press Release
PITTSBURGH, PA- A former resident of McKeesport, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on violations of federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
The two-count Indictment named Jared Ogrosky, 22, formerly of McKeesport, PA.
According to the Indictment, which follows a criminal complaint that was filed on May 10, 2019, Ogrosky possessed with the intent to distribute approximately nine bricks of heroin and a Glock model 19x, 9 millimeter handgun in furtherance of the drug trafficking crime, all of which were seized by law enforcement officials during the execution of a federal search warrant at Ogrosky’s former residence in McKeesport.
The law provides for a maximum total sentence of not less than five years in prison, a fine not to exceed $2,250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Bureau of Alcohol Tobacco, Firearms, and Explosives conducted the investigation leading to the Indictment in this case. This case was brought under Project Safe Neighborhoods (PSN), 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.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Massapequa High School Teacher Sentenced to Five Years in Prison for Transporting Child PornographyRead the Press Release
Joseph Zanco, a former Massapequa High School teacher, was sentenced today at the federal courthouse in Central Islip to five years’ imprisonment by United States Circuit Court Judge Joseph F. Bianco for transporting child pornography in interstate and foreign commerce. As part of his sentence, Zanco must serve seven years of supervised release following his imprisonment during which time he must register as a sex offender and may not have unsupervised contact with minors. Zanco pleaded guilty in April 2019.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), announced the sentence.
In April 2018, Zanco began uploading hundreds of images of child pornography to the cloud-based Google Drive storage feature of his Google account. After receiving notification from Google, law enforcement authorities obtained search warrants and recovered child pornography from his Google account. Additional images and videos containing child pornography were recovered from Zanco’s cell phone and laptop computer.
“As a licensed teacher, Zanco had a mandatory obligation to report crimes against children, and today he was punished for doing just the opposite: perpetuating their victimization by his transportation and possession of child pornography,” stated United States Attorney Donoghue. “The protection of children will always be a priority of this Office.”
“Zanco, a man who was entrusted to teach our youth, violated that trust by engaging in the transmission and possession of child pornography,” stated HSI Special Agent-in-Charge Fitzhugh. “We expect our teachers to educate and care for our children and when one violates that position of trust by sharing these alarming depictions, HSI and our law enforcement partners will stop at nothing to put an end to the facilitation and creation of children being victimized. One of HSI’s priorities will continue to be centered around child exploitation investigations to protect our most innocent – our children
This prosecution 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 United States Attorneys’ Offices, 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 government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Michael Maffei is in charge of the prosecution.
The Defendant:
JOSEPH M. ZANCO
Age: 45
Massapequa, New YorkE.D.N.Y. Docket No. 18-CR-412 (JFB)
Former Labor Union President Pleads Guilty to Embezzlement of Union AssetsRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, KEITH ALAN LUDLUM, 48, of Bladenboro, North Carolina pled guilty to Conspiracy and Embezzlement of Labor Union Assets. At sentencing before Chief United States District Judge Terrence W. Boyle, LUDLUM faces a combined maximum sentence of 10 years imprisonment, followed by three years of supervised release, a fine of $10,000, and restitution. On February 26, 2019, TERRY SLAUGHTER pled guilty to Embezzlement of Labor Union Assets. At sentencing, SLAUGHTER faces a maximum sentence 5 years imprisonment, followed by three years of supervised release, a $10,000 fine, and restitution.
LUDLUM was charged in an Indictment filed on April 17, 2019. According to the Indictment and information presented at the hearing, in 2011, LUDLUM was elected President of the United Food and Commercial Workers (“UFCW”), Local Union 1208. SLAUGHTER was elected Secretary/Treasurer. Local Union 1208 encompasses North and South Carolina and has approximately 3600 active members. As President, LUDLUM was the primary fiduciary officer. LUDLUM and SLAUGHTER had financial oversight of the Local’s expenditures.
In 2014, the UFCW initiated an audit of the Local after receiving complaints from union members regarding the theft and misuse of union funds by LUDLUM and SLAUGHTER. The audit and a subsequent criminal investigation revealed that between January 2012 and March 2015, LUDLUM and SLAUGHTER embezzled and misused more than $200,000 in union funds by issuing unauthorized checks and making unauthorized purchases with their assigned debit cards.
The United States Department of Labor, Office of Labor Management Standards conducted the investigation. Assistant United States Attorney Toby Lathan represented the government.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Former Illinois State Senator Pleads Guilty to Federal Bribery and Tax OffensesRead the Press Release
CHICAGO — Former Illinois State Sen. MARTIN A. SANDOVAL pleaded guilty today in federal court in Chicago to bribery and tax offenses included in an information filed in federal court Monday.
Sandoval, 56, of Chicago, pleaded guilty to one count of federal program bribery, which is punishable by a maximum sentence of ten years in federal prison, and one count of willfully filing a false income tax return, which is punishable by up to three years. As part of a plea agreement, Sandoval has agreed to fully and truthfully cooperate in any matter in which he is called upon by the U.S. Attorney’s Office. The government requested that Sandoval’s sentencing be delayed until his cooperation is complete. U.S. District Judge Andrea R. Wood did not immediately set a sentencing date.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI; Kathy A. Enstrom, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago; and Andrea Kropf, Special Agent-in-Charge of the Department of Transportation-Office of Inspector General in Chicago. The government is represented by Assistant U.S. Attorneys Christopher J. Stetler and James P. Durkin.
Sandoval admitted in the plea agreement that he solicited and accepted financial and other benefits from an individual affiliated with a Chicago-area red-light camera company, in return for Sandoval using his official position as a state senator to block legislation harmful to the red-light-camera industry. Sandoval also admitted that he engaged in corrupt activities with other public officials and accepted money from other individuals in return for using his official position to attempt to benefit those individuals and their business interests. Sandoval admitted accepting more than $250,000 in bribes as part of criminal activity that involved more than five participants.
In addition to the bribery, Sandoval admitted that he willfully caused his accountant to file income tax returns that Sandoval knew underreported his income for the calendar years 2012 through 2017. Sandoval admitted in the plea agreement that his tax offenses caused a total loss to the IRS of at least $72,441, and a loss to the Illinois Department of Revenue of at least $13,384.38, which he has agreed to pay.
Former Executive Assistant Sentenced in Connection with Embezzling over $3 MillionRead the Press Release
BOSTON – The former executive assistant of a Waltham-based technology company was sentenced today in connection with a fraud and embezzlement scheme that netted over $3 million.
Shivani Patel, 38, of Vineyard Haven, was sentenced by U.S. District Court Judge Leo T. Sorokin to four years in prison, five years of supervised release, and ordered to pay restitution of $3,819,366 and forfeiture of $3,076,369. In October 2019, Patel pleaded guilty to one count each of bank fraud, money laundering and filing false tax returns.
As an executive assistant to the chief financial officer, Patel’s duties included retrieving incoming mail containing customer checks made payable to her employer, recording the checks into the payment system and depositing the checks into her employer’s bank account.
From at least February 2012 through July 2017, Patel embezzled approximately $3,076,369 from her then employer for her personal use. Specifically, in February 2012, Patel created a company with a name nearly identical to that of her then employer — using her employer’s name but just adding an “s” to the end — and opened a business banking account in the sham company’s name. Thereafter, Patel took customer checks payable to her employer from the mail, deposited those checks into the sham company’s bank account, and concealed her embezzlement by making false entries in her employer’s billing system. To disguise and conceal the nature of these funds, Patel funneled this money through multiple bank accounts.
In addition, Patel filed income tax returns for the tax years 2012 through 2016 in which she intentionally underreported her income by failing to disclose the money she had stolen from her employer.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorney Justin D. O’Connell of Lelling’s Securities and Financial Fraud Unit prosecuted the case.
Former Cameron High School Teacher Sentenced to 20 Years for Using Hidden Camera to Produce Child PornographyRead the Press Release
KANSAS CITY, Mo. – A former Cameron, Missouri, high school teacher was sentenced in federal court today for secretly recording pornographic videos of three teenage victims in his bathroom.
William Derek Williams, 40, of Cameron, was sentenced by U.S. District Judge Howard F. Sachs to 20 years in federal prison without parole. The court also sentenced Williams to 10 years of supervised release following incarceration. Williams formerly was a high school language arts teacher and more recently a part-time high school multimedia teacher at the time of the offense.
Williams pleaded guilty on Aug. 26, 2019, to one count of producing child pornography. Williams admitted that he secretly filmed three different victims over a five-year period from January 2013 to September 2018 while they were in the basement bathroom of his residence.
A then-15-year-old victim discovered a hidden camera, designed to look like a cell phone charger plug, on Sept. 6, 2018. The victim opened the device and retrieved a micro SD card, which he inserted into his cell phone in order to view its contents. The card included a secretly-recorded video of the victim.
The child victim turned the device over to investigators. On Sept. 8, 2018, investigators with the Clinton County, Mo., Sheriff’s Department executed a search warrant at Williams’s residence and seized a laptop computer and an SD card. Each of those devices contained pornographic videos of two more teenage victims who were secretly recorded in the basement bathroom. The laptop contained five distinct videos produced on five different days of a then-16-year-old victim. The laptop and the SD card contained several pornographic videos of a third victim who was then between 14 and 16 years old.
This case was prosecuted by Assistant U.S. Attorney David Luna. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Clinton County, Mo., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Federal Jury Convicts Raleigh Man for Heroin Overdose Death and ConspiracyRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that today in federal court, JAYSON MCNEIL, a 28-year-old resident of Raleigh, was convicted following a four-day trial before United States District Judge James C. Dever III. The jury found MCNEIL guilty of Distribution of Heroin and Fentanyl Resulting in Death of a Person, Conspiracy to Distribute and Possess with the Intent to Distribute One Kilogram or More of Heroin. Sentencing is scheduled for the April 27, 2020 term of court in Raleigh. MCNEIL faces at least twenty years’ and up to life imprisonment.
The evidence at trial showed that MCNEIL operated a long-standing heroin organization in the city of Raleigh, North Carolina, distributing heroin and fentanyl to numerous individuals and which resulted in multiple overdoses. This culminated in the May 30, 2018 overdose death of a 27 year old man in the Raleigh area. A co-conspirator, Destin McLean, pled guilty to Conspiracy to Distribute one (1) kilogram of heroin before trial.
Mr. Higdon commented: “This case is one example of the danger that the distribution and use of fentanyl and heroin presents for people all across this country. We are grateful that the trial jury found our evidence persuasive and have held this defendant accountable for his drug trafficking crimes and for the pain and suffering it caused. This office will pursue those who are pouring these dangerous drugs into our streets and who are jeopardizing the health and welfare of our citizens.”
The Wake County Sheriff’s Office, the N.C. State Bureau of Investigation, United States Attorney’s Office and the United States Marshals Service conducted the investigation in this matter. Special Assistant United States Attorney Kelly L. Sandling and Assistant United States Attorney Thomas L. Crosby prosecuted the case on behalf of the United States.
Federal Jury Convicts Charles Edward Mason of Gun and Drug ChargesRead the Press Release
Knoxville, Tenn. – Following a four-day trial in the United States District Court at Knoxville, a jury convicted Charles Edward Mason, 53, of Clinton, Tennessee. Evidence presented at trial showed Mason was in possession of firearms and ammunition as a convicted felon, possessed with intent to distribute 5 grams or more of methamphetamine, brandished firearms in furtherance of drug trafficking, and possessed firearms in furtherance of drug trafficking.
Sentencing is set for May 20, 2020, at 10:00 a.m., in the United States District Court for the Eastern District of Tennessee at Knoxville. Mason faces a sentence of up to life in prison.
On April 24, 2019, officers responded to a 911 call alleging that Mason had threatened a woman with a handgun. During the initial encounter with Mason, officers discovered that Mason had two handguns and over 23 grams of methamphetamine. Mason subsequently brandished a third handgun, a revolver, and attempted to shoot the officers at the scene. The defendant pulled the trigger multiple times, however the gun did not fire because the hammer was caught on Mason’s t-shirt. After a short struggle, officers retrieved the firearm from Mason before taking him into custody. The female complainant and a man who was on the scene before officers arrived testified at trial that Mason threated their lives while holding a handgun, because Mason believed they stole methamphetamine from him.
In 2010, the defendant was previously convicted of reckless homicide in Anderson County, Tennessee.
“The combination of firearms possessed by a convicted felon and the distribution of illegal drugs is an inherent danger to our communities. The U.S. Attorney’s Office will continue to work together with law enforcement to prosecute federal offenses relating to the unlawful distribution of illegal drugs,” said U.S. Attorney J. Douglas Overbey.
“ATF’s Crime Gun Intelligence, as part of Project Guardian, is focused on providing a safe environment to the communities that are affected by violent crime,” said ATF Special Agent in Charge Marcus Watson.
The law enforcement agencies taking part in the joint investigation which lead to the indictment and subsequent conviction of Mason included the Anderson County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Knoxville Field Office.
Assistant United States Attorneys LaToyia Carpenter and Brent Jones represented the United States.
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Federal Indictments Returned in Maryland and Delaware Charging Three Alleged Members of the Violent Extremist Group “the Base” with Federal Firearms and Alien-Related ChargesRead the Press Release
Greenbelt, Maryland – Federal grand juries in Maryland and Delaware have returned indictments charging alleged members of the racially motivated violent extremist group “The Base” with firearms and alien-related charges. Both federal indictments charge Brian Mark Lemley, Jr., age 33, of Elkton, Maryland, and Newark, Delaware; and Canadian national Patrik Jordan Mathews, age 27, currently of Newark, Delaware, with firearms and alien-related charges. A third alleged member of “The Base,” William Garfield Bilbrough IV, age 19, of Denton, Maryland, is charged in the Maryland indictment with alien-related charges. The Delaware indictment also charges Lemley and Mathews with destroying their cellular telephones with intent to obstruct justice. The Maryland indictment was returned on January 27, 2020 and unsealed today. The Delaware grand jury returned its indictment today.
The indictments were announced by United States Attorney for the District of Maryland Robert K. Hur; United States Attorney for the District of Delaware David C. Weiss; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Acting Special Agent in Charge Toni Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division.
The 12-count Maryland indictment charges Lemley and Bilbrough with: conspiring to transport an alien from August 30 through 31, 2019, and with transporting an alien on August 31, 2019; conspiring to transport and harbor an alien on November 2 and 3, 2019; and with transporting an alien and harboring an alien on November 3, 2019. Lemley is charged with transporting a machine gun in interstate commerce on January 2, 2020; and disposing of a firearm and ammunition to an illegal alien on January 5, 2020 and January 11, 2020. Lemley and Mathews are charged with being or aiding and abetting an alien in possession of a firearm and ammunition on January 5, 2020 and January 11, 2020; and transporting a firearm and ammunition with intent to commit a felony on January 5, 2020 and on January 11, 2020.
The six-count Delaware indictment alleges that Lemley transported an illegal alien, specifically Patrik Jordan Mathews, on November 4, 2019; and that from November 4, 2019 through January 16, 2020, Lemley harbored Mathews, knowing he was an illegal alien. Further, Lemley and Mathews are charged with being or aiding and abetting an alien in possession of a firearm and ammunition from November 28, 2019 through January 4, 2020, and again on January 16, 2020; illegal possession of a machinegun; illegal possession of an unregistered machinegun; and destroying their cellular telephones with the intent to obstruct justice, specifically an investigation conducted by the FBI.
The federal indictments also seek the forfeiture of any property traceable to the offenses charged, including all firearms and ammunition allegedly involved in the commission of the offense, and a 2019 Chevrolet Colorado ZR2 allegedly used to facilitate the offense.
If convicted, Lemley and Bilbrough each face a maximum sentence of five years for transporting and harboring certain aliens, and 10 years for conspiracy to do so. Lemley also faces a maximum of five years in prison for transporting a machine gun in interstate commerce, and a maximum of 10 years in federal prison for disposing of a firearm and ammunition to an illegal alien. Lemley and Mathews each face a maximum of 10 years in federal prison for transporting a firearm and ammunition in interstate commerce with intent to commit a felony offense; a maximum of 10 years in federal prison for being or aiding and abetting an alien in possession of a firearm and ammunition; a maximum of 10 years in prison for illegal possession of a firearm; a maximum of 10 years in prison for illegal possession of an unregistered firearm; and a maximum of 20 years in prison for obstruction of justice. 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.
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 Attorneys Robert K. Hur and David C. Weiss commended the FBI Baltimore Joint Terrorism Task Force (JTTF) and ATF for their work in the investigation, and thanked U.S. Homeland Security Investigations, the Maryland Department of Natural Resources, the Maryland State Police, and the Delaware State Police for their assistance. Mr. Hur and Mr. Weiss thanked their offices’ national security prosecutors, who are handling the case.
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Federal Indictments Returned in Delaware and Maryland Charging Three Alleged Members of the Violent Extremist Group "the Base" with Federal Firearms and Alien-Related ChargesRead the Press Release
WILMINGTON, Del. – Federal grand juries in Delaware and Maryland have returned indictments charging alleged members of the racially motivated violent extremist group “The Base” with firearms and alien-related charges. Both federal indictments charge Brian Mark Lemley, Jr., age 33, of Elkton, Maryland, and Newark, Delaware; and Canadian national Patrik Jordan Mathews, age 27, currently of Newark, Delaware, with firearms and alien-related charges. A third alleged member of “The Base,” William Garfield Bilbrough IV, age 19, of Denton, Maryland, is charged in the Maryland indictment for alien-related charges. The Delaware indictment also charges Lemley and Mathews with destroying their cellular telephones with intent to obstruct justice. The Maryland indictment was returned on January 27, 2020 and unsealed today. The Delaware grand jury returned its indictment today.
The indictments were announced by United States Attorney for the District of Delaware David C. Weiss; 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; and Acting Special Agent in Charge Toni Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division.
The six-count Delaware indictment alleges that Lemley transported an illegal alien, specifically Patrik Jordan Mathews, on November 4, 2019; and that from November 4, 2019 through January 16, 2020, Lemley harbored Mathews, knowing he was an illegal alien. Further, Lemley and Mathews are charged with being or aiding-and-abetting an alien in possession of a firearm and ammunition from November 28, 2019 through January 4, 2020, and again on January 16, 2020; with illegal possession of a machinegun; with illegal possession of an unregistered machinegun; and with destroying their cellular telephones with the intent to obstruct justice, specifically an investigation conducted by the FBI.
The 12-count Maryland indictment charges Lemley and Bilbrough with conspiring to transport an alien from August 30 through 31, 2019, and with transporting an alien on August 31, 2019; with conspiring to transport and harbor an alien on November 2 and 3, 2019, and with transporting an alien and harboring an alien on November 3, 2019. Lemley is charged with transporting a machine gun in interstate commerce on January 2, 2020; and with disposing of a firearm and ammunition to an illegal alien on January 5, 2020 and January 11, 2020. Lemley and Mathews are charged with being or aiding-and-abetting an alien in possession of a firearm and ammunition on January 5, 2020 and January 11, 2020; and with transporting a firearm and ammunition with intent to commit a felony on January 5, 2020 and on January 11, 2020.
The federal indictments also seek the forfeiture of any property traceable to the offenses charged, including all firearms and ammunition allegedly involved in the commission of the offense, and a 2019 Chevrolet Colorado ZR2 allegedly used to facilitate the offense.
If convicted, Lemley and Bilbrough each face a maximum sentence of five years for transporting and harboring certain aliens, and 10 years for conspiracy to do so. Lemley also faces a maximum of five years in prison for transporting a machine gun in interstate commerce, and a maximum of 10 years in federal prison for disposing of a firearm and ammunition to an illegal alien. Lemley and Mathews each face a maximum of 10 years in federal prison for transporting a firearm and ammunition in interstate commerce with intent to commit a felony offense; a maximum of 10 years in federal prison for being or aiding-and-abetting an alien in possession of a firearm and ammunition; a maximum of 10 years in prison for illegal possession of a firearm; a maximum of 10 years in prison for illegal possession of an unregistered firearm; and a maximum of 20 years in prison for obstruction of justice. 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.
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 Attorneys David C. Weiss and Robert K. Hur commended the FBI Baltimore Joint Terrorism Task Force (JTTF) and ATF for their work in the investigation, and thanked U.S. Homeland Security Investigations, the Maryland Department of Natural Resources, the Maryland State Police, and the Delaware State Police for their assistance. Mr. Weiss and Mr. Hur thanked their offices’ national security prosecutors, who are handling the case.
Enfield Man with Multiple Felony Convictions Admits Illegally Possessing Gun in HartfordRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that NATHANIEL RODRIGUEZ, 24, of Enfield, pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to one count of possession of a firearm and ammunition by a convicted felon.
According to court documents and statements made in court, at approximately 2:00 a.m. on January 27, 2019, Hartford Police received reports of a fight outside of the Vanish Bar and Grille Club on Meadow Street in Hartford. After responding to the scene, a detective saw Rodriguez arguing with several individuals in an SUV, and then produce a handgun. Hartford Police officers secured Rodriguez and recovered a loaded M&P Bodyguard .380 caliber handgun that he dropped on the ground.
The gun had been reported stolen in Massachusetts in 2017.
Rodriguez’s criminal history includes felony convictions in Massachusetts for firearms, assault, drug, and witness intimidation offenses.
Rodriguez has been detained since March 29, 2019, when he was arrested in Enfield in an unrelated case.
Judge Dooley scheduled sentencing for April 22, 2020, at which time Rodriguez faces a maximum term of imprisonment of 10 years.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hartford Police Department. This case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
East Saint Louis Caretaker and Accomplice Indicted for Stealing Identities and Defrauding Elderly ClientsRead the Press Release
A federal grand jury for the Southern District of Illinois has returned a nine-count indictment charging Erica S. Rose, 30, of East Saint Louis, Illinois, and Ashley N. McKinney, 36, of Pheba, Mississippi, with conspiring to commit bank and wire fraud, aggravated identity theft, and other felony offenses.
According to the indictment, Rose used her employment with a Belleville-based in-home health care provider to gain access to the homes of elderly clients in Southern Illinois, where she stole bank account numbers and other identifying information. The indictment further alleges that Rose provided the stolen materials to McKinney, who withdrew money from ATMs, deposited fraudulent checks, and even purchased a car online for over $28,000 – all using the elderly victims’ funds and identities.
Rose and McKinney are due in federal court for their initial appearance on Feb. 11, 2020, at 1:30 pm. A trial date has not been set. If convicted, the pair faces up to 30 years in prison on the conspiracy charge. The aggravated identity theft charges each carry a mandatory sentence of two years imprisonment.
An indictment merely is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation was conducted by detectives from the Edwardsville Police Department, Belleville
Police Department, Swansea Police Department, and St. Clair County Sheriff’s Office.
The case is being prosecuted by Assistant United States Attorney Luke J. Weissler.
Drug User Sentenced to Federal Prison for Possessing GunRead the Press Release
A man who possessed a gun while unlawfully using two drugs was sentenced January 27, 2020, to more than one year in federal prison.
Daniel Yaeshur Rhone, age 25, from Cedar Rapids, Iowa, received the prison term after a September 24, 2019 guilty plea to possession of a firearm by an unlawful user of controlled substances.
Evidence at a prior hearing in this case showed that Dubuque police officers received information that Rhone had a gun and was using ecstasy. Officers obtained a search warrant while Rhone was visiting family in Dubuque, searched a residence, and recovered a gun belonging to Rhone. Rhone later tested positive for amphetamines and marijuana.
Rhone was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Rhone was sentenced to twelve months’ and one-day imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was prosecuted by Assistant United States Attorney Kyndra Lundquist and investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Dubuque Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-1029.
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Doctor and Co-Defendant Admit Roles in Health Care Fraud SchemeRead the Press Release
TRENTON, N.J. – A doctor with offices in Washington, Hackettstown, and Succasunna, New Jersey, and his co-defendant today admitted their roles in a health care conspiracy to bill Medicare and private health insurance companies for medical services fraudulently claimed to have been provided by a licensed medical doctor, U.S. Attorney Craig Carpenito announced.
Parminderjeet S. Sandhu, 66, of Long Valley, New Jersey, and Paramjit Singh, 62, of Ohio, each pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to informations charging them with conspiracy to commit health care fraud.
“Dr. Sandhu defrauded Medicare and private insurers – and, worse, put his patients at risk – by allowing those patients to be treated by Singh, a man who had lost his medical license,” U.S. Attorney Carpenito said. “Our office continues to work tirelessly to protect the integrity of federal healthcare programs and to make sure that patients do not suffer unnecessary harm from unscrupulous healthcare providers like these two defendants.”
“It's frightening to think that your doctor could be putting your health in the hands of someone who is practicing without a license,” FBI Newark Special Agent in Charge Gregory W. Ehrie said. “Dr. Sandhu put his patients at risk while defrauding them as well as their insurers. The FBI remains committed to investing its resources to combat these types of schemes because patients have every right to expect that the care they are receiving is from a qualified medical professional who is acting in the patient's best interest. We urge anyone who is aware of healthcare fraud to contact us.”
According to documents filed in this case and statements made in court:
From August 2014 through October 2017, Sandhu and Singh caused $2,211,975 to be billed to Medicare and private health insurance companies for medical services claimed to have been provided by Sandhu at Sandhu’s medical practice, Medical Care Associates Urgent Care Inc. In reality, those services were actually performed by Singh, whom Sandhu had hired to treat patients, despite knowing that Singh had lost his license to practice medicine anywhere in the United States. Sandhu issued prescriptions – including prescriptions for opioids – in Sandhu’s name for patients seen by Singh, even though Sandhu never met with the patients himself. As a result of the conspiracy, Sandhu’s medical practice was paid $1,162,253 for treatment fraudulently provided by Singh.
Under terms of the plea agreement, if the court accepts the plea, each defendant will be sentenced to 18 months in prison. In addition, Sandhu and Singh have each agreed to pay $1,162,253 in restitution. Sandhu has agreed to forfeiture of $829,561 and Singh has agreed to forfeiture of $332,692. Sentencing is scheduled for April 28, 2020.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Ehrie; the Warren County Prosecutor's Office, under the direction of Prosecutor James L. Pfeiffer; the New Jersey State Police, under the direction of Col. Patrick J. Callahan; and the Hackettstown, Roxbury and Washington Township police departments with the investigation leading to today’s guilty pleas.
The government is represented by Assistant U.S. Attorney Joseph N. Minish of the U.S. Attorney’s Office’s Asset Recovery and Money Laundering Unit.
Detroit woman sentenced for her role in oxycodone distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Konshawntas Boyd, of Detroit, Michigan, was sentenced today to 30 months incarceration for her role in a drug distribution operation, U.S. Attorney Bill Powell announced.
Boyd, age 39, pled guilty to one count of “Maintaining a Drug-Involved Premises” in October 2019. Boyd, a nurse practitioner, admitted that she had an apartment located in Barrington North Apartments in Morgantown, West Virginia, for the purpose of distributing oxycodone from September 2016 to March 2017.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Mon Metro Drug and Violent Crime Drug Task Force, a HIDTA-funded initiative, led the investigation. The Task Force consists of the U.S. Drug Enforcement Administration. the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, Monongalia County Sheriff’s Office, Morgantown Police Department, the Star City Police Department, the West Virginia State Police, the West Virginia University Police Department, the Granville Police Department, and the Monongalia County Prosecuting Attorney’s Office.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Senior U.S. District Judge Irene M. Keeley presided.
Detroit man sentenced to 10 years for his involvement in an oxycodone distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Terry Thomas, of Detroit, Michigan, was sentenced today to 121 months incarceration for multiple charges involving an oxycodone distribution operation that spanned two states and four North Central West Virginia counties, U.S. Attorney Bill Powell announced.
Thomas, also known as “Top,” age 47, pled guilty to one count of “ Conspiracy to Distribute Oxycodone,” one count of “Money Laundering Conspiracy,” 19 counts of “Distribution of Oxycodone,” 11 counts of “Aiding and Abetting Distribution of Oxycodone,” and one count of “Distribution of Cocaine Base” in October 2019. Thomas, the ringleader of the operation, worked with his co-conspirators to distribute more than 500,000 oxycodone pills in Monongalia County and elsewhere for four years, from the summer of 2013 to June 2017.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Mon Metro Drug and Violent Crime Drug Task Force, a HIDTA-funded initiative, led the investigation. The Task Force consists of the U.S. Drug Enforcement Administration. the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, Monongalia County Sheriff’s Office, Morgantown Police Department, the Star City Police Department, the West Virginia State Police, the West Virginia University Police Department, the Granville Police Department, and the Monongalia County Prosecuting Attorney’s Office.
Of the 34 indicted in this case, all have entered guilty pleas. Twenty-nine defendants have been sentenced to a combined 580 months incarceration. To learn more about the other defendants in this case, go to https://www.justice.gov/usao-ndwv/pr/thirty-three-have-admitted-their-roles-oxycodone-distribution-operation.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Senior U.S. District Judge Irene M. Keeley presided.
Detroit man sentenced for oxycodone distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Devante Maddox, of Detroit, Michigan, was sentenced today to three years probation for his role in an oxycodone distribution operation, U.S. Attorney Bill Powell announced.
Maddox, age 27, pled guilty to one count of “Distribution of Oxycodone” in October 2019. Maddox admitted to selling oxycodone in January 2017 in Monongalia County.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Mon Metro Drug and Violent Crime Drug Task Force, a HIDTA-funded initiative, investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Senior U.S. District Judge Irene M. Keeley presided.
Detroit man sentenced for money laundering and drug traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Raymond Edison, of Detroit, Michigan, was sentenced today to 72 months incarceration money laundering and drug distribution, U.S. Attorney Bill Powell announced.
Edison, age 32, pled guilty to one count of “Money Laundering Conspiracy” last week. Edison admitted to working with others to move money made from the distribution of heroin from one person to another to aid in the illegal operation from the Spring of 2017 to May 2018 in Monongalia County and elsewhere.
In a separate but connected case, Edison pled guilty to one count of “Distribution of Oxycodone within 1,000 feet of Protected Location” in March 2019. Edison admitted to selling oxycodone near Suncrest Middle School in Monongalia County in October 2017.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Internal Revenue Service Criminal Investigations investigated the money laundering case. The Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated the drug distribution case.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. District Judge Thomas S. Kleeh presided.
Dayton, Iowa Man to Federal Prison for Illegal Possession of GunsRead the Press Release
A man who illegally possessed guns was sentenced January 27, 2020, to more than 6 years in federal prison.
Christopher Johnson, 45, from Dayton, Iowa, received the prison term after an October 17, 2019, guilty plea to possession of firearms by a felon. Johnson was previously convicted of manufacture of methamphetamine and/or possession with intent to manufacture methamphetamine, a felony, in August of 2001, in Boone County, Iowa.
At the guilty plea hearing, Johnson admitted that on May 28, 2017, in Webster County, Iowa, law enforcement officers were dispatched to a residence in Dayton, Iowa, on reports of a suspicious person (later identified as Johnson) at the residence possibly stalking the female occupant. Law enforcement officers located Johnson nearby (at a residence where Johnson was known to reside) in a barn. Law enforcement officers located and seized two guns, namely a Ruger .22 caliber pistol and a Jimenez Arms .22 caliber pistol, along with some .22 caliber ammunition from Johnson. Johnson was previously convicted of assault with a dangerous weapon (chainsaw), an aggravated misdemeanor, in 2012, in Calhoun County, Iowa.
Johnson was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Johnson was sentenced to 78 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system. Johnson is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian partners: Dayton Police Department, Webster County Sheriff’s Office, and Bureau of Alcohol, Tobacco, Firearms, and Explosives. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by Dayton Police Department, Webster County Sheriff’s Office, and Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-3028.
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Court Enters Judgment That Significantly Modifies and Extends Consent Decree with Live Nation/TicketmasterRead the Press Release
The Department of Justice’s Antitrust Division announced on Dec. 19, 2019, that it would file a petition asking the court to clarify and extend by five and a half years the Final Judgment entered by the court in United States v. Ticketmaster Entertainment, Inc., et al., Case No. 1:10-cv-00139-RMC (July 30, 2010). Today, the court entered the Amended Final Judgment. The court also set the procedure for naming of the Independent Monitoring Trustee. The Independent Monitoring Trustee is just one term within the Amended Final Judgment that will make enforcement of the decree for the extended time period more efficient.
“Live Nation broke the promises they made to the court and the American people when they merged with Ticketmaster in 2010; today, we are holding them accountable,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “The amended decree reimburses the American people millions of dollars and makes it easier for the Antitrust Division and state enforcers to identify and prosecute future transgressions.”
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Con-Man Sentenced to 63 More Months in Federal Prison After Stealing over $1,000,000 from Friends and FamilyRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Anthony Bueno, age 45, of Brighton, Colorado, was sentenced to serve 63 months in federal prison, followed by 3 years of supervised release for conspiring with this girlfriend to launder over $1,000,000 taken from friends and family through two separate wire fraud schemes. He was also ordered to pay $1,301,829.16 in restitution to the victims of his crime. This federal prison sentence is consecutive to the 30 month federal prison sentence imposed on the defendant two weeks ago for his role in a separate bribery scheme. Bueno remains in custody. The Denver FBI joined in today’s announcement.
According to court records, including the stipulated facts contained in the defendant’s plea agreement, Anthony Bueno devised and executed two schemes targeting his own family and friends. In one of the schemes — the “surety bond scheme” — Bueno falsely claimed to victims that they could earn returns of up to 2,500% by investing in surety bonds related to government construction projects. To bolster his claims, Bueno provided notarized documents, including one promising an investor that surety bonds purchased for $500,000 were actually worth $18.9 million.
In the other scheme — the “start up scheme” — Bueno preyed on his own family by falsely convincing relatives, including a recent college graduate and her parents, that if they gave him money he could help them start a government contracting business. He later told those same relatives that because he had helped create the contracting business while having his own government contracts, he was under investigation for collusion and needed money to defend himself.
All told, the defendant used lies and deceit to obtain $1,301,829.16, which he laundered through accounts controlled by his girlfriend. He then spent this money on vehicles and personal expenses. He also used a portion of the proceeds to pay restitution he owed as a result of a prior conviction in state court.
“Mr. Bueno is nothing more than a con-man who preyed on family and friends alike,” said U.S. Attorney Jason Dunn. “Others thinking about these scams should heed this sentence and think twice before engaging in such crimes.”
“Today’s sentencing of Anthony Bueno is a great example of the resolve of the FBI and United States Attorney’s Office to prosecute those who utilize fraud schemes for personal gain,” said FBI Denver Special Agent in Charge Dean Phillips. “We will continue to protect our citizens and hold accountable criminals who victimize investors.”
Cara Church Underwood in a separate case pleaded guilty to participating in the same surety bond scheme. Sentencing in that case, pending before the Honorable Robert E. Blackburn, is scheduled for February 27, 2019.
The sentence was pronounced by U.S. District Court Judge William J. Martinez. The case was investigated by the FBI. The defendant is being prosecuted by Assistant United States Attorney Bryan D. Fields.
Colorado Man Pleads Guilty to Racketeering Charges Related to Darknet Marketplace AlphaBayRead the Press Release
FRESNO, Calif. — Bryan Connor Herrell, 25, pleaded guilty on Monday to conspiring to engage in a racketeer influenced corrupt organization, U.S. Attorney McGregor W. Scott announced.
According to court documents, Herrell was a moderator on the AlphaBay marketplace, an illegal website that operated on the so-called darknet. On AlphaBay, vendors and purchasers engaged in hundreds of thousands of illicit transactions for guns, drugs, stolen identity information, credit card numbers and other illegal items. At the time, AlphaBay was considered to be the world’s largest online drug marketplace.
As a moderator on AlphaBay, Herrell settled disputes between vendors and purchasers and settled over 20,000 disputes. He is also accused of serving as a scam watcher — providing a service dedicated to monitor attempts to defraud AlphaBay users. Herrell went by the monikers “Penissmith” and “Botah” and was paid in bitcoin for his participation.
On June 1, 2017, a Fresno grand jury indicted the alleged founder of AlphaBay, Alexandre Cazes, and four days later the Royal Thai Police, with assistance from the FBI and DEA, arrested him at his residence in Bangkok, in connection with his alleged involvement with AlphaBay. At the time of his arrest, law enforcement discovered Cazes’s laptop open and in an unencrypted state. Agents and officers found several text files that identified the passwords/passkeys for the AlphaBay website, the AlphaBay servers, and other online identities associated with AlphaBay. The indictment against Cazes was dismissed as a result of his death. The investigation of AlphaBay and its former administrators continues.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Paul Hemesath and Grant B. Rabenn, and Senior Counsel Louisa K. Marion of the Department of Justice’s Computer Crime and Intellectual Property Section are prosecuting the case.
Herrell is scheduled to be sentenced on May 18. He faces a maximum statutory penalty of 20 years in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Child Porn Charges Added to Threat Charge Against Salina ManRead the Press Release
WICHITA, KAN. – A Salina man who was charged with posting a threat against the president on social media is now facing child pornography charges, too, U.S. Attorney Stephen McAllister said.
Aaron McDowell, 24, Salina, was charged in a criminal complaint today with one count of presenting and distributing child pornography and one count of possessing child pornography. In the earlier case, McDowell faces one count of making a threat against the president. A criminal complaint filed Jan. 21, 2020, alleges McDowell posted on his Facebook page, “I’m going to kill Trump in the white house tomorrow at 7 p.m.”
In the new case, an agent’s affidavit alleges that while investigating the threat case investigators found child pornography on McDowell’s cellular phone containing children performing sex acts. A total of 152 files of child pornography were found on the phone.
Further searches found 2,800 child pornography images in McDowell’s account on Mega, a cloud storage and file hosting service. Investigators also found chats in which child pornography was distributed. McDowell is alleged to have sent a link to another user on a messaging application called Chatous that connected to child pornography in online storage.
If convicted, the defendant could face not less than five years and not more than 20 years on the presenting and distributing count and up to 20 years and a fine up to $250,000 on the possession charged. The U.S. Secret Service, the Sedgwick County Sheriff’s Office and the Kansas Internet Crimes Against Children (ICAC) Task Force investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
California's Four U.S. Attorneys Agree It’s Time for a Permanent Ban on Fentanyl AnaloguesRead the Press Release
The following statement was issued by the four U.S. Attorneys who serve California: Nicola T. Hanna (Central District of California), David L. Anderson (Northern District of California), Robert S. Brewer (Southern District of California) and McGregor W. Scott (Eastern District of California)
In 2017, almost 50,000 Americans died from opioid overdoses. In California alone, there were 2,428 fatal opioid overdoses in 2018. And it’s getting worse. In San Francisco and Los Angeles counties, for instance, opioid fatalities have increased by 54% and 41%, respectively, since 2016. San Diego County and the Central Valley are also experiencing unprecedented levels of fatal opioid overdoses. This is a crisis, and illicitly produced fentanyl is largely responsible.
To fight this epidemic, law enforcement must have all the necessary tools at their disposal. One such tool is the Drug Enforcement Administration’s (DEA) 2018 order making all fentanyl-related drugs illegal in the United States. Unfortunately, that order was temporary and will expire in less than two weeks. The Senate recently passed bipartisan legislation approving a 15-month extension of the temporary order. While this is a step in the right direction, and the House should pass the Senate’s bill, a longer term solution is needed. We need a permanent ban on all fentanyl-like drugs.
Illicit fentanyl is manufactured in labs in China and Mexico and smuggled into the United States. It is 50 times more powerful than heroin and 100 times more powerful than morphine. So powerful, in fact, that only a couple milligrams – the size of a few grains of salt – can kill the average person.
Fentanyl, however, is unique. Because it is made in labs using chemicals, its structure is easily manipulated. And the drug cartels that manufacture and traffic this synthetic poison into our neighborhoods understand American laws and know how to exploit them. They know that by changing a single molecule in the chemical structure of fentanyl, they have essentially created a new drug. One that, unlike fentanyl, is not illegal in the United States. These drugs, known as “fentanyl analogues,” do as fentanyl does: create more addicts and kill more Americans. The analogues – which can be up to 100 times more potent than fentanyl and 10,000 times more potent than morphine – will become legal if Congress fails to act.
The DEA’s 2018 decision to temporarily schedule – that is, to make illegal – all fentanyl-related substances was a response to the extraordinary legal loophole exploited by drug traffickers. In April 2019, China also outlawed all fentanyl-related substances. This is extraordinary progress, with one caveat. Unlike China’s law, the United States’ has an expiration date.
On Feb. 6, 2020, the DEA’s temporary order expires, and all drugs seized by U.S. investigators over the past two years that have tested positive as fentanyl analogues will no longer be illegal. If Congress fails to pass the legislation it will have a dramatic impact not just on the prosecutors and law enforcement officers who spend their lives investigating and prosecuting drug dealers, but on communities already hard hit by the opioid epidemic, many of which are right here in California.
Despite the tireless efforts of law enforcement, California continues to be a main thoroughfare for fentanyl and fentanyl-like drugs arriving from China and Mexico. In 2019, federal law enforcement agents seized approximately three-quarters of a ton of fentanyl at the six ports of entry we share with Mexico and in all places in between. That’s 20 percent more than in 2018. And our federal resources are not infinite; we need all the help we can get. Passing this legislation would provide invaluable support to us as prosecutors and the entire law enforcement community as we continue to combat the opioid crisis in California and throughout America.
A number of organizations have voiced opposition to the proposed legislation, arguing that the bill does not “embrace public health approaches to the overdose crisis.” We agree that a comprehensive approach to the crisis is needed, and a permanent fentanyl analogue ban should be viewed as part of a holistic effort. But time is running out. There is no doubt that drug traffickers are eagerly awaiting the temporary order’s expiration to start flooding our communities with these dangerous drugs. The passage of this legislation is quite literally a matter of life and death.
There should be nothing partisan about declaring fentanyl analogues illegal. There is certainly nothing partisan about saving lives and bringing justice to those who profit from addiction and death. For the safety of our communities, we urge Congress to pass legislation making permanent the DEA’s temporary scheduling of all fentanyl-related drugs.
Casper Pharmacy Agrees to $1 Million Settlement of Allegations of Violations of the Controlled Substances ActRead the Press Release
United States Attorney Mark Klaassen, along with the U.S. Drug Enforcement Administration (DEA), Denver Field Division Special Agent in Charge Deanne Reuter announced a recent civil settlement involving the Osco pharmacy located at 1076 CY Avenue in Casper, Wyoming, which is owned and operated by Albertsons LLC. On January 21, 2020, Albertsons agreed to pay one million dollars to resolve allegations that its Casper-based pharmacy had committed numerous violations of the Controlled Substances Act (CSA).
The allegations in this case arose from the broader investigation of Casper physician Shakeel Khan, who was convicted on May 24, 2019 and sentenced on August 12, 2019 for “Unlawfully Distributing and/or Dispensing Oxycodone which resulted in the death of another” and “Knowingly Aiding and Abetting Another in Dispensing/Distributing Oxycodone without a legitimate medical purpose” and conspiracy to do the same. While investigating Dr. Khan’s illegal prescribing practices, investigators became concerned about the role of Casper-area pharmacies in filling prescriptions Dr. Khan provided to his patients.
As a safeguard against such abusive prescribing practices, pharmacies are required under the CSA to verify that each prescription is issued for a legitimate medical purpose. The CSA prohibits a pharmacy from dispensing controlled substances pursuant to an illegitimate or invalid prescription.
An audit of the Albertsons Osco Pharmacy #60 in Casper revealed a number of alleged violations of the CSA that occurred between October 15, 2015 and February 28, 2017. Investigators uncovered 128 instances of patients filling prescriptions for unusually large quantities and dosages of narcotics; patients utilizing multiple pharmacies to fill prescriptions; or third parties filling prescriptions for out-of-state patients. Additional record keeping violations were also discovered.
The settlement agreement avoids further litigation, but is not an admission of liability by Albertsons, or a concession by the United States that its claims are not well founded.
“This case is an example of how we must fight prescription drug abuse on both the supply and demand side,” said United States Attorney Mark Klaassen. “We not only focus on users who seek prescription pills for illicit purposes, but also on doctors who may abuse their prescribing authority, and pharmacies who fail to exercise diligence in monitoring prescriptions as required by law.”
“This settlement reflects the Drug Enforcement Administration’s ongoing commitment to utilize all of the tools at its disposal to fight the opioid epidemic, hold the medical and pharmaceutical communities responsible for violations, and protect the citizens of Wyoming,” said DEA Cheyenne Resident Agent in Charge David Tyree.
The investigation was conducted by the DEA Cheyenne Resident Office Tactical Diversion Squad (TDS), in conjunction with the DEA Salt Lake City TDS. Assistant United States Attorney Levi Martin represented the United States.
Burlington County Man Sentenced to 126 Months in Prison for Impersonating Federal AgentRead the Press Release
CAMDEN, N.J. – A Burlington County, New Jersey, man was sentenced today to 126 months in prison for impersonating a federal agent while selling counterfeit coins and unlawfully importing counterfeit coins and bars into the United States, U.S. Attorney Craig Carpenito announced.
Jonathan A. Kirschner, a/k/a “Jonathan Kratcher,” 35, of Moorestown, New Jersey, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with one count of falsely impersonating an agent of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and one count of unlawfully bringing counterfeit coins and bars into the United States. Judge Kugler imposed the sentence today in Camden federal court. Kirschner has been detained since September 2018 after violating his conditions of pretrial release.
According to documents filed in this case and statements made in court:
Kirschner admitted that on May 9, 2017, he sold fake gold bars to a coin collector (Victim 1) for $11,000 in cash. Kirschner wore an ATF badge on a chain around his neck and claimed to be an ATF agent in written correspondence with Victim 1 and when they met in person. Kirschner also admitted that he sold 49 counterfeit Morgan dollar coins to two people (Victims 2 and 3) in Mt. Laurel, New Jersey, on June 4, 2017.
Kirschner told Victims 2 and 3, “I have my badge on,” when providing descriptive information so that Victims 2 and 3 could recognize Kirschner. He admitted that he pretended to be an ATF agent to put his victims at ease in purchasing what Kirschner claimed were gold coins and bars when, in reality, the coins and bars were fake. Kirschner admitted unlawfully bringing counterfeit coins and bars into the United States by importing multiple, falsely manifested packages from other countries, including China.
Judge Kugler also sentenced Kirschner to three years of supervised release, ordered him to pay restitution of $14,600, and ordered forfeiture of all of the counterfeit items.
U.S. Attorney Carpenito credited ATF special agents, under the direction of Special Agent in Charge Charlie J. Patterson, Newark Field Division; and special agents of the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), Cherry Hill Office, under the direction of Special Agent in Charge Brian A. Michael, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office’s Criminal Division in Camden.
Defense counsel: Edward J. Crisonino Esq., Westmont, New Jersey
Brooklyn Woman Charged with Federal Hate Crimes for Anti-Semitic Attacks During HanukkahRead the Press Release
A criminal complaint was unsealed yesterday in federal court in Brooklyn charging Tiffany Harris with committing three separate anti-Semitic attacks against Orthodox Jewish women while they were walking on public streets in Brooklyn, New York, during Hanukkah. Harris will make her initial appearance at a later date.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the charges.
As set forth in the complaint, the first attack occurred on December 27, 2020, at approximately 12:40 a.m., at the corner of Eastern Parkway and Kingston Avenue in Crown Heights. Harris approached a woman who was walking alone and, without warning, slapped her in the face with an open hand. Five minutes later at the corner of President Street and Kingston Avenue, Harris approached a woman who was walking with a group of people – two of whom were visibly Orthodox Jewish – and slapped the victim in the back of her head with an open hand while stating, “F—k the Jews.” Several minutes later at the same intersection, Harris approached a third victim who was walking alongside another visibly Orthodox Jewish woman, and slapped her in the face with an open hand. Harris was arrested by NYPD officers near the scene of the assaults, and was positively identified by the three victims.
“As alleged in the criminal complaint, the defendant attacked three women solely because they were Jewish, striking not only at the innocent victims, but also at our country’s founding principles of tolerance and respect for civil rights,” stated United States Attorney Donoghue. “The use of violence, or the threats of violence, against anyone based on the victim’s religion will not be tolerated, and those who engage in such conduct will learn that under federal law there are serious consequences for hate crimes.” Mr. Donoghue commended the NYPD officers who quickly responded and apprehended the defendant.
“Any offensive physical assault is a crime of violence, and it should be obvious that perpetrators need to be held accountable,” stated FBI Assistant Director-in-Charge Sweeney. “When one’s actions are motivated by their hatred of another group and supported by anti-Semitic sentiments, however, it opens up the possibility of federal criminal charges, which are hard to walk away from. Tiffany Harris now faces up to 10 years in prison for her alleged actions. The lesson to others thinking of behaving as we allege Ms. Harris did—knock it off now or we are going to lock you up. The anti-Semitic attacks in this city and elsewhere have been outrageous, and the FBI will use the full extent of the laws at our disposal to protect the community.”
The charges in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces up to 10 years in prison.
The government’s case is being handled by the Office’s Civil Rights Section. Assistant United States Attorney Gillian Kassner is in charge of the prosecution.
The Defendant:
TIFFANY HARRIS
Age: 30
Brooklyn, New YorkE.D.N.Y. Docket No. 20-MJ-10
Bergen and Burlington County, New Jersey, Religious Leaders Sentenced to Federal Prison for Conspiracy to Evade Taxes on Millions of Dollars in Income from ChurchRead the Press Release
NEWARK, N.J. – The leader and the main treasurer of the Israelite Church of God in Jesus Christ were sentenced to federal prison today for their respective roles in a scheme in which both men caused the church to pay millions of dollars in personal expenses for the leader that the leader then omitted from his personal tax returns, U.S Attorney Craig Carpenito announced.
Jermaine Grant, 44, of Burlington Township, New Jersey, was sentenced to 18 months in prison and Lincoln Warrington, 49, of Bergen County, New Jersey, was sentenced to 12 months and one day in prison. Both men previously pleaded guilty before U.S. District Court Judge William J. Martini to Count One of the indictment against them, charging them with conspiring to defraud the United States. Judge Martini imposed the sentence today in Newark federal court.
According to documents filed in the case and statements made in court:
Grant and Warrington used their leadership positions in the church to divert to Grant millions of dollars belonging to the church and its members for Grant’s personal use and benefit. The defendants used a variety of methods to carry out the scheme. For example, Grant and Warrington created a purported entertainment company that portrayed Grant as an industry mogul whose wealth was derived from his success in the industry, thereby concealing from church members that his lifestyle was supported entirely by the church and donations from its members. Grant and Warrington also used the church’s money to pay Grant’s other personal expenses, including payments for rental real estate properties, vacations, high-end luxury items, and private school tuition for Grant’s minor children. Grant, with Warrington’s assistance, then omitted these benefits from his individual income tax returns, resulting in the evasion of a substantial amount of tax due and owing to the United States. In total, Grant and Warrington concealed millions of dollars in income from the IRS, and failed to pay at least $250,000 in taxes.
The plea agreements in this matter include a requirement that the church will develop and present to the United States a plan designed to ensure the church’s compliance with applicable federal income tax laws going forward. Before the United States returns to the church certain cash and property seized during execution of the search warrants in this case, the compliance plan must address the disposition of that cash and property and ensure that they are returned for the benefit of the church rather than for the personal benefit of Jermaine Grant or any other individual.
In addition to the prison term, Judge Martini sentenced Grant and Warrington to three years of supervised release.
U.S. Attorney Carpenito credited special agents of the FBI’s Newark Division, under the direction of Special Agent in Charge Gregory W. Ehrie, and IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s sentencings.
The government is represented by Assistant U.S. Attorney Margaret A. Mahoney, Senior Trial Counsel for the National Security Unit in Newark, and First Assistant U.S. Attorney Rachael A. Honig.
Defense counsel: Grant: Gerald Lefcourt Esq., New York
Warrington: Richard Levitt Esq., New YorkBVI National Charged with Destroying Cell Phone to Impede Investigation and with Illegal Entry into the United StatesRead the Press Release
St. Thomas, USVI – Juwon Cordelle Potter, a citizen of the British Virgin Islands, was charged with destroying a record or tangible object with the intent to impede a federal investigation and with knowingly and willfully entering the United States at a time and place other than as designated by Immigration Officers. Juwon Cordelle Potter made his initial appearance before U.S. District Judge Curtis Gomez on Thursday. After preliminary and detention hearings on Friday, U.S. Magistrate Judge Ruth Miller ordered Juwon Cordelle Potter detained.
The complaint alleges that Customs and Border Patrol marine interdiction agents stopped a vessel leaving United States territorial waters and entering British Virgin Islands waters. According to court documents, the captain of the vessel, Juwon Cordelle Potter, permitted a search of his phone, which revealed a picture of two men and several messages stating "just the two men?" and "send the 2000 WU to Juwon Potter." An agent from Homeland Security Investigations placed the phone on a work surface on the CBP vessel and then moved to the bow to conduct record checks. The agent subsequently heard a splash, observed Juwon Cordelle Potter in the vicinity of where the phone had been placed, and observed the screen of the phone as it sank into the water.
This case is being investigated by Homeland Security Investigations and CBP Air and Marine, and is being prosecuted by Assistant United States Attorney Adam Sleeper.
United States Attorney Shappert reminds the public that a complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty.
Assistant basketball coach charged with sexually abusing minor on Rocky Boy’s ReservationRead the Press Release
GREAT FALLS—An assistant basketball coach at Stonechild College on the Rocky Boy’s Reservation appeared today on charges he sexually abused a minor, U.S. Attorney Kurt Alme said.
Christopher Brown, 31, of Box Elder, was charged by a criminal complaint with sexual abuse of a minor. If convicted of the most serious crime, Brown faces a maximum 15 years in prison, a $250,000 fine and five years of supervised release. The case will be presented to a grand jury for an indictment.
The complaint is merely an accusation, and Brown is presumed innocent until proven guilty.
U.S. Magistrate Judge John T. Johnston presided at the hearing and detained Brown pending further proceedings.
Court records filed by the prosecution accuse Brown of having sex with a minor girl multiple times from July 2018 to December 2019 on the Rocky Boy’s Reservation. Brown worked an assistant basketball coach for Stonechild College and also tutored and helped with coaching basketball at Rocky Boy’s middle and high schools. Through his work as a coach and relationships with friends, Brown became acquainted with the victim.
Assistant U.S. Attorney Jared Cobell is prosecuting the case, which was investigated by the FBI and the Rocky Boy’s Police Department.
Pacer case reference. 20-04.
If the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Armed Career Criminal Found Guilty of Firearm and Drug OffensesRead the Press Release
Jacksonville, Florida – A federal jury has found Jimmy Ray Lightsey (39, Jacksonville) guilty of possessing a firearm in furtherance of a drug trafficking crime, possessing controlled substances with the intent to distribute, and possessing a firearm as a convicted felon. Lightsey, who qualifies as an Armed Career Criminal, faces a mandatory minimum sentence of 20 years, and up to life, in federal prison. His sentencing hearing is scheduled for July 27, 2020.
Lightsey had been indicted on November 15, 2018.
According to testimony presented at trial, on June 24, 2018, officers from the Jacksonville Sheriff’s Office arrested Lightsey for driving without a valid license. A 9mm pistol and a bag of marijuana were observed in plain view inside Lightsey’s car. A search of the vehicle revealed additional marijuana, cocaine, crack cocaine, and empty baggies used for packaging narcotics. The pistol was later determined to have been stolen from a home in Jacksonville approximately two weeks earlier.
At the time of the incident, Lightsey had multiple prior felony convictions, including for the sale or delivery of cocaine and attempted armed robbery with a weapon. Therefore, he is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Jacksonville Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant United States Attorneys David B. Mesrobian and Beatriz Gonzalez.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Antitrust Division Names Alexander Okuliar Deputy Assistant Attorney GeneralRead the Press Release
Assistant Attorney General Makan Delrahim of the Justice Department's Antitrust Division today announced the appointment of Alexander Okuliar to serve as a Deputy Assistant Attorney General. He will be responsible for civil merger and conduct investigations and litigation.
“Alex has distinguished himself throughout his career in the government and in private practice,” said Assistant Attorney General Delrahim. “We are excited to welcome Alex back to the Division, where his elite antitrust experience will bolster the Front Office’s impressive ranks and help us fulfill our mission to protect American consumers.”
Alex’s 20-year career has taken him through tours at both federal antitrust agencies and the private sector. Most recently, Alex was a partner in the antitrust group of an international law firm where he represented clients in transactions and litigation, with an emphasis on matters involving technology, data, media, and finance. From 2012-2015, he was Attorney Advisor to Commissioner Maureen Ohlhausen of the Federal Trade Commission, where he advised the Commissioner on merger reviews, conduct investigations, and administrative litigation before the agency, as well as key privacy and competition policy developments around the world. Earlier, from 2010-2012, he was a Trial Attorney in the Technology and Financial Services Section (then-Networks & Technology Enforcement Section) of the Antitrust Division, where he led numerous investigations, including of the proposed (and subsequently abandoned) merger between the New York Stock Exchange and Deutsche Börse.
Alex is a frequent writer and speaker on competition policy issues associated with technology, data, digital markets and innovation, as well as the intersection of intellectual property and antitrust. He is an active member of the antitrust bar and has served in leadership roles at both the ABA Antitrust Law Section and Federalist Society. Alex received his J.D. from Vanderbilt University Law School and his B.S. in Economics and B.A. in History from the Wharton School and the College of Arts & Sciences of the University of Pennsylvania.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Albany Pharmacist Pleads Guilty to Illegal Distribution of Controlled SubstancesRead the Press Release
BOWLING GREEN, Ky. – An Albany, Kentucky, pharmacist has pleaded guilty to three counts of illegal distribution of controlled substances, announced the United States Attorney’s Office for the Western District of Kentucky.
Kenton L. Shearer was charged via an Information on January 10, 2020, with three counts of illegal distribution of controlled substances.
Between March 10, 2015, and April 15, 2015, Shearer filled, or allowed his employees to fill, prescriptions containing hydrocodone, a Schedule II controlled substance, for patient J.Y., even though Shearer knew that the prescriptions were not written for a legitimate medical purpose. Shearer knew J.Y. was doctor shopping to obtain prescriptions for the same medications from multiple doctors, and because the hydrocodone polistirex (cough medicine) Dr. Michael Cummings prescribed to J.Y. had been prescribed for far longer than recommended in prescription guidelines.
Between August 16, 2011, and June 21, 2014, Shearer filled, or allowed his employees to fill, prescriptions containing hydrocodone, a Schedule III controlled substance, for patient J.Y., even though Shearer knew that the prescriptions were not written for a legitimate medical purpose. Shearer knew J.Y. was doctor shopping to obtain prescriptions for the same medications from multiple doctors, because the hydrocodone polistirex (cough medicine) Dr. Michael Cummings prescribed to J.Y. had been prescribed for far longer than recommended in prescription guidelines, and because Shearer filled prescriptions early on multiple occasions.
Between August 16, 2011, and April 8, 2015, Shearer filled, or allowed his employees to fill, prescriptions containing alprazolam, a Schedule IV controlled substance, for patient J.Y., even though Shearer knew that the prescriptions were not written for a legitimate medical purpose. Shearer knew J.Y. was doctor shopping to obtain prescriptions for the same medications from multiple doctors, and because Shearer filled prescriptions early on multiple occasions.
The United States will seek a sentence of 15 months in federal prison followed by a term of 3 years supervised release. The defendant has agreed to forfeit a $200,000 monetary judgment to the United State, which will be due on or before the sentencing date. Sentencing is set for May 14, 2020.
Dr. Michael Cummings was prosecuted by the United States and was sentenced to 30 months imprisonment in July of 2019.
The case is being prosecuted by Assistant United States Attorney David Weiser. The case was investigated by the Kentucky State Police, Federal Bureau of Investigation (FBI), and the Kentucky Cabinet for Health and Family Services, Office of the Inspector General.
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4 charged in 2 cases involving assaults on officersRead the Press Release
LAREDO, Texas – A Laredo grand jury has charged three Honduran nationals and a young Guatamalan man for assaulting Border Patrol (BP) agents, announced U.S. Attorney Ryan K. Patrick.
The first indictment charges Walter Yobani Ordones-Chavez, 32, Jose Manuael Zapata-Suazo, 28, and Kelvin Midencio Benedict-Garcia, 32, with forcible assault on an officer Dec. 31, 2019. Two days prior, Juan Jehovany. 19, was allegedly involved in a similar violent attack.
The New Year’s Eve incident began at approximately 6:45 a.m. after BP agents discovered a group entering the United States from Mexico by illegally crossing the Rio Grande River, according to the charges. The agents then allegedly followed their tracks, leading them to a storage shed located at a private residence.
There, the three illegal aliens violently resisted three separate agents who were attempting to apprehend them, according to the charges. The three Honduran men allegedly struck the agents, attempted to flee and ignored multiple commands to halt before authorities were ultimately able to detain them.
In a separate incident and case, a BP agent was investigating a pickup truck believed to be involved in an alien smuggling attempt Dec. 29, 2019, according to the charges. The agent allegedly heard noises from the truck bed and noticed several people hiding underneath a blanket. They allegedly attempted to flee, during which time the agent was knocked to the ground.
The charges allege Cac-Calel was one of the illegal aliens in the truck and actively resisted and pushed the agent as he attempted to detain him. The agent attempted to handcuff him, but Cac-Calel continued to violently struggle, according to the charges. Cac-Calel allegedly grabbed the agent’s handcuffs and swung them at his face. He also struck his hand as the agent attempted to use his pepper spray, according to the charges.
Three of the agents sustained injuries which required treatment at a medical facility.
If convicted, Ordones-Chavez, and Benedict-Garcia face up to 20 years in prison, while Cac-Calel and Zapata face a possible eight-year-term.
The FBI and Border Patrol conducted both investigations. Assistant U.S. Attorney (AUSA) Jennifer Day is prosecuting the Cac-Calel case, while AUSA Francisco J. Rodriguez is handling the other matter.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
'Sovereign citizen' who targeted federal judges and government officials sentenced to 25 years in prisonRead the Press Release
AUGUSTA, GA: A Georgia man who began by filing false tax returns claiming millions of dollars, then escalated to filing multi-million dollar liens against government officials and attempting to put them into involuntary bankruptcy, culminated today in one of the longest federal sentences ever handed out for a false retaliatory lien case.
Timothy Jermaine Pate, a/k/a Akenaten Ali, 43, of Augusta, was sentenced today by Judge R. Stan Baker in U.S. District Court in Augusta to 300 months in prison, followed by three years of supervised release after completion of his sentence, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia.
There is no parole in the federal system.
“Timothy Pate tried to subvert the administration of government,” said U.S. Attorney Christine. “He tried to extract millions of taxpayer dollars by bullying hard-working public servants and threatening federal judges. His paper terrorism has now earned him 25 years in federal prison.”
Pate was convicted in October 2019 on 15 counts of filing false retaliatory liens against federal officials and five counts of making a false bankruptcy declaration, which stem from his efforts to put federal officials into bankruptcy against their will.
According to the evidence presented at trial, Pate filed tax returns from 2016 through 2018 falsely claiming he was owed more than $7 million in tax refunds. Pate also attempted to have the IRS pay his past-due child support. After the IRS repeatedly rejected his false returns, Pate – a U.S. citizen and Georgia resident who claimed to be a Moorish national not subject to U.S. law – filed a federal civil case against the IRS commissioner seeking tax refunds.
Pate attempted to have the court order the arrest of the IRS commissioner. When that failed, Pate threatened to file liens against the federal judge assigned to his case and other officials of the U.S. Treasury, unless he was paid millions of dollars from the IRS. Unbowed by his threats, the victim-public servants in this case continued to carry out their duties.
Pate carried out his threats. In May 2018, he filed liens ranging from $15 million to $33 million against a U.S. magistrate judge in Augusta, the former U.S. Treasury secretary, IRS commissioner, and the Treasury inspector general, among others. He then published notices of the liens in The Augusta Chronicle. The next month, Pate targeted additional federal officials with bogus liens; this time, he went after a federal bankruptcy judge in Augusta, the U.S. Bankruptcy clerk of court, and the U.S. magistrate judge for liens ranging from $15 million to $100 million.
When his victims refused to order the payment of his claimed refunds, Pate filed involuntary bankruptcy petitions against five federal officials on May 21, 2018, that would have put them into bankruptcy. Pate was arrested by federal authorities in August 2018 and has remained jailed since.
“At IRS Criminal Investigation, our top priority is protecting the integrity of our nation’s tax system,” said Thomas J. Holloman, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “Today’s sentence should send a clear message that orchestrating a scheme to file bogus returns and liens while seeking to abuse the tax system will result in your prosecutions.”
“As we approach tax filing season, those who consider committing refund fraud and filing false liens should be aware of the extremely negative consequences of doing so, especially against federal officials,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “This sentence is an example of the FBI and our federal partners commitment to vigorously pursue anyone who tries to enrich themselves by circumventing the judicial process.”
The investigation was led by the FBI, IRS, and Treasury Inspector General for Tax Administration, and the case was prosecuted by the Criminal Division of the U.S. Attorney’s Office for the Southern District of Georgia, with assistance from the Department of Justice’s Tax Division.
27 January 2020
Woman from Mexico Sentenced After Arrest with 21 Pounds of MethRead the Press Release
WICHITA, KAN. – A woman from Mexico who was stopped in Kansas with 21 pounds of methamphetamine was sentenced today to 85 months in federal prison, U.S. Attorney Stephen McAllister said.
Maria Alonso-Espinoza, 30, pleaded guilty to one count of possession with intent to distribute methamphetamine. The Kansas Highway Patrol stopped her car on Feb. 26, 2019, on Interstate 70 near Russell, Kan. Her brother was driving and she was riding as a passenger. She was the registered owner of the car.
Troopers found 21 pounds of methamphetamine hidden in the driver’s side rear quarter panel. Investigators learned Alonso-Espinoza was taking the methamphetamine from Colorado to Wichita for distribution.
McAllister commended the Kansas Highway Patrol, the Wichita Police Department and Assistant U.S. Attorney Mona Furst for their work on the case.
Wisconsin Accountant Found Guilty of Conspiracy to Obtain over $260 Million in Small Business ContractsRead the Press Release
Mark F. Spindler, a certified public accountant, was found guilty of conspiring with Brian L. Ganos in a scheme to use front companies to obtain set-aside contracts intended for small businesses led by service-disabled veterans and disadvantaged individuals.
United States Attorney Matthew D. Krueger announced that on January 24, 2020, a jury found Mark F. Spindler of Menomonee Falls, Wisconsin, guilty of conspiracy to commit wire and mail fraud. Spindler is a certified public accountant (“CPA”) in the firm Komisar & Spindler, s.c. From the late 1990s to 2017, Spindler provided accounting services to Brian L. Ganos and Milwaukee-based construction companies Ganos controlled, including Sonag Company, Inc.; Sonag Ready Mix LLC; Nuvo Construction Company, Inc.; and C3T, Inc.
After a four-day trial before the Honorable Pamela Pepper, Spindler was found guilty of conspiring with Ganos and others in scheme to use front companies to obtain set-aside contracts intended for small businesses owned by service-disabled veterans and disadvantaged individuals. The scheme involved operating three construction companies with straw owners who qualified as a disadvantaged individual or as a service-disabled veteran, but who did not actually control the companies. Ganos then fraudulently obtained small business program certifications to win government-funded contracts to which the companies were not entitled. Specifically,
- Nuvo Construction Company, Inc. (“Nuvo”) was misrepresented to be majority-owned and controlled by Jorge Lopez in order to obtain certifications as a Small Disadvantaged Business from the U.S. Small Business Administration (“SBA”) and as a Disadvantaged Business Enterprise from Milwaukee County. In reality, Jorge Lopez worked full-time for a different entity in Minnesota and did not actually control Nuvo.
- C3T, Inc. was misrepresented to be majority owned and controlled by Telemachos Agoudemos to obtain verification as a Service-Disabled Veteran-Owned Small Business. In reality, for long stretches, Telemachos Agoudemos had virtually no involvement in C3T.
- Pagasa Construction Company, Inc. was misrepresented to be majority owned and controlled by Odessa Millan in order to obtain certification as a Small Disadvantaged Business from the SBA. In reality, Odessa Millan relied on the assistance of Ganos-controlled companies to form Pagasa.
The scheme continued from 2004 to mid-2016 during which period, Ganos and others used those certifications to obtain over $260 million in federal, state, and local contract payments. These included federal construction contracts that were set aside for small businesses controlled by service-disabled veterans or disadvantaged individuals.
At trial, the government introduced evidence that Spindler participated in the conspiracy in several ways, including:
- Spindler wrote multiple letters to certifying agencies that contained false information and enabled the front companies to retain their certifications. For example, Spindler wrote a letter for the Department of Veterans Administration (“VA”) that claimed T.A. was the highest-compensated employee of C3T, when in fact, multiple C3T employees were earning more than Telemachos Agoudemos, the purported President of C3T.
- Spindler provided accounting advice to help Ganos and others conceal the profits they were moving out of the front companies. For example, Spindler provided accounting entries that charged “services” from Ganos’s Sonag Company to the front companies, even though no services had been rendered, in order to justify millions of dollars that Ganos was taking from the front companies.
- Spindler lied to criminal investigators from the FBI and VA during an interview in June 2012. Spindler falsely stated that Ganos had no influence over C3T and that the front companies had no affiliation with each other or Ganos’s Sonag Company. Partly as a result of Spindler’s false statements, the criminal investigation was closed and the scheme continued for four more years. Only after new information came to light several years later was a new investigation started, which eventually ended the scheme.
Spindler is scheduled to be sentenced on May 6, 2020. The maximum penalties for the wire and mail fraud conspiracy conviction are 20 years in prison, a $250,000 fine, and a term of supervised release. In December 2019, Spindler’s co-conspirator, Ganos, was sentenced to 78 months in prison. Ganos had earlier pleaded guilty to one count of wire fraud and one count of mail fraud. Four other individuals and one corporation have also pleaded guilty to a felony charge in connection with the conspiracy.
“This verdict shows that CPAs and other professionals who use their expertise to facilitate fraud will be held accountable,” said United States Attorney Krueger. “CPAs hold a position of trust in our society because they are supposed to exercise objective, independent judgment as they review clients’ financial statements. Spindler exploited that trust and used the credibility of his CPA license to enable a massive fraud scheme. What’s worse, the scheme stole opportunities from disabled veterans and disadvantaged individuals who lost out on the contracts that Spindler helped Ganos steal. I commend the extraordinary efforts of the federal agencies that investigated this complex case and brought this sweeping fraud to light.”
The following agencies participated in the investigation: the Federal Bureau of Investigation; U.S. General Services Administration, Office of Inspector General; Department of Veterans Affairs, Office of Inspector General; Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service; U.S. Department of Transportation, Office of Inspector General; U.S. Small Business Administration, Office of Inspector General, Investigations Division; Defense Contract Audit Agency; and U.S. Army Criminal Investigations Command Major Procurement Fraud Unit.
At trial, the government was represented by United States Attorney Matthew D. Krueger and Assistant United States Attorney Adam H. Ptashkin. The case and related forfeiture matters were also handled by Assistant United States Attorneys Scott J. Campbell and Michael A. Carter.
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- Nuvo Construction Company, Inc. (“Nuvo”) was misrepresented to be majority-owned and controlled by Jorge Lopez in order to obtain certifications as a Small Disadvantaged Business from the U.S. Small Business Administration (“SBA”) and as a Disadvantaged Business Enterprise from Milwaukee County. In reality, Jorge Lopez worked full-time for a different entity in Minnesota and did not actually control Nuvo.
Wetzel County woman admits to heroin distributionRead the Press Release
WHEELING, WEST VIRGINIA – Jane Grace Dawson, of New Martinsville, West Virginia, has admitted to a drug charge, U.S. Attorney Bill Powell announced.
Dawson, age 31, pled guilty to one count of “Conspiracy to Distribute Heroin.” Dawson admitted to working with others to distribute heroin in Wetzel County and elsewhere from March 2019 to August 2019.
Dawson faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The West Virginia State Police investigated.
U.S. Magistrate Judge James P. Mazzone presided.
West Virginian Business Owners Sentenced to Prison for Failing to Pay Employment and Individual Income TaxesRead the Press Release
Two West Virginian business owners were sentenced to prison today for conspiring to defraud the United States of employment and income taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Michael B. Stuart for the Southern District of West Virginia. Russell Rucker was sentenced to serve 18 months in prison, and his wife, Karen Rucker, was sentenced to six months in prison.
According to court documents and statements made in court, the Ruckers operated Rucker, Billups and Fowler Inc. (RBF), an insurance agency located in Huntington, West Virginia. Russell Rucker was the president of RBF and since approximately late 2013, Karen Rucker served as a financial officer. Between September 2015 and September 2018, the Ruckers withheld approximately $143,226 in payroll taxes from the wages of RBF’s employees, which they did not pay over to the Internal Revenue Service (IRS). Instead, the Ruckers diverted portions of the withheld funds for their own personal benefit. For instance, from 2014 through 2016 the Ruckers continued to pay themselves over $500,000 in salary. In response to IRS collection efforts and in an attempt to conceal funds from the IRS, the Ruckers deposited money into the bank account of another individual. The Ruckers also attempted to evade IRS levies by using a series of bank accounts that they did not disclose to the IRS and by paying many of their bills in cash, including their mortgage.
In addition, the Ruckers sought to evade payment of Russell Rucker’s 2001, 2002, and 2005 individual income taxes by disguising paychecks issued to Russell Rucker as non-taxable “note proceeds,” and they failed to file their individual income tax returns and RBF’s corporate returns for 2014 through 2017. The intended tax loss caused to the IRS by their conduct is more than $250,000.
In addition to the term of imprisonment, U.S. District Robert Chamber ordered the Ruckers to each serve three years of supervised release and to pay approximately $258,137 in restitution to the United States.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Stuart commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Alexander Effendi and Lauren Archer of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.