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Friday 15 November 2019
Tax Preparers Plead Guilty to Filing Fraudulent Tax ReturnsRead the Press Release
WASHINGTON – Michegel Butler and Brittany Patterson, residents of St. John the Baptist Parish, Louisiana, pleaded guilty yesterday to conspiracy to defraud the United States, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and the U.S. Attorney’s Office for the Eastern District of Louisiana. Patterson also pleaded guilty to aiding and assisting in the filing of false tax returns.
According to court documents, Butler owned Crown Tax Service LLC, located in Kenner, Louisiana, and Patterson worked there as a tax return preparer. From approximately January 2013 through April 2013, Butler, Patterson, and others conspired to inflate their clients’ refunds by preparing returns falsely claiming Schedule C businesses, dependents, and dependent care expenses. To substantiate the false expenses, the conspirators directed clients to fill out fraudulent receipts. They also encouraged some clients to buy or sell dependents that could be used on tax returns.
When sentenced, Butler and Patterson each face a maximum sentence of five years, three years of supervised release, restitution, and other monetary penalties. Patterson also faces an additional maximum sentence of three years imprisonment for each count of aiding and assisting in the preparation of a false tax return.
Principal Deputy Assistant Attorney General Zuckerman and the U.S. Attorney’s Office for the Eastern District of Louisiana.commended special agents of Internal Revenue Service-Criminal Investigation, who conducted the investigation, and Trial Attorneys Lauren Castaldi and Jessica Kraft of the Tax Division and Assistant U.S. Attorney G. Dall Kammer, who prosecuted the case.
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Superseding Indictment Charges Former Precious Metals Salesman with Racketeering ConspiracyRead the Press Release
A former salesperson in the New York offices of a U.S. bank (Bank A) was charged in a superseding indictment filed yesterday and made public today for his alleged participation in a racketeering conspiracy in connection with the manipulation of the markets for precious metals futures contracts, which spanned over eight years and involved thousands of unlawful trading sequences, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office.
Jeffrey Ruffo, 56, of Morristown, New Jersey, was charged in a superseding indictment filed in the Northern District of Illinois with one count of conspiracy to conduct the affairs of an enterprise involved in interstate or foreign commerce through a pattern of racketeering activity (more commonly referred to as RICO conspiracy) and one count of conspiracy to commit wire fraud affecting a financial institution, bank fraud, commodities fraud, price manipulation and spoofing.
The superseding indictment follows the original indictment filed on Aug. 22, 2019, which charges Gregg Smith, 55, of Scarsdale, New York; Michael Nowak, 45, of Montclair, New Jersey; and Christopher Jordan, 47, of Mountainside, New Jersey, with one count of RICO conspiracy; one count of conspiracy to commit wire fraud affecting a financial institution, bank fraud, commodities fraud, price manipulation and spoofing; one count of bank fraud and one count of wire fraud affecting a financial institution. Those original charges – as well as the original charges of one count of attempted price manipulation, one count of commodities fraud and one count of spoofing against Smith and Nowak – are incorporated into the superseding indictment.
The case is pending before U.S. District Judge Edmond E. Chang of the Northern District of Illinois. The next status hearing in the case is scheduled for Dec. 5, 2019, at 10:45 a.m., during which Ruffo is expected to be arraigned.
The superseding indictment alleges that between approximately March 2008 and August 2016, Ruffo along with the other defendants and co-conspirators were members of Bank A’s global precious metals desk in New York, London and Singapore, with varying degrees of seniority and supervisory responsibility over others on the desk. Ruffo, who joined Bank A in May 2008, worked there until August 2017. During that time, he was an executive director and a salesperson on Bank A’s precious metals desk in New York, specializing in hedge fund sales. Ruffo’s clients included hedge funds that were global investment management firms that invested in precious metals. As it relates to the RICO conspiracy, the defendants and their co-conspirators were allegedly members of an enterprise—namely, the precious metals desk at Bank A—and conducted the affairs of the desk through a pattern of racketeering activity, specifically, wire fraud affecting a financial institution and bank fraud.
The superseding indictment alleges that the defendants engaged in widespread spoofing, market manipulation and fraud while working on the precious metals desk at Bank A through the placement of orders they intended to cancel before execution (Deceptive Orders) in an effort to create liquidity and drive prices toward orders they wanted to execute on the opposite side of the market. In thousands of sequences, the defendants and their co-conspirators allegedly placed Deceptive Orders for gold, silver, platinum and palladium futures contracts traded on the New York Mercantile Exchange Inc. (NYMEX) and Commodity Exchange Inc. (COMEX), which are commodities exchanges operated by CME Group Inc. By placing Deceptive Orders, the defendants and their co-conspirators allegedly intended to inject false and misleading information about the genuine supply and demand for precious metals futures contracts into the markets, and to deceive other participants in those markets into believing something untrue, namely that the visible order book accurately reflected market-based forces of supply and demand. This false and misleading information was intended to, and at times did, trick other market participants into reacting to the apparent change and imbalance in supply and demand by buying and selling precious metals futures contracts at quantities, prices and times that they otherwise likely would not have traded, the superseding indictment alleges.
As also alleged in the superseding indictment, the defendants and their co-conspirators defrauded Bank A’s clients who had bought or sold “barrier options” by trading precious metals futures contracts in a manner that attempted to push the price towards a price level at which Bank A would make money on the option (barrier-running), or away from a price level at which Bank A would lose money on the option (barrier-defending). Namely, when barrier-running, the defendants and their co-conspirators would allegedly place orders for precious metals futures contracts in a way that was intended to deliberately trigger the barrier option held by Bank A. Conversely, when barrier-defending, the defendants and their co-conspirators would allegedly place orders for precious metals futures contracts in a way that was intended to deliberately avoid triggering the barrier option held by clients of Bank A.
The superseding indictment alleges that one of the reasons the defendants and their co‑conspirators used Deceptive Orders in their trading was to service and benefit key clients, including Ruffo’s hedge fund clients, which were important sources of revenue and market intelligence for the precious metals desk at Bank A. For example, as alleged in the superseding indictment, if a hedge fund client wished to purchase gold, Ruffo would receive the order and communicate it to Smith, who, with Ruffo’s knowledge and encouragement, would then place Deceptive Orders to sell gold futures contracts in order to artificially lower the price at which the hedge fund could buy (or the defendants and their co-conspirators could buy on the hedge fund’s behalf). By passing along the lower price, the superseding indictment alleges, the defendants and their co-conspirators hoped to retain that hedge fund’s business for the precious metals desk at Bank A.
The charges in the superseding indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case is the result of an ongoing investigation by the FBI’s New York Field Office. The Commodity Futures Trading Commission’s Division of Enforcement provided assistance in this case. Trial Attorney Matthew F. Sullivan and Assistant Chief Avi Perry of the Criminal Division’s Fraud Section are prosecuting the case.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information at https://www.justice.gov/criminal-fraud/victim-witness-program.
Suburban Chicago Man Charged with Attempting to Provide Material Support to ISISRead the Press Release
The leader of a Chicago-area street gang has been arrested for allegedly attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS).
Jason Brown, also known as “Abdul Ja’Me,” allegedly provided $500 in cash to an individual on three separate occasions this year, with the understanding that the money would be wired to an ISIS soldier engaged in active combat in Syria, according to a criminal complaint and affidavit filed in U.S. District Court in Chicago. Unbeknownst to Brown, the individual to whom he provided the money was confidentially working with law enforcement, and the purported ISIS fighter was actually an undercover law enforcement officer.
Brown, 37, of Lombard, Illinois, was arrested Thursday, Nov. 14, 2019. He is charged with attempting to provide material support and resources to a foreign terrorist organization. A detention hearing is set for Nov. 21, 2019, at 11:00 a.m., before U.S. Magistrate Judge Sunil R. Harjani in Chicago.
The complaint alleges that Brown is the leader of the AHK street gang, which is based in the Chicago suburb of Bellwood and comprised of former members of other gangs, including the Black P Stones, Gangster Disciples, and Four Corner Hustlers. AHK members trafficked various narcotics in the Chicago area, including a fentanyl analogue, heroin, and cocaine, and often boasted about the gang’s activities on social media, the charges allege.
Also Thursday, several AHK members or associates were arrested on federal drug charges. As part of the investigation, law enforcement shut down the gang’s operation of two illicit drug markets on the West Side of Chicago and executed search warrants at numerous locations.
Seven AHK members or associates are charged in criminal complaints filed in federal court. Charged with conspiracy to possess a fentanyl analogue, heroin, and cocaine with the intent to distribute are Tristan Clanton, 34, of Chicago, Randall Langston, 25, of Bellwood, Ill., his brother, Brandon Langston, 22, of Bellwood, Ill., Hezekiah Wyatt, 19, of Hillside, Ill., Lenolis Muhammad-Curtis, 24, of Bellwood, Ill., and Frank Thaxton, 19, of Chicago. Charged with illegal distribution of the drug Xanax is Maurice Thomas, 30, of Chicago. Judge Harjani set detention hearings for Wyatt and Brandon Langston for Nov. 18, 2019; Thomas and Muhammad-Curtis for Nov. 19, 2019; and Clanton for Nov. 20, 2019. An arrest warrant has been issued for Randall Langston.
According to the charges, Clanton is an influential AHK member who leads a drug trafficking operation in Chicago and Bellwood. The organization is responsible for trafficking more than a half kilogram of heroin, at least 474 grams of fentanyl analogue, and distribution quantities of cocaine and other drugs, the charges allege. Clanton and his crew sold drugs near two intersections in the North Lawndale and Humboldt Park neighborhoods of Chicago. Law enforcement shut down the crew’s operation of these markets as part of the federal probe.
The public is reminded that charges contain only accusations and are not evidence of guilt. The material support charge against Brown is punishable by up to 20 years in prison. The drug conspiracy charge carries a maximum sentence of life in prison, while the drug distribution charge is punishable by up to five years. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
Substantial investigative assistance was provided by the IRS Criminal Investigation Division, Illinois State Police, U.S. Postal Inspection Service, U.S. Customs and Border Protection, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Lombard, Illinois, Police Department, Addison, Illinois, Police Department, and Chicago Police Department. The case is being prosecuted by Assistant U.S. Attorneys Shoba Pillay, Sean Driscoll and Nicholas Eichenseer of the Northern District of Illinois with support from the National Security Division, Counterterrorism Section.
St. Croix Man Who Downloaded Images from the BitTorrent Network Pleads Guilty to Possession of Child PornographyRead the Press Release
St. Croix, USVI – On Thursday, November 14, 2019, Collin Gomes, 26, of St. Croix, Virgin Islands, pleaded guilty before U.S. Magistrate Judge George Cannon, Jr., to possession of child pornography, United States Attorney Gretchen C.F. Shappert announced.
According to the plea agreement filed with the court, on or about August 16, 2018, September 6, 2018 and October 22, 2018, a Grand Prairie, Texas police detective was conducting an online investigation on the BitTorrent network for offenders sharing child pornography. An investigation was initiated for a device on the IP address used by the defendant because it was associated with a torrent with a particular infohash [SHA1 Hash over the part of a torrent file that includes: ITEM: length(size) and path (path with filename) Name: The name to search for. Piece length: The length(size) of a single piece. Pieces: SHA1 Hash of EVERY piece of this torrent]. On each of the dates above, a download of files was successfully completed from the device that the defendant’s IP address was making available. Each download contained child pornography.
On December 14, 2018, HSI executed a search warrant on the defendant’s residence. Agents explained to the defendant what they were searching for and advised him of his rights. The defendant waived his rights and agreed to speak to the agents. They asked if he viewed, downloaded and made available for download any files containing images or videos depicting child pornography and the defendant said "yes." The defendant also told the agents he had an HP computer on which he had child pornography and that he had been downloading child pornography since 2011 and collected thousands of images and videos. He stated that there was approximately one and a half Terabytes of material. HSI found thousands of child pornography images and videos found on the defendant’s computer and external hard drives.
Gomes faces a maximum sentence of 10 years and a $250,000 fine. A sentencing date has been set for March 18, 2020.
The case was investigated by Homeland Security Investigations. The case is being prosecuted by Assistant U.S. Attorney Rhonda Williams-Henry.
Sinaloa Cartel Member Extradited to the United StatesRead the Press Release
Sinaloa Cartel member Luis Arellano-Romero (aka “Bichi,” “Bichy,” “Helio”), age 44, has been extradited from Mexico to face federal racketeering charges in the Western District of Texas. Arellano-Romero had his initial appearance in El Paso today before U.S. Magistrate Judge Anne Berton. Arellano-Romero remains in federal custody.
U.S. Attorney John F. Bash, Special Agent in Charge Kyle W. Williamson of the Drug Enforcement Administration’s (DEA) El Paso Division, Special Agent in Charge Luis Quesda of the FBI’s El Paso Field Office and, Special Agent in Charge Jeffrey C. Boshek, II, of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Dallas Division made the announcement.
In April 2012, Arellano-Romero was charged in the same federal grand jury indictment as Joaquin Guzman Loera, aka “El Chapo,” Ismael Zambada Garcia aka “Mayo,” Jose Antonio Torres Marrufo “aka Jaguar” and 20 other individuals responsible for the operations and management of the Sinaloa Cartel (Cartel). The indictment charged them with violating the Racketeer Influenced and Corrupt Organizations (RICO) Act. According to the indictment, Luis Arellano-Moreno was Torres Marrufo’s personal body guard who participated in numerous kidnappings and murders as part of Torres Marrufo’s assassin squads. Upon conviction, Luis Arellano-Romero faces up to life in federal prison.
The 14-count grand jury indictment, returned on April 11, 2012, charges conspiracy to violate the RICO statute; conspiracy to possess more than five kilograms of cocaine and over 1000 kilograms of marijuana; conspiracy to import more than five kilograms of cocaine and 1000 kilograms of marijuana; conspiracy to commit money laundering; conspiracy to possess firearms in furtherance of drug trafficking crimes; murder in furtherance of a continuing criminal enterprise (CCE) or drug trafficking; engaging in a CCE in furtherance of drug trafficking; conspiracy to kill in a foreign country; kidnapping; and violent crimes in aid of racketeering.
According to the indictment, the purpose of the Sinaloa Cartel is to smuggle large quantities of marijuana and cocaine, as well as other drugs, into the United States for distribution. Laundered proceeds of drug trafficking activities are returned to Cartel members and are used in part to purchase properties related to the daily functioning of the Cartel, including real estate, firearms, ammunition, bullet proof vests, radios, telephones, uniforms and vehicles. In an effort to maintain control of all aspects of their operations, the Cartel and it’s associates, including members of the Gente Nueva (“New People”) and the Artistas Asesinos (“Murder artists”), kidnap, torture and murder those who lose or steal assets belonging to, are disloyal to, or are enemies of the Cartel.
This includes the Juarez Cartel, a competing drug organization who at the time was led by Vicente Carrillo Fuentes, as well as it’s enforcement arm known as La Linea and the Barrio Aztecas. Oftentimes, murders committed by the Cartel involve brutal acts of violence as well the public display of the victim along with banners bearing written warnings to those who would cross the Cartel.
The indictment references two acts of violence allegedly committed by members of the Cartel. First, the indictment alleges that in September 2009, Torres Marrufo, Gabino Salas-Valenciano, Fernando Arellano-Romero (Luis’s brother) and Mario Iglesias-Villegas, under the leadership of Guzman Loera and Zambada Garcia, conspired to kidnap and murder a Horizon City, Texas, resident. Specifically, Torres Marrufo ordered the kidnapping of the victim to answer for the loss of a 670-pound load of marijuana seized by the U.S. Border Patrol at the Sierra Blanca checkpoint on Aug. 5, 2009. After the kidnapping, the victim was taken to Juarez where Torres Marrufo interrogated him and ordered that he be killed. On Sept. 8, 2009, the victim’s mutilated body was discovered in Juarez.
Second, the indictment alleges that on May 7, 2010, Torres Marrufo, Fernando Arellano-Romero and Iglesias-Villegas, under the leadership of Guzman Loera and Zambada Garcia, conspired to kidnap and murder an American citizen and two members of his family. Specifically, Torres Marrufo caused an individual in El Paso to travel to a wedding ceremony in Juarez to confirm the identity of a target. The target was the groom, a U.S. citizen and a resident of Columbus, New Mexico. Under Torres Marrufo’s orders, the groom, his brother and his uncle were all kidnapped during the wedding ceremony and subsequently tortured and murdered. Their bodies were discovered by Juarez police a few days later in the bed of an abandoned pickup truck. Additionally, a fourth person was killed during the kidnapping at the wedding ceremony.
This investigation resulted in the seizure of hundreds of kilograms of cocaine, and thousands of pounds of marijuana in cities throughout the U.S. Law enforcement also took possession of millions of dollars in drug proceeds which were destined to be returned to the Cartel in Mexico. Agents and officers likewise seized hundreds of weapons and thousands of rounds of ammunition intended to be smuggled into Mexico to assist the Cartel’s battle to take control of one of the key drug trafficking corridors used to bring drugs into the U.S.
The DEA, FBI and ATF together with U.S. Immigration and Customs Enforcement’s-Homeland Security Investigations, U.S. Border Patrol, U.S. Customs and Border Protection, U.S. Marshals Service, El Paso Police Department, El Paso Sheriff’s Office and Texas Department of Public Safety investigated the case. The Office of International Affairs of the Department of Justice’s Criminal Division provided significant support in securing and coordinating Arellano-Romero’s arrest and extradition. U.S. Attorney Bash also expresses his appreciation to the U.S Attorney’s Office in New Mexico; Attorney General of Mexico Alejandro Gertz Manero and his attorneys; and, to law enforcement authorities in Mexico for their assistance.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
San Diego Real Estate Agent Arrested in Latvia and Extradited to Face Charges on $12 Million Fraud SchemeRead the Press Release
NEWS RELEASE SUMMARY – November 15, 2019
SAN DIEGO – Alexander Avergoon, a longtime San Diego real estate agent and businessman, was arraigned in federal court today following his extradition Thursday from Latvia to San Diego to face charges stemming from two investment fraud schemes in which he stole more than $12 million from unwitting investors.
Avergoon made his initial appearance today before U.S. Magistrate Judge Burkhardt. At the hearing, prosecutors moved to detain Avergoon based on his risk of flight. A detention hearing is scheduled for November 19 at 9:00 a.m. before U.S. Magistrate Judge Burkhardt.
Avergoon was indicted in August in the Southern District of California. He was located by Latvian law enforcement authorities and arrested in October. He was transferred to San Diego on Thursday.
The indictment, which was unsealed in October and provided to Latvian authorities, details Avergoon’s long-running schemes to defraud San Diego investors by pretending to use their money to buy and invest in real estate around San Diego County. Using his connections and reputation as a real estate agent, Avergoon scammed his clients and real estate investors by arranging fictitious real estate purchases and by selling them the rights to collect on fictitious loans.
From as early as 2010, Avergoon invited his victims to partner with him to purchase multi-unit apartment buildings or commercial office space, promising that the rental income would generate monthly dividends and that the investors would share in the appreciation when the properties were eventually sold. After collecting the money from investors, Avergoon told them he had purchased the buildings, and promised to service the rentals and distribute the rental income. In reality, Avergoon never actually bought these buildings; instead, he diverted the investors’ money to his own use. In order to sustain the illusion that the investment was legitimate, Avergoon made years’ worth of regular monthly payments to the investors, telling them the money came from rent payments.
In another scheme, the indictment charges that Avergoon offered additional victim investors the “opportunity” to earn approximately 8 to 20 percent interest on short-term loans to homeowners, and pretended to act as a broker between investors and homeowners. In reality, the homeowners were not working with Avergoon, did not agree to borrow money from the investors, and never signed the loan agreements Avergoon presented to his investor clients. Avergoon forged the loan documents—and the signatures on deeds of trust. He then simply diverted the investors’ money to his own use.
U.S. Attorney Robert Brewer praised the FBI and IRS for their important work bringing Avergoon to justice. “Criminals can run, but we will work with our law enforcement partners around the globe to make sure they are brought to justice. We are committed to protecting the public from con artists and identifying thieves who undermine our trust and financial well-being.”
“Through lies and manipulation, Avergoon devised an egregious scheme in order to steal from investors; a classic case of greed overcoming honest business practices,” said FBI Special Agent In Charge Scott Brunner. “Today’s extradition shows that criminals who commit crimes and run will be subject to the long arm of American justice.”
“Mr. Avergoon allegedly victimized unwitting investors out of millions by falsely promising to purchase income-generating residential and business rental properties,” said Ryan Korner, Special Agent in Charge of IRS Criminal Investigation. “Mr. Avergoon used an elaborate system of fraudulent trust deeds, forged signatures, fake IRS documents, and shell companies to orchestrate his scheme. Perpetrators like Mr. Avergoon work to destroy the public’s trust in real estate professionals and the safety of investing in our housing markets. The agents of IRS Criminal Investigation will work tirelessly with our law enforcement partners to pursue these criminals and hold them accountable wherever they run or hide.”
The U.S. Attorney’s Office wishes to thank the Office of International Affairs of the Justice Department’s Criminal Division and our Latvian law enforcement partners, including the State Police of Latvia, for their extraordinary work in securing Avergoon’s return to the United States to face charges.
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
DEFENDANTS Case Number 19CR02955-BAS
Alexander Avergoon Age: 43 San Diego, CA
SUMMARY OF CHARGES
Wire Fraud, in violation of 18 U.S.C. § 1343
Maximum penalty: Twenty years in prison per count, $250,000 fine
Aggravated Identity Theft, in violation of 18 U.S.C. § 1028A
Maximum Penalty: Mandatory term of imprisonment of two years, to be served consecutive to the sentence imposed for any underlying charge; fine of up to $250,000
Money Laundering, in violation of 18 U.S.C. § 1956(a)(1)(B)
Maximum penalty: Twenty years in prison per count, $500,000 fine
Money Laundering in Amounts Over $10,000, in violation of 18 U.S.C. § 1957
Maximum penalty: Ten years in prison per count, $250,000 fine
AGENCIES
Federal Bureau of Investigation
Internal Revenue Service
San Diego Contractor Pleads Guilty in $11 Million “Rent-A-Vet” SchemeRead the Press Release
Assistant U.S. Attorneys Rebecca Kanter (619) 546-7304 and Aaron Arnzen (619) 546-8384
NEWS RELEASE SUMMARY – November 15, 2019
SAN DIEGO, CA – Action Telecom, a Santee-based government contractor, pleaded guilty in federal court Thursday to fraud charges, admitting that the company illegally obtained $11 million in federal contracts that were supposed to be set aside for service-disabled veteran-owned businesses.
Action Telecom was indicted in April along with another company, A&D General Contracting, Inc., and its owner, Andrew Otero. Otero and A&D were convicted by a federal jury on fraud and conspiracy charges a year ago and were sentenced in June to 18 months custody and over $1.5 million in financial penalties.
Action Telecom, which is co-owned by Navy veteran Roger Ramsey and non-veteran Bruce Madden, admitted in its plea agreement to participating in a conspiracy to defraud the government by forming a joint venture with A&D – and falsely representing that Action and the joint venture qualified as service-disabled veteran-owned small businesses (SDVOSB). Based on the false claim to SDVOSB eligibility, the conspirators fraudulently obtained approximately $11 million in federal government construction contracts or task orders with the Department of Veterans Affairs and the Army Corps of Engineers.
The fraud conspiracy involved set-aside contracts that could only be bid upon by legitimate service-disabled veteran-owned small businesses – a designation that did not apply to Otero or A&D. To appear qualified, Ramsey, Madden and co-conspirator Otero initially executed an agreement to create the joint venture, which stated that Action Telecom would be the managing venturer, employ a project manager for each of the set-aside contracts, and receive the majority of the joint venture’s profits.
However, Otero, Ramsey and Madden signed a secret side agreement six months later that made clear the joint venture was ineligible under the SDVOSB program. For example, the side agreement said the parties created the venture so that A&D could simply “use the Disabled Veteran Status of Action Telecom” to bid on contracts. The side agreement also stated that A&D – not Action Telecom – would run the construction jobs. They also agreed that “A&D will keep 98 percent of every payment; Action Telecom will receive 2 percent of every payment.”
In addition to the secret side agreement, the joint venture did not operate as a legitimate SDVOSB, but was essentially controlled by Otero and A&D. For example, although Ramsey (a service-disabled veteran) nominally served as president of Action Telecom and the joint venture, he actually worked full-time as a vice president for another telecommunications company owned by Madden. Otero and A&D, not Ramsey, controlled the day-to-day management, daily operation and long-term decision making of the joint venture. Among other things, Otero and A&D appointed an A&D employee as the project manager for every contract and task order.
“Our nation strives to repay the debt of gratitude we owe to our veterans by setting aside some government contracts for veterans with service-related disabilities,” said U.S. Attorney Robert Brewer. “These unscrupulous contractors abused this program through a cynical and illegal ‘rent-a-vet’ scheme. Our office will continue to protect these programs and hold those who abuse them fully accountable.”
Acting SAC Rebeccalynn Staples, Veterans Affairs Office of Inspector General (VA OIG), stated, “Every day legitimate SDVOSB companies lawfully compete to obtain set aside government contracts. Unfortunately, some non-veteran owned companies misrepresent themselves as a SDVOSB and fraudulently obtain set side contracts. The VA OIG remains committed to aggressively pursuing these cases in an effort to maintain the sanctity of the program for all veterans.”
Action Telecom was ordered to appear before U.S. District Judge John Houston for sentencing on February 10, 2020 at 10 a.m.
CORPORATE DEFENDANTS
Action Telecom Inc., Santee, California
Criminal Case No. 17CR0879-JAH
SUMMARY OF CHARGE
False statement, in violation of 18 U.S.C. § 1001
Maximum penalty: Five years in prison
AGENCIES
Department of Veterans Affairs, Office of Inspector General
Sacramento Man Sentenced to 11 Years in Prison for Receiving Child PornographyRead the Press Release
SACRAMENTO, Calif. —Robert Charles Chavez, 33, of Sacramento, was sentenced today to 11 years and one month in prison for receiving child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, in March 2015, Chavez used peer-to-peer file sharing software to download from the internet videos and images of nude prepubescent children engaged in sexually explicit conduct.
This case was investigated by the Sacramento Internet Crimes Against Children (ICAC) Task Force, a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant U.S. Attorneys Brian A. Fogerty and Mira Chernick prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Roger Stone Found Guilty of Obstruction, False Statements, and Witness TamperingRead the Press Release
Roger J. Stone, Jr., of Florida, was found guilty by a jury today of obstructing a congressional investigation into Russian interference in the 2016 U.S. presidential election and related offenses. The announcement was made by U.S. Attorney Jessie K. Liu and Timothy R. Slater, Assistant Director in Charge of the FBI’s Washington Field Office.
Stone was found guilty of obstruction of a congressional investigation, five counts of making false statements to Congress, and tampering with a witness. The verdict followed a trial in the U.S. District Court for the District of Columbia. Stone faces a prison sentence of up to five years for counts one to six and up to 20 years for count seven. He will be sentenced on February 6, 2020, by the Honorable Amy Berman Jackson.
According to the government’s evidence, in January 2017, the United States House of Representatives Select Permanent Committee on Intelligence (“House Intelligence Committee”) announced an investigation into allegations of Russian interference in the 2016 U.S. presidential election, including allegations that Russia was involved in the publication of documents related to the presidential election by WikiLeaks in 2016. On September 26, 2017, in testimony to the Committee, Stone made a number of false statements relating to the identity of a person he had referred to in August 2016 as his “back-channel” or “intermediary” to the head of WikiLeaks; whether he had asked that person to do anything on his behalf; whether he had written communications with that person; whether he discussed that person with anyone involved with the Trump campaign; and whether he had written communications with third parties about the head of WikiLeaks. On October 13, 2017, Stone sent the House Intelligence Committee a letter falsely stating that the person he had referenced in August 2016 was an individual named Randy Credico. Stone then engaged in witness tampering by urging Credico either to corroborate this false account, or to tell the Committee that he could not remember the relevant events, or to invoke his Fifth Amendment right against self-incrimination to avoid testifying before the Committee. Credico ultimately invoked his Fifth Amendment right in response to a Committee subpoena.
In announcing the verdict, U.S. Attorney Liu and Assistant Director Slater acknowledged the work of the FBI agents involved in the investigation and prosecution of Stone, as well as the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorneys Jonathan Kravis and Michael Marando, Special Assistant U.S. Attorneys Adam Jed and Aaron Zelinsky, and Paralegal Specialist Amanda Rohde of the Fraud and Public Corruption Section.
Registered sex offender pleads guilty to enticing young men to produce child pornographyRead the Press Release
DAYTON – Brendan J. Eardly, 48, of Troy, Ohio pleaded guilty to producing child pornography by enticing at least seven juvenile males in Ohio and elsewhere to engage in explicit sexual conduct for the purpose of producing pornographic videos.
Eardly also pleaded guilty to committing a felony as a registered sex offender. He faces at least 15 years in prison for producing the child pornography and at least an additional ten years for committing a felony as a registered sex offender.
According to court documents, Eardly set up accounts on multiple social media platforms and communicated with more than 60 juveniles around the world, offering to provide them with advice about sex. Eardly sent some of them sexually explicit videos of himself and pornographic videos of other men engaged in sexually explicit conduct.
Eardly pleaded guilty before U.S. District Judge Walter H. Rice on November 14. Eardly was ordered held in custody until sentencing, which is scheduled for March 16, 2020.
Terms of the plea agreement include a requirement that Eardly forfeit the computer, cell phones and computer storage media including 17 CD’s, an external hard drive and three thumb drives he used to commit the crimes.
At the time he committed the crimes, he was required to register as a sex offender due to a case in Miami County in 2004.
David M. DeVillers, United States Attorney for the Southern District of Ohio, Joseph Deters, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Troy Police Chief Charles Phelps, and the Bureau of Criminal Investigation in Ohio Attorney General Dave Yost’s office announced the sentence. Assistant United States Attorney SaMee Harden is representing the United States in this case.
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Providence Man Admits to Trafficking Kilos of Fentanyl, Heroin and CocaineRead the Press Release
PROVIDENCE – A Providence man is awaiting sentencing in federal court after admitting to the court he trafficked more than eight kilograms of fentanyl, more than two kilograms of cocaine and nearly two kilograms of heroin.
Ronny B. Nova, a/k/a Benancio, 33, of Providence, arrested by members of the Rhode Island DEA Drug Task Force on August 23, 2017, appeared on Thursday before U.S. District Court Judge John J. McConnell, Jr., and pleaded guilty as charged by way of federal indictment with possession with intent to distribute heroin, possession with intent to distribute cocaine, conspiracy with intent to distribute fentanyl, and attempt to distribute fentanyl, announced United States Attorney Aaron L. Weisman and Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division Brian D. Boyle.
According to court documents and information presented to the court, on November 17, 2015, an investigation into Nova’s drug trafficking activities included the purchase of 2.5 grams of heroin from Nova while under the surveillance of law enforcement. Three days later, members of the DEA Drug Task Force executed a federal court-authorized search of a residence tied to Nova, and seized 2,269.3 grams of cocaine, 1,954.1 grams of heroin, and 348.4 grams of fentanyl.
According to court documents and information presented to the court, in late August 2017, Missouri State Police executed a traffic stop of a rental truck, inside of which they discovered a box containing six kilograms of fentanyl. The driver was arrested. The fentanyl and the truck were seized. When interviewed by Missouri State Police, the driver told troopers that he left Baldwin Park, California, on August 20, 2017, with the fentanyl, with instructions to bring the truck to a pre-determined location in Warwick, Rhode Island.
On August 23, 2017, an undercover law enforcement officer, posing as the truck driver arrested in Missouri, drove a similar rental truck to the same location the truck carrying the fentanyl was to have been driven to. Law enforcement established surveillance in the area of the truck and watched as a vehicle entered the area and the driver, Ronny Nova, surveilled the truck then drove away. Shortly after, the undercover officer posing as the person instructed to drive the truck containing the fentanyl to Warwick, was directed to a different parking lot nearby. When the truck arrived at the second location, the same vehicle arrived and the driver, Ronny Nova, exited the vehicle and began to approach the truck. As he did so, law enforcement arrested Nova. Nova was found to be carrying $12,892 in cash, close to the amount he was to have paid the driver for the delivery of the fentanyl.
Nova is scheduled to be sentenced by U.S. District Court John J. McConnell, Jr., on January 30, 2020.
The case is being prosecuted by Assistant U.S. Attorneys Paul F. Daly and William J. Ferland.
The Rhode Island DEA Drug Task Force is comprised of law enforcement personnel from DEA, Rhode Island State Police, and the East Providence, Central Falls, Coventry, Cranston, Newport, North Kingstown, Pawtucket, Providence, South Kingstown, Warwick, West Warwick and Woonsocket Police Departments.
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Ponchatoula Woman Sentenced for Obstructing JusticeRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that ANGEL PERILLOUX, age 39, of Ponchatoula, was sentenced on November 14, 2019 for obstruction of justice.
According to the court documents, PERILLOUX obstructed a federal grand jury investigation by soliciting individuals to remove evidence from an impounded vehicle. PERILLOUX discussed several unsuccessful attempts to break into the vehicle on recorded jail calls. Ultimately, at PERILLOUX’s direction, an employee of Cooper’s Salvage Yard and Wrecker Service removed a firearm and drug money from a vehicle and provided them to PERILLOUX.
U.S. District Judge Carl J. Barbier sentenced PERILLOUX to (3) years probation, to include (6) months of home detention. A $100 special assessment was also imposed.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Tangipahoa Parish Sheriff’s Office investigated this matter. The case was prosecuted by Assistant United States Attorney Maria M. Carboni.
Panama National Sentenced for Possession of Fraudulent Immigration DocumentsRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that FELIX ANTONIO SANCHEZ-GOMEZ, age 54, a citizen of the Republic of Panama, was sentenced on November 12, 2019 for possession of fraudulent immigration documents.
According to court documents, FELIX ANTONIO SANCHEZ-GOMEZ possessed a counterfeit Permanent Resident card.
U.S. District Judge Wendy B. Vitter sentenced FELIX ANTONIO SANCHEZ-GOMEZ to time served, and one year supervised release after imprisonment, and a $100 special assessment.
U.S. Attorney Strasser praised the work of the Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Owner of California Substance Abuse Treatment Facilities Charged in Scheme to Defraud ACA ProgramsRead the Press Release
U.S. Attorney John H. Durham of the District of Connecticut, Special Agent in Charge Phillip Coyne of the Boston Regional Office of the Office of the Inspector General of the Department of Health and Human Services, Special Agent in Charge Brian C. Turner of the FBI’s New Haven Division, and Special Agent in Charge Kristina O’Connell of IRS Criminal Investigation in New England, today announced that a federal grand jury in Connecticut has returned an indictment charging R. JEFFREY YATES, 52, of Santa Ana, California, with conspiracy and fraud offenses related to a scheme to defraud several state Affordable Care Act programs of millions of dollars.
The indictment was returned under seal on October 31, 2019, and Yates was arrested on November 6 in California. The indictment was unsealed in the District of Connecticut on November 13. Yates is released on bond pending his arraignment in Connecticut, which is not yet scheduled.
As alleged in the indictment, Yates owned and operated Morningside Recovery, a business that operated substance abuse treatment facilities in California. Yates conspired with others, including Jeffrey White and his son, Nicholas White, to defraud health care plans operating under the Affordable Care Act (“ACA,” commonly referred to as “Obamacare”) in Connecticut and other states by fraudulently enrolling individuals in ACA plans in states where the individuals did not live. In order to maximize their proceeds from the fraud scheme, the Whites would enroll the individuals in ACA plans in states that paid the highest amount for substance abuse treatment, even though the individuals did not live in those states. The Whites and Yates then arranged to have the individuals admitted to Morningside Recovery facilities for treatment. Morningside Recovery then billed ACA plans in Connecticut and elsewhere for thousands of dollars for treatment services. Yates and Morningside Recovery then paid the Whites for each patient that had been placed in a Morningside facility.
The indictment charges Yates with one count of conspiracy to commit health care fraud and mail fraud, seven counts of health care fraud, and five counts of mail fraud. If convicted, Yates faces a maximum term of imprisonment of 20 years on each of the conspiracy and mail fraud counts, and a maximum term of imprisonment of 10 years on each health care fraud count.
On October 12, 2018, Jeffrey White and Nicholas White each pleaded guilty to one count of conspiracy to commit health care fraud and admitted that their scheme resulted in more than $27 million in losses to ACA plans across the country, including ACA plans in Connecticut, Arizona, California, Delaware, Indiana, Kentucky, New Jersey, Ohio, Oregon, Pennsylvania, Tennessee and Texas. They await sentencing.
U.S. Attorney Durham noted that this case is believed to be the first of its kind involving fraudulent enrollment of individuals in ACA plans on a national scale.
This investigation is being conducted by the Office of the Inspector General of the U.S. Department of Health Human Services, the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation Division, and the U.S. Postal Inspection Service.
U.S. Attorney Durham thanked the Connecticut Affordable Care Act exchange, known as Access Health CT, and the U.S. Attorney’s Office for the Central District of California for their assistance with the investigation.
The case is being prosecuted by Assistant U.S. Attorney David J. Sheldon.
Operation Peacekeeper Targets Gang Members in SWGA, 20 Offenders in CustodyRead the Press Release
Albany, Ga. — Federal, state and local agencies took 20 offenders into custody during Operation Peacekeeper, a three-day effort to capture offenders involved in shootings, homicides and other violent crimes, announced Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. Operation Peacekeeper was spearheaded by U.S. Marshals Southeast Regional Fugitive Task Force (SERFTF), in coordination with the U.S. Attorney’s Office, Georgia Bureau of Investigations, the Albany Police Department Gang Unit, Pelham Police Department, Camilla Police Department, Dougherty County Sheriff’s Office, Mitchell County Sheriff’s Office and Dougherty County District Attorney’s Office. Additional agencies involved include U.S. Marshals Florida Caribbean Regional Fugitive Task Force, U.S. Marshals Middle District of Georgia and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The wanted offenders were taken into custody on November 13-15, 2019, the majority in Dougherty and Mitchell Counties. Operation Peacekeeper focused on individuals wanted on active felony warrants for violent crimes, as well as conducting proactive patrols to disrupt and ultimately dismantle criminal enterprises and individuals involved in violent crimes.
“This operation is part of law enforcement’s relentless commitment to reduce violent crime in Southwest Georgia, and across the Middle District,” said U.S. Attorney Charlie Peeler. “Operation Peacekeeper is a coordinated effort involving law enforcement agencies at every level, and was planned and executed with precision. I commend our law enforcement partners for the bravery and professionalism they exhibit every day when fighting crime across our region, and making our communities safer.”
“Operation Peacekeeper targeted gang members and violent criminals. The resources of the U.S. Marshals Service and its Regional Fugitive Task Forces coupled with the expertise of our local law enforcement partners make it difficult for wanted offenders to remain concealed from arrest,” said Supervisory Inspector Chris Wright, U.S. Marshals Service-Southeast Regional Fugitive Task Force.
“As part of an ongoing effort to combat crime in our community, the Albany Police Department utilizes the partnerships that we have with federal and state agencies to locate those persons who have active warrants for their arrest. In order for victims to receive the justice that they deserve, law enforcement must ensure that offenders are held accountable for their actions,” said APD Chief Michael Persley. “This partnership with the United States Marshals Service could not have been possible without the efforts of the U.S. Attorney of the Middle District of Georgia, Charlie Peeler. Together we are doing everything within our efforts to keep the community and Southwest Georgia safe.”
All individuals are presumed innocent unless and until convicted in a court of law. The following individuals were arrested during Operation Peacekeeper:
- Eric Bell, Albany, Georgia Possession of Cocaine, Trafficking in Cocaine, Possession of Drug Related Object, Possession of a Controlled Substance with Intent to Distribute
- Kaninja Carroll, Albany, Probation Violation
- Jaboris Cato, Albany, Probation Violation (Aggravated Assault)
- Michael Chapman, Albany, Interference with City Officer
- Nykiria Childs, Pelham, Georgia Theft by Taking Motor Vehicle
- Demetrius Davis, Albany, Probation Violation (Aggravated Assault/Armed Robbery), Possession of Marijuana
- Jah’Varee Dawson, Pelham, Possession of Marijuana
- Jonathan Gonzalas, Milledgeville, Georgia, Agg. Child Molestation (three counts)
- James A. Green, Albany, Probation Violation (Aggravated Assault), Aggravated Assault
- Brandon Johns, Bainbridge, Georgia, Aggravated Assault
- Kenneth Lyles, Albany, Probation Violation (Fraud), Terroristic Threats and Acts
- Bennie Mainor, Ft. Valley, Georgia, Aggravated Assault on Peace Officer, Fleeing/Attempting to Elude, Reckless Driving, Fail to Yield, Suspended or Revoked Driver’s License, Failure to Maintain Lane, Stop Sign Violation, Stop Sign Violation
- John Morgan, Albany, Probation Violation (Aggravated Assault)
- Dontavious Mosley, Macon, Georgia, Parole Violation (Aggravated Assault)
- Carl Randle Jr., Albany, Aggravated Assault
- Roosevelt Washington, Albany, Probation Violation (Felony Obstruction), Possession of Firearm by Convicted Felon
- Roderick Williams, Pelham, Georgia, Reckless Conduct, Simple Battery
- Saderick Williams, Donaldsonville, Georgia, Aggravated Assault, Discharging Firearms on Property of Another, Discharging of Firearm on/near Public Highway, Possession of Pistol by Person under 18, Criminal Damage to Property 2nd Degree, Criminal Trespass, Reckless Conduct
- Zuminique Williams, Albany, Probation Violation
- Shavaka Zachery, Albany, Trafficking in Ecstasy, Possession of a Controlled Substance with Intent to Distribute, Entering Automobile
Operation Peacekeeper was conducted as 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.
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.
Omaha Woman Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that Angela Vandervoort, 42, was sentenced today to 87 months in prison by United States District Judge Robert F. Rossiter, Jr. for conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine. In addition to her prison term, Vandervoort will serve five years of supervised release following her release from prison. She will also forfeit $3,969 in U.S. currency.
Law enforcement received a tip that Angela Vandervoort and Jason Sprinkel (co-defendants) were selling methamphetamine out of their residence in Omaha, Nebraska. Law enforcement obtained a search warrant for the residence. On January 18, 2018, officers saw Vandervoort and Sprinkel leave their residence and proceed to a gas station. Officers detained Vandervoort and Sprinkel while other officers simultaneously executed the search warrant on their residence.
As a result of the search, approximately 93 grams of actual methamphetamine was found inside the residence. Inside of the vehicle, officers located an additional 155 grams for a total of 248 grams of actual methamphetamine and $3,969 in United States currency. Vandervoort admitted to agreeing to sell, and having sold methamphetamine with Sprinkel, for approximately a three-month period prior to her arrest.
In November, 2018, Sprinkel was sentenced to a term of 87 months’ imprisonment and 5 years of supervised release following his release from prison.
This case was investigated by the Omaha Police Department.
Oklahoma City Man Pleads Guilty to Kidnapping, Robbery, and Firearm ChargesRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced Rafael Torres, age 35, of Oklahoma City, Oklahoma, entered a guilty plea to Kidnapping, in violation of Title 18, United States Code, Section 1201(a)(1), punishable by imprisonment for any term of years up to life, a fine up to $250,000.00, or both; to Interference With Commerce By Robbery, in violation of Title 18, United States Code, Section 1951, punishable by not more than 20 years imprisonment, a fine up to $250,000.00, or both; to Use, Carry, And Brandish A Firearm During And In Relation To A Crime Of Violence, in violation of Title 18, United States Code, Section 924(c)(1)(A)(ii), punishable by imprisonment for not less than 7 years consecutive to any other sentence imposed, a fine up to $250,000.00, or both; and to Felon In Possession Of Firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The Indictment alleged that on or about February 3, 2019, within the Eastern District of Oklahoma, the defendant, did unlawfully and willfully seize, confine, inveigle, kidnap, abduct and carry away J.S., and hold for the purpose of acquiring transportation, in committing or in furtherance of the commission of the offense, did willfully transport J.S. in interstate commerce from Oklahoma to Arkansas.
The Indictment further alleged that on or about February 3, 2019, in the Eastern District of Oklahoma, and elsewhere, the defendant, did unlawfully obstruct, delay and affect, and attempt to obstruct, delay and affect, commerce as that term is defined in Title 18, United States Code, Section 1951, and the movement of articles and commodities in such commerce, by robbery as that term is defined in Title 18, United States Code, Section 1951, in that the defendant, did unlawfully take and obtain personal property consisting of taking control of a motor vehicle owned by Morgan’s Towing and Recovery and operated by J.S. from J.S., against his will by means of actual and threatened force, violence, and fear of injury, immediate and future, to his person and property in his custody and possession.
The Indictment further alleged that on or about February 3, 2019, in the Eastern District of Oklahoma, the defendant, did knowingly brandish, carry and use a firearm during and in relation to a crime of violence for which he may be prosecuted in a court of the United States, that is, Interference with Commerce by Robbery.
The Indictment further alleged that on or about February 3, 2019, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the Morrilton Police Department (Arkansas) and the Federal Bureau of Investigation.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Sarah McAmis represented the United States.
Ocean Springs Man Pleads Guilty to Being a Convicted Felon in Possession of a FirearmRead the Press Release
Gulfport, Miss. – Joshua David Odom, 35, of Ocean Springs, pled guilty today before U.S. District Judge Sul Ozerden to being a convicted felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Kurt Thielhorn, Special Agent in Charge of The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
On October 12, 2017, Odom was in possession of a firearm he obtained from a residence in Jackson County. Odom was previously convicted in the Circuit Court of Jackson County and sentenced to serve a period of seven (7) years each on 2 separate counts of burglary, as well as three (3) years for credit card fraud, with the Mississippi Department of Corrections. As a convicted felon, Odom is prohibited from possessing a firearm.
Odom will be sentenced by Judge Ozerden on Friday, February 28, 2020, at 1:30 p.m., in Gulfport. He faces a maximum penalty of 10 years in prison and a $250,000 fine.
The case was investigated by The Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorney Andrea Jones.
November Grand JuryRead the Press Release
United States Attorney Joe Kelly announced the federal Grand Jury for the District of Nebraska has returned 10 indictments charging 10 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Roman Amador-Villeda, age 35, is charged with illegal reentry after deportation on or about October 31, 2019. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a 1-year term of supervised release, and a $100 special assessment.
* Doroteo Chama Albino, age 33, is charged with illegal reentry after deportation on or about November 7, 2019. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a 1-year term of supervised release, and a $100 special assessment.
* Fortino Fonseca Lopez, age 42, is charged with illegal reentry after deportation following a felony conviction on or about October 17, 2019. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Gustavo Adolfo Gonzales, age 38, is charged with illegal reentry after deportation on or about October 30, 2019. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a 1-year term of supervised release, and a $100 special assessment.
* Oslin Guillen-Molina, age 48, is charged with illegal reentry after deportation on or about October 29, 2019, following an aggravated felony conviction. The maximum possible penalty if convicted is 20 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Ramiro Hernandez-Gaspar, age 38, is charged with illegal reentry after deportation on or about October 23, 2019. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a 1-year term of supervised release, and a $100 special assessment.
* Bernard Jackson, age 44, of Walthill, Nebraska, is charged in a two-count Indictment. Count I charges the defendant with Strangulation, on October 30, 2019. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment. Count II charges the defendant with domestic assault by a habitual offender, on October 30, 2019. The maximum possible penalty if convicted is 5 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Josue Osuna-Salazar, age 25, is charged in a two-count Indictment. Count I charges the defendant with conspiracy to distribute and possession with intent to distribute 50 grams or more of methamphetamine on or about April 1, 2019, and continuing to on or about August 18, 2019. The maximum possible penalty if convicted is 40 years’ imprisonment, $5,000,000 fine, 4-year term of supervised release, and a $100 special assessment. Count II charges the defendant with possession with intent to distribute 5 grams or more of methamphetamine (actual) on or about April 15, 2019. The maximum possible penalty if convicted is 40 years’ imprisonment, $5,000,000 fine, 4-year term of supervised release, and a $100 special assessment.
* Gregorio Roblero Perez, age 39, is charged with illegal reentry after deportation on or about November 4, 2019. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a 1-year term of supervised release, and a $100 special assessment.
* Edward Williams, age 18, of Lincoln, Nebraska, is charged with unlawful user in possession of a firearm on or about September 19, 2019. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
New Orleans Man Pled Guilty to Federal Firearm ViolationRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that defendant PRENTISS CRAFT, of New Orleans, Louisiana, pled guilty on November 14, 2019 before U.S. District Court Chief Judge Nannette Jolivette Brown to being in receipt of a firearm while under indictment.
Specifically, CRAFT pled guilty to a one count Indictment charging him with being in receipt of a firearm while under indictment, in violation of Title 18, United States Code, Sections 922(n) and 924(a)(1)(D). CRAFT faces a maximum sentence of 5 years imprisonment, up to a $250,000 fine, three years supervised release and a $100 special assessment fee. CRAFT’S sentencing is scheduled for Thursday, February 20, 2020.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U. S. Attorney Strasser praised the work of the New Orleans Police Department, Jefferson Parish Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives in investigating this matter. The case is being prosecuted by Assistant United States Attorney Liz Privitera.
New Orleans Man Pleads Guilty to Conspiracy to Distribute HeroinRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that STEVEN DUNCAN, age 46, of New Orleans, pled guilty on November 14, 2019 to one count of conspiracy to distribute and possess with the intent to distribute one kilogram or more of heroin, in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(A), and 846.
According to court documents, in February 2018, STEVEN DUNCAN agreed to purchase heroin from two Houston-based suppliers, Carlos Gonzales Valencia and Alexander Muriel-Diaz.
STEVEN DUNCAN faces a mandatory minimum sentence of ten years imprisonment, and a maximum term of imprisonment of life, a fine of up to $10,000,000, at least five years of supervised release after imprisonment, and a mandatory $100 special assessment.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation and Drug Enforcement Administration in investigating this case. Assistant United States Attorneys Maria M. Carboni and Jonathan L. Shih are in charge of the prosecution.
New Orleans Man Pleads Guilty for Theft of Social Security Disability FundsRead the Press Release
NEW ORLEANS, LOUISIANA – ELIJAH CHARLES SORINA (“SORINA”), age 31, of New Orleans, Louisiana, pleaded guilty on November 14, 2019 to Theft of Government Funds, announced United States Attorney Peter G. Strasser.
According to court records, SORINA continued to receive Social Security Administration (“SSA”) disability benefits after he claimed he was disabled and unable to work. Federal special agents determined SORINA began working for a local transportation company as a school bus driver in 2014 after he obtained a commercial driver’s license. SSA determined that from May 2014 until August 2016, SORINA received benefits of $19,897.00 to which he was not entitled because he concealed his employment from the SSA.
SORINA will be sentenced on February 20, 2020, by Chief United States District Judge Nannette Jolivette Brown. He faces a maximum penalty of ten (10) years imprisonment, followed by up to three (3) years of supervised release, and a $250,000.00 fine.
U.S. Attorney Strasser praised the work of the Social Security Administration, Office of Inspector General and the Louisiana State Police. The prosecution of this case is being handled by Assistant U. S. Attorney Brian M. Klebba, Supervisor of the Financial Crimes Unit.
New Haven Man Pleads Guilty to Federal Drug and Gun OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that JESUS SEGUINOT, also known as “Chuchi,” 30, of New Haven, pleaded guilty yesterday before U.S. District Judge Jeffrey A. Meyer in New Haven to drug distribution and gun possession offenses.
According to court documents and statements made in court, on March 16, 2018, New Haven Police officers executed a state search warrant at Seguinot’s apartment on Congress Avenue and seized approximately 65 grams of cocaine, approximately 114 grams of marijuana, other items used to process and package drugs for distribution, and $5,480 in cash. Seguinot was arrested on state charges at that time.
On April 20, 2018, Stamford Police officers arrested Seguinot in Stamford after they found in possession approximately 80 grams of cocaine and crack cocaine, a quantity of marijuana, a digital scale, drug packaging materials, and $1,613 in cash.
On May 17, 2018, a search of Seguinot’s new residence on Stevens Street in New Haven revealed approximately 20 grams of crack cocaine, drug packaging materials, a scale with white residue, a .38 caliber bullet on his bedroom nightstand, and a loaded .38 Special Taurus revolver with an obliterated serial number.
Prior to May 2018, Seguinot had been convicted in state court of felony drug, weapon and other offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
On July 22, 2018, Seguinot sold a quantity of cocaine to another individual for $20 on Liberty Street in New Haven.
Seguinot has been detained since his federal arrest on April 11, 2019.
Seguinot pleaded guilty to one count of possession with intent to distribute cocaine, which carries a maximum term of imprisonment of 20 years, and one count of possession of a firearm by a convicted felon, which carries a maximum term of imprisonment of 10 years.
This investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, New Haven Police Department and Stamford Police Department. The case is being prosecuted by Assistant U.S. Attorney Patricia Stolfi Collins.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.
Mexican National Involved in Fatal Hit and Run Pleads Guilty to Illegal ReentryRead the Press Release
Orlando, FL – Jesus Bolanos Rodriguez (26, Orlando) today pleaded guilty to illegal reentry after deportation. He faces a maximum penalty of two years in federal prison. A sentencing date has not yet been set.
According to court documents, in January 2015, Bolanos Rodriguez, a native and citizen of Mexico, was convicted of illegal entry into the United States and was deported. He returned to the United States at some point thereafter, and, on September 22, 2019, he was arrested by the Apopka Police Department for leaving the scene of a crash involving death and physical injury. Bolanos Rodriguez was subsequently released on bond and taken into federal custody, at which point he was charged with illegal reentry after deportation.
This case was investigated by Immigration and Customs Enforcement – Enforcement and Removal Operations. It is being prosecuted by Special Assistant United States Attorney Brandon Bayliss, on assignment from the Office of Principal Legal Advisor, U.S. Immigration and Customs Enforcement.
Maryland Man Sentenced to Prison for Credit Card Fraud OffensesRead the Press Release
Bangor, Maine: A Takoma Park, Maryland man was sentenced today in federal court in Portland for his involvement in a conspiracy to use stolen credit card numbers, U.S. Attorney Halsey B. Frank announced.
U.S. District Judge John A. Woodcock, Jr., sentenced Bryan Boley, 33, to concurrent sentences of 22 months imprisonment and three years of supervised release on six access-device-fraud charges. He was also ordered to pay a $1000 fine. The amount of restitution he will be ordered to pay to victims will be determined at a later date. He pleaded guilty on May 16, 2019.
According to court records, Boley conspired with others to use counterfeit credit cards at Maine stores. He bought the credit card numbers online. A search of his hotel room in January of this year led to the seizure of several dozen plastic cards, 47 of which had been fraudulently re-encoded; about 25 receipts showing purchases of gift cards and other items; and a credit card reader/writer. At the time of his arrest, Boley had an additional 19 cards on his person, 17 of which had been re-encoded with credit card numbers that did not belong to him.
In pronouncing sentence, Judge Woodcock remarked on Boley’s “wasted potential,” noting that he was gifted with natural intelligence and had educated parents, but had used his talents for criminality.
A co-defendant, Marcellin N’Din, pleaded guilty on July 10, 2019, to two access-device-fraud offenses. His sentencing is scheduled for November 22, 2019.
The United States Secret Service; the Maine State Police; and the Auburn, Brunswick, Cape Elizabeth and Yarmouth police departments investigated the case.
Manager of Medical Clinics in Brooklyn and Queens Convicted of Multimillion-Dollar Money Laundering and Health Care Kickback SchemesRead the Press Release
BROOKLYN, NY – A federal jury in Brooklyn returned a guilty verdict on all counts today against Aleksandr Pikus, the manager of medical clinics in Brooklyn and Queens, New York, for his role in multimillion-dollar health care kickback and money laundering schemes. Specifically, Pikus was convicted of conspiracy to commit money laundering, money laundering, conspiracy to receive and pay health care kickbacks and conspiracy to defraud the United States by obstructing the Internal Revenue Service (IRS). The verdict followed a two-week trial before United States District Judge Ann M. Donnelly. When sentenced, Pikus faces a maximum sentence of up to 70 years’ imprisonment.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division, Scott J. Lampert, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of Inspector General, New York Region (HHS-OIG), and Jonathan D. Larsen, Acting Special Agent-in-Charge, IRS Criminal Investigation (IRS-CI), announced the verdict.
“Pikus’s health care schemes were a toxic brew of kickbacks and money laundering that streamed millions of dollars into the pockets of the defendant and his co-conspirators at the expense of the Medicare and Medicaid programs,” stated United States Attorney Donoghue. “Today’s verdict demonstrates the resolve of this Office and our law enforcement partners to protect taxpayer-funded health care programs upon which our citizens rely.”
“Aleksandr Pikus was the architect of a massive healthcare kickback and money laundering scheme in which he and his co-conspirators stole tens of millions of dollars from the Medicare and Medicaid programs,” stated Assistant Attorney General Benczkowski. “The jury’s verdict reflects the tireless work of our dedicated prosecutors and law enforcement partners to achieve justice and protect these essential healthcare programs on behalf of American taxpayers.”
“Mr. Pikus brazenly participated in a greed-fueled scheme that stole millions from Medicare and Medicaid,” stated HHS-OIG Special Agent-in-Charge Lampert. “Along with our law enforcement partners, HHS-OIG will continue to protect the public and the taxpayer funded health care programs that serve those who need them.”
“IRS Criminal Investigation is committed to ensuring that every taxpayer is measured by the same rule of law while paying their fair share,” said IRS-CI Special Agent-in-Charge Larsen. “Our special agents play a critical role investigating criminal violations of the Internal Revenue Code and related financial crimes. Every day, we entrust medical service providers with our most valuable asset—our health. That is why healthcare kickbacks and money laundering schemes like this one are particularly disturbing. Today’s guilty verdict serves as a reminder that crimes like money laundering and tax fraud will not go unpunished.”
As proven at trial, Pikus and his co-conspirators operated a series of medical clinics for nearly a decade that employed doctors, physical and occupational therapists and other medical professionals who were enrolled in the Medicare and Medicaid programs. Pikus and his co-conspirators referred individuals to these health care providers who, in turn, submitted nearly $100 million in claims to the Medicare and Medicaid programs. In return for his referrals, Pikus received illegal kickbacks from the medical providers in the form of checks payable to shell companies that he and his co-conspirators controlled. Pikus then laundered a substantial portion of the illegal proceeds of the scheme through check-cashing businesses and failed to report that cash income to the IRS. Pikus used the cash to enrich himself and to pay patient recruiters, including ambulette drivers, who paid beneficiaries to receive treatment at the defendant’s medical clinics.
Pikus is the fifth defendant convicted in this indictment. In December 2016, Malvina Yablonskaya pleaded guilty to money laundering conspiracy and conspiracy to defraud the IRS. In November 2017, Maksim Vernik pleaded guilty to money laundering conspiracy. In December 2017, Denis Satyr pleaded guilty to money laundering conspiracy and conspiracy to defraud the IRS. In September 2019, Mark Tsyvin pleaded guilty to conspiracy to receive and pay health care kickbacks and conspiracy to defraud the IRS. The defendants are awaiting sentencing.
This case was investigated by the HHS-OIG and IRS-CI, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York. Assistant Chief A. Brendan Stewart and Trial Attorneys Sarah Wilson Rocha and Andrew Estes of the Fraud Section are prosecuting the case.
The Defendant:
ALEKSANDR PIKUS
Age: 44
Brooklyn, New YorkE.D.N.Y. Docket No. 16-CR-329 (AMD)
Man Who Attempted to Flee Arrest Convicted of Gun CrimeRead the Press Release
OKLAHOMA CITY – LAQUAY LEE JEFFERS, 41, has been convicted by a jury of being a felon in possession of a firearm, announced U.S. Attorney Timothy J. Downing.
According to an indictment filed on June 4, 2019, Jeffers possessed a firearm on April 4, 2019, after having been convicted of a crime punishable by imprisonment of more than one year. He has been in pre-trial custody of the U.S. Marshals Service since June 14.
During a trial that began on November 12, a jury heard that an Oklahoma City police officer attempted to stop Jeffers for a traffic violation late in the afternoon of April 4. Jeffers was the only person in the car. Rather than stopping, he drove through an apartment complex parking lot in an apparent attempt to flee. After he was boxed in between two buildings, the officer pulled Jeffers out of his car. A .380 pistol was on the front passenger seat.
On November 14, the jury unanimously found Jeffers guilty. In doing so, it rejected Jeffers’s defense that the gun belonged to his girlfriend and he was not aware it was in the car.
At sentencing, Jeffers faces up to ten years in prison, three years of supervised release, and a fine of up to $250,000. Sentencing will take place in approximately 90 days.
This conviction is the result of an investigation by the Oklahoma City Police Department and the Federal Bureau of Investigation, Oklahoma City Field Office. Prosecuted by Assistant U.S. Attorneys Ashley L. Altshuler and Travis D. Smith, the case is part of Project Safe Neighborhoods, the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions. As part of this strategy, PSN focuses on the most violent offenders and partners with local prevention and re-entry programs for lasting reductions in crime.
Reference is made to public filings for further information.
Man Sentenced to Prison for Assaulting Navajo Nation Police OfficerRead the Press Release
PHOENIX, Ariz. – This week, Roland Allen Denny, of Baby Rocks, Ariz., was sentenced by U.S. District Judge Dominic W. Lanza to 15 months of imprisonment to be followed by three years of supervised release. Denny had previously pleaded guilty to assault on a federal officer.
In October 2018, Navajo Nation police and emergency medical personnel responded to a single-vehicle accident near Kayenta, Arizona, on the Navajo Nation Indian Reservation. Denny was the sole occupant of the vehicle and was intoxicated. When first responders attempted to assist Denny with medical treatment, he punched one of the police officers in the jaw. The officer, like many tribal police officers, holds a Special Law Enforcement Commission from the Bureau of Indian Affairs and is thus authorized to enforce federal and tribal law.
The investigation in this case was conducted by the Federal Bureau of Investigation, with substantial assistance by the Navajo Nation Division of Public Safety. The prosecution was handled by Assistant U.S. Attorney Alexander Samuels, District of Arizona, Phoenix.
MS-13 Gang Member Sentenced to 20 Years in Machete Attack CaseRead the Press Release
An MS-13 gang member was sentenced to 20 years in federal prison for his role in a brutal machete attack at a park just outside Dallas, Texas, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox Assistant Attorney General Brian A. Benczkowski.
“We cannot allow machete-wielding gang members to menace our neighborhoods,” said U.S. Attorney Nealy Cox. “The feds are determined to put anyone who commits violence in the name of this brutal transnational gang behind bars.”
“Transnational MS-13 gang members brutally target rival gangs in the U.S. and use our cities as their own personal urban battlefield,” said Ryan L. Spradlin, special agent in charge of HSI Dallas. “This gang member’s reign of terror in the U.S. is over while he spends the next 20 years in U.S. federal prison.”
Manuel Amaya-Alvarez, 22, pleaded guilty in May to four counts of violent crime in aid of racketeering (VICAR). U.S. District Judge Jayne Boyle handed down Amaya-Alvarez’s sentence on Nov. 14.
According to court documents, Amaya-Alvarez – an El Salvadorian national in the United States illegally – admitted he belonged to MS-13, a notorious and violent transnational street gang.
In Sept. 25, 2017, he admitted he and fellow MS-13 gang members attempted to “take out,” or kill, four individuals at Running Bear Park in Irving, Texas.
That night, the gang lured an individual – a man they perceived to be a rival gang member – to the park under the guise that they wanted to buy his tattoo machine. The man came with two other men and a female acquaintance. When they arrived, gang members lured them to wooded area in the back of the park, where additional gang members – armed with a shotgun, machetes, and clubs – lay in wait.
After Amaya-Alvarez and another gang member, both seated on a park bench, greeted the victims, the other gang members appeared and surrounded the victims, forcing them to kneel on the ground before robbing them and attacking them with machetes and clubs, according to court documents. The three men fled, but the female could not escape and was savagely maimed and left for dead.
Two of the men also suffered serious physical injuries, including blunt trauma from blows and severe cuts from a machete.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Irving Police Department conducted the investigation. Assistant U.S. Attorneys Gary Tromblay and Sid Moody and Trial Attorney Julie Finocchiaro with the Department of Justice's Organized Crime and Gang Section are prosecuting the case.
Leaders and Members of Mafia Family Convicted of Murder, Racketeering, and Other CrimesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that MATTHEW MADONNA, STEVEN L. CREA, CHRISTOPHER LONDONIO, and TERRENCE CALDWELL, were convicted today, after a six-week jury trial, of murder, conspiracy to commit racketeering, and other felonies. Fifteen other defendants have previously pled guilty to related charges.
U.S. Attorney Geoffrey S. Berman said: “The violent and disturbing acts of these four organized crime figures included the brutal murder of associate Michael Meldish. Fittingly, all four defendants have been found guilty of their heinous acts of fraud, extortion, and murder on the six-year anniversary of Meldish’s death. Thanks to the outstanding investigative work of the FBI and NYPD, we will continue our commitment to making organized crime a thing of a bygone era.”
According to the evidence presented at trial, and other court documents:
Until his arrest in this case, MADONNA was the Acting Boss of the Luchese Family of La Cosa Nostra, one of the “Five Families” that constitute the Mafia in the New York City area. In 2013, MADONNA became displeased with Michael Meldish, a longtime organized crime associate who had refused to collect debts owed to MADONNA. MADONNA ordered Meldish killed, leading to Meldish’s murder on this date six years ago. As the Acting Boss of the Family, MADONNA also received payments from a host of other illegal activities, including the extortion of labor union members, loansharking, illegal gambling operations, and drug-trafficking.
CREA is the official Underboss, or second-in-command, of the Luchese Family. As the Underboss, he participated in MADONNA’s decision to kill Meldish, and relayed the order to lower-ranking members of the Family. As a member of the Family’s leadership, or “administration,” CREA also profited from the same illegal activities as MADONNA. CREA was personally involved in several criminal schemes, including fraud and extortion in a large construction project at a public hospital, the extortion of one of his subordinates, and ordering the assault of a relative.
LONDONIO is a made member of the Luchese Family. Acting under the orders of MADONNA and CREA, LONDONIO helped setup Meldish—a personal friend of LONDONIO’s—to be killed, and acted as the getaway driver for the murder. LONDONIO also carried firearms and other weapons, beat an associate of a rival crime family with a baseball bat, and personally participated in extortion, operating illegal gambling businesses, and drug-trafficking, among other crimes.
CALDWELL is an associate of the Luchese Family, who participated in its crimes but was not formally inducted as a member. On May 29, 2013, CALDWELL ambushed a member of the rival Bonanno Family in Manhattan. CALDWELL fired several shots into the victim’s car at close range and struck him once in the chest, but the victim survived. On November 15, 2013, CALDWELL carried out MADONNA’s and CREA’s orders to kill Michel Meldish. CALDWELL met Meldish and drove with him to a Bronx neighborhood to meet LONDONIO. As Meldish got out of his car, CALDWELL shot him once in the head, killing him instantly. CALDWELL then drove off with LONDONIO.
* * *
MADONNA, 84, of the Bronx, New York; CREA, 72, of Crestwood, New York; LONDONIO, 45, of Hartsdale, New York; and CALDWELL, 61, of Manhattan, New York, were each found guilty of one count of racketeering conspiracy, which carries a maximum sentence of life in prison; conspiracy to commit murder in aid of racketeering, which carries a maximum sentence of ten years in prison; murder in aid of racketeering, which carries a mandatory minimum sentence of life in prison; and use of a firearm in furtherance of murder in aid of racketeering, which carries a mandatory minimum sentence of five years in prison and a maximum sentence of life in prison.
CREA was acquitted of one count of attempted murder and assault in aid of racketeering and one count of use of a firearm in furtherance of attempted murder and assault in aid of racketeering.
LONDONIO was also found guilty of one count of conspiracy to distribute narcotics, which carries a maximum sentence of twenty years in prison. LONDONIO was acquitted of one count of attempting to escape from the Metropolitan Detention Center.
CALDWELL was also found guilty of one count of attempted murder in aid of racketeering, which carries a maximum sentence of twenty years in prison, and one count of discharging a firearm in furtherance of attempted murder in aid of racketeering, which carries a mandatory minimum sentence of ten years in prison and a maximum sentence of life in prison.
Mr. Berman praised the outstanding investigative work of the FBI, the NYPD, the Department of Homeland Security Homeland Security Investigations, the Waterfront Commission of New York Harbor, and the Bureau of Prisons.
The case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Hagan Scotten, Celia V. Cohen, Alexandra N. Rothman, Scott Hartman, and Jaqueline Kelly are in charge pf the prosecution; paralegal specialist Shannon Becker provided additional support.
Law Enforcement Leaders Announce Project Guardian-DMVRead the Press Release
WASHINGTON – A new illegal firearms initiative announced today, Project Guardian-DMV, is designed to reduce violent crime and further enforce federal firearms laws across the District of Columbia, Maryland, and Virginia (DMV).
The new initiative builds on the Justice Department’s national effort, Project Guardian, announced by Attorney General William P. Barr on Wednesday.
“Gun crime remains a pervasive problem in too many communities across America,” said Attorney General Barr. “The Department of Justice is redoubling its commitment to tackling this issue through the launch of Project Guardian. Building on the success of past programs like Triggerlock, Project Guardian will strengthen our efforts to reduce gun violence by allowing the federal government and our state and local partners to better target offenders who use guns in crimes and those who try to buy guns illegally.”
Project Guardian-DMV will localize the effort to the DMV region, and expands upon the current partnership between the U.S. Attorney’s Offices in the District of Columbia and the Eastern District of Virginia, the ATF, and Metro Police Department, and now also includes the U.S. Attorney’s Offices in Maryland and the Western District of Virginia, and the Virginia State Police.
“The public is on notice that we are deadly serious about illegal firearms offenses,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Now with leadership of Attorney General Barr, all the tentacles of the Department of Justice, including the ATF and its Crime Gun Intelligence capabilities, and the amazing men and women in blue on the beat, we are doubling down on illegal firearms with Project Guardian.”
Reducing gun violence and enforcing federal firearms laws have always been among the Department’s highest priorities. In order to develop a new and robust effort to promote and ensure public safety, the Department reviewed and adapted some of the successes of past strategies to curb gun violence. Project Guardian draws on the Department’s earlier achievements, such as the “Triggerlock” program, and it serves as a complementary effort to the success of Project Safe Neighborhoods (PSN). In addition, the initiative emphasizes the importance of using all modern technologies available to law enforcement to promote gun crime intelligence.
“Working together with our federal and local partners is key to reducing gun violence and violent crime in the region,” said Jessie K. Liu, U.S. Attorney for the District of Columbia. “Project Guardian will allow us to identify specific incidents and trends, thereby enabling us to move quickly in investigating and prosecuting violent crime in the most appropriate venue. The correlation between the availability and use of illegal guns and violent crime is undeniable, and we will continue to work closely with our partners in the law enforcement community in the promotion of public safety and the pursuit of justice. “
“Through this partnership, we hope to stanch the flow of illegal guns from the Commonwealth of Virginia to Washington, Baltimore, and other cities in the Northeast, where, too often, they are used to commit violent crimes,” said Thomas T. Cullen, U.S Attorney for the Western District of Virginia. “We will work closely with our U.S. attorney partners, the ATF, the MPD, and the Virginia State Police to identify individuals and groups in Western Virginia engaged in this deadly enterprise and put them in federal prison.”
“We are committed to working with our federal, state, and local law enforcement partners to get guns off of our streets, in order to reduce violent crime in our neighborhoods,” said Rob K. Hur, U.S. Attorney for the District of Maryland. “If you use a gun, you could face federal time, where there is no parole—ever. Please, put down the guns and save a life—maybe even your own.”
“Straw purchasers and firearms traffickers do more than commit paperwork violations or illegally sell a firearm – they knowingly put firearms in the hands of people who should not have them, including violent offenders. These traffickers have no regard for the safety of D.C.,
Maryland, and Virginia communities,” said Ashan M. Benedict, Special Agent in Charge of ATF’s Washington Field Division. “As part of Project Guardian, ATF will continue to work alongside our local, state, and federal law enforcement partners and U.S. Attorney’s Officers to ensure anyone committing these crimes is held accountable. We are putting all gun traffickers on notice that we will find you; you will be held accountable; and you will be punished under the law.”
“Criminals do not concern themselves with state line or jurisdictions, so we have ensured that our efforts to stop the illegal flow of guns into Maryland involves working closely with our neighboring ATF Field Division in Washington, as well as neighboring U.S. Attorney’s Offices in Virginia and D.C.,” said Rob Cekada, Special Agent in Charge of ATF Baltimore Field Division. “Our focus is on identifying, investigating, and incarcerating anyone who uses firearms to commit violent crime, and those who traffic or straw purchase firearms are supplying these offenders. Project Guardian serves to further strengthen our multi-state and District partnerships with law enforcements and prosecutors so we can brings these criminals to justice.”
Project Guardian’s national and DMV implementation is based on five principles:
- Coordinated Prosecution. Federal prosecutors and law enforcement will coordinate with state, local, and tribal law enforcement and prosecutors to consider potential federal prosecution for new cases involving a defendant who: a) was arrested in possession of a firearm; b) is believed to have used a firearm in committing a crime of violence or drug trafficking crime prosecutable in federal court; or c) is suspected of actively committing violent crime(s) in the community on behalf of a criminal organization.
- Enforcing the Background Check System. United States Attorneys, in consultation with the Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in their district, will create new, or review existing, guidelines for intake and prosecution of federal cases involving false statements (including lie-and-try, lie-and-buy, and straw purchasers) made during the acquisition or attempted acquisition of firearms from Federal Firearms Licensees.
Particular emphasis is placed on individuals convicted of violent felonies or misdemeanor crimes of domestic violence, individuals subject to protective orders, and individuals who are fugitives where the underlying offense is a felony or misdemeanor crime of domestic violence; individuals suspected of involvement in criminal organizations or of providing firearms to criminal organizations; and individuals involved in repeat denials.
- Improved Information Sharing. On a regular basis, and as often as practicable given current technical limitations, ATF will provide to state law enforcement fusion centers a report listing individuals for whom the National Instant Criminal Background Check System (NICS) has issued denials, including the basis for the denial, so that state and local law enforcement can take appropriate steps under their laws.
- Coordinated Response to Mental Health Denials. Each United States Attorney will ensure that whenever there is federal case information regarding individuals who are prohibited from possessing a firearm under the mental health prohibition, such information continues to be entered timely and accurately into the United States Attorneys’ Offices’ case-management system for prompt submission to NICS. ATF should engage in additional outreach to state and local law enforcement on how to use this denial information to better assure public safety.
Additionally, United States Attorneys will consult with relevant district stakeholders to assess feasibility of adopting disruption of early engagement programs to address mental-health-prohibited individuals who attempt to acquire a firearm. United States Attorneys should consider, when appropriate, recommending court-ordered mental health treatment for any sentences issued to individuals prohibited based on mental health.
- Crime Gun Intelligence Coordination. Federal, state, local, and tribal prosecutors and law enforcement will work together to ensure effective use of the ATF’s Crime Gun Intelligence Centers (CGICs), and all related resources, to maximize the use of modern intelligence tools and technology. These tools can greatly enhance the speed and effectiveness in identifying trigger-pullers and finding their guns, but the success depends in large part on state, local, and tribal law enforcement partners sharing ballistic evidence and firearm recovery data with the ATF.
Our sincere thanks to the National Law Enforcement Officers Memorial Fund for their tremendous support of this announcement.
Law Enforcement Leaders Announce Project Guardian-DMVRead the Press Release
ALEXANDRIA, Va. – A new illegal firearms initiative announced today, Project Guardian-DMV, is designed to reduce violent crime and further enforce federal firearms laws across the District of Columbia, Maryland, and Virginia (DMV).
The new initiative builds on the Justice Department’s national effort, Project Guardian, announced by Attorney General William P. Barr on Wednesday.
“Gun crime remains a pervasive problem in too many communities across America,” said Attorney General Barr. “The Department of Justice is redoubling its commitment to tackling this issue through the launch of Project Guardian. Building on the success of past programs like Triggerlock, Project Guardian will strengthen our efforts to reduce gun violence by allowing the federal government and our state and local partners to better target offenders who use guns in crimes and those who try to buy guns illegally.”
Project Guardian-DMV will localize the effort to the DMV region, and expands upon the current partnership between the U.S. Attorney’s Offices in the District of Columbia and the Eastern District of Virginia, the ATF, and Metro Police Department, and now also includes the U.S. Attorney’s Offices in Maryland and the Western District of Virginia, and the Virginia State Police.
“The public is on notice that we are deadly serious about illegal firearms offenses,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Now with leadership of Attorney General Barr, all the tentacles of the Department of Justice, including the ATF and its Crime Gun Intelligence capabilities, and the amazing men and women in blue on the beat, we are doubling down on illegal firearms with Project Guardian.”
Reducing gun violence and enforcing federal firearms laws have always been among the Department’s highest priorities. In order to develop a new and robust effort to promote and ensure public safety, the Department reviewed and adapted some of the successes of past strategies to curb gun violence. Project Guardian draws on the Department’s earlier achievements, such as the “Triggerlock” program, and it serves as a complementary effort to the success of Project Safe Neighborhoods (PSN). In addition, the initiative emphasizes the importance of using all modern technologies available to law enforcement to promote gun crime intelligence.
“Working together with our federal and local partners is key to reducing gun violence and violent crime in the region,” said Jessie K. Liu, U.S. Attorney for the District of Columbia. “Project Guardian will allow us to identify specific incidents and trends, thereby enabling us to move quickly in investigating and prosecuting violent crime in the most appropriate venue. The correlation between the availability and use of illegal guns and violent crime is undeniable, and we will continue to work closely with our partners in the law enforcement community in the promotion of public safety and the pursuit of justice. “
“Through this partnership, we hope to stanch the flow of illegal guns from the Commonwealth of Virginia to Washington, Baltimore, and other cities in the Northeast, where, too often, they are used to commit violent crimes,” said Thomas T. Cullen, U.S Attorney for the Western District of Virginia. “We will work closely with our U.S. attorney partners, the ATF, the MPD, and the Virginia State Police to identify individuals and groups in Western Virginia engaged in this deadly enterprise and put them in federal prison.”
“We are committed to working with our federal, state, and local law enforcement partners to get guns off of our streets, in order to reduce violent crime in our neighborhoods,” said Rob K. Hur, U.S. Attorney for the District of Maryland. “If you use a gun, you could face federal time, where there is no parole—ever. Please, put down the guns and save a life—maybe even your own.”
“Straw purchasers and firearms traffickers do more than commit paperwork violations or illegally sell a firearm – they knowingly put firearms in the hands of people who should not have them, including violent offenders. These traffickers have no regard for the safety of D.C., Maryland, and Virginia communities,” said Ashan M. Benedict, Special Agent in Charge of ATF’s Washington Field Division. “As part of Project Guardian, ATF will continue to work alongside our local, state, and federal law enforcement partners and U.S. Attorney’s Officers to ensure anyone committing these crimes is held accountable. We are putting all gun traffickers on notice that we will find you; you will be held accountable; and you will be punished under the law.”
“Criminals do not concern themselves with state line or jurisdictions, so we have ensured that our efforts to stop the illegal flow of guns into Maryland involves working closely with our neighboring ATF Field Division in Washington, as well as neighboring U.S. Attorney’s Offices in Virginia and D.C.,” said Rob Cekada, Special Agent in Charge of ATF Baltimore Field Division. “Our focus is on identifying, investigating, and incarcerating anyone who uses firearms to commit violent crime, and those who traffic or straw purchase firearms are supplying these offenders. Project Guardian serves to further strengthen our multi-state and District partnerships with law enforcements and prosecutors so we can brings these criminals to justice.”
Project Guardian’s national and DMV implementation is based on five principles:
- Coordinated Prosecution. Federal prosecutors and law enforcement will coordinate with state, local, and tribal law enforcement and prosecutors to consider potential federal prosecution for new cases involving a defendant who: a) was arrested in possession of a firearm; b) is believed to have used a firearm in committing a crime of violence or drug trafficking crime prosecutable in federal court; or c) is suspected of actively committing violent crime(s) in the community on behalf of a criminal organization.
- Enforcing the Background Check System. United States Attorneys, in consultation with the Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in their district, will create new, or review existing, guidelines for intake and prosecution of federal cases involving false statements (including lie-and-try, lie-and-buy, and straw purchasers) made during the acquisition or attempted acquisition of firearms from Federal Firearms Licensees.
Particular emphasis is placed on individuals convicted of violent felonies or misdemeanor crimes of domestic violence, individuals subject to protective orders, and individuals who are fugitives where the underlying offense is a felony or misdemeanor crime of domestic violence; individuals suspected of involvement in criminal organizations or of providing firearms to criminal organizations; and individuals involved in repeat denials.
- Improved Information Sharing. On a regular basis, and as often as practicable given current technical limitations, ATF will provide to state law enforcement fusion centers a report listing individuals for whom the National Instant Criminal Background Check System (NICS) has issued denials, including the basis for the denial, so that state and local law enforcement can take appropriate steps under their laws.
- Coordinated Response to Mental Health Denials. Each United States Attorney will ensure that whenever there is federal case information regarding individuals who are prohibited from possessing a firearm under the mental health prohibition, such information continues to be entered timely and accurately into the United States Attorneys’ Offices’ case-management system for prompt submission to NICS. ATF should engage in additional outreach to state and local law enforcement on how to use this denial information to better assure public safety.
Additionally, United States Attorneys will consult with relevant district stakeholders to assess feasibility of adopting disruption of early engagement programs to address mental-health-prohibited individuals who attempt to acquire a firearm. United States Attorneys should consider, when appropriate, recommending court-ordered mental health treatment for any sentences issued to individuals prohibited based on mental health.
- Crime Gun Intelligence Coordination. Federal, state, local, and tribal prosecutors and law enforcement will work together to ensure effective use of the ATF’s Crime Gun Intelligence Centers (CGICs), and all related resources, to maximize the use of modern intelligence tools and technology. These tools can greatly enhance the speed and effectiveness in identifying trigger-pullers and finding their guns, but the success depends in large part on state, local, and tribal law enforcement partners sharing ballistic evidence and firearm recovery data with the ATF.
Our sincere thanks to the National Law Enforcement Officers Memorial Fund for their tremendous support of this announcement.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Law Enforcement Leaders Announce Project Guardian-DMVRead the Press Release
Baltimore, Maryland – A new illegal firearms initiative announced today, Project Guardian-DMV, is designed to reduce violent crime and further enforce federal firearms laws across the District of Columbia, Maryland, and Virginia (DMV). The new initiative builds on the Justice Department’s national effort, Project Guardian, announced by Attorney General William P. Barr on Wednesday.
The initiative was announced by United States Attorney for the District of Maryland Robert K. Hur; United States Attorney for the Eastern District of Virginia G. Zachary Terwilliger; United States Attorney for the District of Columbia Jessie K. Liu; United States Attorney for the Western District of Virginia Thomas Cullen; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Special Agent in Charge Ashan M. Benedict of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Washington Field Division; Chief Peter Newsham of the Metropolitan Police Department; and Colonel Gary T. Settle, Superintendent of the Virginia State Police.
“Gun crime remains a pervasive problem in too many communities across America,” said Attorney General Barr. “The Department of Justice is redoubling its commitment to tackling this issue through the launch of Project Guardian. Building on the success of past programs like Triggerlock, Project Guardian will strengthen our efforts to reduce gun violence by allowing the federal government and our state and local partners to better target offenders who use guns in crimes and those who try to buy guns illegally.”
Project Guardian-DMV will localize the effort to the DMV region, and expands upon the current partnership between the U.S. Attorney’s Offices in the District of Columbia and the Eastern District of Virginia, the ATF, and Metro Police Department, and now also includes the U.S. Attorney’s Offices in Maryland and the Western District of Virginia, and the Virginia State Police.
“We are committed to working with our federal, state, and local law enforcement partners to get guns off of our streets, in order to reduce violent crime in our neighborhoods,” said Robert K. Hur, U.S. Attorney for the District of Maryland. “If you use a gun, you could face federal time, where there is no parole—ever. Please, put down the guns and save a life—maybe even your own.”
Reducing gun violence and enforcing federal firearms laws have always been among the Department’s highest priorities. In order to develop a new and robust effort to promote and ensure public safety, the Department reviewed and adapted some of the successes of past strategies to curb gun violence. Project Guardian draws on the Department’s earlier achievements, such as the “Triggerlock” program, and it serves as a complementary effort to the success of Project Safe Neighborhoods (PSN). In addition, the initiative emphasizes the importance of using all modern technologies available to law enforcement to promote gun crime intelligence.
“Working together with our federal and local partners is key to reducing gun violence and violent crime in the region,” said Jessie K. Liu, U.S. Attorney for the District of Columbia. “Project Guardian will allow us to identify specific incidents and trends, thereby enabling us to move quickly in investigating and prosecuting violent crime in the most appropriate venue. The correlation between the availability and use of illegal guns and violent crime is undeniable, and we will continue to work closely with our partners in the law enforcement community in the promotion of public safety and the pursuit of justice. “
“The public is on notice that we are deadly serious about illegal firearms offenses,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Now with leadership of Attorney General Barr, all the tentacles of the Department of Justice, including the ATF and its Crime Gun Intelligence capabilities, and the amazing men and women in blue on the beat, we are doubling down on illegal firearms with Project Guardian.”
“Through this partnership, we hope to stanch the flow of illegal guns from the Commonwealth of Virginia to Washington, Baltimore, and other cities in the Northeast, where, too often, they are used to commit violent crimes,” said Thomas T. Cullen, U.S Attorney for the Western District of Virginia. “We will work closely with our U.S. attorney partners, the ATF, the MPD, and the Virginia State Police to identify individuals and groups in Western Virginia engaged in this deadly enterprise and put them in federal prison.”
“Criminals do not concern themselves with state line or jurisdictions, so we have ensured that our efforts to stop the illegal flow of guns into Maryland involves working closely with our neighboring ATF Field Division in Washington, as well as neighboring U.S. Attorney’s Offices in Virginia and D.C.,” said Rob Cekada, Special Agent in Charge of ATF Baltimore Field Division. “Our focus is on identifying, investigating, and incarcerating anyone who uses firearms to commit violent crime, and those who traffic or straw purchase firearms are supplying these offenders. Project Guardian serves to further strengthen our multi-state and District partnerships with law enforcements and prosecutors so we can brings these criminals to justice.”
“Straw purchasers and firearms traffickers do more than commit paperwork violations or illegally sell a firearm – they knowingly put firearms in the hands of people who should not have them, including violent offenders. These traffickers have no regard for the safety of D.C., Maryland, and Virginia communities,” said Ashan M. Benedict, Special Agent in Charge of ATF’s Washington Field Division. “As part of Project Guardian, ATF will continue to work alongside our local, state, and federal law enforcement partners and U.S. Attorney’s Officers to ensure anyone committing these crimes is held accountable. We are putting all gun traffickers on notice that we will find you; you will be held accountable; and you will be punished under the law.”
Project Guardian’s national and DMV implementation is based on five principles:
- Coordinated Prosecution. Federal prosecutors and law enforcement will coordinate with state, local, and tribal law enforcement and prosecutors to consider potential federal prosecution for new cases involving a defendant who: a) was arrested in possession of a firearm; b) is believed to have used a firearm in committing a crime of violence or drug trafficking crime prosecutable in federal court; or c) is suspected of actively committing violent crime(s) in the community on behalf of a criminal organization.
- Enforcing the Background Check System. United States Attorneys, in consultation with the Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in their district, will create new, or review existing, guidelines for intake and prosecution of federal cases involving false statements (including lie-and-try, lie-and-buy, and straw purchasers) made during the acquisition or attempted acquisition of firearms from Federal Firearms Licensees.
Particular emphasis is placed on individuals convicted of violent felonies or misdemeanor crimes of domestic violence, individuals subject to protective orders, and individuals who are fugitives where the underlying offense is a felony or misdemeanor crime of domestic violence; individuals suspected of involvement in criminal organizations or of providing firearms to criminal organizations; and individuals involved in repeat denials.
- Improved Information Sharing. On a regular basis, and as often as practicable given current technical limitations, ATF will provide to state law enforcement fusion centers a report listing individuals for whom the National Instant Criminal Background Check System (NICS) has issued denials, including the basis for the denial, so that state and local law enforcement can take appropriate steps under their laws.
- Coordinated Response to Mental Health Denials. Each United States Attorney will ensure that whenever there is federal case information regarding individuals who are prohibited from possessing a firearm under the mental health prohibition, such information continues to be entered timely and accurately into the United States Attorneys’ Offices’ case-management system for prompt submission to NICS. ATF should engage in additional outreach to state and local law enforcement on how to use this denial information to better assure public safety.
Additionally, United States Attorneys will consult with relevant district stakeholders to assess feasibility of adopting disruption of early engagement programs to address mental-health-prohibited individuals who attempt to acquire a firearm. United States Attorneys should consider, when appropriate, recommending court-ordered mental health treatment for any sentences issued to individuals prohibited based on mental health.
- Crime Gun Intelligence Coordination. Federal, state, local, and tribal prosecutors and law enforcement will work together to ensure effective use of the ATF’s Crime Gun Intelligence Centers (CGICs), and all related resources, to maximize the use of modern intelligence tools and technology. These tools can greatly enhance the speed and effectiveness in identifying trigger-pullers and finding their guns, but the success depends in large part on state, local, and tribal law enforcement partners sharing ballistic evidence and firearm recovery data with the ATF.
Our sincere thanks to the National Law Enforcement Officers Memorial Fund for their tremendous support of this announcement.
- Coordinated Prosecution. Federal prosecutors and law enforcement will coordinate with state, local, and tribal law enforcement and prosecutors to consider potential federal prosecution for new cases involving a defendant who: a) was arrested in possession of a firearm; b) is believed to have used a firearm in committing a crime of violence or drug trafficking crime prosecutable in federal court; or c) is suspected of actively committing violent crime(s) in the community on behalf of a criminal organization.
Law Enforcement Leaders Announce Project Guardian-DMVRead the Press Release
Roanoke, VIRGINIA – A new illegal firearms initiative announced today, Project Guardian-DMV, is designed to reduce violent crime and further enforce federal firearms laws across the District of Columbia, Maryland, and Virginia (DMV).
The new initiative builds on the Justice Department’s national effort, Project Guardian, announced by Attorney General William P. Barr on Wednesday.
“Gun crime remains a pervasive problem in too many communities across America,” said Attorney General Barr. “The Department of Justice is redoubling its commitment to tackling this issue through the launch of Project Guardian. Building on the success of past programs like Triggerlock, Project Guardian will strengthen our efforts to reduce gun violence by allowing the federal government and our state and local partners to better target offenders who use guns in crimes and those who try to buy guns illegally.”
Project Guardian-DMV will localize the effort to the DMV region, and expands upon the current partnership between the U.S. Attorney’s Offices in the District of Columbia and the Eastern District of Virginia, the ATF, and Metro Police Department, and now also includes the U.S. Attorney’s Offices in Maryland and the Western District of Virginia, and the Virginia State Police.
“Through this partnership, we hope to stanch the flow of illegal guns from the Commonwealth of Virginia to Washington, Baltimore, and other cities in the Northeast, where, too often, they are used to commit violent crimes,” said Thomas T. Cullen, U.S Attorney for the Western District of Virginia. “We will work closely with our U.S. attorney partners, the ATF, the MPD, and the Virginia State Police to identify individuals and groups in Western Virginia engaged in this deadly enterprise and put them in federal prison.”
“The public is on notice that we are deadly serious about illegal firearms offenses,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Now with leadership of Attorney General Barr, all the tentacles of the Department of Justice, including the ATF and its Crime Gun Intelligence capabilities, and the amazing men and women in blue on the beat, we are doubling down on illegal firearms with Project Guardian.”
Reducing gun violence and enforcing federal firearms laws have always been among the Department’s highest priorities. In order to develop a new and robust effort to promote and ensure public safety, the Department reviewed and adapted some of the successes of past strategies to curb gun violence. Project Guardian draws on the Department’s earlier achievements, such as the “Triggerlock” program, and it serves as a complementary effort to the success of Project Safe Neighborhoods (PSN). In addition, the initiative emphasizes the importance of using all modern technologies available to law enforcement to promote gun crime intelligence.
“Working together with our federal and local partners is key to reducing gun violence and violent crime in the region,” said Jessie K. Liu, U.S. Attorney for the District of Columbia. “Project Guardian will allow us to identify specific incidents and trends, thereby enabling us to move quickly in investigating and prosecuting violent crime in the most appropriate venue. The correlation between the availability and use of illegal guns and violent crime is undeniable, and we will continue to work closely with our partners in the law enforcement community in the promotion of public safety and the pursuit of justice. “
“We are committed to working with our federal, state, and local law enforcement partners to get guns off of our streets, in order to reduce violent crime in our neighborhoods,” said Rob K. Hur, U.S. Attorney for the District of Maryland. “If you use a gun, you could face federal time, where there is no parole—ever. Please, put down the guns and save a life—maybe even your own.”
“Straw purchasers and firearms traffickers do more than commit paperwork violations or illegally sell a firearm – they knowingly put firearms in the hands of people who should not have them, including violent offenders. These traffickers have no regard for the safety of D.C., Maryland, and Virginia communities,” said Ashan M. Benedict, Special Agent in Charge of ATF’s Washington Field Division. “As part of Project Guardian, ATF will continue to work alongside our local, state, and federal law enforcement partners and U.S. Attorney’s Officers to ensure anyone committing these crimes is held accountable. We are putting all gun traffickers on notice that we will find you; you will be held accountable; and you will be punished under the law.”
“Criminals do not concern themselves with state line or jurisdictions, so we have ensured that our efforts to stop the illegal flow of guns into Maryland involves working closely with our neighboring ATF Field Division in Washington, as well as neighboring U.S. Attorney’s Offices in Virginia and D.C.,” said Rob Cekada, Special Agent in Charge of ATF Baltimore Field Division. “Our focus is on identifying, investigating, and incarcerating anyone who uses firearms to commit violent crime, and those who traffic or straw purchase firearms are supplying these offenders. Project Guardian serves to further strengthen our multi-state and District partnerships with law enforcements and prosecutors so we can brings these criminals to justice.”
Project Guardian’s national and DMV implementation is based on five principles:
- Coordinated Prosecution. Federal prosecutors and law enforcement will coordinate with state, local, and tribal law enforcement and prosecutors to consider potential federal prosecution for new cases involving a defendant who: a) was arrested in possession of a firearm; b) is believed to have used a firearm in committing a crime of violence or drug trafficking crime prosecutable in federal court; or c) is suspected of actively committing violent crime(s) in the community on behalf of a criminal organization.
- Enforcing the Background Check System. United States Attorneys, in consultation with the Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in their district, will create new, or review existing, guidelines for intake and prosecution of federal cases involving false statements (including lie-and-try, lie-and-buy, and straw purchasers) made during the acquisition or attempted acquisition of firearms from Federal Firearms Licensees.
Particular emphasis is placed on individuals convicted of violent felonies or misdemeanor crimes of domestic violence, individuals subject to protective orders, and individuals who are fugitives where the underlying offense is a felony or misdemeanor crime of domestic violence; individuals suspected of involvement in criminal organizations or of providing firearms to criminal organizations; and individuals involved in repeat denials. - Improved Information Sharing. On a regular basis, and as often as practicable given current technical limitations, ATF will provide to state law enforcement fusion centers a report listing individuals for whom the National Instant Criminal Background Check System (NICS) has issued denials, including the basis for the denial, so that state and local law enforcement can take appropriate steps under their laws.
- Coordinated Response to Mental Health Denials. Each United States Attorney will ensure that whenever there is federal case information regarding individuals who are prohibited from possessing a firearm under the mental health prohibition, such information continues to be entered timely and accurately into the United States Attorneys’ Offices’ case-management system for prompt submission to NICS. ATF should engage in additional outreach to state and local law enforcement on how to use this denial information to better assure public safety.
Additionally, United States Attorneys will consult with relevant district stakeholders to assess feasibility of adopting disruption of early engagement programs to address mental-health-prohibited individuals who attempt to acquire a firearm. United States Attorneys should consider, when appropriate, recommending court-ordered mental health treatment for any sentences issued to individuals prohibited based on mental health. - Crime Gun Intelligence Coordination. Federal, state, local, and tribal prosecutors and law enforcement will work together to ensure effective use of the ATF’s Crime Gun Intelligence Centers (CGICs), and all related resources, to maximize the use of modern intelligence tools and technology. These tools can greatly enhance the speed and effectiveness in identifying trigger-pullers and finding their guns, but the success depends in large part on state, local, and tribal law enforcement partners sharing ballistic evidence and firearm recovery data with the ATF.
Laplace Man Sentenced on Firearms and Drug ChargesRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that GARRETT STEPHENS, age 36, of LaPlace, was sentenced on November 13, 2019 for one count of conspiracy to distribute 5 grams or more of methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(A), and 846, and one count of possessing a firearm during a drug trafficking crime, in violation of 18 U.S.C. § 924(c)(1)(A)(i). STEPHENS pled guilty on April 3, 2019 to the above-described offenses.
Judge Martin L.C. Feldman sentenced STEPHENS to a total of 211 months of imprisonment followed by 4 years of supervised release.
U.S. Attorney Strasser praised the work of the Drug Enforcement Administration in investigating this matter. Assistant United States Attorneys Jonathan L. Shih and Nicholas D. Moses are in charge of the prosecution.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (“OCDETF”). OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Laplace Man Sentenced on Methamphetamine ChargesRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that EDWIN WATSON, age 37, of LaPlace, was sentenced on November 14, 2019 for one count of conspiracy to distribute 50 grams or more of methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(A), and 846, and one count of distribution of 50 grams or more of methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(A). WATSON pled guilty on February 21, 2019 to the above-described offenses.
Judge Barry W. Ashe sentenced WATSON to a total of 120 months of imprisonment followed by 5 years of supervised release.
U.S. Attorney Strasser praised the work of the Drug Enforcement Administration in investigating this matter. Assistant United States Attorneys Jonathan L. Shih and Nicholas D. Moses are in charge of the prosecution.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (“OCDETF”). OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Knoxville resident charged with the distribution of fentanyl and heroin, resulting in overdose deaths of twoRead the Press Release
Knoxville, Tenn. – On October 16, 2019, a federal grand jury in Knoxville returned a two- count indictment against Kevin L. Catlett, 45, of Knoxville, Tennessee.
The indictment, on file with the U.S. District Court, alleges that Kevin L. Catlett distributed a quantity of a mixture and substance containing fentanyl, a Schedule II controlled substance, and heroin, a Schedule I controlled substance that resulted in the death of another on September 6, 2018. The indictment also charged Catlett with distributed a quantity of a mixture and substance containing fentanyl, a Schedule II controlled substance that resulted in the death of another on November 13, 2018.
If convicted of distribution of controlled substances, the defendant faces a maximum term of 20 years imprisonment for each count, and, if the deaths resulted from the use of the substance, the penalty would increase to a mandatory term of imprisonment of at least 20 years and up to life in prison, at least three years of supervised release, a fine of up to $1,000,000, any applicable forfeiture, and a $100 special assessment.
The investigation was conducted by the Monroe County Sheriff’s Office and the Roane County Sheriff’s Office. Leading up to the indictment, these organizations partnered with the Tennessee Bureau of Investigation, Knox County Sheriff’s Office, Appalachian HIDTA’s Drug Related Death Task Force, and the Knox County Regional Forensics Center. Assistant U.S. Attorney Brent N. Jones will represent the United States.
Today, the United States faces an unprecedented drug epidemic. The Centers for Disease Control (CDC) estimates that more than 70,000 Americans died of drug overdoses in 2017. Many of these deaths are attributed to the increased abuse of potent and dangerous synthetic opioids like fentanyl. These charges are the result of investigations supported by the Organized Crime Drug Enforcement Task Forces (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
This case has been set for trial on January 7, 2020.
###Justice Department Awards over $42 Million to Improve Public Safety and Serve Crime Victims in Alaska Native CommunitiesRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that in the past 90 days, the Department of Justice has awarded over $49 million in grants to Alaska Native communities and tribal organizations to improve public safety, serve victims of crime, combat violence against women, and support youth programs. That amount includes the $42 million recently announced by Attorney General William Barr at the 2019 Alaska Federation of Natives Convention in Fairbanks. These grants to Alaska were part of $273.4 million in grants that were awarded nationwide to American Indian and Alaska Native communities.
In Alaska, the problems with violent crime in rural areas are so severe that this summer the Attorney General declared a law enforcement emergency, providing additional resources to our state. At that time, the AG announced $6 million in Emergency Federal Law Enforcement Assistance (EFLEA) grants, and $5 million in grants from the Office of Community Oriented Policing Services (COPS) Tribal Resources Grant Program (TRGP). The $49 million in grants are in addition to the EFLEA and TRGP funding and show the continued commitment of the Department of Justice to the people of rural Alaska, and to the state as a whole.
“Violent crime and domestic abuse in American Indian and Alaska Native communities remain at unacceptably high levels, and they demand a response that is both clear and comprehensive,” said Attorney General William P. Barr. “We will continue to work closely with our tribal partners to guarantee they have the resources they need to curb violence and bring healing to the victims most profoundly affected by it.”
Nationwide, 236 grants were awarded to 149 American Indian tribes, Alaska Native communities and other tribal designees through the Coordinated Tribal Assistance Solicitation (CTAS), a streamlined application for tribal-specific grant programs. Of the $118 million awarded via CTAS, just over $62.6 million comes from the Office of Justice Programs (OJP), about $33.1 million from the Office on Violence Against Women and more than $23.2 million from the COPS. A portion of the funding will support tribal youth mentoring and intervention services, help native communities implement requirements of the Sex Offender Registration and Notification Act, and provide training and technical assistance to tribal communities. Another $5.5 million was funded by OJP’s Bureau of Justice Assistance to provide training and technical assistance to CTAS awardees.
The Department also announced awards and other programming totaling $167.2 million in a set-aside program to serve victims of crime. The awards are intended to help tribes develop, expand and improve services to victims by supporting programming and technical assistance. About $25.6 million of these awards were awarded under CTAS and are included in the $118 million detailed above.
CTAS funding helps tribes develop and strengthen their justice systems’ response to crime, while expanding services to meet their communities’ public safety needs. The awards cover 10 purpose areas: public safety and community policing; justice systems planning; alcohol and substance abuse; corrections and correctional alternatives; children’s justice act partnerships; services for victims of crime; violence against women; juvenile justice; violent crime reduction; and tribal youth programs.
The Department also provided $6.1 million to help tribes to comply with federal law on sex offender registration and notification, $1.7 million in separate funding to assist tribal youth and nearly $500,000 to support tribal research on missing and murdered indigenous women and children and other public safety-related topics.
Alaska’s share of this nationwide grant funding was significant. Over $20 million of the CTAS grant funding was awarded to Alaska. In addition, over $22 million of the set-aside funding for victims of crime was also awarded to Alaska Native communities and tribal entities. Those grant funds alone totaled over $42 million dollars, as the Attorney General announced to the delegates of the Alaska Federation of Natives. Alaska Native communities and tribal organizations will also have access to an additional $7 million in “micro-grants” through the Denali Commission to help provide victim services, including capacity building and technical assistance.
- A listing of CTAS awards is available at: https://www.justice.gov/tribal/awards.
- A listing of all other announced tribal awards are available at: https://go.usa.gov/xVJuE.
Note: The significance of the number in the left column next to each Alaska Native community refers to the Coordinated Tribal Assistance Solicitation (“CTAS”) purpose area that the tribe identified when applying for the grant, more info here: /media/1116486/dl?inline
This announcement is part of the Justice Department’s ongoing initiative to increase engagement, coordination and action on public safety in American Indian and Alaska Native communities.
Jefferson County Counselor Guilty of Health Care Fraud in Overbilling SchemeRead the Press Release
BEAUMONT, Texas – A 59-year-old Beaumont mental health care counselor has pleaded guilty to health care fraud in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Douglas Duane Franklin pleaded guilty to an Information charging him with health care fraud today before U.S. Magistrate Judge Zack Hawthorn.
According to information presented in court, since 2007, Franklin has been the owner and sole provider at Guiding Light Counseling Service, PLLC, where he provides mental health counseling services, for which he bills Medicaid, Medicare and private insurance. Between 2007 and 2019, Franklin was reimbursed $591,600.69 for three different time-based counseling CPT codes, all in durations of 30 minutes or more. Medicaid rules require that the indicated time is spent face-to-face with the patient, and expressly does not include time for documentation or other administrative activities. Between 2007 and 2019, Franklin submitted over 10,000 claims for visits exceeding 30 minutes or more.
During the course of a months-long investigation, investigators with the US Attorney’s Office, the FBI, HHS-OIG, and the Texas Attorney General’s Medicaid Fraud Control Unit discovered that Franklin had patient sessions scheduled in 30-minute increments, some of which were double-booked. However, out of the 10,215 claims submitted by Franklin, only one was for a 30-minute visit. All of the remaining visits were billed under the 45-minute or 60-minute CPT codes, which provided for an increased reimbursement rate. Franklin was paid a total of $591,600.69 for all claims under the previously described CPT codes, when he was only entitled to receive $321,772.50. As a result of Franklin submitting fraudulent claims, he was overpaid $269,828.19 by Medicaid.
Under federal statutes, Franklin faces up to 10 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being investigated by the Federal Bureau of Investigation, HHS-OIG, and the Texas Attorney General’s Medicaid Fraud Control Unit. This case is being prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.
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Jasper County Men, Houston Woman, Guilty of Federal Drug Trafficking ViolationsRead the Press Release
BEAUMONT, Texas – Two Buna, Texas men and a Houston woman have pleaded guilty to federal drug trafficking crimes in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
James Joseph Fabela, 41, Benjamin Jason Fabela, 35, both of Buna, Texas, and Darian Michelle Simmons, 25, of Houston, each pleaded guilty to conspiracy to distribute and to possess with intent to distribute methamphetamine today before U.S. Magistrate Judge Zack Hawthorn. Simmons also pleaded guilty to conspiracy to launder money.
According to information presented in court, from as early as July 2016, the defendants have been involved in a drug trafficking enterprise trafficking methamphetamine in the Buna, Texas area. James Fabela and Benjamin Fabela have supervised, managed and controlled the drug trafficking organization with personal knowledge of the distribution of methamphetamine. In total, the organization sold nearly 200 grams of methamphetamine in the Southeast Texas area. Their plea agreements include the forfeiture of a home in Buna, Texas. Simmons arranged for couriers to transport and conceal drugs and money to and from Houston for further distribution in Southeast Texas and Southwest Louisiana. Simmons is responsible for distributing at least 1.028 kilograms of methamphetamine.
The defendants were indicted by a federal grand jury on Sep. 5, 2018.
Under federal statutes, the defendants face from 10 years to life in prison for the drug conspiracy charge. Simmons also faces up to up to 20 years for the money laundering conspiracy violations. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is the result of an extensive joint investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. Six other defendants have been convicted and sentenced for their roles in the conspiracies.
This case was investigated by the U.S. Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Texas Department of Public Safety, the Jefferson County Sheriff’s Office and the Jasper County Sheriff’s Office. This case is being prosecuted by Assistant U.S. Attorney Christopher Rapp.
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Jamestown, ND, Man Sentenced to 12 1/2 Years for Possession and Distribution of Child PornographyRead the Press Release
“We are fully committed to detecting, investigating, and aggressively prosecuting the reprehensible defendants who create, distribute, or possess child pornography.”
--United States Attorney Drew H. Wrigley
Fargo – United States Attorney Drew H. Wrigley announced that on November 15, 2019, Chief Judge Peter D. Welte, U.S. District Court, Fargo, ND, sentenced Brent Robert Braun, age 44, Jamestown, ND, to serve 12 ½ years in prison, followed by a 15 years of supervised release for the charges of Possession and Distribution of Materials Containing Child Pornography. Braun was further ordered to pay restitution in the amount of $46,000 to the victims and $200 in special assessments to the Crime Victims’ Fund.
Between March 2018 and June 2018, Special Agents from the North Dakota Bureau of Investigation conducted an online investigation of peer-to-peer file sharing networks for individuals sharing child pornography, and discovered that hundreds of files containing known child pornography had been downloaded to Brent Braun’s internet IP address. A search of Braun’s residence revealed several electronic media devices which contained more than 21,000 files of child pornography and more than 1.2 million files of child erotica. The child pornographic material depicted the graphic sexual abuse of children as young as two years of age.
“Every one of these images is essentially a crime scene photo cataloguing the brutal sexualization and victimization of the children involved,” said United States Attorney Drew Wrigley, “as such, we are fully committed to detecting, investigating, and aggressively prosecuting the reprehensible defendants who create, distribute, or possess child pornography. We must fight to protect children from these horrifying crimes.”
This case was investigated by the North Dakota Bureau of Investigation.
Assistant United States Attorney Jennifer Klemetsrud-Puhl prosecuted the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by U.S. Attorney’s Offices throughout the nation, Project Safe Childhood, in conjunction with Internet Crimes Against Children Task Force (ICAC), help federal, state, and local law enforcement agencies enhance their investigative responses to offenders who use the Internet, online communications systems, or computer technology to sexually exploit children. The ICAC Program is a national network of 61 coordinated task forces engaging in proactive investigations, forensic investigations, and criminal prosecutions. Project Safe Childhood also helps to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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INFORMATIONAL: Federal Court ArraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Cavan and pleading not guilty on November 15:
- John Jay Dudik, 66, of Billings on charges of conspiracy to possess with intent to distribute controlled substances, and possession with intent to distribute methamphetamine. If convicted of the most serious crime, Dudik faces a minimum mandatory 10 years to life in prison, a $10,000,000 fine and at least five years of supervised release. Dudik was detained pending further proceedings. The case was investigated by the Drug Enforcement Administration. Pacer case reference. 19-105.
Appearing in Great Falls before U.S. Magistrate Johnston and pleading not guilty on November 14:
- Jordan Alexander Werk, 31, of Fort Belknap, on charges of assault of a dating partner resulting in substantial bodily injury and strangulation. If convicted of the most serious crime, Werk faces 10 years in prison, a $250,000 fine and three years of supervised release. Werk was detained pending further proceedings. The case was investigated by the Federal Bureau of Investigation and Fort Belknap Law Enforcement Services. Pacer case reference. 19-82.
Appearing in Missoula before U.S. Magistrate DeSoto and pleading not guilty on November 14:
- Rigonaldo Diaz Chixna, 25, of Mexico, on charges of illegal reentry. If convicted of the most serious crime, Chixna faces two years in prison, a $250,000 fine and three years of supervised release. Chixna was detained pending further proceedings. The case was investigated by Gallatin County Sheriff’s Office, Department of Homeland Security, and Immigration and Customs Enforcement. Pacer case reference. 19-26
Appearing in Great Falls before U.S. Magistrate Johnston and pleading not guilty on November 12:
- Shawn Andrew Andersen, 42, of Cut Bank, on charges of advertisement of child pornography, attempted distribution and receipt of child pornography, attempted coercion and enticement of a minor, and prohibited person in possession of a firearm. If convicted of the most serious crime, Andersen faces life in prison, a $250,000 fine and lifetime supervised release. Andersen was detained pending further proceedings. The case was investigated by the Federal Bureau of Investigation. Pacer case reference. 19-79.
- Katie Lynn Big Bow, 44, of Box Elder, on charges of assault of a dating partner resulting in substantial bodily injury and assault with a dangerous weapon. If convicted of the most serious crime, Big Bow faces 10 years in prison, a $250,000 fine and three years of supervised release. Big Bow was detained pending further proceedings. The case was investigated by the Federal Bureau of Investigation and Chippewa Cree Law Enforcement Services. Pacer case reference. 19-80.
Appearing in Billings before U.S. Magistrate Cavan and pleading not guilty on November 12:
- William James Watson, 40, of Billings, on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute meth and possession of firearm during a drug trafficking crime. If convicted of the most serious crime, Watson faces a minimum mandatory 10 years to life in prison, a $10,000,000 fine and at least five years of supervised release. Watson was detained pending further proceedings. The case was investigated by the FBI West Task Force. Pacer case reference. 19-142.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Head of New York Medical Clinics Found Guilty in Nearly $100 Million Money Laundering and Health Care Kickback SchemeRead the Press Release
The manager in control of multiple medical clinics in Brooklyn and Queens, New York, was found guilty today for his role in a nearly $100 million health care kickback and money laundering scheme.
After a two-week trial, Aleksandr Pikus, 44, of Brooklyn, was found guilty of one count of conspiracy to commit money laundering, two counts of money laundering, one count of conspiracy to receive and pay health care kickbacks and one count of conspiracy to defraud the United States by obstructing the IRS. Sentencing has been set for April 8, 2020.
“Aleksandr Pikus was the architect of a massive healthcare kickback and money laundering scheme in which he and his co-conspirators stole tens of millions of dollars from the Medicare and Medicaid programs,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The jury’s verdict reflects the tireless work of our dedicated prosecutors and law enforcement partners to achieve justice and protect these essential healthcare programs on behalf of American taxpayers.”
“Pikus’s health care schemes were a toxic brew of kickbacks and money laundering that streamed millions of dollars into the pockets of the defendant and his co-conspirators at the expense of the Medicare and Medicaid programs,” said U.S. Attorney Richard P. Donoghue for the Eastern District of New York. “Today’s verdict demonstrates the resolve of this office and our law enforcement partners to protect taxpayer-funded health care programs upon which our citizens rely.”
“Mr. Pikus brazenly participated in a greed-fueled scheme that stole millions from Medicare and Medicaid,” said Special Agent in Charge Scott J. Lampert for the Office of Inspector General of the U.S. Department of Health and Human Services (HHS-OIG). “Along with our law enforcement partners, HHS-OIG will continue to protect the public and the taxpayer funded health care programs that serve those who need them.”
“IRS Criminal Investigation is committed to ensuring that every taxpayer is measured by the same rule of law while paying their fair share,” said Special Agent in Charge Jonathan D. Larsen of the IRS Criminal Investigation’s (IRS-CI) New York Office. “Our special agents play a critical role investigating criminal violations of the Internal Revenue Code and related financial crimes. Every day, we entrust medical service providers with our most valuable asset—our health. That is why healthcare kickbacks and money laundering schemes like this one are particularly disturbing. Today’s guilty verdict serves as a reminder that crimes like money laundering and tax fraud will not go unpunished.”
According to evidence presented at trial, Pikus and his co-conspirators operated a series of medical clinics in Brooklyn and Queens over the course of nearly a decade that submitted approximately $96 million in medical claims. The clinics employed doctors, physical and occupational therapists, and other medical professionals who were enrolled in the Medicare and Medicaid programs. In return for illegal kickbacks, Pikus and his co-conspirators referred beneficiaries to these health care providers, who submitted claims to the Medicare and Medicaid programs, the evidence showed. Pikus then laundered a substantial portion of those proceeds through companies he and his co-conspirators controlled, including by cashing checks at several New York City check-cashing businesses; he and his co-conspirators then failed to report that cash income to the IRS. Pikus used that cash to enrich himself and others and to pay kickbacks to patient recruiters, including ambulette drivers, who, in turn, paid beneficiaries to receive treatment at the defendant’s medical clinics. The evidence further established that Pikus used shell companies and fake invoices to conceal his illegal activities.
More than 25 other individuals have pleaded guilty to or been convicted of participating in the scheme, including physicians, physical and occupational therapists, ambulette drivers, and the owners of several of the sham shell companies used to launder the stolen money.
This case was investigated by the HHS-OIG and IRS-CI, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York. Assistant Chief A. Brendan Stewart and Trial Attorneys Sarah Wilson Rocha and Andrew Estes of the Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Greene County Commissioner of Revenue and Son Indicted on Federal ChargesRead the Press Release
Charlottesville, VIRGINIA – A federal grand jury sitting in U.S. District Court in Charlottesville has charged Larry Vernon Snow, 70, and his son, Bryant Austin Snow, 31, with federal conspiracy and identity theft charges, United States Attorney Thomas T. Cullen and FBI Special Agent in Charge for the Richmond Division David W. Archey announced today.
In an indictment returned under seal on October 23, 2019, and unsealed last week, the grand jury has charged Larry Snow, the current Commissioner of Revenue for Greene County, and his son, Bryant Snow, each with one count of conspiracy to commit identity theft and two counts of identity theft. Both defendants made their initial court appearances today in federal court.
According to the indictment, between on or about April 21, 2018, to May 2, 2018, Larry Snow and Bryant Snow, conspired to knowingly use, without lawful authority, the identification of other individuals, specifically names, addresses, vehicle identification numbers, and license plate numbers, with the intent to commit and/or in connection with drug trafficking.
The investigation of the case was conducted by the Federal Bureau of Investigation and the Virginia Department of Motor Vehicles. Assistant United States Attorney Kate Rumsey is prosecuting the case for the United States.
A grand jury indictment is only a charge and not evidence of guilt. The defendants are entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Georgia Woman Admits Using NBA Player’s Stolen Identity in Scheme to Obtain $2.5 Million LoanRead the Press Release
NEWARK, N.J. – A Georgia woman today admitted using a National Basketball Association (NBA) player’s stolen identity to attempt to obtain a $2.5 million loan, U.S. Attorney Craig Carpenito announced.
Annie M. Ford, 51, of Atlanta, Georgia, pleaded guilty before U.S. District Judge Kevin McNulty to an indictment charging her with one count of wire fraud and one count of aggravated identity theft.
According to documents filed in this case and statements made in court:
From October 2013 through November 2013, Ford tried to fraudulently obtain a $2.5 million loan from a New York-based lending company using the stolen identity of another individual, who at the time was a NBA player and resident of New Jersey.
Ford created fraudulent documents using the victim’s name. She also forged or caused to be forged the victim’s signature on multiple documents, including a Merchant Agreement between the victim and the lender, an escrow document providing that the $2.5 million loan would be deposited into a bank account controlled by Ford, and a power of attorney document appointing another individual involved in the scheme to serve as the victim’s “attorney-in-fact” for banking and financial matters. Those fraudulent and forged documents were submitted in support of the $2.5 million loan application.
The wire fraud charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The aggravated identity theft charge carries a maximum potential penalty of two years in prison, which must be served consecutively to any other prison term. Sentencing is scheduled for March 4, 2020.U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; and inspectors with the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Catherine R. Murphy of the Economic Crimes Unit.
Defense counsel: Bruno C. Bier, Esq., New York
Georgia Man Sentenced to 18 Years for Conspiring to Distribute MethamphetamineRead the Press Release
Ocala, Florida – U.S. District Judge Paul Byron today sentenced Eric Pedro Valdez (39, Atlanta) to 18 years in federal prison for conspiring to distribute methamphetamine. A federal jury had found Valdez guilty on August 2, 2019.
According to testimony and evidence presented at trial, between November 2015 and May 2016, Valdez conspired with others to distribute more than 70 kilograms of methamphetamine. On March 23, 2016, Valdez hand-delivered 4 kilograms of methamphetamine to two co-conspirators at a business in the Atlanta area. The drugs were intended for distribution in Sumter County.
This case was investigated by the Drug Enforcement Administration and the Sumter County Sheriff’s Office. It was prosecuted by Assistant United States Attorney William S. Hamilton.
Four Individuals Indicted in November 2019 Federal Grand JuryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office announced today the results of the November 2019 Federal Grand Jury.
The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.
TAKILA SHAUNTEL CARPENTER, age 34, of Murfreesboro, Tennessee
Possession With Intent To Distribute Methamphetamine
The Indictment alleges that on or about September 19, 2019, in the Eastern District of Oklahoma, the defendant, TAKILA SHAUNTEL CARPENTER, did knowingly and intentionally possess with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A), punishable by not less than 10 years and not more than life imprisonment, a fine up to $10,000,000.00, or both.
The charges arose from an investigation by the Sequoyah County Sheriff’s Office and Homeland Security Investigations.
Assistant United States Attorney Ryan Conway.
CHARLES P. HENDRICKS, age 31, of McAlester, Oklahoma
a/k/a "TUFFY"Drug Conspiracy
Money Laundering ConspiracyThe Indictment alleges that from in or about April, 2017, the exact date being unknown to the Grand Jury, and continuing until on or about June 26, 2019, within the Eastern District of Oklahoma and elsewhere, the Defendant, CHARLES P. HENDRICKS, a/k/a TUFFY, did knowingly and intentionally combine, conspire, confederate and agree with others, known and unknown to the Grand Jury, to commit offenses against the United States in violation of Title 21, United States Code, Section 841(a)(1) & 841(b)(1)(A), as follows: to distribute 500 grams or more of a mixture or substance containing a detectable amount of Methamphetamine, a Schedule II Controlled Substance, in violation of Title 21, United States Code, Sections 846, punishable by not less than 10 years and not more than life imprisonment, a fine up to $10,000,000.00, or both.
The Indictment further alleges that from in or about April, 2017, the exact date being unknown to the Grand Jury, and continuing until on or about June 26, 2019, within the Eastern District of Oklahoma and elsewhere, the defendant, CHARLES P. HENDRICKS, a/k/a TUFFY, did knowingly combine, conspire, confederate, and agree with others known and unknown to the Grand Jury, to commit offenses against the United States in violation of Title 18, United States Code, Section 1956, as follows: to knowingly conduct and attempt to conduct financial transactions affecting interstate and foreign commerce, that is, deposited large sums of United States Currency into the Oklahoma Department of Corrections Offender Account of CHARLES P. HENDRICKS, a/k/a TUFFY, which transactions involved the proceeds of a specified unlawful activity, to wit: the felonious receiving, concealment, buying, selling, or otherwise dealing in methamphetamine, knowing that the transactions were designed in whole or in part to conceal and disguise the nature, location, source, ownership, and control of the proceeds of specified unlawful activity, and that while conducting and attempting to conduct such financial transactions, knew that the property involved in the financial transactions represented the proceeds of some form of unlawful activity, in violation of Title 18, United States Code, Section 1956(a)(1)(B)(i), all in violation of Title 18, United States Code, Section 1956(h), punishable by not more than 20 years imprisonment, a fine up to $500,000.00, or both.
The charges arose from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant United States Attorney Shannon Henson.
ZACHARY GAGE PEBLEY, age 22, of Ardmore, OklahomaBank Robbery
Use, Carry, And Brandish A Firearm During And In Relation To A Crime Of ViolenceThe Indictment alleges that on or about October 15, 2019, in the Eastern District of Oklahoma, the defendant, ZACHARY GAGE PEBLEY, by force, violence and intimidation did take from the person and presence of another, money belonging to and in the care, custody, control, management and possession of the Bank of the West of Ardmore, Oklahoma, the deposits of which were then insured by the Federal Deposit Insurance Corporation, and in committing such offense, the defendant, ZACHARY GAGE PEBLEY, a/k/a ZACKARY GAGE PEBLEY, did assault and put in jeopardy the life of another person by the use of a dangerous weapon, that is a firearm, in violation of Title 18, United States Code, Sections 2113(a) and 2113(d), punishable by not more than 25 years imprisonment, a fine up to $250,000.00, or both.
The Indictment further alleges that on or about October 15, 2019, in the Eastern District of Oklahoma, the defendant, ZACHARY GAGE PEBLEY, did knowingly use, carry, and brandish a firearm, to wit, one (1) .380 CALIBER Jimenez Arms JA 380 semi-automatic pistol, serial number 065803, during and in relation to a crime of violence for which he may be prosecuted in a court of the United States, that is, Bank Robbery, as alleged in Count One in the Indictment, in violation of Title 18 United States Code, Section 924(c)(1)(A)(ii), punishable by not less than 7 years consecutive to any other sentence imposed, a fine up to $250,000.00, or both.
The charges arose from an investigation by the Ardmore Police Department and the Federal Bureau of Investigation.
Assistant United States Attorney Jarrod Leaman.
BRIAN ALLEN HOUSTON, age 61, of Muskogee, OklahomaFelon In Possession Of Firearm And Ammunition
The Indictment alleges that on or about June 25, 2019, within the Eastern District of Oklahoma, the defendant, BRIAN ALLEN HOUSTON, having previously been convicted of a crime punishable by imprisonment for a term exceeding one year, and knowing of such conviction, did knowingly possess in and affecting commerce, a firearm and ammunition which had been shipped and transported in interstate commerce, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The charges arose from an investigation by the Muskogee Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant United States Attorney Ben Gifford.
Fort Campbell Soldier Convicted of Attempted Online Enticement of a MinorRead the Press Release
FRANKFORT, Ky. - A Fort Campbell soldier was convicted Thursday, by a federal jury in Frankfort, for using the internet to attempt to persuade, induce, or entice a minor to engage in sexual activity.
After deliberating for two hours, following a three-day trial, the jury convicted 27-year old Daniel J. Zulawski of attempted online enticement of a minor.
According to testimony at trial, Zulawski traveled from Lexington to Frankfort after communicating with an undercover officer on the Kik application, during which they discussed his engaging in sexual relations with the undercover mother and her fictitious 11 and 13 year-old children. Evidence revealed that Zulawski initially responded to a Craigslist ad posted by the undercover officer, which indicated she was a mother interested in incest.
Zulawski was indicted in May 2018. The criminal conduct occurred between January 16, 2018 and January 17, 2018. He traveled from Lexington, where he was staying for a week of training for the U.S. Army, to Frankfort on January 17, 2018, when he was arrested.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Richard F. Ferretti, Special Agent in Charge, Louisville Field Office of the United States Secret Service; and Andy Beshear, Kentucky Attorney General, jointly announced the guilty verdict.
The investigation was conducted by the U.S. Secret Service, U.S. Army Criminal Investigation Command at Ft. Campbell, and the Kentucky Office of Attorney General’s Cyber Crimes Branch. The U.S. Attorney’s Office was represented in the case by Assistant U.S. Attorneys David Marye and Will Moynahan.
Zulawski will appear for sentencing on March 18, 2020. He faces a mandatory minimum of 10 years in prison and a maximum of life, as well as a maximum $250,000 fine. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing a sentence.
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Former Washington resident sentenced to 15 years in prison for fraudulent IPO stock schemeRead the Press Release
A former Seattle area resident who defrauded dozens of investors of at least $6.1 million was sentenced today in U.S. District Court in Seattle to 180 months (15 years) in prison for wire fraud and money laundering, announced U.S. Attorney Brian T. Moran. KEENAN A. GRACEY, 28, formerly of Newcastle, Washington, defrauded Seattle-area investors and others out of millions of dollars by pretending to sell them stock that GRACEY did not own and had no right to sell. At the sentencing hearing Chief U.S. District Judge Ricardo S. Martinez told GRACEY: “You stole much more than money. You stole their trust. You stole their futures. You changed forever their children’s futures. All for what? To feed an outsized ego.”
“This defendant is a financial predator who singlehandedly destroyed the lives of honest, hardworking people who did nothing wrong.” said U.S. Attorney Brian T. Moran. “Gracey callously looted their retirement funds, forced some into bankruptcy, and destroyed the dreams of people who had saved to buy a house or fund their children’s educations. This sentence will protect the public from his penchant for fraud.”
According to records in the case, between 2016 and 2018, GRACEY posed as a British billionaire with degrees from the London School of Economics and Oxford University. He rented expensive cars such as Bentleys and Ferraris and rented expensive homes in Clyde Hill, Mercer Island, and Newcastle, Washington, as well as in Beverly Hills and San Diego, California. GRACEY told prospective investors that he owned all of these cars and houses. GRACEY also used falsified bank statements to make it appear he had hundreds of millions of dollars of cash on hand. The investigation revealed that GRACEY is Canadian, not British, and rented expensive homes and cars to make it appear he was wealthy.
GRACEY told potential investors he had special access to millions of shares of “pre IPO” stock that would produce returns of as much as 60 times the initial investment. Some investors gave GRACEY as much as $745,000, believing that they were purchasing stock. In fact, GRACEY did not own any of the stock he was pretending to sell and simply stole the victims’ money. In all, GRACEY collected $5,894,676 from dozens of investors.
The Securities and Exchange Commission filed a civil suit against GRACEY in May 2018 and obtained a temporary restraining order barring him from selling securities. In September 2018, the order was made permanent, and GRACEY was ordered to disgorge $4.4 million in cash and wire transfers that he had fraudulently obtained from investors. However, even after the SEC order, GRACEY continued to try to defraud investors by claiming he owned shares in a gene editing company. Between June 2018 and December 2018, GRACEY collected $2.2 million for shares of stock he did not own.
GRACEY’s fraud ended when he was arrested by the FBI on December 20, 2018. A federal grand jury charged him with wire fraud on January 3, 2019. On July 25, 2019, the grand jury returned a superseding indictment asserting additional charges, including money laundering charges. GRACEY pleaded guilty on August 15, 2019.
On March 29, 2019, the United States seized $603,840 of fraud proceeds that GRACEY had paid to rent a luxury mansion in Beverly Hills, California. According to court pleadings, the government intends to forfeit this money and request it be used to compensate GRACEY’s victims.
The case was investigated by the FBI and prosecuted by Assistant United States Attorneys Seth Wilkinson, Lyndsie Schmalz, and Michelle Jensen.
Former President of Private Tennis Academy Pleads Guilty in College Admissions CaseRead the Press Release
BOSTON – Martin Fox, the former president of a private tennis academy in Texas, pleaded guilty today in connection with his involvement in a scheme to use bribery to facilitate the admission of applicants to selective colleges and universities.
Fox, 62, of Houston, Texas, pleaded guilty to one count of conspiracy to commit racketeering. U.S. District Court Judge Indira Talwani scheduled sentencing for Feb. 14, 2020. According to the terms of the plea agreement, the government will recommend a sentence at the low end of the sentencing guidelines, one year of supervised release, a fine and restitution.
In 2015, Fox introduced co-conspirator William “Rick” Singer to Michael Center, a tennis coach at the University of Texas (U-Texas). Center facilitated the admission of a son of one of Singer’s clients to U-Texas as a purported tennis recruit in exchange for a bribe. In return for assisting with the bribe transaction, Singer paid Fox $100,000.
Between 2015 and 2018, Fox also agreed with Singer and others to facilitate cheating on the ACT and SAT college entrance exams. Fox funneled bribe payments from Singer to Niki Williams, a test administrator for the ACT and SAT, for four of Singer’s clients. In exchange, Williams allowed someone else to purportedly proctor the exams, despite knowing that this person was not proctoring the exam consistent with ACT and SAT requirements. Singer typically paid Fox $25,000 per exam, a portion of which Fox funneled to Williams.
Williams has pleaded not guilty. The charges against her are allegations, and she is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
The charge of racketeering conspiracy provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright and Kristen A. Kearney, of Lelling’s Securities and Financial Fraud Unit, and Carol Head, of Lelling Asset Recovery Unit, are prosecuting the case.