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15 January 2020
Man Sentenced for Role in Large Scale Marijuana ConspiracyRead the Press Release
A man who helped transport 1,500 pounds of marijuana from California to sell in Tulsa was sentenced Wednesday in U.S. District Court, announced U.S. Attorney Trent Shores.
Chief U.S. District Judge John E. Dowdell sentenced Kong Meng Vang, 36, of Tulsa, to time served and two years of supervised release. As a condition of his supervised release, he must serve four months of home detention.
“Kong Meng Vang chose to transport and deal massive amounts of marijuana in the Tulsa area. Now, unsurprisingly, he has been held accountable by the criminal justice system. That is a common path for those who choose to participate in the illegal drug business,” said U.S. Attorney Trent Shores. “The Tulsa Police Department broke this case wide open. And thanks to the unified effort of those officers, the Drug Enforcement Administration, IRS-Criminal Investigation, and U.S. Marshals, we dismantled a multi-state illicit marijuana network.”
In August 2018, Vang pleaded guilty to drug conspiracy, possession with intent to distribute 100 kilograms or more of marijuana and money laundering. The defendant admitted to transporting 1,500 pounds of marijuana from California to sell in the Tulsa area. As part of the plea agreement, the United States and Vang agreed to the forfeiture of 21 of the defendant’s vehicles along with seven residences, firearms and ammunition.
This case resulted from a joint investigation conducted by the Tulsa Police Department; Drug Enforcement Administration; U.S. Department of Treasury, IRS-Criminal Investigation; and U.S. Marshals Service. Assistant U.S. Attorney Joseph F. Wilson prosecuted the case as part of the U.S. Attorney’s Organized Crime and Drug Enforcement Task Force.
Man Pleads Guilty to Straw Purchasing a FirearmRead the Press Release
ALEXANDRIA, Va. – A Lorton man pleaded guilty today to straw purchasing a firearm.
“Every straw purchased firearm is a gun that can wind up in the hands of a prohibited person,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “We will continue to use federal firearms laws to prosecute straw purchasers and hold them accountable for their role in trafficking illegally purchased firearms. As I recently stated, the violation is our threshold—one straw purchased firearm on one occasion will be prosecuted. I want to commend the ATF for their leadership and commitment to investigating these important cases.”
According to court documents, Daquan Anthony Poindexter, 22, straw purchased a firearm from a federal firearms licensee (FFL) in Eastern Virginia for another individual. In making the purchase, Poindexter represented himself as the true buyer of the firearm, but immediately after he received the firearm he transferred it to the straw purchaser and was paid for making the purchase.
“This investigation demonstrates how criminals abuse laws governing firearm purchases,” said Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division. “Straw purchased firearms can end up in the hands of violent offenders and prohibited persons. If you lie when you buy a firearm, you will be held accountable.”
Poindexter pleaded guilty to making false statements with respect to the purchase of a firearm and faces a maximum penalty of five years in prison when sentenced on April 10. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division, made the announcement after U.S. District Judge Rossie D. Alston, Jr. accepted the plea. Special Assistant U.S. Attorney Anthony W. Mariano is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-004.
Malden Woman Indicted on Bank Fraud and Identity Theft ChargesRead the Press Release
BOSTON – A Malden woman has been indicted by a federal grand jury in connection with a scheme to embezzle more than $795,000 from her employer.
Kayla Figelski, 32, was charged with seven counts of bank fraud and one count of aggravated identity theft. Figelski was previously charged and arrested on Dec. 19, 2019.
According to court documents Between April 2017 and June 2019, Figelski stole at least $795,000 from her employer, a law firm in Malden. Figelski allegedly forged checks to herself from her employer’s checking accounts, including conservatorship and trust accounts her employer maintained for its elderly clients and their estates, and deposited the checks into her own account, from which she withdrew the funds, or directly cashed the checks. It is further alleged that to hide her scheme, Figelski modified bank statements to make it appear that the checks were written out to legitimate vendors rather than to Figelski.
The charge of bank fraud provides a sentence of up to 30 years in prison, five years of supervised release and a fine of up to $1 million. The charging statute for aggravated identity theft provides for a mandatory sentence of two years in prison to be served consecutive to any other sentence imposed, up to one year of supervised release and a fine of $250,000 or twice the gross gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Valuable assistance was provided by the Malden Police Department. Assistant U.S. Attorney Kristen A. Kearney of Lelling’s Securities and Financial Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Mailed meth package sends California man to prisonRead the Press Release
BILLINGS—A California man who picked up a package of meth that had been mailed to Billings was sentenced today to 54 months in prison and five years of supervised release for conviction on drug trafficking charges, U.S. Attorney Kurt Alme said.
Michael Armando Sanchez, 27, of Bakersfield, CA, pleaded guilty in November to possession with intent to distribute meth.
Chief U.S. District Judge Dana L. Christensen presided.
The prosecution said in court records that in March 2019, a U.S. Postal Service mail carrier attempted to deliver a package from Bakersfield, CA, to an apartment unit in Billings. The unit was unoccupied, and the mail carrier then knocked on a basement apartment. Two men answered the door. As the carrier left, one of the men claimed to be the “David Castillo,” who was later identified as Sanchez, and said that the package belonged to him. Sanchez was unable to produce any identification to receive the package and was informed that identification would be needed to retrieve the package from the main U.S. Postal Service office. Both men became irate and began yelling and calling the carrier names. The carrier reported the incident to her supervisor.
Both men went to the post office and spoke with the manager about getting the package. The men became verbally aggressive about not getting the package, and after leaving, Sanchez called the post office again asking about the package.
Law enforcement arranged for a K9 to sniff the package and the dog alerted to the presence of narcotics. A search warrant was executed on the package, which was found to contain about eight ounces of meth. The package was given to the postal inspector for a controlled delivery from the post office.
The inspector called Sanchez and told him the post office could release the package. Both men arrived to pick up the package. Law enforcement arrested Sanchez after he took possession of the package. Sanchez admitted he knew the package contained meth and that it had been sent to him under a fake name.
Assistant U.S. Attorney Julie Patten prosecuted the case, which was investigated by the FBI’s Transnational Organized Crime West task force and USPS.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 36% from 2013 to 2018. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Leader of Utah Drug Trafficking Organization Gets 23 Years in Federal Prison for Drug DistributionRead the Press Release
SALT LAKE CITY – Brenton Michael Forney, 28, of Salt Lake City, the lead defendant in a federal drug case targeting a significant drug trafficking organization distributing methamphetamine, heroin, and fentanyl in Utah communities, will serve 276 months in federal prison.
Forney pleaded guilty in October to one count of possession of methamphetamine, heroin, and fentanyl with intent to distribute. As a part of the agreement with federal prosecutors, Forney admitted that in October 2018, he was in possession of the controlled substances and intended to sell them. The drugs, seized following the execution of a search warrant, were tested and determined to be approximately 12,591.5 grams of actual methamphetamine, approximately 6,000 grams of a mixture containing methamphetamine, approximately 10,054 grams of heroin, and approximately 1,789 grams of fentanyl.
“The women and men of Utah law enforcement dismantled a prolific drug trafficking operation,” U.S. Attorney John W. Huber said today. “They significantly slowed the flow of extraordinarily dangerous substances into our neighborhoods, such as fentanyl, heroin and methamphetamine. I am confident that this operation, and others like it, helped saved Utah lives.”
U.S. District Judge Jill N. Parrish imposed the sentence Tuesday afternoon in federal court. The sentencing guideline range for Forney was life in federal prison with a 25-year mandatory minimum sentence given the quantity of drugs involved and two previous convictions for drug trafficking. The plea agreement included a stipulated sentence of 23 years. Forney will forfeit $491,674.52 in cash and five firearms and associated ammunition as a part of the resolution of the case.
Forney and six other defendants were charged with conspiracy to distribute controlled substances, two counts of possession of a controlled substance with intent to distribute, four counts of possession of a firearm by a restricted person, one count of possessing a firearm in furtherance of a drug trafficking crime, one count of carrying a firearm during and in relation to a drug trafficking crime, eight counts of distribution of a controlled substance, 19 counts of use of a communication facility in a drug trafficking offense, and one count of structuring in a superseding indictment returned in November 2018.
During the investigation of the case, approximately 47 pounds of methamphetamine, 26.4 pounds of heroin, 4.4 pounds of a mixture or substance containing a detectable amount of fentanyl, and eight guns were seized.
At sentencing, Assistant U.S. Attorney Michael Kennedy said prosecutors learned that in the aftermath of Forney’s arrest and the seizure of his drugs, there was a significant decline in the availability of illegal drugs in the Salt Lake Valley for months afterward.
Assistant U.S. Attorneys in the Utah U.S. Attorney’s Office prosecuted the case. Officers and agents with the DEA Metro Narcotics Task Force, Layton Police Department, and the Davis Metro Narcotics Strike Force investigated the case.
Lawrence Man Sentenced to 78 Months for Participating in Fentanyl Trafficking ConspiracyRead the Press Release
Concord – United States Attorney Scott W. Murray announced that Henry Marte, 22, of Lawrence, Massachusetts, was sentenced on Tuesday to 78 months in federal prison for participating in a fentanyl trafficking conspiracy.
According to court documents and statements made in court, Marte participated in a drug trafficking organization that was led by Sergio Martinez. Martinez employed numerous individuals to sell fentanyl to customers from various New England states, including New Hampshire. Some defendants, including Marte, worked for the Martinez organization by distributing 200-gram bags of fentanyl on a daily basis.
“Interstate fentanyl traffickers have caused tremendous damage to the health and safety of communities throughout New England,” said U.S. Attorney Murray. “In order to protect our citizens, we are working with all of our law enforcement partners to stop the flow of this deadly drug. Those who are responsible for distributing fentanyl should expect to spend substantial time in federal prison.”
This investigation was conducted by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
The case was a collaborative investigation that involved the DEA; the New Hampshire State Police; the Hillsborough County Sheriff’s Office; the Nashua Police Department; the Massachusetts State Police; the Massachusetts Attorney General’s Office; the New Hampshire Attorney General’s Office; the Essex County District Attorney’s Office; the Internal Revenue Service; Immigration and Customs Enforcement’s Homeland Security Investigations; United States Customs and Border Protection Boston Field Office; the United States Marshals Service; the United States Department of State’s Diplomatic Security Service; the Manchester Police Department; the Lisbon Police Department; the Littleton Police Department; the Seabrook Police Department; the Haverhill (MA) Police Department; the Methuen (MA) Police Department; the Lowell (MA) Police Department; and the Maine State Police.
The case is being prosecuted by Assistant United States Attorneys Georgiana L. Konesky and Seth R. Aframe.
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Jury convicts Browning man of rape, sexual abuse of two womenRead the Press Release
GREAT FALLS—A jury today convicted a Browning man of sexually assaulting two women on the Blackfeet Reservation in 2018, U.S. Attorney Kurt Alme said.
A jury found Alphonse Bird, 82, guilty of one count of aggravated sexual abuse and one count of sexual abuse. The jury acquitted Bird of a second count of aggravated sexual abuse. The trial began on Monday.
Bird faces a maximum of life in prison, a $250,000 fine and five years of supervised release.
U.S. District Judge Brian Morris ordered Bird to report to custody on Jan. 31 and set sentencing for May 21.
“Mr. Bird posed a serious danger to women in the community. We know that Native American women face too much violence, including sexual violence, and it must stop. Those who prey on women will face prosecution to the full extent of the law. I want to thank Assistant U.S. Attorney Kalah Paisley, the FBI, Bureau of Indian Affairs and Blackfeet Law Enforcement Services for their work investigating and prosecuting this case,” U.S. Attorney Alme said.
The prosecution presented evidence at trial that on Sept. 15, 2018, the first victim approached a Blackfeet Law Enforcement officer near the Town Pump in Browning and reported that Bird had just raped her. Bird had picked her up near the Blackfeet Care Center and she thought he was giving her a ride home. Instead, Bird drove toward East Glacier Park, parked the vehicle and raped her. The victim couldn’t get Bird to stop until she got sick. He dropped her off near Advanced Towing and witnesses helped her. The victim promptly reported the assault and cooperated with the investigation.
In the second assault, a witness called law enforcement on Nov. 4, 2018 to report an incident she had just observed south of Browning in which a vehicle was parked on the side of the road. The witness pulled up to the passenger side to see if the occupants needed assistance. Bird was in the driver’s seat and the victim was a passenger. The victim attempted to sit up but was unable to do so. Bird drove away. The witness tried to follow but could not keep up and called law enforcement. A law enforcement officer located the vehicle and when she approached, she saw Bird, who had his right arm in a sling and was putting a glove on his left hand. Bird said he was bringing his passenger home and was just turning around.
The victim told the officer that Bird had picked her up and she thought he was going to take her home. The victim was intoxicated and had trouble recounting what happened, but said Bird sexually assaulted her despite telling him to stop. The victim said Bird kept telling her she was going to be okay.
DNA analysis linked Bird to evidence collected from both of the victims.
Assistant U.S. Attorney Kalah Paisley prosecuted the case, which was investigated by the FBI, the Bureau of Indian Affairs and Blackfeet Law Enforcement.
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Jury Finds Texas Attorney and Client Guilty of Conspiring to Defraud the Internal Revenue ServiceRead the Press Release
A federal jury convicted a Texas attorney John O. Green and his client Thomas Selgas today for conspiring to defraud the United States, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division. The jury also convicted Selgas of tax evasion. Selgas’s wife, Michelle Selgas, was acquitted of conspiring to defraud the United States and tax evasion.
According to the evidence presented at trial, Selgas conspired with Green, an attorney licensed to practice in Texas, to defraud the United States by obstructing the Internal Revenue Service (IRS) from assessing and collecting Selgas’s taxes. Selgas and his wife owed approximately $1.1 million in outstanding taxes that Selgas refused to pay. When the IRS made efforts to collect the outstanding taxes, Selgas concealed funds by using Green’s Interest on Lawyers Trust Account
(IOLTA) rather than using accounts in his own name. An IOLTA is a bank account used by a lawyer to hold money in trust for clients. From 2007 to 2017, Selgas deposited proceeds from the sale of gold coins and other income into Green’s IOLTA and Green would then pay the Selgases personal expenses, including their credit card bills, from that account. Selgas and Green also filed a false tax return on behalf of MyMail, Ltd., an intellectual property development and licensing partnership Selgas co-founded, omitting a substantial portion of the partnership’s income.
U.S. District Judge Karen Gren Scholer will set sentencing at a later date. Selgas faces a statutory maximum sentence of five years in prison for each of the conspiracy and tax evasion counts.
Green faces a maximum sentence of five years in prison for the conspiracy count. They also face a period of supervised release, restitution and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman thanked agents of the IRS - Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Robert A. Kemins and Mara Strier, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Jonesboro Drug Conspiracy Results in Seizure of $35,000 Worth of Methamphetamine, Multiple GunsRead the Press Release
LITTLE ROCK— Seven defendants are in custody after federal and state authorities made multiple arrests in Jonesboro this morning as part of an ongoing investigation. The portion of the investigation that concluded with today’s arrests resulted in the seizure of more than five pounds of methamphetamine and six firearms. The overall investigation, which is continuing, involves the seizure of more than 12 pounds of methamphetamine and 31 guns, to date. Cody Hiland, United States Attorney for the Eastern District of Arkansas, and Diane Upchurch, Special Agent in Charge of the FBI Little Rock Field Office, announced today’s arrests.
The large-scale drug operation in Northeast Arkansas is, according to one of five related federal indictments, headed by Eiichi Moore, a known member of the Crip gang. Today’s arrests are in conjunction with the announcement of these indictments of eight individuals who were charged by a federal grand jury on January 7, 2020. Moore, 41, and two others—Lakendra Thomas, 27, and Jullian Woods, 33, all of Jonesboro—are charged with conspiracy to distribute methamphetamine as well as distribution of methamphetamine. An additional co-conspirator has been indicted but has not been arrested and is currently a fugitive.
During this morning’s arrests, police announced their presence at Moore’s residence and immediately heard shots fired from inside the home. Officers confirmed that Moore fired the shots while he and Thomas were in the master bedroom. Moore fired towards the living room, where minor children were sleeping. No one was injured in the shooting.
Other defendants whose charges were announced today, all of whom reside in Jonesboro, include Alva Turner, 42, who is charged with possession of methamphetamine with intent to distribute; Lawrence Cannon, 49, who is charged with being a felon in possession of a firearm; Mike Crockett, 31, who is charged with distribution of methamphetamine; and Percy Law, Jr., 39, who is charged with possession of cocaine and crack cocaine with intent to deliver, possession of a firearm in furtherance of a drug trafficking crime, and three counts of distribution of methamphetamine. Cannon is currently in state custody on unrelated charges. The other six defendants are being held in federal custody and will be seen Thursday by United States Magistrate Judge Jerome T. Kearney.
The indictments stem from an Organized Crime Drug Enforcement Task Force, or OCDETF, investigation that began in March 2016. While the overall investigation has thus far uncovered more than 12 pounds of methamphetamine, the defendants charged in the indictments announced today are allegedly responsible for five pounds of methamphetamine that law enforcement intercepted. Five pounds of methamphetamine has a street value ranging from $35,000 to $50,000. From these defendants officers also seized six firearms, one of which was a semi-automatic firearm with an extended capacity magazine to hold extra ammunition, as well as cocaine and various drug paraphernalia. Four of the firearms, including an AR-15; numerous additional magazines, some with extended capacity; and over $35,000 in cash, were seized as part of today’s arrests.
“Today’s arrests signify our commitment to stopping drug trafficking throughout Eastern Arkansas,” stated United States Attorney Hiland. “This operation shows that our reach extends to those who traffic narcotics in Jonesboro and anywhere else in the Eastern District of Arkansas. We appreciate the collaboration between the federal and state partners that made this investigation possible.”
“Today’s arrests disrupted a major drug trafficking network in Northeast Arkansas and were the culmination of an extensive OCDETF investigation involving our numerous federal, state, and local partners,” said Special Agent in Charge Upchurch. “Our goal with this OCDETF investigation was to reduce the flow of illegal drugs by identifying and targeting major traffickers within our state. Today’s operation shows what can be accomplished by Arkansas law enforcement when we work together to counter the scourge of drugs and end the violence drug traffickers instill in our communities.”
Today’s operation is the result of a joint investigation between the FBI; the Bureau of Alcohol, Tobacco, Firearms, & Explosives; the Arkansas State Police; the Jonesboro Police Department; the Craighead County Sheriff’s Office; and the 2nd Judicial Drug Task Force. The case is being prosecuted by Assistant United States Attorney Erin O’Leary.
An indictment contains only allegations. Defendants are presumed innocent unless and until proven guilty.
This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Joint Statement of Allegations Regarding Mississippi's PrisonsRead the Press Release
Special Agent in Charge of the FBI Jackson Division Michelle A. Sutphin, United States Attorney for the Northern District of Mississippi William C. Lamar and United States Attorney for the Southern District of Mississippi Mike Hurst today release the following statement:
"The FBI and United States Attorney's Offices are aware of the allegations regarding Mississippi's prisons. Allegations of the violation and deprivation of civil rights, as well as criminal activity, continue to be taken very seriously by our offices. To report federal criminal violations to the FBI, go to https://tips.fbi.gov. To file a complaint to DOJ’s Civil Rights Division about conditions within the prisons, call 877-218-5228 or 202-514-6255.”
Johnstown Man Charged with Possession and Distribution of FentanylRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., was indicted by a federal grand jury in Johnstown on a charge of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
The Indictment named Nathaniel Jackson, 44, as the sole defendant.
According to the Indictment presented to the court, on or about April 29, 2019, Jackson distributed and possessed with intent to distribute a quantity of a mixture and substance containing a detectable amount of fentanyl.
The law provides for a maximum sentence of 20 years in prison and a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Jefferson City Man Sentenced for Bombing Former Spouse's VehicleRead the Press Release
St. Louis – Dean Allen McBaine, 31, of Jefferson City, MO, was sentenced to 60 months in prison following his conviction by a jury in October for one count of possessing an unregistered destructive device. McBaine appeared before U.S. District Court Judge Audrey G. Fleissig who ordered McBaine to pay restitution in the amount of $34,705.21.
According to testimony at trial, McBaine was involved in a domestic dispute with his current wife at their residence in Jefferson City. During the incident, McBaine discharged several rounds from a handgun into the bedroom where his then 13-year-old son was sleeping. Consequently, McBaine’s former spouse and mother of the boy retrieved him from Jefferson City and moved him to her home in St. Louis. Orders of protection against McBaine were issued for the former spouse and son.
Approximately three weeks later, on September 2, 2018 in St. Louis City, an explosion that also damaged two adjacent homes destroyed the former spouse’s red Mini Cooper automobile.
The co-defendant, Michael Bushman, pled guilty and was sentenced on November 22, 2019 to 13 months in prison. Bushman admitted to preparing a “sparkler bomb” with McBaine and detonating it under the vehicle in the victim’s driveway. A neighbor’s security camera system captured the explosion.
The case was investigated by the Metropolitan St. Louis Police Department, the St. Louis Fire Department, and the St. Louis division of the FBI. The case was handled by Assistant United States Attorneys John Davis and Paul D’Agrosa.
Illinois Man Admits Role in Conspiracy to Distribute Cocaine and HeroinRead the Press Release
NEWARK, N.J. – A Illinois man today admitted conspiring to transport heroin and cocaine to New Jersey, U.S. Attorney Craig Carpenito announced.
Daniel Gonzalez Maldonado, 25, of Carpentersville, Illinois, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging him with one count of conspiracy to distribute and possess with the intent to distribute one kilogram or more of heroin and 500 grams or more of cocaine.
According to documents filed in this case and statements made in court:
On June 6, 2019, a conspirator paid Maldonado approximately $1,000 to drive the conspirator and a quantity of narcotics from Illinois to the East Coast. Maldonado allowed the conspirator to store approximately one kilogram of cocaine and approximately two kilograms of heroin in a Norristown, Pennsylvania, hotel room that was reserved in Maldonado’s name. The investigation revealed that at least one of these kilograms of narcotics would have been distributed in New Jersey.
The count to which Maldonado pleaded guilty carries a mandatory minimum sentence of 10 years in prison, a maximum sentence of life imprisonment and a fine of up to $10 million. Sentencing is scheduled for April 23, 2020.
U.S. Attorney Carpenito credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Ray Donovan in New York, with the investigation leading to today’s guilty plea.
The arrest was the result of an investigation by the New York Strike Force, a crime-fighting unit comprising federal, state and local law enforcement agencies supported by the Organized Crime Drug Enforcement Task Force and the New York/New Jersey High Intensity Drug Trafficking Area.
The Strike Force is housed at the DEA’s New York Division and includes agents and officers of the DEA; the New York City Police Department; the New York State Police; Immigration and Customs Enforcement – Homeland Security Investigations; the U. S. Internal Revenue Service Criminal Investigation Division; the Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection; U.S. Secret Service; the U.S. Marshals Service; New York National Guard; the Clarkstown Police Department; U.S. Coast Guard; Port Washington Police Department; and New York State Department of Corrections and Community Supervision.
The government is represented by Assistant U.S. Attorney Francesca Liquori of the U.S. Attorney’s Office’s Organized Crime Drug Enforcement Task Force/Narcotics Unit in Newark.
Houston Men Arrested in Beaumont in Armored Car Robbery SchemeRead the Press Release
BEAUMONT, Texas – Four Houston men have been arrested on federal violations in the Eastern District of Texas announced. U.S. Attorney Joseph D. Brown
David Nathan Taylor, 28; Prentis Leewood Delaney, 29; Coray Quan Brown, 32; and Jamarius Early Jones, 21; appeared in federal court in Beaumont today for initial appearances. A criminal complaint charging the individuals with conspiracy to commit Hobbs Act robbery was signed by U.S. Magistrate Judge Zack Hawthorn on Jan. 14, 2020. The Hobbs Act prohibits actual or attempted robbery that has an effect on interstate commerce by reason of their repetition and aggregate effect on the economy. Investigators believe the crew is responsible for the October 2019 murder of an armored car guard in northwest Houston.
According to the criminal complaint filed in the Eastern, District of Texas, the Federal Bureau of Investigation was investigating a series of armored car robberies, including the fatal robbery of a Loomis armored car courier that occurred on Oct. 24, 2019, in Houston. During that robbery, three individuals brandished firearms and demanded money from the courier. The courier was shot and killed. A subsequent investigation led officers to these four subjects. On Jan. 13, 2020, these individuals were observed together in Houston prior to traveling to Lake Charles in two separate vehicles. Upon arriving in Lake Charles the subjects were observed by law enforcement following an armored vehicle that then traveled to Beaumont. After arriving in Beaumont they were encountered by law enforcement and subsequently arrested. Inside one of the vehicles officers discovered two AR-15 style rifles, a pistol, three masks, three sets of gloves, five cell phones, and two open bottles of rubbing alcohol.
If convicted, the defendants face up to 20 years in federal prison.
This case is being investigated by the Federal Bureau of Investigation, the Beaumont Police Department, the Texas Department of Public Safety, the Lake Charles Police Department and the Houston Police Department. This case is being prosecuted by Assistant U.S. Attorney Russell E. James.
A grand jury indictment or complaint is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Honduran Sentenced to 16 Months in Federal Prison for Illegal Re-EntryRead the Press Release
NEW ORLEANS – U.S. Attorney Peter Strasser announced today that FREDDY OVIDIO CASTILLO-CRUZ, (“CASTILLO-CRUZ”), age 40, was sentenced on January 9, 2020 to 16 months in federal prison for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a).
According to documents filed in open court, CASTILLO-CRUZ reentered the United States after he was previously deported on December 5, 2012. CASTILLO-CRUZ faced a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment.
U.S. Attorney Strasser praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U. S. Attorney Carter K. D. Guice, Jr. is in charge of the prosecution.
Hartford Man with Violent Criminal History Returns to Prison for Illegally Possessing AmmunitionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that TYSHAWN COLEMAN, 30, of Hartford, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 46 months of imprisonment, followed by three years of supervised release, for illegally possessing ammunition.
According to court documents and statements made in court, in the early morning hours of August 5, 2017, Hartford Police stopped a car after a witness had reported that the car was involved in a fatal shooting on Edgewood Street less than 30 minutes earlier. Coleman was sitting in the front passenger seat. An officer conducted a pat-down of Coleman and retrieved two clear zip-lock bags from his pocket. One of the bags contained marijuana, and the other contained a .45 caliber bullet.
Prior to August 2017, Coleman had sustained two felony convictions for conspiracy to commit murder, three felony convictions for accessory to first-degree assault, one felony conviction for first degree assault, and one felony conviction for sale of a controlled substance.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Coleman has been detained since his arrest. On October 24, 2019, he pleaded guilty to one count of possession of ammunition by a convicted felon.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hartford Police Department. The case was prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
This prosecution 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 neighborhoods safer for everyone.
Gang Member Sentenced to 108 Months in Federal Prison for Possession of Stolen FirearmsRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that Michael Lorenzo Martinez Castoreno, age 35, of Moses Lake, Washington, was sentenced today after having pleaded guilty on July 15, 2019, to possession of stolen firearms. Senior United States District Judge Wm. Fremming Nielsen sentenced Castoreno to a 108-month term of imprisonment, to be followed by a 3-year term of court supervision after he is released from federal prison.
According to information disclosed during court proceedings, on June 5, 2018, Castoreno, a documented criminal street gang member, led police on a high speed chase, stopping only after he crashed into a law enforcement vehicle. Officers arrested Castoreno and found three stolen firearms in his vehicle.
United States Attorney Hyslop said, “The United States Attorney’s Office will prosecute aggressively individuals who unlawfully possess firearms. Such offenses are serious. I commend the Moses Lake Police Department, Grant County Sheriff’s Office, Adams County Sheriff’s Office, U.S. Marshals Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives for their commitment to this successful prosecution.”
This case was prosecuted under the Project Safe Neighborhoods (PSN) program. PSN is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. The U.S. Attorney’s Office is partnering with federal, state, local, and tribal law enforcement to specifically identify the criminals responsible for violent crime in the Eastern District of Washington and pursue criminal prosecution.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian partners: the Moses Lake Police Department, Grant County Sheriff’s Office, Adams County Sheriff’s Office, U.S. Marshals Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. For more information about Project Guardian, please see [: https://www.justice.gov/ag/project-guardian-memo-2019/download].
This case was investigated by the Spokane Resident Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service, Moses Lake Police Department, and the Sheriff’s Offices of Grant and Adams Counties. This case was prosecuted by Patrick J. Cashman, an Assistant United States Attorney for the Eastern District of Washington.
Franklin County Woman Pleads Guilty to Conspiring to Possess with Intent to Distribute MethamphetamineRead the Press Release
St. Louis, MO –Reanna Danielle Campbell, 26, of Franklin County, MO, pleaded guilty to her involvement in conspiring to possess with the intent to distribute methamphetamine. Campbell appeared in federal court today before United States District Judge John A. Ross who accepted her plea and set her sentencing date for April 23, 2020.
According to the plea agreement, Campbell and her co-defendant Joshua Spencer were engaged in the sale of crystal methamphetamine in the St. Louis Metropolitan area, as well as in Franklin and Jefferson County, Missouri. Investigators conducted controlled buys of methamphetamine from Campbell and Spencer in and around the area. Also during the course of the investigation, Spencer and Campbell crashed a vehicle while fleeing from police near the Interstate 44 entrance at South Elm Avenue in Webster, Missouri, and fled on foot. Two handguns were recovered by law enforcement near the scene of the crash and investigators seized five other firearms from the crashed vehicle, along with knives and additional firearms magazines and drug paraphernalia.
Campbell faces imprisonment of not more than 20 years and a fine of not more than $1,000,000,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
Spencer remains charged with conspiracy to distribute and to possess with the intent to distribute methamphetamine, distribution of methamphetamine, being a felon in possession of a firearm, and possessing a firearm in furtherance of a drug trafficking crime. Those charges remain merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The Multi-County Narcotics and Violent Crimes Enforcement Unit and the Drug Enforcement Administration is investigating this case, with assistance from the Kirkwood and Webster Police Departments. Assistant United States Attorney Lisa Yemm is handling this case for the U.S. Attorney’s Office.
Four Exotic Sports Cars Seized from Convicted Payday Lender Scott Tucker to Be Auctioned Off in Order to Return Additional Money to Victims of Tucker’s SchemeRead the Press Release
Up for auction, a rare 2011 Ferrari 599 SA Aperta that is one of only 80 such cars that have ever been made.Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that four exotic sport and track cars seized from convicted payday lender SCOTT TUCKER will be auctioned off on February 5, 2020. The cars were seized from and forfeited by TUCKER in connection with his convictions for operating a $3.5 billion unlawful internet payday lending enterprise that systematically evaded state laws for over 15 years in order to charge illegal interest rates as high as 1000% on loans. Tucker and his convicted co-defendant, TIMOTHY MUIR, an attorney, lied to millions of customers regarding the true cost of their loans to defraud them out of hundreds, and in some cases, thousands of dollars each. Further, as part of their multi-year effort to evade law enforcement, the defendants formed sham relationships with Native American tribes and laundered the billions of dollars they took from their customers through nominally tribal bank accounts to hide TUCKER’s ownership and control of the business. TUCKER’s fraudulent loans were issued to more than 4.5 million people in all fifty states, including more than 250,000 people in New York, many of whom were struggling to pay basic living expenses.
U.S. Attorney Geoffrey S. Berman said: “The auction of convicted payday loan fraudster Scott Tucker’s four exotic cars is significant. The Ferrari and Porsche supercars offered for sale are just the most visible and gaudy signs of Tucker’s greed, luxury playthings bought with money stolen from victims who were often living hand to mouth, people who took out payday loans to buy food for their families or pay medical bills. We hope this auction generates proceeds sufficient to at least partially compensate the victims of Tucker’s multibillion-dollar fraud scheme. This Office will continue to aggressively seek compensation for victims of predatory criminals.”
The auction of the cars will feature a rare 2011 Ferrari 599 SA Aperta that is one of only 80 such cars that have ever been made (pictured above), a 700-horsepower 2011 Ferrari 599xx track car, as well as two Porsche Supercars, a 2011 Porsche 911 GT2 RS and a 2005 Porsche Carrera GT.
The live in-person and simulcast auction will take place at the world-class motorsports Circuit of The Americas on February 5, 2020. Auction details, including videos of each car, can be found at https://www.cwsmarketing.com/?p=9739. Proceeds of the sales of the cars will be pooled with monies recovered by the Federal Trade Commission (“FTC”), which successfully brought a related civil action against TUCKER and various entities involved in the illegal payday lending scheme, and distributed to victims by the FTC. Victims seeking restitution are encouraged to visit www.ftc.gov/amg for updated information regarding the FTC’s redress program and to sign up to receive email updates. To date, more than $500 million has been returned to victims of TUCKER’s crimes.
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On October 13, 2017, TUCKER and MUIR were convicted on all fourteen counts against them after a five-week jury trial before U.S. District Judge P. Kevin Castel. On January 5, 2018, TUCKER was sentenced to 200 months in prison, and MUIR was sentenced to 84 months in prison.
Mr. Berman praised the outstanding investigative work of the St. Louis Field Office of the Internal Revenue Service, Criminal Investigation. Mr. Berman also thanked the Criminal Investigators at the United States Attorney’s Office, the Federal Bureau of Investigation, and the FTC for their assistance with the case.
The prosecution is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Sagar K. Ravi and Hagan Scotten, and are in charge of the prosecution.
Former Secretary of Puerto Rico Department of Education Julia Keleher Indicted with Another Individual for Bribery, Conspiracy, and Wire FraudRead the Press Release
SAN JUAN, Puerto Rico– Julia Beatrice Keleher, former Secretary of the Puerto Rico Department of Education (“PR DOE”), and Ariel Gutiérrez-Rodríguez have been indicted for their participation in a bribery scheme and conspiracy to commit honest services fraud, announced U.S. Attorney for the District of Puerto Rico W. Stephen Muldrow. The Federal Bureau of Investigation is in charge of the investigation.
The indictment returned yesterday, January 14, 2020, by a federal grand jury in the District of Puerto Rico, includes nine counts as follows: Count One: Julia Keleher and Ariel Gutiérrez-Rodríguez - Conspiracy to Commit Honest Services Fraud, Title 18, United States Code, Section 1349; Counts Two through Seven: Julia Keleher and Ariel Gutiérrez-Rodríguez - Wire Fraud, Title 18, United States Code, Section 1343; Count Eight: Julia Keleher - Federal Program Bribery (accepting a bribe), Title 18, United States Code, Section 666(a)(1)(B); and Count Nine: Ariel Gutiérrez-Rodríguez - Federal Program Bribery (paying a bribe), Title 18, United States Code, Section 666(a)(2).
The indictment alleges that the purpose of the conspiracy was for Keleher to use her official position as the Secretary of Education to enrich herself by soliciting and accepting things of value from others, and for others to enrich themselves by obtaining favorable official action from Keleher through corrupt means. Defendant Ariel Gutiérrez-Rodríguez facilitated Keleher’s receipt of financial benefits in connection with her lease and purchase of an apartment in the Ciudadela apartment complex in Santurce, Puerto Rico, in exchange for Keleher’s signing a letter purporting to give 1,034 square feet of the Padre Rufo School to a private company.
“Public corruption continues to erode the trust between government officials and our citizens. Defendant Keleher exploited her government position to benefit herself and other private individuals,” said U.S. Attorney Muldrow. “Government officials are entrusted with performing their duties honestly and ethically. When they fail to do so, they will be held to account.”
“Anyone involved in the bribery of a public official seeks to put their own interests above those of the People of Puerto Rico. However, those corrupt parties will eventually pay a much higher price to the criminal justice system, and we will continue to deliver them to the federal courthouse. This has been our commitment to the people of Puerto Rico and one we intend to keep in the years to come,” said Douglas A. Leff, Special Agent in Charge of the FBI.
The case is being prosecuted by Senior Litigation Counsel José Capó-Iriarte and Assistant U.S. Attorney Alexander Alum. If found guilty, the defendants are facing possible sentences of up to 10 years for conspiracy and federal program bribery, and up to 20 years for wire fraud. The charges contained in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
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Former Montgomery County Sheriff’s Officer Sentenced to 12 Years in Prison for Child Pornography OffensesRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Matthew Laver, 38, of Souderton, in Montgomery County, PA was sentenced to 144 months’ incarceration and ten years’ supervised release by United States District Court Judge Michael M. Baylson for multiple child exploitation offenses including distribution, receipt, and possession of child pornography.
The defendant pleaded guilty in September 2019 after authorities conducted an investigation that revealed his collection of almost 4,000 images and videos depicting the sexual abuse of children, which he downloaded and distributed to other users on the internet over approximately ten years. The investigation also revealed that Laver trafficked in child pornography that depicted children as young as infants being sexually assaulted and raped -- and that he did so during the time that he was employed as a Montgomery County Sheriff’s Officer.
“This is an appalling case,” said U.S. Attorney McSwain. “The defendant was a member of a law enforcement organization charged with enforcing the law and protecting the public, but he was actually a child predator. Laver’s crimes are also particularly disturbing due to the very young ages of some of the children depicted in his child pornography ‘collection.’ We stand ready with our federal and local partners to identify and prosecute all those who would prey upon minor children, no matter who they are.”
This case is part of Project Safe Childhood (PSC), a nationwide program bringing together all levels of law enforcement and the communities they serve to reduce sexual crimes against children. The Department of Justice and U.S. Attorney’s Offices work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce sexual crimes against children.
The case was investigated by the Department of Homeland Security, and is being prosecuted by Assistant United States Attorneys Eileen Zelek and Michelle Rotella.
Former Evansville Physician Sentenced to Five Years in Federal Prison for Possessing Child PornographyRead the Press Release
EVANSVILLE – United States Attorney Josh J. Minkler announced today that John Honnigford, 47, of Evansville, Ind., was sentenced in federal court, by U.S. District Judge Richard L. Young, to five years in federal prison, after having previously pleaded guilty to possession of sexually explicit material involving minors.
"Publically, Honnigford was a trusted physician, expected to maintain a high level of patient care; but behind closed doors, he is a child predator," said Minkler. "The U.S. Attorney’s Office is committed to prosecuting child predators and keeping innocent children safe from being exploited by individuals, like Honnigford."
In March of 2017, a task force officer with the Federal Bureau of Investigation was conducting an investigation into file sharing activity on the internet in an undercover capacity. A connection was made between the officer’s investigative computer and a computer device using file sharing software. The task force officer downloaded 188 files from the computer linked to a residence in Evansville, Indiana owned by John Honnigford.
On May 16, 2017, a search warrant was executed at the residence of Honnigford. During an interview with Honnigford, he indicated that he knew the reason for the search. He admitted that he had a problem, which he’d unsuccessfully sought help for in the past, and that he needed to get help. Honnigford directed the officer to his primary computer. He told the task force officer that he had file sharing software on his primary computer and that he used external hard drives to store data files. Honnigford told the officer that he would find LS model images on one of the hard drives. The LS model files depicted minors in sexually explicit poses.
On May 18, 2017, an exam of Honnigford’s external hard drive was performed. The hard drive had many file folders that contained depictions of minors engaged in sex acts and minors depicted in sexually explicit poses, including depictions of the genital and public area of the minors. The hard drive contained large sets of images involving LS models depicting minor females in sexually explicit poses. A complete forensic exam of the primary computer and the external hard drive used by Honnigford resulted in finding 10,178 images, 72 videos, and 11 bondage images ranging from toddler to pre-teen.
This case was investigated by the Federal Bureau of Investigation.
"The FBI and our law enforcement partners are committed to protecting the most vulnerable of our communities who are defenseless and this sentence reinforces the message that we will continue to make identifying and investigating perpetrators a high priority," said Special Agent in Charge Grant Mendenhall. "Our children will always have an advocate in the FBI to ensure those who would exploit pay the price for their criminal activity."
According to Assistant U.S. Attorney Todd S. Shellenbarger, who prosecuted this case for the government, Honnigford will serve 10 years’ supervised release following his prison sentence.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the office’s firm commitment to utilize and partner with law enforcement agencies to prosecute individuals engaged in the sexual exploitation of children. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 4.1.
Former Duquesne Resident Maintained a Drug House where Police Found Multiple Drugs, Cash, and Packaging MaterialsRead the Press Release
PITTSBURGH, Pa. - A former resident of Duquesne, Pennsylvania, pleaded guilty in federal court to a charge of maintaining a drug premises, United States Attorney Scott W. Brady announced today.
Ericka Smith, age 40, pleaded guilty to one count before Senior United States District Court Judge David Cercone.
In connection with the guilty plea, the court was advised that on May 10, 2018, when parole agents went to the home of Ericka Smith, the lessee of the residence, and parolee Donte Taylor for a routine visit, they smelled marijuana. Taylor tested positive for marijuana and cocaine. Smith appeared to be extremely nervous. Police responded and Smith advised that there was a small amount of marijuana in the house and gave consent to search. Officers recovered crack cocaine, cocaine, heroin, fentanyl and marijuana. They also recovered $14,466.00 in a safe, scales and other drug packaging materials. While speaking with agents, Smith stated that she would take the charges because Taylor needed to be home with the kids. She also inquired about what penalty she would face if she said the drugs recovered belonged to her.
Judge Cercone scheduled sentencing for May 21, 2020. The law provides for a maximum total sentence of not more than 20 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court ordered that Smith remain detained.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the City of Duquesne Police Department conducted the investigation that led to the prosecution of Smith.
Florida Couple Pleads Guilty to Trafficking Indonesian WildlifeRead the Press Release
A Florida couple pleaded guilty yesterday in federal court to violating the Lacey Act for their role in trafficking protected wildlife, announced Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Environment and Natural Resources Division.
In a plea agreement with the government, Novita Indah, 49, and Larry Malugin, 52, admitted to illegally importing wildlife from Indonesia to their Port Richey home and reselling the wildlife across the country and internationally.
A grand jury indicted the defendants in June 2019 on charges of conspiracy, smuggling, and Lacey Act violations. The defendants admitted that from Oct. 4, 2011, through Jan. 12, 2017, they imported and resold Southeast Asian wildlife in the forms of taxidermy mounts, bones, skins, belts and wallets. The wildlife species included slow loris, babirusa (a rare Indonesian pig prized for its distinctive curving tusks), leopard cat, macaque, lutung, langur, spitting cobra, krait snake, monitor lizard, barn owl and reticulated python. The defendants did not sell any live animals.
Indah and Malugin sold approximately 3,100 wildlife items using eBay to buyers across the United States and the world valued at a total of $211,212. They began trafficking while living in Indonesia and continued to do so as they moved to Puerto Rico and ultimately Florida in 2013. They smuggled the items to purchasers in the United States in packages falsely labeled to conceal their contents.
The U.S. Fish and Wildlife Service (USFWS) seized approximately 369 wildlife articles from the defendants’ home during a Jan. 12, 2017, search warrant. The agents recovered four spitting cobra mounts, one python mount, one krait snake mount, 156 assorted snakeskins, 99 monitor lizard skins, 87 snakeskin and lizard skin wallets, 20 belts with snake heads and a babirusa skull.
All of the wildlife was protected by the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). The United States, Indonesia, and approximately 181 other countries are signatories to CITES, which provides a mechanism for regulating international trade in species whose continued survival is threatened by trade. The Lacey Act is the nation’s oldest wildlife trafficking law and, among other things, prohibits selling wildlife that had been illegally brought into the country.
USFWS and U.S. Customs inspectors repeatedly seized packages shipped by Indah and Malugin, but they continued to sell wildlife using multiple eBay and PayPal accounts. This investigation was part of Operation Global Reach, a USFWS long-term taskforce into the flow of illegal wildlife from Indonesia to the United States.
Sentencing has not yet been scheduled. The defendants agreed to forfeit the wildlife seized from their house.
The USFWS Office of Law Enforcement in Redmond, Washington, led the investigation, with the aid of USFWS agents and inspectors in California and Florida and the support of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Trial Attorneys Ryan Connors and Matthew Evans of the Environmental Crimes Section represent the government, with assistance from Assistant U.S. Attorney Kelley Howard-Allen of the Middle District of Florida.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Five Men Indicted for Operating an International Procurement Network to Export U.S.-Origin Goods to Pakistan’s Nuclear ProgramRead the Press Release
Five men, all associated with the front company “Business World” in Rawalpindi, Pakistan, and including Muhammad Kamran Wali (Kamran), 41, of Pakistan; Muhammad Ahsan Wali (Ahsan), 48, and Haji Wali Muhammad Sheikh (Haji), 82, both of Mississauga, Ontario, Canada; Ashraf Khan Muhammad (Khan) of Hong Kong; and Ahmed Waheed (Waheed), 52, of Ilford, Essex, United Kingdom, were indicted in federal court for conspiracy to violate the International Emergency Economic Powers Act and the Export Control Reform Act. The grand jury returned the indictment on Oct. 16, 2019, and it was unsealed today.
“The defendants smuggled U.S. origin goods to entities that have been designated for years as threats to U.S. national security for their ties to Pakistan’s weapons programs,” said Assistant Attorney General for National Security John C. Demers. “This indictment puts the world on notice not to do business with these defendants and demonstrates our commitment to holding them accountable. It also stands as an example of the kind of deceptive behavior U.S. businesses need to watch out for in designing appropriate export control and sanctions compliance programs.”
“Federal export control laws are vital tools that help prevent items from being exported overseas where they could be used in ways that can jeopardize our national security,” said U.S. Attorney Scott W. Murray for the District of New Hampshire. “In order to protect the safety and security of the American people, we work closely with our law enforcement partners to identify those who violate these important laws. We will continue to be vigilant in our efforts to identify individuals whose actions may jeopardize the national security of the United States.”
“The alleged behavior of these five individuals presented more than a violation of U.S. export laws, it posed a potential threat to the national security interests of the United States and to the delicate balance of power among nations within the region,” said Jason Molina, Acting Special Agent in Charge, Homeland Security Investigations. “HSI’s Counterproliferation group proactively works investigations into U.S. import-export licensing laws violations because of the threat it can pose to our national security.”
“The indictments unsealed today are a result of the ongoing coordination and collaborative counter proliferation efforts by the Office of Export Enforcement, the Justice Department, the Defense Criminal Investigative Service, and Homeland Security Investigations,”said Special Agent in Charge William Higgins of the Office of Export Enforcement. “The Boston Field Office of the Office of Export Enforcement will continue to vigorously pursue violators with all its partners to stem illicit trade that threatens U.S. national security and undermines U.S. foreign policy.”
"Stopping the illegal exportation of sensitive defense technology is a top priority for the Defense Criminal Investigative Service (DCIS) and today's indictment is the result of a multi-agency effort," stated Special Agent in Charge Leigh-Alistair Barzey, DCIS Northeast Field Office. "The DCIS is committed to working with the USAO-NH, Homeland Security Investigations and the Office of Export Enforcement, to protect our nation's security by identifying, investigating and prosecuting criminal procurement networks."
According to the indictment, between September 2014 and October 2019, the defendants operated an international procurement network of front companies that existed to acquire U.S.-origin goods for the Advanced Engineering Research Organization (AERO) and the Pakistan Atomic Energy Commission (PAEC), and to cause those goods to be exported from the United States to the entities without export licenses in violation of federals law. Both AERO and PAEC were on the Commerce Department’s Entity List, which imposes export license requirements for organizations whose activities are found to be contrary to U.S. national security or foreign policy interests. PAEC was added to the Entity List in 1998. AERO was added to the Entity List in 2014, after the U.S. Government found that it had used intermediaries and front companies to procure items for use in Pakistan’s cruise missile and strategic UAV programs.
According to the indictment, the defendants attempted to conceal the true destinations in Pakistan of the U.S.-origin goods by using the conspirators’ network of front companies as the supposed purchasers and end users of the goods and as the apparent source of payments for the goods, even though the goods were ultimately received in Pakistan and paid for by AERO or PAEC. The defendants caused the U.S. companies to file export documents that falsely identified the Ultimate Consignees of the shipments as entities other than AERO and PAEC. The defendants never applied for or obtained an export license from the Department of Commerce authorizing the export of goods to AERO or PAEC in Pakistan.
The indictment identified 38 separate exports from the U.S. that the defendants caused, involving 29 different companies from around the country. Three of those companies are in New Hampshire. None of the U.S. companies is alleged to have been complicit in the illegal exports. Each defendant is charged with two felony counts of conspiracy. Although arrest warrants are pending, none of the five defendants has thus far been apprehended.
This matter was investigated by the Department of Commerce’s Office of Export Enforcement; the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service; and Immigration and Customs Enforcement’s Homeland Security Investigations. The case is being prosecuted by Assistant U.S. Attorney John Davis and Trial Attorney Nicholas Hunter of DOJ’s Counterintelligence and Export Control Section, National Security Division.
The charges and allegations contained in an indictment are merely accusations. A defendant is presumed innocent until and unless proven guilty.
Five Men Indicted for Operating an International Procurement Network to Export Goods from the United States to Pakistan's Nuclear ProgramRead the Press Release
CONCORD – Five men, all associated with the front company “Business World” in Rawalpindi, Pakistan, and including Muhammad Kamran Wali (“Kamran”), 41, of Pakistan; Muhammad Ahsan Wali (“Ahsan”), 48, and Haji Wali Muhammad Sheikh (“Haji”), 82, both of Mississauga, Ontario, Canada; Ashraf Khan Muhammad (“Khan”) of Hong Kong; and Ahmed Waheed (“Waheed”), 52, of Ilford, Essex, United Kingdom, were indicted by a federal grand jury for conspiracy to violate the International Emergency Economic Powers Act and the Export Control Reform Act of 2018 and conspiracy to smuggle goods from the United States, United States Attorney Scott W. Murray announced. The grand jury returned the indictment on October 16, 2019, and it was unsealed today.
According to the indictment, between September 2014 and October 2019, the defendants operated an international procurement network of front companies that existed to acquire goods for the Advanced Engineering Research Organization (AERO) and the Pakistan Atomic Energy Commission (PAEC), and to cause those goods to be exported from the United States to the entities without export licenses in violation of federal law. Both AERO and PAEC were on the Commerce Department’s Entity List, which imposes export license requirements for organizations whose activities are found to be contrary to U.S. national security or foreign policy interests. PAEC was added to the Entity List in 1998. AERO was added to the Entity List in 2014, after the U.S. Government found that it had used intermediaries and front companies to procure items for use in Pakistan’s cruise missile and strategic UAV programs.
According to the indictment, the defendants attempted to conceal the true destinations in Pakistan of the U.S.-origin goods by using the conspirators’ network of front companies as the supposed purchasers and end users of the goods and as the apparent source of payments for the goods, even though the goods were ultimately received in Pakistan and paid for by AERO or PAEC. The defendants and their network of front companies were never the actual end users of the goods exported from the U.S. The defendants caused the U.S. companies to file export documents that falsely identified the ultimate consignees of the shipments as entities other than AERO and PAEC. The defendants never applied for or obtained an export license from the Commerce Department authorizing the export of goods to AERO or PAEC in Pakistan.
The indictment identified 38 separate exports from the U.S. that the defendants caused, involving 29 different companies from around the country. Three of those companies are in New Hampshire. None of the U.S. companies is alleged to have been complicit in the illegal exports.
Each defendant is charged with two felony counts of conspiracy. Although arrest warrants are pending, none of the five defendants has thus far been apprehended.
“Federal export control laws are vital tools that help prevent items from being exported overseas where they could be used in ways that can jeopardize our national security,” said U.S Attorney Murray. “In order to protect the safety and security of the American people, we work closely with our law enforcement partners to identify those who violate these important laws. We will continue to be vigilant in our efforts to identify individuals whose actions may jeopardize the national security of the United States.”
“The defendants smuggled U.S. origin goods to entities that have been designated for years as threats to U.S. national security for their ties to Pakistan’s weapons programs,” said Assistant Attorney General for National Security John C. Demers. “This indictment puts the world on notice not to do business with these defendants and demonstrates our commitment to holding them accountable. It also stands as an example of the kind of deceptive behavior U.S. businesses need to watch out for in designing appropriate export control and sanctions compliance programs.”
“The indictments unsealed today are a result of the ongoing coordination and collaborative counter proliferation efforts by the Office of Export Enforcement, the Justice Department, the Defense Criminal Investigative Service, and Homeland Security Investigations,” Special Agent in Charge William Higgins of the Office of Export Enforcement said. “The Boston Field Office of the Office of Export Enforcement will continue to vigorously pursue violators with all its partners to stem illicit trade that threatens U.S. national security and undermines U.S. foreign policy.”
"Stopping the illegal exportation of sensitive defense technology is a top priority for the Defense Criminal Investigative Service (DCIS) and today's indictment is the result of a multi-agency effort," stated Special Agent in Charge Leigh-Alistair Barzey, DCIS Northeast Field Office. "The DCIS is committed to working with the USAO-NH, Homeland Security Investigations and the Office of Export Enforcement, to protect our nation's security by identifying, investigating and prosecuting criminal procurement networks."
“The alleged behavior of these five individuals presented more than a violation of U.S. export laws, it posed a potential threat to the national security interests of the United States and to the delicate balance of power among nations within the region.” said Jason Molina, Acting Special Agent in Charge, Homeland Security Investigations. “HSI’s Counterproliferation group proactively works investigations into U.S. import- export licensing laws violations because of the threat it can pose to our national security.”
This matter was investigated by the Department of Commerce’s Office of Export Enforcement; the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service; and Immigration and Customs Enforcement’s Homeland Security Investigations. The case is being prosecuted by Assistant U.S. Attorney John Davis and Trial Attorney Nicholas Hunter of DOJ’s Counterintelligence and Export Control Section, National Security Division.
The charges and allegations contained in an indictment are merely accusations. A defendant is presumed innocent until and unless proven guilty.
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Final Defendant in Telemarketing Scheme Sentenced for Defrauding Elderly VictimsRead the Press Release
PHOENIX, Ariz. – On January 13, 2020, Trevor Wesley Gabler, 29, of Phoenix, was sentenced by U.S. District Judge Steven P. Logan to 54 months’ imprisonment. Gabler previously pleaded guilty to one count of mail fraud in connection with telemarketing. Four other defendants pleaded guilty and were previously sentenced, including: Brandon Trevor Ball, 47, of Phoenix, to 60 months’ imprisonment; Jackie Nikiel Whitley, 38, of Phoenix, to 30 months’ imprisonment; Brian Lee Gibson, 37, of Mesa, to 15 months’ imprisonment; and Gordon Lynn Hardy, 57, of Chandler, to a time-served sentence of approximately one year.
Gabler and Ball managed the telemarketing scheme, which operated from 2015 to 2018 out of several office park locations in Phoenix and Tempe. They communicated via telephone with elderly consumers, first from a front room, where employees used false names to obtain basic customer information, and then from a back room, where telemarketers also used false names and promised a sham business opportunity in exchange for more than $10,000 per victim. The opportunities promised to the victims were never fulfilled.
The defendants were ordered to pay restitution in the amount of $4,116,625 to 113 victims from around the country, most of whom were over the age of 65. District Judge Logan also ordered the forfeiture of $78,953 in U.S. currency found during a search Ball’s residence. That money will be applied toward restitution.
The investigation was conducted by the United States Secret Service and the Phoenix Police Department, with assistance from the United States Postal Inspection Service and the Special Investigations Section of the Arizona Attorney General’s Office. The prosecution was handled by Gary M. Restaino, Alanna R. Kennedy, and Mark Wenker, Assistant U.S. Attorneys, District of Arizona, Phoenix.
Ferguson Man Sentenced in a Multi-Defendant Heroin ConspiracyRead the Press Release
St. Louis, MO – Darryl Black, 28, of Ferguson, MO, was sentenced to 120 months in prison for his involvement in a multi-defendant conspiracy to distribute and possess with the intent to distribute heroin. Black appeared today before U.S. District Judge Henry E. Autrey.
According to court documents, Black was part of a heroin conspiracy involving the shipment of heroin by mail from Phoenix to St. Louis. Black is the last of the 11 charged in the indictment to be sentenced.
Defendants also sentenced in the conspiracy are as follows:
Ricardo Ramos-Estrada, aka Riki, 34, of Phoenix, AZ, 70 months in prison;
Armando Ramos-Estrada, aka Gordo, 36, of Phoenix, AZ, fugitive;
Cristian Samuel Aripez Nunez, 22, of Phoenix, AZ 48 months in prison;
Arieawn Rishaud Dillon, 24, of St. Louis, 40 months in prison;
Daviyon Antwon Thomas, aka Big Boy, 30, of Wellston, 80 months in prison;
Gregory Hampton, aka Greasy, 34, of St. Louis, 84 months in prison;
Travis Jacquez Roberts, 30, of St. Louis, 84 months in prison;
Jerome Anthony Thomas, 47, of St. Louis, 30 months in prison;
Troy Parker, aka Nelly, of St. Louis, released on time served; and
Jermaine Joseph Johnson, aka J, of St. Louis, released on time served.
The Federal Bureau of Investigation and the United States Postal Inspection Service investigated this case. Assistant U.S. Attorney Erin Granger handled the case for the U.S. Attorney’s Office.
Felon Sentenced for Robbing a Bank with a FirearmRead the Press Release
St. Louis, MO – Mitchell Finley, 57, of St. Louis County, was sentenced to fifty-one (51) months in prison for his role in robbing a bank. Finley appeared today in front of U.S. District Judge Henry E. Autrey.
According to court documents, on April 13, 2019, Finley walked into the Midwest Bank Centre on Lemay Ferry Road in south St. Louis County. He went up to the teller, placed a white bag on the counter and told the teller that this is a robbery. The teller complied, placing $4,131.00 in the bag. Finley left the bank and went to a restaurant in the same plaza as the bank. Law enforcement officers responded to the scene and found Finley in the restaurant with a backpack next to him. The backpack contained the clothing he word during the bank robbery and the stolen money. Finley possessed an unloaded Beretta pistol in his waistband.
Finley pleaded guilty on September 30, 2019 to one count of committing a bank robbery and one count of felon in possession of a firearm.
The Federal Bureau of Investigation and the St. Louis County Police investigated this case. Assistant United States Attorney Paul D’Agrosa is handling the case for the U.S. Attorney's Office.
Federal Jury in Austin Convicts Armed Bank RobberRead the Press Release
In Austin today, a federal jury convicted an Austin man for his commission of multiple Austin-area armed bank robberies that occurred in 2018, stated U.S. Attorney John F. Bash, FBI Special Agent in Charge Christopher Combs, San Antonio Division, Austin Police Chief Brian Manley and San Marcos Interim Police Chief Bob Klett.
The jury convicted 59-year-old Rodney Glenn Green (aka “Rodney Glen Fayson”) of five counts of bank robbery, five counts of brandishing a firearm during a crime of violence, and one count of being a convicted felon in possession of a firearm.
U.S. Attorney Bash said in response to the verdict: “I am pleased that an Austin jury today returned a verdict of guilty on all counts against a man who committed multiple armed bank robberies in our community. Our federal prosecutors and agents are working hard to keep our cities safe and to protect our financial system.”
Evidence presented during trial revealed that Green committed the following armed bank robberies:
- January 24, 2018 – Chase Bank in Austin – Green stole approximately $4,000;
- February 8, 2018 – BBVA Compass Bank in Austin – Green stole approximately $3,337;
- February 24, 2018 – BBVA Compass Bank in Austin – Green stole approximately $11,939;
- April 7, 2018 – BB&T Bank in Austin – Green stole approximately $5,495; and
- April 28, 2018 – Bank of America in San Marcos – Green stole approximately $10,841.
Evidence introduced at trial revealed that Green committed all five bank robberies in a similar manner. He wore gloves, a mask, and a black hooded sweatshirt or jacket, and brandished a small semi-automatic handgun while demanding money from bank tellers. Approximately a day after the last of the five robberies, federal agents and police officers apprehended Green and searched his hotel room, vehicle, and storage unit pursuant to search warrants. In addition to finding currency still wrapped in bank straps that Green had in a bag on his person, law enforcement discovered a number of distinctive items in Green’s possession that were visible on surveillance images of the robberies. The police recovered from the storage unit a black hooded sweatshirt that appeared to match the one worn by the robber during the last four robberies. They also found a small semi-automatic handgun with Green’s fingerprint on the magazine, as well as two pairs of work gloves that were recognizable from the surveillance images because of brand names and logos printed on the backs of the gloves. One pair of gloves, recovered from Green’s vehicle, was stained with pink dye, apparently from a dye pack that was among the bills that Green took from one of the robberies. While reviewing some of the physical evidence, the police subsequently recovered a distinctive home-made mask that appeared to match the mask that the robber wore during the last two robberies. The mask was located inside of a sleeve of the sweatshirt recovered from Green’s storage unit.
The bank robbery crimes of which Green was convicted carry a maximum sentence of up to twenty years in federal prison. The brandishing a firearm during a crime of violence crimes of which Green was convicted carry a minimum sentence of seven years in federal prison, with a maximum sentence of life imprisonment. The felon in possession crime of which Green was convicted carries a maximum sentence of up to ten years in federal prison. Green remains in federal custody. Sentencing will occur before U.S. District Judge Robert Pitman in Austin at a date to be determined by the Court.
The FBI; Central Texas Violent Crimes Task Force; Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Austin Police Department and San Marcos Police Department investigated this case. Assistant U.S. Attorneys Matt Harding, Gabriel Cohen, Alan Buie, and Robert Almonte are prosecuting this case for the government.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Federal Grand Jury in San Antonio Indicts Former Air Force Employee, Ashburn, VA-Based Quantadyn Corporation, and Its Owner for Alleged Bribery and Government Contract Fraud SchemeRead the Press Release
In San Antonio today, a federal judge unsealed a grand jury indictment charging a software engineering company called Quantadyn Corporation (Quantadyn); one of its owners, 59-year-old Herndon, VA, resident David Joseph Bolduc, Jr.; 53-year-old San Antonio resident Keith Alan Seguin, and 70-year-old Atlanta, GA, area resident Rubens Wilson Fiuza Lima for their roles in a bribery and government contract fraud scheme that spanned more than a decade and impacted contract awards worth hundreds of millions of dollars.
That announcement was made today by U.S. Attorney John F. Bash; Special Agent in Charge Jamie Willemin of the Government Services Administration—Office of the Inspector General (GSA-OIG), Greater Southwest and Rocky Mountain Investigations Division; Acting Special Agent in Charge Ruben Rosalez of the Internal Revenue Service-Criminal Investigation (IRS-CI), Houston Field Office; Special Agent in Charge Michael Mentavlos of the Defense Criminal Investigative Service (DCIS), Southwest Field Office; Special Agent in Charge Ray Rayos of the U.S. Army Criminal Investigation Command, Southwestern Fraud Field Office (USACID); and, Special Agent in Charge Blair Holmstrand of the Air Force Office of Special Investigations (AFOSI), Procurement Fraud Detachment 3 in San Antonio.
The indictment alleges the defendants carried out their contract fraud scheme from 2006 to 2018. Specifically, Bolduc and Quantadyn paid more than $2.3 million in bribes to Seguin, a civilian employee of the 502 Trainer Development Squadron at Randolph Air Force Base in San Antonio, who was intimately involved in the government contract process. In return, Seguin used his position to steer lucrative government contracts and sub-contracts to Quantadyn for aircraft and close-air-support training simulators. The indictment further alleges that a portion of the bribe money paid to Seguin was laundered through Fiuza Lima’s business, Impex, Inc., for a ten percent fee.
The three-count indictment charges Bolduc, Quantadyn, Seguin and Fiuza Lima with one count of conspiracy to defraud the U.S., one count of conspiracy to commit wire fraud, and one count of conspiracy to commit money laundering. Upon conviction, Bolduc, Seguin and Fiuza Lima would face terms of imprisonment up to five years for conspiracy to defraud the U.S., up to 20 years for conspiracy to commit wire fraud, and up to 20 years for conspiracy to commit money laundering. They would also face up to $1,000,000 in fines, and Quantadyn would face up to $1,500,000 in fines. All of the defendants, would be ordered to pay restitution if convicted.
“Allegations related to the exploitation of major federal procurement vehicles will always be an investigative priority. The General Services Administration, Office of Inspector General, with our law enforcement partners, will continue to work diligently to protect the integrity of federal acquisitions, and other critical GSA programs that are designed to benefit its customers, including the warfighter,” stated GSA-OIG Special Agent in Charge Willemin, Greater Southwest and Rocky Mountain Investigations Division.
“Government contracts are designed to support the missions of the United States armed forces and are vital to our people. It is not a slush fund for thieves and fraudsters,” said IRS-CI Acting Special Agent in Charge Rosalez. “Those who illegally target our nation’s tax dollars for personal financial gain, as in this case, will be prosecuted and face the consequences of their actions.”
“DCIS, the Pentagon's investigative arm, will aggressively pursue allegations of fraud and corruption impacting the Department of Defense (DoD)," stated Michael Mentavlos, Special Agent in Charge, Southwest Field Office. "Along with our Law Enforcement partners, DCIS is committed to safeguarding the integrity of taxpayer resources and will exhaust all appropriate criminal, civil, and administrative actions against those individuals that choose to defraud the government, DoD, and ultimately the taxpayer.”
“The collaboration between GSA-OIG, DCIS, U.S. Army CID, IRS-CI, AFOSI, and the U. S. Attorney’s Office of the Western District of Texas, has been significant and we are looking forward to seeing the final results of the hard work put forth by all agencies involved,” said AFOSI Special Agent in Charge Holmstrand.
Initial appearances are expected to occur this week before a U.S. Magistrate Judge in San Antonio (Seguin), Alexandria, VA (Bolduc), and Atlanta (Fiuza Lima).
The GSA-OIG, IRS-CI, DCIS, USACID, and AFOSI continue to investigate this case. Individuals who may have information about this scheme or these defendants are asked to call the GSA-OIG fraud reporting hot line at (800) 424-5210, send an email to [email protected], or go online to www.gsaig.gov and click on the “report FRAUD” link. U. S. Attorney John Bash extends his appreciation to the U.S. Attorney’s Offices in the Eastern District of Virginia, Southern District of Ohio, and Northern District of Georgia for their valuable assistance.
Assistant U.S. Attorney William F. Lewis, Jr., Special Assistant U.S. Attorney Jay Porier, and Assistant U.S. Attorney Alan Buie are prosecuting this case on behalf of the government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Entrepreneur and Pharmaceutical Company Executive Convicted at Trial for Role in International Insider Trading SchemeRead the Press Release
Audrey Strauss, Attorney for the United States acting under authority conferred by 28 U.S.C. § 515, announced today that TELEMAQUE LAVIDAS was convicted after a one-week trial of illegally tipping his best friend and co-defendant Georgios Nikas with inside information he obtained from his father, a member of the board of directors of a pharmaceutical company.
Deputy U.S. Attorney Audrey Strauss said: “As the jury concluded, Telemaque Lavidas was a key player in a long-running international insider trading scheme. Three times he received insider information from his father about Ariad Pharmaceuticals and passed it on to his friend Georgios Nikas, a criminal pipeline that earned its participants more than $15 million in illicit profits. Lavidas now awaits sentencing for his crimes.”
According to the allegations contained in the Superseding Indictment and evidence presented at trial:
Athanase Lavidas, the father of TELEMAQUE LAVIDAS, was a prominent Greek businessman and was a member of the board of directors of Ariad Pharmaceuticals, Inc. (“Ariad”), a pharmaceutical company headquartered in Cambridge, Massachusetts, that developed and marketed a leukemia medication named Iclusig. In violation of his duties of confidentiality to Ariad, Athanase Lavidas provided TELEMAQUE LAVIDAS with tips about three major corporate developments at Ariad. On each of those occasions, TELEMAQUE LAVIDAS provided that inside information to his best friend Georgios Nikas (“Nikas”) so that Nikas could make timely, profitable trades ahead of Ariad’s public announcements.
The first tip was in October 2013, when Athanase Lavidas learned that the U.S. Food and Drug Administration (“FDA”) was concerned about potential adverse health issues for patients from Iclusig. Athanase Lavidas contacted TELEMAQUE LAVIDAS to pass this secret information, and TELEMAQUE LAVIDAS passed that tip to Nikas, who had previously amassed a large long position in Ariad securities. After receiving the inside information from TELEMAQUE LAVIDAS, Nikas sold his Ariad securities and took a substantial short position. When Ariad publicly announced the patient safety issues, its stock declined by over 65% and Nikas made over $3.2 million in profits and avoided almost $800,000 in losses. Ariad discontinued sales of Iclusig later in October.
The second tip was in November and December 2013, when Athanase Lavidas learned that Ariad and the FDA were making significant progress toward returning Iclusig to the market. Athanase Lavidas passed this secret information to TELEMAQUE LAVIDAS, who in turn passed the tips to Nikas. Nikas bought Ariad securities based on these tips, and when Ariad publicly announced at the end of December that Iclusig was returning to the market, its stock rose and Nikas made over $1.3 million in profits.
The third tip was in July and August 2015, when Ariad received an unsolicited takeover offer from another pharmaceutical company. Again, Athanase Lavidas learned of the offer in his capacity as a board member, and informed TELEMAQUE LAVIDAS, who in turn passed the tip to Nikas. Nikas again bought Ariad securities based on this tip, and when a news article was published in late August reporting on the takeover offer, Ariad’s stock rose and Nikas made over $2 million in profits.
Nikas also passed the tips he received from TELEMAQUE LAVIDAS to a series of stock traders. In total, Nikas and the traders he tipped earned over $15 million in profits from the inside information that TELEMAQUE LAVIDAS provided.
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TELEMAQUE LAVIDAS, 39, of New York, New York, and Greece, was convicted of one count of conspiracy to commit securities fraud, one count of conspiracy to commit wire fraud and securities fraud, three counts of substantive securities fraud under Title 15, United States Code, Sections 78j(b) and 78ff, one count of substantive wire fraud, and one count of substantive securities fraud under Title 18, United States Code, Section 1348. The conspiracy counts carry maximum prison terms of five and 20 years, respectively; the substantive wire fraud and Title 15 securities fraud counts each carry a maximum sentence of 20 years. The substantive Title 18 securities fraud count carries a maximum sentence of 25 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 defendant would be determined by the Court.
TELEMAQUE LAVIDAS is scheduled to be sentenced before Judge Cote on April 17, 2020, at 2:00 p.m.
Ms. Strauss praised the investigative work of the Federal Bureau of Investigation and also thanked the SEC.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Richard Cooper and Daniel Tracer are in charge of the prosecution.
Ellsworth Man Sentenced to over Seven Years for Two Bank RobberiesRead the Press Release
Bangor, Maine: An Ellsworth man was sentenced today in federal court in Bangor for robbing two banks, U.S. Attorney Halsey B. Frank announced.
U.S. District Court Judge Lance E. Walker sentenced Timothy T. Myers, 28, to 85 months in prison and three years of supervised release. Myers pleaded guilty on June 12, 2019.
According to court records, Myers entered a TD Bank branch in Bangor on December 21, 2018, and handed a teller a note that read, “Give me the money or I shoot, no dye, $1,000.” The teller gave Myers cash from the drawer and he absconded with it. Five days later, he robbed a KeyBank branch in Bangor. He entered the bank, walked to the table near the entrance and picked up a withdrawal slip on which he wrote, “Money now or I shoot, no dye.” He handed the note to a teller, took the money and fled the bank.
The Bangor and Ellsworth Police Departments, the Hancock County Sheriff’s Office, the Maine State Police Crime Laboratory and the FBI investigated the case.
Eastern Shore Career Offender Pleads Guilty to Federal Cocaine Distribution and Firearms ChargesRead the Press Release
Baltimore, Maryland – Yesterday, Takii Nikeya Smith, age 44, of Cambridge, Maryland, pleaded guilty to the federal charges of conspiracy to distribute five kilograms or more of cocaine, possession with intent to distribute cocaine, and to being a felon in possession of a firearm.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge John Eisert of Homeland Security Investigations (HSI) Baltimore; and the members of the Dorchester and Wicomico County Narcotics Task Forces, including: Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Dorchester County Sheriff James W. Phillips, Jr.; Chief Mark Lewis of the Cambridge Police Department; Chief Bruce Jones of the Hurlock Police Department; Wicomico County Sheriff Mike Lewis; Chief Barbara Duncan of the Salisbury Police Department; Chief Brian Swafford of Fruitland Police Department; Dorchester County State’s Attorney William Jones; and Wicomico County State’s Attorney Jamie Dykes.
According to Smith’s guilty plea, in early 2018, an investigation was conducted into the distribution of large quantities of cocaine on the Eastern Shore of Maryland, involving hundreds of hours of physical and electronic surveillance, and numerous controlled purchases of narcotics.
Information gathered through surveillance and the execution of search warrants—one of which turned up more than a kilogram of cocaine packaged for distribution—suggested that Smith was a large-scale cocaine supplier in the area. After several weeks of surveillance, Smith was stopped by the Maryland State Police and members of the Wicomico County Narcotics Task Force as he returned to Maryland from Delaware. Smith fled the traffic stop after being advised that a police K-9 would be conducting an open-air scan of his vehicle, which led to a vehicle pursuit. Smith was ultimately apprehended when his vehicle got stuck in mud while driving over farm land. Later, after receiving citizen complaints about packages found along roadways traversed during the pursuit, law enforcement recovered two kilogram packages of cocaine. According to the guilty plea, Smith admitted that the drugs belonged to him and that he had discarded them during his flight from law enforcement.
Search warrants were subsequently executed at one of Smith’s properties in Mardela Springs, Maryland and at a trailer that Smith had stored at an auto body shop. Law enforcement recovered more than 600 grams of cocaine, a digital scale, cutting agents, and other drug distribution paraphernalia, as well as several rounds of .40-caliber ammunition from in and near the house. From the trailer, law enforcement recovered three firearms—a 9mm pistol, a .40-caliber pistol, and an AR-15 rifle—as well as $347,000 in cash in a vacuum-sealed bag. Smith knew that he was prohibited from possessing a firearm or ammunition as the result of a previous felony conviction.
Smith and the government have agreed that, if the Court accepts the plea agreement, Smith will be sentenced to 13 years in federal prison. U.S. District Judge George L. Russell, III has scheduled sentencing for March 12, 2020.
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. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended HSI, and participating agencies in the Dorchester and Wicomico County Narcotics Task Forces, who are both part of the High Intensity Drug Trafficking Area (HIDTA) Initiative, for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Christopher M. Rigali and Christopher J. Romano who are prosecuting this Organized Crime Drug Enforcement Task Force case.
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Eagle Butte Woman Sentenced for Maintaining a Drug Involved PremisesRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, woman convicted of Maintaining a Drug Involved Premises was sentenced on January 14, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Andrea Circle Bear, a/k/a Andrea High Bear, age 29, was sentenced to 26 months in federal prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Circle Bear was indicted by a federal grand jury on March 12, 2019. She pled guilty on October 7, 2019.
The conviction stemmed from several incidents in April of 2018, when Circle Bear unlawfully and knowingly used and maintained a place for the purpose of distributing methamphetamine on the Cheyenne River Sioux Indian Reservation.
“It is federal crime to knowingly allow a drug dealer to operate out of your home, apartment, or place of business,” said U.S. Attorney Ron Parsons. “Don’t let yourself or your property get mixed up in the world of illegal drugs. It ends badly.”
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Circle Bear was immediately remanded to the custody of the U.S. Marshals Service.
Eagle Butte Man Sentenced for Abusive Sexual Contact of a ChildRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man convicted of Abusive Sexual Contact of a Child was sentenced on January 13, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Lawrence Richard Oakie, a/k/a “LBJ”, age 38, was sentenced to 96 months in federal prison, followed by 7 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Oakie was indicted by a federal grand jury on March 13, 2018. He was found guilty by a jury trial on September 5, 2019.
The conviction stemmed from an incident on September 2, 2017, when Oakie was at the residence of the victim and entered her room in the middle of the night, and engaged in sexual contact with the minor child who had not attained the age of 12 years.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Oakie was immediately turned over to the custody of the U.S. Marshals Service.
Dominican National Pleads Guilty to Identity Theft ChargeRead the Press Release
BOSTON – A Dominican national pleaded guilty today in connection with using the identity of a U.S. citizen.
Wandil Mejia Jimenez, 31, a Dominican national residing in Dorchester, pleaded guilty to on one count of false representation of a Social Security number. U.S. District Court Judge Denise J. Casper scheduled sentencing for May 13, 2020. Mejia Jimenez was arrested in June 2019 and has been detained since that time.
Beginning in 2014, Mejia Jimenez used the name and identifiers of a U.S. citizen to apply for a Massachusetts driver’s license and other identification documents from the Massachusetts Registry of Motor Vehicles. Mejia Jimenez also opened bank accounts, including bank accounts that were closed with negative balances, and was arrested for cocaine trafficking under this citizen’s name. Around the time of his arrest, police seized a Dominican Republic passport in Mejia Jimenez’s true name.
The charge of false representation of a Social Security number provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; William B. Gannon, Special Agent in Charge of the U.S. Department of State’s Diplomatic Security Service, Boston Field Office; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement today. Valuable assistance was provided by the United States Marshals Service for the District of Massachusetts and the office of Massachusetts Auditor Suzanne Bump. Assistant U.S. Attorney Bill Abely, Deputy Chief of Lelling’s Major Crimes Unit, is prosecuting the case.
Department of Justice Issues Business Review Letter to the American Optometric Association for Its Proposed Expansion of Its Group Purchasing ActivitiesRead the Press Release
The Department of Justice announced today that it will not challenge a proposal by the American Optometric Association (the Association) to expand its group purchasing organization’s (GPO) activities to include the purchase of optometric products for resale to consumers, namely corrective eyeglass lenses, eyeglass frames, and contact lenses. The department said that the proposed expansion is unlikely to produce anticompetitive effects. Moreover, the expansion could produce discounts for the Association’s members and ultimately lead to lower prices for optometric products for consumers. The department’s position was stated in a business review letter to counsel for the Association and the GPO from Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division.
Many joint purchasing arrangements among healthcare providers do not raise antitrust concerns where these arrangements can produce efficiencies that benefit consumers, including reducing transaction costs. A healthcare joint purchasing arrangement, however, can raise antitrust concerns if the arrangement drives down the price of a product or service being purchased below competitive levels or if the arrangement facilitates price fixing or other anticompetitive conduct. Certain safeguards, however, can reduce the risk of a joint purchasing arrangement facilitating price fixing or other anticompetitive conduct.
According to representations made by the Association and the GPO, the Association will follow the three safeguards discussed in Statement 7 of the Statements of Antitrust Enforcement Policy in Health Care to reduce the risk of facilitating price fixing. Those safeguards are that (1) GPO participants will not be required to make any of their optometric-product purchases through the GPO, (2) a third party will negotiate prices with the GPO’s suppliers, and (3) communications between the GPO and each individual participant regarding prices will be kept confidential from other GPO participants. In addition, no optometric product manufacturer maintains any financial stake, makes any financial contributions, or holds any ownership or board positions in the Association or the GPO.
Based on the information submitted and representations made by the Association and the GPO, the department has no present intention to challenge the expansion of the Association’s GPO to include the purchase of optometric products for resale to consumers.
Under the department’s business review procedure, an organization may submit a proposed action to the Antitrust Division and receive a statement as to whether the Division currently intends to challenge the action under the antitrust laws based on the information provided. The department reserves the right to challenge the proposed action under the antitrust laws if the actual operation of the proposed conduct proves to be anticompetitive in purpose or effect.
Copies of the business review request and the department’s response are available on the Antitrust Division’s website at https://www.justice.gov/atr/business-review-letters-and-request-letters, as well as in a file maintained by the Antitrust Documents Group of the Antitrust Division. After a 30-day waiting period, any documents supporting the business review will be added to the file, unless a basis for their exclusion for reasons of confidentiality has been established under the business review procedure. Supporting documents in the file will be maintained for a period of one year, and copies will be available upon request to the FOIA/Privacy Act Unit, Antitrust Documents Group at [email protected].
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Department of Justice Announces Enhancements to the Risk Assessment System and Updates on First Step Act ImplementationRead the Press Release
The Department of Justice announced several significant developments in the implementation of the First Step Act (FSA) in a report published today.
“Today is another milestone in implementing the First Step Act,” said Attorney General William P. Barr. “Beginning today, inmates will have even greater incentive to participate in evidence-based programs that prepare them for productive lives after incarceration. This is what Congress intended with this bipartisan bill. The First Step Act is an important reform to our criminal justice system, and the Department of Justice is committed to implementing the Act fully and fairly.”
Some of the key developments are described here:
- In accordance with the First Step Act and due on Jan. 15, 2020, all inmates in the Bureau of Prisons (BOP) system have received an initial assessment using the Justice Department’s risk and needs assessment tool known as the Prisoner Assessment Tool Targeting Estimated Risk and Need (PATTERN). Initially released last July, the tool is designed to measure risk of recidivism of inmates.
- As of Jan. 15, 2020, inmates will be assigned to participate in evidence-based recidivism reduction programs and productive activities based on an initial needs assessment conducted by BOP. Participation and completion of those assigned programs and activities can lead to placement in pre-release custody or a 12-month sentence reduction under the First Step Act. A list of these programs will be published on the BOP’s website.
- In response to the public comments received and in coordination with the Independent Review Committee (IRC), the Justice Department has made changes to PATTERN that enhance its effectiveness, fairness and transparency. These changes had only a slight effect on PATTERN’s high-level of predictability and include:
- Adding a dynamic measure of offender’s “infraction free” period during his or her current term of incarceration;
- Modifying programming measures by adding psychology treatment programs (Bureau Rehabilitation and Values Enhancement Program (BRAVE), Challenge, Skills Program, Sex Offender Treatment (both residential and non-residential), Steps Toward Awareness, Growth, and Emotional Strength Program (STAGES), and Step Down programs), the faith-based Life Connections Program (LCP), and the BOP’s Drug Education program, to the “Number of programs completed (any)” measure and combine technical/vocational and Federal Prison Industries (UNICOR) into a new work programming measure; and
- Removing Age of first arrest/conviction and voluntary surrender.
- The department will also begin a pilot program to publish recidivism data and other First Step Act updates on a quarterly basis.
The efficient and effective implementation of the First Step Act continues to be a priority for the Department of Justice and for the Trump Administration. In this follow-up report, the Justice Department highlights changes made to PATTERN as a direct result of public input received during the 45-day public comment period that followed its publication in July 2019. National Institute of Justice (NIJ) held special listening sessions in early September 2019. During the sessions, NIJ and its partners engaged with stakeholders to ensure BOP can implement the most equitable, effective, and predictive tool possible, and to meet the goals of the FSA.
The BOP is working to incorporate these recommended changes to the risk assessment tool and will conduct a review to determine which inmates may have their risk score and level adjusted. In the interim, inmates will continue to be assigned to programs and activities based on their risk and needs and if eligible, will receive credit upon completion. The department believes that any updates to an inmate's risk score based on these changes will be minimal.
The department continues to work with the IRC and our experts to identify ways to improve PATTERN, while maintaining its high level of predictability, in addition to the feedback received from a range of stakeholders. This input has been invaluable as we strive to ensure the equity and effectiveness of PATTERN.
In addition, the Justice Department will soon release a funding opportunity to support continued implementation of the FSA. In the coming weeks, the NIJ will solicit proposals for a five-year project to review and revalidate PATTERN. For more information visit the NIJ webpage .
Implementation Progress, New and Expanded BOP Programs Under FSA.
The FSA provides for eligible inmates to earn time credits if they participate and complete assigned evidence-based recidivism reduction programs or productive activities. It also provides for the expansion of existing programs that allow for compassionate release and home confinement.
Releases for Good Conduct Time. In July 2019, over 3,100 federal prison inmates were released from the Bureau of Prisons’ custody as a result of the increase in good conduct time under the Act.
Retroactive Resentencing. The Act’s retroactive application of the Fair Sentencing Act of 2010 (reducing the disparity between crack cocaine and powder cocaine threshold amounts triggering mandatory minimum sentences) has resulted in 2,471 orders for sentence reductions.
Compassionate Release. The BOP updated its policies to reflect the new procedures for inmates to obtain “compassionate release” sentence reductions under 18 U.S.C. Section 3582 and 4205(g). Since the Act was signed into law, 124 requests have been approved, as compared to 34 total in 2018.
Expanded Use of Home Confinement. The FSA authorizes BOP to maximize the use of home confinement for low risk offenders. Currently, there are approximately 2,000 inmates on Home Confinement. The legislation also expands a pilot program for eligible elderly and terminally ill offenders to be transitioned to Home Confinement as part of a pilot program. Since enactment of the law, 379 inmates have been approved for participation under the pilot program.
Drug Treatment. The BOP has always had a robust drug treatment strategy. Offenders with an identified need are provided an individualized treatment plan to address their need. In FY 2019, approximately 14,800 offenders enrolled in Residential Drug Abuse Program (RDAP), almost 21,000 offenders enrolled in Non-residential drug treatment, and almost 23,000 offenders participated in Drug Education.
Medication Assisted Treatment (MAT). The FSA requires BOP to assess the availability of and the capacity to treat heroin and opioid abuse through evidence-based programs, including medication-assisted treatment. In the wake of the opioid crisis, this initiative is important to improve reentry outcomes. Every inmate within 15 months of release who might qualify for MAT has been screened.
Effective Re-Entry Programming. FSA implementation includes helping offenders successfully reintegrate into the community – a critical factor in preventing recidivism and, in turn, reducing the number of crime victims. Finding gainful employment is an important part of that process. In furtherance of this goal, the BOP launched a “Ready to Work” initiative to connect private employers with inmates nearing release under the FSA.
Other BOP programs directed towards the full implementation of the FSA include the operation of twenty pilot dog programs, the development of a youth mentoring program, the identification of a dyslexia screening tool, and issuance of a new policy for its employees to carry and store personal weapons on BOP institution property. BOP has also updated existing guidance and training concerning the use of restraints on pregnant inmates, as well as verified that existing policies and contracts comply with the FSA requirement to provide sanitary products to female offenders free of charge. BOP also offers de-escalation training to its employees and officers in accordance with the Act. Finally, BOP has updated its mental health awareness training regarding inmates with psychiatric disorders, and more than 33,700 BOP employees have already received the updated training.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Cell Phone Store Robbers Sentenced to Combined 61 Years in Federal PrisonRead the Press Release
Two men convicted of committing violent robberies at cell phone stores across North Texas have been sentenced to a combined 61 years in federal prison following an investigation by the FBI”s Dallas Field Office, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Following a six-day trial in April 2018, a jury convicted Michael Wright, 29, of Dallas, of three counts of interference with commerce by robbery, three counts of possessing or brandishing a firearm during and in relation to a crime of violence, and unlawful possession if a firearm by a convicted felon. U.S. District Judge Ed Kinkeade on Wednesday sentenced Mr. Wright to 36 years’ imprisonment.
The jury convicted Rickey Cherry, 29, also of Dallas, of two counts of interference with commerce by robbery and two counts of brandishing a firearm during and in relation to a crime of violence. Judge Kinkeade sentenced Mr. Cherry to 25 years’ imprisonment.
A coconspirator, Kameron Robinson, 27, previously pleaded guilty to one count of interference with commerce by robbery and one count of brandishing a firearm during and in relation to a crime of violence. He was sentenced in August 2018 to 12 years’ imprisonment.
According to facts presented at Wright and Cherry’s trial, on Jan. 2, 2015, Mr. Wright and Mr. Robinson – masked and armed with a .45 caliber pistol – robbed an AT&T retail store at gunpoint in Ennis, Texas. They stole approximately $30,000 of inventory, including cell phones and tablets.
They were apprehended by Ennis Police Department after leading police on a dangerous, high-speed pursuit, driving on the wrong side of the highway and over rain-slick rural roads.
Mr. Wright posted bond the following day. Just twenty days later, on Jan. 22, he and Mr. Cherry – masked and armed with a pistol – robbed a RadioShack at gunpoint in Duncanville, Texas. They viciously pistol-whipped the store manager before making off with approximately $28,000 in inventory, including cell phones.
Two weeks later, Mr. Wright and Mr. Cherry – once again masked and armed – robbed an AT&T retailer at gunpoint in Grand Prairie, Texas. They stole approximately $32,000 in inventory, including cell phones and tablets.
DNA evidence presented at trial linked them to the robberies.
The Federal Bureau of Investigation, the Ennis Police Department, the Duncanville Police Department, the Grand Prairie Police Department, and the Dallas Police Department conducted the investigation. Assistant U.S. Attorneys Keith Robinson, Brian McKay, and Gary Tromblay prosecuted the case.
Bronx Man Charged with 2015 MurderRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Dermot F. Shea, the Commissioner of the New York City Police Department (“NYPD”), announced the Indictment of BRYANT BROWN, a/k/a “Trigga,” for the murder of Albendris Nunez, 21, in the Bronx, New York, on December 20, 2015. BROWN was taken into federal custody earlier today and will be presented this afternoon before U.S. Magistrate Judge Katherine H. Parker. This case is assigned to U.S. District Judge Paul A. Engelmayer.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Albendris Nunez was 21 years old when he was murdered in Devoe Park. As alleged in the Indictment, Bryant Brown was responsible for that murder. Thanks to our outstanding partners at the NYPD, Brown now faces federal charges for this terrible crime.”
Police Commissioner Dermot Shea said: “Early on a Sunday, Albendris Nunez was fatally shot on the street outside a Bronx park. Four years later, our police officers and detectives, working with our law enforcement partners, have brought justice and proven the effectiveness of our unrelenting focus on fighting violent crime."
According to the allegations in the Indictment[1]:
On or about December 20, 2015, BROWN attempted to rob Nunez in vicinity of Devoe Park in the Bronx, New York, and in the course of that robbery Nunez was murdered.
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BROWN, 25, of the Bronx, New York, is charged with one count of attempted robbery, which carries a maximum penalty of 20 years in prison, and one count of using a firearm to commit murder during a crime of violence, which carries a maximum penalty of death or life in prison, and a mandatory minimum sentence of five years in prison. The maximum and minimum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding work of the NYPD.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Jamie Bagliebter and Mollie Bracewell are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Boulder County Woman Pleads Guilty After Stealing More Than $429,000 from Federal GovernmentRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced today that Kathleen McCalib, age 52, of Boulder, pleaded guilty to theft of government funds. McCalib appeared at the change of plea hearing free on bond. Her bond was continued at the conclusion of the hearing. The Inspector General for both the Office of Personnel Management and the Social Security Administration joined in this announcement.
According to the stipulated facts contained in the plea agreement, McCalib’s father died in late 2006. At the time he died, he was receiving both Social Security retirement benefits and a civil service retirement pension from his time as a federal employee. The federal government was not informed of his death, so these payments continued to be deposited each month into a joint account that McCalib held with her father. For about the next twelve years, McCalib continued to spend these funds, frequently forged her deceased father’s signature on checks, including large checks to herself that she wrote, and then endorsed on the back with her own signature. She occasionally paid a home mortgage from the account. By the time law enforcement caught up with her, McCalib had taken and spent $429,454.46 in federal government money to which she was not entitled.
“Accepting Social Security public retirement benefits intended for a person who has died is just like any other theft and will be treated accordingly,” said U.S. Attorney Jason Dunn. “In this case, it’s even worse because the victim is all of us – the taxpayers who fund these programs.”
“Improper payments threaten the financial integrity of the retirement program and the trust fund,” said Thomas W. South, Deputy Assistant Inspector General for Investigations, OPM OIG. “We are grateful for the hard work of our criminal investigators, criminal analysts, and our partners at the Department of Justice. Their diligence helps protect retirees and safeguard taxpayer funds.”
“This guilty plea is a warning to those who misuse Social Security benefits after someone dies,” said Jennifer Walker, Assistant Inspector General for Investigations, Social Security Office of the Inspector General. “This is a Federal crime, one we will continue to vigorously pursue. I want to thank the United States Attorney’s Office for its efforts to bring this individual to justice.”
McCalib was charged on December 19, 2019. Her sentencing hearing is scheduled for April 28, 2020. The guilty plea was entered yesterday, January 14, 2020, before U.S. District Court Judge Raymond P. Moore.
This case was jointly investigated by the Inspector General offices of both the Office of Personnel Management and the Social Security Administration.
Boston Man Sentenced for Firearms OffenseRead the Press Release
BOSTON – A Boston man was sentenced yesterday in federal court in Boston for the unlicensed transportation of a firearm.
Kenny Romero, 24, was sentenced by U.S. Senior District Court Judge George A. O’Toole Jr. to 21 months in prison and three years of supervised release. In October 2019, Romero pleaded guilty to one count of unlicensed transportation of firearms and has been detained since his arrest on July 9, 2019.
Law enforcement officers discovered Romero in possession of a firearm during a vehicle stop in December 2016. A subsequent investigation revealed that the firearm, which had been used in a shooting earlier that month, was purchased in Virginia in November 2016. Agents learned that another individual purchased the firearm at Romero’s direction, and Romero subsequently transported the firearm from Virginia back to Massachusetts, where he resides.
United States Attorney Andrew E. Lelling and Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Office made the announcement today. Valuable assistance was provided by the U.S. Attorney’s Office for the Eastern District of Virginia, the ATF - Falls Church Field Office and the Boston Police Department. Assistant U.S. Attorney Anne Paruti of Lelling’s Major Crimes Unit prosecuted the case.
Bossier City Oil and Gas Company and Owner Indicted for Harboring Illegal AliensRead the Press Release
SHREVEPORT, La. – A Bossier City oil and gas company owner made his initial appearance today, January 15, 2020, on behalf of himself and his company, after being charged in an 18-count indictment for allegedly harboring aliens, announced David C. Joseph, United States Attorney for the Western District of Louisiana.
Tim Icenhower, 57, of Marshall, Texas, and Icenhower Oil and Gas, Inc., a pipeline and oilfield construction company located in Bossier City, Louisiana, were indicted by a federal grand jury on December 11, 2019, on 18 counts of harboring aliens. Icenhower appeared today before United States Magistrate Judge Mark L. Hornsby where he was advised of his rights and the charges pending against him and his company.
The government did not move to detain the defendant and Icenhower was released on bond. Magistrate Judge Hornsby has scheduled a status conference for March 16, 2020, to set a timeline for discovery matters and a trial date.
According to allegations contained in the indictment, between January 2017 and continuing to the present, Icenhower Oil and Gas, Inc., and Tim Icenhower knowingly employed illegal aliens and, in doing so, encouraged them to reside in the United States, aware that such residence was in violation of the law.
If convicted, Tim Icenhower faces up to 10 years in prison and a $250,000 fine for each count, and three years of supervised release; Icenhower Oil and Gas, Inc. faces a $500,000 fine for each count.
The U.S. Department of Homeland Security – Immigration and Customs Enforcement investigated the case. Assistant U.S. Attorney Earl M. Campbell is prosecuting the case.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Bergen County Insurance Broker Sentenced to Six Months in Prison, Six Months’ Home Confinement, for Health Care FraudRead the Press Release
TRENTON, N.J. – A former insurance broker with an office in Fort Lee, New Jersey, was sentenced today to six months in prison and six months of home confinement for defrauding Horizon Blue Cross Blue Shield, U.S. Attorney Craig Carpenito announced.
Lawrence Ackerman, 55, a resident of Old Tappan, New Jersey, previously pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to a superseding information charging him with one count of health care fraud.
According to documents filed in this case and statements made in court:
Ackerman was the chief operating officer of Atlantic Business Associates (ABA) and Atlantic Medical Associates (AMA), two “shell” companies through which he marketed health insurance nationally to people who were not his employees and therefore ineligible for health coverage. During the month of January 2011, he delivered $481,500 in health care benefits to ineligible participants.
As part of his plea, Ackerman must make restitution to Blue Cross Blue Shield for the fraudulent claims paid between 2009 and 2013. Ackerman originally was charged in a two-count indictment with conspiring to defraud Horizon Blue Cross Blue Shield of $5.6 million in fraudulent claims, and for defrauding the Local 2326 (UAW) Welfare Fund of $1 million in fraudulent claims. Those charges are now dismissed, and he is also obligated to pay restitution of $1 million to the Local 2326 Welfare Fund.
U.S. Attorney Carpenito credited special agents of the Department of Labor, Office of the Inspector General, under the direction of Special Agent in Charge Michael Mikulka; agents of the Employee Benefits Security Administration (EBSA), under the direction of Regional Director Darren Cohen; and agents of the Office of Labor Management Standards (OLMS), under the supervision of Regional Director Andriana Vamvakas, with the investigation leading to today’s sentencing.
The government is represented by Senior Litigation Counsel V. Grady O’Malley of the Organized Crime/Gangs Unit in Newark.
Baton Rouge Man Sentenced to 200 Months in Federal Prison for Illegally Possessing FirearmsRead the Press Release
United States Attorney Brandon J. Fremin announced that U.S. District Judge John W. deGravelles sentenced Craig Davis, age 49, of Baton Rouge, Louisiana, to 200 months in federal prison following his convictions for possession of firearms by a convicted felon and possession with the intent to distribute methamphetamine and marijuana. The Court further sentenced Davis to four years of supervised release following his term of imprisonment and ordered that the firearms involved be forfeited.
According to admissions Davis made as part of his guilty plea, on September 28, 2017, following an undercover drug buy at his residence, Baton Rouge Narcotics Detectives executed a state search warrant for the residence.
During the execution of the warrant, Davis admitted to possessing a Smith & Wesson, model 19, .357 caliber revolver; a Mossberg, model 500BB, 16 gauge shotgun; a Winchester, model 77, .22 caliber rifle; methamphetamine; and marijuana and voluntarily led detectives to various locations of these items in and around the residence.
Prior to possessing the firearms, Davis was convicted of attempted simple robbery in March 2012, possession of cocaine in February 2012, and first degree robbery in September 2001. Each of Davis’ prior convictions occurred in East Baton Rouge Parish.
U.S. Attorney Fremin stated, “Keeping violent career criminals who possess firearms and drugs off of our streets is among the highest priorities of this office. We will continue to work with our federal, state, and local partners to remove this type of threat from our community. Congratulations to our prosecutor, the ATF, and the Baton Rouge Police Department for their great work on this case.”
“The sentence imposed today sends a message to individuals who are prohibited from possessing firearms that they will be held accountable for their actions,” said ATF New Orleans Field Division Assistant Special Agent in Charge Jeffrey Powell. “Reducing firearm related crimes and keeping our neighborhoods and communities safe is the top priority for ATF.”
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian partners: the Bureau of Alcohol, Tobacco, Firearms and Explosives and Baton Rouge Police Department.
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Bureau of Alcohol, Tobacco, Firearms and Explosives, with substantial assistance from the Baton Rouge Police Department. The case was prosecuted by Assistant United States Attorney Michael J. Jefferson.
Baltimore Police Detective Facing Federal Indictment for Conspiring to Deprive Civil Rights, Falsifying Records in a Federal Investigation, and Making False Statements Before a Federal Grand JuryRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Robert Hankard, age 43, of Baltimore, Maryland, on federal charges related to allegations that he provided a BB gun that he knew would be planted on a suspect, that he falsified an application for a search warrant and an arrest report in a second incident where drugs were planted on a suspect, and that he falsely testified to a federal grand jury in a federal investigation. The indictment was returned on January 14, 2020, and was unsealed at his initial appearance today.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
According to the five-count indictment, Hankard has been a member of the Baltimore Police Department (BPD) since 2007 and was promoted to detective on March 20, 2014. In 2014 and 2015, Hankard served on a Special Enforcement Section (SES) unit assigned to the BPD’s Western District. On the evening of March 26, 2014, Hankard, who was not on duty that day, received a call from his partner, who advised him that Sergeant W.J. had been “hemmed up” in something and asked Hankard if he had any “toys” or “replicas.” Hankard understood that his partner was asking for a BB gun or air soft gun so that it could be planted on a suspect. Hankard advised that he did have a BB gun. Hankard’s partner came to Hankard’s house and Hankard provided him with the BB gun, which was subsequently planted at the scene of the arrest of D.S., whom Sergeant W.J. had run over after chasing D.S. No guns or drugs were recovered from D.S. at the time of his arrest, but drugs were recovered from D.S. at the hospital, where he had been taken in the custody of the Baltimore Police officers. D.S. was charged with possession, use, and discharge of a gas or pellet gun, for the BB gun that was planted at the scene of D.S.’s arrest, and a number of drug offenses. D.S. was detained on those charges until at least April 2, 2014, and the charges were dismissed on January 16, 2015.
As detailed in the indictment, on September 24, 2015, Hankard arrested D.B., a target in a drug investigation, as he sat in his pick-up truck in a motel parking lot. The indictment alleges that after removing D.B. from the vehicle, Hankard and his partner searched the vehicle, but no drugs were found. Other officers on the scene allegedly went into the room where D.B. had been staying and found a woman, B.J., a large quantity of heroin that had not yet been packaged for distribution, and a small quantity of cocaine that had already been packaged for distribution. The officers had not obtained a search warrant before entering the room. After learning that no drugs had been found in the truck, the indictment alleges that another officer, with Hankard’s permission, planted some of the cocaine found in the motel room in D.B.’s truck, in order to justify the arrest of D.B. and B.J. and the entry into the motel room.
According to the indictment, Hankard subsequently wrote a search warrant for the motel room, which contained several false statements, including that his partner had “observed in plain view, a clear tied bag, that contained small zip lock bags (with red dice logo) of suspected cocaine (after opening the clear bag, it revealed 10 ziplock bags total)” in D.B.’s truck; that D.B. was seen throwing the package of suspected cocaine to the floor of the vehicle; that after making sure the motel room card key worked, detectives had secured the room pending a search warrant; and that Hankard “believes there is addition suspected controlled dangerous substances (CDS)” in the motel room.
The indictment alleges that after the search warrant was obtained and executed at the motel room, Hankard prepared a false incident report, which was approved by his partner as the “officer-in-charge” at the time of the arrests, even though the SES unit’s Sergeant was on the scene at the time.
Further, the indictment alleges that on February 13, 2019, Hankard falsely testified before a federal grand jury by stating that he had not provided the BB gun to his partner on March 26, 2014.
If convicted, Hankard faces a maximum sentence of five years in federal prison for conspiracy to commit offenses against the United States; a maximum of 10 years in federal prison for conspiracy to deprive civil rights; a maximum of 20 year in federal prison for each of two counts of falsification of records in a federal investigation; and a maximum of five years in federal prison for false declarations before a grand jury. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. At today’s initial appearance in U.S. District Court in Baltimore, U.S. Magistrate Judge J. Mark Coulson ordered that Hankard be released pending trial under the supervision of U.S. Pretrial Services.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the FBI for their work in the investigation and thanked the Baltimore Police Department for its assistance. Mr. Hur thanked Assistant U.S. Attorneys Leo J. Wise and Derek E. Hines, who are prosecuting the case.
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A Columbus, Ohio Man Defrauds Employer of over $4 MillionRead the Press Release
An employee of Cummins Bridgeway, LLC (“CBL”) and Cummins Inc. (“Cummins”), two Michigan-based companies operating in New Hudson, pleaded guilty yesterday to devising a scheme that defrauded his employer of over $4 million, announced United States Attorney Matthew Schneider.
Schneider was joined in the announcement by Steven D’Antuono, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
Pleading guilty was David Hudson, 54, of Columbus, Ohio.
According to the plea agreement, Hudson worked for CBL from approximately 2003 through 2014, until it was acquired by Cummins. Post-acquisition, Hudson was employed by Cummins. The owners of CBL established two entities to which CBL profits were paid for the purpose of sharing profits with CBL management and employees. While working at CBL, Hudson’s job involved transferring funds to these profit sharing entities in the normal course of business. As part of his job, Hudson had authority to write checks from the profit sharing entities. As part of the scheme to defraud, Hudson would, under false pretenses, direct an employee under his supervision to transfer CBL funds—and later Cummins funds—into one or more of the profit sharing entities. Hudson would then, without authorization, write checks from the profit sharing entities to himself. It was the goal of this scheme that Hudson would take advantage of his authority and position in order to enrich himself at the expense of his employers. Between the years of approximately 2008 and 2017, Hudson's scheme resulted in the fraudulent transfer of over $4.5 million dollars.
Under the terms of the plea agreement, Hudson is facing a sentence of 51-63 months. Hudson will be sentenced on April 15 at 3 p.m. before United States District Judge Arthur Tarnow.
This case was investigated by special agents of the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Timothy Wyse.
5 charged in $2.8 million Dark Web drug trafficking, money laundering conspiracyRead the Press Release
CINCINNATI – A federal grand jury has indicted five individuals alleged to be members of one of the most prolific online drug trafficking organizations in the United States. The indictment was returned and unsealed in Cincinnati.
According to the 21-count indictment, since 2013, co-conspirators used several Dark Web marketplace accounts and encrypted messaging apps in order to sell illegal drugs online.
The defendants allegedly specialized in the manufacturing and distribution of more than one million fentanyl-laced counterfeit pills and laundered approximately $2.8 million over the course of the conspiracy. The pressed fentanyl pills, along with heroin, methamphetamine and cocaine, were shipped to the Southern District of Ohio and throughout the country.
Named in the indictment are: Khlari Sirotkin, 36, of Colorado; Kelly Stephens, 32, of Colorado; Sean Deaver, 36, of Nevada; Abby Jones, 37, of Nevada; and Sasha Sirotkin, 32, of California. Each is charged in all 21 counts. Each of the five defendants was arrested in December and has appeared in federal court in Cincinnati.
The investigation was coordinated out of the Cincinnati Field Office of the FBI and is part of an Organized Crime Drug Enforcement Task Force (OCDETF) joint investigation conducted by the Southern Ohio Digitized Organized Crime Group. Essential support and coordination was provided by the Department of Justice’s multi-agency Special Operations Division (SOD), including assigned attorneys from the Narcotic and Dangerous Drug Section.
This operation was facilitated in conjunction with the Joint Criminal Opioid and Darknet Enforcement (JCODE) team. JCODE is a FBI-led initiative that brings together agents, analysts and professional staff to disrupt the sale of drugs, especially fentanyl and other opioids, on the internet and dismantle criminal enterprises that facilitate this trafficking. The JCODE team consists of the following entities: the Federal Bureau of Investigation, Drug Enforcement Administration, U.S. Postal Inspection Service, Department of Defense, Defense Intelligence Agency, U.S. Customs and Border Protection, US Department of Homeland Security, Bureau of Alcohol, Tobacco, Firearms and Explosives, Department of Justice and Financial Crimes Enforcement Network.
The narcotics conspiracy in this case is punishable by 10 years up to life in prison. The money laundering conspiracy is punishable by up to 20 years in prison. Individual counts of distributing and attempting to distribute fentanyl or heroin also carry potential maximum penalties of 20 years in prison. Selling counterfeit drugs is punishable by up to 10 years in prison. Congress sets minimum and maximum statutory sentences. Sentencing of defendants will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.
“It doesn’t matter to us if you’re out on the streets or behind a computer screen in the comfort of your own home – if you deal fentanyl, as is alleged here, we will identify you and we will prosecute you to the fullest extent of the law,” said U.S. Attorney David M. DeVillers.
“This case demonstrates that as organized criminals leverage technologies such as the Dark Web, encrypted messaging applications, and cryptocurrencies to conceal their illegal activities, the FBI and our partners will employ sophisticated techniques, creative methods, and a joint effort to hold them accountable,” stated FBI Cincinnati Special Agent in Charge Chris Hoffman.
“Unscrupulous people who use the darknet as a marketplace for selling and distributing illegal and dangerous prescription drugs will be found,” said Special Agent in Charge Charles L. Grinstead, FDA Office of Criminal Investigations Kansas City Field Office. “We are fully committed to disrupting and dismantling illegal prescription drug distribution networks that misuse the internet at the expense of public health and safety.”
“Not even the shadowy corners of the Dark Web can provide a safe haven for drug dealers,” said Drug Enforcement Administration Special Agent in Charge Keith Martin. “Law enforcement is committed to tracking down drug traffickers’ distribution networks no matter where they operate.”
“Battling the distribution of synthetic drugs via the U.S. Mail is one of the Postal Inspection Service’s highest priorities,” said Inspector in Charge Tommy Coke. “This case proves Postal Inspectors and our law enforcement partners remain steadfast in dismantling organizations which are distributing these illicit and dangerous drugs across the U.S. This case involved hard work and dedication from multiple field divisions for both the USPIS and our partners. We will remain unwavering in our mission to identify and disrupt their illegal activity.”
"These individuals are alleged to have trafficked large quantities of highly addictive drugs through our local communities and into our surrounding states,” said Vance Callender HSI Special Agent in Charge for Michigan and Ohio. “This dismantlement of this organization demonstrates HSI’s ability to combat the ongoing epidemic affecting Ohio."
“These aren’t street corner drug pushers – this conspiracy allegedly infiltrated our communities and sold fentanyl in the dank depths of the internet and sent it to mailboxes and doorsteps,” Ohio Attorney General Dave Yost said. “Ohioans are safer, thanks to the work of our narcotics agents and federal partners who untangle webs of deception and death.”
David M. DeVillers, United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Keith Martin, Special Agent in Charge, Drug Enforcement Administration (DEA); Charles L. Grinstead, Special Agent in Charge, U.S. Food and Drug Administration – Office of Criminal Investigations (FDA-OCI), Kansas City Field Office; Tommy D. Coke, Inspector in Charge, United States Postal Inspection Service (USPIS); Vance Callander, Special Agent in Charge, Homeland Security Investigations (HSI); Ohio Attorney General Dave Yost; Cincinnati Police Chief Eliot K. Isaac; and the Ohio National Guard Counterdrug Task Force announced the charges. Criminal Chief Karl P. Kadon is representing the United States in this case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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34 Historic Stone Projectile Points Returned to Haffenreffer MuseumRead the Press Release
PROVIDENCE – More than thirty years after they vanished from the collections of the Haffenreffer Museum of Anthropology, a group of thirty-four stone projectile points, hundreds, perhaps more than a thousand years old, were returned to the museum today by United States Attorney Aaron L. Weisman and Homeland Security Investigations Acting Special Agent in Charge Jason Molina.
The stone projectiles points, used primarily for hunting, were unearthed by Harrie M. Wheeler, a noted Rhode Island collector and amateur archeologist, during excavations that he conducted between 1928 and 1950 in East Greenwich, Rhode Island.
Present today as the museum director and others from the Haffenreffer Museum of Anthropology took possession of these historic items, were Harrie Wheeler’s great, great grandsons Jason Langlais and Brian Cory, themselves amateur archeologists who continue to follow in their great, great grandfather’s footsteps.
United States Attorney Aaron L. Weisman said, “I am gratified that we, at the U.S. Attorney’s Office, were able to play some role in returning to the Haffenreffer Museum of Anthropology these historic items excavated, many, many decades ago, in East Greenwich, Rhode Island, and likely dating to the pre-Columbian Twelfth Century,” said United States Attorney Aaron L. Weisman.
“The trafficking of artifacts threatens the preservation and study of the world’s culture and history,” said Jason Molina, Acting Special Agent in Charge, Homeland Security Investigations, Boston. “Along with the critical efforts of the U.S. Attorney for Rhode Island, HSI is proud to have helped bring about a measure of justice with the return of the artifacts.”
Harrie M. Wheeler, a Rhode Island native with a passion for pre-Columbian archaeology and anthropology, sold part of his collection of artifacts to Rudolf F. Haffenreffer Jr. in 1928 for the sum of $1,000. Haffenreffer was a local brewer, entrepreneur and philanthropist who subsequently founded the museum that bears his name, and that became a part of Brown University in 1955 following his death. A second set of artifacts gathered by Wheeler, including the stone projectile points returned today, were acquired by the Museum in 1985.
Two years later, in 1987, the Museum’s assistant curator noticed that the stone projectile points, along with a number of other items, were missing. They were reported stolen to Brown University and Bristol Police. While a number of the stolen items surfaced over the course of the next three decades at flea markets or private sales, the fate of this particular group of missing artifacts remained a mystery until early 2019, when an adroit observer noticed a listing on eBay offering a “collection of museum quality arrowheads” for sale for $500.00. The listing included photos, one of which showed the stone projectile points in their original display box, bearing a label reading: “Arrowheads from a Rhode Island Archaeological dig in East Greenwich, Kent County, Rhode Island, 1928-1950, Ex Wheeler Collection, Haffenreffer Museum, All Authentic.”
One of the items was marked with the number “85-827,” which matched the Haffenreffer’s catalog number for the artifacts. Contacted by the individual who first observed the listing, curators at the Haffenreffer reached out to the Brown University and Bristol Police Departments, who in turn requested the assistance of Homeland Security Investigations (HSI). Federal investigators were able to quickly locate the eBay seller, secure the items, and confirm their provenance.
Based on information developed during the investigation by HSI, it appears that the eBay seller acquired the stone projectile points for a case of wine from an individual who listed them on Craigslist. HSI's investigation, and efforts to determine the whereabouts of other items stolen from the Haffenreffer collection in 1987 remains ongoing, and anyone with potentially relevant information is urged to contact the HSI Tip Line at (866) 347-2423.
Using a provision of federal law that allows the government to recover stolen goods that travel across state lines, the U.S. Attorney’s Office in Rhode Island filed a lawsuit to forfeit the stone projectile points. Following completion of that lawsuit, and a review of Brown’s petition for return of the projectile points to the Museum, federal authorities today were able to return them to where they properly belong.
This case is one of many in which the United States has utilized the federal forfeiture laws to secure the return of stolen cultural property, art, and artifacts, to museums who have been victimized by theft.
U.S. Attorney Weisman extended the federal Government’s thanks to Brown University and to the Bristol Police Department, whose cooperation and collaboration in the investigation of the theft were instrumental to the return of these irreplaceable historical artifacts.
The Government’s case was litigated by Assistant U.S. Attorney Zachary A. Cunha.
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