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10 January 2020
Fayetteville Man Convicted in Federal Court Sentenced to More Than 10 Years for Drug and Gun CrimesRead the Press Release
NEW BERN – United States Attorney Robert J. Higdon, Jr. announced that in federal court, United States District Judge Louise W. Flanagan sentenced DELTON EUGENE WARREN, 56, of Fayetteville to 138 months imprisonment, followed by 3 years of supervised release.
WARREN was named in an Indictment filed on September 21, 2017 charging him with Distribution of a Quantity of Cocaine Base (crack), Possession with Intent to Distribute 28 grams or More of Cocaine Base (crack), Possession of a Firearm in Furtherance of a Drug Trafficking Crime and Possession of a Firearm by a Felon. On May 8, 2019, WARREN was found guilty after a jury trial.
According to the investigation, on February 22, 2017, Officers with the Fayetteville Police Department received information from a confidential source that WARREN was selling cocaine. Officers conducted four controlled buys over a period of 3 months from WARREN for crack cocaine and conducted a trash pull from WARREN’s residence. (Controlled purchases took place on February 22, 2017, February 27, 2017, March 9, 2017, and March 20, 2017). On April 27, 2017, Officers executed a search warrant at WARREN’s residence and found 17.65 grams of marijuana, 156.51 grams of crack cocaine, 95.94 grams of cocaine, drug paraphernalia, approximately $15,000 cash, and a stolen 9mm handgun firearm. WARREN is a convicted felon and prohibited from possession of firearms.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
This case is also 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 United States Attorney’s Office for the Eastern District of North Carolina implements the PSN Program through its Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The Fayetteville Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) conducted investigation of this case. Assistant United States Attorneys Jane Jackson and Chad Rhoades handled the prosecution of this case for the government.
Drug Dealer Sentenced to 102 Months of Federal PrisonRead the Press Release
WILMINGTON, Del. – David C. Weiss, United States Attorney for the District of Delaware, announced that Wilson Colon-Sierra, 33, of Elkton, Maryland was sentenced earlier this week in federal court in Delaware for his role in a drug trafficking conspiracy that resulted in the heroin overdose death of Jennifer Rodick of Wilmington, Delaware.
According to court documents and statements made in open court, Jennifer Rodick overdosed on a bag of heroin on January 3, 2018. After an investigation by the Drug Enforcement Administration and New Castle County Police Department, witness statements and phone location data established that Colon-Sierra had sold the bag of heroin that was ultimately used by Jennifer Rodick.
Colon-Sierra was arrested in his home in Elkton, Maryland in March 2018 in possession of over 160 grams of heroin and 82 grams of crack cocaine, which he admitted that he conspired to distribute.
Chief United States District Judge Leonard P. Stark found that Colon-Sierra’s drug conspiracy crime resulted in the death of Jennifer Rodick and that Colon-Sierra was a leader of the drug conspiracy that ultimately caused Rodick’s death. As a result, Chief Judge Stark granted a motion by the United States to enhance Colon-Sierra’s sentence because Colon-Sierra’s conduct resulted in a death, imposing a sentence of 8 ½ years in federal prison.
U.S. Attorney Weiss commented, “In the midst of the opioid epidemic, the U.S. Attorney’s Office and Drug Enforcement Administration are committed to investigating and prosecuting those who profit off of the addictions of others and put this poison on the streets of Delaware. Cases like this one are why we have created the First State Overdose Task Force. We are thankful to our federal and state partners for their hard work in investigating this case.”
“Colon-Sierra was responsible for the distribution and sale of heroin that resulted in the death of Jennifer Rodick,” said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “The criminal penalties for drug-traffickers like Colon-Sierra who sell and distribute dangerous drugs that result in lost lives are very severe. The DEA remains committed to pursuing the drug-traffickers that pose the greatest danger to our communities.” DEA wishes to thank the U.S. Attorney’s Office for their outstanding efforts throughout this investigation and trial.”
This case was investigated by the Drug Enforcement Administration in coordination with the New Castle County Police Department. The case was prosecuted by Assistant U.S. Attorneys Alexander P. Ibrahim and Ruth E. Mandelbaum.
Doctor and Sales Rep Charged in $12 Million Fraud Scheme Targeting Tricare and Extensive Cover UpRead the Press Release
LITTLE ROCK—A doctor and a medical sales representative have been charged in a scheme to pay and receive kickbacks to generate expensive prescriptions for compounded drugs. TRICARE, the military’s health insurer, paid over $12 million for the prescriptions, which the indictment alleges were rubber stamped without examining patients or regard to medical necessity. The 43-count indictment alleges the scheme also encompassed widespread efforts to obstruct the ensuing investigation.
Cody Hiland, U.S. Attorney for the Eastern District of Arkansas, Diane Upchurch, Special Agent in Charge of the FBI Little Rock Field Office, and Latisha Cleveland, Acting Special Agent in Charge of the Dallas Regional Office of the U.S. Department of Health and Human Services, Office of the Inspector General, announced the indictment, which was handed down yesterday by a federal grand jury and included charges for conspiracy, wire fraud, mail fraud, Anti-Kickback violations, aggravated identity theft, money laundering, lying to the FBI, falsifying records, and obstruction of justice.
The indictment alleges that recruiters sought TRICARE beneficiaries to receive the drugs, promising to secure their prescriptions (without any doctor consult) and, at times, offering them money to sign up. Upon receipt of TRICARE beneficiary information from recruiters, the ringleader of the scheme sent pre-filled prescriptions—with drugs to be dispensed, refills authorized, and patient names already listed—to medical professionals who signed without consulting patients or any regard to medical necessity. Prescriptions went to a Mississippi pharmacy, which shipped drugs nationwide and billed TRICARE for reimbursement.
According to the indictment, local doctor Joe David May, also known as Jay May, of Alexander, rubber stamped pre-filled prescriptions for over 100 beneficiaries for which TRICARE paid $4.5 million. May received pre-filled prescriptions from Derek Clifton, also of Alexander. The indictment alleges the ringleader paid Clifton to get May to sign the prescriptions despite knowing Clifton shared his payout with May. Clifton also had May sign pre-filled prescriptions for beneficiaries solicited by Clifton himself and his own recruiters. Clifton received over $740,000 tied to May’s prescriptions, which he used to buy a car, fund his retirement account, and purchase a home.
The indictment alleges Clifton, who previously coached high school basketball, began by recruiting three former players who joined the military. Each agreed to receive drugs after being offered money, and one later received $1,200 cash hidden inside a Stetson cowboy hat. Together they received nearly $500,000 in drugs prescribed by May.
According to the indictment, May used a cell phone app to electronically sign batch after batch of pre-filled prescriptions, including signing 8 pre-filled prescriptions within just 3 minutes of receipt, 10 within 5 minutes, and 13 within 13 minutes. In the final days before TRICARE reimbursements were expected to plummet, May rubber stamped more than 50 pre-filled prescriptions for which TRICARE paid $1.2 million. Many of those beneficiaries were recruited during a meeting at a North Little Rock National Guard facility where attendees were each offered $1,000 for receiving drugs.
The indictment alleges the only TRICARE beneficiary May actually treated before prescribing drugs was a 91-year-old widow suffering from dementia whom May noted neither “report[ed] any pain” nor appeared to be in pain. Nevertheless, he prescribed her $40,000 in pain cream off the books, failing to log the drugs in her official hospital chart.
According to the indictment May received cash kickbacks for signing, which participants openly discussed. When the ringleader joked about being hounded for payouts by texting Clifton “Hashtag for the day... [Ringleader], is my check ready? # Lol” Clifton replied “Haha! Meeeee toooo Jay already called asking this morning too...even the rich man[.]” Later, Clifton lamented falling TRICARE reimbursement rates by texting the ringleader “$210 minus half for tax$105 [sic] then dr’s cut then patients cut..... Yikes[.]” According to the indictment May deposited over $15,000 in cash in 2015 (compared to under $500 in 2014), including $10,000 during the same three-month period at the height of the scheme during which time Clifton withdrew over $15,000 in cash.
According the indictment, following a CBS News exposé and complaints of doctors signing prescriptions “on the down low” without seeing patients, recruiters were instructed to relay prescriber names to beneficiaries so beneficiaries could behave as if they “knew and saw there [sic] doctor” if they came into contact with the pharmacy.
The indictment alleges the ruse continued once federal agents began to investigate, with May and another prescriber both falsely claiming to have consulted patients before signing prescriptions and both producing phony medical records to make it appear patients had been consulted. Records produced by May related to beneficiaries never examined and cited made-up injuries and surgeries patients never experienced. Similarly, Clifton altered records produced to the Grand Jury to conceal the names of TRICARE beneficiaries who received drugs and withheld hundreds of prescriptions, emails, and other records from the Grand Jury that the FBI would later discover when searching his email account.
“Our healthcare system relies upon the integrity of those who practice in the field. It is our mission to root out those who would prey upon such vulnerability and prosecute them to the fullest extent of the law,” said U.S. Attorney Cody Hiland. “The assembly line alleged in this case of fraudulent prescriptions fueled by kickbacks was especially concerning because it attacked TRICARE, our military’s health insurer. Equally troubling are the allegations of a widespread campaign to throw investigators off the trail by lying to the authorities, falsifying medical records, tampering with evidence, and attempting to hide material from the Grand Jury. While such tactics may prolong an investigation, today’s indictment shows that they ultimately succeed only in bringing ever more serious charges upon the accused.”
“Unscrupulous medical professionals and fraudsters allegedly stole millions of dollars from the TRICARE program which serves our veterans, military members and their families,” said FBI Special Agent in Charge Diane Upchurch. “In an effort to further pervert the course of justice, the defendants allegedly lied, obstructed justice, and falsified records in order to conceal their crimes. The deliberate targeting of a healthcare program which solely aids our military troops and their families is appalling, and the additional alleged attempts to cover up their criminal actions show the true nature of those indicted today. Alongside our partners at HHS-OIG, we will continue to aggressively investigate fraud within the healthcare industry and we urge anyone with information about suspected healthcare fraud to contact their local FBI Field Office.”
“Fraudulently submitting claims to any federally funded health care benefit program equates to robbing all American taxpayers” said HHS-OIG Acting Special Agent in Charge Latisha Cleveland. “Working closely with our law enforcement partners, our agents are determined to protect our nation’s health care systems. We are committed to ensuring that fraudsters pay for their crimes, especially those that target our military service members and veterans.”
A vigilant public is indispensable to rooting out fraud, waste, and abuse within the healthcare industry. Please email [email protected] if you or someone you know may have information about the compounded drug scheme targeting TRICARE. Please call 1-800-HHS-TIPS (1-800-447-8477) or the FBI with any other tips on suspected fraud, waste, or abuse within the healthcare industry.
This case is being investigated by the FBI and HHS-OIG, and prosecuted by Assistant United States Attorneys Alexander D. Morgan and Stephanie G. Mazzanti.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
http://www.justice.gov/edar
Twitter: @EDARNEWS
CHARGES AND STATUTORY SENTENCES
Conspiracy is punishable by up to five years’ imprisonment. Wire fraud and mail fraud are punishable by up to twenty years’ imprisonment. Violating the Anti-Kickback statute is punishable by up to ten years’ imprisonment. Aggravated identity theft carries a mandatory two-year prison term, consecutive to any other sentence imposed. Money laundering is punishable by up to ten years’ imprisonment. Lying to the FBI is punishable by up to five years’ imprisonment. Falsification or alteration of records in a federal investigation is punishable by up to twenty years’ imprisonment. Obstruction of justice in violation of 18 U.S.C. § 1503(a) is punishable by up to ten years’ imprisonment. Obstruction of justice in violation of 18 U.S.C. § 1512 (c)(2) is punishable by up to twenty years’ imprisonment.
Each of the proceeding offenses carries a potential fine of up to $250,000 and up to three years’ supervised release.
Clifton, May IndictmentDenver Doctor Justin Neisler Pleads Guilty to Producing Child PornographyRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Dr. Justin Neisler, MD, age 31 of Denver, Colorado, pleaded guilty yesterday to the production of child pornography before U.S. District Court Judge Raymond P. Moore. Dr. Neisler appeared at the change of plea hearing in custody and was remanded at the hearing’s conclusion. He is scheduled to be sentenced by Judge Moore on May 22, 2020. The Denver office of the FBI joined in this announcement.
According to the stipulated facts contained in the plea agreement, on November 2, 2018, the Colorado Springs Police Department’s Internet Crimes Against Children (ICAC) Task Force received a tip that child pornography was being uploaded by Dr. Neisler to a social media website. The uploads took place between October 15, 2018 and December 13, 2018. On March 13, 2019, agents and officers executed a search warrant at Dr. Neisler’s residence. During the search, it was determined that Dr. Neisler kept child pornography on his cell phone and on various other electronic media. A later forensic review by the FBI of Dr. Neisler’s electronic devices revealed approximately 6,600 still images and 1,725 videos of child pornography that he had obtained from the Internet.
During the search, Dr. Neisler admitted to investigators that, in his professional capacity, he conducted medical examinations of minors and others. The investigation determined that Dr. Neisler had secretly video recorded a number of these medical exams, while his patients were undressed, without his patients’ knowledge, using a Spy Pen Camera and his iPhone. He would then watch those videos at home for his own sexual gratification. As part of investigating and prosecuting this case, minor victims have been identified and interviewed to make certain that no other hands-on offenses occurred, and that those victims’ needs are addressed, and that the videos of those victims have not been distributed.
“There are few violations of trust worse than when a doctor takes advantage of a child in the exam room for his own sexual gratification,” said U.S. Attorney Jason Dunn. “Thankfully, Dr. Neisler was caught and will never again be in a position to harm children under the guise of helping them.”
“Today’s plea represents the FBI’s dedication to pursuing those that exploit children,” said FBI Denver Special Agent in Charge Dean Phillips. “The identification and apprehension of child predators is a priority for the FBI, and this case should serve as a deterrent to those who utilize their positions of trust in the victimization of children.”
Dr. Neisler faces not less than 15 years and not more than 30 years in federal prison. The defendant is being prosecuted by Assistant U.S. Attorneys Patricia Davies and Alecia Riewerts.
Deli Employee Arrested for Selling Controlled Substances Near Two Hamburg SchoolsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Mohammed Alawi, 52, of Lackawanna, NY, was arrested and charged by criminal complaint with possession with intent to distribute, and distribution of, a controlled substance, and distribution of a controlled substance in or near schools. The charges carry a maximum penalty of 40 years in prison and a $2,000,000 fine.
Assistant U.S. Attorneys Jeremiah E. Lenihan and Michael J. Adler, who are handling the case, stated that according to the complaint, in September 2019, the Hamburg Police Department and the Drug Enforcement Administration began investigating the defendant after he was identified as selling hydrocodone, a Schedule II Controlled Substance, from inside Bayview Deli on Bayview Road in Hamburg. The deli is across the street from Big Tree Elementary School and Frontier Central High School.
It is alleged, that on October 3 and November 6, 2019, the DEA conducted two controlled purchases of hydrocodone from Alawi. According to the New York State Bureau of Controlled Substances, the defendant has filled several prescriptions issued by his doctor for hydrocodone.
Alawi has a previous federal felony conviction. In 2016, the defendant was convicted of misbranding food held for sale after shipment in interstate commerce with intent to mislead.
“To pedal opioids within a stone’s throw of our most precious commodity—our children—is particularly egregious,” stated U.S. Attorney Kennedy. “While our kids belong in school, greedy drug dealers, who disregard the safety of our kids and fail to respect the sanctity of our schools, belong in jail.”
“Our cases take us all over the world, but sometimes the most important ones are in our backyard,” said DEA Special Agent-in-Charge Ray Donovan. “As a result of today’s arrest, we have reinforced student safety and significantly increased the quality of life in the Town of Hamburg. I applaud the law enforcement collaboration throughout this investigation.”
The defendant made an initial appearance before U.S. Magistrate Judge Jeremiah J. McCarthy and was released on conditions.
The complaint is the result of an investigation by the Hamburg Police Department, under the direction of Chief Gregory Wickett, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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DOJ and FTC Announce Draft Vertical Merger Guidelines for Public CommentRead the Press Release
The Department of Justice today withdrew the 1984 DOJ Non-Horizontal Merger Guidelines, and, together with the Federal Trade Commission (FTC), released new draft 2020 Vertical Merger Guidelines (draft guidelines) and seeks public comment. The draft guidelines, open to comment for 30 days, describe how the federal antitrust agencies review vertical mergers to evaluate whether the mergers violate antitrust law. Vertical mergers combine two or more companies that operate at different levels in the same supply chain. The draft guidelines outline the agencies’ principal analytical techniques, practices, and enforcement policy for vertical mergers.
The agencies will review and consider the public comments before issuing final Vertical Merger Guidelines. The agencies cooperated closely in preparing the draft guidelines, which reflect the agencies’ significant experience in analyzing vertical mergers. The guidelines are intended to assist the business community and antitrust practitioners by providing transparency about the agencies’ antitrust enforcement policy with respect to vertical mergers.
“I appreciate the Antitrust Division working to update this decades-old statement regarding the practices and policies of the federal enforcement agencies in this critical area, in coordination with the Federal Trade Commission,” said Deputy Attorney General Jeffrey A. Rosen. “As this effort demonstrates, the Department of Justice is committed to principled and transparent antitrust enforcement, which promotes free enterprise, market competition, and ultimately the welfare of American consumers. We look forward to public input and finalizing this important work, along with the FTC.”
“While many vertical mergers are competitively beneficial or neutral, both the Department and the Federal Trade Commission have recognized for over 25 years that some vertical transactions can raise serious concern,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “The revised draft guidelines are based on new economic understandings and the agencies’ experience over the past several decades and better reflect the agencies’ actual practice in evaluating proposed vertical mergers. Once finalized, the Vertical Merger Guidelines will provide more clarity and transparency on how we review vertical transactions. I look forward to receiving comments on these draft guidelines and working with the Federal Trade Commission in finalizing them.”
“Challenging anticompetitive vertical mergers is essential to vigorous enforcement. The agencies’ vertical merger policy has evolved substantially since the issuance of the 1984 Non-Horizontal Merger Guidelines, and our guidelines should reflect the current enforcement approach. Greater transparency about the complex issues surrounding vertical mergers will benefit the business community, practitioners, and the courts,” said FTC Chairman Joseph J. Simons. “We invite comments from all stakeholders to help ensure that the guidelines clearly and accurately convey the agencies’ antitrust enforcement policy with respect to vertical mergers.”
The draft guidelines adopt the principles and analytical frameworks in the agencies’ Horizontal Merger Guidelines, including market definition, the analytic framework for evaluating entry considerations, the treatment of the acquisition of a failing firm or its assets, and the acquisition of a partial ownership interest. The draft guidelines describe the analytical and enforcement considerations that are specific to vertical mergers.
The draft guidelines:
- describe potential anticompetitive effects resulting from vertical mergers, which may include both unilateral and coordinated effects;
- identify foreclosure and raising rivals’ costs and access to competitively sensitive information as potential elements of antitrust harm under unilateral effects;
- describe an analytic framework for analyzing potential anticompetitive effects of foreclosure and raising rivals’ costs;
- discuss how the elimination of double marginalization may mitigate or completely neutralize the potential anticompetitive effects of vertical mergers;
- discuss cognizable merger efficiencies that are specific to vertical mergers;
- provide a number of examples to provide more clarity about the agencies’ analytical methods in evaluating vertical mergers.
Comments on the draft guidelines can be emailed to [email protected] and [email protected], and must be received no later than Feb. 11, 2020.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Convicted Sex Offender Sentenced to Federal Prison for Failing to Register in IowaRead the Press Release
A convicted sex offender who failed to register as required while living in Iowa for over a year was sentenced today to more than two years in federal prison.
Pollock Gerald Rush, Sr., age 49, last living in Cedar Rapids, Iowa, received the prison term after a June 26, 2019 guilty plea to one count of failing to register as a sex offender.
At the guilty plea, Rush admitted to failing to register as a sex offender while living in Iowa from March 2018 through April 2019. Rush was required to register because he had previously been convicted of criminal sexual abuse using force in Illinois in 2014. In that case, Rush sexually abused his minor stepdaughter and both physically assaulted her and threatened to kill her if she reported the abuse. Rush has a lengthy criminal history, including convictions for attempted armed robbery in 1995 and domestic abuse assault in 2019.
Rush was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Rush was sentenced to 29 months’ imprisonment. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system. Rush is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the United States Marshall’s Service.
Court file information is available at https://ecf.iand.uscourts.gov/. The case file number is 19-CR-43.
Follow us on Twitter @USAO_NDIA.
Columbia Man Sentenced to 188 months in Federal Prison for Unlawful Possession of a FirearmRead the Press Release
Columbia, South Carolina ---- Acting United States Attorney A. Lance Crick announced that McKinley Earl Morant, age 35, of Columbia, South Carolina, was sentenced to 188 months in federal prison followed by a three-year term of supervised release after pleading guilty in September 2019 to being a felon in possession of a firearm. Senior United States District Judge Cameron M. Currie imposed the sentence.
Evidence presented in court established that during the evening of April 17, 2018, Columbia Police Department (CPD) officers were investigating a shooting incident near Elmwood Avenue and Two Notch Road and received a description of a car possibly involved in the incident. A CPD officer saw a car matching the description and followed it to a nearby gas station parking lot. Morant parked the vehicle, got out and walked inside the gas station. Morant was initially arrested inside the gas station for failing to follow police commands. Officers saw a .45 caliber pistol lying on the driver’s side floorboard of the car that Morant was driving. Officers then searched the car and found several methamphetamine pills, a quantity of marijuana, a digital scale and a box of .45 caliber ammunition in addition to the pistol.
Morant was convicted of five counts of armed robbery in 2002 as well as unlawful possession of a controlled substance in 2016 and is prohibited under federal law from possessing a firearm or ammunition. Morant was also on bond for a stalking charge from Laurens, South Carolina at the time of this offense.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Columbia Police Department. Assistant United States Attorney Christopher D. Taylor prosecuted the case.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Colombian National Sentenced to More Than 24 Years for Conspiring to Send More Than 12,000 Kilograms of Cocaine to the Sinaloa CartelRead the Press Release
Tampa, FL – U.S. District Judge Richard A. Lazzara today sentenced Jimmy Riascos-Riascos (44) to 24 years and 4 months in federal prison for conspiring to distribute cocaine on board vessels subject to the jurisdiction of the United States.
Riascos-Riascos had pleaded guilty on July 18, 2019.
According to court records, Riascos-Riascos was a member of a transnational criminal organization that dispatched self-propelled semi-submersible (SPSS) vessels from Colombia into the Pacific Ocean, destined for Sinaloa Cartel members in Oaxaca, Mexico. Riascos-Riascos was involved in installing the engines on these SPSS vessels, recruiting mechanics to travel onboard, and providing instructions to crewmembers on how to operate the engines. Two of these SPSS vessels were interdicted in international waters resulting in the seizure of more than 12,000 kilograms of cocaine and the prosecution of the crewmembers in the Middle District of Florida.
Riascos-Rascos further admitted to being a crewmember on an SPSS that successfully reached its destination in Mexico, in May 2015.
This case was investigated by the Panama Express Strike Force, a standing Organized Crime Drug Enforcement Task Force (OCDETF) comprised of agents and analysts from the Drug Enforcement Administration, the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Coast Guard Investigative Service, the Naval Criminal Investigative Service, and the U.S. Southern Command's Joint Interagency Task Force South. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. The case was prosecuted by Assistant United States Attorney Dan Baeza.
Co-Owner of Gas Station Pleads Guilty to Distributing SpiceRead the Press Release
ALEXANDRIA, Va. – A Gainesville man pleaded guilty today to selling synthetic cannabinoids—commonly known as “spice” or “K2”—from the gas station he owned and operated with his business partner in Fauquier County.
“Spice is a toxic mix of dangerous chemicals that can be deadly,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “These chemicals can mimic the effects of PCP, a powerful and dangerous hallucinogenic. Many people wrongly assume spice is innocuous, and it is often our young people who fall victim to these illegal drugs, obtaining them at gas stations and convenience stores without any idea how dangerous they can be.”
According to court documents, Nasser A. Latif, 70, and his business partner have sold spice from their gas station, located in Warrenton, since 2012. Latif and his partner primarily sold 5-gram packets of spice, packaged in silver pouches bearing various logos, brand names, or images; including “Scooby Doo,” “Diablo,” “Bizarro,” and “24 Monkey.” The spice cost at least $53 per packet.
“We appreciate the tremendous working relationships with our law enforcement partners that resulted in holding these perpetrators accountable,” said Sheriff Robert P. Mosier of Fauquier County. “This investigation has undoubtedly saved lives by getting these synthetic or “designer drugs” off the street, which were responsible for medical occurrences, some even requiring hospitalizations. We will always work with vigilance for the continued protection of our community from those that would exploit the weaknesses associated with addictions.”
“For years, these individuals sold their illicit products in our community, profiting from their toxic and deadly goods,” said Raymond Villanueva, special agent in charge for U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Washington D.C. field office. “HSI is committed to taking individuals peddling dangerous substances off our streets.”
In December 2017, law enforcement seized more than seven kilograms of spice, as well as nearly $300,000 in cash from Latif’s residence, as well as approximately $118,000 from the gas station’s business account.
Latif pleaded guilty to conspiracy to distribute, and possession with intent to distribute, Schedule I controlled substances and controlled substance analogues. He faces a maximum penalty of 20 years in prison when sentenced on March 27. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case was prosecuted as part of Organized Crime Drug Enforcement Task Force (OCDETF) Operation Scary Spice. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Robert P. Mosier, Fauquier County Sheriff; Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C.; and Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, made the announcement after U.S. District Judge Rossie D. Alston accepted the plea. Assistant U.S. Attorneys Katherine E. Rumbaugh and Bibeane Metsch are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-001.
Charleston Man Pleads Guilty to Gun CrimeRead the Press Release
CHARLESTON, W.Va. – A Charleston man pled guilty to a gun crime, announced United States Attorney Mike Stuart. Harry Lee Nguyen, 23, pled guilty to being a felon in possession of a firearm.
“My office is committed to rooting out violence on Charleston’s west side,” said United States Attorney Mike Stuart. “An important part of our strategy is enforcing federal firearms laws and keeping guns out of the wrong hands. Nguyen is prohibited from possessing guns because of his two prior felony convictions.”
Nguyen admitted that in the early morning of August 3, 2019 he was walking on the west side of Charleston with another individual. When police attempted to stop Nguyen, he threw a .40 caliber Smith & Wesson handgun into the yard of a nearby house. The police immediately detained Nguyen and found the firearm.
Nguyen was convicted on February 1, 2016, in the Circuit Court of Kanawha County, West Virginia of Wanton Endangerment Involving a Firearm. He was also convicted on May 1, 2017, in the Circuit Court of Kanawha County, West Virginia of Unlawful Wounding.
Nguyen faces up to ten years in prison when sentenced on April 29, 2020.
The Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation. United States District Judge Irene C. Berger presided over the hearing. Assistant United States Attorney Stefan Hasselblad is handling the prosecution.
This case is being prosecuted as part of the Project Safe Neighborhoods (PSN) program, 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.
Follow us on Twitter: SDWVNews and USAttyStuart
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Cape Cod Man Sentenced for Conspiracy to Distribute Fentanyl, Heroin and CocaineRead the Press Release
BOSTON – A Yarmouthport man was sentenced today in federal court in Boston for his role in a wide-ranging operation that distributed heroin and fentanyl throughout Cape Cod.
Kevin Fraga, 26, was sentenced by U.S. District Court Judge Allison Burroughs to 45 months in prison and five years of supervised release. In November 2017, Fraga agreed to plead guilty to one count of conspiracy to distribute and possession with intent to distribute 400 grams or more of fentanyl, 500 grams or more of cocaine and 100 grams or more of heroin.
Fraga and three others were arrested in August 2017 as part of a drug ring that shipped large quantities of fentanyl, cocaine and heroin from Boston to Cape Cod, where it was redistributed. Fraga and his brother, Alex Fraga, were arrested on Aug. 16, 2017, after law enforcement officers seized large quantities of fentanyl, heroin and cocaine from Kevin Fraga’s Jeep and Winnebago, and the home that Alex and Kevin shared in Yarmouthport. Approximately one week later, Kelvin Chales and James Ramirez, alleged drug suppliers to the Fraga brothers, were arrested, and law enforcement seized fentanyl pills and powdered fentanyl from a drug stash house in Dorchester, Ramirez’s home in Dorchester and a safety deposit box at Santander Bank in Dorchester.
Ramirez previously pleaded guilty and is set to be sentenced on Feb. 5, 2020. Chales is scheduled to plead guilty on Jan. 30, 2020.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Cape and Islands District Attorney Michael O’Keefe made the announcement today. The Brewster, Harwich, Sandwich, Mashpee, Chatham, Yarmouth, and Barnstable Police Departments and the Barnstable County Sheriff’s Department provided assistance with the investigation. Assistant U.S. Attorneys Eric Rosen, Alathea Porter, and Philip Cheng of Lelling’s Criminal Division prosecuted the case.
The details contained in the charging document are allegations. The remaining defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
California Woman Charged with Hate Crime for Threatening to Bomb Catholic Prep SchoolRead the Press Release
WASHINGTON – A two-count federal indictment was unsealed January 3, 2020 charging Sonia Tabibzada, 35, of San Jacinto, California, for threatening to bomb the Georgetown Visitation Preparatory School in Washington, DC. Count One charges Tabibzada with intentionally attempting to obstruct persons in the enjoyment of their free exercise of religious beliefs through the threatened use of force, in violation of Title 18, United States Code, Section 247. Count Two charges Tabibzada with threatening to kill, injure, and intimidate school officials and threatening to unlawfully destroy a building by means of fire or explosive device, in violation of Title 18 United States Code, Section 844.
Visitation Prep is the oldest Catholic school for girls in the United States. The indictment alleges that, after school officials announced that Visitation Prep would begin publishing same-sex wedding announcements in its alumni magazine, Tabibzada made at least two threatening calls referencing the decision. On May 15, 2019, Tabibzada left a voice message stating that she was going to burn and bomb the church and was going to kill school officials and students. Several minutes later, Tabibzada left a second voice mail stating that she was going to blow up the school and warned that she would commit terrorism.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendant is presumed innocent unless proven guilty. If convicted, Tabibzada faces a maximum sentence of 20 years in prison, three years of supervised release, and a fine of up to $250,000.
The case was investigated by the FBI Washington Field Office and is being prosecuted by Assistant U.S. Attorney Kendra Briggs of the District of Columbia and Civil Rights Division Trial Attorney Michael J. Songer.
Cabarrus County Man Sentenced to 138 Months in Federal Prison for Drug OffenseRead the Press Release
GREENSBORO, N.C. - A resident of Kannapolis, North Carolina, was sentenced today in federal court in Greensboro for possessing methamphetamine with the intent to distribute, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina.
JEREMY MICHAEL MCDANIEL, age 33, was sentenced to a 138 month term of imprisonment by United States District Judge William L. Osteen, Jr. In addition to prison time, MCDANIEL was ordered to serve five years of supervised release and pay a special assessment of $100.00. MCDANIEL pleaded guilty on September 5, 2019 to the single count indictment.
Court records show that on December 16, 2018, Cabarrus County probation officers with the North Carolina Department of Public Safety (NCDPS) conducted a warrantless probationary search of MCDANIEL’s home in Kannapolis after receiving information that he was selling methamphetamine to coworkers. During the search, probation officers located 3.76 grams of methamphetamine, marihuana, digital scales, and other drug-related paraphernalia. MCDANIEL was on supervised probation at the time as a result of multiple felony and misdemeanor convictions on July 25, 2018. As a condition of his probation, MCDANIEL was subject to warrantless searches at reasonable times.
The case was investigated by the Federal Bureau of Investigation, the Kannapolis Police Department, and the North Carolina Department of Public Safety--Community Corrections division. The case was prosecuted by Assistant United States Attorney Craig M. Principe.
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Boston Man Indicted for Distributing Fentanyl and Crack CocaineRead the Press Release
BOSTON – A Boston man was yesterday today in federal court in Boston with drug distribution.
David A. Wood, 30, was indicted on two counts of distribution and possession with intent to distribute fentanyl, one count of distribution and possession with intent to distribute crack cocaine, and one count of possession with intent to distribute fentanyl. Wood was previously charged by criminal complaint and has been in custody since his arrest on Dec. 19, 2019.
According to the charging documents, Wood distributed fentanyl in Boston on Nov. 26 and Dec. 3, 2019, and distributed crack cocaine in Boston on Dec. 10, 2019.
The charge of distributing or possessing with intent to distribute controlled substances provides for a sentence of up to 20 years in prison, three years to a lifetime of supervised release, and a fine of up to $1 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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.
Belgian National Sentenced for Scam Targeting Charities and Law FirmsRead the Press Release
BOSTON – A Belgian man was sentenced today in federal court in Boston for participating in an e-mail scam that used counterfeit cashier’s checks to defraud charities and law firms.
Aref Zokita Said, 37, of Belgium, was sentenced by U.S. District Court Judge Douglas P. Woodlock to 60 months in prison, three years of supervised release and ordered to pay restitution in the amount of $1,631,478. In October 2019, Said pleaded guilty to eight counts of wire fraud and conspiracy to commit wire fraud.
Beginning no later than August 2013, Said and his co-conspirators defrauded law firms and non-profits, including charities, by sending them fraudulent cashier’s checks and convincing them to wire money to members of the scheme, with the false assurance that the fake checks would cover the expense. Once the checks were discovered to be fraudulent—after the victims’ bank accounts were debited—the victims were left with thousands of dollars in losses, having unwittingly forwarded their own money to a member of the conspiracy.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Joseph W. Cronin, Special Agent in Charge for the U.S. Postal Inspection Service made the announcement today. Assistant U.S. Attorney Kristen Kearney of Lelling’s Securities and Financial Fraud Unit prosecuted the case.
Athens Couple Sentenced to 17+ Years in Prison for Distributing Meth Through the Mail ServiceRead the Press Release
ATHENS, Ga. – A married couple engaged in a drug trafficking scheme moving methamphetamine through the U.S. mail service was sentenced for their crimes, announced Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. Amy Berg, 46, and Joshua Woodey, 39, both of Athens-Clarke County, were sentenced to federal prison on January 8, 2020 by U.S. District Judge C. Ashley Royal. Berg was sentenced to 210 months in prison for possession of methamphetamine with intent to distribute. Woodey was sentenced to 235 months in prison for possession of methamphetamine with intent to distribute. There is no parole in the federal system.
The United States Postal Inspection Service (USPIS) was informed that Berg was mailing a package containing suspected methamphetamine on March 1, 2018. A search warrant was executed and investigators discovered the package contained 42 grams of methamphetamine and 16 grams of heroin. Again, the USPIS was told on September 7, 2018 about a second packed Berg was sending, containing more suspected methamphetamine. A legal search revealed the contents contained three grams of methamphetamine. A search warrant of the couple’s shared Athens home was issued on September 12, 2018. Police discovered methamphetamine, heroin, marijuana as well as five other illegal substances. In addition, police located a Winchester .22 rifle, a Smith & Wesson 9mm pistol, ammunition, tally sheets referencing amounts sold and owed in drug transactions, a marijuana grow room and other items used in drug trafficking. The defendants’ cellphones contained evidence of drug transactions. Both Berg and Woodey admitted to drug trafficking.
“Drug dealers need to know that if they use the U.S. mail service to deal drugs, they will be caught and prosecuted to the fullest extent of the law,” said U.S. Attorney Charlie Peeler. “I want to commend the U.S. Postal Inspection Service, the Northeast Regional Drug Task Force and the Athens-Clarke County Police Department for their excellent work in this case which resulted in these two drug dealers going to federal prison for a long time.”
"The Postal Service has no interest in being the unwitting accomplice to anyone using the U.S. Mail to distribute illegal drugs or other harmful substances,” said David M. McGinnis, U.S. Postal Inspector in Charge of the Charlotte Division. “I fully commend the hard work and countless hours put forth by all the law enforcement agencies."
“The Northeast Georgia Regional Drug Task Force, the Athens-Clarke County Police Department and its law enforcement partners are committed to protecting our citizens and community by eradicating dangerous drugs such as methamphetamine and heroin,” said Lt. Mark Malueg, Athens-Clarke County Police Department and Northeast Georgia Regional Drug Task Force. “These dangerous drugs and their criminal enterprises are a leading cause to violent crime, and we will not allow our citizens and community to be victimized by their destructive effects.”
The case was investigated by the United States Postal Inspection Service (USPIS), the Northeast Regional Drug Task Force and the Athens-Clarke County Police Department and was prosecuted by Assistant U.S. Attorney Kimberly S. Easterling. 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.
Arsonist who targeted Savannah's historic Gryphon Tea Room sentenced to federal prisonRead the Press Release
SAVANNAH, GA: A Savannah man has been sentenced to five years in federal prison for setting fires in a historic Savannah restaurant.
Chase Anthony Davis, 31, of Savannah, was sentenced to 60 months in prison in U.S. District Court, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Davis also will be required to serve a period of supervised release after completion of his prison term. There is no parole in the federal system.
A federal jury convicted Davis in October 2019 on an arson charge after a three-day trial. According to evidence presented at trial, on the evening of May 8, 2019, Davis, then an employee of the Gryphon Tea Room, broke into the landmark restaurant located at 337 Bull Street in Savannah’s Historic District. Davis set six separate fires in the dining room area of the restaurant owned by the Savannah College of Art and Design. The fires self-extinguished, and the property damage caused to the restaurant has since been restored.
Gryphon shares space with The Arts Café and The Scottish Rite Temple and is closely connected with numerous historic residential structures and St. John’s Episcopal Church. It is housed in an adapted early 20th century apothecary constructed between 1913 and 1926.
“This bungled arson could have caused tremendous physical and cultural damage to historic structures in Savannah,” said U.S. Attorney Christine. “Fortunately the tablecloths were fire-retardant, and the Savannah Fire Department quickly took care of the rest and kept any damage to a minimum. And now the arsonist will have considerable time behind bars to ponder his felonious folly.”
“This is another example of how ATF partners with our state and local agencies to fight violent crime, including the crime of arson,” said Lenwood Reeves, Resident Agent in Charge of the Savannah Field Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “Arson not only does millions of dollars’ worth of damage each year but it endangers the lives of innocent bystanders, firefighters and first responders battling to extinguish these fires. This small fire could have very easily escalated into a major catastrophe, including the loss of life and property.”
This case was investigated by the ATF and the Savannah Police Department, and was prosecuted for the United States by Assistant U.S. Attorneys Joshua Bearden and Jenna Solari.
Armed Career Criminal Sentenced to 15 Years for Illegally Possessing FirearmRead the Press Release
Memphis, TN - Charles Eason, 44, has been sentenced to 15 years in federal prison for being a convicted felon illegally in possession of a firearm. D. Michael Dunavant, U.S. Attorney announced the sentence today.
According to information presented in court, Memphis police officers pulled over the car Eason was driving in January 2017. Eason had a loaded shotgun in his possession. Eason had numerous prior felony convictions at the time, including five Tennessee convictions for promotion of the manufacture of methamphetamine.
Eason pleaded guilty to being a felon in possession of a firearm, in violation of 18 U.S.C. § 922(g). The default sentencing range for a § 922(g) violation is zero to 10 years in prison. However, under the Armed Career Criminal Act (ACCA), a defendant convicted of § 922(g) who has three prior convictions for serious drug offenses is subject to an enhanced mandatory minimum sentence of 180 months.
In a prior appeal in this case, the Sixth Circuit Court of Appeals held that Eason’s five prior convictions for promotion of the manufacture of methamphetamine were serious drug offenses under the ACCA. Upon resentencing on remand on January 10, 2020, U.S. District Judge Sheryl H. Lipman sentenced Eason to 180 months (15 years) under the ACCA.
U.S. Attorney D. Michael Dunavant said, "Serious drug offenses are NOT non-violent crimes, and convicted felons who possess firearms are an inherent danger to the community. In this case, Eason was a career drug offender who possessed a loaded firearm despite his multiple prior convictions for serious drug offenses involving the manufacture of methamphetamine. There is and ought to be a significant consequence for such recidivist criminal behavior, and this mandatory sentence is just punishment for a recalcitrant armed drug offender."
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Memphis Police Department.
Special Assistant U.S. Attorney Bryce Phillips and Assistant U.S. Attorney Kevin Ritz prosecuted this case on behalf of the government.
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Angier Man Sentenced for Illegally Possessing Firearms and NarcoticsRead the Press Release
NEW BERN – United States Attorney Robert J. Higdon, Jr. announced that in federal court, United States District Judge Louise W. Flanagan sentenced CURTIS PATRICK HODGES, 38, of Angier, NC, to 90 months imprisonment, followed by 5 years of supervised release.
HODGES was named in an Indictment filed on March 21, 2019 charging him with Possession with Intent to Distribute a Quantity of Cocaine, Cocaine Base (crack), and Marijuana, Possession of a Firearm by a Convicted Felon, and Possession of a Firearm in Furtherance of a Drug Trafficking Crime on March 15, 2018. On August 15, 2019, with a written plea agreement, HODGES pled guilty to Possession with Intent to Distribute a Quantity of Cocaine, Cocaine Base (crack), and Marijuana and Possession of a Firearm in Furtherance of a Drug Trafficking Crime.
According to the investigation, in January of 2018, investigators with the Harnett County Sheriff’s Office (HCSO) conducted two controlled purchases of cocaine and cocaine base (crack) on January 22, 2018, and January 24, 2018.
On March 15, 2018, the HCSO’S Special Response Team executed a search warrant at the residence of HODGES on Newbury Drive in Angier, North Carolina. Investigators made contact with HODGES and placed him into handcuffs while the residence was searched. During the search, investigators located a total of $29,836.06 in United States currency, a loaded Smith and Wesson Shield .40 caliber pistol, a Glock Model 26 .9mm handgun, 2 bags of cocaine, 1 bag of cocaine base, 2 digital scales, a glass mason jar containing 28 grams of marijuana, a shipping box containing stolen body armor, and .40 caliber ammunition. Laboratory testing of the controlled substances which were recovered revealed 12.28 grams of cocaine base and 40.92 grams of cocaine.
Based upon the preceding, HODGES is accountable for 9.05 kilograms of marijuana, 40.92 grams of cocaine, and 12.28 grams of cocaine base, which have a converted drug weight of 61.09 kilograms.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
This case is also 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 United States Attorney’s Office for the Eastern District of North Carolina implements the PSN Program through its Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Harnett County Sheriff’s Office conducted the investigation. Assistant United States Attorney Daniel William Smith represented the government.
Anchorage Man Convicted of Possession of Methamphetamine with Intent to DistributeRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that Gian Carlo Clemente Pangilinan, 23, of Anchorage, was found guilty after a three-day federal jury trial. The jury found Pangilinan guilty of one count of possession of more than 50 grams of methamphetamine with the intent to distribute.
According to evidence presented at trial, Anchorage Police were looking for Pangilinan on July 9, 2019, and found him in the Burger King parking lot near Penland Parkway. Once Pangilinan saw the police, he scaled a fence and fled on foot into the Penland Parkway neighborhood, shedding items of clothing and other personal items along the way, to include his cellular telephone and a baggie containing 162 grams of 99 percent pure methamphetamine. Despite his attempt to evade law enforcement, the Anchorage Police pursued Pangilinan on foot and took him into custody.
Evidence pulled from Pangilinan’s cellular telephone in the form of text messages and direct messages on social media established that, since December 2018, Pangilinan had been distributing many different types of illegal controlled substances (to include heroin, cocaine, and methamphetamine) in quantities ranging from one gram to several ounces. Specifically, individuals would contact Pangilinan via text or direct message on social media asking for different quantities of illegal controlled substances; Pangilinan would then respond with a price and agree to meet up with them.
The jury also heard evidence of a separate incident that occurred in February 2019, when the Anchorage Police responded to a call of shots fired near the Mountain View car wash. When the Anchorage Police attempted to contact Pangilinan, he attempted to flee on foot. During the chase, Pangilinan again began shedding personal items to include his cellular telephone and a baggie containing methamphetamine.
At the time of the July 2019 incident, Pangilinan was out on release from the State of Alaska in four pending criminal cases, to include Vehicle Theft in the First Degree, Assault in the Third Degree, Resisting Arrest, and Violating Conditions of his Release
As a result of Pangilinan’s federal conviction, he faces a mandatory minimum of 10 years up to life in federal prison, and a fine of up to a $10,000,000. 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 Anchorage Police Department (APD), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the Drug Enforcement Administration (DEA) conducted the investigation leading to the successful prosecution of this case. This case is being prosecuted by Assistant U.S. Attorneys Kelly Cavanaugh and Kyle Reardon.
4-Time Convicted Felon Pleads Guilty to Possessing FirearmRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Ronald Rice, aka Lil Ron, 35, Madison, Wisconsin, pleaded guilty today in U.S. District Court in Madison to illegal possession of a firearm by a felon. This charge carries a maximum penalty of 10 years in prison.
During the plea hearing, Rice admitted that, on May 19, 2019, while at a party on North Wickham Court in Madison, he possessed a Glock .40 caliber firearm. At the time of the incident, Rice was on federal supervised release for distributing crack cocaine.
As part of the plea agreement, the parties agreed to recommend to the Court that Rice receive a prison sentence of 71 months. Rice admitted as part of his plea agreement that he was on supervised release at the time he possessed the firearm, and that he violated his conditions of supervised release by possessing a firearm. The parties also agreed to recommend to the court that Rice receive a sentence of 24 months, to be served consecutive to the 71 months, for his violation of the supervised release conditions. Chief U.S. District Judge James D. Peterson scheduled Rice’s sentencing for April 8, 2020, at 10:00 a.m.
In addition to the federal drug conviction, Rice has three other felony convictions, including a state charge of possessing cocaine with intent to distribute.
The charge against Rice is the result of an investigation conducted by the Madison Police Department. The prosecution of this case has been handled by Assistant U.S. Attorney Daniel J. Graber.
The charge against Rice was brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition, and violent crimes and drug crimes that involve the use of firearms.
9 January 2020
Wilson Father and Daughter Sentenced for Counterfeit Access Device OffensesRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, Chief United States District Judge James C. Dever III sentenced quenchelle houpe, 22, and her father BRIAN HOUPE, SR., of Wilson, North Carolina to 39 months imprisonment each, followed by three years of supervised release. On May 20, 2019, QUENCHELLE HOUPE pled guilty to one count of conspiracy to traffic in counterfeit access devices, and to one count of trafficking in counterfeit access devices. July 22, 2019, BRIAN HOUPE, SR. pled guilty to the same offenses.
From April 2015 to September 2018, the HOUPES executed a credit card fraud scheme involving the purchase of merchandise using counterfeit credit cards encoded with account information that had been stolen from bank customers. More than 1,000 fraudulent purchase transactions were conducted using more than 793 stolen account numbers. The crimes, which resulted in a total loss of $393,601.59, were committed at Sam’s Club stores located in several east coast states including North Carolina, South Carolina, Virginia, and New York.
Both defendants were ordered to pay restitution.
The United States Secret Service and the Rocky Mount Police Department conducted the investigation. Assistant United States Attorney Toby Lathan represented the government.
Warren County Man Sentenced as Armed Career CriminalRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, United States District Judge James C. Dever III sentenced KIMJUAN DWANE ELLIS, JR., 25, of Warrenton to 235 months imprisonment, followed by 5 years of supervised release. He was found to be an Armed Career Criminal thereby subjecting him to a minimum term of imprisonment of 15 years.
ELLIS was named in an Indictment filed on January 9, 2019, charging him with being a felon in possession of ammunition. On August 20, 2019, ELLIS pled guilty to that charge.
According to the investigation, on October 19, 2018, officers with the Norlina Police Department responded to a shooting in the parking lot of the Blue Waves convenience store in Norlina, North Carolina. The store’s surveillance camera captured ELLIS shooting another man in the chest after an apparent argument. ELLIS fled the scene after the shooting. The victim was transported to Duke University Medical Center where he was treated for his wounds and survived. Officers recovered a spent shell casing in the area where the video captured the shooting. The gun used by ELLIS was never recovered. ELLIS was later arrested in a vehicle with two other occupants, along with additional firearms and ammunition, one of which had been stolen. None of those firearms, however, was used in the shooting.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
This case is also 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 United States Attorney’s Office for the Eastern District of North Carolina implements the PSN Program through its Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Warren County Sheriff’s Office, and the Norlina Police Department conducted the investigation of this matter jointly. Assistant United States Attorney Robert J. Dodson prosecuted the case for the government.
Violeta E. Manahan Sentenced to Federal Prison for Conspiring to Distribute MethamphetamineRead the Press Release
SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Violeta E. Manahan, age 59, from Dededo, Guam, was sentenced in the United States District Court of Guam to 41 months imprisonment for Conspiracy to Distribute Methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and 846. The Court also ordered three years of supervised release following imprisonment, 50 hours of community service, and a mandatory $100 assessment fee. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
From January 1, 2013, through March 7, 2017, the United States Postal Inspection Service and the Drug Enforcement Administration intercepted two packages in the mail. The packages were found to contain over 110 grams of methamphetamine hydrochloride (“ice”). The investigation revealed that Jimmy Law mailed the packages to his ex-girlfriend, Manahan. Once on Guam, Manahan distributed the drug to others on island.
U.S. Attorney Anderson stated, “Our federal law enforcement partners continue to aggressively interdict drug shipments destined for Guam via our mail system. We will identify and target any people or organizations that engage in this illicit conduct. As this case reveals, there are substantial federal penalties for aiding or conspiring with others to distribute controlled substances. Those with any role in drug trafficking are potential targets for federal prosecution.”
This case was the result of a joint investigation by the United States Postal Inspection Service and the Drug Enforcement Administration. The case was prosecuted by Rosetta L. San Nicolas, Assistant United States Attorney in the District of Guam.
Venezuelan National Sentenced for Stealing ATM Card NumbersRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Troy L. Nunley sentenced Ricardo Gabriele-Plage, 39, to four years in prison for an identity theft scheme, U.S. Attorney McGregor W. Scott announced.
According to court documents, in 2017, Gabriele-Plage, a Venezuelan national, traveled to the United States for the purpose of stealing bank customers’ account information. During the course of the scheme, at least five times Gabriele-Plage and his co-conspirators placed skimming devices in ATMs and installed covert cameras to record ATM users’ personal identification numbers. While the skimmers were in place, hundreds of bank customers used the ATMs. Gabriele-Plage’s co‑conspirators used the stolen account information to create fraudulent credit and debit cards and make unauthorized charges.
On Aug. 5, 2017, Gabriele-Plage and co-defendant Luis Jose Ruiz Gainza, 45, a Venezuelan national then-residing in Mexico, were arrested in Sacramento County. During a subsequent search of their hotel room in Rancho Cordova, law enforcement found a magnetic stripe reader and encoder, skimmers, covert cameras, and tools used to repair skimmers and install the devices in ATMs.
This case was the product of an investigation by Homeland Security Investigations and the Sacramento County Sheriff’s Department. Assistant U.S. Attorney Brian A. Fogerty prosecuted the case.
On Nov. 21, 2019, Ruiz Gainza was sentenced to four and a half years in prison.
Un hombre del Condado de Orange acusado de delitos federales de odio adicionales por el ataque del 28 de diciembre del 2019 con un machete en la casa de un rabinoRead the Press Release
Eric Dreiband, el Fiscal General Auxiliar de la División de Derechos Civiles, Geoffrey S. Berman, el Fiscal Federal para el Distrito Sur de Nueva York y William F. Sweeney Jr., el Director Auxiliar Encargado de la Oficina del FBI en Nueva York anunciaron hoy que Grafton Thomas ha sido acusado formalmente por un gran jurado de cinco cargos de provocación deliberada de lesiones corporales a cinco víctimas por motivos de la religión de las mismas y cinco cargos de obstrucción al libre ejercicio de religión en un intento de asesinato, los cuales son delitos de odio federales, en relación con su alegado ataque con machete durante una ceremonia del día festivo de Janucá en la casa de un rabino en Monsey, Nueva York, la noche del 28 de diciembre del 2019.
«Desde antes de nuestro establecimiento como nación y desde aquel entonces, este país ha ofrecido refugio a personas de distintos rincones del mundo que han sido víctimas de violencia y de otros tipos de persecución por sus creencias y su derecho al culto», afirmó el Fiscal General Auxiliar de la División de Derechos Civiles, Eric Dreiband. «Hoy en día, Estados Unidos sigue siendo un modelo de libertad para personas perseguidas por motivos de su religión por todo el mundo y un ataque violento contra alguien a causa de su religión no solo es ilegal, sino que también va en contra de todo lo que nuestra nación representa. El Departamento de Justicia de los Estados Unidos seguirá enjuiciando a cualquier persona que se dedique a tales conductas con todo el peso de la ley».
«El 28 de diciembre del 2019, Grafton Thomas supuestamente llegó armado con un machete de 18 pulgadas y entró en la casa de un rabino, donde decenas de personas se habían juntado por el día festivo», dijo el Fiscal Federal para el Distrito Sur de Nueva York, Geoffrey S. Berman. «Ahora alegamos que lo hizo con la intención de convertir a sus víctimas en tales por motivos de su religión. Según las alegaciones, con su cara tapada bajo una bufanda, acuchilló y apuñaló a los congregantes reunidos y huyó, dejando atrás al menos a cinco víctimas. Thomas se enfrenta a una pena de cadena perpetua por sus presuntos actos violentos de perjuicio e intolerancia».
«Cuando las acciones de un individuo traspasan el umbral de un delito federal, tal y como alegamos que el Sr. Grafton hizo en este caso, actuaremos rápidamente», declaró el Director Auxiliar del FBI, William F. Sweeney, Jr. «El mensaje de los cargos de hoy debería ser claro como el agua: el FBI no tolerará violencia contra nadie. Nosotros, junto con nuestros socios, haremos a cualquier persona que cometa delitos como este rendir cuentas de sus acciones. Las sanciones federales por este tipo de ataque son severas y justificadas. En este caso, la comunidad local ayudó, y sus acciones fueron esenciales para la preservación de vidas y llevaron directamente a la captura del Sr. Grafton. Le toca al resto de nuestra comunidad conjuntamente dar un paso adelante y echar una mano. No dejen una brecha abierta para que odio se propague y no hagan caso omiso de este tipo de conducta, tachándolo como el problema de otra persona. Hay que abordarlo y denunciar actividades sospechosas a las autoridades».
Según los alegatos contenidos en la acusación formal y la querella:
El 28 de diciembre del 2019, Thomas entró en la casa de un rabino en Monsey, Nueva York, la cual es adyacente a la sinagoga del rabino, durante la celebración del fin de Shabat y el séptimo día de Jauncá. Thomas declaró ante decenas de congregantes que «nadie se va a ir» y atacó al grupo con un machete de 18 pulgadas. Al menos cinco víctimas fueron hospitalizadas con lesiones graves, entre ellos tajos, laceraciones profundas, un dedo amputado y una fractura de cráneo.
Tras el ataque, Thomas viajó en carro a la Ciudad de Nueva York. Fue detenido en Harlem por miembros de la Policía de la Ciudad de Nueva York. Los agentes que respondieron a la escena observaron lo que parecía ser sangre en las manos y ropa de Thomas y el olor de lejía que desprendía de su vehículo. Un registro del vehículo de Thomas llevó a la confiscación de, entre otras cosas, un machete que parecía tener encima rastros de sangre seca. Los agentes del orden público registraron posteriormente el domicilio y teléfono celular según las órdenes de registro. El domicilio contenía diarios manuscritos con varias páginas de referencias antisemíticas, las que incluían referencias a «Adolf Hitler» y «la cultura Nazi». El celular de Thomas contenía búsquedas en Internet que se remontaban al menos a noviembre del 2019 de términos como «templos sionistas» en Staten Island y Nueva Jersey, «por qué Hitler odiaba a los judíos» y «compañías destacadas fundadas por judíos en Estados Unidos», así como una visita el día del ataque a una página web que contenía un artículo titulado «Nueva York fortalece la presencia de la policía en barrios judíos tras ataques antisemíticos. Aquí tienes la información más importante».
Se le acusa a Thomas, de 37 años, de cinco cargos de provocación intencional de lesiones corporales e intento de asesinato de cinco víctimas por motivos de su religión, en contra de la Sección 249 del Título 18 del Código de los EE. UU., y cinco cargos de obstrucción al libre ejercicio de religión en un intento de asesinato, en contra de la Sección 247 del Título 18 del Código de los EE. UU. Cada uno de los diez cargos acarrea una pena máxima de cadena perpetua. La máxima pena posible en este caso la dicta el Congreso y se incluye aquí únicamente para fines informativos, ya que es el juez quién determinará la pena verdadera.
El Fiscal General Auxiliar Dreiband y el Sr. Berman elogiaron los esfuerzos extraordinarios del FBI, la Fiscalía de Distrito del Condado de Rockland, la Policía de Ramapo, la Oficina del Sheriff del Condado de Rockland, la Policía Estatal de Nueva York, la Policía de Clarkstown y la Policía de la Ciudad de Nueva York.
La Unidad contra el Terrorismo y Estupefacientes de la Oficina, su División en White Plains y la Unidad de Derechos Civiles de la División Civil de la Oficina están a cargo de este caso. Los Fiscales Federales Auxiliares Michael K. Krouse, Lindsey Keenan y Lara K. Eshkenazi son los encargados del enjuiciamiento.
Los cargos contenidos en la acusación formal son simplemente alegaciones, y al acusado se lo considera inocente mientras no se pruebe su culpabilidad ante un tribunal de justicia.
El año 2020 es el 150º aniversario del Departamento de Justicia. Para aprender más sobre la historia de nuestra agencia, vaya a www.Justice.gov/Celebrating150Years.
Anexo(s):
Download grafton_thomas_indictment_signed.pdf
UK Resident Pleads Guilty to Possession of Stolen Credit Card CredentialsRead the Press Release
SAN FRANCISCO – Malik Mohsan Abdullah pleaded guilty to the possession of counterfeit access devices in connection with his receipt and transfer of stolen credit card information, announced United States Attorney David L. Anderson and United States Secret Service Special Agent in Charge Thomas C. Edwards.
According to the plea agreement, Abdullah, 36, a resident of the United Kingdom, received 5,674 stolen credit card credentials via email during the period from January through March 2017. These credentials included cards issued by U.S. banks and belonging to individuals in the Northern District of California. The stolen credentials included full credit card numbers, expiration dates, verification numbers, addresses, and the countries connected to the accounts. According to the plea agreement, Abdullah knew that a significant number of the stolen credentials were used to defraud the rightful cardholders. In the plea agreement, Abdullah acknowledged that as of May 13, 2019, approximately $124,579.53 in unauthorized charges had been attributed to the stolen cards after Abdullah received them.
According to an affidavit filed by a special agent of the U.S. Secret Service, investigators working with a cooperator identified a vendor offering stolen credit cards for sale on a dark web Internet forum. Investigators were able to trace digital currency transactions with the vendor to an email address, whose owner supervised and controlled the flow of stolen credit cards to multiple suspects across the United States, Europe, and the Middle East. That account owner transferred thousands of stolen payment card numbers to Abdullah. Abdullah was arrested by authorities in the United Kingdom and extradited to the United States.
Abdullah was charged by information on December 16, 2019, with one count of possession of fifteen or more counterfeit access devices, in violation of 18 U.S.C. § 1029(a)(3). Abdullah pleaded guilty to that count.
The sentencing hearing for Abdullah is scheduled for February 26, 2020, before the Honorable Edward M. Chen, United States District Judge. Pursuant to the terms of his plea agreement, Abdullah has agreed that a reasonable and appropriate disposition of his case would include a term of imprisonment of two (2) years, three (3) years of supervised release, payment of a $100 special assessment, and a fine to be imposed by the court. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
This prosecution is the result of an investigation by the U.S. Secret Service and is being prosecuted by the Special Prosecutions Section of the U.S. Attorney’s Office.
U.S. Attorney's Office Resolves Fair Housing Act Claims Against Snowmass Village Homeowners Association for Refusing to Allow Disabled Resident to Live with Assistance DogRead the Press Release
DENVER – U.S. Attorney Jason R. Dunn announced today that United States District Judge Daniel Domenico has approved an order resolving claims that Creekside Condominium Homeowners Association (Creekside HOA), located in Snowmass Village, Colorado, violated the Fair Housing Act when it failed to allow a resident with a disability to stay at the complex with her assistance dog.
In a complaint filed in federal district court in Colorado last week, the United States alleged that Creekside HOA violated the Fair Housing Act when it repeatedly denied requests by the resident for an exception to the HOA’s “no dogs” policy to permit her to live with her assistance animal, a dog named Tallulah. The resident had experienced anxiety and depression and acquired Tallulah to alleviate the symptoms of her disabilities. The resident requested permission to live with the dog as a reasonable accommodation under the Fair Housing Act, and submitted numerous forms of documentation from mental health and medical professionals in support. Creekside HOA repeatedly denied the requests, which forced the resident to live elsewhere for several months, including spending more than a week living in a van, until Creekside HOA finally agreed to permit the resident to live with her assistance animal at the complex.
The United States further alleged in its complaint that in response to the resident asserting her rights under the Fair Housing Act, Creekside HOA retaliated against the resident by levying a $500 special assessment against each homeowner in the complex and informing homeowners that the reason for the special assessment was the resident’s request for a reasonable accommodation and potential litigation.
To resolve the claims, the United States and Creekside HOA jointly submitted a consent order to the court, which Judge Domenico approved on January 7, 2020. The consent order resolves the claims set forth in the United States’ complaint. Under the terms of the consent order, Creekside HOA must pay the resident $50,000, adopt policies regarding reasonable accommodation for individuals with disabilities under the Fair Housing Act, and train the HOA’s Board of Managers on the requirements of the Fair Housing Act. The HOA also agreed to issue an apology to the resident.
“Housing providers are required by law to make reasonable accommodations for individuals with disabilities,” said U.S. Attorney Jason Dunn. “We are pleased that this HOA is adopting policies and will conduct training that complies with the Fair Housing Act. These are important protections to ensure that individuals with disabilities have equal housing opportunities.”
This lawsuit stems from a complaint that the resident filed with the United States Department of Housing and Urban Development (HUD), which, after an investigation by HUD’s Office of Fair Housing and Equal Opportunity (FHEO), found reasonable cause that discrimination and retaliation had occurred. The resident made an election under the Fair Housing Act to seek to have the Department of Justice, through the U.S. Attorney’s Office, file a complaint on her behalf.
The United States Attorney’s Office for the District of Colorado, the U.S. Department of Justice’s Civil Rights Division, and HUD’s FHEO all give high priority to the enforcement of the Fair Housing Act. Additional information about the Fair Housing Act can be found on HUD’s website at https://www.hud.gov/program_offices/fair_housing_equal_opp/fair_housing_act_overview
This case was handled by Assistant U.S. Attorney Zeyen Wu.
U.S. Attorney's Office Collects over 11M in Criminal and Civil Actions for Fiscal Year 2019Read the Press Release
Knoxville, Tenn - U.S. Attorney J. Douglas Overbey announced today that the Eastern District of Tennessee collected $11,138,905.90 in criminal and civil actions in Fiscal Year 2019. Of this amount, $9,007,943.97 was collected in criminal actions and $2,130,961.93 was collected in civil actions.
Additionally, the Eastern District of Tennessee collaborated with other U.S. Attorneys’ Offices and components of the Department of Justice to collect an additional $35,218,323.69 in cases pursued jointly by these offices. Of this amount, $59,667.48 was collected in criminal actions and $35,158,656.21 was collected in civil actions.
“Criminal and civil monetary penalties provide additional deterrence to those who seek to violate federal laws. The U.S. Attorney’s Office continues to strive towards insuring that ill-gotten gains are collected and returned to the federal coffers for reimbursement for victims of crimes. Additionally, our stringent enforcement of civil and criminal monetary penalties provide an additional level of punishment for the offenders,” added U.S. Attorney J. Douglas Overbey.
The U.S. Attorneys’ Offices, along with the Department of Justice litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. Restitution is paid to the victim, and criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Additionally, the U.S. Attorneys’ office of the Eastern District of Tennessee, working with partner agencies and divisions from the FBI, IRS and other law enforcement agencies, collected $3,527,831 in asset forfeiture actions in FY 2019. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for various law enforcement uses.
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U.S. Attorney's Office Collects over $3.7 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2019Read the Press Release
United States Attorney Ron Parsons announced today that the District of South Dakota collected $3,725,183.70 in criminal and civil actions in FY 2019. Of this amount, $3,378,146.19 was collected in criminal actions and $347,037.51 was collected in civil actions. The overall 2019 collections figure reflects a 72% increase over the FY 2018 total of $2,163,413.53.
As a whole, the Department of Justice collected over 9 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2019.
Additionally, the District of South Dakota, working with partner agencies and divisions, collected $69,526 in asset forfeiture actions in FY 2019. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
“The recovery of these funds is a critical component of our mission,” said U.S. Attorney Parsons. “The impressive increase in recovered dollars in 2019 is testament to the excellent work of our Civil Division and Financial Litigation Unit under the leadership of our Civil Chief Diana Ryan. These recovered dollars continue to play a vital role in helping crime victims and preventing losses to the American taxpayer.”
In addition to collecting $3.38 million in FY 2019, the District of South Dakota has already collected $20,250,000 in FY 2020 in a false claims act settlement.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
U.S. Attorney Trent Shores Announces the Distribution of $2 Million Seized in Operation Killa Gorilla to Local Agencies on Law Enforcement Appreciation DayRead the Press Release
United States Attorney Trent Shores announced that 17 law enforcement agencies will receive $2 million in seized funds from the drug operation Killa Gorilla. U.S. Attorney Shores also highlighted the essential work performed by the men and women of law enforcement and thanked them for their service to the people of Oklahoma. The announcement came at a press conference held on Law Enforcement Appreciation Day at the Broken Arrow Police Department.
“It is a privilege for me and my team to work daily with these agents and officers. Law enforcement is an honorable profession. These brave men and women embody a dogged, unrelenting spirit. They face obstacles and impending danger, providing for the safety of our communities. They have my gratitude and respect,” said U.S. Attorney Trent Shores. “Operation Killa Gorilla is just one example of the essential collaborative work officers and agents are performing to disrupt the sale of illegal drugs in the Northern District of Oklahoma. Criminals do not get to keep their ill-gotten gains. It is only appropriate that the forfeited funds go back to the departments to supplement needed training, equipment and other public safety initiatives.”
Eight law enforcement agencies from Oklahoma will each receive a portion of the seized money. The $2 million was seized from profits made by the defendants from the illegal sale of synthetic cannabinoids, also known as K2 or Spice. The IRS, Drug Enforcement Administration, U.S. Postal Inspection Service and five Texas law enforcement agencies will also receive a portion of the funds for their work in the operation.
The Department of Justice and Department of the Treasury Asset Forfeiture Programs remove the tools of crime from the criminal organizations, deprive wrongdoers of the proceeds for their crimes, recover property that may be used to compensate victims, and deter crime. An ancillary benefit of asset forfeiture is the potential to share federal forfeiture proceeds with cooperating local law enforcement agencies through equitable sharing.
These monies supplement and enhance, not supplant, appropriated agency resources. Oklahoma law enforcement agencies receiving seized funds are:
Broken Arrow Police Department- $255, 716
Cherokee Nation Marshal Service- $85,000
Claremore Police Department- $85,000
Owasso Police Department- $85,000
Rogers County Sheriff’s Office- $225,716
Sapulpa Police Department- $262, 716
Tulsa Police Department- $262, 716
Army National Guard- $19,893
“This is an important victory for communities of the Tulsa metropolitan area. Not only were the criminals prosecuted for their crimes, but the government has seized a significant portion of their illegal proceeds through asset forfeiture,” said Kevin Caramucci, IRS Assistant Special Agent in Charge of the Dallas Field Office. “The role of IRS Criminal Investigation is to follow the money so we can financially disrupt and dismantle these criminal organizations. This investigation is a great example of local and Federal law enforcement working together to stop a criminal activity that is causing harm to our communities.”
“Today serves as a great reminder to any and all drug traffickers operating in Northeastern Oklahoma. The DEA will not tolerate your actions and will work tirelessly with our state, local, federal, and tribal law enforcement counterparts to arrest you and seize your illicit funds derived from drug trafficking and/or money laundering. This case is the perfect example of the importance of joint investigations and how leveraging each other’s resources while working toward a common goal can result in tremendous success and keep the citizens of Oklahoma safer,” said John P. Scott, Assistant Special Agent in Charge, DEA Oklahoma District.
In 2013, the Bureau of Indian Affairs and Tulsa metropolitan area police departments began their own investigations in response to systemic problems in their communities resulting from the sale and use of synthetic cannabinoids. Area officers and agents discovered the drug was being sold out of smoke shops, owned in part by John James, operating on Indian Land. The Drug Enforcement Administration and IRS were notified and joined the Bureau of Indian Affairs in launching the Organized Crime Drug Enforcement Task Forces (OCDETF) Operation Killa Gorilla. The investigation’s name reflected the name one of the propriety brands manufactured by one of the defendants.
During the investigation, the DEA agents and task force officers assigned from local police departments conducted additional undercover purchases of the cannabinoids and executed search and arrest warrants. The IRS and financial analyst U.S. Attorney’s Office analyzed the money trail. The final defendants pleaded guilty in August 2017.
Learn more about the Justice Department’s Asset Forfeiture Program here.
U.S. Attorney Brady Recognizes the Work of Western Pennsylvania’s Federally-Deputized Task Force Officers on Law Enforcement Appreciation DayRead the Press Release
PITTSBURGH, PA – United States Attorney Scott W. Brady used Law Enforcement Appreciation Day, January 9, 2020, to show support and promote respect for law enforcement officers across the Western District of Pennsylvania and beyond.
"Today we say a loud ‘THANK YOU’ to the men and women of law enforcement, who each day go to the most dangerous parts of our communities and deal with our most violent citizens, so that we and our families can be safe," tweeted U.S. Attorney Brady. "We owe them a debt of gratitude we can never repay."
Western Pennsylvania is fortunate to have a long history of cooperative law enforcement. Our most significant investigations and prosecutions have been developed through collaboration among federal, state and local law enforcement agencies. That collaboration includes state and local Task Force Officers who are deputized to perform the same functions as federal agents.
U.S. Attorney Brady said, "Task Force Officers, working in collaboration with federal agents, play a vital role in safeguarding our communities by bringing criminals to justice. Every day they work to remove the most violent offenders from our communities, including drug traffickers, illegal gun possessors, dangerous fugitives and immigration violators. Federal law enforcement could not be as effective without the willingness of state and local law enforcement agencies to assign their officers to Federal Task Forces. Simply put, they help us make our streets safer."
As the lead federal law enforcement agency in Western Pennsylvania, the U.S. Attorney’s Office works cooperatively with law enforcement agencies at all levels: city police departments, county sheriffs' departments, county prosecutors, state and federal law enforcement agencies and, on occasion, foreign law enforcement agencies and international police. Task Force Officers have worked with all of these federal partners: the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; U.S. Immigration and Customs Enforcement/Homeland Security Investigations; U.S. Secret Service; IRS-Criminal Investigation; the U.S. Postal Inspection Service; and the U.S. Marshals Service.
Full-time Task Force Officers from the following state and local agencies are critical to our efforts to keep western Pennsylvania safe:
Pennsylvania State Police
Pennsylvania Office of the Attorney General
Pennsylvania Board of Probation and Parole
Allegheny County Courts/Probation
Allegheny County District Attorney’s Office
Allegheny County Police Department
Allegheny County Port Authority Police
Allegheny County Sheriff’s Office
Cambria County District Attorney’s Office
Cambria County Drug Task Force
Cambria County Sheriff’s Office
Erie County District Attorney’s Office
Fayette County District Attorney’s Office
Indiana County District Attorney’s Office
Indiana County Drug Task Force
Westmoreland County Sheriff’s Office
Baldwin Borough Police Department
Clairton Police Department
Duquesne Police Department
Erie Police Department
Greensburg Police Department
Homestead Police Department
Indiana (Indiana County) Police Department
McKees Rocks Police Department
McKeesport Police Department
Monessen Police Department
Monroeville Police Department
Munhall Police Department
New Castle Police Department
North Strabane Police Department
North Versailles Police Department
Perryopolis Police Department
Pittsburgh Bureau of Police
Richland Township (Cambria County) Police Department
Greensburg Police Department
Shaler Police Department
Stowe Township Police Department
University of Pittsburgh Police
West Homestead Police Department
West Mifflin Police Department
Wilkinsburg Police Department
National Law Enforcement Appreciation Day was first observed in 2015 and provides an opportunity to recognize the courage, dedication and sacrifice of the uniformed men and women who protect and serve our communities.
Two Men Indicted in Topeka Bank Robbery CaseRead the Press Release
TOPEKA, KAN. – Two men were indicted Wednesday on federal charges arising from an armed bank robbery at a Topeka bank in December, U.S. Attorney Stephen McAllister said.
Shawn Lamar Whitmore Jr., 21, Topeka, Kan., was charged with one count of bank robbery and one count of brandishing a firearm during the robbery. Mylus Michael Oneal Jr., 36, Topeka, Kan., was charged with one count of accessory after the fact and one count of possessing stolen money.
One indictment alleges Whitmore brandished a firearm on Dec. 28, 2019, when he robbed Intrust Bank at 1035 Southwest Topeka Blvd. The other indictment alleges Oneal became an accessory after the fact to the robbery and on Jan. 2, 2020, was found with money stolen from the bank.
If convicted, Whitmore could face up 25 years in federal prison and a fine up to $250,000 on the robbery charge and not less than seven years and a fine up to $250,000 on the brandishing charge. The Topeka Police Department, the Kansas Highway Patrol and the FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
OTHER INDICTMENTS
Antonio Duane Simpson, 43, currently in custody in Missouri, is charged with one count of count of carjacking and one count of discharging a firearm during the crime. The indictment alleges that on Dec. 3, 2018, in Topeka, Kan., Simpson stole a 2013 Toyota Tacoma from the owner.
If convicted, he faces a sentence of up to 15 years in federal prison and a fine up to $250,000 on the carjacking charge and not less than 10 years and a fine up to $250,000 on the firearm charge. The FBI and the Topeka Police Department investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
Sergio Martinez-Carlos, 21, Monahan, Ariz., is charged with one count of possession with intent to distribute almost 32 pounds of methamphetamine. The defendant initially was charged Dec. 27 in a criminal complaint alleging the Kingman County Sheriff’s Office stopped the defendant’s vehicle and discovered the drugs hidden in speakers in the vehicle.
If convicted, the defendant could face a sentence of not less than 10 years in federal prison and a fine up to $10 million. The Kingman County Sheriff’s Office and the Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Katherine Andrusak is prosecuting.
Adrian Vargas-Ramirez, 38, of Paramount, Calif., is charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred Oct., 17, 2019, in Ellsworth County, Kan.
If convicted, the defendant could face a sentence of not less than 10 years in federal prison and a fine up to $10 million. The Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Lindsey Debenham is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Two Former Employees of Montgomery Doctor Receive Prison Sentences for Unlawful Distribution of Controlled SubstancesRead the Press Release
Montgomery, Alabama – Two Montgomery area women were sentenced to federal prison for their roles in a conspiracy to distribute controlled substances by forging prescriptions, announced United States Attorney Louis V. Franklin, Sr. and DEA Assistant Special Agent-in-Charge Clay A. Morris. On December 10, 2019, Tracy Lynn Giddens, 46, of Millbrook, Alabama, received a 63-month sentence for her role in the scheme. Subsequently, on January 7, 2020, Ashley Lee Bozeman, 33, of Hope Hull, Alabama, received a 57-month sentence.
According to court documents, during 2016 and 2017, both Giddens and Bozeman worked in the office of a Montgomery, Alabama physician. As employees, both had access to the doctor’s prescription pad. The defendants used that access to prepare fake prescriptions for controlled substances, including: oxycodone, hydrocodone, dextroamphetamine-amphetamine (better known by its brand-name “Adderall”), and alprazolam (better known by its brand-name “Xanax”). Giddens and Bozeman then presented those prescriptions to pharmacies and obtained controlled medications. After doing so, the defendants distributed the pills they unlawfully obtained to others.
“The amount of harm that can result from a prescription pad falling into the wrong hands is enormous,” stated United States Attorney Franklin. “This is true when a physician uses his or her prescription pad illegally, as well as when a physician’s staff member abuses the trust of the physician and prepares forged prescriptions. Whether an illegitimate prescription comes from a physician or a staff member, the outcome is the same—dangerous, addictive drugs are unleashed upon the public. This case marks another step in my office’s efforts to eradicate the prescription medication abuse problem that is wreaking havoc in our country and in our community.”
“As we continue to battle the opioid epidemic in Alabama, DEA and the United States Attorney’s Office have secured yet another lengthy prison sentence for defendant Ashley Bozeman and Tracy Giddens,” announced Assistant Special Agent-in-Charge Clay A. Morris of the Drug Enforcement Administration (DEA). “Whether you choose to obtain illegal drugs by fraud, deception or subterfuge, or you are a traditional street drug dealer, we will investigate and successfully prosecute you. Defendants Bozeman and Giddens chose to fuel the scourge of addiction by fraud and deception and justice was served. We will continue to protect our innocent, our communities and those who struggle with addiction.”
The Drug Enforcement Administration (DEA) investigated this case and Assistant United States Attorney Jonathan S. Ross prosecuted it.
Two Defendants Posing as Booking Agents for Famous Entertainers Arrested for Fraudulent SchemeRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging Nancy Jean and Carissa Scott with a scheme to defraud concert investors by falsely claiming to act as booking agents for well-known entertainers, including Justin Timberlake and Bruno Mars. The defendants were arrested yesterday at John F. Kennedy International Airport in Queens, New York, and their initial appearance is scheduled for this afternoon before United States Magistrate Judge Sanket J. Bulsara.
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 arrests.
As alleged in the complaint, in September 2019, Jean and Scott were contacted by an investor who was organizing a concert at the Alamodome in San Antonio, Texas, to benefit the Sandy Hook Promise Foundation. The defendants falsely represented that they could book top-tier musical acts to perform at the concert, and provided the investor with a contract for a total fee of $500,000 that purported to commit Timberlake to perform. One of the investors then wired a $100,000 deposit to the defendants. Subsequently, when Timberlake’s social media account failed to mention or promote the event, the investor requested confirmation that Timberlake was booked. In response, the investor received a telephone call from an unidentified individual who falsely claimed to be Timberlake’s manager. The unidentified individual stated that Timberlake would perform at the concert, but that the fee would have to be raised to between $800,000 and $1 million. In November 2019, the defendants sent the investor an agreement stating that Mars would perform at the concert as an alternative to Timberlake for a fee of $600,000. The investor agreed that Mars could be the headliner, but did not send an additional deposit to the defendants.
Within a month of receiving the original $100,000 deposit, approximately half of the money was used by the defendants for personal expenses or withdrawn as cash.
“As alleged, the defendants viewed a fundraiser for a charity formed to protect children from gun violence as an opportunity to commit fraud and line their own pockets,” stated United States Attorney Donoghue. “Simple stealing is bad enough, this is worse.”
“Nancy Jean and Carissa Scott may have been able to realize a quick profit as a result of their alleged fraudulent booking scheme, but not long after their illegal activity took off, they landed in New York to face federal criminal charges. It’s discouraging to think these defendants were willing to defraud an investor supporting a charity foundation. Fortunately, the FBI doesn’t entertain such activity,” stated FBI Assistant Director-in-Charge Sweeney.
The charges in the complaint are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by the Office’s Business & Securities Fraud Section. Assistant United States Attorney Lauren Howard Elbert is in charge of the prosecution, and Assistant United States Attorney Brian Morris of the Office’s Civil Division is handling matters relating to forfeiture.
The Defendants:
NANCY JEAN
Age: 51
Riverdale, GeorgiaCARISSA SCOTT
Age: 41
Fayette, MississippiE.D.N.Y. Docket No. 20-MJ-16
Two 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 CESAR ADRIAN AGUIRRE-SANCHEZ, age 39, of Mexico, and DAVID DIAZ-SORIANO, age 32, of Mexico with Illegal Reentry of a Deported Alien.
Additionally, the grand jury returned an indictment charging AGUIRRE-SANCHEZ, with Illegal and Unlawful Alien in Possession of a Firearm.
If convicted of illegal and unlawful alien in possession of a firearm or illegal reentry subsequent to a felony conviction (possession of a stolen vehicle), AGUIRRE-SANCHEZ, previously deported and found in Harnett County, would face maximum penalties of ten years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
If convicted of illegal reentry, DIAZ-SORIANO, previously deported twice and found in Robeson County, would face maximum penalties of two 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.
ICE’s Enforcement and Removal Operations and Homeland Security Investigations are investigating the cases
Tuscaloosa Man Sentenced to More Than 21 Years in Prison on Gun and Drug ChargesRead the Press Release
BIRMINGHAM, Ala. –A federal judge today sentenced a Tuscaloosa man on gun and drug charges, announced U.S. Attorney Jay E. Town and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Marcus Watson.
U.S. District Court Judge Annemarie Axon sentenced Seth Williams, 27, to 262 months in prison for possession with intent to distribute methamphetamine, use of firearm during a drug offense, and felon in possession of a firearm. Williams, a career criminal with an extensive record, pled guilty in June 2019.
“Society needs protection from this dangerous class of repeat offenders, and the U.S. Attorney’s Office and our law enforcement partners are providing it,” Town said. “Williams will spend the next 262 months in a federal prison bed with no sanctuary of parole.”
“ATF’s Crime Gun Intelligence as part of Project Guardian, focused on providing a safe environment to the communities that are affected by violent crime,” Watson said.
The ATF investigated the case along with the West Alabama Narcotics Task Force, which Assistant U.S. Attorney Bill Simpson and John Camp prosecuted.
Tuscaloosa Man Sentenced to 235 Months in Prison for Being a Felon in Possession of a FirearmRead the Press Release
BIRMINGHAM, Ala. –A federal judge today sentenced a Tuscaloosa man to 235 months in prison, announced U.S. Attorney Jay E. Town and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Marcus Watson.
U.S. District Judge Annemarie Carney Axon sentenced Montez Vantarus Spradley, 37, for being a felon in possession of a firearm. Spradley pled guilty to the single count indictment in August 2019.
“Spradley spent the last 17 years traveling through the revolving doors of overwhelmed state courthouses and over-crowded prisons,” Town said. “His next 19 years will be spent locked away in a federal prison.”
“ATF’s priority of removing the criminal element that uses firearms in domestic violence situations is clearly evident with this sentencing,” Marcus said.
According to court documents, in the early morning hours of March 26, 2019, Tuscaloosa police responded to a domestic violence call at the apartment where Spradley lived with his girlfriend. They found her bleeding from a head wound that she received when Spradley struck her with a pistol during an argument. Officers recovered the pistol and a loaded magazine from a bedroom closet at the residence. When officers arrested Spradley for domestic violence, they found in his pocket a second magazine containing identical ammunition.
Spradley’s sentence was driven by his extensive criminal history, which included prior convictions for assault, second degree, felony murder, intimidating a witness, possession of a controlled substance with the intent to distribute, and possession of a controlled substance.
The ATF investigated the case, which Assistant U.S. Attorney Alan Baty prosecuted.
Timeshare resort manager arrested for massive elder fraud and embezzlement targeting timeshare ownersRead the Press Release
ATLANTA - Katherine Tice Craig, a/k/a Kathy Tice, has been arraigned on federal charges of mail fraud. The defendant allegedly embezzled over $1.7 million dollars from a company she was managing.
“Craig’s scheme defrauded over 1,000 timeshare owners who were her employer’s customers,” said U.S. Attorney Byung J. “BJay” Pak. “Most of these victims were elderly. She allegedly collected and spent the fees owed the company on gambling and trips for herself.”
“The U.S. Postal Inspection Service takes great pride in protecting the American public, especially our vulnerable older Americans. Those seeking to defraud and take advantage of our postal customers should know they will not go undetected and will be held accountable,” said USPIS Inspector-in-Charge David M. McGinnis.
According to U.S. Attorney Pak, the charges, and other information presented in court: Since 2003, Katherine Tice Craig worked at Caribbean Service Group (“CSG”), a business running a timeshare resort in Freeport, Bahamas called the Woodbourne Estates Resort. CSG operated in Atlanta, Georgia and Zebulon, Georgia. After the original business owners died in 2009 and 2010, the business was held up in probate. During this time, Craig managed CSG with no close supervision. By February 2012, Craig was allegedly embezzling CSG Group funds for her own purposes.
From 2012 through 2018, Craig allegedly embezzled over $1.7 million from CSG, using a variety of techniques. These were funds she took from the business, over and above her salary. Craig took over $650,000 by simply transferring money from CSG’s bank accounts to her own, over $450,000 by negotiating checks made out by CSG to “cash,” and more than $300,000 by writing checks on CSG’s accounts to pay her own personal credit cards. Craig spent much of the embezzled funds on gambling, including many trips to the Beau Rivage casino in Biloxi, Mississippi, and high-volume purchases of Georgia Lottery tickets. Money that should have been used by CSG to run the resort and fulfill its obligations to timeshare owners was allegedly embezzled by Craig instead.
During an overlapping time period from 2012 to 2019, Craig defrauded and misled over 1,000 timeshare owners – most of them elderly retirees. Craig saved money – unsustainably – by operating the resort without casualty insurance, even though the Lease Agreements required CSG to maintain casualty insurance. Over the years, the buildings at the resort deteriorated through storm damage and neglect, so that fewer were usable. Craig allowed the resort less money to run on as time went on, before cutting off financial support to it entirely in December 2015.
By early 2016, the resort was in such bad shape that Craig wasn’t allowing any timeshare owners to vacation there any more, even though the Lease Agreements entitled them to stay in particular units at particular times. Craig continued billing timeshare owners for maintenance fees, and threatened many who fell behind with referral to a collection agency. She also approved transfers of some of the timeshare leases to new owners, essentially recruiting new victims even after the resort was no longer viable. Craig never told the timeshare owners that there was no casualty insurance on the resort, or that the main expense being paid for by their maintenance fees was her own alleged pattern of embezzlement.
Katherine Tice Craig, 51, of Zebulon, Georgia, was arraigned before U.S. Magistrate Judge Justin S. Anand. Craig was indicted by a federal grand jury on January 7, 2020. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
The U.S. Attorney’s Office for the Northern District of Georgia is part of the Department Of Justice Transnational Elder Fraud Strike Force. The Strike Force focuses on investigating and prosecuting defendants associated with foreign-based fraud schemes that disproportionately affect American seniors. These include romance scams, phone scams, mass-mailing fraud schemes, and tech-support fraud schemes. For further information on these scams, see https://www.justice.gov/elderjustice/senior-scam-alert.
The U.S. Postal Inspection Service is investigating this case.
Assistant U.S. Attorney Alana R. Black is 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.
Three admit to attempting to smuggle children into U.S.Read the Press Release
LAREDO, Texas – Three people in their twenties have entered guilty pleas in separate but similar cases involving the smuggling of minor children in October 2019, announced U.S. Attorney Ryan K. Patrick.
Amelia Batres, 22, admitted in federal court today that she attempted to enter the United States with a minor child she falsely claimed was her son, while Maria Elena Chavez-Valenzuela, 29, pleaded guilty earlier this week and admitted to attempting to enter with a minor child she falsely claimed was her daughter. On Monday, Michael Dimas Tibursio, 22, admitted to similar facts – that he attempted to bring a young child into the country, claiming he was his nephew.
On Oct. 13, 2019, Batres, of Laredo, attempted to enter the United States at the Juarez–Lincoln International Bridge in Laredo. Batres had presented her real son’s birth certificate in an attempt to pass a 6-year-old who was accompanying her as her child. Authorities questioned the boy who then admitted Batres was not his mother. Batres ultimately admitted the child’s family was going to pay her to smuggle the minor into the United States.
The day prior, Maria Elena Chavez-Valenzuela, of Indianapolis, Indiana, also attempted to enter the United States with a minor, this time via the Gateway to the Americas Bridge in Laredo. She claimed that the 10-year-old female was her daughter. However, Chavez-Valenzuela eventually admitted she had been hired to smuggle the girl into the United States and was going to be paid $5,000 if successful.
In a third, yet similar case, Michael Dimas Tibursio, also of Indianapolis, arrived at the Juarez–Lincoln International Bridge in Laredo on a passenger bus Oct. 25. A 5-year-old boy was accompanying him. Tibursio told authorities that the boy was his nephew and presented a document he claimed was the boy’s birth certificate. Authorities soon determined the boy was actually a Mexican citizen and was not related to Tibursio. Tibursio later admitted he was being paid to smuggle the boy to family members in Indianapolis.
All will remain in custody pending sentencing.
U.S. District Judge Marina Garcia Marmolejo will impose Chavez-Valenzuela’s sentencing April 22, while Tibursio and Batres will be sentenced at a date to be determined before U.S. District Judge Diana Saldaña.
U.S. Customs and Border Protection conducted all three investigations. Assistant U.S. Attorney David Fawcett is prosecuting the cases.
Three New Jersey Men Arrested for Possession of Narcotics with Intent to DistributeRead the Press Release
NEWARK, N.J. – Three New Jersey men were charged with possession of cocaine and heroin with intent to distribute, U.S. Attorney Craig Carpenito announced today.
Robin Peralta, 37, of Trenton, New Jersey, is charged by complaint with one count of possession with intent to distribute five kilograms or more of cocaine and one count of possession with intent to distribute one kilogram or more of heroin. Luis Susana-Delossanto, 32, of Trenton, is charged by complaint with two counts of possession with intent to distribute five kilograms or more of cocaine. Ramon Fabian-Pena a/k/a/ “Rafael,” 59, of Passaic, New Jersey, is charged by complaint with one count of possession with intent to distribute five kilograms or more of cocaine.
All three defendants appeared Jan. 8, 2020, before U.S. Magistrate Judge Leda D. Wettre in Newark federal court. Peralta and Susana-Delossanto were released on bail. Fabian-Pena was detained.
According to the documents filed in this case and statements made in court:
A search of Peralta’s residence revealed approximately three kilograms of heroin and U.S. currency. A search of Delossanto’s vehicle revealed approximately 29 kilograms of cocaine. At the time of the arrest of Fabian-Pena, law enforcement also recovered a package containing approximately six kilograms of cocaine.
The counts of possession with intent to distribute heroin and possession with intent to distribute cocaine each have a minimum sentence of 10 years in prison, a maximum sentence of life in prison, and a $10 million fine.
U.S. Attorney Carpenito credited special agents of the Drug Enforcement Administration, New Jersey Division, under the direction of Special Agent in Charge Susan A. Gibson; and members of the Mercer County Prosecutor’s Office, as well as the Hamilton Township Police Department, with the investigation leading to the charges. This investigation was conducted by a New JerseyJ DEA HIDTA Task Force composed of officers from the DEA, New Jersey State Police, Mercer County Prosecutor’s Office, Hudson County Prosecutor’s Office, Wayne Police Department, Union Police Department, Woodbridge Police Department, Edison Police Department and Bayonne Police Department.
The government is represented by Assistant U.S. Attorneys Cassye Cole and Vera Varshavsky of the U.S. Attorney’s Office’s Criminal Division in Newark.
The charges and allegations in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Thirteen Defendants Indicted in Connection with Monmouth County Drug Trafficking Conspiracy; Two Defendants Charged with Unlawfully Possessing FirearmsRead the Press Release
TRENTON, N.J. – Thirteen defendants have been indicted for their roles as members, associates, and suppliers of a drug-trafficking conspiracy that distributed cocaine and crack cocaine in and around Monmouth County, U.S. Attorney Craig Carpenito announced today.
Damion Helmes, Dawn Stephens, Shantay Walker, Keith Logan, Shamar Dudley, Tonya Underwood, Elizabeth Conover, Curtis Jenkins, Ralph Lee, and Eric Yarbrough were charged with conspiracy to distribute and possess with intent to distribute more than 280 grams of crack cocaine. Additionally, Helmes, Stephens, Walker, Logan, Dudley, Underwood, Conover, Jenkins, Lee, Yarbrough, Derrick Hayes, Dequan Copeland, and Cassius Williams were charged with conspiracy to distribute and possess with intent to distribute more than 500 grams of cocaine. Helmes was also charged with possession with intent to distribute cocaine and crack cocaine, possession of a firearm in furtherance of a drug-trafficking crime, and with being a felon in possession of a firearm. Hayes was also charged with being a felon in possession of a firearm.
According to the documents filed in this case and statements made in court:
Between April 2019 and August 2019, the defendants and others engaged in a narcotics conspiracy that operated primarily in municipalities throughout Monmouth County – including Cliffwood, Keansburg, Matawan, Keyport, Red Bank, Long Branch, Neptune, and Asbury Park, as well as Brick Township in Ocean County – and which sought to profit from the distribution of cocaine and crack cocaine. Through the interception of telephone calls and text messages pursuant to court-authorized wiretap orders, and other investigative techniques, law enforcement officers learned that defendant Helmes obtained regular supplies of cocaine from defendants Hayes and Copeland. Helmes then re-distributed that cocaine, portions of which he converted into crack cocaine, for profit, to other conspirators, distributors, sub-dealers, and end users throughout Monmouth County. During the wiretap portion of the investigation, law enforcement intercepted numerous communications by and between the conspirators regarding such issues as cocaine quality and availability, pricing, packaging, quantity, and customer satisfaction.
The defendants were originally charged by complaint on Aug. 22, 2019. Dudley was previously charged by indictment.
The count of conspiracy to distribute 280 grams or more of crack cocaine carries a maximum penalty of life in prison, a ten-year mandatory minimum term of imprisonment, and a maximum fine of $10 million. The count of conspiracy to distribute 500 grams or more of cocaine carries a maximum penalty of 40 years in prison, a five-year mandatory minimum term of imprisonment, and a maximum fine of $5 million. The count charging Helmes with possession with intent to distribute cocaine and crack cocaine carries a maximum sentence of 20 years in prison and a $1 million fine. The count charging Helmes with possession of a firearm in furtherance of a drug trafficking crime carries a statutory mandatory minimum term of imprisonment of 5 years and a maximum potential penalty of life in prison, and must be served consecutive to the sentence imposed on the drug trafficking crime. The felon in possession counts against Helmes and Hayes carry a maximum sentence of 10 years in prison. Each firearms count also carries a maximum fine equal to the greatest of $250,000, twice the gross amount of pecuniary gain that any persons derived from the offense, or twice the gross amount of any pecuniary loss sustained by any victim of the offense.
U.S. Attorney Carpenito credited Special Agents and Task Force Officers of the FBI, Newark Division, Red Bank Resident Agency, Jersey Shore Gang and Criminal Organization Task Force (including representatives from the Bradley Beach, Brick, Howell, Toms River, Union Beach and Marlboro police departments, and the Monmouth County Sheriff's Office) under the direction of Special Agent in Charge Gregory W. Ehrie; the Red Bank Police Department, under the direction of Chief Darren McConnell; the Keansburg Police Department, under the direction of Chief James Pigott; the Middletown Police Department, under the direction of Chief Craig Weber; the Monmouth County Prosecutor’s Office, under the direction of Monmouth County Prosecutor Christopher J. Gramiccioni; the Highlands Police Department, under the direction of Chief Robert Burton; the Holmdel Police Department, under the direction of Chief John Mioduszewski; and the Long Branch Police Department, under the direction of Chief Jason Roebuck, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Ian D. Brater of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations contained in the superseding indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
Statement from United States Attorney Jay E. Town on National Law Enforcement Appreciation DayRead the Press Release
BIRMINGHAM, Ala. – “Today we show our collective gratitude and thanks to the men and women who selflessly put on their uniforms every day and make the sacrifice to protect our communities,” Town said. “American law enforcement officers truly are the very best among us. We need not qualify those words with caveats and qualifications. Just praise. Just admiration. Just thanks. Let’s show our support today and every day.”
Statement by U.S. Attorney John F. Bash on Law Enforcement Appreciation DayRead the Press Release
“Today is Law Enforcement Appreciation Day. I am profoundly grateful for the service that our law enforcement officers render to our community and our Nation. They risk their lives and wellbeing every day to protect us. They are often overworked and underpaid. Yet with no hesitation, they run toward danger. They place the needs of others above their own. They are the backbone of our community. Our way of life is not possible without the rule of law and the protection of the vulnerable from violence and exploitation. Without them, our society simply would not work.
In 2019, eleven law-enforcement officers in the Western District of Texas died in the line of duty. Just this week I attended the funeral of Detective Cliff Martinez of the San Antonio Independent School District Police Department. Detective Martinez was killed last month while protecting others. I was deeply moved to hear about his devotion to the community and his decades-long service as a police officer. As his father said: ‘He was a protector.’ The same could be said of all our fallen brothers and sisters in blue.
Today, and every day, my hope is that our law-enforcement officers understand that the vast majority of their fellow citizens see them as the heroes they are. It is an honor and a privilege to serve as your United States Attorney.”
St. Louis Resident Sentenced to Prison for Role in a Stolen Identity Fraud Scheme That Claimed $12 Million in Tax RefundsRead the Press Release
A St. Louis resident was sentenced to 48 months in prison today for his role in a tax fraud scheme, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Jeffrey B. Jensen for the Eastern District of Missouri.
According to documents and information provided to the Court, Babatunde Olusegun Taiwo, co-conspirator Kevin Williams and others, engaged in a scheme to file false tax returns in the names of individuals whose personal identifying information they obtained without authorization. In particular, Taiwo, Williams, and others accessed from a data breach at a payroll company the information of hundreds of individuals, including school district employees in Alabama and Mississippi. The co-conspirators then used the information to file false tax returns with the Internal Revenue Service (IRS). They sought to conceal their fraud by filing the tax returns under electronic filing identification numbers that the IRS issued to tax return preparation businesses that they obtained without authorization. The conspirators directed that the claimed refunds be mailed to their residences in St. Louis. In total, Taiwo and his co-conspirators filed more than 2,000 fraudulent tax returns that claimed more than $12 million in refunds, of which the IRS paid out $889,712.
“The Department remains committed to prosecuting those who use stolen identities to steal money from the United States by filing false tax returns and claiming fraudulent tax refunds,” said Principal Deputy Assistant Attorney General Zuckerman. “As today’s sentence makes clear, there is a heavy price to pay for such criminal conduct.”
“Today’s sentencing of Babtunde Taiwo highlights how seriously IRS Criminal Investigation and our law enforcement partners take the issue of identity theft,” said Thomas Holloman, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “We will continue to pursue criminals who prey on innocent victims and we will continue to enforce our nation’s tax laws. Today’s sentencings should send a clear message to would-be criminals — you will be caught and you will be punished.”
In addition to the term of imprisonment, Senior U.S. District Judge Catherine D. Perry ordered Taiwo to serve a term of three years of supervised release and to pay restitution to the United States in the amount of $889,712.
Co-conspirator Williams was previously sentenced to 78 months in prison for his role in this scheme as well as voter fraud and re-entering the United States after having been removed.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Jensen commended special agents of IRS-Criminal Investigation, Federal Bureau of Investigation and the United States Postal Inspection Service, as well as the Dothan Alabama Police Department and Alexander City Alabama Police Department, who investigated the case, and Trial Attorneys Michael C. Boteler and Grace Albinson of the Tax Division, who are prosecuting this case with assistance from the United States Attorney’s Offices in the Eastern District of Missouri and the Middle District of Alabama.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Springfield Golf Pro and Home Builder Charged in Superseding Indictment with Making False Statements to a BankRead the Press Release
BOSTON – A federal grand jury in Springfield returned a superseding indictment today charging a Springfield golf professional and a home builder with an additional charge of making false statements to a federally insured institution.
Kevin M. Kennedy, 41, of East Longmeadow, and Kent S. Pecoy, 62, of Wilbraham, were each charged in a superseding indictment with one count of making a false statement to a federally insured financial institution.
According to the superseding indictment, on Jan. 19, 2010, Kennedy and Kent Pecoy made false statements to Charles Schwab Bank on a loan to Kennedy and his wife for the construction of a residence in East Longmeadow in an attempt to conceal a $160,000 cash down payment. These false statements included understating the sale price of the residence lot, the price of the construction, and the deposit and earnest money paid by Kennedy.
On Dec. 19, 2019, the initial indictment charged Kennedy with three counts of theft concerning programs receiving federal funds, four counts of wire fraud, four counts of engaging in monetary transactions in excess of $10,000 with the proceeds of specified unlawful activity, eight counts of money laundering, four counts of filing a false tax return, and one count of conspiracy to defraud the United States. In addition, Kent Pecoy and Jason Pecoy, 39, also of Wilbraham, were also charged with conspiracy to defraud the United States.
The charge of making a false statement provides for a sentence of up to 30 years in prison, five years of supervised release, and a fine of $1 million. Sentences are imposed based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Kristina O’Connell, Special Agent In Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorney Steven H. Breslow of Lelling’s Springfield Branch Office and Christopher O’Donnell of the Justice Department’s Criminal Division are prosecuting the case.
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.
Seafood Processor and Owner Sentenced for Selling Foreign Crab Meat Falsely Labeled as Product of USARead the Press Release
Capt. Neill’s Seafood Inc. (Capt. Neill’s) of Columbia, North Carolina, and Phillip R. Carawan, the owner, President, and Chief Executive of Capt. Neill’s, were sentenced today by U.S. District Judge Louise Flanagan, in New Bern, North Carolina. Capt. Neill’s was sentenced to a period of five years’ probation and is required to pay a $500,000 fine. Carawan was sentenced to 12 months and one day in prison, followed by three years of supervised release, and is required to pay a $250,000 fine for his role in falsely labeling millions of dollars’ worth of foreign crab meat as “Product of USA.”
“Individuals and companies who seek to profit from the fraudulent mislabeling of seafood harm American fishermen and consumers,” said Assistant Attorney General Jeffrey Bossert Clark for the Justice Department’s Environment and Natural Resources Division. “We are committed to working with our law enforcement partners to hold accountable those who engage in seafood fraud and mislabeling.”
“Seafood mislabeling is consumer fraud that undermines efforts of hardworking, honest fisherman and the free market by devaluing the price of domestic seafood,” said Acting U.S. Attorney General Norman Acker III for the Eastern District of North Carolina. “In this case, the fraudulent scheme artificially deflated the cost of domestic blue crab and gave Carawan an unacceptable economic advantage over law-abiding competitors.”
“Combating seafood fraud continues to be a priority for the NOAA Office of Law Enforcement,” said Director Jim Landon of the Department of Commerce’s National Oceanic and Atmospheric Administration (NOAA) Office of Law Enforcement. “The effects of this type of fraud impact not only the consumer, but also honest fishermen and the livelihoods of others in the fishing industry. We will continue to identify and investigate those who seek to undermine the legal requirement to accurately label seafood products.”
Capt. Neill’s and Carawan were engaged in the business of purchasing, processing, packaging, transporting, and selling seafood and seafood products, including crab meat from domestically harvested blue crab. According to their plea agreements, Capt. Neill’s and Carawan admitted that beginning at least as early as 2012, and continuing through June 16, 2015, Carawan directed company employees to repack foreign crab meat into containers labeled “Product of USA,” which Capt. Neill’s then sold to customers as jumbo domestically harvested blue crab. The falsely labeled crabmeat was then sold primarily to wholesale membership clubs, but also to retailers. Capt. Neill’s and Carawan further admitted that during that time period, the retail market value of the mislabeled crabmeat they sold was $4,082.841.
As part of his plea agreement, Carawan further admitted that he and his company could not and did not process sufficient quantities of domestic blue crab to meet customer demands. To make up the shortfall, Carawan and his company used foreign crab meat to fulfill customer orders. During the periods when the company did not have a sufficient supply of domestic crab, Carawan and Capt. Neill’s purchased crab meat (not live crabs) from South America and Asia.
As a result of the plea and sentence, Capt. Neill’s will pay restitution to persons whom the government confirmed purchased Capt. Neill’s jumbo crab meat between 2012 and June 16, 2015. For individuals who wish to see whether they qualify for restitution and for further information on the prosecution, please visit the following site: https://www.justice.gov/usao-ednc/captneillsseafoodvictiminformationpage
This case was part of an ongoing effort by the NOAA Office of Law Enforcement, in coordination with the Food and Drug Administration, and the Department of Justice to detect, deter, and prosecute those engaged in the false labeling of crab meat.
This prosecution is being handled by the Justice Department’s Environmental Crimes Section and the U.S. Attorney’s Office for the Eastern District of North Carolina. The government is represented by Senior Litigation Counsel Banumathi Rangarajan and Trial Attorney Gary N. Donner.
Seafood Processor and Owner Sentenced for Selling Foreign Crab Meat Falsely Labeled as Product of USARead the Press Release
RALEIGH – Capt. Neill’s Seafood Inc. (Capt. Neill’s) of Columbia, North Carolina, and Phillip R. Carawan, the owner, President, and Chief Executive of Capt. Neill’s, were sentenced today by U.S. District Judge Louise Flanagan, in New Bern, North Carolina. Capt. Neill’s was sentenced to a period of five years’ probation and is required to pay a $500,000 fine. Carawan was sentenced to 12 months and one day in prison, followed by three years of supervised release, and is required to pay a $250,000 fine for his role in falsely labeling millions of dollars’ worth of foreign crab meat as “Product of USA.”
“Individuals and companies who seek to profit from the fraudulent mislabeling of seafood harm American fishermen and consumers,” said Assistant Attorney General Jeffrey Bossert Clark for the Justice Department’s Environment and Natural Resources Division. “We are committed to working with our law enforcement partners to hold accountable those who engage in seafood fraud and mislabeling.”
“Seafood mislabeling is consumer fraud that undermines efforts of hardworking, honest fisherman and the free market by devaluing the price of domestic seafood,” said Acting U.S. Attorney General Norman Acker III for the Eastern District of North Carolina. “In this case, the fraudulent scheme artificially deflated the cost of domestic blue crab and gave Carawan an unacceptable economic advantage over law-abiding competitors.”
“Combating seafood fraud continues to be a priority for the NOAA Office of Law Enforcement,” said Director Jim Landon of the Department of Commerce’s National Oceanic and Atmospheric Administration (NOAA) Office of Law Enforcement. “The effects of this type of fraud impact not only the consumer, but also honest fishermen and the livelihoods of others in the fishing industry. We will continue to identify and investigate those who seek to undermine the legal requirement to accurately label seafood products.”
Capt. Neill’s and Carawan were engaged in the business of purchasing, processing, packaging, transporting, and selling seafood and seafood products, including crab meat from domestically harvested blue crab. According to their plea agreements, Capt. Neill’s and Carawan admitted that beginning at least as early as 2012, and continuing through June 16, 2015, Carawan directed company employees to repack foreign crab meat into containers labeled “Product of USA,” which Capt. Neill’s then sold to customers as jumbo domestically harvested blue crab. The falsely labeled crabmeat was then sold primarily to wholesale membership clubs, but also to retailers. Capt. Neill’s and Carawan further admitted that during that time period, the retail market value of the mislabeled crabmeat they sold was $4,082.841.
As part of his plea agreement, Carawan further admitted that he and his company could not and did not process sufficient quantities of domestic blue crab to meet customer demands. To make up the shortfall, Carawan and his company used foreign crab meat to fulfill customer orders. During the periods when the company did not have a sufficient supply of domestic crab, Carawan and Capt. Neill’s purchased crab meat (not live crabs) from South America and Asia.
As a result of the plea and sentence, Capt. Neill’s will pay restitution to persons whom the government confirmed purchased Capt. Neill’s jumbo crab meat between 2012 and June 16, 2015. For individuals who wish to see whether they qualify for restitution and for further information on the prosecution, please visit the following site: https://www.justice.gov/usao-ednc/captneillsseafoodvictiminformationpage
This case was part of an ongoing effort by the NOAA Office of Law Enforcement, in coordination with the Food and Drug Administration, and the Department of Justice to detect, deter, and prosecute those engaged in the false labeling of crab meat.
This prosecution is being handled by the Justice Department’s Environmental Crimes Section and the U.S. Attorney’s Office for the Eastern District of North Carolina. The government is represented by Senior Litigation Counsel Banumathi Rangarajan and Trial Attorney Gary N. Donner.
San Antonio Husband and Wife Sentenced for Tire Theft ConspiracyRead the Press Release
BEAUMONT, Texas - A San Antonio man and his wife have been sentenced to federal prison for violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Joel Vargas, 34, and Angelica Vargas, 39, were found guilty by a jury of federal violations following a five-day trial in March 2019 and were sentenced by U.S. District Judge Marcia A. Crone on Jan. 8, 2020. Joel Vargas was convicted of two counts of interstate transportation of stolen property, conspiracy to transport stolen property in interstate commerce, and tampering with a witness. He was sentenced to a total of 235 months in federal prison and ordered to pay restitution in the amount of $1,278,580.27. Angelica Vargas was convicted of conspiracy to transport stolen property in interstate commerce and was sentenced to 60 months in federal prison and ordered to pay restitution in the amount of $1,071,344.38.
According to information presented in court, on Dec. 17, 2017, over $38,000 in automotive tires were stolen during a burglary of the Goodyear Commercial Tire and Service Center on Cardinal Drive in Beaumont, Texas. The investigation of the burglary led to Joel and Angelica Vargas, who were part of a multi-participant conspiracy. The conspiracy targeted commercial tire businesses, resulting in the theft, trafficking and sale of commercial tires, specifically 18-wheeler truck tires. Over a 15-year period, the conspiracy targeted over 100 tire stores or concrete/gravel yards, where they would force entry into the premises, disable surveillance equipment, steal tires, and then remove the tires in rental moving van type vehicles. Over 50 rental moving vehicles were stolen to facilitate the crimes. Joel Vargas was also found guilty of threatening a trial witness. In all, seven individuals were convicted as part of this investigation.
“This was a major theft ring that cost businesses a very large amount of money,” said U.S. Attorney Joseph D. Brown. “They operated all over the state of Texas.”
“I’m very proud of the work our officer did to clear this case,” said Beaumont Police Chief Jimmy Singletary. “It just goes to show how much law enforcement can accomplish when working across jurisdictional lines.”
This case was investigated by the Beaumont Police Department and the Texas Department of Public Safety and prosecuted by Assistant U.S. Attorneys Michael Anderson, Chris Rapp, and Christopher T. Tortorice.