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Thursday 21 November 2019
Former Private Prisoner Transport Officer Sentenced to Prison for Sexually Assaulting an Individual During a TransportRead the Press Release
James Baldinger, 51, a former private prisoner transport officer with the Prisoner Transportation Services of America LLC (PTS), was sentenced today in federal court in Albuquerque, New Mexico, to two years in prison for sexually assaulting a female during transport.
According to court documents, Baldinger worked as a transport officer for PTS, a private prisoner extradition company that contracts with government agencies to transport individuals arrested on out-state-warrants to the extraditing jurisdiction. On or about July 11-12, 2017, during a transport from Kentucky to Bernalillo County, New Mexico, Baldinger sexually assaulted a female who was in his custody. Specifically, he touched her while she was restrained and without her consent. As a result of Baldinger’s conduct, the victim suffered pain and injury. Baldinger admitted that he knew what he was doing was wrong and against the law, yet he did so anyway.
“The Department of Justice will hold accountable anyone who uses their law enforcement authority to sexually assault individuals in their custody,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Civil Rights Division will continue to vigorously prosecute these cases and secure justice for victims of these despicable crimes.”
“Every individual has a fundamental right not be sexually assaulted. By taking advantage of his power over the victim, and sexually abusing her, this defendant committed a grievous violation of the public trust,” said U.S. Attorney John C. Anderson for the District of New Mexico. “Today’s sentence should send a clear message that the United States Attorney’s Office for the District of New Mexico will work tirelessly to bring to justice those who abuse their authority to perpetrate such appalling crimes.”
This case was investigated by the Albuquerque Division of the FBI and the New Mexico State Police. It was prosecuted by Special Litigation Counsel Fara Gold and Trial Attorney Maura White of the Civil Rights Division of the U.S. Department of Justice, as well as Assistant United States Attorney Shaheen Torgoley, formerly of the District of New Mexico and Assistant United States Attorney Kimberly Brawley, of the District of New Mexico.
Former Partner of Locke Lord LLP Convicted in Manhattan Federal Court of Conspiracy to Commit Money Laundering and Bank Fraud in Connection with Scheme to Launder $400 Million of OneCoin Fraud ProceedsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Cyrus R. Vance Jr., the District Attorney for New York County, announced the conviction today of MARK S. SCOTT, following a three-week trial before the Honorable Edgardo Ramos. SCOTT, a former equity partner at the law firm Locke Lord LLP, laundered approximately $400 million in proceeds of a massive international fraud scheme known as “OneCoin” through fraudulent investment funds that SCOTT set up and operated for that purpose. SCOTT was paid more than $50 million for his money laundering services, which he used to buy luxury cars, a yacht, and several seaside homes.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Mark S. Scott, an equity partner at a prominent international law firm, used his specialized knowledge as an experienced corporate lawyer to set up fake investment funds, which he used to launder hundreds of millions of dollars of fraud proceeds. He lined his pockets with over $50 million of the money stolen from victims of the OneCoin scheme. Scott, who boasted of earning ‘50 by 50’ now faces 50 years in prison for his crimes.”
As reflected in the Indictment, documents previously filed in the case, and evidence introduced at trial:
“OneCoin” is a massive pyramid fraud scheme. OneCoin Ltd. was co-founded in or about 2014 by Ruja Ignatova, and is based in Sofia, Bulgaria. SCOTT was introduced to Ignatova in late 2015, and began laundering OneCoin fraud proceeds in 2016. Ignatova served as OneCoin’s top leader until her disappearance from public view, in or about October 2017.
OneCoin Ltd. operates as a multi-level marketing network through which members receive commissions for recruiting others to purchase cryptocurrency packages. OneCoin Ltd. has claimed to have over three million members worldwide, including victims living in the Southern District of New York. Records obtained in the course of the investigation show that, between the fourth quarter of 2014 and the third quarter of 2016 alone, OneCoin Ltd. generated €3.353 billion in sales revenue and earned “profits” of €2.232 billion. OneCoin continues to operate to this day.
Among a number of other representations, OneCoin Ltd. has claimed that the OneCoin cryptocurrency is “mined” using mining servers maintained and operated by the company, and that the value of OneCoin is based on market supply and demand. The purported value of a OneCoin steadily grew from €0.50 to approximately €29.95 per coin, as of in or about January 2019. In fact, the value of OneCoin is determined internally and not based on market supply and demand, and OneCoins are not mined using computer resources. Moreover, the investigation has revealed that Ignatova and her co-founder conceived of and built the OneCoin business fully intending to use it to defraud investors.
SCOTT – who was employed between June 2015 and September 2016 as an equity partner at Locke Lord LLP, a prominent international law firm – was first introduced to Ignatova in September 2015. Beginning in 2016, SCOTT formed a series of fake private equity investment funds in the British Virgin Islands known as the “Fenero Funds.” SCOTT then disguised incoming transfers of approximately $400 million into the Fenero Funds as investments from “wealthy European families,” when in fact the money represented proceeds of the OneCoin fraud scheme. SCOTT layered the money through various Fenero Fund bank accounts in the Cayman Islands and the Republic of Ireland. SCOTT subsequently transferred the funds back to Ignatova and other OneCoin associated entities, this time disguising the transfers as outbound investments from the Fenero Funds. As part of the scheme, SCOTT and his co-conspirators lied to banks and other financial institutions all over the world, including to banks in the United States, to cause those institutions to make transfers of OneCoin proceeds and evade anti-money laundering procedures.
SCOTT, who boasted about earning “50 by 50,” was paid more than $50 million for his money laundering services. He used that money to purchase, among other things, a collection of luxury watches worth hundreds of thousands of dollars, a Ferrari and several Porsches, a 57-foot Sunseeker yacht, and three multimillion-dollar seaside homes in Cape Cod, Massachusetts.
SCOTT was arrested near one of his seaside homes in Barnstable, Massachusetts, on September 5, 2018.
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SCOTT, 51, of Coral Gables, Florida, was convicted of one count of conspiracy to commit money laundering, which carries a maximum potential sentence of 20 years in prison, and one count of conspiracy to commit bank fraud, which carries a maximum potential sentence of 30 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as the sentencing of the defendant will be determined by the judge. Sentencing before Judge Ramos is scheduled for February 21, 2020.
Mr. Berman and Mr. Vance praised the outstanding investigative work of IRS-CI and the FBI, which jointly conducted this investigation with the Special Agents from the U.S. Attorney’s Office.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Christopher J. DiMase and Nicholas Folly, and Special Assistant United States Attorney Julieta V. Lozano of the New York County District Attorney’s Office, are in charge of the prosecution.
Former Baltimore Mayor Catherine Pugh Pleads Guilty to Federal Conspiracy and Tax ChargesRead the Press Release
Baltimore, Maryland – Catherine Elizabeth Pugh, age 69, of Baltimore, Maryland, pleaded guilty today to the federal charges of conspiracy to commit wire fraud, conspiracy to defraud the United States, and two counts of tax evasion. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for February 27, 2020, at 10:00 a.m.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
“Catherine Pugh betrayed the public trust for her personal gain,” said United States Attorney Robert K. Hur. “Baltimore City faces many pressing issues, and we need dedication and integrity from our leaders—not corruption—in order to solve them. Law enforcement will continue to be vigilant for evidence of fraud and corruption, to ensure that our citizens receive the honesty and professionalism they deserve from government officials.”
“The people of Maryland expect elected officials to make decisions based on the public's best interests, not to abuse their office for personal gain,” said Special Agent in Charge Jennifer Boone of the FBI's Baltimore Division. “Catherine Pugh betrayed the public's trust. The FBI will continue to diligently work to detect fraud and corruption and hold those who violate this trust accountable.”
“For over 100 years, IRS Criminal Investigation has been committed to enforcing our nation’s tax laws. This case should serve as an example to the public that everyone will be held to the same standard when it comes to paying their fair share of taxes.” Said Kelly Jackson, IRS Special Agent in Charge, Washington D.C. Field Office. “IRS Criminal Investigation will continue to work diligently with our law enforcement partners to identify and bring to justice those who endeavor to evade taxes, especially those elected to serve the public.”
According to her plea agreement, from approximately 2007 through 2016 Pugh served in the Maryland State Senate, where she served on various legislative committees, including the Senate Health Committee. In 2011, Pugh ran an unsuccessful campaign to be mayor of Baltimore. In September 2015, Pugh again ran for mayor of Baltimore, and won, becoming Mayor on December 6, 2016. Pugh owned Healthy Holly, LLC, a company formed in Maryland on January 14, 2011, and used to publish and sell children’s books she had written. Pugh also owned Catherine E. Pugh and Company, Inc., a marketing and public relations consulting company organized in Maryland in 1997. The principal address for both companies was Pugh’s residence in Baltimore. Pugh was also the sole signatory on the Healthy Holly and Pugh Company bank accounts. Pugh did not maintain a personal bank account, using her business bank accounts for personal and business finances.
Between June 2011 and August 2017, four Healthy Holly books were published, with each book listing “Catherine Pugh” as author. The vast majority of books published by Healthy Holly were marketed and sold directly to non-profit organizations and foundations, many of whom did business or attempted to do business with the Maryland and Baltimore City governments.
From approximately 2011 until December 2016, Gary Brown, Jr. worked as a legislative aide to Pugh. Brown actively campaigned for Pugh’s reelection to the State Senate in 2014 and served as her campaign aide during her 2016 mayoral election campaign. Following Pugh’s election and inauguration as mayor of Baltimore City in December 2016, Brown was hired as the Deputy Director of Special Events in the mayor’s office. In December 2016, Brown was nominated by the Maryland Democratic Central Committee to fill the vacancy in the Maryland House of Delegates created by Pugh’s mayoral victory. However, the Governor withdrew Brown’s nomination after he was indicted for election law violations in January 2017.
Brown was the sole owner and operator of Stricker Abstracting, LLC, and GB Abstracting, LLC, both Maryland companies that purported to be title-abstracting businesses, and GBJ Consulting, LLC, a Maryland consulting business. Brown ran all three companies from his residences in Baltimore. Brown also freelanced as a tax return preparer. Between March 2011 until March 2019, Brown helped Pugh promote and sell the Healthy Holly books. Brown oversaw the transportation and storage of the books, drafted invoices, and corresponded with purchasers. Much of Brown’s work on Healthy Holly occurred during work hours while serving as Pugh’s legislative aide and mayoral staff member. Brown was not an employee of Healthy Holly and received no salary or compensation until approximately mid-2016 when he started to get sales commissions. None of his companies received compensation for services purportedly provided to Healthy Holly.
Wire Fraud
Pugh admitted that from November 2011 until March 2019, she conspired with Gary Brown to defraud purchasers of Healthy Holly books in order to enrich themselves, promote Pugh’s political career, and fund her campaign for mayor. Pugh and Brown admitted that they employed several methods to defraud, including: not delivering books after accepting payments for the books; accepting payments for books to be delivered to a third party on behalf of a purchaser, then converting some or all of the purchased books to their own use without the purchaser’s or third party’s knowledge; and by double-selling books without either purchaser’s knowledge or consent. Pugh stored quantities of fraudulently obtained Healthy Holly books at various locations, including Pugh’s residence, her state legislative offices, her mayoral office, the War Memorial building in Baltimore City, and a public storage locker used by Pugh’s mayoral campaign.
Specifically, Pugh admitted that she sold approximately 20,000 each of Healthy Holly books one, two, and three to the University of Maryland Medical System (UMMS) for $100,000 each. UMMS agreed to the purchase on the condition that it be on behalf of, and for distribution to, school children in the Baltimore City Public School system (BCPS), in part, to further the mission of UMMS’s community outreach program. As part of the agreement Pugh was to deliver the donated books to BCPS.
As detailed in her plea agreement, Pugh did not deliver the full 20,000 Healthy Holly books one, two, and three that UMMS purchased to BCPS, instead keeping some of the books for herself. In addition, Pugh sold to unwitting purchasers copies of Healthy Holly books one, two, and three that had already been sold to UMMS and donated to BCPS. Pugh used Associated Black Charities, a Baltimore-based public charity, to facilitate the resale and distribution of the books to new purchasers. Neither the charity nor the new purchasers knew that Pugh was double-selling the books. Pugh also accepted payment for books that were never delivered to the purchaser.
Conspiracy to Defraud the United States/Tax Evasion
Pugh further admitted that she used the proceeds of the sale of fraudulently obtained Healthy Holly books for her own purposes, including: to fund straw donations to Pugh’s mayoral election campaign; and to fund the purchase and renovation of a house in Baltimore City.
Specifically, Pugh issued Healthy Holly checks payable to Brown, for the purpose of funding straw donations to the Committee to Elect Catherine Pugh. Brown cashed the checks and used the untraceable cash to fund money orders, debit cards, and personal checks in the names of straw donors totaling approximately $35,800. The straw donations purchased with the cash were then deposited into the bank account of the Committee to Elect Catherine Pugh. Pugh wrote additional Healthy Holly checks to Brown totaling $26,300, which he cashed and gave the cash to Pugh. In total, Brown and Pugh cashed out approximately $62,100 of Healthy Holly checks during 2016, all of which went to straw donors or Pugh. To conceal the scheme, Brown and Pugh created the pretense of a legitimate business relationship between Brown and Healthy Holly. In furtherance of the pretense, Pugh and Brown signed an independent contractor agreement between Healthy Holly and GBJ Consulting, and Brown created a business ledger that misrepresented the Healthy Holly checks as payments for promotion services rendered by Brown’s company on behalf of Healthy Holly. At Pugh’s urging, Brown also created bogus GB Consulting invoices and backdated them.
On January 11, 2017, Brown was charged with, and ultimately convicted of, violating Maryland’s election laws for funneling $18,000 of the straw donations to Pugh’s campaign. The Committee to Elect Catherine Pugh issued five checks in the names of three of the straw donors, with a notation in the memo line on each check stating “returned contribution.” In fact, Pugh acknowledges that none of the straw donors received any of the returned money, and instead, at Pugh’s direction, Brown used the money to pay for his legal defense in the state election-law prosecution, a case that had legal implications for Pugh.
Pugh also admitted that she conspired to evade taxes on the income received from the sales of Healthy Holly books. To accomplish this, Pugh concealed from the IRS the fact that she created false business expenses to offset the income she received from the sale of books by issuing Healthy Holly checks to Brown for services and/or products purportedly supplied by his company. Pugh filed false income tax returns for 2015 and 2016, in which she underreported her income. For example, for tax year 2016 Pugh claimed her taxable income was $31,020 and the tax due was $4,168, when in fact, Pugh’s taxable income was $322,365, with an income tax due of approximately $102,444.
Pugh faces a maximum sentence of 20 years in federal prison for the wire fraud conspiracy; five years in federal prison for conspiracy to defraud the United States; and five years in federal prison for each of the two counts of tax evasion. 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. Pugh remains released on conditions under the supervision of U.S. Pretrial Services.
Former Baltimore City employees Gary Brown, Jr., age 38, of Baltimore, previously pleaded guilty to conspiracy to commit wire fraud, to two counts of conspiracy to defraud the United States, and to filing a false tax return. No sentencing date has been set.
United States Attorney Robert K. Hur commended the FBI and the IRS Criminal Investigation for their work in the investigation and thanked the U.S. Department of Labor - Office of Inspector General, Office of Investigations - Labor Racketeering and Fraud, the Maryland State Prosecutor’s Office, and the Baltimore City Office of Inspector General for their assistance. Mr. Hur thanked Assistant U.S. Attorneys Martin J. Clarke and Leo J. Wise, who are prosecuting the case.
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Former Assistant United States Attorney Pleads Guilty to Federal Theft ChargeRead the Press Release
JACKSON, Tenn. – November 21, 2019 – Barbara Zoccola, 58, of Memphis, Tennessee, pleaded guilty today in U.S. District Court to a federal theft charge, announced U.S. Attorney Don Cochran for the Middle District of Tennessee. Zoccola was charged in a criminal Information filed on October 9, 2019, which resulted from an investigation by the Department of Justice’s Office of Inspector General into Zoccola’s time and attendance records.
Today, Zoccola entered into a plea agreement, in which she admitted to the conduct alleged in the single-count Information – that on October 25, 2018, she certified her time and attendance records for the pay period, falsely reporting that she had worked full 8-hour days on four specific days. Zoccola failed to report nine hours of leave time that she had taken on the same days. Zoccola also admitted that between June 2018 and June 2019, she submitted additional certifications in which she failed to report other leave time, which allowed her to accrue additional leave time that she was not entitled to. Zoccola admitted that the value of the unreported leave time was between $6,500 and $15,000.
The plea agreement required Zoccola to resign her position as an Assistant U.S. Attorney and to pay $10,000 in restitution to the Department of Justice. She also faces up to one year in prison when she is sentenced next year.
This case is being prosecuted by Assistant U.S. Attorneys Brent A. Hannafan and Chris Suedekum of the Middle District of Tennessee. U.S. District Judge William L. Campbell, Jr., of the Middle District of Tennessee, sitting by special designation, conducted the proceedings in the Jackson Branch of the Western District of Tennessee.
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Five Mexican Citizens Charged After Arrest in Investigation into Suspected Alien Smuggling in Glacier CountyRead the Press Release
GREAT FALLS—Five Mexican citizens who were arrested on November 17 in Glacier County by law enforcement investigating suspected alien smuggling appeared in court today on immigration-related charges, U.S. Attorney Kurt Alme said.
The five defendants were among a total of 19 suspected aliens who were picked up and transported to the Sweetgrass Border Patrol Station for processing.
Four of the defendants, Alberto Guillen-Gordillo, 22, Omero Banderas-Rodriguez, 39, Josue Bermudez-Lopez, 26, and Samuel Velasco-Tovar, 28, had an initial appearance on a criminal complaint before U.S. Magistrate Judge John T. Johnston. The complaint charges the four with illegal transport of aliens and with conspiracy to transport aliens. If convicted of the most serious crime, the defendants face a maximum 10 years in prison, a $250,000 fine and three years of supervised release.
A fifth defendant, Ma Mercedes Rivera-Gutierrez, 39, had an initial appearance on a criminal complaint charging her with illegal reentry. If convicted of the most serious crime, Rivera-Gutierrez faces a maximum two years in prison, a $250,000 fine and three years of supervised release.
All defendants were detained pending further proceedings.
Court documents filed in the case said that in October, law enforcement received information about suspicious room rental activity at a Cut Bank hotel by several Mexican nationals over approximately the prior six months. The investigation led Border Patrol agents to suspect a group of aliens was coming into the country illegally from Canada. On November 17, agents made near-simultaneous traffic stops of two SUVs at about 11:15 p.m. In the first vehicle, driven by Omero Banderas-Rodriguez, were nine passengers. During the stop of the second vehicle, all occupants ran into a nearby field. Agents found eight individuals in the field within a few minutes. One of the persons arrested in the field was Josue Bermudez Lopez. Another defendant, Alberto Guillen-Gordillo, was arrested at the hotel room where the subjects had been staying.
Border Patrol agents arrested Rivera-Gutierrez during a search of the field for occupants who ran from the vehicle.
Assistant U.S. Attorneys Jeff Starnes, Paulette Stewart and Ethan Plaut are prosecuting the case, which was investigated by the U.S. Border Patrol and the Glacier County Sheriff’s Office.
The complaints are merely accusations and the defendants are presumed innocent until proven guilty.
Pacer case reference. MJ-19-82 and MJ-19-83.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Five Aliens Indicted on Illegal Reentry Charges and Illegal and Unlawful Alien in Possession of a FirearmRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned indictments charging FELIX ANTONIO JUAREZ-ANTUNEZ, age 35, of Honduras, LIDIO GOMEZ-GOMEZ, age 49, of Mexico, EDUARDO AGUILAR-ARELLANO, age 35, of Mexico, and JOSE CENTENO-ANGEL, age 31, of Mexico with Illegal Reentry of a Deported Alien.
Additionally, the grand jury returned an indictment charging JOSE GABRIEL VALLEJO-HERNANDEZ, age 51, of Mexico, with illegal and unlawful alien in possession of a firearm.
If convicted of illegal reentry of a deported alien, JUAREZ-ANTUNEZ, previously deported twice and found in Wake County, would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
If convicted of illegal reentry subsequent to a felony conviction (death by motor vehicle), GOMEZ-GOMEZ, previously deported twice and found in Sampson County, would face maximum penalties of ten years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
AGUILAR-ARELLANO, previously deported and found in Johnston County, is alleged to have been previously removed subsequent to an aggravated felony conviction (second degree rape) and CENTENO-ANGEL, previously deported and found in Wake County, is alleged to have been previously removed subsequent to an aggravated felony conviction (accessory after the fact to kidnapping). Therefore, if convicted, he would face a maximum imprisonment term of 20 years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
If convicted of illegal and unlawful alien in possession of a firearm, VALLEJO-HERNANDEZ, found in Columbus County, would face maximum penalties of 10 years imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The cases are being investigated by ICE’s Enforcement and Removal Operations and Homeland Security Investigations.
Federal inmate pleads guilty to using a cell phone from prison to post to videos to FacebookRead the Press Release
ATLANTA – Inmate Brian J. Wilson pleaded guilty to using a contraband cell phone to post photographs and videos onto Facebook from his cell in the U.S. Penitentiary-Atlanta (“USP Atlanta”).
“Inmates who use a contraband cell phone should ask themselves whether having a cell phone in prison is worth spending more time in prison,” said U.S. Attorney Byung J. “BJay” Pak. “The federal government is committed to limiting the explosion of contraband cell phones in federal prisons.”
“The boldness of this inmate to live stream for the world to see is an example of how widespread contraband cell phones are in our prisons,” said Special Agent in Charge of FBI Atlanta, Chris Hacker. “Many times they are used to further criminal activities and can create serious security concerns. That is why the FBI will continue to use every resource available to stop their proliferation.”
According to U.S. Attorney Pak, the charges, and other information presented in court – the USP Atlanta is a medium-security federal prison for male inmates operated by the Federal Bureau of Prisons. The Cell Phone Contraband Act of 2010 made it a crime for Federal inmates to possess or use cell phones while incarcerated.
On March 24, 2015, Wilson was sentenced to ten years of imprisonment after sustaining a conviction for possession of a stolen firearm. Since approximately May 3, 2018, Wilson has been an inmate at USP Atlanta.
As an inmate, Wilson possessed a cell phone in USP Atlanta. Between late-May and July 2019, Wilson used his cell phone to post images to and to live stream content onto the social media platform Facebook from his prison cell. In fact, Wilson posted a “selfie” photograph onto his Facebook account of himself holding a cell phone while in his prison cell. Ironically, in a live stream video, Wilson warned people that federal cases have significant prison sentences, lamenting that “federal law ain’t playing” because “the United States will lock you … up” if you are convicted of a federal crime.
Prior to his guilty plea, Wilson was scheduled to be released from custody on November 28, 2022. Under federal law, however, inmates convicted of possessing contraband in prison must receive consecutive (or additional) prison time after their original sentence is completed.
On April 29, 2019, Brian J. Wilson, 32, of Atlanta, was charged via criminal information with possessing a contraband cell phone in prison.
The FBI and the Bureau of Prisons are investigating this case.
Assistant U.S. Attorneys Jeffrey W. Davis, Chief of the Public Integrity and Special Matters Section, and Carolyn Cain Burch are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Fairfield Man Indicted After Brandishing a Firearm During a Robbery in Solano CountyRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment today against Antonio Tawan Bankhead, 31, of Fairfield, charging him with being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Oct. 11, police responded to a report of a man robbed at gunpoint in Laurel Creek Park in Fairfield. Police located the victim, who said that three men approached him in the park and started taking his belongings, including his cellphone, pants, and shoes. The victim said that Bankhead pointed a gun at him and asked his two accomplices, “Should I shoot him?” After the victim called 911, police responded to the scene and located the three suspects. Bankhead led police on a foot pursuit through the park, but was apprehended in a nearby neighborhood. Afterwards, police found a gun that Bankhead is alleged to have discarded during the chase. The gun had an extended magazine loaded with 30 rounds of ammunition and one round in the chamber. Bankhead cannot lawfully possess firearms or ammunition because he has previously been convicted of three felony offenses. In addition, when this offense took place, Bankhead was on federal probation for illegally possessing a firearm in 2014.
This case is the product of an investigation by the Fairfield Police Department with assistance from the FBI’s Solano County Violent Crimes Task Force and the Solano County District Attorney’s Office.
If convicted, Bankhead faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
Essex County Man Charged with Identity Fraud and Laundering over $20 Million in Illegal Drug ProceedsRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was charged today for his role in a multi-million dollar money laundering conspiracy and for using a stolen identity in furtherance of the scheme, U.S. Attorney Craig Carpenito announced.
Edwin Deleon-Batista, 36, of Newark, is charged by complaint with one count of conspiracy to launder drug proceeds and one count of identity fraud. Deleon-Batista is scheduled to make his initial appearance this afternoon before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court.
According to documents filed in this case and statements made in court:
Over an extended period, Deleon-Batista conspired with other individuals with close ties to drug trafficking organizations to pick up millions of dollars in cash drug proceeds in New Jersey and New York and launder the money by using it to purchase cashier’s checks at local bank branches. The checks were made payable to individuals and companies specified by conspirators with close ties to the drug trafficking organizations. Converting the drug proceeds to cashier’s checks was Deleon-Batista’s way to hide the nature and source of the illegal funds and avoid scrutiny by law enforcement and banks. Between March 2018 and March 2019, Deleon-Batista converted over $13 million in United States currency into cashier’s checks at banks in New Jersey, New York, and elsewhere. Deleon-Batista received a fee of approximately 1 percent of the amount he laundered.
Deleon-Batista was previously arrested on federal money laundering charges in New York in April 2019. Soon after his arrest, Deleon-Batista began using a stolen identity in order to continue his money laundering activities. Specifically, Deleon-Batista illegally acquired a Florida driver’s license with his own photograph but with someone else’s name and address. He then used this fraudulent license to open several bank accounts, which he then used as a means to convert over $10 million in additional cash drug proceeds into cashier’s checks at bank branches in New Jersey, New York, and Florida over a five-month period.
The charge of money laundering carries a maximum penalty of 20 years in prison and a fine of $500,000 or twice the amount involved in the offense, whichever is greater. The charge of identity fraud carries a maximum prison sentence of 15 years and a $250,000 fine.
U.S. Attorney Carpenito credited special agents and task force officers of the U.S. Drug Enforcement Administration, New Jersey Division, under the direction of Special Agent in Charge Susan A. Gibson and the New York Division, under the direction of Special Agent in Charge Ray Donovan; special agents and task force officers of IRS - Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur; and the Morristown, New Jersey, police department, under the direction of Acting Police Chief Darnell Richardson with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Jonathan M. Peck of the Criminal Division in Newark.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Eight Charged in Wide-Ranging Fentanyl, Heroin and Cocaine ConspiracyRead the Press Release
BOSTON – Eight individuals from Fitchburg and Gardner were charged with participating in a wide-ranging fentanyl, heroin and cocaine trafficking conspiracy.
Pedro Baez, 50, of Fitchburg; Anthony Baez, 31, of Fitchburg; Amanda Ford, 33, of Fitchburg; Monica Troche, 27, of Fitchburg; Branny Taveras, 37, of Fitchburg; Shastaalena Blair, 39, of Fitchburg; Jessica Hughes 28, of Gardner; and Valerie Lucier, 30, of Fitchburg, were charged in an indictment unsealed today with conspiracy to distribute and possession with intent to distribute fentanyl, heroin, cocaine and cocaine base. Anthony Baez and Troche were also each indicted on various drug possession and distribution charges.
Hughes, who is currently incarcerated on state charges, will be transferred to federal custody. The remaining defendants were arrested this morning.
The charge of conspiracy to distribute fentanyl, heroin, cocaine, or cocaine base provides for a sentence of up to 20 years in prison, at least three years of supervised release and a fine of up to $1 million. The other drug trafficking charges provide for a sentencing range of five years to a lifetime in prison, at least four years of supervised release and a fine of between $5 million to $10 million. Due to a previous conviction of a qualifying drug trafficking offense, Pedro Baez faces an enhanced mandatory minimum sentences. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement today. The case was investigated by the Organized Crime Drug Enforcement Task Force (OCDETF). The Fitchburg Police Department, U.S. Postal Inspection Service and the Lunenburg Police Department also provided valuable assistance. Assistant U.S. Attorney Alathea Porter of Lelling’s Narcotics and Money Laundering Unit are prosecuting the case.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Edwards Man Pleads Guilty to Methamphetamine TraffickingRead the Press Release
Jackson, Miss – Daniel Chad Parrette, of Edwards, pled guilty today before Chief U.S. District Judge Daniel P. Jordan to possessing methamphetamine with intent to distribute, announced U.S. Attorney Mike Hurst.
On March 30, 2018, MBN agents received information that Parrette was attempting to sell methamphetamine. Based upon this information, as well as the agents’ observations, agents made a traffic stop on Parrette’s truck and confronted Parrette. Agents searched Parrette’s ruck and found four individually wrapped bags of methamphetamine. In a subsequent interview, Parrette told agents that he wanted to sell the methamphetamine.
On April 3, 2019, Parrette was charged in a federal indictment with possession with intent to distribute a substance containing methamphetamine. He will be sentenced by Judge Jordan on February 21, 2020 and faces a statutory penalty of up to 20 years in prison and a $1,000,000 fine.
The case was investigated by the Mississippi Bureau of Narcotics and is being prosecuted by Assistant United States Attorney Bert Carraway.
Edmonds woman indicted for April 2018 arson at Highway 99 storeRead the Press Release
Seattle—An Edmonds, Washington, business owner was arrested today on an indictment charging her with arson and wire fraud related to the April 30, 2018, fire at her business, announced U.S. Attorney Brian T. Moran. CONNIE L. BIGELOW, 52, will make her initial appearance on the indictment at 2:00 today.
The indictment alleges that BIGELOW set fire to her business to collect insurance money as the store was struggling to make enough money to pay the rent. BIGELOW moved her business, CJN Miniatures LLC, into the building at 23030 Highway 99, in Edmonds in September 2017. The store maintained an inventory of miniatures and collectables for sale, consigned items on behalf of other individuals, and rented out space to other vendors. Between October 2017 and April 2018, the business fell behind in rental payments and payments to consigners. BIGELOW bounced checks as she over drafted her bank account.
BIGELOW carried an insurance policy with State Farm Fire and Casualty Company that covered up to $100,000 in loss of business personal property, as well as loss of income. The policy did not cover loss arising from arson.
The indictment alleges that BIGELOW set the fire underneath three Thomas Kinkade paintings worth thousands of dollars. On or about May 1, 2018, BIGELOW initiated a claim to State Farm for the losses arising from the fire. On May 3, 2018, BIGELOW communicated with the insurance agent via email as part of the wire fraud scheme. BIGELOW made false statements to law enforcement, as well as representatives of State Farm as part of the scheme to defraud.
Following the fire, BIGELOW reopened the store as “Miniatures & More” on 5th Avenue in Edmonds.
Arson is punishable by a mandatory minimum five years in prison and up to 20 years in prison. Wire fraud is punishable by up to 20 years in prison and a $250,000 fine.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), along with the Snohomish County Fire Marshals Office. The case is being prosecuted by Assistant United States Attorney Amy Jaquette.
Durant Woman Sentenced to 60 Months Probation, $20,000 Restitution for Theft from Indian Tribal OrganizationRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Nichole Marie Schell-Loper, age 43, of Durant, Oklahoma, was sentenced to 5 years of supervised release for Embezzlement And Theft From Indian Tribal Organizations, in violation of Title 18, United States Code, Section 1163. In addition to the standard rules and conditions of probation, Loper was ordered to pay $20,000.00 in restitution to the Choctaw Nation of Oklahoma in monthly installments beginning on December 20, 2019 and by surrendering 100% of any state and federal tax refunds. Loper was also ordered to not incur any additional charges on credit and not to open any new lines of credit without the prior approval of her probation officer.
The charges arose from an investigation by the Choctaw Nation Tribal Police. The Indictment alleged that from in or about January 2016, to in or about June 2018, in the Eastern District of Oklahoma, the defendant, stole, embezzled and knowingly and willfully converted to her own use monies in excess of $1,000.00 which had been entrusted to her custody and care as an employee of the Choctaw Nation of Oklahoma, an Indian tribal organization.
United States Attorney Brian J. Kuester said, “The defendant enriched herself with funds entrusted to her that were intended for those facing financial hardship. This sort of abuse of position to benefit oneself deprives those in genuine need of assistance and lessens the impact the victimized organization could have on the community. This sentence holds the defendant accountable and requires her to repay the funds she embezzled.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Sarah McAmis represented the United States.
District Man Sentenced to Seven-Year Prison Term for Committing Armed Robbery While on Supervised ReleaseRead the Press Release
WASHINGTON – Michael Jenkins, 29, of Washington, D.C., was sentenced today to seven years in prison for brandishing a firearm during a robbery over the July 4th weekend of 2019, announced U.S. Attorney Jessie K. Liu.
Jenkins pled guilty in September 2019, in the Superior Court for the District of Columbia to one count of armed robbery, which carries a mandatory-minimum sentence of five years in prison. The Honorable Robert Okun sentenced Jenkins. Upon release, he will be placed on supervised release for five years.
According to the government’s evidence, on July 6, 2019, Jenkins approached the victim outside of a gas station in the 900 block of Florida Avenue, Northwest. He brandished a firearm while demanding the victim’s belongings. The victim dropped his keys, which Jenkins picked up before driving away in the victim’s car. When Jenkins committed the armed robbery, he was on supervised release for a 2015 firearms-related conviction, and now will face revocation of his supervised release in that case.
In announcing the sentence, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department. She acknowledged the work of those who handled the case at the U.S. Attorney’s Office, including Paralegal Specialist Antoinette Sakamsa and Assistant U.S. Attorney Ethan Carroll, who investigated and prosecuted the case.
Department of Justice Announces the Probationary Re-Admission of Robeson County Sheriff’s Office into the Equitable Sharing Program Upon Completion of Today’s Asset Forfeiture TrainingRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. and the Department of Justice’s Criminal Division Money Laundering and Asset Recovery Section (MLARS) announce the probationary re-admission of the Robeson County Sheriff’s Office (RCSO) into the Department of Justice and Department of the Treasury’s Equitable Sharing Programs (Program). This probationary re-admission is pursuant to a Memorandum of Agreement (MOA) and the special conditions described therein. A copy of the MOA can be found
here .Today, MLARS and the United States Attorney’s Office for the Eastern District of North Carolina (USAO-EDNC) conducted mandatory training for personnel from the RCSO, Robeson County Board of Commissioners, and Robeson County Finance Office on asset forfeiture and equitable sharing. The MOA requires that this initial training be completed before the RCSO could participate in law enforcement activities where seizures for federal forfeiture are expected. With this requirement now satisfied, the Departments of Justice and Treasury have agreed to process sharing requests going forward subject to the requirements of the MOA.
The RCSO was deemed ineligible for participation in the Program following the federal criminal prosecutions by the USAO-EDNC of several members of the RCSO as part of the Organized Crime and Drug Enforcement Task Force Operation “Tarnished Badge,” and the RCSO’s failure to comply with Program policies and regulations. Recently, under the new leadership of Sheriff Burnis Wilkins, the RCSO made a request for readmission into the Program after years of ineligibility.
The Departments of Justice and Treasury believe that renewed collaboration and cooperation between the RCSO and federal law enforcement will strengthen law enforcement efforts to deter and punish criminal activity in Robeson County and the surrounding communities. Accordingly, a MOA was established for the purpose of:
- Setting forth the requirements and responsibilities of the RCSO, the Robeson County Board of Commissioners and the Finance Office for the probationary re-admission of the RCSO into the Program;
- Setting forth the requirements and responsibilities of the RCSO for participation with federal authorities in federal investigations that may lead to the seizure and forfeiture of assets;
- Providing effective management for the RCSO probationary re-admission and participation in the Program;
- Promoting public confidence in the integrity of law enforcement; and,
- Protecting the Program against fraud, waste and abuse.
The MOA was entered into by the following agencies:
- U.S. Attorney’s Office for the Eastern District of North Carolina
- U.S. Department of Justice – Criminal Division’s Money Laundering and Asset Recovery Section (MLARS)
- Federal Bureau of Investigation
- Drug Enforcement Administration
- Bureau of Alcohol, Tobacco, Firearms and Explosives
- Department of the Treasury – Executive Office for Asset Forfeiture (TEOAF)
- Department of Homeland Security, Homeland Security Investigations
- County of Robeson, North Carolina
- Robeson County Sheriff’s Office
- Robeson County Board of Commissioners
- Robeson County Finance Office
The RCSO’s participation with federal authorities and with the Program will be for a probationary period of five years from the effective date of the MOA, and subject to the additional terms and conditions specified in the MOA.
For more information about the Department of Justice’s Equitable Sharing Program, see /media/1044326/dl?inline.
Dallas Man Found with 10 Machineguns Charged with Gun CrimesRead the Press Release
A federal grand jury indicted a Dallas man for gun and drug crimes after he was discovered with multiple unlawful machineguns, as well as heroin and cocaine, following an investigation by the ATF, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Ramon Navarro, III – aka Trae Alvarez – was charged with four counts of possession of an unregistered firearm and eight counts of distribution of a controlled substance. He has been ordered detained pending trial.
According to court documents, Mr. Navarro, 21, allegedly possessed at least four standalone machinegun conversion sears, three-piece devices designed to convert semiautomatic weapons into machineguns.
He also allegedly possessed at least six Glock pistols with incorporated sears, which effectively transformed the Glocks into machineguns.
“This defendant attempted to circumvent our nation’s gun laws by converting legal firearms into unlawful machineguns,” said U.S. Attorney Nealy Cox. “Machineguns have no place on the streets of Dallas. Using federal firearm laws to reduce gun violence is among the Justice Department’s highest priorities.”
“When firearms and drugs can be readily obtained in an underground market, the challenge of reducing violence in our communities is much greater,” stated ATF Dallas Field Division Special Agent in Charge Jeffrey C. Boshek II. “Individuals who bypass regulations designed to protect our communities fuel the devastation possible when firearms end up in the hands of prohibited persons as well as impede justice for the victims.”
Unlike semiautomatic firearms, machineguns – weapons that can shoot more than one shot, without manual reloading, by single function of the trigger – are generally unlawful for civilians under the National Firearms Act.
In a criminal complaint filed in October, an undercover ATF agent alleged that Mr. Navarro sold him at least three of the converted Glocks for roughly $1,500 apiece, and even demonstrated one firearm’s functionality as a machinegun.
All of the machinegun conversion sears in Mr. Navarro’s possession lacked serial numbers and were of unknown origin.
An indictment is a formal accusation of criminal conduct, not evidence, and the defendant is presumed innocent until proven guilty in a court of law.
The Bureau of Alcohol, Tobacco, Firearms & Explosives conducted the investigation with the assistance of the Dallas Police Department. Assistant U.S. Attorney Linda Requénez is prosecuting the case.
This case was prosecuted under Project Guardian, a Department of Justice initiative aimed at reducing gun violence by enforcing federal firearm laws through coordination between the federal government and state and local law enforcement.
D.C. Man Convicted of Unlawful Possession of Firearm and AmmunitionRead the Press Release
WASHINGTON – Asa Lea, 28, of Washington, D.C. was found guilty by a jury today on charges related to his unlawful possession of a firearm and ammunition after he had previously been convicted of a felony. The announcement was made by U.S. Attorney Jessie K. Liu and Ronald A. Pavlik, Jr., Chief of the Metro Transit Police Department (MTPD).
Lea was convicted following a jury trial in the United States District Court for the District of Columbia. Lea faces a prison sentence of up to ten years of imprisonment. Sentencing is scheduled for February 6, 2020, before the Honorable Christopher R. Cooper.
According to the government’s evidence, in March 2019, MTPD officers attempted to write Lea a citation for public consumption of marijuana. After Lea provided a false identification to the officers and attempted to flee, officers located a .25 caliber semi-automatic firearm in his front jacket pocket. The firearm, which was loaded with seven rounds of ammunition, had an obliterated serial number.
This case was investigated and prosecuted as part of the Department of Justice’s Project Safe Neighborhoods Program (“PSN”) and Project Guardian, which are nationwide crime-reduction strategies aimed at reducing violent crime and gun crime. PSN and Project Guardian involve a comprehensive approach to public safety that includes investigating and prosecuting crimes along with prevention and reentry efforts. In the District of Columbia, U.S. Attorney Liu coordinates PSN and Project Guardian efforts in cooperation with various federal, state, and local law enforcement officials.
In announcing the verdict, U.S. Attorney Liu expressed her appreciation to the Metro Transit Police Department for their work on the case. She also acknowledged the work of Paralegal Specialist Candace Battle and Legal Assistant Peter Gaboton of the U.S. Attorney’s Office, AUSA Vincent Caputy, who investigated and indicted the case, and AUSAs Andrea Duvall and Nicole Battle, who prosecuted and tried the case.
Convicted Felon with Illegal Guns: Sentenced to 210 Months in PrisonRead the Press Release
MACON, Ga. – A felon with eight prior convictions, caught running an underground illegal gun trade while out on parole, was sentenced to 210 months in prison, said U.S. Attorney Charles “Charlie” Peeler. There is no parole in the federal system. Ronnie Lee Hughes, 39, of Griffin, Georgia was sentenced on Wednesday, November 20, 2019 by U.S. District Judge Marc Treadwell to 210 months of imprisonment and five years supervised release. Defendant Hughes was found guilty of possession of a firearm by a convicted felon by a federal jury on July 17, 2019. Defendant Hughes has eight prior felony state convictions beginning in 1999, including four separate entering auto convictions, three separate burglary convictions and one theft by taking conviction. His past crimes occurred in Upson, Laurens, Pike and Monroe counties, all charged in Superior Court. His last conviction was in Monroe County Superior Court in December 2008 for burglary. Defendant Hughes was on parole when he was taken into custody by Lamar County deputies on August 31, 2016, arrested during an undercover operation into his illegal gun trade.
“The penalty is steep for convicted felons found with guns in Middle Georgia,” said U.S. Attorney Charlie Peeler. “Stopping the underground illegal gun trade is crucial in our efforts to remove guns from dangerous persons and decrease violent crime in our communities. We are working closely with our law enforcement partners to investigate and arrest felons with guns, and we will continue to prosecute these offenders.”
A Confidential Informant (CI) told Lamar County deputies that Mr. Hughes, a convicted felon on parole, was selling guns. Lamar County deputies worked with the CI to set up a meeting on August 31, 2016, with the intent of the CI to arrange a purchase of the guns from Mr. Hughes. In one conversation between the CI and Mr. Hughes, the defendant warned that the buyer arranged by the CI “better not be a cop” because he was a convicted felon and it was illegal for him to sell guns. At the appointed time and place for the sale, Lamar County deputies met Mr. Hughes and took him into custody, seizing four weapons and ammunition.
This prosecution is a part of Project Safe Neighborhoods, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Lamar County Sheriff’s Department and the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorneys William Keyes and Paul McCommon are prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Columbia Man Pleads Guilty to Arson at Planned Parenthood ClinicRead the Press Release
JEFFERSON CITY, Mo. – A Columbia, Mo., man pleaded guilty in federal court today to the arson at the Columbia Health Center (operated by Planned Parenthood Great Plains) on Feb. 10, 2019.
Wesley Brian Kaster, 42, pleaded guilty before U.S. Magistrate Judge Willie J. Epps Jr. to one count of maliciously using explosive materials to damage a building owned by an organization that receives federal financial assistance, and one count of violating the Freedom of Access to Clinic Entrances Act. Kaster has remained in federal custody without bond since his arrest on March 2, 2019.
By pleading guilty today, Kaster admitted that he manufactured a Molotov cocktail on Feb. 10, 2019. On the same day, he broke the glass in the north entry door of the Columbia Health Center at 711 N. Providence Road and threw the Molotov cocktail into the facility. At approximately 4:10 a.m., the Columbia Fire Department arrived on the scene, investigated the damage caused by the explosive device, and collected evidence.
Kaster admitted today that he took these actions because Planned Parenthood provided reproductive health services at the facility.
Under federal statutes, Kaster is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 21 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Columbia, Mo., Police Department, the Missouri State Highway Patrol, and the FBI.
Citizen of Mexico Sentenced to 2 Years in Prison for Third Illegal Reentry ConvictionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that FABIOLA BASTIAN MOJICA, 39, a citizen of Mexico recently residing in Stamford, was sentenced today U.S. District Judge Robert N. Chatigny in Hartford to 24 months of imprisonment, followed by three years of supervised release, for illegally reentering the U.S. after being deported.
According to court documents and statements made in court, in May 2003, Bastian Mojica, who at the time was a lawful permanent resident of the U.S., was convicted in Stamford superior court of possession of a hallucinogen/marijuana. Bastian Mojica’s lawful permanent residence status was revoked and, in November 2003, she was removed to Mexico.
In October 2005, Bastian Mojica was arrested by Greenwich Police and was subsequently convicted in state court of evading responsibility resulting in injury/property damage, and possession of marijuana. She was also convicted in federal court of reentry of a removed alien and sentenced to 15 months of imprisonment. In January 2008, Bastian Mojica was removed to Mexico.
In July 2008, Bastian Mojica was arrested in Stamford. She was again removed to Mexico in August 2008.
In January 2010, Bastian Mojica was apprehended by the U.S. Border Patrol in Columbus, New Mexico. She was subsequently charged in the District of New Mexico with illegal reentry of a removed alien, and with violating the conditions of her supervised release related to her prior conviction for illegal reentry. She was convicted of both offenses and, following the completion of an 18-month sentence, was removed to Mexico in April 2011.
On October 23, 2018, Bastian Mojica was arrested by Stamford Police for a motor vehicle violation, and was subsequently charged with failure to appear. On March 7, 2019, after her identity was confirmed through a fingerprint analysis, she was arrested on a federal criminal complaint charging her with illegal reentry.
Bastian Mojica has been detained since her federal arrest. On May 7, 2019, she pleaded guilty to illegal reentry by a removed alien
Bastian Mojica will be removed to Mexico at the completion of her prison term.
The investigation was conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement. The case was prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Chinese National Who Worked at Monsanto Indicted on Economic Espionage ChargesRead the Press Release
ST. LOUIS– Haitao Xiang, 42, formerly of Chesterfield, Missouri, was indicted today by a federal grand jury on one count of conspiracy to commit economic espionage, three counts of economic espionage, one count of conspiracy to commit theft of trade secrets, and three counts of theft of trade secrets.
According to the indictment, Xiang was employed by Monsanto and its subsidiary, The Climate Corporation, from 2008 to 2017, where he worked as an imaging scientist. Monsanto and The Climate Corporation developed a digital, on-line farming software platform that was used by farmers to collect, store, and visualize critical agricultural field data and increase and improve agricultural productivity for farmers. A critical component to the platform was a proprietary predictive algorithm referred to as the Nutrient Optimizer. Monsanto and The Climate Corporation considered the Nutrient Optimizer a valuable trade secret and their intellectual property.
“The indictment alleges another example of the Chinese government using Talent Plans to encourage employees to steal intellectual property from their U.S. employers,” said Assistant Attorney General for National Security John C. Demers. “Xiang promoted himself to the Chinese government based on his experience at Monsanto. Within a year of being selected as a Talent Plan recruit, he quit his job, bought a one-way ticket to China, and was caught at the airport with a copy of the company's proprietary algorithm before he could spirit it away.”
“The revolutionary technology at the core of this case represents both the best of American ingenuity and why the Chinese government is so desperate to steal it for themselves” said Assistant Director John Brown. “The FBI is committed to working with a host of partners to stop individuals, like the defendant in this case, from engaging in economic espionage to acquire information and technology for a foreign government that is either unable or unwilling to compete on a level playing field. Our country’s economic security is our national security, and the FBI will always do everything in our power to protect it.”
“Stealing trade secrets can destroy a business,” said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. “When done at the behest of a foreign government, it threatens our nation’s economic security because it robs our companies of their market share and competitive advantage.”
In June 2017, the day after leaving employment with Monsanto and The Climate Corporation, Xiang bought a one-way plane ticket to China. Before he could board his flight, Xiang was intercepted at the airport by federal officials who seized copies on the Nutrient Optimizer.
If convicted, each espionage charge carries up to 15 years in prison and a $5,000,000 fine. Each theft of trade secrets charges carries up to 10 years in prison and a $250,000 fine.
The FBI is investigating this case. Assistant U.S. Attorney Matthew Drake and Trial Attorneys Heather Schmidt and Heather Alpino in the Counterintelligence and Export Control Section of the National Security Division are handling this case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Chinese National Who Worked at Monsanto Indicted on Economic Espionage ChargesRead the Press Release
Haitao Xiang, 42, formerly of Chesterfield, Missouri, was indicted today by a federal grand jury on one count of conspiracy to commit economic espionage, three counts of economic espionage, one count of conspiracy to commit theft of trade secrets and three counts of theft of trade secrets.
According to the indictment, Xiang was employed by Monsanto and its subsidiary, The Climate Corporation, from 2008 to 2017, where he worked as an imaging scientist. Monsanto and The Climate Corporation developed a digital, on-line farming software platform that was used by farmers to collect, store, and visualize critical agricultural field data and increase and improve agricultural productivity for farmers. A critical component to the platform was a proprietary predictive algorithm referred to as the Nutrient Optimizer. Monsanto and The Climate Corporation considered the Nutrient Optimizer a valuable trade secret and their intellectual property.
“The indictment alleges another example of the Chinese government using Talent Plans to encourage employees to steal intellectual property from their U.S. employers,” said Assistant Attorney General for National Security John C. Demers. “Xiang promoted himself to the Chinese government based on his experience at Monsanto. Within a year of being selected as a Talent Plan recruit, he quit his job, bought a one-way ticket to China, and was caught at the airport with a copy of the company's proprietary algorithm before he could spirit it away.”
“The revolutionary technology at the core of this case represents both the best of American ingenuity and why the Chinese government is so desperate to steal it for themselves,” said Assistant Director John Brown. “The FBI is committed to working with a host of partners to stop individuals, like the defendant in this case, from engaging in economic espionage to acquire information and technology for a foreign government that is either unable or unwilling to compete on a level playing field. Our country’s economic security is our national security, and the FBI will always do everything in our power to protect it.”
“Stealing trade secrets can destroy a business,” said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. “When done at the behest of a foreign government, it threatens our nation’s economic security because it robs our companies of their market share and competitive advantage.”
In June 2017, the day after leaving employment with Monsanto and The Climate Corporation, Xiang bought a one-way plane ticket to China. Before he could board his flight, Xiang was intercepted at the airport by federal officials who seized copies of the Nutrient Optimizer.
If convicted, each espionage charge carries up to 15 years in prison and a $5,000,000 fine. Each theft of trade secrets charges carries up to 10 years in prison and a $250,000 fine.
The FBI is investigating this case. Assistant U.S. Attorney Matthew Drake and Trial Attorneys Heather Schmidt and Heather Alpino in the Counterintelligence and Export Control Section of the National Security Division are handling this case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Chicago Pharmacy Technician Sentenced to 5 Years in Prison for Stealing Opioids and Selling Them for ProfitRead the Press Release
CHICAGO — A former technician at a Chicago pharmacy has been sentenced to five years in federal prison for stealing thousands of pills of hydrocodone and selling them for a profit.
ELIZABETH CRUZ worked at Allcare Discount Pharmacy, located in the 2700 block of West North Avenue in Chicago. From October 2015 to December 2017, Cruz and a co-defendant, JACQUELINE GREEN, conspired to steal approximately 56,108 pills of hydrocodone and sell them outside the pharmacy. Cruz and Green received at least $10,800 in proceeds from the sale of the stolen pills.
Cruz concealed the theft by falsifying the pharmacy’s inventory to make it look like the pills had either not been received from the distributor or had been dispensed to patients.
Cruz, 35, of Stone Park, pleaded guilty earlier this year to one count of conspiracy to possess a controlled substance with the intent to deliver. U.S. District Judge Ronald A. Guzman imposed the prison sentence Wednesday in federal court in Chicago.
“The opioid epidemic has inflicted an unprecedented toll of suffering in Chicago and throughout the country,” said John R. Lausch, Jr., United States Attorney for the Northern District of Illinois. “The defendants in this case contributed to this crisis by making opiates available on the street to individuals who otherwise would not have access to them. Our office will continue to actively attack the opioid crisis from all investigative and prosecutorial angles.”
The investigation was conducted by the Chicago Field Division of the U.S. Drug Enforcement Administration.
“When trusted pharmacy employees illegally divert powerful and addictive pain medications for misuse, they put individuals and their families at increased risk of drug dependence and overdose,” said Robert J. Bell, Special Agent-in-Charge of the DEA Chicago Field Division. “This strong prison sentence is recognition of the seriousness of the opioid crisis. The DEA will continue to aggressively bring all resources to bear, unilaterally and in cooperation with prosecutors and law enforcement partners, to save lives in the midst of the opioid epidemic.”
Green, of Chicago, pleaded guilty to the same charge as Cruz. Judge Guzman in July sentenced Green to a year and a day in federal prison.
The government in this case was represented by Assistant U.S. Attorneys Nani M. Gilkerson and David Rojas.
Chicago Drug Dealers Convicted by Jury on Multiple Distribution CountsRead the Press Release
United States Attorney Ron Parsons announced that Maurice Bellafonta Cathey, a/k/a “Short”, age 39, of Chicago, Illinois, was found guilty of two counts of Conspiracy to Distribute a Controlled Substance, Distribution of a Controlled Substance Resulting in Death, and two counts of Distribution of a Controlled Substance Resulting in Serious Bodily Injury, on November 20, 2018, as a result of a federal jury trial in Sioux Falls, South Dakota.
In addition, Corrod Leon Phillips, age 28, of Chicago, Illinois, was found guilty of two counts of Conspiracy to Distribute a Controlled Substance and two counts of Distribution of a Controlled Substance Resulting in Serious Bodily Injury, as a result of the same federal jury trial.
“These defendants are the authors of one of the worst public health crises that this area has ever seen,” said U.S. Attorney Parsons. “They are responsible for importing and selling most of the heroin laced with fentanyl that caused so many overdoses in Sioux Falls last year. The suffering, death, and destruction that they have visited upon so many families in this community is immeasurable. We are forever grateful to the members of federal, state, and local law enforcement who brought these misery profiteers to justice and to the federal jury who rendered its unanimous verdict in this critically important case.”
Cathey faces a mandatory minimum penalty of life imprisonment, while Phillips faces a mandatory minimum sentence of 20 years in prison.
Phillips was indicted by a federal grand jury on June 6, 2018. Cathey was indicted by a federal grand jury on July 10, 2018. Their cases were joined by a second superseding indictment on October 10, 2018.
On January 5, 2018, first responders reported to a fatal overdose of a 22-year-old man at an apartment in Sioux Falls. The victim was unresponsive and attempts to revive him were unsuccessful. A friend of the victim who was with him said that the victim had injected himself with heroin. The victim obtained heroin from his friend that had been distributed by Cathey. Minnehaha County Coroner Dr. Kenneth Snell ruled that the victim’s cause of death was heroin and cyclopropyl fentanyl toxicity.
On February 9, 2018, first responders were dispatched to a fast food restaurant on South Minnesota Avenue for a report of cardiac arrest, where they found a 20-year-old woman who was unconscious and not breathing due to a heroin overdose. The victim was revived by first responders with Narcan. Cathey sold the heroin to the victim minutes before her overdose.
On April 23, 2018, first responders were dispatched to an overdose call at an apartment in Sioux Falls. First responders encountered a 24-year-old man who had overdosed on heroin laced with tramadol, 4-ANPP, and fentanyl, ultimately distributed by Cathey and Phillips. The victim was unconscious and not breathing when first responders arrived, but was revived by Narcan.
On May 16, 2018, a 23-year-old man overdosed on heroin in the bathroom of a grocery store in Sioux Falls. First responders found him unconscious and breathing poorly, and were able to awaken him with Narcan. The victim said he purchased the heroin from Phillips less than an hour before his overdose.
Testimony at trial revealed that multiple other overdoses, including at least one additional death, were caused by heroin distributed by Cathey and Phillips.
The Sioux Falls Area Drug Task Force executed multiple search warrants during the investigation at residences connected to Cathey and Phillips. During the execution of these warrants, SFADTF members located dozens of bindles of crack cocaine and heroin, thousands of dollars in U.S. Currency, and numerous items of drug distribution paraphernalia.
This case was investigated by the Drug Enforcement Administration, the Sioux Falls Area Drug Task Force, the Sioux Falls Police Department, and the United States Postal Inspection Service. Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
Presentence investigation reports were ordered and sentencing dates have not been set yet. The defendants were remanded to the custody of the U.S. Marshals Service.
Chelsea Man Indicted for Bank RobberyRead the Press Release
BOSTON – A Chelsea man was indicted today by a federal grand jury in Boston for the September 2019 robbery of a branch of the TD Bank in Chelsea.
Edward Robert Rezendes, 66, was indicted on one count of bank robbery. Rezendes, who is currently on supervised release for an unrelated bank robbery, was charged by criminal complaint in U.S. District Court earlier this month.
According to charging documents, on Sept. 10, 2019, Rezendes entered the bank, handed a teller a demand note, and left the bank with approximately $3,760.
The charging statute provides for a sentence of up to 10 years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Chelsea Police Chief Brian Kyes made the announcement made the announcement. Assistant U.S. Attorney Adam W. Deitch of Lelling’s Major Crimes 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.
Checotah Man Sentenced to 94 Months for Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Joshua Dewayne Funburg, age 34, of Checotah, Oklahoma, was sentenced to 94 months’ imprisonment and 3 years of supervised release for Felon In Possession Of Firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). The charges arose from an investigation by the Checotah Police Department, the McIntosh County Sheriff’s Office, and the Federal Bureau of Investigation.
The Indictment alleged that on or about February 10, 2019, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, knowingly possessed in and affecting commerce, a Kel-Tec CNC Industries Inc., Model P-32, .32 ACP caliber semi-automatic pistol, a firearm which had been shipped and transported in interstate commerce.
United States Attorney Brian J. Kuester said, “The defendant has a significant criminal history including multiple felony convictions, yet he possessed a firearm. This office and our federal law enforcement partners will continue to utilize resources and federal law to assist state, local, and tribal agencies in their ongoing efforts to combat violent crime. Working together, we will reduce violent crime.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Dean Burris represented the United States.
California Resident Pleads Guilty to Telemarketing Conspiracy to Defraud U.S. ConsumersRead the Press Release
On Nov. 21, 2019, Angel Armando Adrianzen, 45, of California pleaded guilty to conspiracy to commit mail fraud and wire fraud for partnering with call centers in Peru that took money from U.S. Spanish-speaking victims through lies and threats. Adrianzen was arrested on Sept. 16 and has remained incarcerated since then.
Assistant Attorney General Jody Hunt, U.S. Attorney Ariana Fajardo Orshan, and Miami Division Postal Inspector in Charge Antonio J. Gomez announced today’s guilty plea.
“The Department of Justice will vigorously pursue and prosecute fraudsters who prey on others through international telemarketing schemes,” said Assistant Attorney General Jody Hunt of the Department of Justice's Civil Division. “The Department’s Consumer Protection Branch, working alongside the Postal Inspection Service and our Transnational Elder Fraud Strike Force partners, will bring to justice those who threaten and defraud consumers.”
“Protecting vulnerable and elderly members of our community from international fraud schemes is a top priority of the Department of Justice. Individuals who defraud American consumers will be brought to justice, no matter where they are located,” said U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida.
“This case highlights the U.S. Postal Inspection Service’ commitment to investigating and combating these kinds of schemes that are designed to defraud innocent victims no matter where they operate from,” said Antonio J. Gomez, Postal Inspector in Charge of the Miami Division.
According to the court record, Adrianzen partnered with a series of Peruvian call centers that contacted U.S. consumers, many of whom were elderly and vulnerable, using Internet-based telephone calls. These callers claimed to be attorneys or government representatives, and falsely told victims that they had failed to pay for or receive delivery of products. The callers also falsely threatened victims with court proceedings, negative marks on their credit reports, imprisonment, or immigration consequences if they did not immediately pay for the purportedly delivered products and settlement fees. Many victims made monetary payments based on these baseless threats. Adrianzen received the victims’ payments and shipped products to the victims for these call centers, knowing that they used fraudulent and extortionate means to extract money from vulnerable victims.
Trial Attorneys Phil Toomajian and Joshua Rothman of the Department of Justice’s Consumer Protection Branch are prosecuting the case. The U.S. Postal Inspection Service investigated the case and the U.S. Attorney’s Office of the Southern District of Florida has provided critical assistance.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, this past March the Department announced the largest elder fraud enforcement action in American history, charging more than 260 defendants in a nationwide elder fraud sweep. The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
California Brothers Indicted in Pittsburgh on Drug and Gun ChargesRead the Press Release
PITTSBURGH, PENNSYLVANIA - Two former residents of Los Angeles, California, have been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
The six-count Indictment named brothers Daveion Laron Texas Sanders, age 26, and Deandre Moses Sanders, age 34, formerly of Los Angeles, California, as the defendants.
According to the Indictment, on or about July 11, 2019, the defendants conspired to possess with intent to distribute and possessed with intent to distribute 500 grams or more of cocaine and quantities of mixtures and substances containing detectable amounts of oxymorphone. The Indictment further alleges that the defendants unlawfully possessed a machinegun and an unregistered firearm in furtherance of a drug trafficking crime. According to the Indictment, on that same date, Deandre Moses Sanders also possessed with intent to distribute quantities of mixtures and substances containing detectable amounts of cocaine and oxymorphone.
The law provides for a maximum total sentence of not less than five years and up to life in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, the Pennsylvania Office of the Attorney General and the Pennsylvania State Police 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.
Bergen County Woman Admits to Illegally Using Individuals’ Identities to Obtain More Than $300,000Read the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, woman today admitted engaging in a fraudulent scheme through which over $300,000 in purchases were charged or attempted to be charged to victims’ financial accounts without authorization, U.S. Attorney Craig Carpenito announced.
Briana Burford, 25, of Fort Lee, New Jersey, pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to an information charging her with wire fraud.According to documents filed in the case and statements made in court:
From October 2018 through December 2018, Burford made four Bitcoin transactions. The Bitcoin were sent to accounts associated with carding websites, which are websites that engage in the trafficking of stolen or otherwise illegally obtained credit card, bank account and other personal identification information, as well as services and tools that one can use to engage in fraudulent activity.
The two telephone numbers used to make the four Bitcoin transactions, along with other telephone numbers, were used to inquire about bank accounts that were later compromised and subject to fraud. On Aug. 31, 2018, one of the telephone numbers was used to contact a bank and inquire about a specific bank account. Later that day, Burford, without authorization, charged a purchase of approximately $9,000 to that bank account.
The wire fraud count carries a maximum potential penalty of 20 years in prison and $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for March 4, 2020.
U.S. Attorney Carpenito credited special agents of U.S. Department of Homeland Security Investigations in Newark, under the direction of Special Agent in Charge Brian Michael, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
Defense counsel: Albert Y. Dayan Esq., Kew Gardens, New York
Baton Rouge, Louisiana Man Sentenced to 30 Months, $130,000 Restitution for Wire FraudRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Mike Douglas Nolan, age 59, of Baton Rouge, Louisiana, was sentenced to 30 months’ imprisonment and 3 years of supervised release for Wire Fraud, in violation of Title 18, United States Code, Section 1343. Nolan was also ordered to pay total restitution of $130,000.00. The charges arose from an investigation by the Federal Bureau of Investigation.
The Superseding Indictment alleged that from in or about June 2011, and continuing until in or about May 2012, the defendant devised and intended to devise, executed and attempted to execute, a scheme to obtain money by means of materially false and fraudulent pretenses, representations and promises.
United States Attorney Brian J. Kuester said, “The defendant’s fraudulent scheme deprived his victims of their hard earned income and savings. Today more than ever we must all be on the lookout for scam artists. The schemes may not all look the same, but fraudsters’ goals are – to steal as much money as they can from unsuspecting victims. In this case, the defendant was caught, is being held accountable, and will pay restitution. Unfortunately, often times the scammer’s identity cannot be ascertained and justice is not obtained. Our best defense is awareness and exercising extreme caution when someone is asking for you to give money or personal information.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Rob Wallace represented the United States.
Bank Insider and Two Others Arrested in Bank Bribery and Money Laundering ConspiracyRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced the arrest of VICTOR PHILLIPS, STEPHEN ODIBOH, and ANTHONY COLLIER for money laundering, money laundering conspiracy, and conspiracy to commit bank bribery. PHILLIPS, ODIBOH, and COLLIER were arrested in and around Atlanta, Georgia, and are expected to be presented this afternoon before U.S. Magistrate Judge Janet F. King in the Northern District of Georgia. Their case is assigned to U.S. District Judge J. Paul Oetken of the Southern District of New York.
U.S. Attorney Geoffrey S. Berman said: “As alleged, banker Victor Phillips conspired with two money launderers, Stephen Odiboh and Anthony Collier, to facilitate the laundering of what they all thought were the proceeds of criminal activity. Thanks to the FBI, all three are now in custody and facing serious criminal charges.”
FBI Assistant Director William F. Sweeney Jr. said: “It’s not bad enough that there are those who wish to launder money at the expense of other people and institutions, but when bank insiders join in to facilitate these transactions, it’s particularly troubling. This behavior won’t be tolerated, and the FBI will continue to investigate these illegal acts so long as criminals continue to conduct themselves in this way.”
According to the allegations in the Indictment unsealed today[1]:
Between at least June 2019 and September 2019, PHILLIPS, who is employed at an Atlanta-area branch of a national bank (“Bank-1”), opened bank accounts in the names of shell companies and fictitious persons in exchange for a percentage of the fraud proceeds laundered through the accounts. ODIBOH controlled one PHILLIPS-created account, and he and COLLIER agreed to launder $15,500 through it, hoping that this transaction that would be the first in a series laundering up to $2 million that they believed was stolen from a company by its employees. When the first payment arrived, they paid their bribe to PHILLIPS, divided a share for themselves, and returned half to the senders. In fact, the FBI sent the payment as part of a sting operation.
ODIBOH, 47, and COLLIER, 57, are each charged with one count of money laundering conspiracy and one count of money laundering, each of which carries a maximum punishment of 20 years in prison. ODIBOH, COLLIER, and PHILLIPS, 39, are each charged with one count of conspiracy against the United States, which carries a maximum punishment of five years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
The charges in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
Mr. Berman praised the outstanding investigative work of the FBI’s New York Money Laundering Investigation Squad.
This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Kiersten A. Fletcher, Jonathan E. Rebold, and Andrew A. Rohrbach are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Anchorage Sex Offender Arrested and Detained After Continued Child Exploitation Conduct While on House ArrestRead the Press Release
Alex AsinoAnchorage, Alaska – U.S. Attorney Bryan Schroder announced today that Alex Asino, 31, was arrested on Nov. 14, 2019, by the Federal Bureau of Investigation’s (FBI) Child Exploitation Task Force and was indicted by the Anchorage Grand Jury Wednesday, Nov. 20, in an eight count indictment alleging child sex trafficking, production and distribution of child pornography, and coercion and enticement of a minor.
In September of 2018, Asino was charged by the State of Alaska for delivering a controlled substance to a minor, sexual abuse of a minor, and possession of child pornography. He was subsequently released on bail and placed under house arrest. While on house arrest, Asino continued to engage in the sexual exploitation of children, according to a criminal complaint filed in this matter.
Per the complaint, Asino’s alleged conduct came to the attention of the FBI on Nov. 7, 2019. During online communications, Asino told an undercover law enforcement officer he had a sexual relationship with a 15-year-old female. Asino told the undercover law enforcement officer that he met the minor through a social media application. During his communications with the undercover officer, Asino sent images of the 15-year old victim’s body and face to the undercover officer, and then directed the undercover officer to a website where Asino had posted sexually explicit images of the victim. As a result of further investigation thus far, the FBI has identified one additional minor who was allegedly victimized by Asino.
According to the complaint, Asino would prey on his minor victims through online social media applications, such as, but not limited to, Snapchat, Tagged, and Whisper, and would meet minor females through pay dating websites. Asino allegedly distributed meth, cash, food, gifts, and cab fares to minors in exchange for sexual favors. Asino is also accused of posting images of child pornography and personal videos of sexual acts with minors on pornographic websites.
If the public has any further information regarding Asino’s activities,
please contact Anchorage FBI at (907) 276-4441.
The Federal Bureau of Investigation (FBI) and Anchorage Police Department (APD) as part of the FBI’s Child Exploitation Task Force conducted the investigation leading to the arrest in this case. This case is being prosecuted by Assistant U.S. Attorney Adam Alexander.
Anchorage Men Indicted on Drug Trafficking ChargesRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that Peter Michael Burno, 45, and Billy Bob Bell, III, 44, were indicted yesterday on drug trafficking charges.
The criminal complaint reports that on or about Oct. 31, 2019, to Nov. 6, 2019, Burno and Bell attempted to possess and distribute meth in Alaska. On Nov. 4, 2019, approximately 8.4 pounds of meth shipped from California was intercepted in Anchorage by U.S. Postal Inspection Service (USPIS) and local law enforcement agencies.
On Nov. 5, 2019, the package with a representative sample of meth was delivered to the recipient. Two men were waiting in a vehicle at the address and quickly took possession of the package. Law enforcement agencies followed the individuals to Wasilla, Alaska, where the package was opened. Several suspects were taken into custody. Text messages between Burno and the individuals who accepted the package indicated the individuals who accepted the package were retrieving it for Burno because he was in California. Burno was taken into custody when he returned to Anchorage on Nov. 6, 2019.
If convicted, Burno and Bell face a statutory maximum of 10 years to life in prison, a $10M fine, and 5 years to life of supervised release. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The U.S. Postal Inspection Service (USPIS) and the Alaska State Troopers (AST) conducted the investigation leading to the indictment in this case. This case is being prosecuted by Assistant U.S. Attorney Karen Vandergaw.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Alleged Cybercriminal Charged with Unauthorized Computer Intrusion, Wire Fraud, Securities Fraud and Other CrimesRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging Lithuanian national Vytautas Parfionovas with computer intrusion, securities fraud, money laundering, bank fraud and wire fraud, among other offenses. The charged crimes stem from a variety of criminal conduct between 2011 and 2018 in which Parfionovas gained access to U.S.-based computers, including email servers and computers belonging to U.S. financial institutions, in order to steal money from online bank accounts and securities brokerage accounts. Parfinovas was arrested in Ukraine on October 24, 2019, and was extradited to the United States on November 21, 2019.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.
“As alleged, the defendant and his co-conspirators stole millions of dollars from U.S. victims while sitting behind keyboards thousands of miles away,” stated United States Attorney Donoghue. “Cybercriminals are hereby on notice that no amount of distance or subterfuge will protect them, and that we and our law enforcement partners are committed to unmasking, arresting and prosecuting them.” Mr. Donoghue thanked the Prosecutor Generals Office of Ukraine, the FBI Legal Attaché’s Office in Kiev, the Department of Justice’s Office of International Affairs and the National Cyber Forensic Training Alliance for their assistance in the investigation and the defendant’s extradition.
“The world has become a much smaller place with the advent of the internet, and with that shrinking globe, the days of cyber criminals thinking because they're not in our country they can escape justice are over,” stated FBI Assistant Director-in-Charge Sweeney. “Our extraordinary partnerships allow the FBI to reach into many of the dark corners where these thieves feel invincible. If you violate our laws, we will make sure you pay the price.”
As charged in the criminal complaint, starting in January 2011, Parfionovas and his co-conspirators engaged in a long-running scheme to steal money through a variety of computer intrusions.
In one part of the scheme, Parfionovas and his co-conspirators allegedly obtained login information for victims’ securities brokerage accounts through various methods, including stealing that information from the server of a U.S. securities order management company to which the conspirators gained unauthorized access. The conspirators then used those accounts to steal money and conduct trades to their own benefit. Initially, conspirators accessed the victim brokerage accounts and transferred money from those accounts to other accounts under their control. After financial institutions began to block those unauthorized transfers, Parfionovas and his co-conspirators accessed other victim brokerage accounts without authorization, and placed unauthorized stock trades within those accounts while simultaneously trading profitably in the same stocks from accounts that they controlled. On or about February 22, 2016, Parfionovas explained this aspect of the scheme to a co-conspirator as follows: “I take some fraud logins. Do some s[_]t with stock . . . sometimes 2-3 in day . . . manipulation is 100%.” In this manner, Parfionovas and his co-conspirators realized financial gains while causing losses of more than $5.5 million.
In another part of the scheme, Parfionovas and his co-conspirators allegedly obtained login information for victim email accounts and accessed those accounts without authorization. The conspirators then sent email messages from those accounts to the victims’ financial advisers and requested wire transfers from the victims’ financial institutions to overseas bank accounts that the conspirators controlled. For example, in or about May 2013, Parfionovas and his co-conspirators obtained $50,000 from an investment account that belonged to U.S. victims, and Parfionovas directed the transfer of those funds to a series of bank accounts and ultimately to an individual in Kharkov, Ukraine, where Parfionovas was located. To defraud another victim, Parfionovas and his co-conspirators obtained control over a victim’s email account and used it to send written instructions—which falsely appeared to have been signed by the victim—to transfer $225,000 from one of the victim’s accounts.
If convicted, the defendant faces up to 30 years’ imprisonment for the money laundering charge, and a mandatory consecutive two-year sentence for the charge of aggravated identity theft.
The charges in the complaint announced today are allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s National Security and Cybercrime Section and the Business and Securities Fraud Section. Assistant United States Attorneys David K. Kessler, Mark E. Bini and Alexander Mindlin are in charge of the prosecution. The Justice Department’s Office of International Affairs of the Department’s Criminal Division provided significant assistance in securing the defendant’s extradition from Ukraine.
The Defendant:
VYTAUTAS PARFIONOVAS
Age: 32
Kiev, UkraineE.D.N.Y. Docket No. 19-MJ-883
Wednesday 20 November 2019
Wichita Man Sentenced in Sprint Store RobberyRead the Press Release
WICHITA, KAN. - A Wichita man was sentenced today to 162 months in federal prison for robbery, U.S. Attorney Stephen McAllister said.
Camarin McPherson, 26, Wichita, Kan., pleaded guilty to one count of robbery. In his plea, he admitted that on April 25, 2019, he brandished a firearm and held a clerk at gunpoint at the Sprint store at 530 S. West Street in Wichita. He hogtied the clerk and stole 54 Apple iPhones and 24 Samsung Galaxy phones.
McAllister commended the Wichita Police Department, the FBI and Assistant U.S. Attorney Matt Treaster for their work on the case. This case was prosecuted under Project Safe Neighborhoods, a Justice Department initiative to reduce violent crime.
Wasilla Felon and Person of Interest in Triple Homicide Detained and Indicted on Possession of 16 Rounds of AmmunitionRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that Juan Camarena, 51, of Wasilla, was indicted today with one count of felon in possession of ammunition. Camarena is a person of interest in the triple homicide in Wasilla, Alaska on Nov. 2, 2019. During the course of the triple homicide investigation, law enforcement agencies discovered and seized Camarena’s illegally possessed ammunition that was stored in his trailer.
Camarena’s six convictions in the District Court of California between 1987 and 2015 are listed in the indictment. Felonious behavior has spanned 34 years, comprising of, but not limited to, possession with intent to distribute meth, assault with a deadly weapon, felon in possession of a firearm, evading peace officer, possessing, manufacturing, and selling dangerous weapons, and street gang participation.
Between, on or about Nov. 1, 2019, to Nov. 11, 2019, Camarena illegally possessed twelve 9mm rounds located in the bathroom cubby, one .40 live round located in a magazine on the shelf in the bedroom, one 9mm live round located in the living room, one .45 live round located in the bedroom closet, and one 9mm live round located in a cubby behind the toilet.
If the public has any further information regarding Camarena’s activities,
please contact Alaska State Troopers at (907) 352-5401.
If convicted, Camarena faces a statutory maximum of 10 years in prison, a $250,000 fine, and 3 years supervised release. Camarena would also have to forfeit any firearm or ammunition involved in or used in knowing violation of the offense. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Alaska State Troopers (AST), the Alaska Criminal Intelligence Center, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Anchorage Police Department (APD), and the Federal Bureau of Investigation (FBI) conducted the investigation leading to the indictment in this case. This case is being prosecuted by Assistant U.S. Attorney Karen Vandergaw.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
U.S. Postal Service Employee Sentenced for EmbezzlementRead the Press Release
BOSTON – A U.S. Postal Service (USPS) employee was sentenced today for embezzling over $20,000 in payments from customers.
Austin Correia, 22, of New Bedford, was sentenced by U.S. District Court Chief Judge Patti B. Saris to 24 months of probation, with the first three months to be served in home confinement, and 25 hours of community service. In July 2019, Correia pleaded guilty to one count of theft of embezzlement and theft of public money, property or records. As part of his plea agreement, he has already paid $20,584 in restitution to the USPS in full.
Correia began working for USPS at the end of 2017 as a Sales & Service Distribution Associate at both the Mount Pleasant and Coffin Station Post Offices in New Bedford. In this role, Correia had the ability to issue foreign and domestic postal money orders and sell stamps to customers. Correia engaged in a scheme in which he received a cash payment from customers to purchase stamps or money orders, but voided out the valid transactions to make it appear as if they did not occur. Correia provided the customer with the USPS product, but took the cash payment for his own personal use either by pocketing the money or by purchasing gift cards sold at the Post Office. In total, Correia embezzled over $20,000 from USPS.
United States Attorney Andrew E. Lelling and Matthew Modafferi, Special Agent in Charge of the United States Postal Service Office of Inspector General, Northeast Area Office, made the announcement today. Assistant U.S. Attorney Eugenia M. Carris of Lelling’s Public Corruption & Special Prosecutions Unit prosecuted the case.
U.S. Attorney's Office joins with local law enforcement to celebrate Dublin's successRead the Press Release
DUBLIN, GA: Southern District of Georgia U.S. Attorney Bobby L. Christine on Wednesday credited local, state and federal cooperation with significantly improved safety in the city of Dublin.
During a morning news conference at the Dublin Police Department headquarters, U.S. Attorney Christine said according to the FBI’s recently released Uniform Crime Reports data, violent crime has decreased by more than 24 percent in Dublin during the past three years, compared to a national reduction during that period of just 3.5 percent.
“From the federal perspective, we know our role in fighting crime in Dublin is only a small part of the battle,” said Christine, who oversees federal prosecutions in the 43 counties of Georgia’s Southern District. “The boots on the ground are local law enforcement and prosecutorial partners who live, work, play and worship in this community and have a very direct stake in removing criminals and their influence from their neighborhoods.”
In making the announcement Christine credited the decrease in crime to cooperation of all law enforcement and prosecutorial agencies’ efforts through the Department of Justice’s Project Safe Neighborhoods program that focuses on gun violence, and the Southern District’s Prosecutor to Prosecutor (P3) program that coordinates local and federal prosecutions to find the most effective venue for handling criminal cases.
Both programs represent key elements of the newly announced Project Guardian from the Department of Justice, which seeks to combat gun crime through improved coordination of law enforcement and prosecutors at all levels.
Christine’s comments were echoed by Brian Ozden, Supervisory Special Agent with the FBI, who also attended the news conference. “In the past year, our joint effort has resulted in the indictment of 13 people on federal charges,” Ozden said. “So far, nine of those indicted resulted in guilty pleas, and one was convicted at trial. It has also resulted in the seizure of 11 firearms.”
Both Christine and Ozden praised the efforts of Dublin Police Chief Tim Chatman and Dublin Judicial Circuit District Attorney Craig Fraser in their continued work to reduce crime and make the Dublin community safer.
U.S. Attorney's Office Partners with Charlotte-Mecklenburg Schools to Host Youth Summit for High School StudentsRead the Press Release
CHARLOTTE, N.C. – The United States Attorney’s Office partnered with Charlotte-Mecklenburg Schools to host a youth engagement summit for high school students, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. The one-day summit was co-sponsored by the Boy Scouts of America, the Beasley Media Group, and Atrium Health.
Approximately 200 students selected from Charlotte-Mecklenburg High Schools attended the summit, which was held on the campus of UNCC-Charlotte. The goal of the summit was to encourage high school students to discuss the culture and climate within their schools, to share their experiences with classmates, and to develop solutions for creating a positive school environment for all students.
“All students deserve the opportunity to excel within their schools, without the fear of harassment or violence,” said U.S. Attorney Murray. “Schools need to be safe places, where skillsets are honed, knowledge is expanded, futures are shaped, and today’s dreams become tomorrow’s accomplishments. Empowering students to proactively address conflict within their schools can foster a more positive school experience, so all students can strive and thrive to be their best.”
During the one-day summit, students discussed their concerns about their school’s current environment, and developed strategies to address social pressures, including bullying. Over the course of the summit, students participated in student-led discussions, brainstormed on ways to help support their classmates have a positive school experience, and will utilize the information gained today to develop action plans to address the needs of their schools.
In addition to the interactive workshops, students also heard from Professor Michelle Horton of Wake Forest University and Founder & CEO of YOUniversity; Dr. David Jacobs, Medical Director of Trauma Services for Atrium Health; Reginald Coles, Director of Student Discipline and Behavior Support for Charlotte-Mecklenburg Schools; Charles Whitfield, Director of Live Events & Community Outreach at Beasley Media Group in Charlotte; and Lambert Guinn, Assistant United States Attorney, with the U.S. Attorney’s Office in Charlotte.
In making today’s announcement, U.S. Attorney Murray thanked UNCC-Charlotte for hosting the summit and giving the students an opportunity to gather, and the Boy Scouts of America, the Beasley Media Group, and Atrium Health for their support of this very important initiative.
Two People Sentenced to 30 Months in Prison for Roles in Conspiracy to Distribute OxycodoneRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man and a Philadelphia man were each sentenced today to 30 months in prison for their respective roles in conspiring to distribute oxycodone, U.S. Attorney Craig Carpenito announced.
Prussia Hing, 36, of Philadelphia, and Anthony Pepe, 42, of Cherry Hill, New Jersey, previously pleaded guilty before U.S. District Court Judge Jerome B. Simandle to conspiracy to distribute and possess with intent to distribute oxycodone. U.S. District Judge Robert B. Kugler, who was assigned the case following the subsequent passing of Judge Simandle, imposed the sentence today in Camden federal court.
The defendants were charged in connection with one of the largest national healthcare fraud and opioid enforcement actions ever taken by the U.S. Department of Justice.
According to documents filed in this case and statements made in court:From December 2017 through June 26, 2018, the defendants and others engaged in a conspiracy which resulted in the trafficking of 1,180 oxycodone pills – 680 of which were unadulterated oxycodone and 500 of which were pressed pills mixed with hydrocodone, codeine, and methylphenidate. Hing was a source of the supply. As part of the investigation, law enforcement observed eight controlled purchases, three of which were carried out by the defendants, including Pepe, dressed in his hospital scrubs in front of the major Philadelphia hospital where he was employed as the chief surgical technologist.
In addition to the prison term, Judge Kugler sentenced each defendant to three years of supervised release.U.S. Attorney Carpenito credited special agents of the FBI’s Philadelphia Field Office, South Jersey Resident Agency, both under the direction of Special Agent in Charge Michael Harpster in Philadelphia; the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, and the Camden County Police Department, under the direction of Chief Joseph D. Wysocki, with the investigation leading to today’s sentencings.
The government is represented by Assistant U.S. Attorneys Christina O. Hud and Diana Vondra Carrig of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel:
Pepe: Rocco Cipparone Esq., Haddon Heights, New Jersey
Hing: Gregory Pagano Esq., PhiladelphiaTwo More Plead Guilty to Drug Trafficking as Part of Investigation into “SCO” GangRead the Press Release
PITTSBURGH, PA – Two Allegheny County residents of Southwestern Pennsylvania, pleaded guilty in federal court to charges related to drug trafficking in connection with a large-scale investigation conducted by the Greater Pittsburgh Safe Streets Task Force, United States Attorney Scott W. Brady announced today.
Marcel Sewell, 59, of Braddock, PA, pleaded guilty to two counts related to drug trafficking, before Senior United States District Judge Arthur J. Schwab.
Tyrone Roilton, 25, of Braddock, PA, pleaded guilty to one count related to drug trafficking, also before Judge Schwab.
In connection with the guilty pleas, the court was advised that the Greater Pittsburgh Safe Streets Task Force conducted a long-term investigation of drug trafficking occurring in and around the Braddock section of Pittsburgh. Marcel Sewell, Tyrone Roilton, and other individuals, were identified as members or associates of a neighborhood based street gang, self-titled “SCO”, which illegally distributed controlled substances in the Greater Pittsburgh Region. In January of 2019, investigators obtained authorization to conduct a federal wire investigation, which continued through May of 2019.
As to Marcel Sewell, the Court was informed that intercepted communications confirmed that Sewell was conspiring with others to possess with intent to distribute and distribute controlled substances. Sewell admitted, in conjunction with his guilty plea, that he met with other members of the conspiracy, including “D-Boy” – the street name used by a co-defendant – at a stash house location on Seddon Avenue, in Braddock, which was owned “D-Boy”. The court accepted Sewell’s guilty plea to conspiracy to distribute 182 grams of cocaine and 114 grams of cocaine base, commonly known as crack, between August 2018 and May 2019.
As to Tyrone Roilton, the Court was informed that intercepted communications confirmed that Roilton was conspiring with others to possess with intent to distribute and distribute controlled substances. Roilton admitted, in conjunction with his guilty plea, that he met other members of the conspiracy at his residence in Braddock, PA. The Court was further informed that investigators identified Roilton’s home as a drug distribution location for the “SCO” gang and other members of the conspiracy, which was confirmed on June 12, 2019, when law enforcement searched Roilton’s residence. In his home, law enforcement found numerous items used by drug-traffickers, including drug packaging and distribution material as well as suspected controlled substances. The court accepted Boyd’s guilty plea to conspiracy to distribute 19.3 grams of heroin, a Schedule I controlled substance, and 21.7 grams of cocaine base, commonly known as crack, a Schedule II controlled substance, between August 2018 and May 2019.
Judge Schwab scheduled sentencing for April 29, 2020, at 10:00 AM for Sewell and May 4, 2020 at 10:00 AM for Roilton. For Sewell, the law provides for a total sentence of not less than five years and not more than 40 years in prison, with a maximum fine of $5,000,000. For Roilton, the law provides for a total sentence of not more than 20 years in prison and a maximum fine of $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants. Both Sewell and Roilton remain on house arrest pending sentencing.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Drug Enforcement Administration, Bureau of Alcohol Tobacco Firearms and Explosives, United States Marshals Fugitive Task Force, Allegheny County Sheriff’s Office, Allegheny County Police Department, Pennsylvania State Police, Pennsylvania Attorney General’s Office Bureau of Narcotics, and the Pittsburgh Bureau of Police. Other assisting agencies include the Monroeville Police Department, Penn Hills Police Department, Wilkinsburg Police Department, and Allegheny County Adult Probation.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Two Massachusetts Residents Sentenced for Participating in Fentanyl Trafficking ConspiracyRead the Press Release
CONCORD – Wagner Pimentel, 30, of Methuen, Massachusetts, and Luz Perez DeMartinez, 27, of Lawrence Massachusetts were sentenced in federal court on Tuesday for participating in a large-scale fentanyl trafficking conspiracy, United States Attorney Scott W. Murray announced today. Pimentel was sentenced to 108 months. DeMartinez was sentenced to 132 months and a $50,000 fine.
According to court documents and statements made in court, a drug trafficking organization, led by Sergio Martinez, sold fentanyl to customers from various New England states, including New Hampshire. On each date that Pimentel worked for the Martinez organization, he delivered 200-gram bags of fentanyl to runners who worked for the organization and collected drug proceeds from the runners once they distributed the contents of the bags.
DeMartinez, the wife of the organization’s leader, facilitated various financial aspects of the drug business. Her primary role was to collect, count and process hundreds of thousands of dollars in profits generated by drug sales. She also paid salaries to some of the organization’s employees and collected money to post bail for certain employees who were arrested. She wired drug proceeds out of the country.
Pimentel previously pleaded guilty on March 15, 2019 and DeMartinez previously pleaded guilty on February 12, 2019. After serving his sentence, Pimental faces possible removal to the Dominican Republic.
“The Martinez drug trafficking organization facilitated the sale of large quantities of lethal fentanyl to residents of New Hampshire,” said U.S. Attorney Murray. “This was a large-scale criminal enterprise that reaped hundreds of thousands of dollars in profits and caused untold misery to its customers and their families. These sentences should serve as warning that long federal prison terms await those who choose to distribute fentanyl in New Hampshire.”
“DEA is committed to investigating Drug Trafficking Organizations and individuals like Mr. Pimentel and Ms. DeMartinez who are responsible for distributing lethal drugs like fentanyl to the citizens of New Hampshire,” said DEA Special Agent in Charge Brian D. Boyle. “Today’s substantial sentence not only holds both accountable for their crimes but serves as a warning to those traffickers who are fueling the opioid epidemic with deadly drugs in order to profit and destroy people’s lives. DEA’s top priority is combatting the opioid epidemic by working with our local, state and federal partners to bring to justice anyone who distributes this poison.”
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 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 U.S. Attorneys Georgiana L. Konesky and Seth R. Aframe.
This case was supported 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.
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Two Gardena Police Officers Convicted of Operating Unlicensed Firearms Business, Selling Weapons to Convicted FelonsRead the Press Release
LOS ANGELES – Two Gardena Police officers were found guilty by a jury today of federal criminal charges for scheming to purchase “off-roster” firearms not available to the general public and then illegally reselling the firearms for profit.
Carlos Miguel Fernandez, 44, of Norwalk, and Edward Yasushiro Arao, 49, of Eastvale, were found guilty of conspiracy to engage in the business of dealing firearms without a license and of substantive counts of engaging in an unlicensed firearms business. Fernandez also was convicted of an additional conspiracy count, selling firearms to a convicted felon, and of making false statements about the sales on federal firearms licensing paperwork.
According to evidence presented at their six-day trial, Fernandez, whose Instagram handle was “the38superman,” advertised firearms for sale – guns being offered by both himself, Arao and others – on his Instagram account. The vast majority of posts on the account contained images of firearms. Arao, who was the CEO of Ronin Tactical Group, which was a federal firearms licensee (FFL), similarly advertised off-roster guns on the company’s Instagram account that he then re-sold in his individual capacity. Additionally, both defendants marketed firearms at gun shows. Neither defendant was licensed individually to engage in the business of dealing in firearms when the illegal gun sales alleged in the indictment took place.
The evidence presented at trial demonstrated how the defendants exploited their position as police officers to ensure the success of their illegal gun selling business. Specifically, Fernandez purchased “off-roster” firearms – mostly Colt .38-caliber handguns that were not available to the general public, but which could be legally purchased by law enforcement officers – and sold dozens of these weapons through private-party transfers. Similarly, Arao obtained “off-roster” weapons by transferring them to himself individually from the inventory of Ronin Tactical Group. Through messages on Instagram and other means, Fernandez and Arao negotiated the prices and terms of firearm sales, and they accepted payment for the guns once they were delivered.
For example, between May 2016 and December 2017, Fernandez negotiated and arranged the sale of 10 firearms to a convicted felon, Oscar Maravilla Camacho Jr., 36, of Salinas. With respect to every sale, Fernandez communicated directly with Camacho Jr. about the firearms purchases and understood that Camacho Jr., as a felon, could not legally buy the weapons. Nevertheless, Fernandez transferred the weapons to Camacho Jr. in violation of federal law.
United States District Judge S. James Otero scheduled a March 2 sentencing hearing, at which time Fernandez will face a statutory maximum of 35 years in federal prison and Arao will face a statutory maximum sentence of 10 years in federal prison.
Six other defendants in this case have pleaded guilty to federal criminal charges for distribution of cocaine, conspiracy to dispose of firearms to a felon, and making false statements that led to the straw purchase of several firearms.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case. The Gardena Police Department provided its full cooperation during the investigation.
This case is being prosecuted by Assistant United States Attorneys Katherine A. Rykken of the Major Frauds Section and Veronica Dragalin of the Public Corruption and Civil Rights Section.
Two Former Houston Police Department Officers Indicted in Connection to Fatal RaidRead the Press Release
Three people are now in custody in relation to the fatal raid that occurred in January 2019 on Harding Street in Houston, Texas, announced Assistant Attorney General Eric Dreiband of the Department of Justice’s Civil Rights Division, U.S. Attorney Ryan K. Patrick for the Southern District of Texas and Special Agent in Charge Perrye K. Turner of the FBI.
A federal grand jury returned the nine count indictment Nov. 14 against Gerald M. Goines, 55, and Steven M. Bryant, 46, both former Houston Police Department (HPD) officers. Also charged is Patricia Ann Garcia, 53. All are residents of Houston. The indictment was unsealed this morning as authorities took all three into custody. They are expected to make their initial appearances before U.S. Magistrate Judge Dena H. Palermo at 2 p.m. central time.
The federal indictment stems from the Jan. 28 narcotics raid HPD conducted on the 7800 block of Harding Street in Houston. The enforcement action resulted in the deaths of two residents at that location.
Goines is charged with two counts of depriving the victims’ constitutional right to be secure against unreasonable searches. The indictment alleges Goines made numerous materially false statements in the state search warrant he obtained for their residence. The execution of that warrant containing these false statements resulted in the death of the two individuals as well as injuries to four other persons, according to the indictment.
Goines and Bryant are charged with obstructing justice by falsifying records. Goines allegedly made several false statements in his tactical plan and offense report prepared in connection with that search warrant. The indictment alleges Bryant falsely claimed in a supplemental case report he had previously assisted Goines in the Harding Street investigation. Bryant allegedly identified a brown powdery substance (heroin) he retrieved from Goines’ vehicle as narcotics purchased from the Harding Street residence Jan. 27.
Goines is further charged with three separate counts of obstructing an official proceeding. The federal grand jury alleges Goines falsely stated Jan. 30 that a particular confidential informant had purchased narcotics at the Harding Street location three days prior. He also falsely stated Jan. 31 that a different confidential informant purchased narcotics at that residence that day, according to the charges. On Feb. 13, he also falsely claimed he had purchased narcotics at that residence on that day. The indictment alleges none of these statements were true.
The charges against Garcia allege she conveyed false information by making several fake 911 calls. Specifically, on Jan. 8, she allegedly made several calls claiming her daughter was inside the Harding Street location. According to the indictment, Garcia added that the residents of the home were addicts and drug dealers and that they had guns – including machine guns – inside the home. The charges allege none of Garcia’s claims were true.
If convicted of the civil rights charges, Goines faces up to life in prison. Each obstruction count carries a potential 20-year sentence, while Garcia faces a five-year term of imprisonment for conveying false information.
The FBI is conducting the investigation. Assistant U.S. Attorneys Alamdar S. Hamdani, Arthur R. Jones and Sharad S. Khandelwal, and Special Litigation Counsel Jared Fishman of the Department of Justice’s Civil Rights Division, are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Toledo woman sentenced for planning two terrorist attacksRead the Press Release
Elizabeth Lecron, 24, was sentenced today to 180 months of incarceration and lifetime supervision for her involvement in planning two terrorist attacks, including an attack at a local Toledo bar. During the sentencing hearing, Judge James G. Carr called Lecron’s actions “monstrous.” Her co-defendant and live-in boyfriend, Vincent Armstrong, has pleaded guilty for his role in the scheme and will be sentenced on December 10, 2019.
“This defendant was deadly serious about plotting for an attack on Toledo and an interstate pipeline,” said United States Attorney Justin Herdman. “She stands convicted of a terrorism offense and will spend the next fifteen years in a federal prison. When she is released, she will spend the rest of her life under intense supervision by a federal court. Today’s sentence reflects the severity of her conduct and is a recognition of the continued efforts by law enforcement to protect the public from all violent threats.”
“Elizabeth Lecron's lengthy incarceration followed by a lifetime of supervised release is more than justified for her despicable plan to commit mass murder in our city,” stated FBI Special Agent in Charge Eric B. Smith. “The investigation, prosecution, and her sentence demonstrates the importance of the continued partnership between the public and law enforcement, as well as a strong US Attorney's Office willing to pursue warranted charges that will keep dangerous people like Elizabeth Lecron under law enforcement's watchful eye. It should also serve as a reminder to others that law enforcement will pursue criminals bent on attacking fellow citizens with every tool at our disposal.”
As set out in court filings and during court hearings, Lecron and Armstrong met and started dating in early 2018. Shortly after meeting, Lecron expressed her interest in mass murderers and introduced Armstrong to an online group called the “True Crime Community.” This group fixated and lionized mass murderers and posted extremely graphic images, videos, and sayings. They two became immersed in this subculture, including take a trip in August 2018 to visit the sights related to the Columbine High School shooting to pay tribute to the shooters and Lecron writing numerous letters to Dylann Roof.
Lecron and Armstrong privately discussed committing their own mass murder in the Toledo area and referred to this attack as “D-day.” They discussed using bombs and guns to kill, maim, and injure innocent people. They took several steps in preparation for “D-day.” They purchased guns and went to the shooting range to practice their firearm skills. They also printed instructions to make pipe bombs and bought some the necessary components. They detailed their plan and feelings in personal journals. For instance, Armstrong wrote that he had “a vision to kill” and Lecron wrote, “D-day will be my salvation.”
Separately, on December 8, 2018, Lecron purchased two pounds of black powder and hundreds of screws intending that they be used in a bombing of a pipeline in Georgia.
This conduct took place between April 2018 and December 10, 2018.
This case was investigated by the FBI Joint Terrorism Task Force and prosecuted by Assistant U.S. Attorneys Michael Freeman and Tracey Tangeman.
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Three Men Charged with 1989 MurderRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, James P. O’Neill, Commissioner of the New York City Police Department (“NYPD”), and Raymond Donovan, Special Agent in Charge of the New York Office of the Drug Enforcement Administration (“DEA”), announced today the unsealing of an indictment charging LUIS MERCED, WILLIAM SKINNER, and DORIAN BROOKS, a/k/a “Kool-Aid,” with murder in furtherance of drug trafficking in connection with the murder of Efren Cardenas on February 10, 1989 in Brooklyn, New York. MERCED and SKINNER were arrested yesterday evening and early this morning and will be presented this afternoon before U.S. Magistrate Judge Sarah Netburn. BROOKS is in state custody on other charges and will be presented in federal court at a later date. The case is assigned to U.S. District Judge Edgardo Ramos.
Manhattan U.S. Attorney Geoffrey S. Berman said: “For over 30 years, the family of Efren Cardenas has been waiting for justice. Today, thanks to the extraordinary partnership of the NYPD, the DEA, and the Special Agents of our office, the defendants are charged in federal court for this decades-old murder.”
NYPD Commissioner James P. O’Neill said: “Today’s charges demonstrate the NYPD’s vigilance in bringing justice to victims and their families. The NYPD, our colleagues at the Drug Enforcement Administration and the U.S. Attorney’s Office for the Southern District of New York will continue to vigorously pursue and bring to justice individuals responsible for violent criminal activity."
DEA Special Agent in Charge Raymond Donovan said: “Today’s arrests demonstrate that time does not diminish a crime, especially murder. Thirty years have passed, but law enforcement’s dogged pursuits have brought justice to the victim while sending a message that law enforcement won’t stop until perpetrators are brought to justice. I commend the men and women of the DEA, NYPD, and U.S. Attorney’s Office, Southern District of New York, on their tenacity and diligent efforts throughout this investigation.”
According to the allegations in the Indictment unsealed today in Manhattan federal court[1]:
On February 10, 1989, MERCED, SKINNER, and BROOKS killed Efren Cardenas, 30. MERCED, SKINNER, and BROOKS committed the murder in furtherance of a conspiracy to distribute more than five kilograms of cocaine and more than 280 grams of crack cocaine.
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MERCED, 48, and BROOKS, 50, each from Brooklyn, New York, and SKINNER, 49, of Amityville, New York, are each charged with one count of murder in furtherance of drug trafficking, which carries a maximum sentence of death or life in prison, and a mandatory minimum sentence of 20 years in prison.
Mr. Berman praised the investigative work of the Special Agents of the United States Attorney’s Office for the Southern District of New York, the NYPD’s Cold Case Squad, and the DEA. Mr. Berman added that the investigation is continuing.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Andrew K. Chan and Adam S. Hobson are in charge of the prosecution.
The charges contained in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment constitutes only allegations, and every fact described herein should be treated as an allegation.
Third Foundation Resolves Allegations that it Conspired with Pharmaceutical Companies to Pay Kickbacks to Medicare PatientsRead the Press Release
BOSTON – The U.S. Attorney’s Office announced today that The Assistance Fund (“TAF”), a foundation based in Orlando, Fla., has agreed to pay $4 million to resolve allegations that it violated the False Claims Act by enabling certain pharmaceutical companies to pay kickbacks to Medicare patients taking the companies’ drugs.
TAF operated a fund that was ostensibly for any Medicare patient with multiple sclerosis (MS). The government alleged, however, that TAF conspired with three MS drug manufacturers so that the fund functioned as a conduit for money from those manufacturers to patients taking their MS drugs. The conspiracy enabled the pharmaceutical companies to ensure that Medicare patients did not consider the high costs that the companies charged for their MS drugs. The conspiracy also minimized the possibility that the companies’ money would go to patients taking competing MS drugs made by other companies.
When a Medicare beneficiary obtains a prescription drug covered by Medicare Part B or Part D, the beneficiary may be required to make a partial payment, which may take the form of a co-payment, co-insurance, or deductible (collectively, “co-pays”). Congress included co-pay requirements in these programs, in part, to encourage market forces to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs. The Anti-Kickback Statute prohibits pharmaceutical companies from offering or paying, directly or indirectly, any remuneration – which includes money or any other thing of value – to induce Medicare patients to purchase the companies’ drugs. The law further prohibits third parties, such as co-pay foundations, from conspiring with pharmaceutical companies to violate the Anti-Kickback Statute.
“Pharmaceutical companies and foundations cannot undermine the Medicare program through the use of kickbacks disguised as routine charitable donations. TAF operated as a vehicle for specific pharmaceutical companies to pay kickbacks at the ultimate expense of the American taxpayers who support the Medicare program,” said United States Attorney Andrew E. Lelling. “We will continue to pursue this kind of enforcement until the practice disappears.”
“TAF cared more about helping its big pharma donors make money than about helping individual patients in need of life changing assistance. The FBI is proud to be a part of the investigation that brought TAF’s corrupt practices to light, and we will continue to seek justice against any person or entity involved in such schemes,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division.
“Foundations that coordinate with pharmaceutical company donors to benefit the donors are not operating independently to equitably benefit needy patients,” said Gregory E. Demske, Chief Counsel to the Inspector General. “Our Integrity Agreements promote independence between foundations and their donors and require the foundations to provide assistance to eligible patients on a first-come, first-served basis.”
The United States alleged that TAF conspired with three MS drug manufacturers – Teva, Biogen, and Novartis – to enable them to pay kickbacks to Medicare patients taking their drugs. Details of the alleged conduct can be found in attached addendum.
The amount of the settlement announced today was determined based on analysis of TAF’s ability to pay after review of its financial condition.
TAF entered a three-year Integrity Agreement (IA) with HHS-OIG as part of the settlement. The IA requires, among other things, that TAF implement measures designed to ensure that it operates independently and that its arrangements and interactions with pharmaceutical manufacturer donors are compliant with the law. In addition, the IA requires compliance-related certifications from TAF’s Board of Directors and detailed reviews by an independent review organization.
TAF is the third foundation to settle allegations of kickbacks. In total, the three foundations (TAF, Chronic Disease Fund, and Patient Access Network Foundation) have paid $10 million. In addition, the United States has collected more than $840 million in total from eight pharmaceutical companies (United Therapeutics, Pfizer, Actelion, Jazz, Lundbeck, Alexion, Astellas and Amgen) to resolve allegations that they used third-party foundations as instruments for kickbacks.
U.S. Attorney Lelling, HHS-OIG Chief Counsel Demske and FBI SAC Bonavolonta made the announcement today. The U.S. Postal Inspection Service also assisted with the investigation. The matter was handled by Assistant U.S. Attorneys Gregg Shapiro and Abraham George, of Lelling’s Affirmative Civil Enforcement Unit, with assistance from Trial Attorney Douglas Rosenthal, of the Department of Justice’s Civil Division.
ADDENDUM
TAF’s solicitation and receipt of payments from Teva that correlated with TAF’s spending on Copaxone renewal patients. Teva sells Copaxone, and TAF’s MS fund provided grants to cover Medicare co-pays for patients taking Copaxone. TAF’s MS fund also provided grants to cover Medicare co-pays for patients taking other MS drugs, such as Avonex and Tysabri, which Biogen sells, and Gilenya, which Novartis sells. In the month of December prior to each of the years 2011-2015, TAF conveyed to Teva how much money TAF’s MS fund needed to renew co-pay grants for the fund’s existing Copaxone patients in the upcoming year. In order to determine these amounts, which ranged from over $18 million to over $30 million per year, TAF multiplied the number of Copaxone patients in the fund by the fund’s average grant amount, and then added the cost of TAF’s administrative fee. TAF understood that Teva knew how TAF was calculating the amounts of these funding requests, and that, accordingly, Teva was using TAF’s MS fund as a conduit to cover Medicare co-pays for Copaxone patients.
TAF’s practice of not maintaining wait lists and its coordination of the openings of the MS fund with Teva, Biogen, and Novartis. During the period from 2011-2014, TAF’s MS fund frequently ran out of funding and was closed to new patients. If any patients applied for co-pay assistance at that time, TAF did not maintain a wait list of such patients. As a consequence, whenever TAF’s MS fund received a payment and opened to new patients, the fund provided grants to the patients who applied immediately after the opening and did not provide grants to patients who had sought to apply earlier, but at a time when the fund was closed. As described further below, TAF’s practice of not maintaining wait lists enabled TAF to coordinate with Teva, Biogen, and Novartis to ensure that TAF used the companies’ funding to cover the co-pays of patients taking their respective drugs.
TAF’s coordination with Teva. During the period from 2011 to 2014, Teva not only made large payments to TAF’s MS fund to cover the renewal of grants for Copaxone patients at the beginning of each year, Teva also made numerous smaller payments, typically less than $3 million each, to TAF’s MS fund at subsequent times during each year. In conjunction with each of these smaller payments, TAF coordinated with Teva and Teva’s vendor, Advanced Care Scripts (“ACS”), to ensure that Copaxone patients received a disproportionate share of the grants from the fund during each window when the fund opened after a Teva payment. Each time that Teva was prepared to make a payment, TAF understood that ACS had told Teva how many Copaxone patients were awaiting assistance. Meanwhile, TAF had told Teva the average MS fund grant amount at the time of the payment. TAF knew that Teva was multiplying the average grant amount by the number of waiting Copaxone patients to determine the amounts Teva would pay to TAF’s MS fund. TAF further knew that, whenever Teva made a payment to TAF’s MS fund and the fund opened, ACS immediately would send a “batch file” of Medicare co-pay assistance applications for Copaxone patients. As a result, each time TAF’s MS fund opened after one of Teva’s post-January payments during this period, Copaxone patients received a substantial majority of the grants that the fund provided, even though Copaxone accounted for much less than a majority of the overall MS drug market. Further, TAF maintained a “portal” that gave ACS real-time access to the enrollment status of the patients ACS referred; the portal, as TAF knew, enabled ACS to update Teva on the number of Copaxone patients who had received grants from TAF’s MS fund.
TAF’s coordination with Biogen. Biogen made payments to TAF’s MS fund on May 24 and July 17, 2012, as part of a coordinated effort by TAF and Biogen to use Biogen’s money to cover Medicare co-pays for Tysabri patients. TAF knew that, when the fund opened after each of these two Biogen payments, ACS immediately would send a “batch file” of Medicare co-pay assistance applications for Tysabri patients. As a result, when TAF’s MS fund opened after Biogen’s payments on May 24 and July 17, 2012, Tysabri patients received a disproportionate share of the grants that the fund provided. During the course of this scheme, a TAF co-founder e-mailed a Biogen vice president and referred to the scheme as the “TYS[abri] project.” The e-mail confirmed that the scheme had succeeded in funneling money from Biogen to Tysabri patients through TAF’s MS fund.
TAF’s coordination with Novartis. Beginning in October 2012, TAF and Novartis began to coordinate on a means of ensuring that Novartis’s next payment to TAF’s MS fund would go almost exclusively to Gilenya patients. Ultimately, TAF and Novartis agreed that Novartis would pay TAF’s MS fund $1,418,000 and that TAF would open the fund at 6:00 p.m. on Friday, December 14, 2012. At the time, TAF knew that Novartis had arranged for staff from Novartis’s vendor, Express Scripts, to work overtime that night and the following morning to refer Gilenya patients to TAF’s MS fund for Medicare co-pay assistance. Express Scripts and TAF referred to this effort as their “12/15 Saturday project.” TAF knew that the timing of the opening of the fund, and the readiness of Express Scripts to submit applications on behalf of Gilenya patients at that time, would result in Gilenya patients receiving a disproportionate share of the grants from the fund while it was open. After the fund closed on Saturday, December 15, 2012, TAF confirmed that, during the brief period the fund had been open, TAF used Novartis’s money to provide Medicare co-pay grants to 374 Gilenya patients and 6 non-Gilenya patients for 2013.
TAF’s discrimination against Tysabri patients in 2014. In late December 2012, Biogen provided TAF’s MS fund with funding that TAF understood was to cover grant renewals in 2013 for patients on Biogen’s MS drugs, Tysabri and Avonex. During 2013, TAF applied that Biogen funding to grants for patients on those two Biogen drugs. In late 2013, TAF learned that Biogen did not intend to support TAF’s MS fund for 2014. At the time, TAF also knew that the Medicare co-pay for Tysabri was significantly higher than the Medicare co-pays for the other MS drugs TAF’s MS fund covered. Because Biogen would not support TAF’s MS fund in 2014, and because the co-pays for Tysabri were higher than for other MS drugs, TAF decided not to renew co-pay assistance grants to a number of Tysabri patients in 2014. This thereby increased the available funding for assistance to patients taking drugs made by companies such as Teva that were continuing to finance TAF’s MS fund.
Texas Woman Sentenced to Probation for Possessing Marijuana with Intent to Distribute at Henry E. Rohlsen AirportRead the Press Release
St. Croix, USVI – Kieantia Thomas-Okeke, 39, of Dallas, Texas, was sentenced on November 20, 2019, in District Court on count of Possession of Marijuana with Intent to Distribute, United States Attorney Gretchen C.F. Shappert announced.
Chief Judge Wilma A. Lewis sentenced Thomas-Okeke to a term of 4 years of probation with 100 hours of community service, a $1,000 fine, and a $100 special assessment. Additionally, the $39,980 in cash that was in her possession at the time of her arrest was ordered forfeited to the United States.
According to court documents, on March 5, 2018, a Customs and Border Protection (CBP) canine alerted on Thomas-Okeke after she exited inbound American Airlines flight #2317 from Miami, Florida, at the Henry E. Rohlsen airport in St. Croix. Thomas-Okeke was then handcuffed and escorted to the designated secondary inspection room. There CBP officers searched Thomas-Okeke along with her carry-on suitcase. Inside the carry-on suitcase, a green leafy substance inside plastic wrapped brick shaped packages was discovered along with stacks of cash. The substance field-tested positive for marijuana. The marijuana weighed 9.11 kilograms and the confiscated currency totaled $39,980. Travel records for Thomas-Okeke showed that she was traveling from Dallas, TX, with a layover in Miami and had planned to return to Dallas, TX, the next day. When asked about her compensation for traveling to St. Croix with the drugs and cash, Thomas-Okeke advised that her flight to St. Croix was paid for and she was going to receive $1,500 when she returned to Dallas, TX.
The case was investigated by Customs and Border Protection and Homeland Security Investigations. The DEA Southeast Laboratory in Miami analyzed the marijuana. Assistant U.S. Attorney Daniel H. Huston prosecuted the case.
Two Cleveland Men Each Sentenced to More Than 33 Years in Prison for Multiple Armed RobberiesRead the Press Release
Two Cleveland men were each sentenced this week to more than 33 years in federal prison, followed by three years of supervised release, for multiple armed robberies of MetroPCS stores in the Cleveland area.
“When you point guns at the heads of robbery victims and threaten them with imminent violence, not just once, not just twice, but three and four times, then you can expect to go to jail for a long time,” said United States Attorney Justin Herdman. “These two men will each spend more than three decades in federal prison. Let this sentence send the message to those who would seek to prey upon our neighbors – we will find you, we will prosecute you, and you will be in prison for many years.”
“There is no place in our community for those who use firearms for violent, criminal purposes,” said Jonathan McPherson, Special Agent in Charge of ATF’s Columbus Field Division. “ATF will continue to work with our law enforcement partners at the local, state, and federal levels to bring those individuals to justice.”
According to evidence presented during trial and at sentencing, on November 19, 2019, Shawn Ford (20), and Charles Rogers (24), both of Cleveland, Ohio, used firearms to rob the following MetroPCS stores: 10959 Kinsman Road, on March 21, 2018; 11100 Lorain Avenue, on March 25, 2018; and 5853 Broadway Avenue, on March 27, 2018. They also attempted to rob the MetroPCS store at 14701 Kinsman Road, on March 27, 2018.
On March 21, 2018, both defendants entered the MetroPCS store wielding pistols. One pistol had an extended magazine, holding a large amount of ammunition. The defendants threatened and became physically aggressive with a handicapped victim who had difficulty getting down on the ground during the robbery. One defendant also placed his pistol to the back of the store manager’s head when he did not provide money quickly enough and did not have the phones defendants’ demanded.
On March 25, 2018, both defendants entered the MetroPCS store, one armed with a pistol. The store was busy during this time, with at least five customers and two employees present. During this robbery, one defendant pointed his pistol at the head of an employee and threatened to kill him.
On March 27, 2018, the defendants attempted to rob the MetroPCS store at 14701 Kinsman Road. The sole employee present that day struggled to pull the door closed when he saw the defendants approach in all black clothing and hoodies that covered their faces. After this failed attempt, the defendants moved onto the MetroPCS located at 5853 Broadway Ave. During this robbery, one employee was kicked in the stomach when he did not respond to the defendants’ demands quickly enough. Also during this incident, an off-duty Cleveland Police Officer happened to be in the store. Ford fired nine shots at the officer as the officer attempted to apprehend them. The officer was not injured.
This case is part of Project Safe Neighborhoods, 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. PSN was reinvigorated in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was investigated by the Cleveland Division of Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Ohio Adult Parole Authority and the Cuyahoga County Prosecutor’s Crime Strategies Unit. It was prosecuted by Assistant U.S. Attorneys Kelly L. Galvin and Margaret Kane and Special Assistant U.S. Attorney Eleina Thomas.
T&A Crips gang member sentenced to 20 years in prisonRead the Press Release
COLUMBUS, Ohio – One of 19 defendants charged in a gang-related racketeering conspiracy was sentenced in U.S. District Court today to 240 months in prison.
Steve Henderson, Jr., 25, of Columbus, shot and attempted to murder rival Milo Bloods gang members in June 2014. He also opened fire on an individual after a dispute involving stolen narcotics in April 2015.
Henderson and others were indicted in September 2018 and charged in a racketeering conspiracy that includes five murders, multiple attempted murders and other violent and drug-trafficking crimes.
According to court documents, the defendants are members and associates of the Trevitt and Atcheson Crips gang known as T&A.
The gang derived its name from Trevitt and Atcheson streets in the King-Lincoln District of Columbus, where its members predominantly reside.
Beginning in June 2010, T&A members and associates conspired in a racketeering enterprise and engaged in murders, attempted murders, drug trafficking, firearms trafficking, witness tampering, robbery, assault and other crimes.
The gang controlled the neighborhood through intimidation, fear and violence. Gang members were expected to retaliate with acts of violence when their members and associates were disrespected, threatened, intimidated or subjected to acts of violence.
Specifically, co-conspirators are charged with five murders:
the murder of Franky Tention on July 1, 2012, in the area of 431 Ellison Street;
the murder of William Moore on March 15, 2013;
the murder of Marvin Ector on December 23, 2013, on East 5th Avenue;
the murder of Quincy Story on January 24, 2015; and
the murder of Deaonte Fisher on March 4, 2016.
T&A engaged in a long-term operation of consistent transportation of heroin and crack from Columbus to Portsmouth, Ohio, for sale in various “trap houses.” In the summer of 2015, T&A, under the leadership of Eric Henderson, Sr., began to deliver large amounts of heroin, crack, and oxycodone from Columbus to Portsmouth on a weekly basis. Female associates and drug-addicted “mules” transported the drugs at the direction of T&A members and associates. The drugs were then sold on a daily basis out of a number of “trap houses” controlled by T&A members.
“What made this violent gang particularly dangerous was their effectiveness at illegally acquiring massive amounts of firearms and bringing them to Columbus,” said U.S. Attorney David M. DeVillers. “T&A Crips not only sold narcotics, but also took advantage of the vulnerability of drug addicts, who often had no felony convictions, to both purchase and steal firearms.”
Co-defendant Eric Henderson, Jr. was sentenced last week to 78 months in prison. He sold gram quantities of crack cocaine in Columbus and Chillicothe on behalf of the racketeering conspiracy.
Terrance Pyfrom, 21, was also sentenced last week. Pyfrom was sentenced to 78 months in prison for conspiring to distribute crack cocaine and shooting at members of the Easthaven Bloods gang on Aug. 8, 2014, after a drive-by shooting.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Jonathan McPherson, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Joseph M. Deters, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Interim Columbus Police Chief Tom Quinlan; United States Marshal Pete Tobin and Franklin County Prosecutor Ron O’Brien announced the sentences imposed by U.S. District Judge Michael H. Watson. Assistant United States Attorneys Kevin W. Kelley and Noah R. Litton are representing the United States in this case.
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