Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Tuesday 26 November 2019
Methamphetamine Dealer Sentenced to 20 Years in PrisonRead the Press Release
A 32-year-old Tulsa man convicted of methamphetamine distribution and firearms violations has been sentenced today in U.S. District Court, announced U.S. Attorney Trent Shores.
U.S. District Judge Claire V. Eagan sentenced Veng Xiong to 20 years in prison followed by five years of supervised release.
On July 30, a jury found Xiong guilty of conspiring to possess with intent to distribute and to distributing 500 grams or more of methamphetamine, possession of a rifle and a short-barreled shotgun in furtherance of a drug trafficking crime, and being a felon in possession of firearms.
“Xiong has a lengthy history of trafficking drugs in northern Oklahoma. He actively pursued a criminal lifestyle and now will face 20 years in a federal prison for dealing meth in our communities,” said U.S. Attorney Trent Shores. “Because of the dedicated work performed by investigators and federal prosecutors in this case, Veng Xiong has been brought to justice and Oklahoma’s communities are safer.”
This just result is a direct reflection of excellent work of a multi-agency investigative team and two top-notch federal prosecutors, Ryan Roberts and Chris Nassar.”
During a methamphetamine trafficking investigation, Osage County Sheriff’s Deputies covertly set up a drug deal with an individual who agreed to sell thirty-three pounds of methamphetamine for $500,000. On April 9, 2018, the parties met at a predesignated location in rural Osage County in order to exchange the methamphetamine for cash. Xiong, along with three co-conspirators, arrived in two separate vehicles. At that time, the Osage County and Osage Nation Joint Tactical Response Team conducted a takedown and arrested the four suspects, including Xiong. Upon search of the vehicles, deputies found multiple firearms, including a Glock .40 caliber semi-automatic pistol, a Taurus .38 caliber special revolver, a Winchester 12 gauge shotgun with a sawed-off barrel, and a WASR-10, which is an AK-47 style 7.62x39mm semi-automatic rifle. Both the rifle and the shotgun were found in Xiong’s vehicle. Deputies discovered the handguns and more than five pounds of methamphetamine in the other car.
Xiong was also convicted on two previous occasions in Tulsa County District Court for trafficking in illegal drugs as well as convictions for possessing a firearm while in commission of a felony and for driving under the influence of alcohol.
The Osage County Sheriff’s Office; Osage Nation Tribal Police; FBI; Pawhuska Police Department; Bureau of Alcohol, Tobacco, Firearms and Explosives; and Oklahoma Bureau of Narcotics investigated the case. Assistant U.S. Attorneys Christopher J. Nassar and Ryan M. Roberts prosecuted the case.
Members of Newark’s ‘Famous Boyz’ Street Gang Admit Drug and Firearms OffensesRead the Press Release
NEWARK, N.J. – Members of the “Famous Boyz” street gang have admitted to firearms and narcotics distribution offenses as part of a drug trafficking conspiracy, U.S. Attorney Craig Carpenito announced today.
Shaka McKinney, 25, of Newark, pleaded guilty today before U.S. District Judge Madeline Cox Arleo to an information charging him with being a felon in possession of a firearm. He faces a maximum term of imprisonment of 10 years and a maximum fine of $250,000.
Jahid Vauters,” a/k/a “k”, a/k/a “KO,” 31, of Newark, pleaded guilty Nov. 25, 2019, before Judge Arleo to an information charging him with one count each of: conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin and 28 grams or more of cocaine base; possession with intent to distribute 28 grams or more of cocaine base; possessing two firearms and ammunition as a convicted felon; and possessing two firearms in furtherance of a drug trafficking crime. As part of his plea agreement, the parties have agreed to a sentence of 10 years in prison.
Karen Armstrong, 29, of Newark, pleaded guilty before Judge Arleo on Nov. 7, 2019 to an information charging her with one count of conspiracy to distribute and to possess with intent to distribute cocaine base and heroin.
Eugene Williams, a/k/a “Popa,” a/k/a “Papa,” 53, of Newark, pleaded guilty before Judge Arleo on Nov. 7, 2019, to an information charging him with one count of conspiracy to distribute and to possess with intent to distribute 280 grams or more of cocaine base and one count of conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin.
Saeed Dawes, a/k/a “Nasty,” 22, of Newark, pleaded guilty before Judge Arleo on Nov. 6, 2019, to an information charging him with one count of conspiracy to distribute and to possess with intent to distribute cocaine base and heroin.
In October 2018, McKinney, Vauters, Armstrong, Williams, and Dawes, and 12 other members of a violent drug trafficking conspiracy operating in Newark were charged by criminal complaint after a lengthy wiretap investigation with conspiracy to distribute crack cocaine and/or heroin. McKinney and Vauters were also charged with firearms offenses.
On Feb. 25, 2019, a grand jury returned a one-count indictment charging three of the defendants, Patricio Hernandez, Jonathan Hernandez, and Jonathan Garcia, a/k/a “Bebo,” with conspiracy to distribute and to possess with intent to distribute 280 grams or more of crack cocaine for their alleged participation in supplying the “Famous Boyz” with cocaine.
On Sept. 30, 2019, a grand jury returned a 21-count superseding indictment against the remaining defendants and Patricio Hernandez, Jonathan Hernandez, Garcia, Javon Holmes, a/k/a “J-Dot”, and John Mosley, a/k/a “Breezy,” a/k/a “Brazy.” The charges in the superseding indictment are pending against the remaining defendants.
According to the documents filed in this case and statements made in court:
The defendants are members and associates of the Famous Boyz – a subset of the Brick City Brims set of the Bloods street gang – which dealt significant quantities of heroin and crack cocaine, in the area of South 18th Street and 15th Avenue, in Newark. The gang often referred to this area as the “8 Block,” “18th,” or simply by reference to the number “8.”
Mosley was a primary source of narcotics for the Famous Boyz and often directed the gang’s drug operations. He and other members of the Famous Boyz shared narcotics, customers, and firearms with one another in furtherance of their narcotics trafficking activities, and they used juveniles to distribute narcotics and stash firearms. Patricio Hernandez and Jonathan Hernandez were among the main suppliers of crack cocaine to Mosley, while Vauters supplied Mosley with heroin. Heroin sold by Famous Boyz members, including Dawes, Armstrong and Williams, contained a fentanyl analogue, which is an extremely dangerous and highly addictive substance.
Members of the Famous Boyz used social media to promote the gang’s criminal activities, including by advertising their narcotics trafficking activities and proceeds and by threatening both rival gang members and any individuals who considered cooperating with law enforcement. Those members who sold narcotics also enriched themselves by committing other crimes, including robberies.
The heroin and crack cocaine conspiracy and heroin and crack cocaine distribution counts to which Vauters pleaded guilty each carry a maximum potential penalty of 40 years in prison, and a maximum fine of $5 million. In addition, the firearm possession count to which Vauters pleaded guilty carries a statutory mandatory minimum term of five years in prison, which must run consecutive to any other punishment.
The crack cocaine conspiracy count to which Williams pleaded guilty carries a maximum penalty of life imprisonment, and a maximum fine of $10 million. The heroin conspiracy to which Williams pleaded guilty carries a maximum potential penalty of 40 years in prison, and a maximum fine of $5 million.
The heroin and crack cocaine conspiracy counts to which Dawes and Armstrong pleaded guilty each carry a maximum penalty of 20 years in prison, and a maximum fine of $1 million.
U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson in Newark, and officers of the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose, with the investigation.
He also thanked the special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; the N.J. State Police, under the direction of Col. Patrick J. Callahan; the Belleville Police Department, under the direction of Chief Mark Minichini; and the Livingston Police Department, under the direction of Chief Gary Marshuetz, for their assistance with the investigation.
This investigation is part of the Violent Crime Initiative (VCI) in Newark. The VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety to combat violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA New Jersey Division, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, N.J. State Board of Parole, Union County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, N.J. Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
The government is represented by Deputy Chief of the Criminal Division Mary E. Toscano and Assistant U.S. Attorney Angelica M. Sinopole of the U.S. Attorney’s Office’s Organized Crime and Gangs Unit in Newark.
The charges and allegations against the remaining defendants are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Maxton Man Sentenced for Possession with Intent to Distribute CocaineRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, Chief United States District Judge Terrence W. Boyle sentenced BENDA RAY LOCKLEAR, 46, of Maxton, North Carolina to 84 months imprisonment, followed by 5 years of supervised release.
LOCKLEAR was named in a Criminal Information filed on July 25, 2019 charging him with possession with intent to distribute 5 kilograms or more of a mixture and substance containing a detectable amount of cocaine. On August 26, 2019, LOCKLEAR pled guilty to the charge.
In March 2018, investigators with the Drug Enforcement Administration and the Robeson County Sheriff’s Office in Lumberton, North Carolina, began investigating the suspected drug trafficking activities of a defendant in Robeson County. The investigation established that individual was working with LOCKLEAR to bring approximately 16 kilograms of cocaine to Robeson County.
Investigators determined, on March 21, 2018, that several of the kilograms of cocaine had been sold, and that LOCKLEAR was in possession of several thousand dollars of drug sale proceeds at his residence. Additionally, it was determined that LOCKLEAR still possessed eight of the kilograms of cocaine.
On March 22, 2018, investigators conducted a traffic stop of a vehicle being driven by LOCKLEAR, and then searched his residence. Agents recovered a vehicle battery that had been hollowed out, as well as heat-sealed bags. Investigators then searched another residence, and found $193,960. Finally, a search of a residence in Maxton, North Carolina resulted in the seizure of eight kilograms of cocaine.
Subsequently, LOCKLEAR admitted to investigators that on March 20, 2018, he had received four hollowed out batteries containing 16 a total of kilograms of cocaine.
This case is part of the United States Attorney’s Office’s Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement. For additional information about this initiative, click here https://www.justice.gov/usao-ednc/tbnc.
The Drug Enforcement Administration (DEA) and the Robeson County Sheriff’s Office investigated this case. Assistant United States Attorney Scott Lemmon represented the government.
Major Marijuana Distributor Sentenced for Money LaunderingRead the Press Release
St. Louis, MO –Cedric T. Davis, Jr., 21, of American Canyon, California, was sentenced to 46 months imprisonment for his role in a conspiracy to launder drug proceeds via Moneygrams. Davis appeared in federal court today before United States District Judge Henry E. Autrey.
According to court documents, from January 2016, and continuing through February 21, 2018, Cedric Davis’s co-defendants Jack Huck, Joey Hope, and others imported to the Eastern District of Missouri multi-pound amounts of marijuana from Davis, who acted as the source of the supply located in California. Upon receipt of the marijuana, Davis’s co-defendants and others distributed it within the Eastern District of Missouri and elsewhere.
Once distributed, the co-defendants and others at their behest collected the proceeds of the marijuana sales. Those individuals, including co-defendants Jack Huck, Joey Hope, and others, then wired or caused to be wired the proceeds to Cedric Davis in California via MoneyGrams purchased at various outlets, including Wal-Mart stores. The MoneyGrams were payment for previously shipped marijuana as well as for pending marijuana shipments. Davis, or others acting as his direction, then cashed the MoneyGrams in California. In some instances, Davis had other individuals cash the MoneyGrams on his behalf in order to conceal and disguise the nature, location, source, ownership, and control of the cash proceeds.
All other co-defendants charged as part of the conspiracy have pled guilty and have been sentenced or are pending sentencing.
This case was investigated by the Missouri Highway Patrol, Ste. Genevieve Police Department, Homeland Security Investigations, and the Warren County Sheriff’s Department. Assistant U.S. Attorney Stephen Casey is handling the case.
Local Rapper and Associate of Violent Drug Gang Indicted for Witness TamperingRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Charles Salley, a/k/a “Dark Lo,” a/k/a “Ron Harvey,” 37, of Clayton, Delaware, was charged by Indictment with witness tampering.
The Indictment alleges that on November 6, 2019, during the trial United States vs. Abdul West, et al. involving members of a violent drug trafficking organization known as “Original Block Hustlaz” (or OBH), a cooperating witness received a threatening letter from Salley under the pen name “Ron Harvey,” a pseudonym Salley has used in various rap songs. The Indictment further alleges that Salley, who also goes by the stage name “Dark Lo,” threatened physical violence against the cooperating witness and others if the witness testified at trial against Salley’s OBH associates.
On November 13, 2019, United States Magistrate Judge Lynne A. Sitarski ordered Salley detained in federal custody pending trial in this matter.
“Witness intimidation has no place in the criminal justice system and will be dealt with swiftly and harshly,” said U.S. Attorney McSwain. “This is not a game. If you attempt to intimidate a federal witness, you can stand by for the consequences.”
If convicted, the defendant faces a maximum possible sentence of 20 years’ imprisonment and a fine.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Justin Ashenfelter.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Leader and Courier of Multi-Kilogram Heroin Trafficking Organization SentencedRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announces that TERRENCE CORNEILUS CLYBURN, 45, of Clarkton, NC, and TARA FINIS SIMMONS, 48, of Raleigh, NC, were sentenced yesterday by United States District Judge Louise W. Flanagan. CLYBURN was sentenced to 147 months imprisonment and 5 years of supervised release. SIMMONS was sentenced to 28 months of imprisonment and 5 years of supervised release.
On October 19, 2018, CLYBURN pled guilty to conspiracy to distribute and possess with intent to distribute one kilogram or more of a mixture and substance containing a detectable amount of heroin and a quantity of marijuana, Schedule I controlled substances; possession with intent to distribute one hundred (100) grams or more of a mixture and substance containing a detectable amount of heroin, and aiding and abetting; and, possession with intent to distribute one hundred (100) grams or more of a mixture and substance containing a detectable amount of heroin and a quantity of marijuana, and aiding and abetting.
On April 8, 2019, SIMMONS pled guilty to conspiracy to distribute and possess with intent to distribute one hundred (100) grams or more of heroin.
In March 2016, an investigation was initiated by the Tar River Regional Drug Task Force (TRRDTF), led by the Nash County Sheriff’s Office, into a drug trafficking organization (DTO) headed by TERRENCE CLYBURN, which was operating out of Scotland Neck, Tarboro, and Nash County, North Carolina. Law enforcement received information that members of the DTO had made several trips to Paterson, New Jersey, to acquire large quantities of heroin for distribution in Nash, Edgecombe, and Halifax Counties.
On March 13, 2017, as DTO members, Herbert Cherry and Tony Reams, returned from a trip to Paterson, New Jersey, an officer observed a vehicle driven by Cherry speeding and weaving between traffic lanes in Halifax County. A canine was utilized to conduct an exterior narcotics sniff of the vehicle, which resulted in an alert on the vehicle’s trunk. A search of the vehicle resulted in the seizure of 694 bricks of heroin (approximately 470 grams of heroin) which were packaged in 34,722 bindles and hidden in a false-bottom suitcase and a laundry bag located in the trunk.
On August 16, 2017, the North Carolina State Highway Patrol conducted a traffic stop of another vehicle operated by the DTO, which was occupied by TARA SIMMONS and Charles Lee Wright. The vehicle was stopped for a speeding violation in Halifax County. Investigators detected the odor of marijuana emanating from the vehicle and determined that SIMMONS was the driver of the vehicle. A canine was utilized to scan the vehicle, which alerted to the rear of the vehicle. Located near the spare tire in the rear of the vehicle, investigators recovered 13 grams of marijuana and approximately 102 bricks of heroin. Each “brick” contained 50 “bindles,” or dosage units, of heroin. The drugs seized totaled 110 grams of heroin.
The investigation revealed that from approximately 2012 to 2017, the DTO trafficked approximately 14.4 kilograms of heroin.
All defendants charged in this investigation have now been convicted:
- Terrence Corneilus Clyburn
- Tyshawn Rayvon Reams
- Tony Ray Reams
- Herbert Lamont Cherry
- Charles Lee Wright
- Tara Finis Simmons
- Patrick Direece Holiday
- Mario Marelle Scott
This case is part of the United States Attorney’s Office’s Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement. For additional information about this initiative, click here https://www.justice.gov/usao-ednc/tbnc.
The Nash County Sheriff’s office, Edgecombe Sheriff’s Office, the Halifax County Sheriff’s Office, the Bladen County Sheriff’s Office, the Wake County Sheriff’s Office, the Spring Hope Police Department, and the Tarboro Police Department investigated this case. Assistant United States Attorney Scott Lemmon prosecuted this case for the government.
Laboratory to Pay $26.67 Million to Settle False Claims Act Allegations of Illegal Inducements to Referring PhysiciansRead the Press Release
Laboratory Boston Heart Diagnostics Corporation (Boston Heart), of Framingham, Massachusetts, has agreed to pay $26.67 million to resolve False Claims Act allegations involving payments for patient referrals in violation of the Anti-Kickback Statute and the Stark Law, as well as claims otherwise improperly billed to federal healthcare programs for laboratory testing, the Department of Justice announced today.
The settlement announced today resolves allegations that Boston Heart conspired with others to pay doctors kickbacks disguised as investment returns. From 2015 to 2017, Boston Heart allegedly agreed to provide laboratory testing services to small Texas hospitals in exchange for per-test payments. To generate more referrals for the hospitals and more money for itself, Boston Heart allegedly coordinated with the hospitals’ independent marketers, who set up companies known as management service organizations (MSOs), to make payments to referring physicians that were disguised as investment returns but were actually based on, and offered in exchange for, the physicians’ referrals. Boston Heart allegedly helped the MSOs identify physician targets, referred interested physicians to the MSOs to secure their business, and participated with the MSOs in sales pitches to offer physicians money in exchange for referrals. As a result, physicians allegedly referred patients to the Texas hospitals and Boston Heart for laboratory tests performed by Boston Heart, which were then billed to Medicare, Medicaid, and TRICARE.
“Paying kickbacks to doctors in exchange for referrals undermines the integrity of federal healthcare programs,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “We will hold accountable those who enter into unlawful agreements that harm taxpayers, corrupt doctors’ medical judgment, and subject patients to expensive and unnecessary testing.”
“This company created lots of complex relationships to try to hide what it was doing, and that is illegally paying kickbacks for medical referrals,” said US Attorney Joseph D. Brown for the Eastern District of Texas. “The law requires that medical decisions be made based on what is best for the patient, not on what financially benefits the healthcare provider. Doctors and hospitals need to understand that these kinds of violations will be pursued.”
“This office will continue to take all appropriate action to help prevent improper inducements that can corrupt the integrity of physician decision-making,” said U.S. Attorney McGregor W. Scott for the Eastern District of California.
“When medical companies pursue profits by paying kickbacks to doctors, they undermine our health care system,” said U.S. Attorney Jessie K. Liu for the District of Columbia. “This settlement represents our continued commitment to fight aggressively to protect patients and the integrity of federal health care programs.”
“Schemes designed to defraud federal healthcare programs undermine our healthcare system by driving up medical costs, wasting taxpayer dollars, and often harming patients,” said Special Agent in Charge C.J. Porter of the Office of Inspector General at the U.S. Department of Health and Human Services (OIG-HHS). “This settlement shows our unwavering commitment to working closely with our law enforcement partners to hold accountable those misusing healthcare funds, regardless of the complexity of the scheme used to circumvent laws and regulations.”
“The Defense Criminal Investigative Service (DCIS), in partnership with our federal law enforcement partners, will continue to aggressively investigate those who defraud the federal government, and ultimately the American taxpayers, in order to protect the integrity of federal healthcare programs,” said Special Agent in Charge Michael C. Mentavlos of the DCIS Southwest Field Office. “Fraud and abuse pose a significant threat to the viability of TRICARE, the Department of Defense’s healthcare program for service members, retirees, and their families.”
The settlement also resolves allegations that Boston Heart conspired with the Texas hospitals and others to submit claims for outpatient laboratory testing for patients who were not hospital outpatients, in order to receive higher reimbursements from federal healthcare programs.
In addition, the settlement resolves allegations that Boston Heart directly or indirectly paid processing and handling fees, waived patient copayments and deductibles, and provided physician practices with in-office dietitians in exchange for physician referrals for laboratory testing. Those allegations were originally made in two cases filed under the whistleblower, or qui tam, provision of the False Claims Act. The act permits private parties to sue for fraud on behalf of the United States and to share in any recovery. The whistleblowers will receive approximately $4.36 million of the settlement.
The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded programs. The Stark Law forbids a laboratory from billing Medicare and Medicaid for certain services referred by physicians that have a financial relationship with the laboratory. The Anti-Kickback Statute and the Stark Law are intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.
The civil settlement was the result of an investigation by the Commercial Litigation Branch of the Justice Department’s Civil Division, the U.S. Attorney’s Offices for the Eastern District of Texas, District of Columbia, and Eastern District of California, OIG-HHS, and DCIS. The two lawsuits are captioned United States ex rel. Riedel v. Boston Heart Diagnostics Corp., No. 1:12-cv-1423 (D.D.C.) and United States ex rel. FBH1 LLC v. Boston Heart Diagnostics Corp., No. 2:17-cv-2061 (E.D. Cal.). The claims resolved by the settlement are allegations only and there has been no determination of liability.
The government’s pursuit of these matters illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800‑HHS‑TIPS (800-447-8477).
Laboratory to Pay $26.67 Million to Settle False Claims Act Allegations of Illegal Inducements to Referring PhysiciansRead the Press Release
WASHINGTON – Laboratory Boston Heart Diagnostics Corporation (Boston Heart), of Framingham, Massachusetts, has agreed to pay $26.67 million to resolve False Claims Act allegations involving payments for patient referrals in violation of the Anti-Kickback Statute and the Stark Law, as well as claims otherwise improperly billed to federal healthcare programs for laboratory testing, the Department of Justice announced today.
The settlement announced today resolves allegations that Boston Heart conspired with others to pay doctors kickbacks disguised as investment returns. From 2015 to 2017, Boston Heart allegedly agreed to provide laboratory testing services to small Texas hospitals in exchange for per-test payments. To generate more referrals for the hospitals and more money for itself, Boston Heart allegedly coordinated with the hospitals’ independent marketers, who set up companies known as management service organizations (MSOs), to make payments to referring physicians that were disguised as investment returns but were actually based on, and offered in exchange for, the physicians’ referrals. Boston Heart allegedly helped the MSOs identify physician targets, referred interested physicians to the MSOs to secure their business, and participated with the MSOs in sales pitches to offer physicians money in exchange for referrals. As a result, physicians allegedly referred patients to the Texas hospitals and Boston Heart for laboratory tests performed by Boston Heart, which were then billed to Medicare, Medicaid, and TRICARE.
“Paying kickbacks to doctors in exchange for referrals undermines the integrity of federal healthcare programs,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “We will hold accountable those who enter into unlawful agreements that harm taxpayers, corrupt doctors’ medical judgment, and subject patients to expensive and unnecessary testing.”
“This company created lots of complex relationships to try to hide what it was doing, and that is illegally paying kickbacks for medical referrals,” said US Attorney Joseph D. Brown for the Eastern District of Texas. “The law requires that medical decisions be made based on what is best for the patient, not on what financially benefits the healthcare provider. Doctors and hospitals need to understand that these kinds of violations will be pursued.”
“This office will continue to take all appropriate action to help prevent improper inducements that can corrupt the integrity of physician decision-making,” said U.S. Attorney McGregor W. Scott for the Eastern District of California.
“When medical companies pursue profits by paying kickbacks to doctors, they undermine our health care system,” said U.S. Attorney Jessie K. Liu for the District of Columbia. “This settlement represents our continued commitment to fight aggressively to protect patients and the integrity of federal health care programs.”
“Schemes designed to defraud federal healthcare programs undermine our healthcare system by driving up medical costs, wasting taxpayer dollars, and often harming patients,” said Special Agent in Charge C.J. Porter of the Office of Inspector General at the U.S. Department of Health and Human Services (OIG-HHS). “This settlement shows our unwavering commitment to working closely with our law enforcement partners to hold accountable those misusing healthcare funds, regardless of the complexity of the scheme used to circumvent laws and regulations.”
“The Defense Criminal Investigative Service (DCIS), in partnership with our federal law enforcement partners, will continue to aggressively investigate those who defraud the federal government, and ultimately the American taxpayers, in order to protect the integrity of federal healthcare programs,” said Special Agent in Charge Michael C. Mentavlos of the DCIS Southwest Field Office. “Fraud and abuse pose a significant threat to the viability of TRICARE, the Department of Defense’s healthcare program for service members, retirees, and their families.”
The settlement also resolves allegations that Boston Heart conspired with the Texas hospitals and others to submit claims for outpatient laboratory testing for patients who were not hospital outpatients, in order to receive higher reimbursements from federal healthcare programs.
In addition, the settlement resolves allegations that Boston Heart directly or indirectly paid processing and handling fees, waived patient copayments and deductibles, and provided physician practices with in-office dietitians in exchange for physician referrals for laboratory testing. Those allegations were originally made in two cases filed under the whistleblower, or qui tam, provision of the False Claims Act. The act permits private parties to sue for fraud on behalf of the United States and to share in any recovery. The whistleblowers will receive approximately $4.36 million of the settlement.
The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded programs. The Stark Law forbids a laboratory from billing Medicare and Medicaid for certain services referred by physicians that have a financial relationship with the laboratory. The Anti-Kickback Statute and the Stark Law are intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.
The civil settlement was the result of an investigation by the Commercial Litigation Branch of the Justice Department’s Civil Division, the U.S. Attorney’s Offices for the Eastern District of Texas, District of Columbia, and Eastern District of California, OIG-HHS, and DCIS. The two lawsuits are captioned United States ex rel. Riedel v. Boston Heart Diagnostics Corp., No. 1:12-cv-1423 (D.D.C.) and United States ex rel. FBH1 LLC v. Boston Heart Diagnostics Corp., No. 2:17-cv-2061 (E.D. Cal.). The claims resolved by the settlement are allegations only and there has been no determination of liability.
The government’s pursuit of these matters illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800‑HHS‑TIPS (800-447-8477).
# # #
Knoxville resident pleads guilty to wire fraud and money laundering schemeRead the Press Release
Knoxville, Tenn. – On November 25, 2019, Christina Erin Myers, 37, of Lenoir City, entered a guilty plea to one count of wire fraud and one count of money laundering in the United States District Court for the Eastern District of Tennessee.
Myers faces a term of 20 years in prison, potential fines of up to $750,000, and the obligation of paying more than $405,000 in restitution to her victims.
As part of the plea agreement filed with the court, the defendant admitted to engaging in a scheme to defraud elderly individuals by diverting funds that victims had provided to her for the purchase of real estate from Tennessee Baptist Adult Homes, through marketing non-existent senior communities, and promoting fictitious investments opportunities.
On October 16, 2018, a six-count indictment, that included the aforementioned charges, was returned against Myers by a federal grand jury in Knoxville. This indictment was the result of an ongoing investigation by the Internal Revenue Service – Criminal Investigation, Lenoir City Police Department and the Tennessee Highway Patrol (THP).
Sentencing has been set for March 25, 2020, at 11:00 a.m., in United States District Court in Knoxville.
"Protecting our seniors has been and will continue to be a top priority of our office. Working with our local, state, and federal law enforcement partners, we will investigate and build cases for successful prosecution of these individuals who choose to victimize some of our most vulnerable citizens. I encourage everyone to speak out and tell someone in authority if they have been a victim of elder abuse or financial fraud. Please do not remain silent,” added U.S. Attorney Overbey.
Frank M. Dale, Jr., Assistant United States Attorney, represented the United States.
###
Kingston Woman Sentenced to 72 Months’ Imprisonment for Drug Trafficking and Firearms OffensesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on November 25, 2019, Shavonne Saxon, age 32, of Kingston, Pennsylvania, received a sentence of 72 months’ imprisonment and three years of supervised release, by United States District Court Judge Malachy E. Mannion, for distributing crack cocaine, and for possessing a firearm in furtherance of her drug trafficking.
According to United States Attorney David J. Freed, Saxon admitted to working as a drug dealer in 2016 and 2017, and to distributing and possessing with intent to distribute at least 60 grams of crack cocaine and at least 165 grams of cocaine. Saxon also admitted to possessing a firearm in furtherance of her trafficking activities, and the United States seized from her and forfeited a Ruger LCP .380.
Saxon was one of 16 individuals charged in 2017 with various drug trafficking and firearms offenses. All of the defendants have pleaded guilty, with 13 others having already been sentenced:
- Kassandra Martin of Wilkes-Barre, Pennsylvania, was sentenced to 60 months’ imprisonment;
- Joshua Lenchick of Luzerne, Pennsylvania, was sentenced to 60 months’ imprisonment;
- Kristyna Shotwell of Plymouth, Pennsylvania, was sentenced to 12 months and one day of imprisonment;
- Tanay Jones of Bronx, New York, was sentenced to a time served sentence of 19 days’ imprisonment;
- William Waring of Bronx, New York, was sentenced to 60 months’ imprisonment;
- John Maybank of Bronx, New York, was sentenced to 53 months’ imprisonment;
- Siobhan Daniels, of Wilkes-Barre, Pennsylvania, was sentenced to 30 months’ imprisonment;
- Luis Nevarez, of Bronx, New York, was sentenced to 60 months’ imprisonment;
- Adonis Smith, of New London, Connecticut, was sentenced to 60 months’ imprisonment;
- Cara Dubaskas, of Plymouth, Pennsylvania, was sentenced to a time served sentence of 7 months;
- Chad Eckrote, of Plymouth, Pennsylvania, was sentenced to 3 years of probation;
- Adam Gottstein, of Kingston, Pennsylvania, was sentenced to 78 months’ imprisonment; and
- Amanda Romano, of Wilkes-Barre, Pennsylvania, was sentenced to 84 months’ imprisonment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Luzerne County Drug Task Force, and by the Kingston Police Department. Assistant U.S. Attorney Phillip J. Caraballo prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. 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 law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
# # #
Kettering man sentenced to more than 5 years in prison for possessing child pornographyRead the Press Release
DAYTON – Stephen Lavery, 35, of Kettering, was sentenced in U.S. District Court to 66 months in prison and five years of supervised release for possessing child pornography.
According to court documents, law enforcement received a tip from the National Center for Missing and Exploited Children (NCMEC) that suspected child pornography files had been uploaded to Lavery’s Dropbox account. Likewise, Microsoft Corporation reported to NCMEC that Lavery’s IP address had been used to upload suspected child pornography files to the Bing Images search engine. Additionally, the video-sharing website Rabb.it reported Lavery, using the profile name “Jerkin Hard,” shared suspected child pornography on the website.
In May 2018, law enforcement officers executed a search warrant at Lavery’s home in Kettering. Officers discovered more than 600 images and videos of minors engaged in sexually explicit conduct, including visual depictions of prepubescent children.
Lavery pleaded guilty to in Dec. 2018.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Joseph M. Deters, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Kettering Police Chief Christopher N. Protsman announced the sentence imposed by Senior U.S. District Court Judge Thomas M. Rose. Assistant United States Attorney Andrew J. Hunt is representing the United States in this case.
# # #
Jury Convicts St. Paul Police Officer of Excessive ForceRead the Press Release
Today, a federal jury convicted Brett Palkowitsch, 32, an officer with the St. Paul Police Department, of using excessive force against an unarmed civilian, announced Assistant Attorney General Eric Dreiband of the Civil Rights Division and FBI Minneapolis Special Agent in Charge Jill Sanborn.
“The behavior of the defendant will not be tolerated and the Department of Justice will seek to prosecute those who abuse their power,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “We commend the officers who came forward and brought about the opening of the investigation. We also thank our law enforcement partners who assisted in this case.”
"Law enforcement officers receive certain powers from the government so they can protect the rights of the citizens they serve," said FBI Minneapolis Special Agent in Charge, Jill Sanborn. "When an individual officer’s actions violate that trust, he or she should be held accountable which the jury confirmed with today's verdict. We thank all those who assisted on this case," Sanborn added.
The evidence presented at trial established that the Defendant and other officers responded to a 911 call alleging that an unidentified black male with dreadlocks and a white t-shirt had been involved in a street fight and was carrying a gun. Upon their arrival on scene, officers found no evidence of any street fight, but they noticed one man who matched that general description, sitting in his car talking on a cellphone. One of the responding officers, along with his police K-9, approached the man’s car and, without identifying himself as a police officer, yelled at the man to get out. The man, later identified as Frank Baker, got out of the car, as the officer yelled commands and the police K-9 barked loudly at him. Seven seconds later, the officer released the K-9, which took Mr. Baker to the ground and began mauling his leg. While Mr. .Baker was on the ground, screaming in pain, the Defendant arrived and kicked Mr. Baker three times in the ribs. The defendant’s kicks broke seven of Mr. Baker’s ribs and caused both of his lungs to collapse, putting him in critical condition. Officers found no gun at the scene and no evidence that Mr. Baker, a 52-year-old grandfather who lived in the neighborhood, had been involved in any fight.
Two of the officers who witnessed the defendant’s actions that night, Officers Joseph Dick and Anthony Spencer, reported the Defendant to their supervisor. Mr. Dick and Mr. Spencer both testified for the government at trial, about the defendant’s use of force and about harassment and retaliation they suffered after stepping forward to report a fellow officer. Dick, Spencer, and a third officer from the scene told the jury that they saw no legitimate reason for the defendant’s kicks. Additionally, officers testified that the defendant boasted afterward about having kicked Mr. Baker.
Following more than two weeks of trial, the jury in the U.S. District Court in St. Paul, MN, deliberated for 11 hours before finding the Defendant guilty of using excessive force.
The Defendant faces a maximum sentence of 10 years in federal prison. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case was investigated by the Minneapolis Division of the FBI, and was prosecuted by Special Litigation Counsel Christopher J. Perras and Trial Attorney Zachary Dembo of the Justice Department’s Civil Rights Division.
Jury Convicts Georgia Attorney for Attempting to Entice A Minor to Engage in Sexual Activity and Transmitting Obscene Material to A MinorRead the Press Release
Tampa, Florida – A federal jury has found Richard Franklin Jensen, III (33, Atlanta) guilty of attempted enticement of a minor and attempted transfer of obscene material to a minor. He faces a minimum mandatory penalty of 10 years, and up to life, in federal prison. His sentencing hearing is scheduled for March 4, 2020.
Jensen was indicted on February 20, 2019.
According to evidence presented at trial, between May 23 and June 1, 2015, Jensen communicated on a social media website, via email, and over text messages, with someone he believed to be a single mom looking for a man to sexually abuse her 12-year-old daughter. In reality, Jensen was talking to an undercover agent. During the conversations, Jensen told the “mom” that he was the guy that she had been looking for, who was interested in sexually abusing the child, and that he was willing to travel from Atlanta to the Tampa Bay area to teach the “child” about sex and the “art of pleasing a man.” In addition to providing graphic details about the sexual abuse he wanted to perform on the child, Jensen asked the “mom” to prepare the child for the sexual encounter by breaking the child’s hymen in advance of his visit to Tampa. Jensen planned to abuse the child over a period of time, stating that “it couldn’t be a one-time thing.” In his process of grooming the child, Jensen promised to buy “sexy big girl clothes and underwear,” complimented the child’s “sexy little body,” and wanted the “mom” to let the child watch pornography so the child could prepare for sex with Jensen.
Jensen also emailed and messaged the purported child, and graphically described the sexual abuse that he wished to engage in with the child. He sent multiple pictures of his genitalia to the “mom,” to share with the child.
This case was investigated by the Homeland Security Investigations. It is being prosecuted by Assistant United States Attorneys Lisa M. Thelwell and Francis D. Murray.
This is another case 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.
Illegal Alien Sentenced for Unlawful Reentry by an Alien After RemovalRead the Press Release
Gulfport, Miss. – Benjamin Sanchez-Perez, 28, a citizen of Mexico, was sentenced today by Senior U.S. District Judge Louis Guirola, Jr., to time served and one year of supervised release for unlawful reentry by an alien after removal, announced U.S. Attorney Mike Hurst, Jere T. Miles, Special Agent in Charge of Immigration & Customs Enforcement, Homeland Security Investigations in New Orleans, and Gregory Bovino, Chief Patrol Agent of the Border Patrol, New Orleans Sector.
On September 12, 2019, a Harrison County Sheriff’s Department Interdiction Unit Agent stopped a Sport Utility Vehicle on Interstate 10 eastbound. Indicators of illegal alien smuggling were detected and a Border Patrol Agent arrived to assist. Agents made contact with the driver of the vehicle who did not have a valid driver’s license. Among the passengers were three men, including Sanchez-Perez, who were determined to be illegal aliens to the United States who had returned after being formally removed from the U.S. All vehicle occupants were transported to the Border Patrol Station in Gulfport, for further processing and investigation.
Sanchez-Perez was determined to have entered the United States through Nuevo Laredo, Mexico, about four days before his arrest in Mississippi. Further investigation revealed that Sanchez-Perez had been previously removed from the United States by Immigration and Customs Enforcement in March, 2019. At the time of his removal, Sanchez-Perez was prohibited from entering, attempting to enter, being in the United States, or applying for admission to the United States, for at least five years.
Sanchez-Perez pled guilty before Judge Guirola on October 28, 2019.
U.S. Attorney Hurst praised the cooperation exhibited by the U.S. Department of Homeland Security, Homeland Security Investigations, the U.S. Border Patrol, and the Harrison County Sheriff’s Department. Assistant U.S. Attorney Stan Harris is the prosecutor for the case.
Illegal Alien Pleads Guilty to Unlawful Return After RemovalRead the Press Release
Gulfport, Miss. – Yesenia Flores-Ortega, 27, an illegal alien from Mexico, pled guilty yesterday before Senior U.S. District Judge Louis Guirola, Jr., to unlawful reentry by an alien after removal, announced U.S. Attorney Mike Hurst, Special Agent in Charge Jere T. Miles with Immigration & Customs Enforcement's Homeland Security Investigations in New Orleans, and Gregory K. Bovino, Chief Patrol Agent of the Border Patrol’s New Orleans Sector.
Flores-Ortega is scheduled to be sentenced on February 25, 2020. She faces a potential 2 years in prison, 1 year of supervised release, and a $250,000 fine, as well as Homeland Security removal proceedings.
On September 12, 2019, a Harrison County Sheriff’s Department Interdiction Unit Agent stopped a Sport Utility Vehicle on Interstate 10 eastbound. Agents made contact with Flores-Ortega, who was the driver of the vehicle. Flores-Ortega and her three passengers were determined to be illegal aliens to the United States who had returned after being removed.
Flores-Ortega had been removed pursuant to a lawful Removal Order signed on January 27, 2015. She was charged in a federal criminal indictment with unlawful return of an alien after removal. Each of the three passengers were also prosecuted and pled guilty to the same crime.
U.S. Attorney Hurst praised the cooperation exhibited by the U.S. Department of Homeland Security, Homeland Security Investigations, the U.S. Border Patrol, and the Harrison County Sheriff’s Department. Assistant U.S. Attorney Stan Harris is the prosecutor for the case.
ICYMI: Attorney General William P. Barr Launches National Strategy to Address Missing and Murdered Indigenous PersonsRead the Press Release
WASHINGTON—Attorney General William P. Barr launched a national strategy last week to address missing and murdered Native Americans. The Missing and Murdered Indigenous Persons (MMIP) Initiative places MMIP coordinators in 11 U.S. Attorney’s offices including the District of Oregon who will develop protocols for a more coordinated law enforcement response to missing cases. The plan also calls for the deployment of the FBI’s most advanced response capabilities when needed, improved data collection and analysis, and training to support local response efforts.
“American Indian and Alaska Native people suffer from unacceptable and disproportionately high levels of violence, which can have lasting impacts on families and communities. Native American women face particularly high rates of violence, with at least half suffering sexual or intimate-partner violence in their lifetime. Too many of these families have experienced the loss of loved ones who went missing or were murdered,” said Attorney General William P. Barr. “This important initiative will further strengthen the federal, state, and tribal law enforcement response to these continuing problems.”
“The FBI recognizes the violence that tribal communities face and is fully committed to working with our federal, state, local, and tribal law enforcement partners to provide support to those impacted by these crimes,” said FBI Director Christopher Wray. “We are dedicated to delivering justice and to the FBI’s mission to protect all the people we serve. We reaffirm our focus on allocating resources to serve Native American needs.”
“I’m proud to join Attorney General Barr and Director Wray in announcing this new effort by the Justice Department to address the important and urgent issues attendant to missing and murdered indigenous people. These are real crime victims and their families who have been impacted by inadequate data collection and jurisdictional gaps,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “Pursuing justice on behalf of tribal communities in Oregon is a top priority for the U.S. Attorney’s Office. We have always been deeply committed to reducing violent crime in tribal communities, especially crimes against tribal women and children. Our Indian Country team works tirelessly to be good partners with tribal law enforcement and victim services.”
The strategy has three parts.
Establish MMIP coordinators: The Department of Justice is investing an initial $1.5 million to hire 11 MMIP coordinators in 11 states to serve with all U.S. Attorney’s offices in those states, and others who request assistance. The states are Alaska, Arizona, Montana, Oklahoma, Michigan, Utah, Nevada, Minnesota, Oregon, New Mexico, and Washington state. MMIP coordinators will work closely with federal, tribal, state and local agencies to develop common protocols and procedure for responding to reports of missing or murdered indigenous people. The first MMIP coordinator is already on board in Montana.
Specialized FBI Rapid Deployment Teams: The strategy will bring needed tools and resources to law enforcement. Upon request by a tribal, state, or local law enforcement agency the FBI will provide expert assistance based upon the circumstances of a missing indigenous persons case. FBI resources and personnel which may be activated to assist with cases include: Child Abduction Rapid Deployment (CARD) teams, Cellular Analysis Support Teams, Evidence Response Teams, Cyber Agents for timely analysis of digital evidence/social media, Victim Services Division Response Teams, and others. MMIP coordinators will assist in developing protocols.
Comprehensive Data Analysis: The department will perform in-depth analysis of federally supported databases and analyze data collection practices to identify opportunities to improve missing persons data and share the results of this analysis with our partners in this effort.
More broadly, the MMIP Initiative will involve a coordinated effort by more than 50 U.S. Attorneys on the Attorney General’s Native American Issues Subcommittee (NAIS), the FBI, and the Office of Tribal Justice, with support from the Office of Justice Programs (OJP) and the Office on Violence Against Women (OVW).
Today’s announcement follows the August NAIS meeting in New Mexico and OVW listening session in Michigan, where Missing and Murdered Indigenous Persons and violence against women in Indian country were prevalent topics of discussion by U.S. Attorneys, OVW officials, and tribal representatives.
Grinnell Man Sentenced to 260 Months in Prison for Receipt of Child PornographyRead the Press Release
DES MOINES, Iowa – United States Attorney Marc Krickbaum announced on November 26, 2019, John Allen Urfer, age 43, of Grinnell Iowa, was sentenced by United States District Court Judge James E. Gritzner for Receipt of Child Pornography. Urfer was sentenced to 260 months in prison, to be followed by a term of supervised release of twenty years. Urfer was also order to pay $21,000 in restitution to identified victims depicted in the images and videos that Urfer received.
Urfer pleaded guilty to the offense on July 10, 2019, and admitted that he received child pornography, including prepubescent child pornography, from September 2017 to April 2018. Urfer was found to have over 1,300 images and over 2,900 videos of child pornography. Urfer further admitted to having prior convictions for assault with intent to commit sex abuse in Marion County in 2003, and sex abuse in the third degree in Polk County in 2005. In addition to the sex abuse convictions, Urfer has two convictions for failing to comply with Iowa sex offender registry requirements.
This matter was investigated by Homeland Security Investigations with the assistance of the United States Marshals Service Fugitive Task Force. The case was prosecuted by the United States Attorney's Office for the Southern District of Iowa.
Greenville Man Sentenced to Prison for Drug and Gun OffensesRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, Chief United States District Judge Terrence W. Boyle sentenced DEMETRIUS AUSHELLE SUGGS, 39, of Greenville, NC to a total of 102 months imprisonment, followed by 5 years of supervised release.
SUGGS was named in an Indictment filed on April 10, 2019, charging him with possession with intent to distribute a quantity of cocaine, possession of a firearm in furtherance of a drug trafficking crime; and possession of a firearm and ammunition by a felon. On August 22, 2019, SUGGS pled guilty to those charges.
According to the investigation, officers with the Greenville Police Department encountered SUGGS in his vehicle parked on the side of the road. As the officers were speaking with SUGGS, they observed a bag containing marijuana on the floorboard of the vehicle. When the officers attempted to detain SUGGS, he fled on foot. After a brief chase, SUGGS was detained and searched. A search of SUGGS and his vehicle led to the discovery of two bags containing 4.32 grams of cocaine and a loaded TEC-9 handgun with a high capacity magazine. At the time of his arrest, SUGGS had previously been convicted of several drug-related felonies in North Carolina.
This case is part of the United States Attorney’s Office’s Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking and crimes against law enforcement. For additional information about this initiative, click here https://www.justice.gov/usao-ednc/tbnc.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Greenville Police Department conducted the investigation. Assistant United States Attorney John Parris represented the government.
Gary Woman Indicted for Attempting to Obstruct JusticeRead the Press Release
HAMMOND- Telisha French, 45, of Gary, Indiana, was indicted for attempting to obstruct justice, announced U.S. Attorney Kirsch.
The indictment alleges that on November 14, 2019, French attempted to obstruct the decision-making of the U.S. District Court for the Northern District of Indiana by causing an attorney to present a false document with a forged signature to the magistrate court in support of a defendant’s release from custody.
U.S. Attorney Thomas Kirsch II said, “My office will not hesitate to utilize all resources available to investigate and to prosecute individuals who engage in behavior designed to impede the administration of justice in federal criminal cases.”
The United States Attorney’s Office emphasizes that an indictment is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case is being investigated by the Federal Bureau of Investigation’s Gang Response Investigative Team. This case is being prosecuted by Assistant United States Attorneys Thomas Mahoney and Alexandra McTague.
Gang Leader Sentenced for Firearms and Counterfeit Currency SchemeRead the Press Release
NORFOLK, Va. – A Portsmouth man was sentenced today to 40 months in prison for being a felon in possession of a firearm and uttering counterfeit obligations.
According to court documents, Amaud Brown, aka “Moe Gunz,” 24, is a convicted felon and self-admitted leader of the Gangster Disciples who used four co-conspirators, including the mother of his child, to straw-purchase at least seven firearms for him. Two days after directing an associate to straw-purchase one of those guns, Brown called that gun store to inquire about purchasing more guns while police officers were at the store investigating the conspiracy.
Police officers executed a search warrant of Brown’s home and recovered two guns, dozens of rounds of ammunition, marijuana, and materials used to manufacture counterfeit money. Police later discovered that Brown had been using counterfeit “motion picture notes” to rip off at least five victims, including a Navy serviceman and a student at Christopher Newport University, defrauding them out of their electronic devices after meeting them through the “Letgo” electronic marketplace app.
Fraudsters have found so much success with motion picture notes that the total volume passed in the United States rose from $3.2 million in 2018 to $4.9 million this year, surpassing the Peruvian Note as the most passed counterfeit obligation in the country. U.S. Secret Service Agents in Los Angeles recently seized nine pallets of motion picture notes that had been shipped from Turkey—a total of roughly $286 million in counterfeit money. And pallets of motion picture notes shipped from Russia have been seized in New York ports.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division; George D. Purefoy, Resident Agent in Charge of the U.S. Secret Service’s Norfolk Resident Office; and Angela Greene, Chief of Portsmouth Police, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen. Assistant U.S. Attorney William B. Jackson 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. 2:19-cr-85.
Former police officer pleads guilty to attempted unlawful sexual enticement of a 13-year-old boyRead the Press Release
HONOLULU, Hawaii – James Dean Kalani Goeas, 63, of Waipahu, Hawaii, pleaded guilty today in federal court to one count of using a facility in interstate commerce to knowingly attempt to entice an individual who has not attained the age of 18 years to engage in unlawful sexual activity. Sentencing is scheduled for April 9, 2020 before Senior U.S. District Judge Helen Gillmor.
U.S. Attorney Kenji M. Price for the District of Hawaii stated that according to court documents and information presented in court, on March 23, 2019 and March 24, 2019, Goeas engaged in a series of online chats and telephonic text sessions with an undercover agent acting in the role of a 13-year-old male. During their conversations, Goeas arranged to meet the underage male at Maukalani Park with the intent to engage in sexual activity. Upon arrival at the park on March 24, Goeas was arrested and agents located both condoms and lubricating gel in his vehicle. After law enforcement officers arrested him, Goeas admitted that, on multiple prior occasions, he had engaged in unlawful sexual conduct with young teenage minor males.
“These prosecutions demonstrate our continued commitment to holding those who attempt to sexually exploit our young people responsible for their egregious behavior. We will continue to seek justice in these cases to the fullest extent of the law,” stated U.S. Attorney Price.
The case was investigated by the Federal Bureau of Investigation and the State of Hawaii Attorney General’s Office. It was prosecuted by Assistant U.S. Attorney Ken Sorenson.
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.
Former federal detention center employees indicted for bribery and sexual abuse of a wardRead the Press Release
McALLEN – Six former employees of the East Hidalgo Detention Center (EHDC) are now in custody themselves on federal charges, announced U.S. Attorney Ryan K. Patrick.
Brenda Fuentes, 47, Weslaco, and Jhaziel Loredo, 32, Progreso, are set for their arraignments and detention hearings today at 2 and 4 p.m., respectively, before U.S. Magistrate Judge Juan F. Alanis. Jason Catalan, 36, Mercedes; Erasmo Loya, 54, La Villa; and Veronica Ortega, 43, McAllen, will have their hearings tomorrow at 2 p.m.
Domingo Hernandez, 25, Mercedes, made his initial appearance in New Mexico and is expected to appear in McAllen in the near future.
A McAllen grand jury returned the indictments Nov. 19. Authorities took them all into custody Friday, Nov. 22.
Catalan, Hernandez, Loredo, Loya and Ortega are charged with bribery, while Fuentes faces one count of sexual abuse of a ward.
According to the indictments, authorities discovered various forms of contraband in EHDC, a correctional facility under contract with the U.S. Marshals Service (USMS). Catalan, Hernandez, Loredo, Loya and Ortega allegedly accepted things of value in exchange for bringing contraband into the detention center.
The investigation further revealed Fuentes engaged in a sexual act with a federal inmate, according to the charges.
If convicted, they each face up to 15 years in federal prison as well as a possible $250,000 maximum fine.
USMS, Department of Justice - Office of Inspector General and FBI conducted the joint investigation.
Assistant U.S. Attorneys Patricia Cook Profit and Amy L. Greenbaum are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Former Police Officer Pleads Guilty to Sexually Assaulting Two WomenRead the Press Release
The Department of Justice today announced former Ashley Borough Police Officer, Mark Icker, 30, pleaded guilty today before U.S. District Court Judge Malachy E. Mannion to violating the civil rights of two females in his custody whom he sexually assaulted.
The criminal information alleges that Icker worked as a police officer for the Ashley Borough Police Department in December 2018. On Dec. 3, 2018 and Dec. 10, 2018, Icker, while acting under color of the laws of the Commonwealth of Pennsylvania, willfully deprived two women of their liberty without due process of law, which includes the right to bodily integrity, by coercing the women into engaging in unwanted sexual contact with him.
“The Department of Justice will continue to vigorously prosecute law enforcement officers who exploit their authority to sexually abuse individuals in their custody,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division.
“We count on law enforcement officers at all levels to uphold their oaths, and to serve and protect the public,” said U.S. Attorney David J. Freed for the Middle District of Pennsylvania. “When a line is crossed, and a protector becomes a predator, we must act – swiftly and with certainty. While I am extremely proud of the cooperative efforts of law enforcement in this case, especially my colleagues and partners in the Luzerne County District Attorney’s Office, we are only able to pursue this prosecution because of the bravery of the victims. In a case where one of us in law enforcement did something so very wrong, the innocent victims stood up for what is right. We are proud to seek justice on their behalf.”
“A police officer using his position of authority to sexually exploit women is utterly contemptible,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “Mark Icker felt entitled enough to coerce his victims into sex acts. He clearly expected to get away with violating their bodies and their civil rights. The public corruption and civil rights squad at our Scranton Resident Agency was determined to seek justice for the women involved, and keep Icker from harming anyone else in this way.”
Icker was terminated from his position with the Ashley Borough Police Department in December 2018. Icker was also terminated from part-time positions he held with the Sugar Notch and Jessup Police Departments.
This case was investigated by the Scranton Office of the FBI - Philadelphia Division, and the Luzerne County District Attorney’s Office. Prosecution is assigned to Assistant United States Attorneys Michelle Olshefski and Jeffery St. John of the Middle District of Pennsylvania and Trial Attorney Shan Patel of the Civil Rights Division of the U.S. Department of Justice.
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.
In this case, the maximum penalty for civil rights violations is 20 years’ imprisonment. The charge also includes a fine and a term of supervised release following any period of incarceration. 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
Former Oklahoma Probation Officer Sentenced for Committing Sexual AssaultRead the Press Release
Steven Powers, 35, a former probation and parole officer with the Oklahoma Department of Corrections, was sentenced today in federal court in Tulsa to two years in prison for subjecting two female probationers to unwanted sexual contact.
“Steven Powers violated the public’s trust and the fundamental ethics which guide our justice system. He used his position to prey on women he was entrusted to supervise,” said U.S. Attorney Trent Shores. “The U.S. Attorney’s office will guard the constitutional protections afforded to all members of our community and aggressively prosecute corrupt individuals who violate those rights.”
According to court documents, during the course of supervising one victim, from on or about Nov. 3, 2015 through Jan. 19, 2017, Powers engaged in sexually inappropriate behavior, culminating in sexual assault. During the course of supervising the second victim, from on or about Nov. 2, 2015 through April 30, 2017, Powers likewise engaged in sexually inappropriate behavior, culminating in sexual contact against her will. In each of these instances, the defendant admitted he knew what he was doing was wrong and against the law, yet he did so anyway.
“The Department of Justice will not tolerate probation officers who exploit their authority to sexually assault the individuals they supervise, thinking their actions will go without consequence because of the power they wield,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division.
"As an Oklahoma probation and parole officer, Steven Powers abused the authority and trust bestowed upon him. Powers' actions not only violated the Constitutional rights of his victims, but also undermined the integrity of our judicial system. The FBI remains committed to addressing incidents in which an officer's actions betray the public's trust,” said FBI Special Agent in Charge Melissa Godbold of the Oklahoma City Field Office.
According to the plea agreement, in addition to the imposition of a prison sentence, Powers must forfeit his law enforcement certification.
This case is being investigated by the Oklahoma City Field Office of the FBI and the Oklahoma State Bureau of Investigation in cooperation with the Oklahoma Department of Corrections and the Tulsa County District Attorney’s Office. It is being prosecuted by Assistant United States Attorney Jarrod Leaman of the Northern District of Oklahoma and Special Litigation Counsel Fara Gold of the Civil Rights Division of the U.S. Department of Justice.
Former Oklahoma Probation Officer Sentenced for Committing Sexual AssaultRead the Press Release
Steven Powers, 35, a former probation and parole officer with the Oklahoma Department of Corrections was sentenced today in federal court in Tulsa, Oklahoma, to two years in prison for subjecting two female probationers to unwanted sexual contact.
According to court documents, during the course of supervising one victim, from on or about Nov. 3, 2015 through Jan. 19, 2017, Powers engaged in sexually inappropriate behavior, culminating in sexual assault. During the course of supervising the second victim, from on or about Nov. 2, 2015 through April 30, 2017, Powers likewise engaged in sexually inappropriate behavior, culminating in sexual contact against her will. In each of these instances, the defendant admitted he knew what he was doing was wrong and against the law, yet he did so anyway.
“The Department of Justice will not tolerate probation officers who exploit their authority to sexually assault the individuals they supervise, thinking their actions will go without consequence because of the power they wield,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division.
“Steven Powers violated the public’s trust and the fundamental ethics which guide our justice system. He used his position to prey on women he was entrusted to supervise,” said U.S. Attorney Trent Shores for the Northern District of Oklahoma. “The U.S. Attorney’s office will guard the constitutional protections afforded to all members of our community and aggressively prosecute corrupt individuals who violate those rights.”
"As an Oklahoma Probation and Parole Officer, Steven Powers abused the authority and trust bestowed upon him. Powers' actions not only violated the Constitutional rights of his victims, but also undermined the integrity of our judicial system. The FBI remains committed to addressing incidents in which an officer's actions betray the public's trust,” said FBI Special Agent in Charge Melissa Godbold of the Oklahoma City Field Office.
According to the plea agreement, in addition to the imposition of a prison sentence, Powers must forfeit his law enforcement certification.
This case is being investigated by the Oklahoma City Field Office of the FBI and the Oklahoma State Bureau of Investigation in cooperation with the Oklahoma Department of Corrections and the Tulsa County District Attorney’s Office. It is being prosecuted by Assistant United States Attorney Jarrod Leaman of the Northern District of Oklahoma and Special Litigation Counsel Fara Gold of the Civil Rights Division of the U.S. Department of Justice.
Former Indiana Resident Pleads Guilty to Concealing Terrorism FinancingRead the Press Release
Samantha Marie Elhassani, aka Samantha Sally, 34, formerly of Elkhart, Indiana, pleaded guilty yesterday to a one-count Information charging her with concealment of terrorism financing in violation of Title 18, United States Code, Section 2339C. Assistant Attorney General for National Security John C. Demers, U.S. Attorney for the Northern District of Indiana Thomas L. Kirsch II, FBI Assistant Director of the Counterterrorism Division Mike McGarrity, and FBI Special Agent in Charge of the Indianapolis field office Grant Mendenhall made the announcement.
“Elhassani admitted that she traveled overseas and pre-positioned over $30,000 in cash and gold, knowing that the funds would be used by her husband and brother-in-law to join and support ISIS in Syria,” said Assistant Attorney General for National Security John C. Demers. “The National Security Division is committed to identifying and holding accountable those who support foreign terrorist organizations. I want to thank the agents, analysts, and prosecutors who are responsible for this result.”
“Samantha Elhassani pled guilty to providing financial support to individuals who desired to support ISIS, a terrorist organization that has committed acts of violence against Americans,” said U.S. Attorney Thomas L. Kirsch II for the Northern District of Indiana. “She traveled with her husband and brother-in-law to Syria, both of whom became ISIS fighters, putting the lives of her children at risk. Yesterday’s guilty plea to federal terrorism charges reflects the seriousness of her criminal conduct. My office is committed to prosecuting those who provide support to terrorist organizations. ”
"The charges that the defendant in this case has plead guilty to are a reminder the FBI will never relent in ensuring that Americans who abandon their country to further the heinous goals of a designated terrorist organization like ISIS see justice for their betrayal" said Assistant Director Mike McGarrity. "I am proud of the work of the FBI's Indianapolis Field Office on this case and grateful for the assistance of our many international and interagency partners."
“Ms Elhassani knowingly engaged in the concealment of resources which were intended to support future ISIS fighters whose intent is to harm her fellow Americans and others, and her plea should serve as a strong reminder that these actions have serious consequences and will not be tolerated,” said Special Agent in Charge Grant Mendenhall, FBI Indianapolis. “The defendant also exposed her young, impressionable children to an environment of hatred and violence with no regard to the harm she was causing them.”
In November 2014, Elhassani was informed by her husband that he and his brother wanted to travel to Syria to join ISIS, which she knew was a terrorist organization that engaged in terrorist activities. Between November 2014 and April 1015, Elhassani helped the two men join ISIS by making multiple trips to Hong Kong and transporting more than $30,000 in cash and gold from the United States and depositing it in a safe deposit box in Hong Kong. Elhassani melted down the gold to look like jewelry and did not disclose the cash and gold on customs declaration forms. At the time Elhassani transported the money and gold, she knew that her husband and brother-in-law had expressed an interest in joining ISIS and that they intended to use these resources to support ISIS.
In July of 2018, Elhassani was transferred from the custody of the Syrian Democratic Forces (SDF) to U.S. law enforcement custody.
U.S. District Judge Philip P. Simon presided over the plea hearing and set sentencing for March 5, 2020.
The case was investigated by the FBI’s Indianapolis Division and Joint Terrorism Task Force. The case is being prosecuted by the U.S. Attorney’s Office for the Northern District of Indiana and the National Security Division’s Counterterrorism Section.
Former Indiana Resident Pleads Guilty to Concealing Terrorism FinancingRead the Press Release
WASHINGTON – Samantha Marie Elhassani, aka Samantha Sally, 34, formerly of Elkhart, Indiana, pleaded guilty yesterday to a one-count Information charging her with concealment of terrorism financing in violation of Title 18, United States Code, Section 2339C. Assistant Attorney General for National Security John C. Demers, U.S. Attorney for the Northern District of Indiana Thomas L. Kirsch II, FBI Assistant Director of the Counterterrorism Division Mike McGarrity, and FBI Special Agent in Charge of the Indianapolis field office Grant Mendenhall made the announcement.
“Elhassani admitted that she traveled overseas and pre-positioned over $30,000 in cash and gold, knowing that the funds would be used by her husband and brother-in-law to join and support ISIS in Syria,” said Assistant Attorney General for National Security John C. Demers. “The National Security Division is committed to identifying and holding accountable those who support foreign terrorist organizations. I want to thank the agents, analysts, and prosecutors who are responsible for this result.”
“Samantha Elhassani pled guilty to providing financial support to individuals who desired to support ISIS, a terrorist organization that has committed acts of violence against Americans,” said U.S. Attorney Thomas L. Kirsch II for the Northern District of Indiana. “She traveled with her husband and brother-in-law to Syria, both of whom became ISIS fighters, putting the lives of her children at risk. Yesterday’s guilty plea to federal terrorism charges reflects the seriousness of her criminal conduct. My office is committed to prosecuting those who provide support to terrorist organizations. ”
"The charges that the defendant in this case has plead guilty to are a reminder the FBI will never relent in ensuring that Americans who abandon their country to further the heinous goals of a designated terrorist organization like ISIS see justice for their betrayal" said Assistant Director Mike McGarrity. "I am proud of the work of the FBI's Indianapolis Field Office on this case and grateful for the assistance of our many international and interagency partners."
“Ms Elhassani knowingly engaged in the concealment of resources which were intended to support future ISIS fighters whose intent is to harm her fellow Americans and others, and her plea should serve as a strong reminder that these actions have serious consequences and will not be tolerated,” said Special Agent in Charge Grant Mendenhall, FBI Indianapolis. “The defendant also exposed her young, impressionable children to an environment of hatred and violence with no regard to the harm she was causing them.”
In November 2014, Elhassani was informed by her husband that he and his brother wanted to travel to Syria to join ISIS, which she knew was a terrorist organization that engaged in terrorist activities. Between November 2014 and April 1015, Elhassani helped the two men join ISIS by making multiple trips to Hong Kong and transporting more than $30,000 in cash and gold from the United States and depositing it in a safe deposit box in Hong Kong. Elhassani melted down the gold to look like jewelry and did not disclose the cash and gold on customs declaration forms. At the time Elhassani transported the money and gold, she knew that her husband and brother-in-law had expressed an interest in joining ISIS and that they intended to use these resources to support ISIS.
In July of 2018, Elhassani was transferred from the custody of the Syrian Democratic Forces (SDF) to U.S. law enforcement custody.
U.S. District Judge Philip P. Simon presided over the plea hearing and set sentencing for March 5, 2020.
The case was investigated by the FBI’s Indianapolis Division and Joint Terrorism Task Force. The case is being prosecuted by the U.S. Attorney’s Office for the Northern District of Indiana and the National Security Division’s Counterterrorism Section.
# # #
NSD
19-1316
Do not reply to this message. If you have questions, please use the contacts in the message or call the Office of Public Affairs at 202-514-2007.
Former Construction Manager Pleads Guilty to Tax Evasion in Connection with Bribery SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that MICHAEL CAMPANA, a construction manager for a global financial firm, pled guilty today to charges of evading taxes on more than $350,000 in bribes he received from building sub-contractors. The bribes included payments of more than $75,000 to cover expenses associated with CAMPANA’s wedding. CAMPANA is scheduled to be sentenced on March 6, 2020, before United States District Judge Denise Cote. Thereafter, he also faces sentencing in New York State court on money laundering charges for his participation in the bribery scheme.
U.S. Attorney Geoffrey S. Berman said: “Bribery and tax evasion often go hand-in-hand, forcing both the bribery victims and the taxpaying public to unfairly bear the hidden costs of corruption. Today, Michael Campana admitted to federal tax evasion for failing to report his income from an illegal bribery scheme to which he already pled guilty.”
According to the criminal Information filed today, as well as other public documents and today’s court proceeding:
Between 2013 and 2017, CAMPANA was a construction manager for a global financial firm engaged in various building projects in New York City and elsewhere. He and others participated in a scheme to obtain bribes from construction sub-contractors, who paid bribes in exchange for being awarded various construction contracts and sub-contracts. In all, CAMPANA received bribes in excess of $350,000 between 2014 and 2017. Some of those bribes related to CAMPANA’s 2017 wedding, including payments of approximately $40,000 from sub-contractors directly to a catering hall in New Jersey, over $13,000 directly to a photography studio, and over $23,000 directly to a travel agent for airline tickets purchased in connection with CAMPANA’s honeymoon. Other payments, totaling more than $100,000, were made in cash, which CAMPANA stashed in a safe. CAMPANA evaded federal income tax on this bribery income, by failing to declare it on his income tax returns for the years 2014 through 2017.
In connection with the underlying bribery scheme, the Manhattan District Attorney’s Office charged CAMPANA and 13 others in December 2018 with numerous felonies, including charges of conspiracy, commercial bribery, and money laundering. Last week, on November 19, CAMPANA pled guilty in the state court case to money laundering in the third degree. (New York v. Guzzone, et al., case no. 04037-2018 (N.Y. Sup. Ct.), count 44). He is awaiting sentencing in that case as well.
* * *
CAMPANA, 33, of Tuckahoe, New York, pled guilty today to a single count of tax evasion. That charge carries a maximum sentence of five years in prison, a maximum fine of $250,000 or twice the gross gain or loss from the offense, and an order of restitution. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the excellent work of the Internal Revenue Service.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney David Raymond Lewis and Stanley J. Okula, Assistant Chief of the Criminal Appeals & Tax Enforcement Policy Section of the Tax Division of the Department of Justice, are in charge of the prosecution.
Former Chief Executive Officer and Chief Operating Officer of Publicly Traded Biopharmaceutical Company Charged with Accounting FraudRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Philip R. Bartlett, Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), announced today the unsealing of an Indictment in Manhattan federal court charging PARKER H. “PETE” PETIT and WILLIAM TAYLOR, the respective former chief executive officer and chief operating officer of MiMedx Group, Inc. (“MiMedx”), a publicly traded biopharmaceutical company, with securities fraud offenses for engaging in a scheme to fraudulently inflate MiMedx’s revenue. The case is assigned to U.S. District Judge Jed S. Rakoff.
PETIT and TAYLOR are expected to be presented later today in Atlanta federal court.
U.S. Attorney Geoffrey S. Berman said: “As alleged, Parker Petit and William Taylor deceived the SEC, auditors, and the investing public by repeatedly misrepresenting the financial condition of a publicly traded company. They allegedly conspired, through secret agreements and financial inducements with four distributors, to misstate sales revenue. The alleged conduct resulted in serious criminal charges Petit and Taylor now face.”
USPIS Inspector-in-Charge Philip R. Bartlett said: “As alleged, Petit and Taylor’s fraudulent scheme to falsely inflate revenue could not withstand the pressure of meeting their own aggressive goals. The investing public relied on Petit and Taylor’s misrepresentations. Investors should not have any doubts or concerns with information distributed by a publicly traded company. The U.S. Postal Inspection Service will not tolerate this criminal behavior and will seek out and bring to justice anyone who breaks the system of laws designed to protect the investing public.”
According to the allegations contained in the Indictment[1] unsealed today in Manhattan federal court:
MiMedx was headquartered in Marietta, Georgia, and its securities traded under the symbol “MDXG” on the NASDAQ. MiMedx sold regenerative biologic products, such as skin grafts and amniotic fluid, both directly to end users, such as public and private hospitals, and to various stocking distributors, which, in turn, resold the product to end users.
One of the most critical financial metrics disclosed in MiMedx’s public filings with the Securities and Exchange Commission (“SEC”), and touted in MiMedx’s accompanying press releases, was MiMedx’s quarterly and annual sales revenue. Under Generally Accepted Accounting Principles (GAAP) and SEC guidance, a company like MiMedx that engages in the sale of products through a distributor may recognize revenue upon transfer of the product to a distributor if certain requirements are satisfied, including that delivery has occurred or services have been rendered, the seller’s price to the buyer is fixed or determinable, and collectability of payment is reasonably assured. PETIT and TAYLOR repeatedly demonstrated and touted their understanding of these rules governing revenue recognition. They also publicly identified revenue as the principal metric reflecting MiMedx’s growth, and touted MiMedx’s consistent record of quarter-over-quarter revenue growth and meeting or exceeding revenue guidance in 17 consecutive quarters, from 2011 through year-end 2015. By 2015, however, it became increasingly difficult for MiMedx to reach its revenue guidance due to decreased demand from certain distributors and the increasingly aggressive revenue targets that MiMedx had publicly announced.
Confronted with the difficulties faced by MiMedx in meeting its quarterly and annual revenue guidance by legitimate means, PETIT and TAYLOR engaged in a fraudulent scheme to falsely recognize revenue upon the shipment of MiMedx product to four stocking distributors (“Distributor-1” through “Distributor-4”) in the second through fourth quarters of 2015. PETIT and TAYLOR caused MiMedx to report fraudulently inflated revenue figures to the investing public in order to ensure that the reported figures fell within MiMedx’s publicly announced revenue guidance, and to fraudulently convey to the investing public that MiMedx was accomplishing consistent growth quarter after quarter, as PETIT and TAYLOR had falsely touted to the investing public. The fraudulent scheme involved the following central features:
- As to Distributor-1, in the second quarter of 2015, PETIT and TAYLOR caused MiMedx fraudulently to recognize $1.4 million in revenue by (1) making a $200,000 sham “consulting” payment to Distributor-1’s owner to induce Distributor-1 to buy MiMedx product and (2) secretly agreeing to send Distributor-1 approximately $1.2 million of product it did not want and did not intend to sell, while promising that Distributor-1 could return the product to MiMedx and swap it for different product in a subsequent quarter. PETIT and TAYLOR entered into the sham “consulting” agreement to conceal that the payment was an inducement to purchase product, and Distributor-1’s owner performed no consulting work for the payment. Neither PETIT nor TAYLOR disclosed to MiMedx’s outside auditors the “consulting” payment or product swap.
- As to Distributor-2, in the third quarter of 2015, PETIT and TAYLOR caused MiMedx fraudulently to recognize $4.6 million in revenue by (1) reaching a secret agreement with Distributor-2’s owner to excuse Distributor-2’s contractual obligation to pay for the product Distributor-2 had purchased within 30 days of shipment and (2) booking the revenue despite understanding that Distributor-2 would not make a timely payment for the product, and certainly would not do so within contractual terms. To hide from MiMedx’s auditors that the collectability of payment from Distributor-2 was questionable, during the fourth quarter 2015, PETIT arranged for his adult children to use a shell company to loan money to Distributor-2 (money that came from a trust fund established by PETIT for their benefit), with the understanding that the loan proceeds would be used in substantial part to pay down Distributor-2’s debt to MiMedx. PETIT did not disclose the loan to MiMedx’s outside auditors and made false and misleading statements to the auditors about Distributor-2’s ability to pay MiMedx.
- As to Distributor-3, in the third and fourth quarters of 2015, PETIT and TAYLOR caused MiMedx improperly to recognize $2.6 million of revenue, where they (1) failed to agree with Distributor-3 on the essential terms of the deal, including when payment was due; (2) reached a secret understanding that Distributor-3 could swap or return unwanted product in subsequent quarters; and (3) understood that Distributor-3 could not pay for the product in a timely fashion. In fact, PETIT granted the right of return to Distributor-3 in a back-dated letter he hid from MiMedx’s internal accountants and outside auditors. Ultimately, Distributor-3 paid MiMedx less than 10 percent of the value of product it had purchased.
- As to Distributor-4, in the fourth quarter of 2015, TAYLOR caused MiMedx improperly to recognize $2.2 million in revenue by making an undisclosed promise to Distributor-4 that it could return any product that it could not sell and that MiMedx would not leave Distributor-4 with any losses. To carry out the scheme, TAYLOR sent two emails four seconds apart to Distributor-4. The first was a “cover story” that purported to require payment within a fixed period, as required by MiMedx’s accountants. TAYLOR forwarded the first email to MiMedx’s accounting department. The second email, sent only four seconds after the first, memorialized the true terms of deal, which involved an agreement to defer payment and take back product if it could not be sold. TAYLOR hid the second email from MiMedx’s internal accountants and outside auditors. TAYLOR also arranged for a false audit “confirmation,” which falsely represented that Distributor-4 was required to pay within a fixed period and omitted the true terms of the deal, to be provided to MiMedx’s outside auditors.
PETIT’s and TAYLOR’s fraudulent manipulation of MiMedx’s revenue caused MiMedx to report materially inflated revenue in the second, third, and fourth quarters of 2015, and for the full year 2015. In its 2015 10-K, MiMedx reported annual revenue that was fraudulently inflated by approximately $9.5 million, or approximately five percent. Absent this fraudulent inflation of revenue, MiMedx would have missed both (1) its quarterly revenue guidance in the third and fourth quarters of 2015 and annual revenue guidance for 2015 and (2) analyst revenue consensus for the second through fourth quarters of 2015 and the full year 2015.
* * *
PARKER H. “PETE” PETIT, 80, and WILLIAM TAYLOR, 51, both of Roswell, Georgia, were charged in the Indictment with one count of conspiracy to commit securities fraud, make false filings with the SEC, and improperly influence the conduct of audits, and one count of securities fraud. The conspiracy charge carries a maximum prison term of five years. The securities fraud charge carries a maximum prison term of 20 years.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the work of the investigative work of USPIS. Mr. Berman also thanked the SEC, which brought a separate civil action.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Edward A. Imperatore, Scott A. Hartman, and Daniel M. Tracer are in charge of the prosecution.
The allegations contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment constitute only allegations, and every fact described should be treated as an allegation.
Former Ashley Borough Police Officer Pleads Guilty to Sexually Assaulting Two WomenRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that former Ashley Borough Police Officer, Mark Icker, age 30, pleaded guilty today before United States District Court Judge Malachy E. Mannion to violating the civil rights of two females in his custody whom he sexually assaulted.
According U.S. Attorney David J. Freed, the criminal information alleges that Icker worked as a police officer for the Ashley Borough Police Department in December 2018. On December 3, 2018 and December 10, 2018, Icker, while acting under color of the laws of the Commonwealth of Pennsylvania, willfully deprived two women of their liberty without due process of law, which includes the right to bodily integrity, by coercing the women into engaging in unwanted sexual contact with him.
In a plea agreement filed with the Court, the Government and Icker agreed to jointly recommend a twelve year sentence of imprisonment. Sentencing was deferred pending the preparation of a pre-sentence report.
“The Department of Justice will continue to vigorously prosecute law enforcement officers who exploit their authority to sexually abuse individuals in their custody,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division.
“We count on law enforcement officers at all levels to uphold their oaths, and to serve and protect the public,” said U.S. Attorney David J. Freed. “When a line is crossed, and a protector becomes a predator, we must act – swiftly and with certainty. While I am extremely proud of the cooperative efforts of law enforcement in this case, especially my colleagues and partners in the Luzerne County District Attorney’s Office, we are only able to pursue this prosecution because of the bravery of the victims. In a case where one of us in law enforcement did something so very wrong, the innocent victims stood up for what is right. We are proud to seek justice on their behalf.”
"A police officer using his position of authority to sexually exploit women is utterly contemptible,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “Mark Icker felt entitled enough to coerce his victims into sex acts. He clearly expected to get away with violating their bodies and their civil rights. The public corruption and civil rights squad at our Scranton Resident Agency was determined to seek justice for the women involved, and keep Icker from harming anyone else in this way.”
“The actions of this former officer are in no way indicative of law enforcement of Luzerne County,” said District Attorney Stefanie Salavantis. “Many great men and women have died doing what is right while wearing the badge Mr. Icker has tarnished. As adamant as this office is about standing by police when they pursue justice, we are as determined to defend the Constitution when a sworn officer violates the God-given rights that make this country so great.
On behalf of our office and the people of Luzerne County, we would like to thank U.S. Attorney David Freed, Assistant U.S. Attorneys Olshefski, St. John and Patel, along with the FBI agents whom not only agreed with our assessment of the egregious nature of these offenses, but also worked so closely with us to bring this matter to a swift and just resolution.”
Icker was terminated from his position with the Ashley Borough P.D. in December 2018. Icker was also terminated from part-time positions he held with the Sugar Notch and Jessup Police Departments.
This case was investigated by the Scranton Office of the FBI - Philadelphia Division, and the Luzerne County District Attorney’s Office. Assistant United States Attorneys Michelle Olshefski and Jeffery St. John of the Middle District of Pennsylvania and Trial Attorney Shan Patel of the Civil Rights Division of the U.S. Department of Justice are prosecuting the case.
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.
In this case, the maximum penalty for civil rights violations is 20 years’ imprisonment. The charge also includes a fine and a term of supervised release following any period of incarceration. 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.
# # #
Florida Man Pleads Guilty to Violating Kingpin Act Sanctions Against Venezuelan Minister and Former Vice PresidentRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Peter C. Fitzhugh, the Special Agent in Charge of the New York Field Office of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), announced that VICTOR MONES CORO (“MONES CORO”) pled guilty today to participating in a conspiracy with former Venezuelan vice president Tareck Zaidan El Aissami Maddah (“El Aissami”) and Venezuelan businessman Samark Jose Lopez Bello (“Lopez Bello”), among others, to violate and evade sanctions imposed by the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) pursuant to the Foreign Narcotics Kingpin Designation Act (“Kingpin Act”). MONES CORO pled guilty today before U.S. Magistrate Judge Robert W. Lehrburger, and he will be sentenced by U.S. District Judge Alvin K. Hellerstein on February 26, 2020, at 10:30 a.m.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Victor Mones Coro has now admitted that he conspired to circumvent U.S. sanctions to help former Venezuelan vice president Tareck El Aissami, Samark Lopez Bello, and others obtain international transport via private jet. Together with HSI, OFAC, and all of our law enforcement partners, we will continue to vigorously enforce sanctions to protect our national security.”
Special Agent in Charge Peter C. Fitzhugh said: “We take a great deal of pride in working alongside the US Attorney’s Office and the Department of the Treasury to ensure that the integrity and intent of U.S. sanctions is preserved both at home and abroad. HSI, through myriad authorities, conducts criminal investigations to maintain the viability of the American financial system and prevent its misuse by foreign corrupt officials and narcotics traffickers. Today, we are reminded of our steadfast commitment to holding those willing to violate such sanctions accountable. And to those who intend to circumvent our laws to gain power and further their corrupt practices through international crime, know you will be brought to justice.”
According to the allegations contained in the Indictment and statements made at MONES CORO’s guilty plea[1]:
Between in or about February 2017 and March 2019, MONES CORO conspired to violate and evade OFAC’s sanctions by providing travel services, including private jet charters, to El Aissami and Lopez Bello, as well as their relatives and associates. El Aissami and Lopez Bello paid for these services at times through intermediaries who delivered bulk cash in Venezuela.
El Aissami became the Vice President of Venezuela in approximately January 2017 and is currently Venezuela’s Minister of Industry and National Production. In February 2017, OFAC designated El Aissami and Lopez Bello as Specially Designated Narcotics Traffickers pursuant to the Kingpin Act and related regulations. As a result of OFAC’s designations, U.S. persons are generally prohibited from, among other things, engaging in transactions with or providing services to El Aissami and Lopez Bello absent authorization from OFAC.
MONES CORO and others used American Charter Services LLC and its affiliates, all U.S. companies, to evade OFAC’s Kingpin Act sanctions in connection with transportation services provided to El Aissami and Lopez Bello. For example, in September 2018, MONES CORO used an American Charter Services account in the United States to pay expenses for an upcoming private flight for Lopez Bello. Similarly, MONES CORO, El Aissami, Lopez Bello, and Alejandro Miguel Leon Maal used SVMI Solution, LLC, another U.S. company, to receive payments for transportation services provided to El Aissami and Lopez Bello in violation of the Kingpin Act and the OFAC sanctions, such as a July 2018 funds transfer sent from Manhattan, New York to an SVMI Solution account in Florida.
* * *
MONES CORO, 51, of Florida, pled guilty to one count of conspiracy to violate and evade the Foreign Narcotics Kingpin Designation Act and the Kingpin Act regulations, as an officer of an entity that participated in the violations, which carries a maximum sentence of 30 years in prison.
Alejandro Antonio Leon Maal and Michols Orsini Quintero are currently detained while El Aissami, Lopez Bello, and Alejandro Antonio Quintavalle Yrady remain at liberty.
Mr. Berman praised the outstanding efforts of U.S. Customs and Border Protection, and the DEA’s Special Operations Division Bilateral Investigations Unit. Mr. Berman also thanked the Counterintelligence and Export Control Section of the Department of Justice’s National Security Division, and OFAC.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Amanda L. Houle and Sam Adelsberg are in charge of the prosecution.
The charges contained in the Indictment against El Aissami, Lopez Bello, Alejandro Antonio Leon Maal, Michols Orsini Quintero, and Alejandro Antonio Quintavalle Yrady are merely accusations, and El Aissami, Lopez Bello, Leon Maal, Orsini Quintero, and Quintavalle Yrady are presumed innocent unless and until proven guilty.
[1] The descriptions set forth below of conduct by co-defendants Tareck Zaidan El Aissami Maddah, Samark Jose Lopez Bello, Alejandro Miguel Leon Maal, Michols Orsini Quintero, and Alejandro Antonio Quintavalle Yrady constitute only allegations, and every fact described should be treated as an allegation with respect to these defendants.
Five Charged in Online Romance Scams Targeting SeniorsRead the Press Release
PROVIDENCE – Two individuals from Houston and three from the Atlanta area have been charged in U.S. District Court in Providence, R.I., with allegedly participating in online romance scams that bilked more than two dozen people, most of them elderly, out of more than two million dollars.
It is alleged in Court documents that beginning in May 2015, victims were contacted by scammers via online dating sites such as Plenty of Fish, Christian Mingle, and Our Time, and through social media platforms such as Words with Friends, often times feigning romantic intentions. The perpetrators of the scams gained the trust of their victims through any number of fraudulent representations, eventually convincing them to send money to bank accounts controlled by members of the conspiracy.
To date, 28 individuals in more than a dozen states have been identified as falling victim to the scams allegedly employed by the five individuals named in the charged conspiracy.
United States Attorney Aaron L. Weisman commented, “It is unconscionable to prey on seniors. Scammers will confuse, lie to, and steal from their victims with total disregard for the financial and emotional ruins they leave behind. Elder abuse is a serious crime that impacts 10% of elder Americans each year. The Department of Justice and federal, state, and local law enforcement have made it a priority to root out such scammers and hold them accountable.”
“When scammers pose online as legitimate romantic partners only to manipulate victims into giving away their life savings, it creates devastating financial impacts to victims, especially our older Americans,” said Inspector in Charge Joseph W. Cronin of the U.S. Postal Inspection Service’s Boston Division. “The U.S. Postal Inspection Service is committed to protecting our citizens and working hard to seek prosecution of scammers who take advantage of our elders.”
According to court documents, among the victims is a 76-year-old widow from Rhode Island who refinanced her home, sold property she owned in Massachusetts, and withdrew funds from bank accounts, over time sending more than $660,000 to bank accounts allegedly controlled by members of the conspiracy. The woman told investigators she reluctantly made the transfers at the direction of “General Mathew Weyer,” who claimed to be stationed with the U.S. Army in Afghanistan, and whom she met online on Words with Friends.
An investigation by the United States Attorney’s Office and United States Postal Inspection Service determined that “General Mathew Weyer” is a fictitious person and name allegedly used by members of the conspiracy when communicating with the victim.
On Monday, Rhode Island U.S. District Court Magistrate Judge Lincoln D. Almond ordered the alleged leader of the conspiracy, Wisdom Onyobeno, 39, of Sandy Springs, GA, to remain in federal custody and be returned to Rhode Island. Onyobeno was arrested at his Georgia home on November 19, 2019, on a criminal complaint filed by the U.S. Attorney’s Office in the District of Rhode charging him with conspiracy to commit wire fraud and mail fraud; conspiracy to commit money laundering; mail fraud; and wire fraud.
Also charged by way of criminal complaints with conspiracy to commit wire fraud and mail fraud; conspiracy to commit money laundering; mail fraud; and wire fraud are Dominique Golden 28, and Sadae Mills, 24, of Houston, Breauna Williams, 25, of Atlanta, and Syretta Scherer, of Sandy Springs, GA.
Mills and Golden were charged by way of an indictment returned by a federal grand jury in Providence on October 3, 2019, with conspiracy to commit mail fraud, nine counts of mail fraud, and six counts of wire fraud. They were arraigned in U.S. District Court in Providence on October 30, 2019, and released on bond.
Syretta Scherer was arrested on November 19, 2019, and made an initial appearance in the U.S. District Court for the Northern District of Georgia. She was released on bond.
An arrest warrant has been issued for Breauna Williams.
An information and indictment are merely accusations. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorney Denise M. Barton, Elder Justice Coordinator for the United States Attorney’s Office for the District of Rhode Island.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. If you are a victim or know a victim of elder fraud, you can call 1-877-FTC-HELP or go to ftc.gov/complaint. For downloadable Elder Abuse Prevention resources and for information about community outreach programs in Rhode Island, visit the United States Attorney’s Office’s Elder Justice Initiative web page at https://www.justice.gov/usao-ri/elder-justice
United States Attorney Aaron L. Weisman and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division, thank the FBI, U.S. Department of Labor, and U.S. Treasury Inspector General for Tax Administration in Atlanta for their assistance related to this investigation.
###
Federal Grand Jury Indicts Man for Gun OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced that HAKEEM ALEXANDER COLES, age 24, a resident of Minneapolis, Minnesota, was charged on November 21, 2019 in a two-count indictment by a Federal Grand Jury for possessing an unregistered firearm and for being a felon in possession of a firearm.
If convicted of being a felon in possession of a firearm, COLES faces a maximum term of imprisonment of ten (10) years, a maximum fine of $250,000 and up to 3 years of supervised release years of supervised release. If convicted of possessing an unregistered firearm, COLES faces a maximum term of imprisonment of ten (10) years, a maximum fine of $10,000 and up to 3 years of supervised release.
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.
This case was brought as 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 safe for everyone. Former Attorney General Jeff Sessions made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, then Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN was launched in 2001.
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 (ATF) when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The Violent Crime/Strike Force Unit of the United States Attorney’s Office has prosecuted this case with support from Project Guardian partners, including the ATF and the Jefferson Parish Sheriff’s Office. Assistant U.S. Attorney Jesse Eshkol is in charge of the prosecution.
For more information on Project Guardian, see the Attorney General’s memorandum at: https://www.justice.gov/ag/project-guardian-memo-2019/download.
East Hartford Man Pleads Guilty to Drug and Gun ChargesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that EYISIEL ORTEGA, also known as “EG,” “D” and “E,” 20, of East Hartford, pleaded guilty yesterday before U.S. District Judge Victor A. Bolden in Bridgeport to drug distribution and gun possession offenses.
This matter stems from an investigation headed by the ATF and East Hartford Police Department into drug trafficking and related acts of violence by a group of individuals operating out of the Mayberry Village housing complex in East Hartford.
According to court documents and statements made in court, between September and November 2017, investigators conducted controlled purchases of crack cocaine from Ortega. Ortega was arrested on November 7, 2017. On that date, a court-authorized search of his residence revealed a loaded .380 caliber Ruger LCP semi-automatic pistol, 20 loose rounds of ammunition, approximately 30 grams of crack cocaine, a quantity of fentanyl and $4,530 in cash. The firearm had been reported stolen in Georgia.
Ortega pleaded guilty to one count of possession with intent to distribute cocaine base (“crack”), which carries a maximum term of imprisonment of 20 years, and one count of possession of a firearm in furtherance of a drug trafficking crime, which carries a mandatory consecutive sentence of at least five years. A sentencing date is not scheduled.
Ortega has been detained since his arrest.
This investigation is being conducted by the ATF and East Hartford Police Department, with the assistance of the Connecticut Department of Correction and the Minot (N.D.) Police Department. The case is being prosecuted by Assistant U.S. Attorney Patricia Stolfi Collins.
Dunbar Man Pleads Guilty to Drug and Gun CrimesRead the Press Release
CHARLESTON, W.Va. – A Dunbar man pled guilty to federal drug and gun crimes, announced United States Attorney Mike Stuart. Bari Myricks, 47, pled guilty to possession with intent to distribute 40 or more grams of fentanyl and to being a felon in possession of a firearm.
“A felon with firearms distributing fentanyl,” said United States Attorney Mike Stuart. “Fentanyl is deadly. Guns in the wrong hands are dangerous. We continue to prosecute fentanyl dealers and those prohibited from possessing firearms with a sense of urgency to protect the public.”
Myricks admitted that on May 7, 2018, the vehicle he was driving was stopped by law enforcement officers due to a traffic violation. He further admitted that after a police K-9 trained in drug detection indicated narcotics were present in his vehicle, police conducted a search of his vehicle, finding heroin in a plastic bag. Officers with the Metropolitan Drug Enforcement Network Team (MDENT) later searched Myricks’ residence on Roxalana Road, finding over 100 grams of fentanyl, marijuana, over $12,000 in cash and two firearms. Myricks knew he was prohibited from possessing the firearms due to prior felony convictions.
Myricks faces a term of imprisonment of five to 40 years imprisonment when he is sentenced on February 20, 2020.
MDENT conducted the investigation. Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney Andrew J. Tessman is handling the prosecution.
Follow us on Twitter: SDWVNews and USAttyStuart
###
District Man Sentenced to 20 Years in Prison for 2008 Murder of Best FriendRead the Press Release
WASHINGTON – Astriane Horton, 37, was sentenced today to 20 years in prison for the 2008 murder of his best friend, Deon Coleman, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Horton pled guilty in August 2019 to second-degree murder while armed and two counts of obstructing justice, in the Superior Court for the District of Columbia. The Honorable Danya Dayson sentenced him to 20 years in prison to be followed by five years of supervised release. The sentence on the obstruction counts will run concurrently with the sentence for murder. Horton was also ordered to stay away from witnesses after his release from prison.
According to the government’s evidence, Horton kept a gun behind his grandmother’s house, on Halley Terrace, SE, the location of which was known only to Horton, Coleman, and a mutual friend. When the gun went missing, on June 19, 2008, Horton became upset and believed that Coleman had stolen the gun, and in so doing, had disrespected him. At that point, Horton began searching for Deon Coleman, eventually tracking him to Brandywine Street, SW, where Coleman lived.
Shortly before 10pm that night, Astriane Horton arrived at the Coleman’s home and confronted him in the street about the missing gun. After initially appearing to part on good terms, the two men had a brief exchange of words, during which, Horton accused Coleman of taking the gun, and Coleman denied taking it. Horton then reached through the driver’s side window of the car in which Coleman sat, threw punches, then pulled out a gun and fired four (4) close range shots, striking Coleman in the face, neck, back and forearm, injuries from which Deon Coleman would not survive.
In announcing the sentence, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department, and also expressed appreciation for the assistance of law enforcement in Cabarrus County, North Carolina.
They further expressed appreciation for the efforts of those who handled the case for the U.S. Attorney’s Office, including Chrisellen Kolb, Deputy Chief of the Appellate Division; Supervisory Paralegal Specialist Sharon Newman, Paralegal Specialists Alesha Matthews Yette, Meridith McGarrity, and Kelly Blakeney; Victim/Witness Advocate Marcia Rinker; Victim/Witness Services Coordinator LaJune Thames; Supervisory Victim/Witness Services Coordinator Katina Adams-Washington; Supervisory Budget Analyst Nikiya Burnette, Budget Officer Natalie Hope; Litigation Technology Specialists Paul Howell, and William Henderson; Supervisory Litigation Technology Specialist Leif Hickling, and Investigative Analyst Zachary McMenamin.
Finally, they praised the work of Assistant U.S. Attorney S. Vinét Bryant, who investigated and indicted the case and secured the guilty plea.
Clarence Center Man Pleads Guilty to Tax EvasionRead 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 Mark E. Wolanyk, 61, of Clarence Center, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to tax evasion. The charge carries carry a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney John D. Fabian, who is handling the case, stated that in October 2010, the defendant and his minor son opened an account at First Niagara Bank in the name of the minor son, with Wolanyk listed as a custodian on the account. From October 2010 through December 2013, the defendant made deposits into the First Niagara account, including business deposits, totaling approximately $258,911.49. Between January 2011 and December 2013, Wolanyk made cash withdrawals from the First Niagara account totaling approximately $260,875.
In September 20, 2011, during the course of IRS efforts to collect taxes owed by the defendant, Wolanyk submitted what is known as a Collection Information Statement for Wage Earner and Self-Employed Individuals to the IRS. However, the defendant failed to list the First Niagara account in a designated area for listing bank accounts.
In January, April, and December of 2013, the defendant was issued five checks totaling $60,000 as compensation for services rendered in connection with a real estate transaction. All five checks were deposited into the First Niagara account.
In October 15, 2014, Wolanyk filed a false Form 1040 U.S. Individual Income Tax Return for 2013 claiming $77,477 in gross income and $56,491.58 in total income. The defendant knew his taxable income for the calendar year was greater than the amount reported on the tax return. On February 24, 2014, the defendant had previously filed a Form 1040 U.S. Individual Income Tax Return for 2013 claiming -$1,500 total income. Neither return reported the five checks totaling $60,000 deposited into the First Niagara Account.
The total tax loss associated with the defendant’s conduct is $243,386.
The plea is the result of an investigation by the Internal Revenue Service, Criminal Investigations Division, under the direction of Jonathan D. Larsen, Special Agent-in-Charge, New York Field Office.
Sentencing is scheduled for April 3, 2020, before Judge Vilardo.
# # # #
Chinese National Sentenced to Prison for Entering the Restricted Grounds at Mar-a-Lago and Lying to U.S. Secret Service AgentsRead the Press Release
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida; Brian Swain, Special Agent in Charge of the U.S. Secret Service’s (USSS) Miami Field Office; and George L. Piro, Special Agent in Charge of the FBI’s Miami Field Office announced that Yujing Zhang, 33, a Chinese national, was sentenced today to prison after having been previously convicted by a South Florida federal jury of unlawful entry of restricted buildings or grounds and making false statements to U.S. Secret Service agents.
Zhang was sentenced by U.S. District Judge Roy K. Altman, in Fort Lauderdale, Florida to a total of eight months in prison, to be followed by two years of supervised release (Case No. 19CR80056).
According to the trial record, Zhang fraudulently gained entry onto the restricted grounds at the Mar-a-Lago Club where the U.S. President and other persons protected by the U.S. Secret Service were temporarily visiting. U.S. Secret Service agents detained Zhang at the main reception area due to her suspicious actions. Zhang was then escorted off the property for further questioning. During questioning, Zhang repeatedly misrepresented to U.S. Secret Service agents that she was at the Mar-a-Lago Club to attend a “United Nations Friendship Event.”
U.S. Attorney Fajardo Orshan commended the investigative efforts of the USSS’s Miami Field Office and the FBI’s Miami Field Office in this matter. The case was prosecuted by Assistant U.S. Attorneys Rolando Garcia and Michael Sherwin.
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.
Chinese National Pleads Guilty to Smuggling More Than 300 Endangered and Vulnerable Turtles from the U.S. to ChinaRead the Press Release
EUGENE, Ore.—A Chinese national pleaded guilty today for directing a scheme whereby hundreds of endangered and vulnerable turtles were purchased in the U.S. and smuggled via U.S. mail and commercial airline flights to China.
Xiao Dong Qin, 34, a resident of Shanghai, China, pleaded guilty to one count of conspiring to smuggle goods from the U.S.
According to court documents, beginning in at least May 2017 and continuing until June 2018, Qin directed an unindicted co-conspirator in Eugene to purchase more than 300 live turtles from reptile dealers in Alabama, California, Florida, Kentucky, Michigan, New Jersey, Nevada, North Carolina, and South Carolina. All of the turtles purchased and smuggled by Qin are protected by the Convention on International Trade in Endangered Species of Wild Fauna and Flora.
A two-year investigation by the U.S. Fish and Wildlife Service (USFWS) revealed that in a 13-month period, Qin facilitated the purchase and transportation of approximately 136 Florida box turtles, 76 eastern box turtles, 57 North American wood turtles, 20 spotted turtles, 18 diamondback terrapins, seven yellow-blotched map turtles, and one Blanding’s turtle. USFWS investigators determined the market value of the turtles involved in this investigation exceeded $250,000 in the Chinese pet trade.
In February 2019, Qin was arrested at the Los Angeles International Airport by USFWS agents when he arrived from Shanghai.
Qin faces a maximum sentence of ten years in prison, a $250,000 fine and three years of supervised release. He will be sentenced on February 27, 2020 before U.S. District Court Judge Michael J. McShane.
As part of the plea agreement, Qin has agreed to pay nearly $8,000 in restitution to rehabilitation facilities near Chicago and San Antonio; and The Turtle Conservancy near Los Angeles for costs associated with the care of turtles intercepted by law enforcement.
This case was investigated by USFWS with assistance from the U.S. Postal Inspection Service. It is being prosecuted by Pamela Paaso, Assistant U.S. Attorney for the District of Oregon.
Photo of Seized Eastern Box TurtleCalifornia Man Indicted on Multiple Drug ChargesRead 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 a federal grand jury has returned an indictment charging David Katz, 55, of Chula Vista, CA, with conspiracy to possess with intent to distribute five kilograms or more of cocaine and one kilogram or more of heroin, attempted possession with intent to distribute one kilogram or more of heroin, and attempted possession with intent to distribute five kilograms or more of cocaine. The charges carry a mandatory minimum penalty of 10 years in prison, and a maximum of life.
Assistant U.S. Attorney Jeremiah E. Lenihan, who is handling the case, stated that according to the indictment and information presented in court, on June 7, 2017, Homeland Security Investigations Special Agents seized two kilograms of heroin in Phoenix, AZ, and another 10 kilograms of cocaine in Buffalo, NY. Subsequent investigation revealed that the defendant funded a portion of the heroin and drove the heroin from California to the area of Phoenix, AZ. Katz also helped fund a portion of the cocaine that was seized in Buffalo. During the investigation, the defendant discussed with an undercover investigator, the sale of a portion of a warehouse he owns in Chula Vista, in an attempt to fund large quantity narcotics transactions.
Katz is currently detained in California and will be brought to the Western District of New York at a later date.
The indictment is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
# # # #
Cache Valley Resident Charged in Fraud Scheme, Allegations Include Diverting $462,000 from Vulnerable VictimRead the Press Release
SALT LAKE CITY –Thomas Fairbanks, age 66, of Logan, Utah, who faces a five-count indictment alleging he devised schemes to defraud investors, including a vulnerable adult, will be in federal court Dec. 5, 2019, at 10:15 a.m. for an initial appearance. The indictment alleges Fairbanks devised a scheme to defraud investors using materially false and fraudulent pretenses, representations and promises, and omissions of material facts.
As a part of the scheme, Fairbanks earned the trust of a vulnerable older adult, identified as B.D. in the indictment, and diverted at least $462,000 of her money for his personal use and benefit. B.D. is unmarried, has no children, and is in her 80s.
According to the indictment, Fairbanks was the founder and CEO of SupplyLine Partners, an unregistered business. The company maintains a website, which purports to provide marketing, administrative, and other business support services. It has never been registered to issue securities, the indictment alleges. Fairbanks is involved in other business entities.
Fairbanks offered and sold an investment opportunity in SupplyLine to B.D. and a couple, identified as J.H. and R.H., in the indictment. Fairbanks accepted $45,500 in cash from these victims, promising them a 6 percent return – or their money back. According to the indictment, investment contracts are securities.
Fairbanks made a number of misrepresentations to the investors, including telling them assets of other business collateralized their investment, they could liquidate their investments at any time, they would receive an accounting of their investment, and the funds would go toward SupplyLine’s business efforts – among other things.
In an effort to induce further investments, the indictment alleges Fairbanks began giving investment and financial advice to B.D. B.D. opened a joint personal checking and savings account with Fairbanks using her money. The indictment alleges B.D. believed Fairbanks would help manage her finances, deal with her finances in her best interest, not put her money at substantial risk, and help her write checks. The $462,000 he diverted from B.D.’s account is in addition to the $40,000 she invested in SupplyLine.
Fairbanks utilized his interests in other business entities to receive the misappropriated funds, the indictment alleges.
Combatting financial fraud targeted at seniors is a key priority of the U.S. Department of Justice and the U.S. Attorney’s Office in Utah. Together with federal, state, local and tribal partners, the Department of Justice and U.S. Attorney’s Office are committed to combatting financial exploitation through enforcement actions, training and resources, research, victim services, and public engagement efforts. The U.S. Attorney’s Office in Utah recently collaborated with the Utah Division of Aging and Adult Services to provide training on financial fraud and elder abuse for more than 100 law enforcement officers in Utah.
Fairbanks faces up to 20 years in prison for each of the wire fraud counts (two counts), up to five years for each count of securities fraud (two counts), and up to 10 years for the money laundering count. Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
Assistant U.S. Attorneys from the U.S. Attorney’s Office are prosecuting the case. The Utah Division of Securities along with special agents of the FBI are investigating the case.
Buffalo Man Pleads Guilty to Drug and Gun ChargesRead 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 Dijon Harris, 53, of Buffalo, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to possession with intent to distribute 28 grams or more of crack cocaine, and possession of a firearm in furtherance of drug trafficking activity. The charges carry a mandatory minimum penalty of 10 years in prison, a maximum of life, and a $5,000,000 fine.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that on September 5, 2014, law enforcement officers executed a search warrant at the defendant’s residence on Hewitt Avenue in Buffalo. They recovered crack cocaine; heroin; $120,485.00 in United States currency; four firearms; ammunition; and assorted drug paraphernalia including a grinder, two digital scales, razors, scissors, spoons, plastic straws, and packaging materials.
The plea 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, and the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard.
Sentencing is scheduled for March 31, 2020, before Judge Arcara.
# # # #
Brooklyn Man Pleads Guilty to Kidnapping ConspiracyRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Sherzod Mukumov pled guilty to conspiracy to commit kidnapping. As alleged in the indictment, Mukumov and his co-conspirators used a Taser to subdue and abduct a victim to collect a debt the victim purportedly owed to one of Mukukmov’s co-defendants. The plea proceeding was held before United States District Judge I. Leo Glasser. When sentenced, Mukumov faces up to life in prison, as well as forfeiture and a fine of up to $250,000.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the guilty plea.
In December 2018, the victim joined a pre-existing scheme of Mukumov and others to help applicants for New York State commercial driver’s licenses cheat on tests administered by the Department of Motor Vehicles, in exchange for cash. When the victim ended his involvement in the scheme after approximately two weeks, his former co-conspirators claimed he owed them money.
On the morning of March 28, 2019, Mukumov and his co-conspirators assaulted the victim outside an apartment building in Brooklyn. While the victim was clinging to the front door of the building, he was shocked multiple times by a Taser device held by one of Mukumov’s co-defendants, and lost consciousness. The victim subsequently regained consciousness inside a vehicle, with his hands bound. Mukumov and his co-defendants drove the victim to a deserted area in a parking garage, and took his telephone and other personal items. They then drove to a bank where they forced the victim to open an account and write them a check in partial payment of the purported debt. The victim was released later that day, after he was forced to surrender his driver’s license, green card and bank card.
The government’s case is being handled by the Office’s Public Integrity Section. Special Assistant United States Attorney Virginia Nguyen and Assistant U.S. Attorney Turner Buford are in charge of the prosecution.
The Defendant:
Sherzod Mukumov
Age: 27
Brooklyn, NYE.D.N.Y. Docket No. 19-CR-223 (ILG)
Bronx Man Sentenced to 24 Years in Prison for Violent RobberyRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, John B. DeVito, Special Agent in Charge of the New York Field Office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), and James P. O’Neill, Commissioner of the Police Department for the City of New York (“NYPD”), announced that WILFREDO SEPULVEDA, a/k/a “Dionico de la Cruz Rodriguez,” a/k/a “Tonito,” was sentenced yesterday in Manhattan federal court by United States Circuit Judge Richard J. Sullivan to 24 years in prison. SEPULVEDA was convicted of narcotics and robbery charges after a five-day trial in March 2019.
U.S. Attorney Geoffrey S. Berman said: “The defendant carried out a violent robbery to steal drugs and cash. In doing so, he threatened the lives of multiple innocent victims. I would like to extend my gratitude to the ATF and NYPD for their outstanding work in ensuring that the defendant faced the justice he deserved.”
ATF Special Agent-in-Charge John B. DeVito stated: “The defendant committed various acts of violence where he brandished knives and firearms and terrorized others for narcotics and money. These acts threatened the lives of both rival dealers and innocent citizens on the street. The core of the ATF mission is to protect the public from violent crime. To that end, we will work tirelessly with our partners to bring individuals bent on committing violent acts to justice. I would like to thank the members of the ATF/ NYPD SPARTA Task Force for their diligent work on this case. I would also like to extend my gratitude to the United States Attorney’s Office for their work in prosecuting the case.”
NYPD Commissioner James P. O’Neill stated: “I want to commend our law enforcement partners for bringing justice in this violent case. Working together, our quest to investigate and solve crime, and to keep New York and its residents safe, continues.”
According to the allegations contained in the Indictments, evidence presented at trial, and other court documents previously filed in Manhattan federal court:
In the spring of 2018, SEPULVEDA spent months plotting to rob his source of narcotics. On May 14, 2018, SEPULVEDA disguised himself in a wig and a dress, armed himself with a gun and a knife, and went to his drug dealer’s apartment to commit the robbery. Inside the apartment, SEPULVEDA encountered the dealer’s 83-year-old mother-in-law, who, at the time, was home alone. SEPULVEDA brandished the knife and firearm, threatened that elderly victim’s life, and then ransacked the apartment. After SEPULVEDA found approximately 1.5 kilograms of narcotics and $13,000 in cash, he fled the apartment and encountered a neighbor who attempted to intervene. The neighbor chased SEPULVEDA onto the street where SEPULVEDA engaged in a struggle with the neighbor near a school. During the struggle, SEPULVEDA brandished a firearm and threatened the neighbor’s life. Shortly thereafter, police responded to the scene of the crime, placed SEPULVEDA under arrest, and recovered the firearm, narcotics, and cash, as well as the dress and wig SEPULVEDA had used as a disguise.
* * *
In addition to his prison term, SEPULVEDA, 41, of the Bronx, New York, was also sentenced to five years of supervised release.
Mr. Berman praised the investigative work of the NYPD and the ATF, and in particular the Strategic Patterned Armed Robbery Technical Apprehension (“SPARTA”) Task Force, which is composed of agents and officers of the ATF and the NYPD.
The prosecution is being handled by the General Crimes Unit of the U.S. Attorney’s Office for the Southern District of New York. Assistant U.S. Attorneys Kyle A. Wirshba and Elinor L. Tarlow are in charge of the prosecution.
Broken Arrow Man Sentenced for Attempted Receipt of Child PornographyRead the Press Release
A Broken Arrow man was sentenced today in U.S. District Court to just over seven years in prison for the attempted receipt of child pornography, announced U.S. Attorney Trent Shores.
Chief U.S. District Judge John E. Dowdell sentenced Carl Thomas Spaeth, 35, to 87 months in federal prison to be followed by five years of supervised release, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. Spaeth will also be ordered to register as a sex offender.
“Carl Spaeth knowingly engaged in sexually graphic communications and requested child pornography from someone he thought to be a 14-year-old girl. He even arranged an in-person meeting with the purported child,” said U.S. Attorney Trent Shores. “Rather than finding a teenage girl at the meet spot, Spaeth found himself face-to-face with law enforcement agents from the FBI and Tulsa Police Department. I am so thankful for the work of law enforcement to keep children safe from predators like Mr. Spaeth.”
Spaeth pleaded guilty on Sept. 5. In his plea agreement, Spaeth admitted that between July 5 and July 10, 2019, he used a cell phone app to talk with an individual he believed to be a 14-year-old girl. In actuality, he was communicating with a law enforcement officer. During the course of the conversation, Spaeth described sexual acts he wanted to engage in with the “girl.” He further asked for explicit pictures and sent sexually explicit pictures of himself via the app.
This prosecution is the result of Operation Independence Day, a month-long operation led by the FBI to apprehend child predators and recover victims of child exploitation and sex trafficking. The operation was executed during the month of July.
The FBI and Tulsa Police Department conducted the investigation. Assistant U.S. Attorney Victor A.S. Régal prosecuted the case.
Operation Independence Day is part of the broader Project Safe Childhood initiative. PSC combats the growing epidemic of child sexual exploitation and abuse and was launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Brockton Man Pleads Guilty to Federal Firearm and Drug OffensesRead the Press Release
BOSTON – A Brockton man pleaded guilty today in federal court in Boston to firearm and drug charges.
Kawana Tillman, 47, pleaded guilty to being a felon in possession of a firearm and ammunition, one count of possession with intent to distribute cocaine base and one count of possession with intent to distribute more than 28 grams of cocaine base. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Feb. 26, 2020. Tillman was arrested on April 30, 2019, and has been in custody since.
On March 10, 2018, Tillman was illegally in possession of a Glock, Model 26, 9mm semi-automatic handgun and three rounds of 9mm ammunition. Tillman has prior felony drug conspiracy and firearm convictions, and is therefore prohibited from possession firearms and ammunition. On March 19, 2018, and April 30, 2019, Tillman was in possession of various amounts of cocaine base.
The charge of being a felon in possession of a firearm and ammunition provides a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. The charge of possession with intent to distribute cocaine base carries a sentence of up to 20 years in prison, a minimum of three years and up to a lifetime of supervised release and a fine of up to $1 million. The charge of possession with intent to distribute 28 grams or more of cocaine base provides for a mandatory minimum sentence of five years and up to 20 years in prison, a minimum of three years and up to a lifetime of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Field Division; Plymouth County District Attorney Timothy J. Cruz; Suffolk County District Attorney Rachael Rollins; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Boston Police Commissioner William Gross made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Lelling’s Organized Crime and Gang Unit is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. 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 law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Brazilian National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON - A Brazilian national pleaded guilty and was sentenced today in federal court in Boston for illegally reentering the United States after being deported.
Antonio Ferreira, 56, pleaded guilty to one count of illegal reentry of a deported alien, and was sentenced by U.S. District Court Judge Richard G. Stearns to time served (approximately 17 months). Following the sentencing hearing, Ferreira was transferred to ICE custody and will be placed into removal proceedings.
In 2007, Ferreira was encountered by law enforcement and determined to be illegally present in the United States. Ferreira was placed into removal proceedings and on April 5, 2007, he was deported to Brazil. Sometime thereafter, Ferreira illegally reentered the United States. In June 2018, law enforcement officers encountered Ferreira, obtained his fingerprints, and matched them to the prints in his alien file.
United States Attorney Andrew E. Lelling and Marcos D. Charles, Acting Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit prosecuted the case.
Bellingham Man Sentenced for Million Dollar Embezzlement SchemeRead the Press Release
BOSTON – A Bellingham man was sentenced today in federal court in Boston in connection with a scheme to embezzle over $1 million from a Massachusetts company.
Darren Cormier, 35, was sentenced by U.S. District Court Judge Richard G. Stearns to 31 months in prison, three years of supervised release and ordered to pay forfeiture and restitution each in the amount of $1,284,792. In March 2019, Cormier pleaded guilty to one count of conspiracy to commit wire fraud and five counts wire fraud. Earlier this month, co-conspirator Michael H. Tran, 35, of Woonsocket, R.I., was sentenced in connection with the same scheme. Tran was sentenced 46 months in prison, three years of supervised release and ordered to pay forfeiture and restitution each in the amount of $1,284,792.
Cormier, who worked as a product manager for a Bellingham manufacturing company, worked with Tran to embezzle millions of dollars from the company. From December 2013 to May 2016, Cormier told the company owners that he was purchasing equipment for the company using his PayPal account, which was linked to the company’s credit cards. Instead of making legitimate equipment purchases, however, Cormier used his PayPal account to pay Tran, who withdrew the money in cash and used it to pay for personal expenses. Tran and Cormier concealed the fraud by adjusting the names settings in Tran’s PayPal account to make it appear on account statements as if the payments were submitted to legitimate vendors. Cormier and Tran also submitted fraudulent invoices and purchase orders to the company in the name of some non-existent vendors, such as “A Plug Tool Supply” and “MHT Industrial.”
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement. Assistant U.S. Attorney Jordi de Llano, Deputy Chief of Lelling’s Securities and Financial Fraud Unit, prosecuted the case.
Bedford Man Pleads Guilty to KidnappingRead the Press Release
BOSTON – A Bedford man pleaded guilty in federal court in Boston in connection with a kidnapping that began in Concord, Mass., and ended in Connecticut.
Julian Field, 24, pleaded guilty to one count of kidnapping before U.S. Senior District Court Judge Douglas P. Woodlock who scheduled sentencing for March 3, 2020. In February 2019, Field was charged and arrested in Key West, Fla.
On the evening of Feb. 3, 2019, Field broke into the home of a Concord resident and forced the victim to drive him to a train station in Connecticut, first stopping in Springfield, Mass., to attempt to procure illegal drugs. Field ultimately allowed the victim to leave and authorities subsequently tracked Field to Florida, where he was arrested.
The charge of kidnapping provides for a sentence of up to life in prison, up to five years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Concord Police Chief Joseph O’Connor; and Bedford Police Chief Robert Bongiorno made the announcement today. FBI Miami and the Monroe County (FL) Sheriff’s Office provided valuable assistance with the investigation. Assistant U.S. Attorney Anne Paruti with Lelling’s Criminal Division is prosecuting the case.
Amherst Man Charged with Unlawful Possession of A MachinegunRead 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 Rejjie Ni, 22, of Amherst, NY, was arrested and charged by criminal complaint with unlawful possession of a machine gun, and unlawful possession of an unregistered machinegun. The charges carry a maximum penalty of 10 years in prison.
Assistant U.S. Attorney Jeremiah E. Lenihan, who is handling the case, stated that according to the complaint, on March 18, 2019, the Amherst Police Department responded to an apartment complex on Herron Drive. A maintenance worker conducting a routine inspection of the defendant’s apartment noticed a number of firearms in the apartment in plain view. The maintenance worker left the building and notified his manager who then notified police.
When officers arrived, Ni allowed them into the apartment. Once inside, officers made contact with Ni and three others. Officers discovered numerous rifles, ammunition boxes, and ammunition magazines, as well as a box that appeared to be for a rifle that displayed a shipping address from the State of Texas, sent directly to Ni in New York State.
Officers then obtained a New York State search warrant and recovered a total of 33 rifles, two shotguns and numerous rounds of ammunition. Nineteen rifles and some of the ammunition were located in Ni's room. The officers seized three of the firearms which were believed to be illegal under New York State law.
According to the complaint, the defendant converted at least one of the firearms into an illegal machinegun.
The defendant is being held following a detention hearing this afternoon before U.S. Magistrate judge Michael J. Roemer.
The complaint is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division, and the Amherst Police Department, under the direction of Chief John Askey.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
# # # #