Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
17 January 2020
Greenville Lab Director Sentenced to Prison for Falsifying Lab Results Concerning Water QualityRead the Press Release
OXFORD, Miss.— A Greenville lab operator hired to test water samples to help insure water quality for dozens of towns throughout the Mississippi Delta was sentenced to 18 months in prison on Thursday for submitting false statements and lab results to the Mississippi Department of Environmental Quality. William C. Lamar, U.S. Attorney for the Northern District of Mississippi, together with Charles Carfagno, Acting Special Agent in Charge of the Environmental Protection Agency’s criminal enforcement program in the Southeast, announced the sentence.
John H. Couey, 44, of Greenville was sentenced by Senior U.S. District Judge Glen Davidson, in Oxford following a guilty plea to five felony counts of knowingly making false material statements in documents required to be maintained under the Clean Water Act.
Couey is the owner and lab director of Davis Research, Inc., an environmental analytical laboratory located in Avon, Mississippi. Davis Research performed analytical testing services for more than 100 cities, towns, state and federal agencies, and businesses in the Mississippi Delta. Couey, as lab director, falsified over 1000 laboratory reports that were submitted to the Mississippi Department of Environmental Quality to demonstrate compliance under the Clean Water Act.
Judge Davidson sentenced Couey to 18 months incarceration on each of the five counts of conviction, to run concurrently. Upon release from prison, Couey will be placed on supervised release for a term of one year. Couey is scheduled to report to prison on March 16, 2020.
William C. Lamar, U.S. Attorney for the Northern District of Mississippi, said, “One of our top priorities is to protect the environment from those who would disregard our environmental regulations and laws, placing in jeopardy the well-being of our citizens.”
“The defendant in this case is alleged to have falsified thousands of water test results, including results used to confirm the safety of drinking water,” said Charles Carfagno, acting Special Agent in Charge of EPA’s criminal enforcement program in Mississippi. “This case demonstrates that EPA will hold accountable those who violate laws designed to protect the health and safety of our communities.”
This case was investigated by the Environmental Protection Agency, Criminal Investigation Division, and the Mississippi Department of Environmental Quality. The case was prosecuted by AUSA Robert Mims.
Gerod Woodberry Arrested for Bank RobberyRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging Gerod Woodberry with the robbery of a Chase Bank in downtown Brooklyn on January 10, 2020. Woodberry was arrested today, and will make his initial appearance at the United States Courthouse for the Eastern District of New York on Sunday morning.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the arrest. United States Attorney Donoghue issued a statement today noting some of the facts of the case.
As detailed in court filings, at approximately 5:35 p.m., Woodberry, wearing a baseball cap with a Chicago Bulls logo, entered a Chase Bank branch at 20 Flatbush Avenue and presented a hand-written note to a teller, stating in red ink, “THIS IS A ROBBERY BIG BILLS ONLY NO DYE PACKS.” The teller handed Woodberry approximately $1,000 in U.S. currency, and the defendant fled the bank. In a detention memorandum filed with the court today seeking a Permanent Order of Detention, prosecutors indicated that Woodberry robbed or attempted to rob six New York City banks in 16 days. Those robberies and attempted robberies were committed on December 30, 2019, January 3, 2020, January 6, 2020, January 8, 2020, January 10, 2020 and January 14, 2020. The memorandum further noted that Woodberry was arrested by the NYPD hours after the January 8, 2020 robbery, but that he was released on January 10, 2020 because the crime charged did not qualify for pre-trial detention under New York State law. The memorandum also reported that the January 10, 2020 robbery in Brooklyn was committed less than four hours after his release on the January 8, 2020 arrest.
The charge in the complaint is an allegation, and the defendant is presumed innocent unless and until proven guilty. If convicted, Woodberry faces up to 20 years in federal prison.
The government’s case is being prosecuted by Assistant United States Attorney Jack Dennehy, Senior Litigation Counsel and Director of the Rapid Approach to Strategic Prosecutions in the Office’s Criminal Division.
The Defendant:
GEROD WOODBERRY
Age: 42
Walterboro, South CarolinaE.D.N.Y. Docket No. 20-MJ-52
Georgia man found guilty of drug distribution resulting in deathRead the Press Release
CLARKSBURG, WEST VIRGINIA – After a nine-day trial, a federal jury found Terrick Robinson, of Cartersville, Georgia, guilty of drug distribution resulting in death and a myriad of other charges, U.S. Attorney Bill Powell announced.
After three hours of deliberation, the jury found Robinson, age 35, guilty of one count of “Conspiracy to Possess with the Intent to Distribute and Distribute Controlled Substances,” one count of “Distribution of Methamphetamine,” one count of “Possession with the Intent to Distribute Methamphetamine – Aiding and Abetting,” one count of “Possession with the Intent to Distribute Cocaine Hydrochloride – Aiding and Abetting,” one count of “Possession with the Intent to Distribute Fentanyl – Aiding and Abetting,” one count of “Use of a Firearm During and in relation to a Drug Trafficking Crime – Aiding and Abetting,” one count of “Use and Carry a Firearm During and in Relation to a Drug Trafficking Crime,” and one count of “Distribution of Fentanyl Resulting in Serious Bodily Injury or Death.”During the trial, the jury heard testimony that Robinson distributed trafficked and distributed more than 4.5 kilograms of methamphetamine, as well as cocaine hydrochloride and fentanyl, in Marion County and elsewhere from May 2018 to September 2018. He would travel from Georgia to West Virginia, trafficking the drugs from different motel and hotel rooms and other locations. Robinson and his conspirators carried at least three firearms during the drug trafficking crimes.
At one of the motels in Lewis County on August 9, 2018, Robinson distributed fentanyl to Courtney Dubois of Fairmont, West Virginia. That drug, according to her autopsy, was an independent sufficient cause of Courtney Dubois’ death. The jury heard testimony and saw evidence that Robinson took the body of the victim to Georgia, where he dismembered the body and disposed of it at the Bartow County Landfill.
“This was a horrific crime, involving drugs, guns and death. Though the verdict will not bring back Ms. Dubois, we hope her family gets some closure by the result of this trial and prior guilty pleas in this investigation. The verdict is the result of many hours of excellent work by the prosecution and law enforcement teams. I also want to thank the Georgia authorities who assisted in bringing this defendant to justice,” said Powell.
Robinson faces the following: Conspiracy to Possess with the Intent to Distribute and Distribute Controlled Substances – at least 10 years and up to life incarceration and a fine of up to $10,000,000
Distribution of Methamphetamine - at least 10 and up to life incarceration and a fine of up to $10,000,000
Possession with the Intent to Distribute Methamphetamine – Aiding and Abetting - at least 10 years and up to life incarceration and a fine of up to $10,000,000
Possession with the Intent to Distribute Cocaine Hydrochloride – Aiding and Abetting – up to 20 years incarceration and a fine of up to $1,000,000
Possession with the Intent to Distribute Fentanyl – Aiding and Abetting – at least five years and up to 40 years incarceration and a fine of up to $5,000,000
Use of a Firearm During and in relation to a Drug Trafficking Crime – Aiding and Abetting – at least five years and up to life incarceration and a fine of up to $250,000
Use and Carry a Firearm During and in Relation to a Drug Trafficking Crime – at least five years and up to life incarceration and up to a $250,000 fine
Distribution of Fentanyl Resulting in Serious Bodily Injury or Death – at least 20 years and up to life incarceration and a fine of up to $1,000,000Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Two of the co-conspirators in this case have pled guilty. William Gregory Chappell, age 33, of Cartersville, Georgia, pled guilty to one count of “Conspiracy to Possess with the Intent to Distribute and Distribute Controlled Substances” and one count of “Use and Carry a Firearm During and in Relation to a Drug Trafficking Crime” in February 2019. Joel Jimenez, age 37, also of Cartersville, Georgia, pled guilty to one count of “Conspiracy to Possess with the Intent to Distribute and Distribute Controlled Substances” in October 2019. Both men were a part of the drug distribution operation from Georgia to West Virginia.
Another defendant in this case, Seddrick Damond Banks, age 27, of Cartersville, Georgia, is set to go to trial on March 23, 2020. He is accused of being a part of the drug distribution operation, as well as being an accessory after the fact in Dubois’s death.
Assistant U.S. Attorneys Traci M. Cook and Brandon S. Flower prosecuted the case on behalf of the government. The Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; the Three Rivers Drug & Violent Crimes Task Force; the West Virginia State Police; The Bartow County, Georgia, Sheriff’s Office; the FBI in Rome, Georgia; and the Georgia Bureau of Investigation investigated.
U.S. District Judge Thomas S. Kleeh presided.
Franklin man sentenced to 15 years in federal prison for charges involving child pornographyRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today that Gary Ryan Dismore, 42, of Franklin, Ind., was sentenced in federal court, by U.S. District Judge Sarah Evans Barker, to 15 years’ in federal prison, after having previously pleaded guilty to charges of advertising, distributing, receiving, and possessing child pornography.
“Individuals who choose to sexually exploit and prey on innocent children will be prosecuted to the full extent under federal law,” said Minkler. “The U.S. Attorney’s Office is committed to safeguarding children against child predators, like Dismore.”
In Nov. of 2017, the Indiana State Police received a Cyber Tip from the National Center for Missing and Exploited Children (NCMEC) concerning alleged illegal activities of an unidentified subject. According to the Cyber Tip, a user uploaded 157 videos to a Drobox account. The files uploaded to the Dropbox account contained videos of child pornography. In response to a search warrant executed by law enforcement, Dropbox provided a USB Drive, which contained child pornography files. The email address associated with the Dropbox account was later linked to Dismore.
On July 23, 2018, a search warrant was executed at the Franklin residence of Dismore. During the search, officers seized a Samsung cell phone, three USB thumb drives, three laptops, and an iPod. Dismore admitted that the devices were used solely by him. During a forensic examination of the digital media devices, officers discovered digital files depicting children under the age of 12, in addition to images of children over the age of 12, but under 18, that constitute child pornography. Forensic examiners noted there were two videos and 100 pictures of child pornography including images of toddlers on the Memorex 2GB Thumb Drive. Forensic examiners noted approximately 200 images of child pornography, including images or videos depicting acts of bondage and victims as young as toddler age on the PNY Attaché 512 MB Thumb Drive. Forensic examiners noted that there were approximately 30 child pornography videos located on the black HP laptop. Forensic examiners noted approximately 70 child pornography images located on the iPod. Forensic examiners noted 10,165 files and 172 folders, the majority of which contained child pornography on the Memorex USB. Forensic examiners noted approximately 1650 images and videos, of primarily child pornography, were contained on the Samsung Galaxy S6.
Dismore was also discovered to be an owner, administrator, and member of several private chat groups, using a popular online application. Dismore’s chat groups were dedicated to the trafficking of child pornography and related discussions. Examiners discovered that Dismore used his Samsung cell phone to exchange child pornography and to provide links to his Dropbox and Mega Cloud storage accounts to other users, which contained large collections of child pornography. Dismore tailored links to his child pornography collections based on each group member’s specific sexual interest. Dismore has been sharing his large volumes of child pornography since at least 2007.
This case was investigated by the Federal Bureau of Investigation and the Indiana State Police.
“The message here is clear - you may think sitting behind a computer in your home will provide anonymity and heinous activity such as this won’t be detected - but the FBI and our law enforcement partners will use every technique and tool at our disposal to identify you and put a stop to this deplorable activity,” said Special Agent in Charge Grant Mendenhall, FBI Indianapolis. “Protecting the most innocent of Hoosier victims – our children - is a top priority, and you will be held accountable.”
“Indiana State Police investigators work diligently every day, all across Indiana, and in close collaboration with its law enforcement partners, to bring to justice those who seek to capitalize on the victimization of children,” said Indiana State Police Superintendent Douglas G. Carter.
According to Assistant U.S. Attorney Tiffany J. Preston, who prosecuted this case for the government, Dismore will serve 10 years’ supervised release following his prison sentence.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the office’s firm commitment to utilize and partner with law enforcement agencies to prosecute individuals engaged in the sexual exploitation of children. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 4.1.
Former VA Pharmacist Found Guilty of Stealing Controlled Drugs from Veterans' PrescriptionsRead the Press Release
SHREVEPORT, La. – A licensed pharmacist, who was formerly employed with the Overton Brooks VA Medical Center (VAMC) in Shreveport, was found guilty today by a federal jury for stealing controlled substances from mail-out prescriptions, announced United States Attorney David C. Joseph.
Following a one-week trial and four hours of deliberations, Melissa W. Richardson, 44, of Shreveport, was found guilty of 15 counts of acquiring a controlled substance by fraud.
According to evidence presented at trial, on June 9, 2017, Richardson, a licensed pharmacist employed at the VAMC, stole various quantities of Hydrocodone out of individual prescription bottles as she verified mail-out prescriptions meant for veterans. The prescriptions at issue had been prepared by a pharmacy technician and were awaiting a second count and verification from Richardson. Video surveillance from inside the VAMC controlled substances vault showed Richardson slipping the pills into her pocket as she counted the prescriptions. In multiple instances, she slipped pills into her pocket before the pills were counted. Video footage showed her then verify that the prescription was correct in the VAMC’s computer system, seal the bottle, place it in a sealed envelope, and drop it in a bin for mail-out. When federal agents confronted Richardson, she had 236 loose pills in her pocket.
The U.S. Department of Veterans Affairs, Office of Inspector General, conducted the investigation. Assistant U.S. Attorney Brian C. Flanagan and Supervisory Assistant U.S. Attorney Allison D. Bushnell are prosecuting the case.
# # #
Former Spa Owner Charged for Payment and Shipment of Prescription Drugs Received from Unauthorized SourcesRead the Press Release
A woman who operated a Tulsa spa was indicted this week on charges related to the use of prescription drugs purchased from unauthorized sources from November 2012 to April 2018, announced U.S. Attorney Trent Shores.
A federal grand jury returned the indictment charging Elisa Kaye Sanders, 60, of Tulsa, with two counts of mail fraud and 13 counts of wire fraud.
Sanders was a majority owner and operator of L’Chaim Medical Spa, previously known as Enhance Skin and Body Medical Spa. Sanders participated in and oversaw the spa’s purchase, receipt, holding, and administration of drugs and devices used for the treatment of clients, including Botox and Juvederm.
According to the indictment, Sanders defrauded clients seeking treatment from her spa; her staff; and state and federal regulatory agencies responsible for the oversight of the spa. Sanders is alleged to have obtained Botox and Juvederm Ultra 3 and 4 from unauthorized sources who diverted it from the legitimate prescription drug supply chain. The indictment alleges the defendant failed to advise her clients of the sources of the prescription drugs and devices used at the spa.
“A federal grand jury indicted Ms. Sanders for her alleged criminal actions associated with the administration of drugs, like Botox and Juvederm,” said U.S. Attorney Trent Shores. “This United States Attorney’s Office will continue to pursue cases against healthcare providers who skirt FDA regulations developed to ensure the safety of individuals receiving prescription drug treatments.”
In September 2016, Sanders was advised by Food and Drug Administration representatives that purchasing prescription drugs and devices from unauthorized sources was illegal, but soon after, she continued to purchase the prescription drugs from unauthorized sources. From October 2016 to May 2018, Sanders sold approximately 30,000 units of Botox. Approximately 3,000 of those units were purchased from the unauthorized sources.
In count one of the indictment, Sanders is charged with mail fraud. She is alleged to have purchased Botox in 2015 from an unauthorized source in Mumbai, India, which was then shipped to Tulsa. When purchasing the drug, Sanders claimed it was for her own use. The indictment alleges that Sanders actually used the drug on spa clients.
In count two, Sanders is also charged with mail fraud for sending altered medical records to a client’s physician. The records were altered to show that Juvederm Ultra Plus XC had been administered to the client when, in fact, Juvederm Ultra 4 was administered. Juvederm Ultra 3 and 4 are not approved by the Food and Drug Administration for use in the United States.
In counts three through ten of the indictment, Sanders is charged with wire fraud related to eight payments made by customers for the Botox and Juvederm received from unauthorized sources.
Finally, in counts eleven through fifteen, Sanders is charged with wire fraud related to five payments made to Global Health for the purchase of Botox from unauthorized sources. Shortly after the Food and Drug Administration representative’s warning in 2016, Sanders allegedly directed an individual to purchase the Botox from unauthorized sources and have the drug mailed to the individual’s business. Sanders would later pick up the drug and reimburse the individual with cash.
Sanders faces a maximum of twenty years in prison, a $250,000 fine, and a maximum of three years of supervised release for each count of mail fraud and wire fraud.
The Food and Drug Administration, Office of Criminal Investigations conducted the investigation. Assistant U.S. Attorneys Shannon Cozzoni and Scott Proctor are prosecuting the case.
Former San Angelo Police Chief Indicted for BriberyRead the Press Release
A federal grand jury has indicted San Angelo’s former Chief of Police for public corruption following an investigation by the FBI Dallas Field Office, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Timothy Ray Vasquez, 49, was charged Wednesday with one count of receipt of a bribe by an agent of an organization receiving federal funds and three counts of honest services mail fraud.
“We must insist that law enforcement leaders personify integrity,” said U.S. Attorney Nealy Cox. “Former Chief Vasquez abused his office for personal financial gain. We are determined to root out corruption wherever we find it. Public officials cannot be allowed to violate their sacred trusts.”
“The defendant manipulated a government procurement process to personally profit for years. This abuse of power affected a system that is supposed to be fair and unbiased,” said FBI Special Agent in Charge of the Dallas Field Office Matthew J. DeSarno. “Public corruption is one of the FBI’s top investigative priorities. We will continue to hold elected officials accountable for violating the trust of their constituents.”
Mr. Vasquez – who was elected Chief of Police in 2004, then reelected in 2008 and 2012 – made his initial appearance in federal court Friday afternoon.
According to the indictment, Mr. Vasquez allegedly used his official position to help a radio system vendor land two government contracts worth more than $11 million. In return, the vendor and its affiliates allegedly funneled him and his band, “Funky Munky,” more than $130,000.
Per the indictment, in February 2007, the City of San Angelo solicited bids for a new radio system for first responders, including the police department. Three vendors submitted bids.
Mr. Vasquez allegedly asked one of the vendors for a vacation trip, but was rebuffed.
In April, Mr. Vasquez recommended the city award the $5.6 million contract to a different vendor, identified in the indictment as “Vendor 1,” who was eventually selected for the contract.
Three months later, in July, Juniper Valley, L.P., an affiliate of Vendor 1, cut a $10,000 check to “Funky Munky Band.” Mr. Vasquez deposited the funds into his personal checking account.
For the next eight years, Mr. Vasquez received yearly payments of approximately $8,000 from Vendor 1 and its affiliates, Juniper Valley and Trixie & Fini, either made out to Mr. Vasquez or his band.
By 2015, Mr. Vasquez and Funky Money had collected more than $84,000, including $38,200 the defendant deposited directly into his personal bank account and $29,800 he withdrew in cash.
However, seven years after the original contract was awarded, the radio technology provided by Vendor 1 was “phased out.” In an email with city employees, Mr. Vasquez indicated he wanted to “use the same vendor” for the new equipment, and urged the City Manager to support Vendor 1. In another email with a city employee, he discussed an exemption from the competitive bidding process that would allow San Angelo to award the contract to Vendor 1.
Following a presentation made by then-Chief Vasquez and another employee, San Angelo awarded a new $5.7 million contract to Vendor 1 in June 2015.
Six months later, Vendor 1 wrote a check to “Funky Munky,” noting “Timothy R. Vasquez” in the check’s memo section. A few days later, Mr. Vasquez endorsed the $50,000 check and deposited the entire amount into his personal bank account.
In total, Mr. Vasquez and Funky Munky received at least $134,000 from Vendor 1 and its affiliates, including at least $88,200 he deposited into his personal bank account and $29,800 he withdrew in cash.
Funky Munky’s typical fee to play at an event runs from $1,000 - $3,000.
An indictment is a formal accusation of criminal conduct, not evidence, and the defendant is presumed innocent until proven guilty in a court of law.
If convicted, Mr. Vasquez faces up to 70 years in federal person.
The Federal Bureau of Investigation and the Texas Rangers, with the full cooperation of the San Angelo Police Department and the City of San Angelo, conducted the investigation. Assistant U.S. Attorneys Jeff Haag and Chad Meacham are prosecuting the case.
Former Mississippi Corrections Officer Sentenced to Prison for Excessive ForceRead the Press Release
Shelley Griffith, 29, a former Mississippi Department of Corrections (MDOC) officer, was sentenced today in Jackson, Mississippi, by Chief U.S. District Judge Daniel P. Jordan II of the Southern District of Mississippi to serve 70 months in prison for her role in assaulting an inmate at the Central Mississippi Correctional Facility (CMCF) in Rankin County, Mississippi.
Griffith pled guilty on Dec. 14, 2017, to violating the civil rights of an inmate by using excessive force against him.
“This type of behavior is unacceptable and will not be tolerated by the Department of Justice,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Civil Rights Division is committed to prosecuting those who violate the civil rights of others.”
“Violating a person’s civil rights, whether the person is incarcerated or not, is a serious offense and only damages the already delicate relationship between corrections officers and inmates,” said Special Agent in Charge Michelle A. Sutphin of the FBI’s Jackson Division. “The FBI will continue working with our partner agencies to investigate violations of civil rights within Mississippi prisons.”
According to the Criminal Information, on May 25, 2016, Griffith assaulted the inmate, identified as “L.H.,” by kicking, punching, and stomping on him. Griffith’s assault resulted in bodily injury to “L.H.” and involved the use of a dangerous weapon. At the time of the incident, Griffith was working as a corrections officer at CMCF in Rankin County, Mississippi.
Two other former MDOC officers, Reginald Brown and Sharalyn McClain, have pled guilty to violating the civil rights of “L.H.” based on their own conduct during the assault. Brown was sentenced to a term of imprisonment of 60 months. McClain will be sentenced on March 20, 2020.
This case was investigated by the FBI’s Jackson, Mississippi, Field Office. Special Litigation Counsel Julia Gegenheimer and Trial Attorneys Cameron Bell and Mary J. Hahn of the Department of Justice Civil Rights Division and Assistant U.S. Attorney Glenda Haynes of Southern District of Mississippi prosecuted the case.
Former Mississippi Corrections Officer Sentenced to Prison for Excessive ForceRead the Press Release
Shelley Griffith, 29, a former Mississippi Department of Corrections (MDOC) officer, was sentenced today in Jackson, Mississippi, by Chief U.S. District Judge Daniel P. Jordan II of the Southern District of Mississippi to serve 70 months in prison for her role in assaulting an inmate at the Central Mississippi Correctional Facility (CMCF) in Rankin County, Mississippi.
Griffith pled guilty on Dec. 14, 2017, to violating the civil rights of an inmate by using excessive force against him.
“This type of behavior is unacceptable and will not be tolerated by the Department of Justice,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Civil Rights Division is committed to prosecuting those who violate the civil rights of others.”
“Violating a person’s civil rights, whether the person is incarcerated or not, is a serious offense and only damages the already delicate relationship between corrections officers and inmates,” said Special Agent in Charge Michelle A. Sutphin of the FBI’s Jackson Division. “The FBI will continue working with our partner agencies to investigate violations of civil rights within Mississippi prisons.”
According to the Criminal Information, on May 25, 2016, Griffith assaulted the inmate, identified as “L.H.,” by kicking, punching, and stomping on him. Griffith’s assault resulted in bodily injury to “L.H.” and involved the use of a dangerous weapon. At the time of the incident, Griffith was working as a corrections officer at CMCF in Rankin County, Mississippi.
Two other former MDOC officers, Reginald Brown and Sharalyn McClain, have pled guilty to violating the civil rights of “L.H.” based on their own conduct during the assault. Brown was sentenced to a term of imprisonment of 60 months. McClain will be sentenced on March 20, 2020.
This case was investigated by the FBI’s Jackson, Mississippi, Field Office. Special Litigation Counsel Julia Gegenheimer and Trial Attorneys Cameron Bell and Mary J. Hahn of the Department of Justice Civil Rights Division and Assistant U.S. Attorney Glenda Haynes of Southern District of Mississippi prosecuted the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Former Executive Director of Non-Profit Sentenced for EmbezzlementRead the Press Release
Donna Carman, 60, of Indiantown, Florida, was sentenced today for embezzling federal funds for her own personal profit.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Teri Donaldson, Inspector General, U.S. Department of Energy, Office of the Inspector General (DOE-OIG), Tyrone Hardy, Acting Special Agent in Charge of the Southeast Caribbean Region, U.S. Department of Housing and Urban Development, Office of the Inspector General (HUD-OIG), and Scott McInerney, Director, Florida Department of Law Enforcement (FDLE) made the announcement.
According to the court record, beginning as early as August 21, 2014, Carman began siphoning funds from Indiantown Nonprofit Housing, Inc. (“Indiantown”), a Florida not-for-profit corporation, for her own personal use, including repairs and upgrades made to a rental property she owned in Martin County, and unauthorized purchases on Indiantown’s American Express credit card. Indiantown provides affordable housing and community, social, and economic development opportunities for low and moderate income residents in Martin County. Indiantown applied for and received funds through various federal programs. Carman was the Executive Director for Indiantown in 2013, 2014, and 2015. As the Executive Director, Carman was authorized to use an American Express credit card bearing her name and issued to Indiantown for business-related purchases. Carman used the Indiantown American Express credit card on several occasions to purchases goods and services for herself and others unrelated to Indiantown’s mission. In total, Carman embezzled and converted to her own use at least $50,000.00 from Indiantown between January 2013 and September 2015.
After having previously pled guilty to committing a theft from an organization receiving federal funds, Carman was sentenced by U.S. District Judge Jose E. Martinez to 5 years of probation (to include 360 days of home confinement) (Case No. 19-CR-14039). She was also ordered to pay $50,000 in restitution and a $10,000 fine.
U.S. Attorney Fajardo Orshan commended the investigative efforts of DOE-OIG, HUD-OIG, and FDLE in this matter. This case was prosecuted by Assistant U.S. Attorney Michael D. Porter.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Former Congressman Christopher Collins Sentenced for Insider Trading Scheme and Lying to Federal Law Enforcement AgentsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that CHRISTOPHER COLLINS, who represented the 27th District of New York as a member of the U.S. House of Representatives, was sentenced to 26 months in prison today by U.S. District Judge Vernon S. Broderick for participating in a scheme to commit insider trading and for making false statements to federal law enforcement agents when interviewed about his conduct.
U.S. Attorney Geoffrey S. Berman said: “Former New York Congressman and Innate board member Christopher Collins received confidential, nonpublic information that one of Innate’s drugs in development had just failed a clinical trial. Moments later, from the White House lawn, Collins notified his son Cameron, so that he could trade the stock ahead of the public announcement and avoid taking a substantial loss on the stock. He then lied to the FBI when asked about his conduct. Collins’s greed and disregard for the law have now led to a criminal conviction for insider trading and lying to the FBI, his resignation from Congress, and over two years in federal prison. Lawmakers bear the profound privilege and responsibility of writing and passing laws, but equally as important, the absolute obligation of following them. Collins’s hubris is a stark reminder that the people of New York can and should demand more from their elected officials, and that no matter how powerful, no lawmaker is above the law.”
The following facts are based on the allegations contained in the Superseding Indictment and statements made in related court filings and proceedings:
The Insider Trading Scheme
The Scheme
In or about June 2017, CHRISTOPHER COLLINS, who, in addition to serving on the board of directors of Innate Immunotherapeutics (“Innate”), an Australian biotechnology company, was also one of Innate’s largest shareholders, participated in a scheme to commit insider trading. Specifically, on or about June 22, 2017, CHRISTOPHER COLLINS learned that MIS416 – a multiple sclerosis drug that Innate was developing – had failed a critical drug trial that was meant to determine the drug’s clinical efficacy (the “Drug Trial”). The negative Drug Trial results were highly confidential, and, as an insider who owed duties of trust and confidence to Innate, CHRISTOPHER COLLINS was obligated to keep the Drug Trial results secret until Innate publicly released them. Instead, in breach of those duties, CHRISTOPHER COLLINS tipped his son, Cameron Collins, who was also a substantial Innate shareholder, so that Cameron Collins could make timely trades and tip others before Innate publicly released the Drug Trial results. Cameron Collins traded on the inside information and passed it to Stephen Zarsky, the father of his fiancée, as well as to three individuals not named in the Superseding Indictment (“Individual-1,” “Individual-2,” and “Individual-6”), so that they could utilize the information for the same purpose. Zarsky, in turn, traded on the information and used it to tip three more individuals not named in the Superseding Indictment (“Individual-3,” “Individual-4,” and “Individual-5,”) so that they too could engage in timely trades in Innate stock. All of the trades preceded the public release of the negative Drug Trial results.
In total, these trades allowed Cameron Collins and Zarsky, and Individual-1 through Individual-6, to avoid over $768,000 in losses that they would have otherwise incurred if they had sold their stock in Innate after the Drug Trial results became public.
The Drug Trial Results
In or about October 2014, Innate initiated a Phase 2B clinical trial of its primary drug, MIS416. Successful completion of the Drug Trial was a necessary prerequisite to the commercialization of MIS416. Because Innate had no other significant products in development, its stock price was tied to the success of MIS416.
The Drug Trial was widely expected to be completed around the summer of 2017. For example, on or about June 9, 2017, Innate’s chief executive officer (“CEO”) sent various individuals, including CHRISTOPHER COLLINS, an email stating that “the delivery date for [the] review and ‘verdict’” of the Drug Trial “will [] occur at COB on US Thursday June 22nd.” As the summer progressed, individuals within Innate remained optimistic that MIS416’s Drug Trial results would be positive. The initial Drug Trial results were made available by trial administrators to Innate’s CEO on June 22, 2017. These results established that MIS416 lacked therapeutic value in the treatment of multiple sclerosis. The results were not publicly released at that time. Instead, they were released publicly on June 26, 2017, after the U.S. markets had closed (the “Public Announcement”). Innate’s stock price subsequently crashed, dropping 92% on the first trading day following the Public Announcement.
Dissemination of the Drug Trial Results
On or about June 22, 2017, at approximately 6:55 p.m., Innate’s CEO sent an email describing the Drug Trial results to the company’s board of directors, including CHRISTOPHER COLLINS. The email explained to Innate’s board of directors for the first time that the Drug Trial had been a failure. The email began, in part, “I have bad news to report,” and continued to explain that “the top line analysis of the ‘intent to treat’ patient population (ie every subject who was successfully enrolled in the study) would pretty clearly indicate[s] ‘clinical failure.’” The email continued, “Top-line 12-month data . . . show no clinically meaningful or statistically significant differences in [outcomes] between MIS416 and placebo,” and concluded by stating, “No doubt we will want to consider this extremely bad news . . . .”
At the time CHRISTOPHER COLLINS received this email, he was attending the Congressional Picnic at the White House. At 7:10 p.m., CHRISTOPHER COLLINS replied to the email, stating, in part, “Wow. Makes no sense. How are these results even possible???” After responding to the Innate CEO’s email, CHRISTOPHER COLLINS called his son, Cameron Collins. They traded six missed calls between 7:11 p.m. and 7:15 p.m. At 7:16 p.m., CHRISTOPHER COLLINS and Cameron Collins spoke for more than six minutes. During that six-minute phone call, CHRISTOPHER COLLINS told Cameron Collins, in sum and substance, that MIS416 had failed the Drug Trial.
Trading and Tipping by CAMERON COLLINS and ZARSKY
Cameron Collins began placing orders to sell his Innate shares the morning after he received inside information from CHRISTOPHER COLLINS. Between the morning of Friday, June 23, 2017, and the close of the market on Monday, June 26, 2017, Cameron Collins sold approximately 1,391,500 shares of Innate stock. These sales allowed Cameron Collins to avoid approximately $570,900 in losses.
Furthermore, after learning the Drug Trial results from CHRISTOPHER COLLINS, on or about the night of June 22, 2017, Cameron Collins provided the Drug Trial results to at least the following three sets of individuals so that they could trade in advance of the Public Announcement: (1) his fiancée, Individual-1; (2) Zarsky and Zarsky’s wife, Individual-2; and (3) Cameron Collins’s friend, Individual-6. Collectively, these individuals avoided approximately $186,620 in losses as a result of their trading on inside information.
On or about the morning of June 23, 2017, Zarsky provided the negative Drug Trial results that he had learned from Cameron Collins and Individual-1 to at least the following individuals, among others, or otherwise caused them to trade or attempt to trade in advance of the Public Announcement: (1) his brother, Individual-3; (2) his sister, Individual-4; and (3) his longstanding friend, Individual-5. Collectively, these individuals avoided approximately $10,900 in losses as a result of their trading on inside information.
False Statements to the FBI
On or about April 25, 2018, special agents from the Federal Bureau of Investigation (“FBI”) separately interviewed CHRISTOPHER COLLINS, Cameron Collins and Zarsky. During these interviews, and as detailed in the Superseding Indictment, CHRISTOPHER COLLINS, Cameron Collins and Zarsky made false statements to the FBI to cover up their participation in the insider trading scheme.
* * *
In addition to the prison term, CHRISTOPHER COLLINS was sentenced to one year of supervised release and ordered to pay a fine of $200,000.
Mr. Berman praised the outstanding work of the FBI and thanked the U.S. Securities and Exchange Commission for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Scott Hartman, Max Nicholas, and Damian Williams are in charge of the prosecution.
Former Commander of Naval Station Guantanamo Bay Convicted of Obstructing Justice in Connection with Civilian DeathRead the Press Release
A former Commander of Naval Station Guantanamo Bay (GTMO) was convicted by a federal jury today of obstructing justice and making false statements, among other charges, in connection with the death of a civilian at the naval base.
John Nettleton, 54, of Jacksonville, Florida, was convicted of obstructing justice, concealing information, falsifying records and making false statements, all related to his actions during the Navy’s investigation of the death of Christopher M. Tur, the Loss Prevention Safety Manager at GTMO’s Naval Exchange. A sentencing date has not been scheduled.
“Captain Nettleton dishonored his oath and impeded the investigation into a civilian's tragic death, preventing much needed closure for the family and friends of the deceased," said Assistant Attorney General Brian A. Benczkowski of the Justice Department's Criminal Division. “Today's verdict demonstrates the department's steadfast commitment to holding accountable those who abuse their positions of public trust and obstruct justice.”
“By deliberately misleading NCIS during the investigation into the tragic death of Mr. Tur, Captain Nettleton delayed justice and wasted valuable Department of the Navy resources,” said Special Agent in Charge Matthew Lascell of the Naval Criminal Investigative Service’s (NCIS) Southeast Field Office. “NCIS is dedicated to holding those who unlawfully impede investigations accountable for their actions.”
Tur, 42, was found drowned in the waters of Guantanamo Bay on Jan. 11, 2015. An autopsy revealed that Tur had suffered injuries prior to his drowning. At the time of Tur’s death, Nettleton was the Commanding Officer of GTMO. Nettleton was indicted in January 2019.
According to the evidence at trial, Tur confronted Nettleton at a party at the GTMO Officers’ Club on Jan. 9, 2015, with allegations that Nettleton and Tur’s spouse had engaged in an extramarital affair. Later that same evening, Tur went to Nettleton’s residence and a physical altercation ensued that left Tur injured. Tur was reported missing on Jan. 10, 2015, by other residents of GTMO. Nettleton also did not report that Tur had accused him of the extramarital affair, that Nettleton and Tur had engaged in a physical altercation at Nettleton’s residence, or that Tur had been injured. Nettleton persisted in concealment and false statements as the search for Tur continued and then during the investigation into the circumstances of his death.
The Naval Criminal Investigative Service investigated the case. Deputy Chief Todd Gee and Trial Attorney Peter M. Nothstein of the Criminal Division’s Public Integrity Section prosecuted the case. Former Public Integrity Section Trial Attorney Mark Cipolletti also assisted in the investigation.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Former Bank Employee and Two Others Arrested for Involvement in Procurement Kickback SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a criminal complaint charging RICHARD WONG, GABRIELA BRATKOVICS, and EVAN BROWN with honest services wire fraud, bank fraud, bribery of a financial institution employee, and conspiracy, for their role in a kickback scheme designed to compensate WONG, an employee of a large financial institution, for ensuring that his employer continued to utilize the services of the information technology staffing company controlled by BRATKOVICS and BROWN. WONG was arrested yesterday and presented before United States Magistrate Judge Katharine H. Parker. BRATKOVICS and BROWN were arrested today and are expected to be presented before Magistrate Judge Parker this afternoon.
According to the allegations in the Complaint[1] unsealed yesterday in Manhattan federal court:
From 2011 through July 2018, WONG worked for a large financial institution (“Bank-1”) in procurement and was responsible for, among other things, managing relationships with certain vendors, negotiating contracts, reviewing requests for proposals, and requesting quotes for services. Beginning in 2013, WONG was responsible for supervising Bank-1’s relationship with a company that provides temporary information technology staffing to corporate clients (“Company-1”). BRATKOVICS and BROWN are the co-founders of Company-1; BRATKOVICS is the chief executive officer of Company-1, and BROWN is the chief financial officer of Company-1.
Between in or about July 2013 and in or about December 2018, Bank-1 paid Company-1 in excess of $8.4 million for IT staffing services. Between in or about January 2014 and in or about December 2018, BRATKOVICS and BROWN, acting on behalf of Company-1, caused approximately $891,000 to be transferred to WONG, in the form of cash, checks, and wire transfers; these payments were kickbacks, designed to compensate WONG for assisting Company-1 in securing Bank-1’s business and providing Company-1 with information about Bank-1’s procurement process. Indeed, the total amount of each kickback payment was tied to the number of hours of Company-1’s services Bank-1 utilized during a particular time period, typically each month.
WONG, BRATKOVICS, and BROWN began discussing possible kickbacks approximately three months after Company-1 began providing services to Bank-1. On or about October 8, 2013, WONG sent an email to BROWN, writing, in substance and in part, “Send me your spreadsheet on the 5 resources I gotten for you. . . . And your proposal. . . . Let’s get on the same page[.]” Approximately two months later, on or about December 9, 2013, WONG emailed BROWN, copying BRATKOVICS, writing, in substance and in part, “Can you guys send me what you have so I can see the data . . . not saying I will want the money now . . . but want to see how it looks likes [sic][.]”
On multiple occasions, beginning in or about January 2014, BRATKOVICS, BROWN, and WONG exchanged emails discussing spreadsheets that appear to detail the names and hours worked by Company-1 staffers at Bank 1 for specified time periods. At the bottom of the spreadsheets was a calculation that appears to determine how much Company-1 is to pay WONG in kickbacks for that period. Throughout the period in which WONG was receiving kickbacks from Bank-1, Company-1 not only continued to provide services to Bank-1, but WONG also repeatedly provided BRATKOVICS and BROWN with information about Bank-1’s internal discussions regarding use of Company-1’s services by blind carbon copying them on emails.
On or about April 30, 2018, WONG was notified by Bank-1 that his position had been eliminated. Bank-1 continued to employ the services of Company-1 until in or about December 2018. WONG continued to receive payments from accounts controlled by BRATKOVICS and Company-1 even after his employment was terminated, until in or about December 2018.
* * *
A chart containing the names, charges, and maximum and minimum penalties for the defendants is set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the FBI in this case.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Katherine Reilly and Dina McLeod are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Florence Resident Sentenced to Federal Prison for Committing Tax Fraud While Operating a Tax Preparer BusinessRead the Press Release
Florence, South Carolina ---- Acting United States Attorney A. Lance Crick announced today that Donna Faye Shird, 41, of Florence, was sentenced to federal prison after pleading guilty to conspiracy to aid in the preparation and filing of false federal income tax returns.
The evidence presented at the guilty plea hearing established that Donna, and her codefendant Felicia Shird, operated a business known as Donna’s Income Tax Service, which provided tax preparation and filing services for customers. During the period from 2012 and 2017, both Donna and Felicia began routinely adding fictitious information to the personal tax returns of customers in order to artificially increase the amount of tax refund the customers would receive from the IRS. Investigators discovered that customers of Donna’s Income Tax Service provided correct tax related information to the Shirds with the expectation that they would accurately prepare and file the returns for the customers. Instead, the Shirds would create returns which falsely claimed deductions, credits, exemptions and other tax benefits to which the taxpayers were not entitled. Falsely claimed items included child and dependent care credits, business profits and losses, education credits, residential energy credits, and earned income credits. As a result, customers received fraudulently inflated tax refunds and Donna’s Income Tax Service attracted more customers based on their reputation for producing such large refunds. The illegal operations of Donna’s Income Tax Service, and the fraudulent conduct by the Shirds, resulted in a significant loss of tax revenue for the United States Government.
Chief United States District Judge R. Bryan Harwell sentenced Shird to 18 months in federal prison, to be followed by three years of court-ordered supervision. There is no parole in the federal system.
The case was investigated by agents of the Internal Revenue Service. Assistant United States Attorney A. Bradley Parham of the Florence office is prosecuting the case.
#####
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.
Federal Judge Sentences Six Individuals for Marijuana ConspiracyRead the Press Release
Jacksonville, FL – U.S. District Judge Marcia Morales Howard has sentenced six individuals in connection with a conspiracy to distribute marijuana and, with respect to four of the defendants, conspiracy to commit money laundering. Bao The Khuong (47, San Jose, CA) was sentenced to 5 years in federal prison, Hai Phi Tran (28, Jacksonville) was sentenced to 3 years in federal prison, Tantai Vo (30, Jacksonville) was sentenced to 26 months in federal prison, Phuc Nguyen Hoang (28, Jacksonville) was sentenced to 23 months in federal prison, Ray Thomas Balintucas (31, Jacksonville) was sentenced to 20 months in federal prison, and Hoi Nguyen (38, Orlando) was sentenced to 16 months in federal prison. Tantai Vo was also sentenced for the unlawful possession of a firearm and was ordered to forfeit his firearm and ammunition. In addition, Khuong was ordered to forfeit at least $1 million in proceeds, and Tran was ordered to forfeit assets of up to $500,000, all of which are traceable to proceeds of the offenses.
All of the defendants had previously pleaded guilty.
According to court documents, beginning as early as April 2014, Khuong served as the source of supply for marijuana from California to Jacksonville. He received approximately $30,000 in marijuana proceeds from Tran, and Tran’s associates in Jacksonville, several times a week for at least 18 months. Hoang assisted Khuong and Tran in moving marijuana and marijuana proceeds between California and Jacksonville, and with packaging marijuana in California for shipment to Tran in Jacksonville. Khuong also supplied Vo with marijuana from California, which he sent to Vo in Jacksonville. Nguyen served as a secondary source of supply of marijuana to Vo. Vo sold at least 700 pounds of marijuana to Balintucas during the course of the conspiracy. At the time of Vo’s arrest, he was delivering 4 pounds of marijuana to Balintucas, and was carrying a loaded 9mm semi-automatic pistol.
“This sentencing is another example of how strong law enforcement partnerships impacted both violence and drug trafficking in our continued efforts to protect the public,” said ATF Special Agent in Charge Daryl McCrary. “Being one of the cornerstones of our Project Safe Neighborhoods Initiative, our strong law enforcement partnerships continue to mitigate nefarious individuals from committing further acts of drug trafficking and violence in communities.”
“Dismantling this organization is a big win for the people of Northern Florida,” stated Special Agent in Charge Mary Hammond of IRS Criminal Investigation’s Tampa Field Office. “This case took drugs, guns, and dirty money off our streets and out of the hands of criminals. We take our commitment to fighting narcotics and related financial crimes seriously, and we will continue to work with our law enforcement partners to track down and prosecute offenders.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the U.S. Marshals Service, Homeland Security Investigations, and the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorneys Kelly S. Karase and Bonnie Glober.
Federal Grand Jury Indicts Man for Attempted Bank Robbery and Bank RobberyRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced that BERNELL BREAUX, age 57, a resident of New Orleans, Louisiana, was charged in a two-count indictment by a Federal Grand Jury for attempted bank robbery of a Gulf Coast Bank and Trust Company branch and for bank robbery at a Capital One Bank branch.
According to court documents, on or about January 2, 2020, in the Eastern District of Louisiana, BREAUX attempted to rob a Gulf Coast Bank and Trust Company branch in violation of Title 18, United States Code, Section 2113(a). Additionally, on or about January 2, 2020, in the Eastern District of Louisiana BREAUX robbed a Capital One Bank branch of approximately $302.00 in violation of Title 18, United States Code, Section 2113(a).
If convicted, BREAUX faces a maximum term of imprisonment of twenty (20) years, a (3) year period of supervised release and a maximum fine of $250,000 for each count.
U. S. Attorney Strasser reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation’s Violent Crime Task Force. Assistant U.S. Attorney Jesse Eshkol is in charge of the prosecution.
Federal Grand Jury Indictments AnnouncedRead the Press Release
United States Attorney Trent Shores announced today the results of the January Federal Grand Jury A.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Rodney Lavvone Burton. Felon in Possession of Firearm and Ammunition (Superseding Indictment). Burton, 44, of Broken Arrow, is charged with two counts of being a felon in possession of a Colt .357 revolver and 26 rounds of associated ammunition. The Tulsa Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
Christopher Scott Cole. Aggravated Assault of Federal Officer Resulting in Bodily Injury; Assault Within Territorial Jurisdiction Resulting in Serious Bodily Injury. Cole, 41, of Pryor, is charged with assaulting a federal officer and causing bodily harm. The crime took place at Claremore Indian Hospital. The FBI is the investigative agency.
Luis Eduardo Garcia and Gustavo Garcia. Possession of Methamphetamine With Intent to Distribute. Luis Garcia, 30, and Gustavo Garcia, 22, both of Tahlequah, are charged with possessing with the intent to distribute 500 grams or more a methamphetamine. The Bureau of Alcohol, Tobacco, Firearms and Explosives is the investigative agency.
Regina Faye Holmes. Carjacking. Holmes, 38, of Miami, is charged with taking a 2001 Ford F-150 through the use of force, violence and intimidation with the intent to cause death and serious bodily harm. The Quapaw Marshals and Wyandotte Nation Police are the investigative agencies.
Zaccheaus Ramone Jackson. Theft of Mail by United States Postal Service Employee; Obtaining Mail by Fraud and Deception. Jackson, 26, of Tulsa, is charged with the theft of two monetary bank deposits from a local business that were mailed to the business’ bank in first class mail packages. Count One alleges that on Nov. 25, 2019, when he was employed as a U.S. Postal Service city carrier assistant at the Chimney Hills Annex Post Office, Jackson stole a bank deposit package that had been collected from the business by another U.S. Postal Service carrier. The defendant resigned from his position on Dec. 6, 2019. Jackson is charged in Count Two with obtaining mail by fraud and deception. The second count alleges that on Dec. 9, 2019, Jackson impersonated a city carrier assistant by wearing his old U. S. Postal Service uniform to deceive the employees at the business and steal the monetary bank deposit package. The Office of the Inspector General of the U.S. Postal Service and the Tulsa Police Department are the investigative agencies.
Cory Wayne Kilgore. Distribution and Receipt of a Visual Depiction of a Minor Engaged in Sexually Explicit Conduct. Kilgore, 41, of Owasso, is charged with knowingly receiving and distributing child pornography through electronic means. Kilgore was also convicted of possession and attempted possession of child pornography in the Northern District of Oklahoma in April 2010. The Tulsa Police Department and Immigration and Customs Enforcement’s Homeland Security Investigations are the investigative agencies.
Anthony John Michalski. False Information About Bombs at Airport. Michalski, 64, of Tulsa, is charged with conveying false and misleading information about explosives. On Dec. 24, 2019, Michalski allegedly made a phone call to the Tulsa Police Department Dispatch, stating that a suitcase nuclear bomb would be left in a vehicle at the Tulsa International Airport within the next three hours. Upon investigation, law enforcement found no credible threat. The Tulsa Airport Police Department, Tulsa Police Department, FBI, and Transportation Security Administration are the investigative agencies.
Darren Patrick Reames. Failure to Register as a Sex Offender. Reames, 45, of Tulsa, is charged with failing to register as a sex offender. The Tulsa Police Department and U.S. Marshals Service are the investigative agencies.
Elisa Kaye Sanders. Mail Fraud (2 Counts); Wire Fraud (13 Counts). Sanders, 60, of Tulsa, was a majority owner of the spa named Enhance Skin and Body Medical Spa which was later renamed L’Chaim in 2017. Sanders participated in and oversaw the spa’s purchase, receipt, holding, and administration of drugs and treatment articles used for the treatment of clients, including prescription drugs and devices such as Botox and Juvederm. In count one of the indictment, Sanders is charged with mail fraud. She is alleged to have purchased Botox in 2015 from an unauthorized source in Mumbai, India, which was then shipped to Tulsa. When purchasing the drug, Sanders claimed it was for her own use. The indictment alleges that Sanders actually used the drug on spa clients. In count two, Sanders is also charged with mail fraud for sending altered medical records to a client’s physician. The records were altered to show that Juvederm Ultra Plus XC had been administered to the client when in fact Juvederm Ultra 4 was administered. Juvederm Ultra 3 and 4 are not approved by the Food and Drug Administration for use in the United States. In counts three through ten of the indictment, Sanders is charged with wire fraud related to eight payments made by customers for the Botox and Juvederm received from unauthorized sources. Finally, in counts eleven through fifteen, Sanders is charged with wire fraud related to five payments made to Global Health, for the purchase of Botox from unauthorized sources. Soon after the Food and Drug Administration representative’s warning in 2016, Sanders allegedly directed an individual to purchase the Botox from unauthorized sources and have the drug mailed to the individual’s business. Sanders would later pick up the drug and reimburse the individual with cash. The Food and Drug Administration, Office of Criminal Investigations is the investigative agency.
Kai Lamar Walela. Possession of a Firearm and Ammunition After Conviction of a Misdemeanor Crime of Domestic Violence; False Statement to a Firearms Dealer. Walela, 34, of Tulsa, is charged with possessing a Rock River Arms 5.56 mm caliber rifle and 72 rounds of associated ammunition after a 2018 misdemeanor domestic assault and battery conviction in Tulsa County District Court. Walela was also charged with knowingly making a false statement to Advanced Combat LLC, a licensed firearms dealer, by lying on the ATF Form 4473. On the form, Walela knowingly did not acknowledge that he was previously convicted of misdemeanor domestic violence. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Tulsa Police Department are the investigative agencies.
Federal Correctional Officer Pleads Guilty to Bribery IndictmentRead the Press Release
MIAMI, FL - Victor Manuel DeJesus, 47, of Miami-Dade County, a correctional officer at the Federal Correctional Institution (FCI) in Miami, pled guilty today to a 14-count indictment which included charges of conspiracy to defraud the United States and commit bribery, bribery, and other offenses in connection with a scheme to provide contraband items to inmates at the federal prison.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida and George L. Piro, Special Agent in Charge of the FBI’s Miami Field Office made the announcement.
According to the court record, including the federal indictment, DeJesus and others were charged with conspiring to bribe and bribing DeJesus with money in exchange for providing contraband to inmates within FCI-Miami. From at least as early as December 2018 through September 2019, inmates and those acting on their behalf supplied DeJesus with bribe payments. DeJesus then deposited these monies in his personal bank account. In exchange for these bribe payments, DeJesus used his official position to bring in prohibited items into the prison. DeJesus had inmate co-conspirators distribute the contraband in FCI-Miami.
DeJesus is scheduled to be sentenced by U.S. District Judge Robert N. Scola, Jr. on April 1, 2020 (Case No. 19cr20660).
U.S. Attorney Fajardo Orshan commended the investigatory efforts of the FBI, U.S. Postal Inspection Service, and FCI-Miami in this matter. She thanked the U.S. Department of Justice, Office of the Inspector General for their invaluable assistance. This case is being prosecuted by Assistant U.S. Attorney Alejandra L. López.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Erie Man Indicted for Possession of Cocaine with Intent to DistributeRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been indicted by a federal grand jury in Erie on a charge of violating federal drugs laws, United States Attorney Scott W. Brady announced today.
The one-count Indictment named Joel Nicholas Gustave, Jr., 39, of Erie, Pennsylvania, as the sole defendant.
According to the Indictment presented to the court, on or about November 1, 2019, Gustave possessed with the intent to distribute five hundred grams or more of cocaine.
The law provides for a maximum total sentence of 40 years, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Paul S. Sellers is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Pennsylvania Office of the Attorney General, and the Erie Police Department conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Eight Harrisburg Residents Indicted for Drug Trafficking and Firearms OffensesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Qushawn Brown, age 28, Wesley Garner, age 26, Anderson Ortiz, age 20, Tyquann Langston, age 24, Donza Brown, age 56, Jaionne Miller, age 19, Adieas Johnson, age 31, and Kaleaf Brown, age 24, all of Harrisburg, Pennsylvania, were indicted by a federal grand jury in a superseding indictment on drug trafficking and firearms charges.
According to United States Attorney David J. Freed, the superseding indictment charges the eight defendants with running a drug trafficking conspiracy from 2018 to the present in the Harrisburg area. Members of the conspiracy were affiliated with a music group named “Never Forget Loyalty” or “NFL.” As a part of their drug trafficking operation, the “NFL” posted videos on YouTube which were filmed in various Harrisburg locales. In the videos, members of the group brandished assault rifles, machine guns, and pistols with extended magazine clips, flashed cash, and displayed drugs. Defendants also described their drug trafficking activities and their willingness to act violently against rivals or perceived threats to their group, including those suspected of cooperating with law enforcement.
The case was investigated by the Bureau of Alcohol Tobacco, Firearms, and Explosives, the Harrisburg Bureau of Police, and the Pennsylvania State Police. Assistant U.S. Attorney Michael Consiglio is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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 NCIS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Dubuque Felon and Drug User Sentenced to over Five Years in Federal Prison for Unlawfully Possessing a Loaded GunRead the Press Release
A Dubuque man who illegally possessed a firearm while conducting narcotics sales out of an apartment in Dubuque was sentenced to more than five years in federal prison.
Michael Angelo Burdunice Jr., age 24, from Dubuque, Iowa, received the prison term after an August 21, 2019 guilty plea to being a prohibited person in possession of a firearm. A search warrant executed at defendant’s residence, which he shared with his girlfriend and two young children, reflected a loaded 9 mm Glock handgun with an extended magazine and obliterated serial number. Additional items recovered included narcotics, digital scales, baggies, packaging materials and a large amount of U.S. currency.
Burdunice Jr. was sentenced in Cedar Rapids by United States District Court C.J. Williams. Burdunce Jr. was sentenced to 70 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Burdunice Jr. is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was prosecuted by Assistant United States Attorney Elizabeth Dupuich and investigated by the Dubuque Drug Task Force, the Iowa Division of Narcotics Enforcement and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-1025-CJW.
Follow us on Twitter @USAO_NDIA.
Doctor and Ex-Hospital Owner Sentenced to 15 Months in Prison for Massive Health Care Fraud that Occurred on His WatchRead the Press Release
SANTA ANA, California – A doctor and the former owner of a Long Beach hospital was sentenced this morning to 15 months in federal prison for taking part in a long-running health care fraud scheme where he authorized sham contracts that concealed over $30 million in illegal kickback payments to physicians who steered spinal surgeries to his hospital. The overall scheme resulted in more than $900 million in fraudulent bills being submitted, primarily to California’s worker compensation system.
Dr. Faustino Bernadett, 65, of Rolling Hills, was sentenced by United States District Judge Josephine L. Staton, who also ordered him to pay a $60,000 fine on top of $1 million he has already forfeited to the United States.
Bernadett, a board-certified anesthesiologist and pain management physician who retired his license last year, pleaded guilty in August to a one-count criminal information charging him with misprision of a felony.
The kickback scheme centered on Pacific Hospital in Long Beach, which specialized in surgeries, especially spinal and orthopedic procedures. Pacific Hospital’s owner, Michael D. Drobot, conspired with doctors, chiropractors and marketers to pay kickbacks in return for the referral of thousands of patients to Pacific Hospital for spinal surgeries and other medical services paid for primarily through the California workers’ compensation system.
In 2005, Bernadett purchased Pacific Hospital from Drobot. Under the terms of the sale, Drobot guaranteed to Bernadett that 75 spinal surgeries per month would be performed at Pacific Hospital or else Drobot’s payout would be reduced by $25,000 for each surgery below that requirement.
Bernadett, who became directly involved with the hospital’s day-to-day operations by late 2007, later learned that Drobot was making illegal kickback payments to physicians in order to cause those physicians to steer spinal surgeries to Pacific Hospital. By January 2008, Bernadett had learned that Drobot concealed the illegal kickback payments by entering into various types of sham contracts – such as management agreements, collection agreements and option agreements.
Instead of putting a halt to Drobot’s kickback scheme, Bernadett authorized the continued use of Drobot’s sham contracts to incentivize surgical referrals to his hospital. Between January 2008 and October 2010 (when Bernadett sold his interest in Pacific Hospital back to Drobot), Pacific Hospital and related entities made more than $30 million in illicit payments to kickback recipients and performed approximately 1,400 kickback-induced spinal fusion surgeries.
“Kickbacks corrupt the doctor-patient relationship and have a deleterious impact on the health care system because they incentivize doctors to put their financial interests before patients’ best interests,” prosecutors wrote in their sentencing memorandum. “More so than other Pacific Hospital executives, [Bernadett] understands the sacred nature of the doctor-patient relationship because he is a physician himself.”
Twenty-four defendants have been charged in connection with the scheme, and 15 of them have been convicted, including Drobot and his son.
Drobot is serving a five-year prison sentence for conspiracy and paying illegal kickbacks, and has admitted that he orchestrated a wide-ranging fraudulent kickback scheme where paid more than $50 million in bribes to doctors to steer hundreds of millions of dollars in spinal surgeries to his hospital. Drobot ultimately profited millions of dollars from the scheme. Drobot currently awaits sentencing after pleading guilty to breaking additional federal laws by violating a court forfeiture order by illegally selling his luxury cars.
The investigation into the spinal surgery kickback scheme was conducted by the FBI; IRS Criminal Investigation; the California Department of Insurance; and the United States Postal Service, Office of Inspector General.
This case was prosecuted by Assistant United States Attorneys Joseph T. McNally of the Violent and Organized Crime Section, Scott D. Tenley of the Santa Ana Branch Office, and Victor A. Rodgers of the Asset Forfeiture Section.
Des Moines Man Sentenced to 10 Years in Prison for Possession of a Firearm as a FelonRead the Press Release
DES MOINES, Iowa – On January 16, 2020, Shane Leroy Robey, age 24, of Des Moines, Iowa, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger for Felon in Possession of a Firearm. Robey was sentenced to 120 months imprisonment, the statutory maximum, to be followed by a three-year term of supervised release.
Robey pleaded guilty to the offense on September 3, 2019. At sentencing, the Court found on July 3, 2019, Des Moines Police Officers attempted to pull over Robey’s motorcycle. Robey then led officers on a high-speed chase through a residential neighborhood in Des Moines. Robey eventually crashed his motorcycle and then ran from officers. After a brief foot chase, officers apprehended Robey in the backyard of a residence. Officers found a loaded handgun with an obliterated serial number on Robey’s flight path. At the time, Robey was on parole for three separate Iowa convictions.
This case was investigated by the Des Moines Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Des Moines Man Sentenced to 10 Years in Prison for Possession of a Firearm as a FelonRead the Press Release
DES MOINES, Iowa – On January 16, 2020, Shane Leroy Robey, age 24, of Des Moines, Iowa, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger for Felon in Possession of a Firearm. Robey was sentenced to 120 months imprisonment, the statutory maximum, to be followed by a three-year term of supervised release.
Robey pleaded guilty to the offense on September 3, 2019. At sentencing, the Court found on July 3, 2019, Des Moines Police Officers attempted to pull over Robey’s motorcycle. Robey then led officers on a high-speed chase through a residential neighborhood in Des Moines. Robey eventually crashed his motorcycle and then ran from officers. After a brief foot chase, officers apprehended Robey in the backyard of a residence. Officers found a loaded handgun with an obliterated serial number on Robey’s flight path. At the time, Robey was on parole for three separate Iowa convictions.
This case was investigated by the Des Moines Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Delvin Perkins Sentenced to 51 Months in PrisonRead the Press Release
HAMMOND – Delvin Perkins, 24, of South Holland, Illinois, was sentenced by Senior U.S. District Court Judge James T. Moody to 51 months in prison after pleading guilty to one count of Conspiracy to Commit Hobbs Act Robbery, announced United States Attorney Thomas L. Kirsch II.
According to documents in the case, on March 18, 2019, Perkins and co-conspirator, Reilly Jackson, conspired to rob an armored vehicle within the Northern District of Indiana. Perkins’ plan was to follow the armored vehicle as it picked up currency from various local businesses and find a suitable location to confront the driver with a firearm in order to obtain United States Currency. The conspiracy was thwarted by FBI agents who conducted a felony traffic stop on Perkins’ vehicle before the crime could be committed. At the time of the arrest, the FBI found two firearms within Perkins’ car. As part of Perkins’ plea, he also admitted to participating in a prior theft of an armored vehicle out of Chicago, Illinois that took place on July 24, 2018. At that time, Reilly Jackson was an employee of the armored car company and left the armored vehicle unlocked with the express purpose of giving Perkins access to the currency within. Perkins entered the vehicle and stole $537,374 in United States Currency, which he later split with Jackson. As part of the sentence, Perkins has been ordered to pay restitution in the full amount to the victim of the Illinois theft. In November 2019, Reilly Jackson was sentenced to 42 months in prison by U.S. District Court Judge Philip Simon.
This case was investigated by the FBI with assistance from the Merrillville Police Department and prosecuted by Assistant United States Attorney Thomas McGrath in cooperation with the United States Attorney’s Office for the Northern District of Illinois.
###
Court Sentences High Seas Drug Trafficker to 120 Months Imprisonment for Smuggling 1,916 Kilograms of CocaineRead the Press Release
On January 9, 2020 United States District Court Judge Terry F. Moorer sentenced Jackson Alexander Vera Cabeza, an Ecuadorian national, for being caught in international water in the act of smuggling 1,916 kilograms of cocaine.
Court records established that on August 4, 2018, while on routine patrol in the Eastern Pacific Ocean, a Joint Interagency Task Force South (JIATF-S) Maritime Patrol Aircraft (MPA) visually detected a low profile go-fast vessel (LPGFV) operating in international waters, approximately 302 nautical miles Northwest of the country of Ecuador and suspected to be engaged in drug trafficking. United States Coast Guard (USCG) Cutter “TAHOMA” diverted to intercept. The LPGFV initially ignored warning shots fired from a USCG helicopter and the commands to stop given by personnel on the TAHOMA. The Helicopter activated its lights and gave commands in English and Spanish for the LPGFV to stop which the LPGFV ignored. The helicopter next completed three “stiches” firing 25 warning shots with a M240B machine gun, 5 yards off the bow of the vessel to get it to stop. The LPGFV still failed to stop. The TAHOMA had launched an Over the Horizon (OTH) vessel to intercept the LPGFV and eventually the vessel came to a stop.
The LPGFV yielded no flag flown, no vessel registration documents and no other indicia of nationality. The TAHOMA personnel completed the boarding of the LPGFV and recovered approximately 1,916 kilograms of cocaine stored on the vessel. The 1,916 kilograms of cocaine had a retail street value of approximately of over $190,000,000 in the United States.
Jackson Alexander Vera Cabeza was charged in United States District Court for the Southern District of Alabama along with William Toloza Cuero, and Cesar Xavier Garcia Vera, who were previously sentenced by the Court, and Luis Eduardo Montenegro Martinez, who remains to be sentenced. The smugglers were travelling a common seaborne smuggling route to transport the cocaine from Columbia and deliver it to Central America in order that it could be further distributed.
Title 46 United States Code, § 70501 states: Congress finds and declares that (1) trafficking in controlled substances aboard vessels is a serious international problem, is universally condemned, and presents a specific threat to the security and societal well-being of the United States and (2) operating or embarking in a submersible vessel or semi-submersible vessel without nationality and on an international voyage is a serious international problem, facilitates transnational crime, including drug trafficking, and terrorism, and presents a specific threat to the safety of maritime navigation and the security of the United States. Title 46 further provides that such offenses may be prosecuted in any United States federal district court.The case was prosecuted by Assistant United States Attorney George F. May, Deputy Criminal Chief. The case was investigated by the United States Coast Guard and the Department of Homeland Security, Homeland Security Investigations.
Convicted Child Sexual Abuser Sentenced for Illegal ReentryRead the Press Release
ALEXANDRIA, Va. – An illegal alien from El Salvador, who recently was convicted in state court of taking indecent liberties with a child, was sentenced today to 15 months in prison for illegally reentering the United States after he previously was deported in 2004.
“Carrero Alas illegally entered the United States, was deported at taxpayer expense, then returned illegally a second time and was convicted of sexually abusing a child,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “We will continue to make these cases a priority and will work closely with our local and state partners to not only promote the rule of law, but also protect the most vulnerable members of our community.”
According to court documents, Oscar Saul Carrero Alas, 37, a citizen of El Salvador, was removed from the United States in October 2004, after having illegally entered the country by crossing the Rio Grande River. Carrero Alas reentered the United States, again without permission, and he subsequently was arrested in Prince William County in January 2018 for violations of state law. In June 2019, Carrero Alas was convicted of taking indecent liberties with a child by a person in a custodial or supervisory relationship, possession of cocaine, and obscene exhibition, all in violation of Virginia law.
“This individual received due process in immigration court and was removed to his home country but chose to flout that decision and return to the U.S. and victimize a child,” said Russell Hott, Field Office Director for U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removals Operations (ERO) Washington D.C. “ICE is committed, alongside our law enforcement partners, to upholding our shared public safety mission.”
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Russell Hott, Field Office Director for U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) Washington, D.C., made the announcement after sentencing by U.S. District Judge Rossie D. Alston, Jr. Assistant U.S. Attorney Natasha Smalky and Special Assistant U.S. Attorney Michael P. Grady prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-318.
Colorado Springs Man Convicted of Bank FraudRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Jack V. Smalley, age 70, of Colorado Springs was found guilty following a four-day jury trial for bank fraud related to a mortgage application with the Navy Federal Credit Union. The Department of Defense Criminal Investigative Service, the Internal Revenue Service--Criminal Investigations, and the Air Force Office of Special Investigations join in this announcement.
On June 25, 2015, Smalley submitted a mortgage loan application with the Navy Federal Credit Union indicating that he earned a salary of approximately $200,000 dollars a year. At the time, Smalley knew that wasn’t true. In conducting its due diligence, the Navy Federal Credit Union requested a pay stub that would show Smalley's monthly income, a letter from his employer to verify his employment and salary, and a bank statement to show Smalley’s income deposited into his bank account.
Smalley took steps to falsify the requested information, including falsifying a pay stub and his employment letter. Based on the fraudulent documents, the Navy Federal Credit Union approved Smalley for a $998,000 loan. Smalley defaulted on that loan in 2017. In trying to mitigate his loan, Smalley provided two more fraudulent employment letters in 2018 and 2019. Smalley used the proceeds of the loan to purchase a $1.1 million dollar residence in Colorado Springs. As part of the proceedings in this case, the Court ruled that the residence is subject to forfeiture based on the bank fraud.
“Lying to get a home loan is fraud, and the guilty verdict by the jury who heard this case made that perfectly clear,” said U.S. Attorney Jason Dunn. “Thanks to the hard work of our office and the law enforcement agents investigating this case, Smalley is now a convicted felon facing prison time.”
Smalley is scheduled to be sentenced on April 27, 2020. The case was investigated by the Department of Defense Office of the Inspector General, the Internal Revenue Service—Criminal Investigations and Air Force Office of Criminal Investigations. The trial was before U.S. District Court Judge Daniel D. Domenico. The defendant was prosecuted by Assistant U.S. Attorney Jeremy Sibert.
Colombian Female Sentenced to 15 Years for International Cocaine Smuggling and PerjuryRead the Press Release
Tampa, Florida– U.S. District Judge Susan C. Bucklew has sentenced Lelia Vanessa Perdomo Zapata (26, Colombia, South America) to 15 years in federal prison for conspiracy to distribute and to possess with the intent to distribute five kilograms or more of cocaine while onboard a vessel subject to the jurisdiction of the United States, for possession with the intent to distribute five kilograms or more of cocaine on that vessel, and for perjury.
A federal jury had found Zapata guilty on September 3, 2019.
According to trial evidence, Zapata was the Colombian load guard for a Cartagena, Colombia-based cocaine smuggling crew and part of an international maritime drug smuggling operation involving at least 440 kilograms of cocaine, worth approximately $13 million. Prior to their interdiction by the U.S. Coast Guard (USCG), Zapata and one of her co-conspirators were transporting 18 bales of cocaine onboard a 60-foot sailing vessel from Cartagena to Cancun, Mexico. Ultimately, USCG law enforcement officers from Tactical Law Enforcement Team (TACLET) Pacific boarded the sailing vessel and discovered 18 bales of cocaine and multiple electronic devices consistent with cocaine trafficking. Subsequent analyses of these devices yielded crucial digital evidence of the cocaine smuggling operation.
During trial, Zapata testified under oath for nearly seven hours and made numerous statements that were demonstrably false.
This case was investigated by the Panama Express Strike Force, an Organized Crime Drug Enforcement Task Force (OCDETF) comprised of agents and analysts from the United States Coast Guard Investigative Service, the Drug Enforcement Administration, the Federal Bureau of Investigation, Homeland Security Investigations, the Naval Criminal Investigative Service, and U.S. Southern Command's Joint Interagency Task Force South. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. The case was prosecuted by Assistant United States Attorney Diego F. Novaes and Special Assistant United States Attorney Nicholas DeRenzo.
Chicago Investment Manager Indicted on Fraud Charges for Allegedly Swindling Money from Women He Met OnlineRead the Press Release
CHICAGO — A Chicago investment manager has been indicted for allegedly swindling money from women he met through online dating services.
MARCUS BEAM, who owned and controlled various companies in Chicago and the suburbs, exaggerated his financial success and the expected return on investments to fraudulently obtain money from women he met online and other investors, including a family member and a former employee, according to an indictment returned Thursday in U.S. District Court in Chicago. Beam falsely claimed that their funds would be invested in popular stocks such as Uber and Lyft, and other investment products such as gold, art, and real estate, the indictment states. In reality, Beam spent the money for his own personal benefit, including rent, auto loans, and purchases at retail stores such as Walmart and Ikea, the indictment states. The fraud scheme began in 2015 and continued until October of last year, resulting in a loss to investors of at least $500,000, the indictment states.
The indictment charges Beam, 49, of Woodridge, with nine counts of wire fraud and one count of mail fraud. Arraignment in federal court has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Craig Goldberg, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago; Jeffrey A. Monhart, Regional Director of the Chicago Regional Office of the U.S. Department of Labor, Employee Benefits Security Administration; and Tanya Solov, Director of the Illinois Securities Department of the Illinois Secretary of State. The government is represented by Assistant U.S. Attorney Jacqueline Stern.
Valuable assistance has been provided by the U.S. Securities and Exchange Commission, which previously filed a civil complaint against Beam.
According to the indictment, Beam held himself out as the owner of a Chicago investment company called Chase Private Equity LLC, which was also known as New World Capital LLC. Beam also owned and operated other companies, including a Naperville-based virtual reality company called VR 360 LLC, and Imex Energy Inc., a Bolingbrook-based brokerage firm that claimed to sell retail electricity for third parties, the indictment states.
The charges allege that Beam attempted to conceal his fraud scheme by furnishing victims with account statements that misrepresented the value of their funds. Beam also made false lulling statements to investors for why their money could not be paid back as requested, the indictment states. Some of the money allegedly misappropriated by Beam came from investors’ retirement accounts.
Each count in the indictment is punishable by up to 20 years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines. The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Canonsburg Man Pleads Guilty to Possessing Child Pornography on His Cell PhoneRead the Press Release
PITTSBURGH, PA-A former resident of Canonsburg, Pennsylvania, pleaded guilty in federal court to possession of child pornography, United States Attorney Scott W. Brady announced today.
Robert Fichter, 54, pleaded guilty to one count before Chief United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that investigative efforts during a Homeland Security Investigation revealed that Fichter utilized an Android cellular phone running BitTorrent software to access, view and download child pornography. The court was further informed that law enforcement officials executed a federal search warrant at Fichter’s residence on May 24, 2018, wherein they seized Fichter’s cellular phone. During a forensic review of the cell phone, agents uncovered images and videos of child pornography, some of which involved children under the age of 12, as well as violent sexual conduct.
Judge Hornak scheduled sentencing for May 21, 2020 at 9:30 AM The law provides for a total sentence of not more than 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Fichter remains incarcerated pending sentencing.
The Department of Homeland Security Investigations, with assistance from members of the North Strabane and Canonsburg police departments, conducted the investigation leading to the prosecution of Fichter.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
California man who falsely claimed ties to Moroccan Royal Family pleads guilty to $10 million dollar advance fee fraud schemeRead the Press Release
ATLANTA - Hassan Ra El, a/k/a Rasheem Harrson Crockett has pleaded guilty to mail fraud related to a scheme in which he falsely claimed to be a member of the Moroccan Royal Family to defraud business owners around the country to pay an advance fee before obtaining millions in business loans.
“This defendant will be held responsible for his elaborate advance fee loan scheme that took advantage of individuals and businesses that desired to raise capital,” said U.S. Attorney Byung J. “BJay” Pak. “Consumers and business owners are encouraged to conduct due diligence beyond information on websites when they enter business relationships.”
“Those seeking to maximize profits while misleading business owners and investors should expect to pay a heavy price,” said David M. McGinnis, Inspector in Charge, U.S. Postal Inspection Service, Charlotte Division. “The U.S. Postal Inspection Service has investigated these kind of deceptive practices for years to protect consumers. Postal Inspectors work tirelessly to identify and hold accountable any person who uses the U.S. mail to defraud American citizens.”
According to U.S. Attorney Pak, the charges and other information presented in court: Hassan Ra El operated a scheme to defraud business owners across the country who were seeking loans. El claimed that he was a wealthy investor and a member of the Moroccan Royal Family. El fraudulently claimed that he had access to Moroccan Royal Family funds that would be used to fund business loans. El created fraudulent documentation showing that insurance companies were offering default insurance policies on the loans. El convinced prospective loan applicants that they had to pay default insurance fees, typically 10% of the loan amount, before the loans would fund. When the loans failed to fund, El used fees from later loan applicants to partially refund fees from previous loan applicants.
In furtherance of the scheme, El created fraudulent bank statements purportedly showing that he, or companies that he controlled, had millions in bank accounts. El also created fraudulent email accounts and correspondence purportedly from insurance executives stating that loans had been approved. El used fees from loan applicants to fund his lifestyle, pay his living expenses, and to rent high-end automobiles - including a Ferrari, Range Rover and Lamborghini. El fraudulently induced victims to pay over $10 million dollars in advance fees. Neither El, nor his companies, funded any of the promised loans and loan applicants lost over $5 million dollars in the fraud scheme.
Hassan Ra El, a/k/a Rasheem Harrson Crockett, 45, of Chino Hills, California was previously charged with forgery, theft by conversion, and false statements in Douglas County, Georgia, for defrauding loan clients. After his convictions in Douglas County, El formerly changed his name from Rasheem Harrson Crockett to Hassan Ra El and continued to defraud prospective business owners seeking capital.
On July 2, 2019, El was indicted on thirteen counts of mail fraud, and five counts of wire fraud. Sentencing is scheduled for April 22, 2020, at 2:30 p.m., before U.S. District Judge William M. Ray II.
The U.S. Postal Inspection Service in investigating this case.
Assistant U.S. Attorneys Jeffrey Brown, Deputy Chief of the Complex Frauds Section, and Erin Sanders are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Buffalo Man Going to Prison for 10 Years for His Role in Drug Trafficking OrganizationRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney James P. Kennedy, Jr. announced today that Quinton Jones, 40, of Buffalo, NY, who was convicted of conspiring to possess with intent to distribute, and distributing, five kilograms or more of cocaine, was sentenced to serve 120 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Laura A. Higgins, who handled the case, stated that between November 2016 and September 29, 2017, the defendant conspired with others to distribute cocaine in the South Buffalo area for a drug trafficking organization led by co-defendant Cesar Rivera-Figueroa. In August of 2017, the defendant received a kilogram of cocaine from one of his co-defendants. On August 18, 2018, Jones made a payment of approximately $30,000 for the kilogram.
On September 13, 2017, the drug trafficking organization received several parcels containing cocaine through the U.S. Postal Service. Upon receipt, another co-defendant contacted the defendant to arrange for the defendant to pick up a kilogram and distribute it in the Buffalo area. On his way to collect the kilogram of cocaine, Jones was stopped by a marked Erie County Sheriff’s vehicle, and law enforcement found him in possession of $19,995 in U.S. currency.
Over the course of the defendant’s involvement in the conspiracy, Jones regularly distributed at least one kilogram of cocaine per month on behalf of the drug trafficking organization.
On September 29, 2017, the defendant was arrested inside his residence at 57 Juniata Street in Buffalo. A search warrant was executed and investigators recovered $4,023 in U.S. currency; a .22 caliber rifle with a defaced serial number; multiple rounds of ammunition; and a quantity of cocaine.
Jones is one of 12 defendants convicted in this case and the fourth to be sentenced.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, Safe Streets Task Force, under the direction of Special Agent-in-Charge Gary Loeffert; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; and the New York State Police, under the direction of Major Edward Kennedy.
# # # #
Bucks County Man to Pay $12,000 to Resolve Allegations of Making Fraudulent Insurance Claims to U.S. Postal ServiceRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that David W. Miller, Jr., of Warminster, PA has agreed to pay the United States $12,000 to resolve civil allegations that he made fraudulent insurance claims to the United States Postal Service.
The government’s investigation began when a proactive review of claims data disclosed that Miller had made a large number of insurance claims to the Postal Service during 2017 and 2018. The government alleges that Miller falsely claimed that packages he sent or received via Priority Mail arrived damaged, when they were not, and that Miller submitted false information and documentation to support his postal insurance claims. The government contends that as a result, Miller improperly received between $1,830 and $9,100 from the Postal Service.
“Fraud should never pay, and we are committed to ensuring that it does not,” said U.S. Attorney McSwain. “My Office places a high priority on enforcement in all types of fraud against the government and works with its law enforcement partners to identify and investigate these matters. This case should serve as notice that we will come after anyone who steals from the United States government, with every tool we have.”
Kenneth Cleevely, Special Agent in Charge, Eastern Area Field Office, U.S. Postal Service Office of Inspector General (USPS OIG), stated: “Ancient Greek playwright Sophocles once wrote, ‘Things gained though unjust fraud are never secure.’ In this case, Mr. Miller attempted to obtain what he thought would be free money from the U.S. Postal Service. However, due to the investigative efforts of special agents with the U.S. Postal Service Office of Inspector General and our law enforcement partners, he is learning the hard way that there is no such thing. USPS OIG special agents vigorously investigate allegations of fraud targeting the Postal Service, and will pursue the appropriate remedy when fraud is discovered.”
To report fraud, waste, or abuse within the Postal Service, contact the USPS OIG hotline at www.uspsoig.gov or 888-USPS-OIG.
The settled civil claims are allegations only. There has been no determination of liability.
The case was investigated by the U.S. Postal Service Office of the Inspector General. It was handled by Assistant United States Attorney Mark J. Sherer, Fraud Investigator Frank O’Conner, and Auditor Denis Cooke.
Brownsville, PA Man Pleads Guilty to Child Exploitation ChargesRead the Press Release
PITTSBURGH - A former resident of Washington County, Pennsylvania pleaded guilty in federal court to charges of Production of Material Depicting the Sexual Exploitation of a Minor and Possession of Material Depicting the Sexual Exploitation of a Minor, United States Attorney Scott W. Brady announced today.
Sean Houston, age 47, of Brownsville, Pennsylvania, pleaded guilty to three counts before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that on May 20, 2016 and from July 22, 2017 through October 2018, Houston produced and attempted to produce visual depictions of the sexual exploitation of a minor. Additionally, on October 29, 2018, Houston knowingly possessed visual depictions of the sexual exploitation of minors.
Judge Bissoon scheduled sentencing for May 11, 2020. The law provides for a sentence of not less than 15 years and a maximum sentence of 30 years in prison, a fine of $750,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government.
Homeland Security Investigations, the Centerville Police Department, the North Strabane Police Department, and the Washington County District Attorney’s Office conducted the investigation that led to the prosecution of Houston.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Brighton Man Sentenced for Failure to File Tax Return and for Fraudulently Concealing Facts Relevant to Social Security Disability PaymentsRead the Press Release
DENVER – Jason R. Dunn today announced that Robert Eugene Hybertson, age 61, of Brighton, Colorado was sentenced to time served, which constitutes approximately 20 months’ imprisonment for failure to file a tax return and for fraudulently concealing facts relevant to Social Security Disability payments. Hybertson will serve 3 years of supervised release. The defendant also agreed to pay restitution to the Social Security Administration (SSA) in the amount of $146,484, file accurate tax returns for all years in which returns are pending, and pay all taxes owed to the IRS as determined by a subsequent civil IRS proceeding. The IRS-Criminal Investigation and Social Security Office of the Inspector General joined in the announcement.
According to the stipulated facts in the plea agreement, Hybertson received a gross income of $887,000 in 2012 but willfully failed to file the required income tax return for that year. The defendant also failed to file tax returns for his income for the years 2010, 2011, and 2013, when he had approximate gross incomes of $241,000, $566,000, and $117,000, respectively. The estimated tax loss for those four years is $828,000, or $1.7 million if penalties and interest are included.
Also, in May 2001, Hybertson began receiving Social Security Disability Insurance (SSDI) benefits. As part of this application, the defendant agreed to notify SSA if the defendant’s medical condition improved enough that he was able to return to work. Starting around 2010, however, Hybertson concealed from SSA the fact that he was receiving the income described above, including by making false statements that he was not working. As a result of his concealment, Hybertson received $146,484 in SSDI benefits to which he was not entitled.
“The defendant avoided paying hundreds of thousands of dollars in taxes and at the same time lied to get money he did not deserve from Social Security Disability Insurance,” said U.S. Attorney Jason Dunn. “Special thanks to the IRS-Criminal Investigation and Social Security Office of the Inspector General who persisted with their investigation to ensure Hybertson was brought to justice.”
“As we enter into tax filing season, today’s sentencing of Robert Hybertson is a timely reminder that the payment of one’s taxes is an obligation, and not a choice,” said Special Agent in Charge Andy Tsui, IRS-Criminal Investigation. “Mr. Hybertson made the decision not to file tax returns when he was legally obligated to do so. He cheated all taxpayers who make an honest effort every year to comply with the US tax laws and pay their fair share.”
“Social Security OIG is committed to protecting the agency’s disability programs from fraud, waste, and abuse,” said Adam Lowder, Acting Special Agent-in-Charge of the SSA OIG’s Denver Field Division. “This individual deliberately concealed his work from Social Security for personal gain for over a decade. We will continue to pursue those who commit disability fraud, and we appreciate the efforts of the U.S. Attorney’s Office to see justice served and recover funds for Social Security.”
The sentencing hearing was before U.S. District Court Judge R. Brook Jackson. The case was investigated by IRS-Criminal Investigation and the Social Security Office of the Inspector General. The defendant was prosecuted by Assistant U.S. Attorneys Rebecca Weber, Emily Treaster, Kelly Churnet, and First Assistant U.S. Attorney Matthew Kirsch.
Bridgeport Twins Involved in Violent Robbery and Carjacking of Ansonia Delivery Driver are SentencedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ANTOINE SNELL and TREYQUANE SNELL, both 21 of Bridgeport, were sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to prison terms of 64 months and 72 months, respectively, for committing a violent robbery and carjacking of a food delivery driver in Ansonia.
According to court documents and statements made in court, on December 21, 2016, Antoine and Treyquane Snell, who are twin brothers, and a juvenile male, placed a food order with an Ansonia restaurant to be delivered to a location on Dwight Street. After the driver arrived at the location, the three males ordered the driver out of his car, attacked him and stole the car. The victim suffered serious injuries, including multiple broken bones in his face and bleeding in his brain.
On August 14, 2019, the each brother pleaded guilty to one count of Hobbs Act robbery.
The juvenile involved in the robbery and carjacking was charged, convicted and sentenced in state court.
Antoine and Treyquane Snell will serve three years of supervised release when they are released from prison.
This matter was investigated by the Federal Bureau of Investigation and the Ansonia Police Department. The case was prosecuted by Assistant U.S. Attorneys Douglas P. Morabito and Maria del Pilar Gonzalez.
6 Colombian Nationals and Owner of Consumer Electronics Business Charged for Their Roles in Money Laundering and Unlicensed Money Transmission Business OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Eduardo A. Chavez, Special Agent in Charge of the Dallas Division of the U.S. Drug Enforcement Administration (“DEA”), announced today the unsealing of four indictments charging MIGUEL CESPEDES, OMAR MOGOLLON, LUIS FELIPE GONZALEZ ARCILA, IVAN ROJAS ACOSTA, ALEX BARRERA FORERO, and DAVID ORTIZ VILLAMIZAR, six Colombian nationals, as well as AMIT AGARWAL, an Indian national who operates a wholesale consumer electronics business in East Hanover, New Jersey, for offenses relating to various international money laundering schemes and the operation of unlicensed money transmission businesses. CESPEDES, MOGOLLON, GONZALEZ, ROJAS, BARRERA, and ORTIZ were arrested in Colombia, and the United States Government will be seeking their extradition to the United States. AGARWAL was arrested on December 20, 2019, at Newark International Airport. AGARWAL’s case is assigned to United States District Judge Paul A. Engelmeyer; CESPEDES’s case is assigned to United States District Judge Gregory H. Woods; BARRERA and ORTIZ’s case is assigned to United States District Judge Gregory H. Woods; and MOGOLLON, GONZALEZ, and ROJAS’s case is assigned to United States District Judge J. Paul Oetken.
U.S. Attorney Geoffrey S. Berman said: “The illegal drug trade depends on shadow financial networks to move drug traffickers’ profits into our banking system and across our borders. As alleged, these defendants ran those types of networks in both the United States and Colombia. Today’s arrests demonstrate that this Office, along with our partners here and abroad, will bring the operators of such networks to justice wherever in the world they may hide.”
DEA Special Agent in Charge Eduardo A. Chavez said: “Today’s arrests serve as notice to those who participate in any aspect of the global drug trade – whether it be selling drugs on a street corner or moving illicit profits through our banking system – the DEA along with our global partners, will hold you responsible and bring you to justice.”
As alleged in the Indictments unsealed in Manhattan federal court:[1]
From at least in or about June 2018 through at least in or about 2019, MIGUEL CESPEDES, OMAR MOGOLLON, LUIS FELIPE GONZALEZ ARCILA, IVAN ROJAS ACOSTA, ALEX BARRERA FORERO, DAVID ORTIZ VILLAMIZAR, and AMIT AGARWAL all participated in schemes to launder funds from locations throughout the United States to recipients in, among other places, Colombia. Among other things, the purpose of the schemes was to enable clients with cash located in the United States to transfer the value of that cash to other countries, principally Colombia, without the need for physically transporting United States currency across an international border or directly depositing large amounts of cash into the legitimate financial system.
To effectuate the scheme, “clients,” i.e., the owners of funds located in the United States, utilized the services of money brokers operating primarily in Colombia (the “Money Brokers”). The Money Brokers offered “contracts” typically requiring (a) the pick-up of United States currency from couriers throughout the United States and the receipt of international wires in the United States, and (b) the delivery of a corresponding amount of pesos in Colombia to the Money Brokers. In exchange for successfully delivering on a contract, the Money Brokers earned a commission, taken from the pesos received by them in Colombia. The person(s) with whom the Money Brokers contracted to arrange for the pick-up and receipt of United States currency also received a commission taken from the pesos received by the Money Brokers in Colombia. Although the payment of commissions from the funds collected pursuant to a contract meant that the clients did not receive the full value of the funds that the clients owned in the United States, this scheme enabled the clients to avoid the risks of having large quantities of cash detected at international borders and to avoid triggering financial reporting requirements.
CESPEDES, MOGOLLON, GONZALEZ, ROJAS, BARRERA, and ORTIZ engaged in the scheme as Money Brokers. As Money Brokers, working at times independently and at times together, they offered and executed upon multiple contracts requiring the pick-up of funds throughout the United States, and the delivery of a corresponding value of pesos to them in Colombia. In exchange for their work as Money Brokers, they received commissions taken from the pesos delivered to them in Colombia, as did the individuals with whom they contracted.
AGARWAL was the chief executive officer of a consumer electronics products business based in East Hanover, New Jersey (the “Agarwal Electronics Business”). Among other things, the Agarwal Electronics Business exported consumer electronics to purchasers throughout the world, including purchasers located in Colombia. In connection with its business activities, the Agarwal Electronics Business maintained a bank account in the United States, controlled and operated by AGARWAL (the “Agarwal Bank Account”).
Typically, as part of the scheme, the funds collected in the United States pursuant to contracts offered by CESPEDES, MOGOLLON, GONZALEZ, ROJAS, BARRERA, and ORTIZ were deposited in a bank account located in the United States (“Bank Account-1”), and then transferred to the Agarwal Bank Account. Pursuant to the contracts offered by the Money Brokers, AGARWAL agreed to accept these funds into the Agarwal Bank Account, and AGARWAL also agreed to accept funds into the Agarwal Bank Account that had been wired to Bank Account-1 from foreign locations, including Mexico. AGARWAL understood these funds to be narcotics proceeds and sought to repatriate them to South America while avoiding the risk associated with having large quantities of cash detected at international borders, and avoiding the currency reporting requirements imposed by United States laws.
Upon receiving confirmation that funds collected pursuant to a Money Broker contract issued by CESPEDES, MOGOLLON, GONZALEZ, ROJAS, BARRERA, or ORTIZ were available for deposit into the Agarwal Bank Account, AGARWAL arranged for the export of a roughly equivalent value of consumer electronics products to certain consumer electronic product suppliers located in Colombia (the “Colombian Electronics Suppliers”). The Colombian Electronics Suppliers, in turn, arranged to pay for the products by delivering pesos to an individual in Colombia, who then delivered those funds to the Money Brokers. In this way, funds collected in the United States were remitted to Colombia, without requiring that they be reported, declared, or smuggled over international borders.
During the execution of the scheme, federal law enforcement agents working in an undercover capacity, and persons operating at the direction of federal law enforcement agents, informed AGARWAL that the funds he agreed to receive in the Agarwal Bank Account from Bank Account-1, pursuant to the scheme, represented the proceeds of narcotics trafficking activity. AGARWAL, however, continued to accept the funds into the Agarwal Bank Account while facilitating the Money Broker contracts.
* * *
AGARWAL is charged in United States v. Amit Agarwal, 19 Cr. 838, with one count of money laundering, which carries a maximum sentence of 20 years in prison.
CESPEDES is charged in United States v. Miguel Cespedes, 19 Cr. 839, with one count of operation of an unlicensed money transmission business, which carries a maximum sentence of five years in prison, and one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison.
MOGOLLON, GONZALEZ, and ROJAS are charged in United States v. Omar Mogollon, et al., 19 Cr. 837, with conspiracy to operate an unlicensed money transmission business and operation of an unlicensed money transmission business, each of which carries a maximum sentence of five years in prison. MOGOLLON is also charged with one count of international money laundering, which carries a maximum sentence of 20 years in prison.
BARRERA and ORTIZ are charged in United States v. Alex Barrera Forero and David Ortiz Villamizar, 19 Cr. 840, with one count of conspiracy to operate an unlicensed money transmission business, and one count of operation of an unlicensed money transmission business, each of which carries a maximum sentence of five years in prison.
The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the respective judges.
Mr. Berman praised the investigative work of the DEA’s Dallas Field Division’s Enforcement Group 4 and the DEA’s Bogota Country Office, and thanked the authorities in Colombia, and the Justice Department’s Office of International Affairs of the Department’s Criminal Division for their assistance.
This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Tara M. La Morte and Cecilia E. Vogel are in charge of the prosecution.
The allegations in the Indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictments, and the description of the Indictments set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
19 Defendants Sentenced to Combined 321 Years in Federal Prison for Roles in Related Lexington Meth ConspiraciesRead the Press Release
Columbia, South Carolina ---- Acting United States Attorney A. Lance Crick announced today that 19 defendants from Lexington County and surrounding areas have been sentenced to federal prison for their roles in related methamphetamine distribution conspiracies, which involved the possession and use of dozens of firearms:
Willie Ricardo Gordon, a/k/a “Rico,” 35, was convicted following a jury trial in January 2019 of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and use of a firearm in furtherance of drug trafficking, and sentenced to 420 months in federal prison;
Marcus Young, a/k/a “Lay Low,” 31, was convicted following a jury trial in January 2019 of conspiracy to possess and possession with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, use of a firearm in furtherance of drug trafficking, and felon in possession of firearm, and sentenced to 420 months;
Rafael Redmond, a/k/a “Pockets,” 44, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 200 months;
Jennifer Logan, 43, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and use of a firearm in furtherance of drug trafficking and was sentenced to 180 months;
Andrew Michael Chamberlain, 32, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 160 months;
James Lloyd, 29, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 235 months;
Jeremy Davis, 32, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 360 months;
Robert Pendleton, a/k/a “Bobby,” 40, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 100 months;
David Peeples, 38, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 120 months;
Terri Moore, 41, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and use of a firearm in furtherance of drug trafficking and was sentenced to 270 months;
Brian Lorick, 46, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and use of a firearm in furtherance of drug trafficking and was sentenced to 168 months;
John Phillip Drawdy, 41, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 264 months;
Leigh Antley McCamy, 37, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 71 months;
Blake Allen Smith, 30, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 188 months;
Kimberly Hartley, 31, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 151 months;
Joseph Smith, 41, pleaded guilty to possession of a firearm by a convicted felon and use of a firearm in furtherance of drug trafficking and was sentenced to 60 months & 1 day;
Robert Flowers, 34, pleaded guilty to possession with intent to distribute methamphetamine and possession of a firearm by a convicted felon and was sentenced to 156 months;
Jeffrey Shane Tager, 34, pleaded guilty to possession with intent to distribute methamphetamine and was sentenced to 78 months; and
Clinton French, 34, pleaded guilty to possession of a firearm by a convicted felon and use of a firearm in furtherance of drug trafficking and was sentenced to 262 months.
“Methamphetamine is a powerful drug with increasing prevalence across our state, and in Lexington County in particular,” said Acting United States Attorney Crick. “The drug is dangerous enough on its own, but the added presence of firearms and violence made these conspiracies a particularly egregious threat to the community. I am grateful to ATF and the Lexington County Sheriff’s Department for their continued partnership in our fight to reduce violent crime and drug distribution.”
ATF Assistant Special Agent in Charge Brian Mein stated, “The outcome of this investigation means that very dangerous individuals have been taken out of our neighborhoods for a very long time. This case highlights a truly collaborative effort and the ongoing commitment from our local, state, and federal law enforcement partners to keep up the fight against violent crime in our communities.”
Lexington County Sheriff Jay Koon stated, “The safety and security of Lexington County residents is always top of mind for the men and women of my office as we focus on getting drugs out of our community and putting dealers in jail. Thanks to the strong relationships we have with our federal, state and local partners, there’s a united front against violent crime in our neighborhoods.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Lexington County Sheriff’s Department. It was prosecuted as part of the joint federal, state, and local 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. The case was prosecuted by Assistant United States Attorney Alyssa Leigh Richardson of the Columbia office.
#####
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.
16 January 2020
“Impatient” Bank Robber Sentenced to 6 Years in PrisonRead the Press Release
PITTSBURGH, Pa. - A former resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to a term of imprisonment of six years (72 months) to be followed by three years of supervised release on his conviction of bank robbery, United States Attorney Scott W. Brady announced today.
Chief United States District Court Judge Mark R. Hornak imposed the sentence on Christian Elijah Moore, age 30.
According to information presented to the court, on September 5, 2017, Moore walked into the First National Bank in Homestead, PA and asked for change. While the teller was providing him with change, Moore placed his wallet on the counter and stated that his friend wanted him to give her a note. In the note, Moore threatened to shoot the teller if he she did not provide him with money.
The teller provided Moore with $1,055.00, as well as a GPS tracking device. As Moore was walking from the bank, he removed identifiable clothing and left the items in the bushes of the homes along his path. Officers later recovered the gray Adidas jacket that he was wearing during the bank robbery from the bushes of a home near the bank. He then walked to a jitney station and asked for a ride to Oakland. The jitney driver proceeded across the Homestead Grays Bridge. Moore observed Homestead police, who were alerted to the area by the GPS device, and instructed the jitney driver to make a U-turn and proceed to Hazelwood. After observing the vehicle make a U-turn, police stopped the vehicle. Officers recovered a loaded Kel-Tec semi-automatic .9mm pistol as well as the money and tracking device from Moore. Moore admitted that when he woke up that day, he decided to rob a bank because he needed money and did not like having to wait.
Assistant United States Attorney Shanicka L. Kennedy prosecuted this case on behalf of the government.
The Federal Bureau of Investigation and Homestead Police Department conducted the investigation that led to the prosecution of Moore.
York Man Charged with Drug Trafficking and Firearms OffensesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Shanquay Ritter, age 23, of York, Pennsylvania, was indicted on January 8, 2020, by a federal grand jury on drug trafficking and firearms charges.
According to United States Attorney David J. Freed, the indictment charges Ritter with possession with intent to distribute heroin, cocaine, and fentanyl, for possession of a firearm in furtherance of drug trafficking, and for being a convicted felon in possession of a firearm. Ritter is also charged with threatening a federal official with the intent to intimidate that official while he was engaged in his official duties.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Christian T. Haugsby is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
Indictments are only allegations. All persons charged by indictment are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for possession with the intent to distribute heroin, cocaine, and fentanyl is 20 years’ imprisonment and a fine. The maximum penalty under federal law for possession of a firearm in furtherance of drug trafficking is life imprisonment and a fine. Conviction for that offense also subjects a defendant to a mandatory minimum consecutive sentence of five years’ imprisonment. Possession of a firearm by a prohibited person under federal law carries a maximum penalty of 10 years’ imprisonment. Threatening a federal official is punishable by up to 6 years’ imprisonment. A sentence for each of these offenses also includes a period of supervised release following imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Wilmington Press Conference Time ChangeRead the Press Release
***CHANGE IN TIME***
MEDIA ADVISORY
WHEN: Friday, January 17, 2020 at 1:30 PM
WHERE: New Hanover County Historic Courthouse
Commissioners Assembly Room 301
24 North 3rd Street
Wilmington, NC 28401
Re: Operation DodgeBall
RALEIGH – The United States Attorney’s Office announces a press conference to discuss the sentencing of multiple gang member defendants in a multi-year heroin/fentanyl and heroin conspiracy investigation in Wilmington and New Hanover County. These defendants were not only responsible for the sale of narcotics in Wilmington, but also multiple violent acts. We will also highlight the important partnerships between all levels of law enforcement in this and other investigations during the preceding year. The Federal Bureau of Investigation’s Safe Streets Task Force, consisting of FBI Special Agents, Wilmington Police Department investigators and New Hanover County Sheriff’s Office detectives investigated this case.
In addition to United States Attorney Robert J. Higdon, Jr., District Attorney Ben David, and members of the FBI, ATF, ICE/HSI, Wilmington Police Department, and New Hanover County Sheriff’s Office are expected to be present at this event.
Credentialed members of the media are invited to attend. For additional information, please e-mail Don Connelly at [email protected]. Please RSVP your intentions to attend the event.
Williamsville Man Sentenced for Wire Fraud -- AgainRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Robert C. Logel, 56, of Williamsville, NY, who was convicted of wire fraud and tax evasion, was sentenced to serve 51 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorneys Jonathan P. Cantil, MaryEllen Kresse, and David Rudroff, who handled the case, stated that in 2009, the defendant was convicted of wire fraud for defrauding two victims out of nearly $3,000,000 and sentenced to 48 months in prison. Logel told the victims that he invested their money in various businesses when, in fact, he used the funds himself.
Within months of being released from prison, Logel entered into a scheme involving the production, distribution, and sale of two skin and healthcare products. During the course of the scheme, the defendant made false representations regarding his ability to distribute and market such products. As a result, victims, including QuadPharma, a pharmaceutical manufacturing company located in Clarence, NY, transferred funds to Logel which they believed would be used to ready the products for distribution and sale. The defendant did not, however, use the victims' money as promised. Rather, Logel used the vast majority of the funds for his personal use, including car payments, college tuition, rent for his and his girlfriend’s apartments, and cosmetic surgery. QuadPharma suffered a loss of approximately $417,120. Six other victims suffered a total loss of approximately $143,176.
In addition, the defendant failed to file income tax returns for the tax years 2004 through 2007, resulting in a loss of $5,574,837.38 to the Internal Revenue Service.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, and the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge Jonathan D. Larsen.
# # # #
Webster Parish Non-Profit Director Sentenced for Stealing More Than $1 Million from Federal Feeding ProgramRead the Press Release
SHREVEPORT, La. – David C. Joseph, United States Attorney for the Western District of Louisiana, announced that a Cotton Valley woman was sentenced for stealing more than $1 million from the U.S. Department of Agriculture’s Summer Feeding Service Program, a federal feeding program meant to provide meals to economically disadvantaged children during the summer months when they are not in school.
Myrna Thomas Quarles, 59, was sentenced today by U.S. District Judge Donald E. Walter to serve 71 months in federal prison. Judge Walter also sentenced Quarles, who pleaded guilty to theft of government property on September 18, 2019, to three years of supervised release following her confinement and ordered her to pay $1,460,541.41 in restitution.
Quarles was the director of Greater Horizons Developmental Services, a non-profit headquartered in Webster Parish. Greater Horizons received reimbursements from the U.S. Department of Agriculture’s Summer Feeding Service Program, which was administered through the State of Louisiana. From 2014 through 2015, Greater Horizons submitted reimbursement claims that greatly inflated the number of eligible meals provided. Once Greater Horizons received the money, Quarles wrote checks that were payable to vendors and other third parties, but instead of sending those checks to the vendors, Quarles deposited that money into her personal bank account, which totaled over $1 million in theft from the federal feeding program. Additionally, Quarles used the Greater Horizons’ checking account to pay for personal expenses that she charged to a Greater Horizons credit card totaling $370,816.61. Purchases included real estate, farm equipment, a restaurant, air travel, cruises and designer luxury items.
“Quarles stole from a taxpayer-funded program meant to provide meals to children,” stated U.S. Attorney Joseph. “My office will continue to aggressively prosecute this and other types of fraud. Today’s sentence should send the clear message that the U.S. Attorney’s Office and our law enforcement partners will bring justice to those who defraud the taxpayers and take advantage of the most vulnerable among us.”
“Make no mistake – this was bold and shameless thievery of nearly $1.5 million intended to feed hungry children,” stated Louisiana Inspector General Stephen Street. “Ms. Quarles showed an outrageous lack of concern for the taxpayers and the children those funds were supposed to benefit. Today’s sentence should send the message loud and clear that the party is over. If you steal from the public, you had better be prepared to go to jail. We will continue doing everything in our power to make sure of it. I want to thank United States Attorney David C. Joseph and his staff for their usual outstanding work, as well as our partners at the FBI.”
The FBI, and State of Louisiana, Office of State Inspector General, conducted the investigation. Assistant U.S. Attorney Brian C. Flanagan and First Assistant U.S. Attorney Alexander C. Van Hook prosecuted the case.
# # #
WeLeakInfo.com Domain Name SeizedRead the Press Release
WASHINGTON – Today, the Federal Bureau of Investigation and the U.S. Department of Justice announced that they have seized the internet domain name weleakinfo.com. The announcement was made by U.S. Attorney Jessie K. Liu of the District of Columbia and Special Agent in Charge Timothy M. Dunham of the FBI’s Washington Field Office.
The website had claimed to provide its users a search engine to review and obtain the personal information illegally obtained in over 10,000 data breaches containing over 12 billion indexed records – including, for example, names, email addresses, usernames, phone numbers, and passwords for online accounts. The website sold subscriptions so that any user could access the results of these data breaches, with subscriptions providing unlimited searches and access during the subscription period (one day, one week, one month, or three months).
With execution of the warrant, the seized domain name – weleakinfo.com – is now in the custody of the federal government, effectively suspending the website’s operation. Visitors to the site will now find a seizure banner that notifies them that the domain name has been seized by federal authorities. The U.S. District Court for the District of Columbia issued the seizure warrant.
Any persons having information concerning weleakinfo.com or its owners and operators are encouraged to provide that information by filing a complaint (referencing #weleakinfo in the “Description of Incident” field) with the FBI’s Internet Crime Complaint Center (IC3) at https://www.ic3.gov/complaint/default.aspx.
The seizure is part of a comprehensive law enforcement action taken by the FBI, the U.S. Attorney’s Office for the District of Columbia, and the Department of Justice’s Computer Crime and Intellectual Property Section, along with international law enforcement, including the United Kingdom’s National Crime Agency, the Netherlands National Police Corps, the German Bundeskriminalamt (the Federal Criminal Police Office of Germany), and the Police Service of Northern Ireland.
Washington, D.C. Resident Sentenced for Violating the Toxic Substances Control ActRead the Press Release
A Washington, D.C. man was sentenced yesterday to 60 days’ incarceration, two years of supervised release, a $50,000 fine and 300 hours of community service for violating the Toxic Substances Control Act in the course of renovating a Washington, D.C., property without following lead-safe work practices and lead disclosure requirements.
Mohammad Sikder, 60, had previously pled guilty to these offenses on June 20, 2019, before the Honorable Amy Berman Jackson. Sikder’s solely held company, District Properties LLC, also pled guilty to making false statements, at Sikder’s direction, in 25 building permit applications to the District of Columbia Department of Consumer and Regulatory Affairs (DCRA). These applications understated the age of the homes being renovated, with the intent to avoid regulatory scrutiny of inadequate lead-based paint safety measures at those properties. Judge Jackson sentenced District Properties LLC to a $150,000 fine and two years’ probation with special condition of funding 3 lead-paint awareness seminars for real estate developers and contractors.
“Skirting laws that govern the use of toxic substances puts the public’s health at risk, and doing so will get you investigated and prosecuted,” said Jeffrey Bossert Clark, Assistant Attorney General for the Environment and Natural Resources Division. “Lead-safe work practices and disclosure requirements provide essential protections from lead exposure, and this case shows that business owners and individuals who violate them will get jail time and pay a substantial penalty.”
“The defendant is being held accountable for providing false information on the permit application concerning the age of the building and using untrained workers to remove lead paint from the property,” said Jennifer Lynn, Special Agent in Charge of EPA’s criminal enforcement program in the District of Columbia. “Today’s sentencing sends a clear signal that EPA and its law enforcement partners are committed to enforcing environmental laws that protect the health and safety of our communities.”
In 2018, the U.S. Environmental Protection Agency (EPA), Housing and Urban Development (HUD), and U.S. Health and Human Services (HHS) launched the Trump Administration’s Federal Lead Action Plan to Reduce Childhood Lead Exposures and Associated Health Impacts. EPA and the Justice Department are working together to investigate and prosecute those who violate lead-safe work practices and lead disclosure requirements under TSCA.
Lead poisoning continues to be a major environmental health problem in the United States, although it is completely preventable. The most common source of childhood lead poisoning is lead-based paint in older homes, and the primary exposure pathway is ingestion of lead-contaminated dust. Lead is a toxic substance that can cause permanent damage, and is regulated under the Toxic Substances Control Act. Under the Renovation, Repair and Painting Rule (RRP Rule), contractors performing renovation, repair and painting projects that disturb lead-based paint in homes, childcare facilities, and schools built before 1978 must be certified and must follow specific work practices to prevent lead contamination.
According to a statement of offense filed along with the plea agreements, Sikder and District Properties LLC purchased and renovated a property in Washington, D.C., without following the requirements of the RRP Rule. In 2014, the company submitted a building permit application to DCRA for addition, alteration, and repair of the property. At Sikder’s instruction, the employee submitting the permit application, under the section of the application titled “Lead Abatement,” falsely indicated that the property was built after 1978. During the summer and fall of 2014, a contractor conducted demolition at the property without following RRP Rule safe work practices. The demolition work included removing windows, removing interior and exterior painted surfaces, and removing floor and ceiling joists.
A Sept. 24, 2015, Occupational Safety and Health Administration inspection revealed multiple hazards, including employees performing manual demolition on a wall surface that had paint containing lead; the lack of an employee exposure assessment to determine actual employee exposure; the lack of lead training to employees; and proper sanitation practices not being followed. Sampling analysis showed lead present on the dump truck and employees’ hands. When the property was properly remediated and sold, Sikder and District Properties LLC did not provide the purchasers with this information and with a report documenting the prior existence of lead-based paint at the property.
Between 2011 and 2017, District Properties LLC submitted 25 renovation permit applications for properties in Washington, D.C., on which the company falsely represented that the properties had been built after 1978, thereby circumventing additional permitting requirements and avoiding EPA oversight with respect to RRP Rule compliance, which would be triggered by an accurate permit application.
The investigation was handled by the EPA-Criminal Investigations Division, in partnership with the Metropolitan Police Department Environmental Crimes Unit. Trial Attorney Cassandra J. Barnum of the Environmental Crimes Section is prosecuting the case.
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.
Washington man charged with aggravated sexual abuse of a minor under age 12Read the Press Release
HONOLULU, Hawaii – Shawn M. Wilcher, 37, of Tacoma, Washington, was indicted by a federal grand jury today with aggravated sexual abuse of a minor under the age of 12 in violation of 18 U.S.C. § 2241(c). The abuse occurred at Hickam Air Force Base, which is within federal jurisdiction in the District of Hawaii. Wilcher lived on this military base between 2015 and 2018 when he committed the offense. He was previously charged federally in the Western District of Washington for related offenses against the same minor. Kenji M. Price, U.S. Attorney for the District of Hawaii, made the announcement.
An indictment is merely an allegation, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. If convicted of the charges, Wilcher faces a mandatory minimum sentence of 30 years in prison.
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant U.S. Attorney Morgan Early.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Waldorf Man Sentenced to 20 Years in Federal Prison for Production of Child PornographyRead the Press Release
Greenbelt, Maryland - U.S. District Judge Paul W. Grimm sentenced Christopher Crawford, age 40, of Waldorf, Maryland to 20 years in federal prison, followed by 25 years of supervised release, for production of child pornography. The sentence was imposed on January 15, 2020. Judge Grimm also ordered that, upon his release from prison, Crawford must continue to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Henry P. Stawinski III of the Prince George’s County Police Department.
According to his guilty plea, on January 5, 2018, Crawford agreed to a search of his cellular phone as part of an investigation by the Prince George’s County Police Department, revealing videos and images of two minor female victims engaged in sexually explicit conduct, and documenting Crawford’s sexual abuse of the victims.
On February 15, 2018, search warrants were executed on Crawford’s residence and a vehicle. Law enforcement recovered electronic media and devices that contained files depicting the victims engaged in sex acts or simulated sex acts with Crawford, and other sexually explicit images.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Robert K. Hur commended the FBI and the Prince George’s County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Joseph R. Baldwin and Jessica C. Collins, who prosecuted the federal case.
# # #
U.S. Attorney’s Office Collects over $104M in Criminal and Civil Actions in 2019Read the Press Release
SACRAMENTO, Calif. — The U.S. Attorney’s Office collected $104,469,755 in criminal and civil actions during the fiscal year ending Sept. 30, 2019, U.S. Attorney McGregor W. Scott announced today. Of this amount, $78,774,806 was in civil actions and $25,694,949 was in criminal actions.
This office worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $1,947,052 in cases pursued jointly by these offices. Of this amount, $1,928,713 was collected in civil actions and $18,339 was collected in criminal actions. Working with other partner agencies and divisions, the office collected $23,712,892 in asset forfeiture actions. These figures represent funds actually received during the year, not judgments or settlements that have not yet been paid.
“Financial recoveries are a critical part of our mission to protect the public treasury and hold those who violate the law accountable for the injury they cause,” said U.S. Attorney Scott. “Each year, our recoveries for victims and taxpayers dwarf the total cost of operating our office. We will continue to aggressively pursue compensation from those who commit crimes and other wrongs in our district, to take the profit out of crime and to ensure that wrongdoers—not the public—bear the costs of unlawful conduct. I am enormously proud of these recoveries and other great accomplishments this year by all the dedicated public servants who work in this office.”
Major recoveries during this period include: $50.5 million from Health Net Federal Services for false claims submitted to the Department of Veterans Affairs under a contract to provide veterans with health care, $13.4 million in fraud proceeds forfeited from NBA executive Jeff David and restored to the Sacramento Kings, $9 million from Kernen Construction Co. and Bundy & Sons Logging for damages caused by a fire that burned more than 1,600 acres of the Shasta-Trinity National Forest, and $10 million from BMO Harris Bank N.A. to resolve allegations that the bank violated the Financial Institutions Reform, Recovery and Enforcement Act by engaging in a fraud.
U.S. Attorneys’ Offices and the Justice Department’s litigating divisions enforce and collect debts owed to the United States and to victims of federal crimes. Federal law requires defendants convicted of certain crimes to pay restitution to the victims for physical injury or financial loss. Criminal fines and felony assessments are distributed by the Department of Justice Crime Victims’ Fund to state victim-compensation and victim-assistance programs. Assets recovered through forfeitures are used to restore lost funds to crime victims, to reimburse forfeiture-related investigative expenses, and for other law-enforcement purposes authorized by Congress.
Most civil recoveries were from enforcement actions seeking compensation and penalties for frauds on federal programs or federally insured financial institutions, negligent destruction of National Forest land by fire, and violations of federal health, safety, civil rights, or environmental laws. Recoveries in civil enforcement actions are used primarily to return taxpayer funds to defrauded programs and for restoration of damaged public resources.
U.S. Attorney Davis Announces New Administrative OfficerRead the Press Release
BOISE – Joel M. Hawker is the District of Idaho’s new Administrative Officer, announced U.S. Attorney Bart M. Davis.
Mr. Hawker is an Idaho native and a graduate of Boise State University. He started with the U.S. Attorney’s Office in February 2003 as an IT Student Trainee. After graduating from Boise State in 2003 with a Bachelor of Business Administration in Networking and Telecommunications, he became the District’s IT Specialist. In January 2016, he was promoted to IT Systems Manager, where he served on the Department of Justice’s Information Technology Working Group (ITWG). The ITWG provides a comprehensive nationwide approach to share information and identify business requirements for IT investments transparent to all affected stakeholders.
In December 2019, USA Davis promoted Mr. Hawker to become the District’s new Administrative Officer. He will continue to aid the IT department and help hire his replacement in addition to filling the role of Administrative Officer.
“Throughout his tenure with the office, Joel has proven to be an invaluable colleague,” said U.S. Attorney Davis. “Joel brings unrivaled talent to the leadership team and I look forward to his contributions.”
# # #