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23 January 2020
Gary Man Sentenced to 54 Months in PrisonRead the Press Release
HAMMOND- Brion Harris, 36, of Gary, Indiana, was sentenced before District Court Judge Philip P. Simon following his plea of guilty to possessing a firearm as a previously convicted felon, announced U.S. Attorney Kirsch.
Harris received a sentence of 54 months in prison followed by 1 year of supervised release.
According to documents filed in this case, on January 2, 2019, during a traffic stop in Gary, Indiana, Harris was arrested in possession of two loaded firearms. Harris has a prior felony conviction for possession of a sawed off shotgun.
This case was investigated by the FBI GRIT Task Force and Gary Police Department and was prosecuted by Assistant United States Attorney Caitlin M. Padula.
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Frankfort Man Sentenced to 135 Months for Trafficking AcefentanylRead the Press Release
FRANKFORT, KY- A Frankfort, Kentucky, man, Leonard Glover, 32, was sentenced to 135 months on Thursday by U.S. District Court Judge Gregory VanTatenhove, after previously admitting to possession with the intent to distribute 10 grams of more of acefentanyl.
According to the plea agreement, Glover admitted that on June 11, 2019, he sold 13 grams of acetylfentanyl to a confidential informant in Midway, Kentucky. Glover was apprehended immediately after the exchange.
Glover pleaded guilty in October 2019.
Under federal law, Glover must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for five years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Dan Dodds, Acting Special Agent in Charge for DEA-Louisville Field Division; and Commissioner Rodney Brewer, Kentucky State Police; jointly announced the sentence.
The investigation was conducted by the DEA. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney David Kiebler.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Founder and Former Chairman of the Board of Insys Therapeutics Sentenced to 66 Months in PrisonRead the Press Release
BOSTON – The founder of Insys Therapeutics, John Kapoor, was sentenced today in federal court in Boston for orchestrating a scheme to bribe practitioners to prescribe Subsys, a fentanyl-based pain medication, often when medically unnecessary.
John Kapoor, 76, of Phoenix, Ariz., was sentenced by U.S. District Court Judge Allison D. Burroughs to 66 months in prison, three years of supervised release, and ordered to pay forfeiture and restitution to be determined at a later date. The government recommended a sentence of 15 years in prison.
In May 2019, Kapoor was convicted by a federal jury of racketeering conspiracy along with four other Insys executives.
As a veteran of the pharmaceutical industry, Kapoor learned that he could profit from developing a spray delivery system for a generic drug, then marketing it as a premium product. Kapoor privately funded Insys as it developed Subsys, which was eventually approved to treat cancer patients suffering intense breakthrough pain. With such significant personal financial investment, Kapoor was committed to ensuring that Insys was successful, and he did so by exercising tight control on all aspects of corporate decision making. Kapoor hired, or authorized the hiring of, several top executives who became co-conspirators in the criminal scheme to bribe practitioners, many of whom operated pain clinics, to prescribe Subsys to patients, often when medically unnecessary
In 2012, Kapoor authorized the use of “speaker programs” purportedly intended to increase brand awareness of Subsys through peer-to-peer educational lunches and dinners. However, the programs were used as a vehicle to pay bribes and kickbacks to targeted practitioners in exchange for increased Subsys prescriptions and increased dosage. Kapoor insisted that profits generated should double the amount of money spent paying doctors. In October 2012, Kapoor instructed the Vice President of Marketing to calculate the return on investment (ROI) for each speaker to determine if the speaker had a “positive ROI.” Practitioners who failed to meet satisfactory prescribing requirements were ousted from the speaker program. Kapoor approved bribing doctors that he knew abusively prescribed opioids.
Kapoor controlled and enforced the criminal scheme on a daily basis during a morning meeting, referred to as the “8:30 call,” which also involved many of his co-defendants. One of the topics discussed was the scheme to bribe doctors. Kapoor routinely discussed the suitability of additional funds, and which doctors were writing prescriptions for Subsys or a competitive drug.
Kapoor knew that the success of Insys depended on insurers approving payment for Subsys. In October 2012, Kapoor approved the creation of a pilot program, the “Insys Reimbursement Center” (IRC), which was dedicated to obtaining prior authorization for payment directly from insurers and pharmacy benefit managers. To do so, employees of the IRC posed as employees of the practitioner and used a script of false and misleading representations about patient diagnoses in order to secure approval for the drug by the insurance provider. For example, since insurers were more likely to authorize payment for Subsys if a patient was being treated for cancer-related pain, IRC employees were instructed to mislead insurers regarding the true diagnosis of the patient. Kapoor approved these tactics, and demanded a 100% success rate.
“Out of pure greed, Insys executives, from John Kapoor on down, bribed doctors to prescribe this powerful and highly addictive narcotic to people who did not need it. Despite increasing public fears of a drug epidemic fueled by pain pill prescriptions, these defendants, led by Kapoor, ploughed ahead, setting weekly quotas for doctors on their payroll, urging them to prescribe Subsys in higher and higher doses, all so they could make millions of dollars at patients’ expense. Their disregard for the public’s health and safety is nothing short of appalling. This case is not only about punishing these defendants. It is also about making the next pharmaceutical company think twice about its sales tactics and the basic corporate responsibility to not victimize the public,” said United States Attorney Andrew E. Lelling. “This was a landmark prosecution that successfully held accountable a pharmaceutical company’s top executives for their roles in the illicit marketing and prescribing of opioids.”
“John Kapoor and his loyal lieutenants minimized their actions and distanced themselves from the harm they were committing on patients whose lives they ultimately ruined, and now all of them are finally being held accountable for their criminal conduct,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Their downfall illustrates the FBI’s commitment to attacking the ongoing opioid crisis from every angle, and we will continue to identify and dismantle criminal enterprises like this one to ensure those who are responsible for patient care are taking care of patients, and not themselves.”
“These sentences undoubtedly send a clear message to health care executives relying on illegal schemes to increase profits: they will be held accountable for corporate crimes. The reckless and dangerous violation of law by these pharmaceutical executives is extremely serious, and we will not tolerate those who put profits above the well-being of patients. We will continue to attack the opioid crisis from all angles, including holding the pharmaceutical industry and its leadership accountable,” said Phillip Coyne, Special Agent in Charge of the U.S Department of Health and Human Services, Office of the Inspector General.
“The FDA continues to respond forcefully to the ongoing opioid epidemic – one of the largest public health tragedies our country has faced – by ensuring the safe and appropriate use of these powerful medications. But bribing healthcare providers to prescribe this most powerful type of opioid – an immediate release form of fentanyl – is not only unacceptable, it puts patients at serious risk of overdose and potentially death,” said Judith McMeekin, Acting Associate Commissioner for Regulatory Affairs at the U.S. Food and Drug Administration. “This conduct cannot be tolerated, and the FDA remains fully committed to working with our law enforcement partners to bring to justice those who place profits before the public’s health.”
“The reckless actions by this executive whose product included controlled medications increased the potential for diversion and addiction, which jeopardizes the public health and safety,” said Drug Enforcement Administration Special Agent in Charge Brian D. Boyle. “DEA pledges to work with our law enforcement and regulatory partners to ensure that rules and regulations are followed.”
“Ensuring the integrity of TRICARE and combating the dangers posed to military members and their dependents by improperly prescribed opioids are top priorities for the Defense Criminal Investigative Service (DCIS),” stated Leigh-Alistair Barzey, Special Agent in Charge of the DCIS Northeast Field Office. “Today's sentencing marks the successful conclusion of this investigation and demonstrates the DCIS’ ongoing commitment to work with its law enforcement partners and the USAO-MA to identify, investigate and prosecute individuals and pharmaceutical companies that seek to fraudulently profit at the expense of patients.”
“John Kapoor and the other executives in this case criminally conspired to place profits before patients, all to drive sales of a highly potent and addictive opioid. The prosecution of these pharmaceutical executives demonstrates that healthcare fraud will not be tolerated. The Employee Benefits Security Administration will continue collaborating with our law enforcement partners in these important investigations to protect participants in private sector health plans, detect and deter health care fraud, and contribute to fighting the opioid epidemic,” said Carol S. Hamilton, Acting Regional Director of the U.S. Department of Labor, Employee Benefits Security Administration, Boston Regional Office.
“Today’s sentence is the result of a coordinated investigation by law enforcement agencies who are committed to ending the nation’s opioid crisis,” said Inspector in Charge Joseph W. Cronin of the U.S. Postal Inspection Service’s Boston Division. “Insys Therapeutics executives profited by offering bribes and kickbacks in exchange for prescriptions of a highly addictive fentanyl spray. These practices put the health of the American public at risk and jeopardized the integrity of our mail system.”
“The defendants in this investigation put the company’s bottom line before the welfare of the patients who were in need of genuine care,” said Matt M. Modafferi, Special Agent in Charge of U.S. Postal Service Office of Inspector General. “The sentences imposed on the defendants will serve as a reminder that there are severe consequences when individuals and companies use these type of tactics in order to drive up their pharmaceutical sales. I commend the U.S. Attorney’s Office and our law enforcement partners for their tireless efforts leading up to and through the successful ten week trial of the defendants.”
“These sentences not only hold the defendants accountable, they demonstrate the ongoing commitment of VA OIG to ensure the safety and integrity of VA healthcare programs. VA OIG and its law enforcement partners will continue to vigorously investigate healthcare fraud at VA and hold accountable anyone who puts the well-being of veterans, their dependents, or the public at risk,” said Acting SAC Jeff Stachowiak.
Thomas W. South, Deputy Assistant Inspector General for Investigations, OPM OIG said: “There is no doubt that the unscrupulous practices of Insys Therapeutics and its founder John Kapoor have fueled the devastating national opioid epidemic. We are incredibly proud to have been a part of this groundbreaking case and I applaud the exceptional work of our investigators and law enforcement partners. Bribing physicians across the country to overprescribe Subsys risked the lives of thousands of patients and today’s sentencing is an important step toward accountability and justice.”
Assistant U.S. Attorneys K. Nathaniel Yeager, Fred M. Wyshak and David G. Lazarus prosecuted the case for Lelling’s Health Care Fraud Unit.
Founder of Meridian Capital Asset Management Sentenced to Two Years in Prison for Stealing over $1 Million of Investor FundsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that JOHN GERACI was sentenced today in Manhattan federal court to 24 months in prison for conspiring to commit securities and wire fraud. GERACI participated in a scheme to defraud investors in his company, Meridian Capital Asset Management. GERACI caused two clients (“Victim-1” and “Victim-2”) to invest in a hedge fund through his company called the Meridian Matrix Long Short Fund (the “Meridian Matrix Fund”). Between in or about December 2015 and November 2016, GERACI provided fictitious account statements and updates to Victim-1 and Victim-2, telling them that their investment was worth millions when, in reality, GERACI knew that large portions of it had been stolen by the Meridian Matrix Fund’s co-founder, Nicholas Mitsakos. GERACI eventually liquidated the Meridian Matrix Fund and misappropriated significant portions of the remaining funds. Although GERACI had stolen over $1 million of Victim-1 and Victim-2’s investment for himself, GERACI falsely told them that their entire investment had been taken by Mitsakos. GERACI used the stolen money to pay his own personal and business expenses.
GERACI pled guilty on October 3, 2019, and was sentenced by United States District Judge Alison J. Nathan.
U.S. Attorney Geoffrey S. Berman said: “John Geraci lied to his clients about their investment with Nicholas Mitsakos, and later concealed that he had recovered a significant portion of their investment from Mitsakos. Now Geraci, like Mitsakos before him, is headed to prison.”
According to the Complaint, the Indictment, and other statements made in open court:
GERACI was the principal and founder of Meridian Capital Asset Management. In or about February 2015, GERACI was introduced to Nicholas Mitsakos, who purported to operate a hedge fund called Matrix Capital (“Matrix”). Mitsakos told GERACI that Matrix had tens of millions of dollars under management and had achieved annual returns between 19.4% and 66.3% from 2012 to 2014. GERACI and Mitsakos subsequently entered into an arrangement whereby GERACI would raise money for Mitsakos, Mitsakos would manage that money through a new vehicle, the Meridian Matrix Fund, and GERACI and Mitsakos would then split any fees that the Meridian Matrix Fund generated. As part of this arrangement, GERACI solicited Victim-1 and Victim-2 to invest approximately $2 million in the Meridian Matrix Fund, in large part by relying on Mitsakos’s claims about his supposed fund’s assets under management and performance returns.
By in or about December 2015, however, GERACI learned that Mitsakos had only invested approximately $1.2 million of Victim-1 and Victim-2’s investment, and had misappropriated significant portions of the remaining money. GERACI also learned that Mitsakos never had any actual assets under management, and that his performance returns were accordingly fictitious and misleading. Nonetheless, GERACI never told Victim-1 or Victim-2 that their investment was in jeopardy or had been solicited with misleading information. To the contrary, GERACI sent Victim-1 and Victim-2 updates that hid Mitsakos’s misappropriation and falsely claimed that their investment had appreciated. GERACI sent these fictitious updates even after GERACI had liquidated the Meridian Matrix Fund’s trading positions in or about June 2016. Beginning in or about November 2015, GERACI also misappropriated hundreds of thousands of dollars of Victim-1 and Victim-2’s money for himself.
In or about August 2016, Mitsakos was charged in this District with securities fraud and other offenses. In or about September 2016, GERACI changed course: Instead of providing fictitious account updates to Victim-1 and Victim-2, GERACI told them, in substance and in part, that their entire investment had been wiped out through Mitsakos’s fraud. GERACI did this even though he had ultimately received approximately $1.1 million of Victim-1 and Victim-2’s investment back from Mitsakos, including after liquidating the Meridian Matrix Fund’s trading positions. Rather than returning this amount to Victim-1 and Victim-2, GERACI used it to pay for his own personal and business expenses, including, for example, payments on a BMW automobile, a gym membership, gas, groceries, travel expenses, and his cellphone bill.
In addition to sending false account updates to Victim-1 and Victim-2 even after learning that Mitsakos had lied about his fund’s assets and performance and that Mitsakos had stolen significant portions of Victim-1 and Victim-2’s investment, GERACI continued to try to raise money from others for an investment related to the Meridian Matrix Fund. In attempting to do so, moreover, GERACI relied on the same representations about Matrix’s assets and performance that he knew to be false.
Mitsakos pled guilty to conspiring to commit securities fraud and wire fraud on May 25, 2017, and was sentenced on November 7, 2017, to 30 months in prison by the Honorable Denny Chin, a judge on the United States Court of Appeals for the Second Circuit who was sitting by designation in the Southern District of New York.
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In addition to the prison sentence, GERACI, 62, was sentenced to three years of supervised release. The Court further ordered GERACI to forfeit a sum of $1,098,971.38 and to pay restitution to the victims of the offense.
Mr. Berman praised the investigative work of the United States Postal Inspection Service and thanked the Securities and Exchange Commission for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Jared Lenow and Drew Skinner are in charge of the prosecution.
Fort Wayne Man Found Guilty After Three-Day TrialRead the Press Release
FORT WAYNE – Edwin Calligan, age 43, of Fort Wayne, Indiana was convicted of being a felon in possession of a firearm, importing a detectible amount of 5F-adb (synthetic cannabinoid) into the United States and attempted possession with intent to distribute 5F-adb., announced U.S. Attorney Kirsch.
U.S. District Court Judge Holly Brady presided over this three day jury trial.
According to documents presented in this case, in June of 2017, a federal search warrant was executed in Fort Wayne where several firearms were found in addition to ammunition. Calligan has a felony conviction for Attempted Murder and Criminal Reckleness which exclude him from legally possession a firearm or ammunition. Over the course of the investigation, several parcels were seized by Custom Border Protection, which contained the illegal substance, 5f-adb that been imported from China/Hong Kong.
Calligan’s sentencing will be set by separate order.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Department of Homeland Security Investigations, United States Custom and Border Protection, with the assistance of United States Postal Inspection Service, Allen County Drug Task Force, Allen County SWAT team, and the Indiana State Police. The case was prosecuted by Assistant United States Attorney Stacey R. Speith.
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Fort Hall Man Sentenced in Truck Driver AssaultRead the Press Release
POCATELLO - Stormy Ray Adakai, 24, of Fort Hall, Idaho, was sentenced in U.S. District Court to 57 months in federal prison for assault resulting in serious bodily injury, U.S. Attorney Bart M. Davis announced today. Chief U.S. District Judge David C. Nye also ordered that Adakai serve three years of supervised release following his prison sentence. Adakai pleaded guilty to the charge on October 23, 2019. Adakai served six months on the same charge in tribal jail, therefore the Court reduced the original 63-month sentence to give him credit for time served.
According to court records, in the early morning of September 2, 2018, the Fort Hall Police were notified of a truck driver who had been assaulted while inside his semi-truck parked near the TP Gas Station on Ross Fork Road, in the area of the Fort Hall Casino, on the Fort Hall Indian Reservation. The victim told police that, while he was asleep in his truck’s cab, an unknown male, later identified as Adakai, broke into the cab and assaulted him. Adakai demanded money and struck the victim repeatedly with rocks. The victim stated that during the assault he tried to scratch the assailant’s face. As a result of the assault, the victim was hospitalized overnight and suffered a broken nose, a broken orbital (eye) bone and a brain hemorrhage. The victim also had seizures as a result of the brain hemorrhage. The treating physician stated that the injuries created a substantial risk of death, extreme physical pain and a protracted and obvious disfigurement.
According to court records, video from a nearby camera showed an individual getting into the cab of the truck through the passenger-side door but the lighting and video quality were too poor to make an identification of the subject. A hat not belonging to the victim was later found in the truck. Fort Hall Police detectives and FBI agents later talked to a witness who said he knew that Adakai had committed the assault because he saw Adakai shortly after the assault occurred. Adakai was at a residence lying on the floor, breathing heavily as if he had been running, and had blood all over him and scratches on his face. He was also intoxicated. Adakai told the witness that he had beat up a trucker and had used rocks to assault the man.
Detectives and agents later interviewed Adakai at his residence. Adakai gave a full confession and admitted that he had assaulted the trucker. He said that he picked up rocks nearby and used those rocks to beat the trucker. He stated that he was intoxicated and wanted money from the victim. Adakai admitted that he was wearing the hat which was found inside the truck after the assault.
This case was investigated by Federal Bureau of Investigation and Fort Hall Police Department.
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Former Turtle Creek Resident Pleads Guilty to Narcotics TraffickingRead the Press Release
PITTSBURGH, PA -A former resident of Turtle Creek, Pennsylvania, pleaded guilty in federal court to a charge of narcotics trafficking, United States Attorney Scott W. Brady announced today.
Jerry Coker, 28, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute 40 grams or more of a mixture of fentanyl and heroin before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that on September 11, 2016, Coker’s sister and codefendant, Marleka Robinson, obtained a large quantity of fentanyl from a distributor in the Knoxville section of Pittsburgh at Coker’s request. Robinson returned the drugs to the residence she shared with Coker and their other sister, codefendant Monique Robinson. A search warrant executed at the Coker residence the following day resulted in the seizure of more than 285 grams of fentanyl and small quantities of heroin, cocaine, and marijuana. Drug packaging, weighing, and distributing materials were found strewn through the house, along with two Smith & Wesson pistols and $8,900 in cash, all of which was seized by law enforcement.
Judge Bissoon scheduled sentencing for May 18, 2020 at 2:15 p.m. The defendant will remain incarcerated pending the sentencing hearing. The law provides for a total sentence of not less than 10 years to life in prison, a fine of $8,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Coker has a prior conviction for a serious felony drug offense and, as such, he is subject to enhanced penalties.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Coker.
Former Insys Therapeutics Vice President of Sales Sentenced for Racketeering ConspiracyRead the Press Release
BOSTON – The former Vice President of Sales of Insys Therapeutics was sentenced today in federal court in Boston for his role in a nationwide conspiracy to bribe medical practitioners to unnecessarily prescribe a fentanyl-based pain medication and defraud healthcare insurers.
Alec Burlakoff, 46, of West Palm Beach, Fla., was sentenced by U.S. District Court Judge Allison D. Burroughs to 26 months in prison, three years of supervised release, and ordered to pay restitution and forfeiture to be determined at a later date. In November 2018, Burlakoff pleaded guilty to one count of racketeering conspiracy and agreed to cooperate with the government.
In May 2019, five top executives including the Founder of Insys, John Kapoor, were convicted by a federal jury of racketeering conspiracy.
From May 2012 to December 2015, Burlakoff and his co-conspirators used various methods to bribe medical practitioners, many of whom operated pain clinics, to prescribe Subsys to patients, often when medically unnecessary. Subsys, a drug owned and manufactured by Insys Therapeutics, Inc., is a powerful, fentanyl-based pain medication approved to treat cancer patients suffering intense breakthrough pain.
One method employed by Burlakoff and his co-conspirators was the Insys Speaker Program (ISP), which was used as a vehicle to bribe doctors and other clinicians to prescribe Subsys to their patients. Insys sales representatives targeted and promised medical professionals the opportunity to be paid as Insys speakers if they wrote prescriptions for Subsys. The more prescriptions written for Subsys – and the higher the dose – the more speaking opportunities were awarded and more money paid to the practitioners. In many instances, the programs were shams.
At trial, Burlakoff testified about the methods used at Insys to induce doctors and nurse practitioners to prescribe Subsys in exchange for bribe payments. Burlakoff also described Insys’ practice of targeting medical practices known for suspect prescribing standards, commonly referred to as “pill mills”:
“[P]ill mills for us meant dollar signs. That's what we saw, dollar signs. It was not run the other way. It was run to the pill mill.”
Burlakoff also testified about the internal tracking Insys conducted to measure the effectiveness of the bribe payments:
“‘Return on investment’ means a successful bribe, an increase in Subsys prescriptions based on the speaker money we have paid the doctor, the speaker.”
The defendants also conspired to mislead and defraud health insurance providers who were reluctant to approve payment for Subsys when it was prescribed for non-cancer patients. The defendants achieved this by setting up the “Insys Reimbursement Center,” (IRC) which was dedicated to fraudulently obtaining prior authorization for payment directly from insurers and pharmacy benefit managers.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Phillip Coyne, Special Agent in Charge of the U.S Department of Health and Human Services, Office of the Inspector General; Judy McMeekin, Pharm.D. Acting Associate Commissioner for Regulatory Affairs of the U.S. Food and Drug; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Leigh-Alistair Barzey, Special Agent in Charge of the Defense Criminal Investigative Service, Northeast Field Office; Carol S. Hamilton, Acting Regional Director of the U.S. Department of Labor, Employee Benefits Security Administration, Boston Regional Office; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division; Matthew Modafferi, Special Agent in Charge of the U.S. Postal Service Office of Inspector General, Northeast Area Field Office; Jeffrey K. Stachowiak, Acting Special Agent in Charge of the Department of Veterans Affairs, Office of Inspector General; and Thomas W. South, Deputy Assistant Inspector General for Investigations of the Office of Personnel Management made the announcement.
Assistant U.S. Attorneys K. Nathaniel Yeager, Fred M. Wyshak and David G. Lazarus prosecuted the case for Lelling’s Health Care Fraud Unit.
Fayetteville Man Sentenced to over 15 Years in Federal Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas – David Clay Fowlkes, Acting United States Attorney for the Western District of Arkansas; announced today that Richard Elmo Warren, age 41, was sentenced today to 188 months in federal prison followed by four years of supervised release on one count of Possession of Methamphetamine with Intent to Distribute. The Honorable Judge Timothy L. Brooks presided over the sentencing hearing today in the United States District Court in Fayetteville.
In April of 2019, officers with the Fourth Judicial District Drug Task Force observed Warren leaving a residence in Fayetteville, AR, which is within the Western District of Arkansas. Once Warren’s identity was confirmed, a traffic stop was initiated. Prior to making contact with the officers, Warren fled on foot and was ultimately apprehended and taken into custody. Search incident to Warren’s arrest, detectives located a large amount of a methamphetamine mixture that was divided into individual baggies.
The methamphetamine was subsequently sent to the DEA Southeast Laboratory in Miami, Florida and tested positive for 222 grams of methamphetamine.
Warren was indicted by a federal grand jury in May of 2019 and entered a guilty plea in August of 2019.
This case was investigated by the Arkansas Fourth (4th) Judicial District Drug Task Force. Assistant United States Attorney David Harris prosecuted the case for the Western District of Arkansas.
Fayetteville Man Sentenced to over 11 Years in Federal Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas – David Clay Fowlkes, Acting United States Attorney for the Western District of Arkansas, announced today that Adam Lee Facundo, age 26, was sentenced to 140 months in federal prison followed by five years of supervised release on one count of Distribution of More Than 50 grams of Actual Methamphetamine. The Honorable Judge Timothy L. Brooks presided over the sentencing hearings today in the United States District Court in Fayetteville.
In December of 2018, the Drug Enforcement Administration launched an investigation on Facundo for drug trafficking in the Western District of Arkansas. In February of 2019, detectives with the Drug Enforcement Administration conducted a controlled purchase of methamphetamine from Facundo.
The methamphetamine purchased was subsequently sent to the DEA laboratory in Miami and tested positive for 141 grams of pure methamphetamine.
Facundo was indicted by a federal grand jury in June of 2019 and entered a guilty plea in September of 2019.
This case was investigated by the Drug Enforcement Administration. Assistant United States Attorney David Harris prosecuted the case for the Western District of Arkansas.
Fayetteville Man Sentenced to More Than 16 Years for Heroin DistributionRead the Press Release
NEW BERN – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announces that United States District Judge Louise W. Flanagan sentenced JOHN ELWOOD TYRONE MARTIN, 48, of Fayetteville, NC, to 198 months imprisonment followed by 5 years of supervised release.
On March 29, 2019, MARTIN was named in a one-count Criminal Information charging him with conspiracy to distribute and possession with intent to distribute one kilogram or more of heroin. On May 3, 2019, MARTIN pled guilty to the charge.
On November 4, 2016, a task force officer (TFO) with the Federal Bureau of Investigation (FBI) in Fayetteville, North Carolina, was contacted by a confidential source (CS #1) regarding MARTIN. According to CS #1, MARTIN stated that he could supply the city of Fayetteville with heroin and boasted about selling kilograms of heroin for $75,000. MARTIN also provided CS #1 with 0.4 gram of heroin, which CS #1 turned over to investigators.
On May 31, 2018, at the direction of members of the Fayetteville Police Department (FPD) and FBI, a second confidential source (CS #2) arranged to purchase 200 grams of heroin from MARTIN. Shortly thereafter, MARTIN arrived at CS #2’s residence where detectives with the FPD’s Violent Criminal Apprehension Unit and Narcotics Unit were waiting in undercover surveillance vehicles.
As MARTIN pulled into the driveway of the residence, agents exited their vehicles and began to approach MARTIN’S vehicle. When MARTIN observed the approaching detectives, he placed his vehicle in drive and accelerated his vehicle in the direction of the detectives, causing them to move out of the path of the vehicle. MARTIN drove toward the rear of the residence, where his flight was halted due to trees and a fence surrounding the property.
When MARTIN’s vehicle came to a stop, MARTIN opened the driver’s side door and attempted to destroy a large quantity of heroin and fentanyl by tearing open several bags and shaking out the contents creating a cloud of the powder. As a result, several of the arresting detectives were exposed to the heroin and fentanyl and subsequently transported to Cape Fear Valley Hospital to be evaluated. MARTIN was taken into custody and transported to the FPD.
CS #2 informed law enforcement agents that he had once obtained more than 1 kilogram of heroin from MARTIN during the course of approximately six transactions.
Finally, law enforcement determined that while MARTIN was on release and pending sentencing in this case, he continued to distribute controlled substances in the Fayetteville, North Carolina area.
This prosecution is part of an extensive investigation by the United States Attorney’s Office’s Organized Crime Drug Enforcement Task Force (OCDETF) named Operation La Vida Loca. OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
That effort has been implemented through the United States Attorney’s Office’s Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement. For additional information about this initiative, click here https://www.justice.gov/usao-ednc/tbnc.
The Federal Bureau of Investigation and the Fayetteville Police Department investigated this case. Assistant United States Attorney Scott A. Lemmon prosecuted this case for 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.
Extradited Former Air Cargo Executive Pleads Guilty for Participating in a Worldwide Price-Fixing ConspiracyRead the Press Release
Maria Christina “Meta” Ullings, the former senior vice president of cargo sales and marketing for Martinair N.V. (Martinair Cargo) and a Dutch national, pleaded guilty for her role in a long-running air cargo price-fixing conspiracy, the Department of Justice announced.
Ullings’ extradition is the second extradition on an antitrust charge. A fugitive for almost 10 years, Ullings was apprehended by Italian authorities in July 2019 while visiting Sicily. Ullings initially contested extradition in the Italian courts, but after the Court of Appeals of Palermo ruled that she be extradited, she waived her appeal. She arrived in Atlanta on Jan. 10, 2020, and made her initial appearance on Jan. 13 in the U.S. District Court for the Northern District of Georgia. Ullings was sentenced to 14 months in prison with credit for the time she was held in the custody of the Italian government pending her extradition. She has also been sentenced to pay a $20,000 criminal fine.
“Today’s guilty plea demonstrates the Antitrust Division’s commitment to bringing those who violate the antitrust laws – wherever located – to justice,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “The Antitrust Division and its partners are committed to rooting out international price-fixing cartels that cheat American consumers and producers.”
“The ultimate loser in price fixing schemes is the American consumer,” said Special Agent in Charge Chris Hacker of the FBI’s Atlanta Field Office. “Individuals and companies that feel like they don’t need to follow the rules should understand the FBI and our federal law enforcement partners will pursue anyone who threatens our economy and our citizens. We are committed to exposing these cases of corruption in the United States and around the world.”
Ullings pleaded guilty to conspiring with others to suppress and eliminate competition by fixing and coordinating certain surcharges, including fuel surcharges, charged to customers located in the United States and elsewhere for air cargo shipments. These air cargo shipments included heavy equipment, perishable commodities, and consumer goods destined for American consumers and shipped by American producers. Ullings participated in the conspiracy from at least as early as January 2001 until at least February 2006.
Including Ullings, a total of 22 airlines and 21 executives have been charged in the Justice Department’s investigation into price fixing in the air transportation industry. To date, more than $1.8 billion in criminal fines have been imposed and eight executives have been sentenced to serve prison time.
The investigation into the air transportation industry has been conducted by the Antitrust Division, the FBI, the Department of Transportation’s Office of the Inspector General, and the U.S. Postal Service’s Office of the Inspector General. Assistance with the extradition was provided by the Department of Justice Criminal Division’s Office of International Affairs and the U.S. Marshals Service. Anyone with information concerning price fixing or other anticompetitive conduct is urged to call the Antitrust Division’s Washington Criminal I Section at 202-307-6694 or visit www.justice.gov/atr/contact/newcase.html.
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.
Elkins business owner sentenced for tax fraudRead the Press Release
ELKINS, WEST VIRGINIA – Rocky A. Tingler, of Elkins, West Virginia, was sentenced today to six months incarceration for tax fraud, U.S. Attorney Bill Powell announced.
Tingler, age 54, owner of McWilliams Building & Construction in Elkins, pled guilty to one count of “False Statement on Personal Tax Return” and one count of “Failure to Pay Over Employment Taxes” in July 2019. Tingler admitted to understating the gross receipts or sales on his 2015 individual tax return by more than $988,000. He also admitted to collecting $790 in federal income tax from his employees at the construction business when the amount should have been $25,706 during the third quarter of 2014.
As a part of the plea agreement, Tingler stipulated to between $250,000-$550,000 in criminal tax loss. Tingler agreed to repay his tax liability to the IRS.
Assistant U.S. Attorney Andrew R. Cogar prosecuted the case on behalf of the government. The Internal Revenue Service Criminal Investigation investigated.
U.S. District Judge Thomas S. Kleeh presided.
DynCorp Pays $1.5M to Resolve Kickback AllegationsRead the Press Release
ALEXANDRIA, Va. – DynCorp International, LLC (DynCorp), located in McLean, has agreed to pay $1.5 million to settle civil fraud allegations involving two former DynCorp officials, Wesley Aaron Struble and Jose Rivera, who solicited and accepted kickbacks from an Iraqi subcontractor in connection with DynCorp’s lease of property for its operations in Baghdad, Iraq on behalf of the U.S. Department of State.
Struble and Rivera previously pleaded guilty in the Eastern District of Virginia to violating the Anti-Kickback Act for their role in soliciting and accepting at least $390,000 in cash kickbacks from the Al-Qarat Company in exchange for influencing DynCorp’s lease of property in Baghdad at a lease amount higher than the previous lease. The lease costs were included with services for international civilian policing that DynCorp billed under a U.S. Department of State contract in 2011 and 2012.
The settlement resolves the alleged liability of DynCorp for violation of civil penalties under the Anti-Kickback Act and the civil False Claims Act arising out of Struble’s and Rivera’s fraudulent conduct while employed by DynCorp.
The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney's Office for the Eastern District of Virginia, the Department of State Office of Inspector General, and the Federal Bureau of Investigation.
The matter was investigated by Assistant U.S. Attorney Christine Roushdy. The civil claims settled by this False Claims Act agreement are allegations only; there has been no determination of civil liability.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Dominican National Pleads Guilty to Identity Theft and Stealing MassHealth BenefitsRead the Press Release
BOSTON – A Dominican national formerly residing in Lawrence pleaded guilty on Tuesday, Jan. 21, 2020, in federal court in Boston to Social Security and benefit fraud.
Cesar Franco Lara, 37, pleaded guilty to one count of false representation of Social Security number and one count of theft of government money. Pursuant to the plea agreement, Franco Lara will receive a sentence of 20 months in prison. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for May 13, 2020.
On Aug. 5, 2016, Franco Lara applied for a Massachusetts identification card using the name, date of birth and Social Security number of a United States citizen born in Puerto Rico. On Aug. 18, 2016, he used that Massachusetts identification card to apply for and receive nearly $3,500 of MassHealth benefits in the U.S. citizen’s name. In an effort to determine the true identity of the defendant, law enforcement found a non-immigrant visitor visa application bearing the defendant’s photograph and fingerprints. This application was refused by the Department of State in 2015. When arrested on federal charges, Franco Lara had on him a MassHealth ID card in the U.S. citizen’s name. His fingerprints were found to be a match of the fingerprints on file from the refused visa application.
The charges of false representation of a Social Security number provides for a sentence of up to five years in prison, three years of supervised release, a fine of $250,000, restitution and forfeiture. The charge of theft of government funds provides for a sentence of up to 10 years in prison, three years supervised release, a fine of $250,000, restitution and forfeiture. Franco Lara will be subject to deportation proceedings upon completion of his sentence. 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; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Phillip Coyne, Special Agent in Charge of Department of Health and Human Services, Office of Inspector General, Office of Investigations, Boston Field Division made the announcement today. Vital assistance was provided by the U.S. Marshals Service’s Fugitive Task Force. Assistant U.S. Attorneys Lindsey E. Weinstein and David G. Tobin of Lelling’s Major Crimes Unit are prosecuting the case.
Convicted Felon in Possession of a Firearm in School Zone Sentenced to 10 Years in Federal PrisonRead the Press Release
Memphis, TN – Herbert Graham, 32, has been sentenced to 120 months in federal prison for being a convicted felon in possession of a firearm. U.S. Attorney D. Michael Dunavant announced the sentence today.
According to information presented in court, on January 30, 2018, Memphis Police Officers responded to a burglary/aggravated assault call on Kimbark Woods Drive. The residents advised they observed a family friend, Herbert Graham, steal a laptop from their back bedroom and escape through the window. The victims searched the neighborhood until they located Graham walking toward Raleigh Lagrange. They demanded Graham return the laptop; instead Graham pulled a firearm out of his pants, pointed the weapon and threatened to kill them. The victims left and notified law enforcement.
As officers made the scene, they observed Graham walking on Chiswood Street with the laptop in hand. Graham saw the officers, dropped the laptop and fled from police onto the school property of Memphis Rise Academy. Officers gave chase and observed Graham toss a magazine and a gun on the ground. A faculty member observed the firearm on school grounds and an immediate lock down of the school was put in place to ensure the safety of the students. Minutes later, Graham was apprehended on the school campus. The firearm and magazine were recovered near the gymnasium and music room.
The magazine was loaded with 15 live rounds and the gun held one live round in the chamber. The gun, a Smith and Wesson 9mm pistol was reported stolen in 2016, out of Shelby County. Graham has prior convictions for aggravated burglary and aggravated assault, as well as a prior conviction for being a convicted felon in possession of a handgun.
On January 22, 2020, U.S. District Court Judge Sheryl H. Lipman sentenced Graham to 120 months in federal prison followed by 3 years supervised release.
U.S. Attorney D. Michael Dunavant said, "Convicted felons who possess firearms are an inherent danger and threat to the community. Under our PSN initiative, we focus on removing firearms from the hands of prohibited persons, and removing dangerous felons from our streets. Clearly, this felon had no hesitation in committing a violent crime with a firearm and further endangering school faculty and students. He will now be rightly punished and incapacitated for 10 years for his recidivist threatening behavior with a gun.
This case was investigated by the Project Safe Neighborhoods (PSN) Task Force, which includes the U.S. Attorney’s Office; the Shelby County District Attorney’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); the Memphis Police Department; and the Shelby County Sheriff’s Office, who have all joined together to address gun-related crimes through targeted investigations and aggressive prosecution.
Assistant U.S. Attorneys Raney Irwin and Marques Young prosecuted this case on behalf of the government.
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Convicted Felon Sentenced to Federal Prison After Attempting to Sell A Firearm to A Licensed Gun DealerRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew has sentenced Zane C. Brassfield (25, Tampa) to two years and four months in federal prison for being a felon in possession of a firearm.
Brassfield had pleaded guilty on October 22, 2019.
According to court documents, Brassfield brought a .50 caliber rifle to a gun store and attempted to sell the firearm to the licensed dealer. However, store employees declined to purchase the firearm from him. Upon leaving the store, Brassfield left the rifle by a trash can outside, where it was recovered. As a previous convicted felon, Brassfield is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Hillsborough County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Callan Albritton.
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.
Columbus Man Sentenced to 5 Years for Conspiring to Distribute MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced Danielle W. Henke, age 47, was sentenced today in federal court in Omaha, Nebraska, for Conspiracy to Possess and Distribute Methamphetamine. United States District Court Judge Robert F. Rossiter, Jr. sentenced Henke to 60 months’ imprisonment. Henke also relinquished any right or claim he had to the money seized during the investigation. After completing his term of imprisonment, Henke will be required to complete a four-year term of supervised release.
In October of 2016, a cooperating witness working with law enforcement obtained quantities of methamphetamine from Henke inside of his Columbus residence. As a result, a search warrant was executed on Henke’s residence on October 13, 2016. Officers discovered more than 50 grams of actual methamphetamine, evidence of drug dealing, and more than $3,000 in U.S. currency.
This case was investigated by the Columbus Police Department.
Chicago-Area Resident Indicted for Scheme to File False Claims for Tax RefundsRead the Press Release
A Chicago-area resident was arrested today on a federal grand jury indictment charging him with mail fraud, submitting false claims to the United States for tax refunds, and aggravated identity theft, announced Principle Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division. The Jan. 16, 2020, indictment was unsealed following today’s arrest.
According to the indictment, Wilmer Alexander Garcia Meza allegedly used personal identifying information of third parties—including their names, dates of birth, and identification documents such as foreign passports—to fraudulently obtain Individual Taxpayer Identification Numbers (ITINs) from the Internal Revenue Service (IRS). An ITIN is a tax processing number issued by the IRS to individuals who do not have, and are not eligible to obtain, a social security number. The indictment further alleges that from 2013 through 2017, Garcia used these ITINs to file fraudulent tax returns in the names of the third parties to claim thousands in fraudulent refunds. Garcia also allegedly used the identification documents to cash the fraudulently obtained refund checks.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Garcia faces a maximum sentence of 20 years in prison for each mail fraud count, five years in prison for each false claim count, and a mandatory minimum sentence of two years in prison for aggravated identity theft. He also faces a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS-Criminal Investigation, Homeland Security Investigations, and the U.S. Postal Inspection Service, who are investigating the case, and Trial Attorneys Thomas Flynn and Michael Landman of the Tax Division, who are prosecuting this case.
California meth trafficker sentenced to prisonRead the Press Release
MISSOULA—A California man who admitted that two pounds of meth found during a traffic stop were his was sentenced today to 10 years in prison and five years of supervised release, U.S. Attorney Kurt Alme said.
Tony Gregory Amador Ortiz, 25, of Rancho Cordova, CA, pleaded guilty in October to possession with intent to distribute meth.
Chief U.S. District Judge Dana L. Christensen presided.
The prosecution said in court records that an undercover surveillance operation by Missoula drug task force officers on July 15, 2019 led to a traffic stop of a vehicle in which Ortiz was a passenger. In a search of the vehicle, officers found two pounds of meth. Ortiz admitted the meth belonged to him. Two pounds of meth is the equivalent of about 7,248 doses.
Assistant U.S. Attorney Tara Elliott prosecuted the case, which was investigated by the Missoula High Intensity Drug Trafficking Area Task Force.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 36% from 2013 to 2018. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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California Resident Convicted of Multiple Charges Related to Possession and Distribution of Controlled Substances in One of the Largest Drug Busts Ever for WyomingRead the Press Release
United States Attorney for the District of Wyoming, Mark A. Klaassen, announced today that Rio Linda, California resident Arnold Devonne Butler, 53, has been convicted of possession with intent to distribute controlled substances, including methamphetamine, heroin, cocaine, and fentanyl; and conspiracy to distribute those substances. Butler was found guilty after a five-day jury trial in the United States District Court in Casper. Butler will be sentenced at a later date by Chief Federal District Court Judge Scott W. Skavdahl. Butler faces a minimum sentence of 15 years.
This case involved a commercial vehicle inspection that resulted in the discovery of nearly 60 pounds of narcotics, including 46 pounds of methamphetamine, two and half kilograms of cocaine, three kilograms of heroin, and a kilogram of the synthetic opioid fentanyl. On May 14th, 2019 at approximately 10:03 a.m., a Wyoming Highway Patrol Trooper was patrolling eastbound on Interstate 80 near mile marker 373, in Laramie County, Wyoming. He came upon a rollback tow truck traveling eastbound and towing a gray 2017 Ford Fusion 4 door sedan. During questioning, the Trooper became suspicious of Butler’s activities and explanation of his travel. A drug detection dog was called and alerted on the rear passenger compartment of the towed vehicle. The ensuing search revealed the narcotics load in a manufactured compartment between the rear passenger seat and trunk area.
“Unfortunately our highways are being used by drug traffickers to bring addictive substances from smuggling gateways in places like California to distribute them across the nation, in some cases using commercial vehicles to disguise their illegal cargo,” said United States Attorney Mark Klaassen. “We must continue our efforts at all levels of law enforcement to disrupt this flow and protect our communities.”
This case results from a multi-agency investigation conducted by the Wyoming Division of Criminal Investigation, Wyoming Highway Patrol, and the U.S. Drug Enforcement Administration, and was prosecuted by United States Attorney Mark A. Klaassen and Assistant United States Attorney Stephanie I. Sprecher.
California Man Sentenced for Fraud SchemeRead the Press Release
United States Attorney Joe Kelly announced that Sean Andrew O’Neal, 58, of Rancho Palos Verdes, California, was sentenced today in Omaha, Nebraska, to 54 months in prison by Chief United States District Judge John M. Gerrard for wire fraud. There is no parole in the federal system. O’Neal was also ordered to pay $477,324.27 in restitution to his victims. After his prison sentence, O’Neal will serve a three-year of supervised release.
Beginning in August, 2012 and continuing through March, 2014, O’Neal devised a scheme to defraud and obtain money from his victims, one from the Kearney, Nebraska, area and the other from Canada. O’Neal was a co-owner and employee of Investment Properties Mexico (IPM) located in Playa del Carmen, Quintana Roo, Mexico. The company was a real estate investment firm in the business of selling land and condominiums located in Mexico. IPM marketed the company through the Internet to solicit private individuals seeking to purchase real estate in Mexico. During those years, O’Neal befriended and groomed the victims into investing in his scheme when he was fully aware of the devastating financial impact the loss would have on his victims. O’Neal then took the money provided by his victims and used the funds for his own personal gain. All the while, O’Neal continued to assure his victims that the properties in Mexico had been purchased.
This case was investigated by the Federal Bureau of Investigation.
Boone County Man Sentenced to 240 Months for Possession with Intent to Distribute Crystal MethamphetamineRead the Press Release
COVINGTON, Ky.- A Petersburg, Kentucky man, Craig Jeremy Harp, who was previously convicted of possession of crystal methamphetamine with the intent to distribute it, was sentenced to 240 months in federal prison Thursday, by U.S. District Judge David L. Bunning.
According to court documents, on November 30, 2018, Harp was a driving a car in Covington, when officers stopped him for a traffic violation. Officers found crystal methamphetamine and digital scale on his person, and also recovered seven bindles of crystal methamphetamine from the vehicle. The total amount of methamphetamine was approximately 27 grams.
Harp was indicted on the charge in June 2019. Harp has prior felony convictions for trafficking in a controlled substance.
Under federal law, Harp must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for eight years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Keith Martin, Special Agent in Charge, DEA Detroit Field Division, jointly announced the sentence.
The investigation was conducted by the DEA. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Tony Bracke.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Belgian National Holding Illinois Attorney’s License Indicted for Money LaunderingRead the Press Release
BOSTON – A Belgian national holding an Illinois law license has been indicted on money laundering charges involving funds obtained from three Massachusetts victims.
Hassan A. Abbas, 52, of Belgium, was indicted on one count of money laundering and two counts of unlawful monetary transactions. Following an initial appearance in federal court in Boston yesterday, Abbas was detained pending a detention hearing set for Jan. 24, 2020.
According to the charging documents, between July 2017 and December 2018, Abbas created sham corporate entities and opened bank accounts in the name of those entities. Those bank accounts were used to receive fraudulently obtained funds from a number of victims. Two Massachusetts victims were victimized through a business email compromise (BEC) scam in which the victims were tricked into wiring money to an individual they thought was their real estate broker. A BEC scheme is a sophisticated scam often targeting individuals and businesses involved in wire transfer payments. The fraud is carried out by compromising and/or “spoofing” legitimate business email accounts through social engineering or computer intrusion techniques, to cause victims to transfer funds to accounts controlled by the scammers. The third Massachusetts victim was allegedly the victim of a romance scam, in which perpetrators create fictitious online personas to develop online romantic relationships with individuals in the U.S., and then leverage those relationships to obtain money and/or property.
Once the fraudulently obtained funds reached the accounts controlled by Abbas, Abbas initiated wire transfers to accounts overseas, and transferred other sums of the fraudulently obtained money to his own personal accounts, which he then spent.
The charge of money laundering provides for a sentence of up to 20 years in prison, three years of supervised release, and a fine of $500,000, or twice the value of the criminally derived property. The charge of unlawful monetary transaction provides for a sentence of up to 10 years in prison, three years of supervised release, and a fine of $250,000, or twice the value of the criminally derived property. 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 and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Valuable assistance was provided by the Essex County District Attorney’s Office. Assistant U.S. Attorneys Philip A. Mallard and Mackenzie A. Queenin of Lelling’s Criminal Division are prosecuting the case.
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.
Baltimore County Felon Pleads Guilty to Federal Drug Distribution Charges and to Illegal Possession of FirearmsRead the Press Release
Baltimore, Maryland – Deandre Laquan Jones, a/k/a “Cuz,” age 27, of Towson, Maryland, pleaded guilty today to possession with intent to distribute controlled substances, possession with intent to distribute drugs near a school, and to being a felon in possession of firearms.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge John Eisert of Homeland Security Investigations (HSI) Baltimore; and Chief Melissa R. Hyatt of the Baltimore County Police Department (BCPD).
United States Attorney Robert K. Hur stated, “Fentanyl and firearms are a deadly combination, and they are particularly unacceptable near our elementary schools. We are committed to working with our law enforcement partners to get guns out of the hands of convicted felons and off of our streets, in order to reduce violent crime in our neighborhoods. Deandre Jones was a convicted felon who chose to sell drugs and possess guns. He now likely faces 12 years in federal prison, where there is no parole—ever. Please, put down the guns and save a life—maybe even your own.”
According to his guilty plea, from December 2018 to February 2019, Jones distributed fentanyl, heroin, and cocaine. On January 31 and again on February 11, 2019, Jones sold an undercover Baltimore County Police officer two “packs” of heroin—each containing 25 gel capsules—for $375.
On February 22, 2019, law enforcement executed a search warrant at an apartment in Parkville, Maryland, which was rented by Tyrell Curry, Jones’ co-conspirator, and was within 1,000 feet of a Baltimore County elementary school. Jones used the apartment to distribute fentanyl, heroin, crack cocaine, and powder cocaine. From the apartment, law enforcement recovered two baggies containing a total of approximately 345 grams of fentanyl, cutting agents, digital scales, two kilogram presses, and bags of packaging materials. In addition, officers found documents and an identification card belonging to Jones, and two empty .40-caliber extended magazines, from which the BCPD Forensic Services Section recovered a latent print of Jones’ left thumb. In the living room, officers located a coffee table that had been custom-manufactured to contain a hidden compartment secured by a wireless lock. Investigators later learned that the table had been purchased by, and shipped to, Deandre Jones at the Parkville apartment. When the hidden compartment in the table was opened, law enforcement recovered plastic bags containing 16 grams of fentanyl, 175 grams of heroin, 185 grams of crack cocaine, and 173 grams of powder cocaine, as well as a .410-caliber handgun and 19 rounds of .410-caliber ammunition.
That same day, BCPD officers executed a search warrant at Jones’ residence and recovered three iPhones in the bedroom, and an AK-47 loaded with 30 rounds of ammunition in Jones’ nightstand. The firearm had been reported stolen in October 2018. In his office, officers found a money counter, $13,700 in cash, a one-kilogram block of fentanyl, a loaded 9mm pistol, which had been reported stolen in April 2017, a book bag that contained eight plastic bags containing a total of 1.9 kilograms of cocaine, and five additional bags containing 138 grams of heroin. A search of Jones’ vehicles recovered two additional loaded firearms and a fourth iPhone.
A subsequent forensic examination of Jones’ iPhones recovered message between Jones and Curry relating to drug trafficking, including discussions about the Parkville apartment, potential customers, sources of supply, possible police surveillance, and ammunition.
As part of his plea agreement, Jones has agreed to forfeit assets obtained as a result of, or used to facilitate Jones’ drug trafficking, including: $13,708 in cash; a 2013 Lexus GS 350; an AK-47 and 30 7.62x39mm cartridges; a double-action revolver and 19 .410-caliber cartridges; two 9mm pistols and 26 9mm cartridges; and a .40-caliber pistol and 13 .40-caliber cartridges.
Jones and the government have agreed that, if the Court accepts the plea agreement, Jones will be sentenced to 12 years in federal prison. U.S. District Judge George L. Russell, III has scheduled sentencing for April 30, 2020 at 9:30 a.m.
Co-defendant Tyrell Daronte Curry, a/k/a “Mike,” age 28, of Baltimore previously pleaded guilty and is awaiting sentencing.
United States Attorney Robert K. Hur commended HSI Baltimore and the Baltimore County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Jeffrey J. Izant and Christopher J. Romano, who are prosecuting the case.
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Anchorage Man Indicted for Using Craigslist to Set up Armed RobberiesRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that an Anchorage man has been indicted for allegedly using Craigslist, Inc.’s internet marketplace to lure sellers to a meeting location and rob them at gunpoint.
Cloyd Lacap, Jr., 21, was named in the federal indictment charging him with interference with commerce by robbery, and possession of a firearm in furtherance of a crime of violence. Lacap is currently in federal custody, and is awaiting his first court appearance on the charges.
The indictment alleges that on Aug. 24, 2019, after identifying an iPhone for sale on Craigslist, Lacap arranged to meet with the seller at the Rustic Goat Restaurant on Turnagain Street in Anchorage. Upon meeting, Lacap robbed the seller of the iPhone at gunpoint. The indictment also alleges that earlier on the same day, after identifying another item for sale on Craigslist, this time a PlayStation gaming console, Lacap arranged to meet the PlayStation’s seller at Balto Seppala Park on Wisconsin Street in Anchorage. Upon meeting, Lacap also conducted an armed robbery on the seller.
If convicted, Lacap faces a maximum of 20 years in federal prison for the robbery offenses, and a mandatory minimum of seven years for the firearm offense. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Anchorage Police Department (APD) conducted the investigation leading to the charges in this case. This case is being prosecuted by Assistant U.S. Attorney Allison O’Leary for the U.S. Attorney’s Office, District of Alaska.
The charges in the indictment are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Albuquerque Career Criminal Sentenced to Life Imprisonment for Heroin Distribution Resulting in Death of Cameron WeissRead the Press Release
ALBUQUERQUE, N.M. – U.S. District Judge Judith C. Herrera sentenced Raymond Moya, 36, of Albuquerque, N.M., to life imprisonment in federal court today for his conviction on two heroin trafficking offenses, including a distribution of heroin on Aug. 12, 2011, that resulted in the death of Cameron Weiss, an 18-year-old La Cueva High School student, on Aug. 13, 2011. A federal jury convicted Moya on May 13, 2019, following a six-day trial.
During this morning’s sentencing hearing, Judge Herrera sentenced Moya to 30 years of imprisonment on the heroin distribution not resulting in death charge, with the sentence to run consecutive to a 72-month sentence previously imposed in another federal drug trafficking case in 2014. The Judge also sentenced Moya to life imprisonment on the heroin distribution resulting in the death charge.
“The life sentence imposed in this case is a just result for a career criminal who committed the most serious kind of drug offense, distributing heroin resulting in the death of a victim,” said U.S. Attorney John C. Anderson. “While no punishment can return Cameron Weiss to his family and friends, we hope this sentence provides his loved ones with some measure of healing.”
“This case is a sad reminder that drugs kill, and Raymond Moya’s sentencing sends a strong message that dealers will be held responsible for the death and despair that they cause, “ said DEA Special Agent in Charge Kyle W. Williamson. “DEA remains committed to working with our law enforcement partners to make our communities safer by bringing to justice those who deal drugs with a disregard for human life.”
“The U.S. Marshals Service is proud to have been a part of this investigation, particularly in support of the victims,” said U.S. Marshal Sonya K. Chavez. “We are committed to continuing to work diligently for safer communities and justice in our state.”
“We appreciate the persistence of the Drug Enforcement Administration and the U.S. Attorney’s Office to ensure justice for the family of Cameron Weiss,” said APD Chief Mike Geier. “Addiction is at the heart of so many problems in our community. We have to target the predators who have no regard for the lives they are ruining.”
During Moya’s trial, numerous witnesses testified about final week of the life of Cameron Weiss, who died of a heroin overdose on the morning of Aug. 13, 2011. The jury learned that Mr. Weiss had been addicted to heroin for two years, after getting hooked on opiate painkillers to treat serious sports injuries sustained as a student athlete at La Cueva High School in Albuquerque.
Mr. Weiss had spent time in rehab, but had relapsed and ended up in jail in Aug. 2011. While in jail, Mr. Weiss learned that Moya was a source of heroin supply who could be contacted through go-betweens. After he was released from jail on Aug. 7, 2011, Mr. Weiss contacted a go-between, who purchased heroin from Moya and delivered it to Mr. Weiss. The following day, Mr. Weiss joined his family in California where they were vacationing; the family returned to Albuquerque on Aug. 11, 2011. The next day, Aug. 12, 2011, Mr. Weiss met with another go-between, who purchased more heroin from Moya, including heroin which Mr. Weiss ingested over the course of the evening and into the night. At the end of the night, a friend dropped Mr. Weiss off at home. Mr. Weiss went into his bedroom and went to sleep; he never woke up. A pathologist determined that Mr. Weiss died as the result of a heroin overdose.
Moya faced a mandatory sentence of life imprisonment on the heroin distribution resulting in death charge based on his status as a career criminal. Moya’s prior criminal history included prior felony drug convictions for possession of a controlled substance, trafficking a controlled substance, and possession of marijuana with intent to distribute.
The Albuquerque office of the DEA investigated this case with assistance from the U.S. Marshals Service and the Albuquerque Police Department. Assistant U.S. Attorneys Sean J. Sullivan, Paul Mysliwiec, and Nicholas Jon Ganjei prosecuted the case as part of the Department of Justice’s commitment in partnership with other law enforcement to combat the illegal manufacturing and distribution of methamphetamine, heroin and prescription opioids and to establish new programs to provide services to victims of the opioid crisis.
Activity in the United States Attorney's OfficeRead the Press Release
Federal District Court Judge Nancy D. Freudenthal sentenced BRANDON F. ALLEN, 31, of The Bronx, New York on January 9, 2020 for bank fraud and conspiracy to commit bank fraud. Allen was arrested in Casper, Wyoming. He received eighteen months of imprisonment, to be followed by sixty months of supervised release, and ordered to pay a $200.00 special assessment with restitution to be determined within ninety days. The FBI investigated this case.
Federal District Court Judge Nancy D. Freudenthal sentenced RICHARD DEAN REAVIS, 48, of Newton, North Carolina on January 21, 2020 for being a felon in possession of a firearm. Reavis was arrested in Pinedale, Wyoming. He received fifty-seven months of imprisonment, to be followed by twenty-four months of supervised release, and ordered to pay a $500.00 fine and a $100.00 special assessment. The Sublette County Sheriff’s Office and the Bureau of Alcohol. Tobacco, Firearms, and Explosives investigated this case.
Federal District Court Judge Nancy D. Freudenthal sentenced MARDOQUEO RUIZ-CHAVEZ, 28, of El Salvador on January 21, 2020 for illegal re-entry of a previously deported alien into the United States. Ruiz-Chavez was arrested in Gillette, Wyoming. He received time served plus ten days to allow for deportation proceedings and was ordered to pay a $100.00 special assessment. He was previously deported from the United States to El Salvador in September of 2019. The U.S. Department of Homeland Security investigated this case.
Chief Federal District Court Judge Scott W. Skavdahl sentenced BENJAMIN ROBERT DMITRY DELANY, 24, of Cheyenne, Wyoming on January 23, 2020 for assault with a dangerous weapon on a federal employee. Delany was arrested in Cheyenne, Wyoming. He received forty-two months of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay a $100.00 special assessment. The Department of Veterans Affairs Police investigated this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
200+ Years Imprisonment for 22 Defendants Guilty in Moultrie Drug Conspiracy CaseRead the Press Release
ALBANY, Ga. – 22 of 23 defendants charged with various federal drug crimes linked to a large narcotics and methamphetamine ring operating out of a Southwest Georgia community have been sentenced to prison for their crimes, announced Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. U.S. District Judge Leslie Gardner handed down sentences for 22 defendants concluding on Wednesday, January 22, 2020 at the federal courthouse in Albany. The remaining defendant awaiting sentencing, Alejandro Bustamante, will be sentenced at a later date after pleading guilty to one count of conspiracy to possess with intent to distribute methamphetamine and one count of criminal contempt of court.
On January 22, 2020:
Gabino Tobias, 45, of Fairburn, Georgia was sentenced to 120 months in prison after pleading guilty to one count of conspiracy to possess with intent to distribute methamphetamine;
Maria Del Carmen Salazar Mirales, 46, of Fairburn, was sentenced to 120 months in prison after pleading guilty to one count of conspiracy to possess with intent to distribute methamphetamine;
Gricelda Bustamante-Gutierrez, 37, of Norman Park, Georgia was sentenced to 180 months in prison after pleading guilty to one count of conspiracy to possess with intent to distribute methamphetamine;
Ricardo Gutierrez, 32, of Norman Park, was sentenced to 292 months in prison after pleading guilty to one count of conspiracy to possess with intent to distribute methamphetamine.
On January 16, 2020:
Kristen Dismuke, 31, of Moultrie, was sentenced to 42 months in prison after pleading guilty to one count of conspiracy to possess with intent to distribute methamphetamine;
Trabian Jones, 43, of Moultrie, was sentenced to 12 months in prison after pleading guilty to one count of conspiracy to possess with intent to distribute marijuana;
Eric Townsend, 31, of Moultrie, was sentenced to 120 months in prison after pleading guilty to one count of conspiracy to possess with intent to distribute methamphetamine;
Torranza McNeal, aka “Cheese,” aka “Meke,” was sentenced to 96 months in prison after pleading guilty to one count of conspiracy to possess with intent to distribute cocaine base.
On January 15, 2020:
Brenton Miller, 32, of Moultrie, was sentenced to 180 months in prison after pleading guilty to one count of distribution of methamphetamine;
Regina Miller, 36, of Moultrie, was sentenced to 84 months in prison after pleading guilty to one count of distribution of methamphetamine;
Ramon White, 37, of Moultrie, was sentenced to 36 months in prison after pleading guilty to one count of conspiracy to possess with intent to distribute cocaine;
James Fielder, 35, of Moultrie, was sentenced to 120 months in prison after pleading guilty to one count of distribution of methamphetamine.
On January 14, 2020:
Josh Whaley, 38, of Tallahassee, Florida, was sentenced to 54 months in prison after pleading guilty to one count of conspiracy to possess with intent to distribute methamphetamine;
Tony Stamper, aka “Buggie,” 31, of Moultrie, was sentenced to 60 months in prison after pleading guilty to one count of conspiracy to possess with intent to cocaine and marijuana;
Bryant Pittman, aka “John Gotti,” 36, of Moultrie, was sentenced to 200 months in prison after pleading guilty to one count of conspiracy to possess with intent to distribute methamphetamine.
On January 13, 2020:
David Spradley, aka “ManMan,” 37, of Moultrie, was sentenced to 218 months in prison after pleading guilty to conspiracy with intent to distribute methamphetamine;
Johntavious Johnson, aka “Mikey,” 33, of Moultrie, was sentenced to 96 months in prison after pleading guilty to one county conspiracy with intent to distribute methamphetamine;
Jarvis West, 32, of Moultrie, was each sentenced to 96 months in prison after pleading guilty to one county conspiracy with intent to distribute methamphetamine;
Ricardo Bodiford, aka “Rico,” 34, of Moultrie, was sentenced on January 13, 2020 to 260 months in prison after pleading guilty to one count of conspiracy to possess with intent to distribute methamphetamine.
In earlier proceedings:
Stacy McLellan, 50, of Norman Park, was sentenced on May 13, 2019 to 160 months in prison after pleading guilty to one count of conspiracy to possess with intent to distribute methamphetamine;
Eric Lamar, 37, of Moultrie, was sentenced on October 16, 2019 to 24 months in prison after pleading guilty to one count of conspiracy to possess with intent to distribute cocaine and marijuana;
Brad Tuff, 39, of Moultrie, was sentenced on March 13, 2019 to 21 months in prison after pleading guilty to one count of conspiracy to possess with intent to distribute marijuana.
Investigators began a court-authorized wiretap on Bodiford’s cell phones on April 9, 2018. The wiretap investigation continued until law enforcement agents executed search warrants on several locations across Moultrie, Georgia from May 7-8, 2019, locating large amounts of illicit drugs, including two pounds of methamphetamine, one kilogram of cocaine, 13 pounds of marijuana, loaded firearms and cash, among other amounts of illegal drugs and drug paraphernalia.
“I cannot overstate the good work of the GBI partnering with other dedicated federal and local law enforcement agencies involved in this investigation for their work shutting down a dangerous methamphetamine ring. Their effort directly resulted in large amounts of harmful narcotics taken off our streets, saving countless lives and making our communities safer,” said Charlie Peeler, the U.S. Attorney. “Dealers be warned: Criminals caught violating federal drug laws will be prosecuted, and the penalties are steep.”
The case was investigated by the Georgia Bureau of Investigation, the Drug Enforcement Administration, the Colquitt County Sheriff’s Office, the Moultrie Police Department and the Leon County Florida Sheriff’s Office. Assistant U.S. Attorney Leah E. McEwen is prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
"Operation Benchwarmers" Nets Nearly $1 Million in Illegal Narcotics, 16 Defendants in Custody, One Remails At-LargeRead the Press Release
ATHENS, Ga. — More than 300 law enforcement members from 23 agencies and task forces participated in “Operation Benchwarmers,” a coordinated take-down capturing 16 of 17 defendants wanted on federal gun and drug charges, announced Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. The operation, believed to be the largest law enforcement operation in the history of the Athens-Clarke County Police Department, took place on Tuesday, January 21, 2020 in the Athens-Clarke County, Georgia region, netting an estimated street value of $955,986 in illegal narcotics, including heroin and methamphetamine, along with 43 firearms and assault rifles, plus $84,013 in cash. One defendant remains at-large, Andrew Bravo Jimenez, aka “Droopy,” 25, of Athens and Texas. In addition, six individuals were taken into custody on state charges (see below). The investigation was conducted by the FBI Middle Georgia Safe Streets Gang Task Force, the Northeast Georgia Regional Drug Task Force, the Athens-Clarke County Police Department (ACCPD), the Drug Enforcement Administration (DEA) and the United States Attorney’s Office for the Middle District of Georgia, with the assistance of the following agencies:
- Athens-Clarke Fire Department
- Banks County Sheriff’s Office
- Clarke County Sheriff’s Office
- DeKalb County Police Department
- FBI
- Georgia Bureau of Investigation
- Georgia Department of Community Supervision
- Georgia Department of Corrections
- Georgia State Patrol
- Greene County Sheriff’s Office
- Gwinnett County Police Department
- Homeland Security Investigations
- Madison County Sheriff’s Office
- Oconee County Sheriff’s Office
- City of Statham Police Department
- United States Marshals Service
- United States Probation Office
- Walton County Sheriff’s Office
Federal indictments charging 17 individuals have been unsealed. An indictment is only an allegation of criminal conduct, and all of the defendants are presumed innocent until and unless proven guilty in a court of law beyond a reasonable doubt. The following individuals are charged and have been taken into custody, unless otherwise noted:
16 of the individuals are charged with conspiracy to possess with intent to distribute methamphetamine, heroin and crack cocaine. The penalty is a mandatory minimum ten years in prison up to a maximum life term in prison, a $10 million dollar fine and five years supervised release:
Rickshun Willigham, aka “Teddy,” 32, of Athens
Jaquavious T. Turner, aka “Take One”
Jamian Huff, aka “Dunk,” 34, of Athens
Andrew Bravo Jimenez, aka “Droopy” (at-large)
Manuel Gonzalez Romero, of Athens and Mexico
Steven Ricole Scott, aka “Black,” aka “Unc,” 43, of Athens
Antonio M. Mitchell, aka “Tonio,” 30, of Athens
Marques Ward, aka “YG,” 31, of Athens
Ttajia Forney, 19, of Athens
Christopher Sanders, aka “Chris,” 33, of Athens
Bernard Barnett, aka “Nard,” 22, of Athens
Maquila Jones, aka “Qui,” 20, of Athens
Nicholas Jackson, aka “Nick Bean,” 26, of Athens
Terrell Bush, aka “T-Rock,” 45, of Athens
Shaddrick Cox, aka “Shad,” 24, of Athens
Robert Bolton, Jr., aka “Rob,” 31, of Athens
10 individuals are charged with distribution of cocaine base/crack cocaine. The penalties range from a maximum 20 years in prison to a maximum 40 years in prison:
Rickshun Willigham, aka “Teddy,” 32, of Athens (15 counts)
Jaquavious T. Turner, aka “Take One” (9 counts)
Jamian Huff, aka “Dunk,” 34, of Athens
Bernard Barnett, aka “Nard,” 22, of Athens (2 counts)
Shaddrick Cox, aka “Shad,” 24, of Athens
Steven Ricole Scott, aka “Black,” aka “Unc,” 43, of Athens (3 counts)
Christopher Sanders, aka “Chris,” 33, of Athens
Robert Bolton, Jr., aka “Rob,” 31, of Athens
Antonio M. Mitchell, aka “Tonio,” 30, of Athens
Maquila Jones, aka “Qui,” 20, of Athens
8 individuals are charged with possession of a firearm in furtherance of a drug trafficking crime. The penalty is a mandatory minimum five years in prison up to a maximum life term in prison:
Rickshun Willigham, aka “Teddy,” 32, of Athens (12 counts)
Jaquavious T. Turner, aka “Take One” (7 counts)
Bernard Barnett, aka “Nard,” 22, of Athens (3 counts)
Christopher Sanders, aka “Chris,” 33, of Athens
Antonio M. Mitchell, aka “Tonio,” 30, of Athens
Marques Ward, aka “YG,” 31, of Athens
Ttajia Forney, 19, of Athens
Shaddrick Cox, aka “Shad,” 24, of Athens
3 individuals are charged with distribution of heroin. The penalty is a maximum 20 years in prison:
Rickshun Willigham, aka “Teddy,” 32, of Athens (5 counts)
Jaquavious T. Turner, aka “Take One” (3 counts)
Bernard Barnett, aka “Nard,” 22, of Athens (2 counts)
6 individuals are charged with possession with intent to distribute heroin. The penalties range from a maximum 20 years in prison to a maximum 40 years in prison:
Marques Ward, aka “YG,” 31, of Athens
Ttajia Forney, 19, of Athens
Terrell Bush, aka “T-Rock,” 45, of Athens
Nicholas Jackson, aka “Nick Bean,” 26, of Athens
Manuel Gonzalez Romero, of Athens and Mexico
Andrew Bravo Jimenez, aka “Droopy” (at-large)
2 individuals are charged with distribution of methamphetamine. The penalty is a maximum 20 years in prison:
Rickshun Willigham, aka “Teddy,” 32, of Athens
Bernard Barnett, aka “Nard,” 22, of Athens
2 individuals are charged with possession with intent to distribute methamphetamine. The penalty is a maximum 20 years in prison:
Marques Ward, aka “YG,” 31, of Athens
Ttajia Forney, 19, of Athens
1 individual is charged with possession of a firearm by a convicted felon. The penalty is a maximum ten years in prison:
Armand Payne, 39, of Athens
The following subjects were taken into custody during “Operation Benchwarmers” on state charges:
Luis Besave-Lagunas (Charged in Madison County with Trafficking Heroin, Trafficking Methamphetamine and Possession of a Firearm during the Commission of a Felony)
Zenon Carrera-Ferrer (Charged in Athens-Clarke County with Trafficking Methamphetamine, Trafficking Heroin and Possession of Cocaine)
Dwight Moreland (Probation Violation)
Andreas Lane (Charged in Madison County with Possession with Intent to Distribute Heroin, Possession of a Firearm by a Convicted Felon and Probation Violation)
Adian Mapp (Charged in Madison County with Possession with Intent to Distribute Heroin and Possession of a Firearm by a Convicted Felon)
Leonard Jackson (Charged in Athens-Clarke County with Possession of a Firearm by a Convicted Felon)
The following firearms, cash and illegal drugs were seized:
- 43 firearms seized (including 8 assault rifles)
- $84,013 U.S. Currency seized
- 8.34 kilograms of heroin (Street Value: $667,200)
- 4.3 pounds of crystal methamphetamine (Street Value: $195,400)
- 26.1 ounces of crack cocaine (Street Value: $78,200)
- 2.4 pounds of marijuana (Street Value: $4,376)
- 3.31 ounces of power cocaine (Street Value: $9,400)
- 94 controlled pharmaceuticals (Street Value: $940)
- 40 grams of oxycodone (Street Value: $470)
“This operation represents the best of what law enforcement can accomplish when federal, state and local agencies come together with the unified goal of eradicating drug trafficking from a community,” said U.S. Attorney Charlie Peeler. “Our message to drug traffickers and gang members and other criminals in Athens is clear: Law enforcement is committed to protecting the citizens of Athens from illegal guns, gangs and drugs. I want to thank all participating agencies involved in this historic operation.”
“This case is a perfect example of how the FBI’s partnerships with federal, state and local law enforcement agencies are integral to protecting law abiding citizens in our communities,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The results of this operation speak for that. There is no question that our community is safer today than it was before these arrests.”
“The broad collection of law enforcement agencies allowed for an aggressive offense to be waged against a well-established poly-drug distribution network,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “Drug traffickers ultimately bring misery and destruction to communities. Consequently, DEA, its law enforcement partners and the U.S. Attorney’s Office are committed to serving and protecting these communities. The city of Athens, Georgia and surrounding areas are safer because these criminals have been removed from our streets.”
“With these arrests, the Athens-Clarke County Police Department is demonstrating its commitment to work with our federal, state and local law enforcement partners to remove violent felons from our community,” said ACCPD Chief Cleveland Spruill. “These suspects, with extensive criminal histories, face significantly long sentences in federal prison. It further indicates that the ACCPD does not tolerate gun violence and drug trafficking within our community. We are grateful for the efforts of our officers who have worked countless hours on this case and acknowledge the support of the many federal, state and local law enforcement agencies.”
The investigation was conducted as part of 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.
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 https://www.justice.gov/archives/projectguardian.
Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
22 January 2020
Wrestler sent to prison for running drug smuggling conspiracyRead the Press Release
LAREDO, Texas – A 32-year-old Mexican national has been ordered to federal prison after admitting he conspired to import over 50 kilograms of meth into the United States, announced U.S. Attorney Ryan K. Patrick.
Jose Ramos-Delgadillo pleaded guilty Oct. 3, 2019, to two counts – conspiracy to import and importation of meth.
Today, U.S. District Judge Diana Saldana handed him a 46-month sentence. Not a U.S. citizen, Ramos-Delgadillo is expected to face removal proceedings following the sentence.
On Aug. 4, 2019, Ramos-Delgadillo arrived in Laredo at the Juarez-Lincoln International Bridge driving a Ford Escape. An initial search yielded 24 bundles of meth concealed within the tires. However, authorities also discovered an additional 19 bundles in the vehicle’s firewall.
Upon questioning, Ramos-Delgadillo claimed he was a wrestler from Guadalajara, Mexico, who was traveling to Dallas to visit a friend.
He soon admitted he knew there were narcotics in the vehicle. He expected to be paid $5,000 for transporting the drugs.
The drugs weighed a total of 53.56 kilograms with an approximate value of more than $300,000.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with assistance from Customs and Border Protection. Assistant U.S. Attorney Jennifer Day is prosecuting the case.
West Yellowstone man admits possessing unregistered improvised bombsRead the Press Release
MISSOULA – A West Yellowstone man today admitted to possessing unregistered improvised bombs after law enforcement found three small devices in his truck last year, U.S. Attorney Kurt Alme said.
Charles Gibson Bailey, 33, pleaded guilty to possession of unregistered explosive devices. Bailey faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release.
U.S. Magistrate Judge Kathleen L. DeSoto presided and recommended Bailey’s plea be accepted by Chief U.S. District Judge Dana L. Christensen, who is hearing the case. Sentencing is set for May 8. Bailey was released.
In court records filed in the case, the prosecution said evidence showed that on Feb. 26, 2019, the West Yellowstone City Court issued a protection order against Bailey. On March 27, 2019, in connection with an investigation into Bailey’s violation of the protection order, law enforcement officers searched Bailey’s truck.
During the search, officers seized three small destructive devices, which were examined by an expert with the Bureau of Alcohol, Tobacco, Firearms and Explosives. The ATF expert concluded the three devices were designed as weapons and were properly identified as improvised explosive devices. Bailey did not register the devices with the National Firearms Registration and Transfer Record.
Assistant U.S. Attorney Tim Racicot is prosecuting the case, which was investigated by the ATF, West Yellowstone Police Department, Gallatin County Sheriff’s Office and National Park Service.
This case is part of Project Guardian, a Department of Justice initiative launched in the fall of 2019 to reduce gun violence and enforce federal firearms laws. Through Project Guardian, the U.S. Attorney’s Office in the District of Montana is working to enhance coordination of its federal, state, tribal and local law enforcement partners in investigating and prosecuting gun crimes. In addition, Project Guardian supports information sharing and taking action when individuals are denied a firearm purchase by the National Instant Criminal Background Check System for mental health reasons or because they are a prohibited person.
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Washington Woman and Nevada Man Sentenced to Federal Prison for Their Role in Insurance Fraud ConspiracyRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that Teresa Ann Gonzalez, age 63, of Otis Orchards, Washington, and Michael Adam White, age 40, of Las Vegas, Nevada were sentenced for their respective participation in an insurance fraud scheme involving staged accidents. Chief United States District Judge Thomas O. Rice sentenced Gonzalez to a 10-month term of imprisonment and White to a 14-month term of imprisonment, to be followed by a 3-year term of court supervision after each is released from federal prison. Chief Judge Rice also ordered Gonzalez to pay restitution in the amount of $13,132 and forfeiture of $13,132, and White to pay restitution in the amount of $50,000 and forfeiture of $50,000. Gonzalez pled guilty in June 2019, to one count of mail and wire fraud conspiracy. White pled guilty in June 2019, to one count of mail and wire fraud conspiracy and four counts of mail fraud.
According to information disclosed during court proceedings, Gonzalez was involved in one staged automobile accident in Spokane, Washington that defrauded an insurance company out of $236,324. Gonzalez received approximately $13,132 of the fraud proceeds. White was involved in four staged accidents that defrauded insurance companies out of approximately $1,085,392. White received approximately $50,000 of the fraud proceeds.
United States Attorney Hyslop said, “Staging phony car accidents on our streets poses a significant danger to innocent citizens and results in higher insurance premiums. The United States Attorney’s Office for the Eastern District of Washington, along with our federal, state, local and tribal law enforcement partners, will continue to investigate and prosecute aggressively those individuals who may perpetrate such fraud. I commend the FBI, IRS Criminal Investigation and U.S. Marshals Service for their outstanding work investigating this case.”
This case was investigated by the Federal Bureau of Investigation, Internal Revenue Service Criminal Investigation, U.S. Marshals Service and U.S. Attorney’s Office for the Eastern District of Washington Criminal Healthcare Fraud Investigator, with assistance from the National Insurance Crime Bureau. This case was prosecuted by George J.C. Jacobs, III, and Brian Donovan, Assistant United States Attorneys for the Eastern District of Washington.
Wahpeton, ND, Man Sentenced to 10 years in Federal Prison for the Transportation of a Child for purpose of Engaging in Illicit Sexual ActivityRead the Press Release
Fargo – United States Attorney Drew H. Wrigley announced that on January 22, 2020, U.S. District Court Chief Judge Peter D. Welte sentenced Dustin James Gilleo, age 33, Wahpeton, ND, to serve 10 years in federal prison, followed by a 15 years of supervised release for the charge of Transportation of a Minor. Gilleo was further ordered to pay $100 in special assessments to the Crime Victims’ Fund and $900 in restitution to the North Dakota Crimes Victims’ Compensation.
“The internet erased distance and created the opportunity for this defendant to entice a juvenile away from the safety of her home and into the sordid web of a sexual predator,” said United States Attorney Drew Wrigley, “I commend the work of each law enforcement entity involved in this case, as their swift action avoided further victimization and put this predator away.”
On January 3, 2019, the Beautfort County Sheriff’s Office, South Carolina, reported that a missing juvenile female from Burton, SC, had been located via cellular phone tracking at the Minneapolis-St. Paul (MSP) International Airport. Further investigation by the MSP Airport Security revealed the missing juvenile entered a vehicle belonging to Dustin Gilleo of Wahpeton, ND. On January 4, 2020, the Wahpeton Police Department located the missing juvenile female at a residence in Wahpeton, ND, at which time law enforcement removed the juvenile from the residence, and later interviewed her. During the interview, she said she left her residence in South Carolina and met Gilleo at the MSP Airport as they had previously planned. Gilleo then drove the juvenile to his residence in Wahpeton, ND, where Gilleo and the juvenile engaged in sexual intercourse.
Gilleo admitted that the female found at his apartment was the missing juvenile from Burton, South Carolina. Gilleo acknowledged meeting the juvenile online and the two had been communicating for over five months. Gilleo admitted their communications were sexual in nature and that they had exchanged sexually explicit images of one another via text and various apps. Gilleo further admitted that he knew the girl was 16 years old at the time she travelled to North Dakota, and he admitted to having sexual intercourse with the girl at his apartment.
United States Attorney Drew Wrigley commended those involved in the investigation and prosecution of this case, the Homeland Security Investigation, North Dakota Bureau of Investigation, Wahpeton Police Department, the Beaufort County Sheriff’s Office, South Carolina, and Assistant United States Attorney Jennifer Klemetsrud Puhl.
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Venezuelan Man Sentenced for Aggravated Identity Theft and Access Device FraudRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that United States District Judge James C. Dever III sentenced RICARDO ABDEL, of Doral, Florida, to 48 months imprisonment, followed by 3 years of supervised release and ordered them to pay $19,966.71 in restitution. ABDEL, a permanent resident alien from Venzuela, was named in a two-count Criminal Information charging Access Device Fraud and Aggravated Identity Theft. ABDEL pled guilty to those charges on March 20, 2019.
In March 2018, the Wilmington Police Department (WPD) was alerted by investigators with the State Employees’ Credit Union (SECU) fraud division of ongoing fraudulent debit/credit card withdrawals being made from member accounts at various automated teller machines (ATMs) in the Wilmington area. On March 5, 2018, the United States Secret Service (USSS) was notified by the SECU and the WPD that three individuals were attempting to illegally withdraw money from an SECU ATM located on Wrightsville Avenue in Wilmington. Officers responded to that location and conducted a traffic stop of a vehicle in which ABDEL and two other persons were riding. A search of the vehicle revealed approximately $9,319 in United States currency, numerous debit/credit cards, computers, digital storage media, and two debit/credit card readers/encoders.
Investigators with the SECU’s fraud unit and the USSS determined that the fraudulent debit/credit cards were used at multiple ATM locations in the Wilmington area over a period of several days. Further, the SECU’s fraud unit confirmed that an illegal debit/credit card skimming device had been placed on a SECU ATM in Leland, North Carolina. A forensic search of the seized laptop computers and cell phones revealed 566 individual card numbers which were issued by 71 different financial institutions, including 7 card numbers which were issued by financial institution in Mexico and 1 from India. The intended loss was calculated at $283,000.
On July 3, 2018, investigators received credible information identifying co-conspirators based in Venezuela and in the Miami, Florida, area who were involved in the scheme to commit access device fraud. The conspirators downloaded credit card data from Bluetooth debit/credit card skimming devices which were secretly installed in Tritan ATMs. After obtaining the debit/credit card and personal identification numbers (PIN) from the debit/credit card skimming devices, the coconspirators used a credit card reader/writer to reencode counterfeit debit/credit cards. In March 2018, ABDEL and his conspirators used the fraudulent debit/credit cards at ATMs in the Wilmington area to withdraw funds from multiple victims’ accounts. The investigation revealed that the group was traveling to various states, including Georgia, California, and Florida, to install debit/credit card skimming devices. It is estimated that the group made $250,000 monthly as a result of the fraudulent scheme.
Additionally, investigators learned that in March 2018, ABDEL spent four or five days in the Wilmington area placing pin-hole camera skimming devices on ATMs and collecting account numbers. Those numbers were then encoded onto magnetic stripe cards and used to fraudulently withdraw funds from ATMs. ABDEL and the others also travelled to the Wilmington area two to three weeks earlier in order to recover debit/credit card skimming devices and computers which were left in a suitcase in a storage unit by another coconspirator.
The United States Secret Service, the Wilmington Police Department and the Kure Beach Police Department conducted the investigation. Assistant United States Attorney Ethan Ontjes represented the government.
Vancouver Woman Sentenced to 14 Years in Federal Prison for Drug Trafficking in Two CasesRead the Press Release
PORTLAND, Ore.—Darlene Michelle Sturdevant, 61, of Vancouver, Washington, was sentenced today to 14 years in federal prison and five years’ supervised release for conspiring to possess with intent to distribute methamphetamine and heroin throughout the Portland Metropolitan Area, possessing with intent to distribute heroin, and committing an offense while on release.
According to court documents, in February 2018, Sturdevant was a passenger in a vehicle driven by Rene Elene Griffen Nunn, 60, also of Vancouver, when the two were stopped by the Clackamas County Interagency Task Force (CCITF) and U.S. Drug Enforcement Administration (DEA). Investigators believed Sturdevant and Nunn were driving from Vancouver to Portland to distribute drugs.
A search of the vehicle revealed $155,949, a digital scale, and a notebook in Sturdevant’s backpack and approximately 87 grams of heroin in Nunn’s purse. Investigators returned to Vancouver and searched a residence shared by Sturdevant, Nunn, and others and found an additional 367 grams of heroin and a kilogram of methamphetamine.
Sturdevant was charged with drug trafficking and released pending trial. After pleading guilty in October 2018, DEA learned that Sturdevant was again selling drugs. On January 29, 2019, DEA agents executed a search warrant at Sturdevant’s new residence in Portland and seized approximately 558 grams of heroin, digital sales, a drug ledger, and $27,250.
During sentencing, U.S. District Court Judge Marco A. Hernandez ordered Sturdevant to forfeit $183,199 seized by investigators.
On October 31, 2019, Nunn pleaded guilty to one count of conspiracy to possess with intent to distribute heroin. She will be sentenced on March 4, 2020.
This case was investigated by the DEA and CCITF and was prosecuted by the U.S. Attorney’s Office for the District of Oregon.
Van Nuys, California, man convicted of sexual assault on an aircraftRead the Press Release
Seattle – A 42-year-old Van Nuys, California, man was convicted late yesterday in U.S. District Court in Seattle of two federal felonies for his sexual assault on a young woman on a flight from London to Seattle. BABAK REZAPOUR was convicted of abusive sexual contact in a special aircraft jurisdiction and abusive sexual contact with an incapacitated victim. The jury deliberated about two and a half hours following a five-day jury trial. REZAPOUR was remanded to custody. He is scheduled to be sentenced by U.S. District Judge Robert S. Lasnik on April 24, 2020.
According to records filed in the case and testimony at trial, REZAPOUR sexually assaulted the 22-year-old victim while she was incapacitated from medication and alcohol on a Norwegian Air flight from London to Seattle on January 10, 2018. The victim had taken prescribed anti-anxiety and anti-nausea medication and drank a glass of wine. The victim then accepted a second glass of wine purchased for her by REZAPOUR. After drinking the second glass, the victim became unusually sleepy. She awoke to find REZAPOUR sexually assaulting her. REZAPOUR used his jacket to shield the activity from other passengers. The victim fled to the back of the plane and reported the assault to flight attendants.
At trial, witnesses described seeing REZAPOUR move into the seat next to the victim, contradicting his statements to law enforcement that he had stayed in his aisle seat with an open seat between them. In multiple statements to different investigators following the incident, REZAPOUR changed his description of what had occurred on the plane. In addition to consistent statements from the victim and witnesses, prosecutors used DNA evidence to prove REZAPOUR’s guilt beyond a reasonable doubt. An FBI DNA expert described how she discovered REZAPOUR’s DNA inside the victim’s underwear. Abusive Sexual Contact on an Aircraft is punishable by up to two years in prison, and Abusive Sexual Contact with an Incapacitated Victim is punishable by up to three years in prison.
The case was investigated by the Port of Seattle Police and the FBI. The case is being prosecuted by Assistant United States Attorneys Marie Dalton and Grady Leupold.
United States Attorney Erica H. Macdonald Appointed by United States Attorney General William P. Barr to the Presidential Commission on Law Enforcement and the Administration of JusticeRead the Press Release
During a ceremony today in Washington, D.C., United States Attorney Erica H. MacDonald was appointed by Attorney General William P. Barr to the Presidential Commission on Law Enforcement and the Administration of Justice. On October 28, 2019, President Donald J. Trump signed Executive Order No. 13896, authorizing and designating the Attorney General to create such a Commission that would explore modern issues affecting law enforcement that most impact the ability of American policing to reduce crime. The launch of the Commission was announced at today’s ceremony as well.
“There is no more noble and important profession than law enforcement. A free and safe society requires a trusted and capable police force to safeguard our rights to life and liberty,” said Attorney General William P. Barr. “But as criminal threats and social conditions have changed the responsibilities and roles of police officers, there is a need for a modern study of how law enforcement can best protect and serve American communities. This is why the President instructed me to establish this critical Commission, whose members truly reflect the best there is in law enforcement. Together, we will examine, discuss, and debate how justice is administered in the United States and uncover opportunities for progress, improvement, and innovation.”
United States Attorney Erica H. MacDonald said, “I am honored to serve on this Commission alongside a group of incredible leaders who are dedicated to service and public safety. I undertake this responsibility fully cognizant that the Commission’s recommendations will impact our communities, law enforcement professionals and many components of the criminal justice system for decades into the future. My highest priority as United States Attorney for the District of Minnesota is keeping individuals, families and communities safe, which is the same priority I bring to this Commission.”
The Executive Order instructs the Commission to conduct its study by focusing on the law enforcement officers who are tasked with reducing crime on a daily basis. It also directs the Commission to research “important current issues facing law enforcement and the criminal justice system,” and recommends a variety of subjects for study, such as, but not limited to:
- The challenges to law enforcement associated with mental illness, homelessness, substance abuse, and other social factors that influence crime and strain criminal justice resources;
- The recruitment, hiring, training, and retention of law enforcement officers, including in rural and tribal communities;
- Refusals by State and local prosecutors to enforce laws or prosecute categories of crimes;
- The need to promote public confidence and respect for the law and law enforcement officers; and
- The effects of technological innovations on law enforcement and the criminal justice system, including the challenges and opportunities presented by such innovations.
The Commission will principally conduct its study through a series of hearings, panel presentations, field visits, and other public meetings. At these events, the Commission will hear from subject matter experts, public officials, private citizens, and other relevant stakeholders and institutions who can provide valuable insight into these issues.
The Commissioners, appointed by the Attorney General and announced today, are urban police chiefs, state prosecutors, county sheriffs, members of rural and tribal law enforcement, federal agents, a U.S. Attorney, and a state attorney general. In addition to their diverse experiences and backgrounds, each member brings to the Commission an expertise in formulating and shaping law enforcement policy and leading police departments and law enforcement organizations.
The Commission will meet monthly for the next year and then report its findings to the Attorney General, who will submit a final report to the President.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
U.S. Attorney’s Office Collects $16,113,273.52 in Civil and Criminal Actions in Fiscal Year 2019Read the Press Release
SALT LAKE CITY -- U.S. Attorney John W. Huber announced Wednesday that $16,113,273.52 in criminal and civil actions was collected in Utah during fiscal year 2019, which ended Sept. 30, 2019.
Of this amount, $5,937,820.86 was collected in criminal cases and $10,175,452.66 through civil actions.
Additionally, the U.S. Attorney’s Office in Utah worked with other U.S. Attorneys’ Offices and components of the Department of Justice to collect an additional $2,020,570.97 in cases pursued jointly by these offices. Of this amount, $3,450 came from criminal cases and $2,017,120.97 through civil actions.
“The money we have collected is used to provide restitution to victims of federal crimes and support important victim assistance programs,” Huber said today. “These funds also come from divesting criminals of the proceeds of their illegal conduct.”
Collections this year included the Lyle Jeffs case, where $99,216.53 in forfeited assets were applied to Jeffs’ $1 million restitution judgment in March 2019 in favor of the U.S. Department of Agriculture. Another defendant voluntarily paid $449,571.19 in February 2019 in full satisfaction of his restitution debt.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department of Justice’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Additionally, the U.S. Attorney’s Office in Utah, working with partner agencies and divisions, collected $1,517,673 in asset forfeiture actions in FY 2019. Forfeited assets deposited into the Department of Justice’s assets forfeiture fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Two Mississippi Men Sentenced for Roles in Automotive Fraud SchemeRead the Press Release
Two Long Beach, Mississippi men were sentenced today for their roles in a long-running odometer tampering scheme, the Department of Justice announced.
U.S. District Judge Louis Guirola Jr. sentenced Oscar M. Baine, 42, to 36 months’ incarceration and ordered him to pay $619,200 in restitution. Jeffrey Lyn Savarese II, 36, was sentenced to 15 months’ incarceration and ordered to pay $320,000 in restitution. Both men pleaded guilty in July to conspiracy to alter odometers. Baine also pleaded guilty to odometer tampering.
As part of his guilty plea, Baine admitted that he purchased high-mileage vehicles from wholesale automobile auctions, dealerships, and individuals, and arranged to alter the vehicles’ odometers to reflect false, lower-mileage readings. Baine admitted that he paid Savarese and others to change or alter odometers at his used car lot in Gulfport. Baine then sold the rolled-back vehicles to unsuspecting consumers for inflated prices. He also admitted that he and a co-conspirator caused at least 387 vehicles to be rolled back between 2011 and 2014, which resulted in consumer losses of more than $600,000. Savarese admitted that he began altering odometers for Mississippi and Louisiana used-car dealers in 2011 and reset the odometers on at least 200 used vehicles for Baine.
"The Department of Justice has long been committed to prosecuting automobile dealers, wholesalers, and mechanics who defraud consumers by selling vehicles with unlawfully altered odometers," said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. "Vehicle mileage is critical to consumers who rely on that information to evaluate the value and safety of a used vehicle."
"These criminals not only defrauded hundreds of people but they directly put families and the general public at risk," said U.S. Attorney Mike Hurst of the Southern District of Mississippi. "We will continue to do all that we can to protect our citizens from fraudsters who endanger others just to make a quick buck."
Senior Litigation Counsel Linda I. Marks of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Andrea Jones of the U.S. Attorney’s Office for the Southern District of Mississippi prosecuted the case. The National Highway Traffic Safety Administration Office of Odometer Fraud Investigation (NHTSA), assisted by the State of Mississippi Office of the Attorney General, investigated the case.
NHTSA estimates that odometer fraud in the United States results in consumer losses of more than $1 billion annually. Individuals with information relating to odometer tampering should call NHTSA’s odometer fraud hotline at (800) 424-9393 or (202) 366-4761. More information on odometer fraud is available on the NHTSA website at https://www.nhtsa.gov/odometer-fraud and tips on detecting and avoiding odometer fraud are available at www.nhtsa.gov/staticfiles/nvs/pdf/811284.pdf .
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at http://www.justice.gov/civil/consumer-protection-branch.
Two Mississippi Men Sentenced for Roles in Automotive Fraud SchemeRead the Press Release
Two Long Beach, Mississippi men were sentenced today for their roles in a long-running odometer tampering scheme, the Department of Justice announced.
U.S. District Judge Louis Guirola Jr. sentenced Oscar M. Baine, 42, to 36 months’ incarceration and ordered him to pay $619,200 in restitution. Jeffrey Lyn Savarese II, 36, was sentenced to 15 months’ incarceration and ordered to pay $320,000 in restitution. Both men pleaded guilty in July to conspiracy to alter odometers. Baine also pleaded guilty to odometer tampering.
As part of his guilty plea, Baine admitted that he purchased high-mileage vehicles from wholesale automobile auctions, dealerships, and individuals, and arranged to alter the vehicles’ odometers to reflect false, lower-mileage readings. Baine admitted that he paid Savarese and others to change or alter odometers at his used car lot in Gulfport. Baine then sold the rolled-back vehicles to unsuspecting consumers for inflated prices. He also admitted that he and a co-conspirator caused at least 387 vehicles to be rolled back between 2011 and 2014, which resulted in consumer losses of more than $600,000. Savarese admitted that he began altering odometers for Mississippi and Louisiana used-car dealers in 2011 and reset the odometers on at least 200 used vehicles for Baine.
"The Department of Justice has long been committed to prosecuting automobile dealers, wholesalers, and mechanics who defraud consumers by selling vehicles with unlawfully altered odometers," said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. "Vehicle mileage is critical to consumers who rely on that information to evaluate the value and safety of a used vehicle."
"These criminals not only defrauded hundreds of people but they directly put families and the general public at risk," said U.S. Attorney Mike Hurst of the Southern District of Mississippi. "We will continue to do all that we can to protect our citizens from fraudsters who endanger others just to make a quick buck."
Senior Litigation Counsel Linda I. Marks of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Andrea Jones of the U.S. Attorney’s Office for the Southern District of Mississippi prosecuted the case. The National Highway Traffic Safety Administration Office of Odometer Fraud Investigation (NHTSA), assisted by the State of Mississippi Office of the Attorney General, investigated the case.
NHTSA estimates that odometer fraud in the United States results in consumer losses of more than $1 billion annually. Individuals with information relating to odometer tampering should call NHTSA’s odometer fraud hotline at (800) 424-9393 or (202) 366-4761. More information on odometer fraud is available on the NHTSA website at https://www.nhtsa.gov/odometer-fraud and tips on detecting and avoiding odometer fraud are available at www.nhtsa.gov/staticfiles/nvs/pdf/811284.pdf .
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Southern District of Mississippi, visit https://www.justice.gov/usao-sdms.
Twelve Individuals Indicted in Methamphetamine Distribution and Money Laundering ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced today that twelve defendants, primarily residents of Haskell and Pittsburg Counties, have been indicted for their roles in a conspiracy to distribute and possess with the intent to distribute methamphetamine and other controlled substances in the Eastern District of Oklahoma and elsewhere. Drug Conspiracy is punishable by not less than 10 years imprisonment, and up to a $10,000,000 fine or both. Eight of those defendants were also indicted for conspiracy to launder money and money laundering charges which are punishable by not more than 20 years imprisonment, a fine greater of $500,000 or two-times the amount of the transaction or both. The indictment also charges two defendants with firearm offenses carrying punishment of not more than 10 years imprisonment, and up to a $250,000 fine or both. A coordinated law enforcement operation to arrest the defendants charged in the indictment began this morning and is ongoing. A copy of the full indictment can be found online at https://go.usa.gov/xdYg4.
The indictment alleges the defendants were involved in a drug trafficking organization that utilized the United States mail to transport controlled substances from California to Oklahoma for distribution in the Eastern District of Oklahoma and elsewhere. The indictment also alleges defendants utilized bank accounts and various wire transfer entities to facilitate the unlawful activities and launder the proceeds of the drug trafficking organization.
Defendants indicted are Kimberly Diana Noel, age 52, of Desert Hot Springs, California; Early Willard Woodmore, III, age 32, of Quinton, Oklahoma; Calvin James Woodmore, age 31, of McAlester, Oklahoma; Amber Nicole Woodmore, age 29, of McAlester, Oklahoma; Valerie Nacole Adcock, age 36, of McAlester, Oklahoma; Dennis Clyde Marshall, Jr., age 36, of McAlester, Oklahoma; Prentice Roland Keith, age 48, of Kinta, Oklahoma; Jimmie Ray Stephens, age 65, of Lewisville, Oklahoma; Tiffany Ann Meeks-Davis, age 32, of McAlester, Oklahoma; Michael Dewane Hunt, age 54, of Kinta, Oklahoma; Choice Lynn Needham, age 45, of Quinton, Oklahoma; and Janet Sue Troutt, age 60, of Rogers, Arkansas.
The charges arose from a joint investigation led by the Drug Enforcement Administration (“DEA”), along with the Bureau of Indian Affairs (“BIA”), the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), the Internal Revenue Service (“IRS”), the United States Postal Inspection Service (“USPIS”), the Oklahoma Bureau of Narcotics (“OBN”), the National Guard Counterdrug Task Force, the Haskell County Sheriff’s Office, the District 18 District Attorney’s Drug Task Force, the Seminole Nation Lighthorse Police, the Choctaw Nation Tribal Police, the Pittsburg County Sheriff’s Office, the McAlester Police Department, and the Stigler Police Department. The investigation was part of and include members of the DEA High Intensity Drug Trafficking (“HIDTA”) Task Force.
“Methamphetamine continues to be the leading cause of death by overdose in Oklahoma. It is therefore imperative that the law enforcement community diligently investigate the drug trafficking organizations that push this poison into our communities,” said United States Attorney Brian J. Kuester. “I commend the DEA, its task force partners, and the many other agencies that assisted with this long term investigation. In rural Oklahoma this type of team work amongst federal, state, local, and tribal law enforcement agencies is key to our fight against the drug trade.”
“The arrest of Mr. Woodmore and his associates have undoubtedly made our communities safer and prevented the further destruction that methamphetamine can bring to neighborhoods in Eastern Oklahoma. The DEA will continue to work hand in hand with our law enforcement partners across the state to ensure justice is served,” said Eduardo A. Chavez, Special Agent in Charge, Dallas Field Division.
“Today’s arrests send a clear message to those who attempt to launder illegal drug proceeds. IRS Criminal Investigation is committed to uncovering the profits earned from illegal activity and prosecuting the criminals who try to hide them,” said Kevin Caramucci, IRS Assistant Special Agent in Charge of the Dallas Field Office. “We are pleased to join forces with our Federal, State and local law enforcement partners to aggressively pursue and crack down on drug dealing organizations in our communities.”
“It’s in our mission statement,” said Thomas Noyes, the Inspector in Charge of the U.S. Postal Inspection Service, Fort Worth Division, “to defend the U.S. Mail from being used to facilitate criminal activity in an effort to protect our communities. To this end, Postal Inspectors will spare no effort, and aggressively work towards dismantling criminal networks and seeking the maximum prosecution of offenders. We thank the U.S Attorney’s Office for their dedication, and are proud to be joined with the many federal, state and local agencies whose combined efforts brought this investigation to a successful resolution.”
Haskell County Sheriff Timothy Turner said, “This long-term investigation that began in Haskell County would not have been as great a success without the collaboration of local, state, tribal, and federal law enforcement agencies. I am thankful for those agencies that participated. As a result of our joint efforts, the citizens of Haskell County and Eastern Oklahoma are safer.”
This case is part of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program. The OCDETF program is the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s illicit drug supply.
A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt.
Three Individuals Indicted and Arrested for Lying to an Agency of the United States and the Embezzlement of Government PropertyRead the Press Release
SAN JUAN, P.R. – On January 15, 2020, a federal grand jury in the District of Puerto Rico returned an indictment against David Luis Rey-Delgado, David Santiago-Delgado, and José Daniel Cruz Gómez-Hernández, charging them with false statements made to an agency of the United States, and multiple counts of embezzlement of government property, announced United States Attorney W. Stephen Muldrow. The Office of the Inspector General, U.S. Department of the Interior and the National Park Service Law Enforcement Ranger are in charge of the investigation.
According to the information contained in the indictment, on June 11, 2019 David Luis Rey-Delgado and David Santiago-Delgado willfully and knowingly made a materially false, fictitious, and fraudulent statement and representation in a matter within the jurisdiction of the Office of the Inspector General, U.S. Department of the Interior, a department or agency of the executive branch of the Government of the United States, by stating during an interview with the National Park Service Law Enforcement Ranger, that the Polaris all-terrain vehicle had been bought from an unknown individual in Toa Alta, Puerto Rico. The statements and representations were false because, as the defendants herein knew, the Polaris all-terrain vehicle had been taken from a parking garage without authorization and was not bought in Toa Alta, Puerto Rico. Defendant Rey-Delgado is also facing one count for embezzlement of government property for knowingly stealing, purloining and converting to his use or the use of another a Polaris all-terrain vehicle, property of the United States of a value exceeding $1,000, in violation of Title 18, United States Code, Section 641.
The indictment also charges José Daniel Cruz Gómez-Hernández in two counts for false statements and six counts for the embezzlement of government property. As per the evidence, on August 23, 2019, Gómez-Hernández willfully and knowingly made a materially false, fictitious, and fraudulent statement and representation in a matter within the jurisdiction of the Office of the Inspector General, U.S. Department of the Interior, by stating during an interview with the National Park Service Law Enforcement Ranger, that he had disposed of the generator, cement mixer, backhoe, icebox, washer/dryer combo unit and trolleybuses that he was contracted to remove and destroy from the San Juan National Historic Site, a historical site managed by the National Park Service. The statements and representations were false because, as the defendant herein knew, the property was not destroyed and he kept them in a field for his own interest without authorization.
In addition, on April 8, 2019, defendant Gómez-Hernández took and submitted pictures of the generator, cement mixer, backhoe, icebox, washer/dryer combo unit and trolleybuses that he was contracted to remove and destroy. The statements and representations were false because, as the defendant herein knew, the property was not destroyed, and the photographs were submitted in order to receive the payment of $1,050.00, agreed to. Counts Six to Eleven of the Indictment constitute counts of embezzlement for each piece of property that the defendant was supposed to remove and destroy from the San Juan National Historic Site. The defendants are also facing a forfeiture count for the embezzled property.
The case is being prosecuted by Assistant United States Attorney María L. Montañez-Concepción. If convicted, the defendants could face a maximum penalty of five years of imprisonment and a fine of not more than $250,000.00 for the false statements violations; and up to ten years of imprisonment and a fine of not more than $250,000.00, for each embezzlement count.
Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
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Thirteen Members and Associates of Violent Sex Trafficking Gang “the Sevens” Charged in Superseding IndictmentRead the Press Release
READING, PA – United States Attorney William M. McSwain and Acting Special Agent in Charge of Homeland Security Investigations (HSI) Philadelphia William Walker announced today that 13 individuals from Reading were charged in a 22-count Superseding Indictment with offenses including conspiracy to participate in a racketeering enterprise; conspiracy to commit sex trafficking by force, fraud, and coercion of a minor; various violent crimes in aid of racketeering offenses including murder, attempted murder, kidnapping, and assaults with dangerous weapons; sex trafficking; and child exploitation and firearms offenses.
The charged individuals are:
- Shaquile W. Newson, a/k/a “Raw,” a/k/a “San,” 26;
- Alexander M. Malave, a/k/a “Buju,” a/k/a “Ace,” 28;
- Karvarise E. Person, a/k/a “Crazy K,” a/k/a “Killa,” a/k/a “K,” 30;
- Fatiema S. Bivens, 28;
- Isaiah Rowe, a/k/a “Izzy,” 21;
- James Goode, a/k/a “Jamil,” 44;
- Yojang Torres-Rosario, a/k/a “Domi,” 26;
- Richard Poulson, a/k/a “ATL,” 26;
- Jessica Lopez, a/k/a “Mother of the Sevens,” 39;
- Ryan Nunez, 23;
- Tyashia Monroe, a/k/a “Little Baby,” 19;
- Wendy Espada, 28; and
- Michael Diaz-Walker, a/k/a “Big Mike,” 32.
The charges stem from a years’ long investigation by Homeland Security Investigations and the Reading Police Department for crimes committed by a gang called “The Sevens,” operating primarily from a boarding house located on 125-127 South 4th Street in Reading.
The racketeering conspiracy allegedly operated out of the boarding house as far back as December 2017, and it continued until in or about March 2019. Multiple acts of violence in furtherance of the conspiracy were perpetrated against many victims over this period of time. More specifically, the Superseding Indictment discusses 15 victims of sex trafficking and violent crime, two of whom are minors. The Superseding Indictment also sets out 43 overt acts in furtherance of this sex trafficking and drug trafficking conspiracy.
The charges describe a shocking series of dehumanizing and violent actions. For example, the Superseding Indictment recounts how one victim was held down while her hair was cut with gardening shears and was told she would be taken for a “trunk ride” if she did not comply with the gang’s demands. It describes how other victims were shot, assaulted with a baton, stabbed with a knife, and hit with a hammer. Another was murdered. It details how another victim, a minor, was forced to have a sexual encounter with a gun held to her head; how that same victim was assaulted with a baton and hammer and locked naked in a dog kennel. It also describes how pictures of that victim’s abuse were used to advertise online the Sevens’ sex trafficking business.
“The allegations here against the Sevens gang describe a level of depravity that is hard to imagine,” said U.S. Attorney McSwain. “We have stopped this violence and the Sevens gang will no longer menace the streets of Reading. This is fitting in that January 2020 is National Slavery and Human Trafficking Prevention Month. My Office is committed to working with all of our federal, state, and local law enforcement partners to rid our District of the scourge of human trafficking.”
“The Sevens gang not only operated a sex trafficking ring involving minors, but also allegedly perpetrated crimes of drug trafficking, assaults, robberies, and even homicides,” said Acting Special Agent in Charge Walker. “These horrific crimes were taking place in our own backyard. Thanks to HSI’s close partnership with the Reading Police Department and our law enforcement colleagues in the area, we were able to track down these violent criminals, and most importantly, put a stop to an illicit operation that would have undoubtedly resulted in more innocent victims. It’s critical that members of the public educate themselves on human trafficking crimes so they recognize the indicators and alert law enforcement accordingly. An educated public can help law enforcement rescue victims of these heinous situations and ensure those committing these acts are punished.”
“I would like to thank the U.S. Attorney’s Office for the Eastern District of Pennsylvania and Homeland Security Investigations for their cooperation and support during this lengthy investigation,” said Captain Paul Reilly, Investigations Division, Reading Police Department. “The City of Reading is safer after the removal of the Sevens’ gang members from our streets. These individuals preyed on the young, weak and vulnerable members of our community. They held no reservations in resorting to violence to handle disputes or to enforce their authority in the community.”
If convicted, all defendants face up to lifetime imprisonment.
The case was investigated by Homeland Security Investigations and the Reading Police Department, and is being prosecuted by Assistant United States Attorney Sherri A. Stephan.
An Indictment, Information, or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Texas Man Sentenced for Failure to Register as Sex OffenderRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Jason Ray Scott, 39, Winnesboro, Texas, was sentenced today by U.S. District Judge William M. Conley to 14 months in federal prison for failing to register as a sex offender in Wisconsin. This prison term will be followed by five years of supervised release.
In 2013, Scott was convicted in Texas of online solicitation of a minor for sexual conduct. As a result of this state conviction, Scott was required to register as a sex offender, but failed to do so. In August 2018, Scott was arrested in Portage County, Wisconsin, on an outstanding warrant from Texas for failure to register there. From late 2017 through August 31, 2018, Scott worked and lived in Stevens Point, Wisconsin. Scott did not report his Wisconsin employment or residence as required, which led to the federal charge for failure to register in Wisconsin for which he was sentenced today.
After Scott was released from state custody on the Texas warrant, but before he was charged with failure to register in Wisconsin, he travelled to Eagle County, Colorado. He was charged with failure to register as a sex offender and sexual exploitation of a child in Eagle County, Colorado. Scott’s Colorado charges are still pending.
The charge against Scott was the result of an investigation conducted by the U.S. Marshals Service. The prosecution of the case has been handled by Assistant U.S. Attorney Julie Pfluger.
Tacoma woman pleads guilty to three federal felonies related to 7-year benefit fraud schemeRead the Press Release
Seattle –A 39-year-old Tacoma resident pleaded guilty today in U.S. District Court in Seattle to wire fraud, aggravated identity theft, and embezzlement of mail by a postal employee. ILIGANOA THERESA LAUOFO illegally collected more than $267,000 over the course of a fraud scheme that began in 2011 and continued until 2018. LAUOFO is scheduled to be sentenced by U.S. District Judge Richard A. Jones on April 17, 2020.
According to records in the case, LAUOFO lied about her household composition and income, used stolen identities to claim additional benefits and open bank and credit accounts, and stole checks from the mail during a period when she was employed by the U.S. Postal Service. Between April 2011 and December 2018, LAUOFO applied for welfare benefits, including food, childcare, and income assistance, by claiming her husband did not live with the family, and submitted falsified documents to bolster that claim. Had her husband’s income been counted, she would not have qualified for the assistance she received. In addition to the benefits claimed in her own name, LAUOFO applied for and received additional benefits in stolen identities of friends and family members. Across those various identities, LAUOFO also stole and misused the identity information of 13 minor children who lived in American Samoa, claiming they resided with her (or her alternate identities) when they did not. By claiming these children, she received additional food and childcare benefits. In all, LAUOFO fraudulently received $222,294 in benefits.
LAUOFO falsely claimed the children on her tax filings, resulting in over $35,000 in tax credits and refunds that she did not deserve.
The fraud did not end with stolen benefits. LAUOFO used some of the identities she stole to open bank and credit accounts. She opened one of those accounts in the name of her ex-husband three years after he died, and deposited worthless checks in the bank account and quickly withdrew cash before the bank realized the fraud. More than $10,000 in loss resulted from that conduct.
Finally, in March 2018, when LAUOFO was employed by the U.S. Postal Service as a letter carrier, she stole and deposited checks from the mail she was assigned to deliver. She deposited the checks into an account in the name of one of the identities she had stolen in the benefits fraud scheme. Later, in April 2018, LAUOFO discarded and destroyed more than 200 pieces of mail, later admitting she threw the mail in a dumpster so she could complete her route more quickly.
Wire fraud is punishable by up to 20 years in prison and embezzlement by a postal employee is punishable by up to five years in prison. Aggravated identity theft is punishable by a mandatory consecutive two-year prison term to follow any punishment imposed on the other counts of conviction. The ultimate sentence will be determined by the Court based on the advisory Sentencing Guidelines and other statutory factors.
The case is being investigated by the Social Security Administration Office of Inspector General (SSA-OIG), Washington State Department of Social and Health Services Office of Fraud and Accountability (DSHS/OFA), and the United States Postal Service Office of Inspector General (USPS-OIG).
The case is being prosecuted by Special Assistant United States Attorney Benjamin Diggs. Mr. Diggs is an attorney with the Social Security Administration, specially designated to prosecute fraud cases in federal court.
Supplier to Drug Trafficking Organization and Two of Its Members Admit Roles in Heroin Distribution ConspiracyRead the Press Release
TRENTON, N.J. – A Pennsylvania man and two Mercer County, New Jersey, men today admitted their roles distributing heroin in and around Trenton, U.S. Attorney Craig Carpenito announced.
Duane Paulino-Escalera, 27, of Philadelphia, and Izae Alford, 21, of Trenton, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to separate informations charging each of them with one count of conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin. Darryl Young, 27, of Trenton, pleaded guilty before Judge Shipp to an information charging him with one count of conspiracy to distribute and possess with intent to distribute a quantity of heroin.
In June 2019, Paulino-Escalera, Alford, Young, and eight others were charged by complaint with conspiracy to distribute heroin. Paulino-Escalera, Alford and Young are the first three defendants to plead guilty.
According to documents filed in this case and statements made in court:
From June 2018 through May 2019, the defendants and others engaged in a heroin trafficking conspiracy in the areas of Stuyvesant, Hoffman and Highland avenues in Trenton, as well as in the area of Barbary Road in Philadelphia.
Through the interception of telephone calls and text messages pursuant to court-authorized wiretap orders, controlled purchases of heroin, the use of confidential sources of information, and other investigative techniques, law enforcement learned that Robert M. Gbanapolor obtained regular supplies of “bricks” of heroin (approximately 50 smaller, individually packaged glassine envelopes or baggies containing heroin) from Paulino-Escalera, whom Gbanapolor referred to as “Papi.”
Members of the conspiracy distributed the heroin supplied by Paulino-Escalera to other conspirators, distributors, sub-dealers, and end users in and around Trenton. Law enforcement officers intercepted numerous discussions among the conspirators regarding issues such as heroin quality and availability, branding, quantity and customer satisfaction.
The heroin conspiracy counts to which Paulino-Escalera and Alford pleaded guilty each carry a statutory mandatory minimum term of five years in prison, a maximum potential penalty of 40 years in prison, and a maximum fine of $5 million. The heroin conspiracy count to which Young pleaded guilty carries a maximum potential penalty of 20 years in prison, and a maximum fine of $1 million. Sentencings for Paulino-Escalera and Alford are scheduled for May 4, 2020; sentencing for Young is scheduled for May 6, 2020.
U.S. Attorney Carpenito credited special agents of the U.S. Drug Enforcement Administration, New Jersey Division, Camden Resident Office, under the direction of Special Agent in Charge Susan A. Gibson; and task force officers of the Trenton Police Department, under the direction of Police Director Sheilah Coley, with the investigation leading to today’s guilty pleas. He also thanked detectives and officers of the Gloucester County Prosecutor’s Office, under the direction of Prosecutor Charles A. Fiore; detectives and officers of the Gloucester Township Police Department, under the direction of Chief Harry Earle; members of the N.J. State Police, under the direction of Col. Patrick J. Callahan; detectives and officers of the Bordentown Township Police Department, under the direction of Chief Brian Pesce; and special agents of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson for their assistance.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The government is represented by Assistant U.S. Attorneys Eric A. Boden and Michelle S. Gasparian of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations against the remaining eight defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
Sioux Falls Man Charged with Possession with Intent to Distribute a Controlled SubstanceRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for Possession with Intent to Distribute a Controlled Substance.
Dayton Charles Nordstrom, age 30, was indicted on January 7, 2020. He appeared before U.S. Magistrate Judge Veronica L. Duffy on January 16, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $10,000,000 fine, life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about December 9, 2019, Nordstrom possessed with intent to distribute 500 grams or more of a substance containing methamphetamine, which is a Schedule II controlled substance.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The charge is merely an accusation and Nordstrom is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Sioux Falls Area Drug Task Force. Assistant U.S. Attorney Jennifer D. Mammenga is prosecuting the case.
Nordstrom was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Shirley Woman Pleads Guilty to Stealing Social Security BenefitsRead the Press Release
BOSTON – A Shirley woman pleaded guilty today in federal court in Boston to stealing Social Security benefits.
Shirley Daley, 84, pleaded guilty to one count of theft of public funds. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for May 6, 2020. Daley was charged in April 2019.
From June 2005 through December 2017, Daley received Spouse’s/Widow’s Benefits from Social Security using one name and Social Security number, while also receiving Retirement Benefits using a different name and a different Social Security number. When she applied for Retirement Benefits, Daley told the Social Security Administration that she had never been married and that she had never filed for benefits. In fact, Daley had been married and she had been receiving Spouse’s/Widow’s Benefits for four years. From June 2005 through December 2017, Daley stole approximately $319,076 in Social Security benefits.
The charge of theft of public funds provides for a sentence of up to 10 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. 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 and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit prosecuted the case.
Shelton Man to Serve Prison Time for Distributing OxycodoneRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that SALVATORE PERRY, 45, of Shelton, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 30 days of imprisonment, followed by three years of supervised release, for distributing oxycodone. Judge Bolden ordered Perry to serve his first six months of supervised release in home confinement.
According to court documents and statements made in court, between September 2017 and November 2018, law enforcement made five controlled purchases of 30mg oxycodone pills from Perry. Perry sold between 30 and 60 pills each transaction. Perry had obtained the pills from at least two other individuals who had prescriptions for the drugs.
Perry was arrested on December 4, 2018. On that date, investigators searched his residence and seized oxycodone pills, along with Perry’s cell phone, which contained evidence of the drug sales.
On October 24, 2019, Perry pleaded guilty to one count of possession with intent to distribute, and distribution of, oxycodone.
Perry who is released on a $250,000 bond, is required to report to prison on February 7.
This matter was investigated by the Drug Enforcement Administration and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Sarah P. Karwan.