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30 December 2019
Nineteen-Year-Old Man Sentenced to over Three Years in Federal Prison for Trafficking HeroinRead the Press Release
A nineteen-year-old man was sentenced today to over three years in federal prison for his role in trafficking more than 100 grams of heroin in the Cedar Rapids, Iowa, area.
Walter Murray, Jr., age 19, from Junpion City, Arizona, and previously residing in Cedar Rapids, received the prison sentence after his June 25, 2018 guilty plea to conspiracy to distribute heroin. According to sentencing documents and information disclosed during the sentencing hearing, Murray were involved with a group of heroin dealers in Cedar Rapids from at least January 2019 to April 2019. During that time, the group sold more than 100 grams of heroin. Murray was responsible for selling heroin to multiple individuals during that time.
On February 13, 2019, Murray was driving a car in Cedar Rapids. Police officers attempted to stop the car. Murray did not stop, instead fleeing from the officers. During the chase, Murray reached 60 miles per hour in a 30 miles per hour speed zone. Murray hit another occupied car, drove down a bike trail, and onto the frozen Cedar River before leaving the car in someone’s backyard and running. While running, Murray threw away approximately 30 grams of heroin, which law enforcement found shortly after locating and arresting Murray.
Murray was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Murray was sentenced to 37 months’ imprisonment followed by a three-year term of supervised release. There is no parole in the federal system. Murray is being held in the United States Marshal’s custody until they can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Ashley Corkery and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; and the Iowa Division of Narcotics Enforcement and the United States Marshal’s Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-45.
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Largest Independent Provider of Intraoperative Neuromonitoring Services to Hospitals Agrees to Pay $1.9 Million to Settle Fraud AllegationsRead the Press Release
NASHVILLE, Tenn. – December 30, 2019 – Medsurant Holdings, LLC, of West Conshohocken, Pennsylvania, has agreed to pay $1.9 million to settle the United States’ allegations that it had violated the False Claims Act, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Mesurant Holdings, which operates under the trade name Medsurant Health, is the largest independent provider of Interoperative Neuromonitoring (IONM) services to hospitals and surgeons in the United States. IONM includes various procedures that are used during surgery to monitor a patient’s nervous system in real-time during high-risk surgeries involving the peripheral nervous system, brain and spinal cord.
The settlement resolves the United States’ claims that, from January 1, 2013, through May 31, 2016, Medsurant billed Medicare for units of IONM services without regard to concurrent IONM services that it was providing to patients insured by payors other than Medicare, and that Medsurant billed Medicare for IONM services that were not provided “exclusively to one patient,” as required by Medicare regulations.
This case was handled by the United States Attorney’s Office for the Middle District of Tennessee and investigated by the Department of Health and Human Services, Office of Inspector General. Assistant U.S. Attorney Mark H. Wildasin represented the United States.
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Houston-area couple arrested in failed attempt to smuggle woman and childRead the Press Release
LAREDO, Texas – A legal permanent resident and her U.S. citizen husband are set to make their initial appearances in Laredo federal court on charges of alien smuggling, announced U.S. Attorney Ryan K. Patrick.
The criminal complaint, filed over the weekend, charges Conroe residents Maria Guadalupe Cofraida-Pantoja and Amador Garcia-Canada, both 33, with alien smuggling. They are expected to make their initial appearances before U.S. Magistrate Judge Sam Sheldon in Laredo at 11:00 a.m. today.
The charges allege the couple attempted to bring a Mexican woman and her minor child into the United States illegally.
On Dec. 28, 2019, Cofraida-Pantoja allegedly arrived at the Juarez-Lincoln bridge driving a 2004 white Cadillac Escalade with her husband as a passenger along with a 22-year-old woman and her minor son.
The woman presented an authentic U.S. passport with the name of Garcia-Canada’s relative as her own, according to the allegations. At secondary inspection, she also allegedly presented an Illinois birth certificate for her five-year old son, falsely claiming she and her son were U.S. citizens.
Upon investigation, authorities discovered a Mexican voter registration card identifying her actual identity, according to the complaint.
The charges allege the woman had made arrangements to pay $6,000 Garcia-Canada to bring them into the country and to be transported to Houston. Garcia-Canada allegedly provided her with the documents she had presented to authorities.
Cofraida-Pantoja and Garcia-Canada were aware both individuals were Mexican citizens not authorized entry into the United States, according the allegations.
If convicted, each faces up to 10 years in federal prison along with a possible $250,000 fine.
Customs and Border Protection is conducting the investigation. Assistant U.S. Attorney Homero Ramirez is prosecuting the case.
A complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless and until convicted through due process of law.Former Office Manager Sentenced to Federal Prison for Embezzling over One Million Dollars from a Local BusinessRead the Press Release
United States Attorney Brandon J. Fremin announced that U.S. District Judge Brian A. Jackson sentenced Katherine S. Dyson, age 65, of Denham Springs, Louisiana, to 42 months in federal prison following her wire fraud conviction. The Court further sentenced Dyson to 2 years of supervised release following her term of imprisonment and ordered her to pay a total of $1,232,075 in restitution to the victims. In imposing sentence, the Court recognized the negative impact of the defendant’s conduct on the victims and remarked that she had embezzled a staggering amount of money.
According to admissions made as part of her guilty plea, Dyson was employed by Mattress Direct as the Office Manager of corporate headquarters in Baton Rouge, Louisiana. As Office Manager, she had administrative access to the company’s financial software. Between June of 2012 and December of 2018, she fraudulently diverted over $1.2 million for her own personal use and benefit through approximately 364 checking transactions. As part of her wire fraud scheme, Dyson prepared and printed company checks in QuickBooks made payable to herself and another individual, in amounts ranging between $1,500 and $4,000. She would then forge the company Treasurer’s signature and deposit the checks into a bank account that she controlled with another individual. After depositing the checks, Dyson would gain control over the funds and spend them on various personal expenses, items and recreational activities.
U.S. Attorney Fremin stated, “This type of crime has detrimental effects on unsuspecting businesses, business owners, and their honest, hard-working employees. Those who steal from their employers and violate their trust will be pursued aggressively. This result sends the signal that our office will use every resource available to investigate and prosecute those who commit these types of crime. I want to commend our prosecutor and the FBI for their diligent work in obtaining this conviction and sentence.”
“Katherine S. Dyson’s greed depleted her employer, Mattress Direct, of approximately $1.2 million for personal gain. The FBI takes a proactive approach to identify perpetrators involved in these crimes and will continue to investigate them to the fullest extent of the law,” stated Bryan Vorndran, FBI New Orleans Special Agent in Charge. “I commend the hard work and dedication put forth by the investigative team and prosecutor to bring this case to justice.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Chris Dippel, who also serves as Deputy Criminal Chief.
Former Minnesota Hunting Guide Guilty of Lacey Act ViolationRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Jeff Althoff, 32, Greensboro, North Carolina, pleaded guilty today in U.S. District Court in Madison to violating the Lacey Act by falsely labeling wildlife and transporting it across state lines. This charge carries maximum penalties of one year in prison and a $100,000 fine.
During the plea hearing, Althoff admitted that on September 18, 2018, he falsely registered with the Wisconsin Department of Natural Resources (WDNR) that he had killed an adult antlered buck deer on September 17, 2018 in Buffalo County by archery on public land. In fact, Althoff actually killed the adult antlered buck deer on private land at a game farm in Taylor County using a paid guide. As a result of the false registration with the WDNR, the buck was deemed falsely labeled.
Althoff then transported the animal to Pierce County and staged pictures with the animal to make it appear as if he had killed the animal on public land in Buffalo County. Althoff posted pictures of the 172 inch antlered buck on his Facebook page falsely alleging that he stalked the animal for hours, shot it at 32 yards, and that it took him 4 hours of solo dragging to get it back to his truck. As part of the offense, Althoff also transported the falsely labeled buck from Wisconsin to Minnesota.
As part of the plea agreement, Althoff has agreed to: (1) pay a fine of $23,000 to the Lacey Act Reward Fund; (2) obey a 2-year ban on all hunting activities; and (3) forfeit the items he used in the hunt, including all of the archery equipment and arrows, the range finder, and the cape and antlers.
U.S. Magistrate Judge Stephen L Crocker scheduled Althoff’s sentencing for March 20, 2020, at 1:30 p.m.
The charges against Althoff are the result of an investigation conducted by law enforcement agents with the U.S. Fish & Wildlife Service, Wisconsin Department of Natural Resources Bureau of Law enforcement, and the Minnesota Department of Natural Resources. The prosecution of this case has been handled by Assistant U.S. Attorney Daniel J. Graber.
Detroit Man Sentenced to Prison for Drug DistributionRead the Press Release
CHARLESTON, W.Va. – A Detroit, Michigan man was sentenced to federal prison for distribution of oxycodone and oxymorphone, announced United States Attorney Mike Stuart. Ricky Walker was sentenced to 30 months in prison followed by a three year term of supervised release for distributing both drugs to an undercover Drug Enforcement Administration Task Force Officer on November 2, 2012 on the parking lot of the Comfort Inn in Cross Lanes.
“Another Detroit drug dealer is on his way to federal prison for peddling opiates in West Virginia,” said United States Attorney Mike Stuart. “We continue to work with a sense of urgency to hold poison peddlers like Walker accountable.”
Walker previously pled guilty in October 2019, admitting that he knowingly distributed the drugs, which he had transported from Detroit to the Comfort Inn parking lot in Cross Lanes, to someone who he later learned was an undercover law enforcement officer.
Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. The Drug Enforcement Administration conducted the investigation. Assistant United States Attorney John J. Frail handled the prosecution.
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Denver Drug Dealer Sentenced to Nearly 11 Years in Federal PrisonRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced today that Saskia Iona Mesmer, age 25, of Denver, Colorado was sentenced to serve 130 months (nearly 11 years) in federal prison for possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. The sentence was pronounced by Chief U.S. District Court Judge Philip A. Brimmer. Mesmer appeared at the sentencing hearing in custody, and was remanded at its conclusion. The DEA joined in today’s announcement.
According to the stipulated facts contained in the defendant’s plea agreement, on February 6, 2018, the Denver Police Department executed a state search warrant at Mesmer’s residence based on information that she previously sold methamphetamine to a confidential informant. While executing the warrant, officers determined that she had a stolen loaded handgun, 55.87 grams of methamphetamine, 39.95 grams of heroin, $2,850 in cash, 43 Alprazolam pills and a digital scale.
“The defendant was a drug dealer, selling dangerous narcotics while carrying a loaded firearm,” said U.S. Attorney Jason Dunn. “Thanks to the Denver Police Department, the DEA and prosecutors from this office, Ms. Mesmer will no longer pose a danger to the community.”
“This case shows the great partnership between local and federal law-enforcement,” said DEA Denver Division Special Agent in Charge Deanne L. Reuter. “Ms. Mesmer prayed on the community we live in and will now face the consequences of her actions.”
Mesmer was indicted by a federal grand jury in Denver on June 6, 2018. She pleaded guilty before Chief Judge Brimmer on August 28, 2019. She was sentenced on December 30, 2019.
This case was investigated by the Denver Police Department and the DEA Denver Division. The defendant was prosecuted by Assistant U.S. Attorney Emily Treaster.
Defense Contractor Pays $3 Million to Settle Allegations of Submitting False Claims to the ArmyRead the Press Release
OKLAHOMA CITY – LaForge & Budd Construction Company, Inc. ("LaForge"), has agreed to pay $3 million to settle civil claims stemming from allegations that it submitted false claims to the United States Army, announced United States Attorney Timothy J. Downing.
In 2010, LaForge, a Kansas company, entered into a contract to perform work on a dam on Lake George, at the Fort Sill Army Post in Lawton, Oklahoma. The work included raising the elevation of the dam and required LaForge to perform the work in accordance with the plans and specifications provided in the contract. The United States alleges LaForge submitted false claims for progress payments for work done on the dam’s embankment. More specifically, LaForge represented that the fill it placed in the embankment of the Dam complied with the specifications, terms, and conditions of the contract when, according to the government’s allegations, unsatisfactory materials such as pieces of concrete, concrete rubble, and metal rebar were placed in the embankment. On April 12, 2019, the United States filed an action against LaForge in the United States District Court for the Western District of Oklahoma, No. CIV-19-336-G.
To resolve these allegations, LaForge agreed to pay $3,000,000 to the United States.
In reaching this settlement, LaForge did not admit liability, and the government did not make any concessions about the legitimacy of the claims. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case.
This case was investigated by the Defense Criminal Investigative Service. Assistant U.S. Attorneys Ronald R. Gallegos and Don Evans prosecuted the case. To download a photo of U.S. Attorney Downing, click here.
Child Pornographer Sentenced to 60 Months in Federal PrisonRead the Press Release
United States Attorney Brandon J. Fremin announced that U.S. District Court Judge Brian A. Jackson sentenced Henry Babin, age 30, of Gonzales, Louisiana, to serve 60 months in federal prison following his conviction for possessing child pornography. Babin will also be required to serve five years of supervised release, register as a convicted sex offender upon his release from prison, and pay a total of $18,000 in restitution to the victims who were identified as children photographed in the images.
According to admissions made during his plea, on January 26, 2018, Internet Crimes Against Children Task Force agents executed a search warrant for Babin’s property. During the execution of the warrant, Babin emerged from a detached shed that had been converted into a private residence, in which he solely resided.
Electronic devices were discovered and a preview of these devices on scene revealed numerous images and videos of child pornography. A subsequent forensic examination of Babin’s computer and cell phone revealed at least 600 images of child pornography, including images and videos of prepubescent minors, including infants, engaged in various sex acts.
U.S. Attorney Fremin stated, “The possession of child pornography perpetuates the market for such despicable material and exploits our most vulnerable citizens, our children. This conviction and sentence contributes to the safety and security of children not only in our community, but around the world. Our office will continue to work with our law enforcement partners to aggressively pursue individuals whose actions harm, demean, or exploit our precious youth. I commend the work of the prosecutor and agents involved in this important matter, including the Federal Bureau of Investigation and the Louisiana Attorney General’s Cyber Crime Unit.”
"The protection of our children is one of the most sacred responsibilities entrusted to the FBI. The FBI takes a proactive approach to identify unknown individuals involved in the sexual exploitation of children and the production of child pornography. We remain vigilant and continue our active role to ensure children are protected. We reaffirm our commitment to removing sexual predators from children’s lives through the justice system,” stated Special Agent in Charge Bryan Vorndran.
“I am proud of my team for their work to investigate and arrest child predators producing, distributing, and viewing sexual abuse images and videos of children,” said Louisiana Attorney General Jeff Landry. “And I am thankful our federal partners work closely with us to hold accountable those despicable people who violate the innocence of children.”
This case is part of Project Safe Childhood, a nationwide initiative by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This matter was investigated by the Federal Bureau of Investigation with critical assistance from the Louisiana Attorney General’s Office-Cyber Crime Unit and was prosecuted by Assistant United States Attorney Demetrius Sumner.
Chelsea Man Charged as Felon in Possession of FirearmRead the Press Release
BOSTON – A Chelsea man was arrested on Dec. 27, 2019, and charged with being a felon in possession of a firearm.
Semaj Leary was charged in an indictment with one count of being a felon in possession of a firearm. Following an initial appearance and arraignment in federal court in Boston today, Leary was detained pending a detention hearing set for Jan. 2, 2020.
According the indictment, on Aug. 15, 2019, Leary was found in possession of a 9mm Glock semi-automatic pistol, seven rounds of R-P 9mm caliber ammunition, four round of WIN 9mm caliber ammunition, two rounds of VPT 9mm caliber ammunition, one round of WCC 9mm caliber ammunition, and one round of Tulammo 9mm caliber ammunition. Leary had previously been convicted of being a felon in possession of a firearm and other crimes punishable by more than a year in jail, and therefore was prohibited from possessing firearms.
The charging statute provides for a sentence of no greater than 10 years in prison, up to three years of supervised release, and a fine of $250,000 or twice the gross gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Suffolk County District Attorney Rachel Rollins; and Boston Police Commissioner William Gross made the announcement today.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
27 December 2019
U.S. Attorney’s Office Collects nearly $43 million in Criminal and Civil Actions in Fiscal Year 2019Read the Press Release
SHERMAN, Texas - U.S. Attorney Joseph Brown announced today that the Eastern District of Texas collected $42,720,785.69 in criminal and civil actions in Fiscal Year 2019. Of this amount, $41,528,315.03 was collected in criminal actions and $1,192,470.66 was collected in civil actions.
Additionally, the Eastern District of Texas worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $3,829,172.54 in cases pursued jointly by these offices. Of this amount, $19,813.58 was collected in criminal actions and $3,809,358.96 was collected in civil actions.
“One of the most important missions of the U.S. Attorney’s Offices is enforcing and collecting monetary judgments for violations of federal law,” said U.S. Attorney Joe Brown. “Aggressive enforcement of these judgments achieves the multiple purposes of compensating crime victims, punishing those who break the law, and deterring future violations. The Eastern District prides itself in incorporating asset recovery into the earliest stages of all cases, which ultimately helps maximize the money we collect.”
In August 2019, the Eastern District of Texas recovered nearly $3,200,000 to fully satisfy a restitution judgment entered in United States v. Manpreet Singh in August 2018. Singh was prosecuted for defrauding several banks in the Eastern District of Texas. The Eastern District’s asset recovery team was involved in the prosecution and ensured that Singh made a significant down payment to the restitution prior to sentencing. Next, the asset recovery team sought specific payment terms that would require Singh to sell a hotel and other real property as part of his sentence. The Court adopted the entirety of the government’s requested payment terms and incorporated them into the judgment. Prosecutors successfully forced Singh to promptly effect the hotel sale, which led to the judgment being paid in full in less than a year.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Additionally, the U.S. Attorney’s office in the Eastern District of Texas, working with partner agencies and divisions, collected $15,049,725 in asset forfeiture actions in FY 2019. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
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Two Ohio Men Admit Robbing Western PA PharmaciesRead the Press Release
PITTSBURGH – Two Ohio men pleaded guilty on Monday in federal court to charges of conspiracy to commit armed pharmacy robbery, conspiracy to possess with intent to distribute controlled substances and armed pharmacy robbery, United States Attorney Scott W. Brady announced today.
Mohammed Jibril, age 19, of Reynoldsburg, Ohio, and Arthur Lee Worthy, II, age 21, of Columbus, Ohio, each pleaded guilty to three counts before Senior United States District Court Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that Abdulrahman Abdelaziz Jamea is the leader of numerous well-orchestrated pharmacy robberies in the Western District of Pennsylvania and elsewhere. He recruited other individuals, including Mohammed Jibril and Arthur Lee Worthy, II, to rob pharmacies. Jamea researched which pharmacies to rob and then would drive to the location of the pharmacy to be robbed, stake it out, then he and/or his crew would complete the robbery.
On November 17, 2018, two individuals robbed the Rite Aid pharmacy located on Third Street in Beaver, PA. One of the males pulled out a black colored automatic pistol and pointed it in the pharmacist’s direction. Worthy jumped over the counter and inquired about the safe and asked for codeine syrup. He pulled out a garbage bag then placed prescription pills into the bag. Based on historical cell site records, it appears that Jamea was on scene at the Rite Aid at the time of the robbery.
On November 22, 2018, at 2:22 am, two black males robbed the CVS pharmacy on Centre Avenue in Pittsburgh. One of the males pointed a gun at the pharmacist and told her to open the safe. Worthy jumped the counter and as the pharmacist opened the two safes, Worthy placed prescription narcotics into a black trash bag. Jamea was identified on the surveillance video entering the store shortly before the robbery occurred. As the males fled the store, the getaway vehicle, a red Hyundai Sonata with Ohio registration, owned by Jamea, pulled up and they fled.
On December 2, 2018, Worthy robbed the Rite Aid in Marietta, Ohio. He brandished a gun then jumped over the pharmacy counter and pistol-whipped the pharmacist. He pointed the gun at the cashier and demanded that he open the register. Worthy was only able to get $447.05 before fleeing in a dark red/maroon four door vehicle with Ohio tags. The weapon, a .177 pellet/BB pistol was found in the parking lot. There were also text messages between Jamea and Jibril leading up to the robbery.
On December 7, 2018, at 6:14 am, Worthy robbed the CVS Pharmacy in Erie, Pennsylvania. He approached the pharmacy counter and demanded drugs and money and threatened to kill the pharmacist. Worthy jumped over the counter and asked for oxycodone and money, then placed prescription narcotics in a Foot Locker bag. He also took $410 in U.S. Currency before fleeing the store. Worthy’s fingerprints were lifted from the pharmacy. At 9:09 am, Ohio state patrol initiated a stop on Jibril and Worthy’s rental vehicle. From the vehicle, officers recovered the Foot Locker bag filled with prescription drugs and $300 from Jibril. Text messages indicate that Jamea provided Jibril with the address of the pharmacy and told him where to park the vehicle prior to the robbery. The messages also indicate that Jamea arranged for the rental of the vehicle. During the time of the traffic stop, Jamea was texting Jibril.
Judge Schwab scheduled sentencing for Jibril for April 20, 2020, and for Worthy for April 22, 2020. The law provides for a maximum total sentence of up to 25 years in prison, a fine of $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants. Pending sentencing, the court ordered both defendants to remain detained.
Abdulrahman Abdelaziz Jamea is pending trial.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, Pennsylvania State Police, Pittsburgh Bureau of Police, Bridgeville Police Department and the Ohio Highway Patrol, conducted the investigation leading to the Indictment in this case.
Suburban Drug Dealer Sentenced to 12 Years in Prison for Illegally Possessing Narcotics and a Loaded Semiautomatic HandgunRead the Press Release
CHICAGO — A suburban drug dealer has been sentenced to 12 years in federal prison for illegally possessing narcotics and a loaded semiautomatic handgun.
EFREN GUTIERREZ, 44, illegally possessed the firearm and narcotics on Dec. 6, 2017. Law enforcement executed a court-authorized search of Gutierrez’s home in Burbank and discovered the gun hidden in a diaper bag in his bedroom. The gun was loaded and had a .45-caliber magazine attached to it. Gutierrez had previously been convicted of multiple felonies in state court, including drug and gun offenses, and was not legally allowed to possess a firearm. He admitted in a plea agreement that he kept the gun and ammunition to protect his drug distribution business. During the search of Gutierrez’s home, law enforcement discovered distribution quantities of cocaine, marijuana, and 98% pure methamphetamine.
Gutierrez pleaded guilty earlier this year to federal drug and firearm charges. U.S. District Judge Virginia M. Kendall imposed the 12-year sentence Monday in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI; and Charlie Beck, interim Superintendent of the Chicago Police Department.
“Over the past few years, the Chicagoland area has been subjected to devastating firearm violence,” Assistant U.S. Attorney Cornelius A. Vandenberg argued in the government’s sentencing memorandum. “The sale of narcotics and the possession of firearms by felons is behavior that will not be tolerated by the federal government.”
Holding convicted felons accountable through federal prosecution is a centerpiece of Project Guardian and Project Safe Neighborhoods (PSN) – the Department of Justice’s violent crime reduction strategies. Project Guardian focuses specifically on investigating, prosecuting, and preventing gun crimes, and it emphasizes the importance of using modern technologies to promote gun crime intelligence. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the Guardian and PSN programs to attack a broad range of violent crime issues facing the district, including by prosecuting individuals who illegally possess firearms.
Rapid City Man Charged with Unlawful Possession of a FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man was charged in federal district court with Possession of a Firearm by a Prohibited Person.
Harold Dooley, age 29, was charged on December 17, 2019. Dooley appeared before U.S. Magistrate Judge Daneta Wollmann on December 23, 2019, and pleaded not guilty to the charge.
The maximum penalty upon conviction is 10 years in federal prison and/or a $250,000 fine, 3 years supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Dooley, a previously convicted felon who is prohibited from possessing firearms, unlawfully possessing a semi-automatic pistol in November 2019 at Rapid City. The charge is merely an accusation and Dooley is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson is prosecuting the case.
Dooley was detained pending trial. A trial date has not been set.
Pine Ridge Man Charged in MurderRead the Press Release
United States Attorney Ron Parsons announced that a Pine Ridge, South Dakota, man was charged in federal district court with Second Degree Murder.
Colton Bagola, age 26, was charged on December 20, 2019. Bagola appeared before U.S. Magistrate Judge Daneta Wollmann on December 23, 2019, and pleaded not guilty to the charge.
The maximum penalty upon conviction is life in federal prison and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Bagola killing a man by shooting him in the head in December 2019 at Pine Ridge. The charge is merely an accusation and Bagola is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorneys Megan J. Poppen and Gina S. Nelson are prosecuting the case.
Bagola was detained pending trial. A trial date has not been set.
Missoula methamphetamine distributor sentenced to prisonRead the Press Release
MISSOULA—A Missoula man who admitted being a methamphetamine dealer was sentenced today to three years in prison and five years of supervised release, U.S. Attorney Kurt Alme said.
Robert Matthew Wilson, 35, of Missoula, pleaded guilty in September to conspiracy to distribute meth.
U.S. District Judge Donald M. Molloy presided.
In court documents filed by the prosecution, five confidential informants told law enforcement officers about Wilson’s meth dealing activities, including his distributing the drug to others and his trading meth for various items. Wilson admitted to law enforcement that he was a dealer and that his residence was a meth distribution center.
Assistant U.S. Attorney Tara Elliott prosecuted the case, which was investigated by the FBI and the Montana Regional Violent Crime Task Force.
The case is part of Project Safe Neighborhoods (PSN), which 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.
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La Crosse Man Sentenced to 10 Years on Methamphetamine ChargeRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Andrew Henke, 36, La Crosse, Wisconsin, was sentenced on December 17, 2019, by U.S. District Judge James Peterson to 10 years in prison for possessing methamphetamine with the intent to distribute. Henke pleaded guilty this charge on October 1, 2019.
On March 26, 2019, La Crosse police executed a search warrant on Henke’s residence and arrested him on drug charges. In Henke’s bedroom investigators found 915 grams of methamphetamine and $14,644 of cash.
Judge Peterson said that Henke was taking a calculated risk because he was aware of the federal penalties for possessing this much methamphetamine. Judge Peterson also ordered the $14,644 to be forfeited.
The charge against Henke was the result of an investigation conducted by the La Crosse Police Department and Drug Enforcement Administration. The prosecution of the case has been handled by Assistant U.S. Attorney Corey Stephan.
Interior Woman Sentenced to 14 Years in Federal Prison for Second Degree MurderRead the Press Release
United States Attorney Ron Parsons announced that an Interior, South Dakota, woman convicted of Second Degree Murder was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Krystin Spotted Calf, age 36, was sentenced on December 18, 2019, to 14 years in federal prison, followed by 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Spotted Calf was indicted by a federal grand jury in August 2018. During the early morning hours of August 11, 2018, Spotted Calf struck the victim, her step-father, Jeffrey Lynn Janis, Sr., multiple times with a tire iron after a dispute. Janis was pronounced dead at the Bennett County Hospital Emergency Room from blunt force trauma to the head.
This case was investigated by the Bureau of Indian Affairs - Office of Justice Services, the Oglala Sioux Tribe Department of Public Safety, and the Federal Bureau of Investigation. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Spotted Calf was immediately turned over to the custody of the U.S. Marshals Service.
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 Judge Timothy J. Cavan and pleading not guilty on Dec. 23 was:
Shean Moore, 38, of Billings, on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute meth and distribution of meth. If convicted of the most serious crime, Moore faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. Moore was detained pending further proceedings. The case was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force. Pacer case reference. 19-158.
Charles Anthony Sloan, 31, of Hardin, on charges of conspiracy to possess with intent to distribute meth, possession with intent to distribute meth and distribution of meth. If convicted of the most serious crime, Sloan faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least three years of supervised release. Sloan was detained pending further proceedings. The case was investigated by the Drug Enforcement Administration. Pacer case reference. 19-157.
Abran Rodriguez Rascon, 33, of Billings, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Rascon faces a maximum 10 years in prison a $250,000 fine and three years of supervised release. Rascon was detained pending further proceedings. Pacer case reference. 19-149.
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on Dec. 23 was:
Nicole Lee Chappel, 29, of Kalispell, on charges of conspiracy to possess with intent to distribute meth, possession with intent to distribute meth and distribution of meth. If convicted of the most serious crime, Chappel faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. Chappel was detained pending further proceedings. The case was investigated by the Drug Enforcement Administration and the Kalispell Police Department. Pacer case reference. 19-57.
Kevin Kenneth Gaethle, 38, of Lakeside, on charges of conspiracy to possess with intent to distribute meth, possession with intent to distribute meth and distribution of meth. If convicted of the most serious crime, Gaethle faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. Gaethle was detained pending further proceedings. The case was investigated by the Drug Enforcement Administration and the Kalispell Police Department. Pacer case reference. 19-58.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Dec. 23 was:
John Thomas Azure, 49, of Browning, on charges of aggravated sexual abuse and sexual abuse. If convicted of the most serious crime, Azure faces a maximum of life in prison, a $250,000 fine and five years of supervised release. Azure was detained pending further proceedings. The case was investigated by the FBI and the Blackfeet Law Enforcement Services. Pacer case reference. 19-87.
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.
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Former Dojo Pizza Owner Sentenced to 65 Years for Federal Child Sex ActsRead the Press Release
St. Louis, MO – Loren “Sensei” Copp, 50, former owner of Dojo Pizza located at 4601 Morganford Road, St. Louis, MO, was sentenced to 65 years in prison for production and attempted production of child pornography; possession of child pornography; and the use of interstate facilities to persuade or coerce a minor to engage in sexual activity. Copp appeared today before U.S. District Court Judge Audrey Fleissig who also ordered restitution in the amount of $294,000.
In December 2018, Copp was convicted of eight counts of child sexual exploitation and enticement involving four victims.
According to testimony presented at trial, for several years defendant Copp groomed and sexually abused two minor females who had been in his custody since 2009. The grooming process began when defendant Copp began touching the victims’ buttocks while playing “the butt game,” which then led to him touching their vaginas and breasts. Eventually, Copp began raping both girls, and he would record the sex acts with a cell phone or video recorder. While at the Dojo Pizza property, Copp would rape each girl multiple times a week, and while there he took pornographic pictures of one victim’s genitals and breasts. Copp would also watch pornography with one of the victims in his office at the Dojo Pizza property.
During trial, there was also evidence of Facebook chats between three minor female victims and a Facebook account utilized by Copp, which purported to be used by a 13 year-old named “Chrissy.” The Facebook account depicted a facial image of a minor female for the profile picture, and this same Facebook profile picture of “Chrissy” was found on Copp’s computer, along with multiple pornographic images of the three victims that were sent to the “Chrissy” Facebook account. Additionally, within the Facebook chats between “Chrissy” and the minor victims, there were multiple references to sexual activity and/or sexually explicit conduct occurring between the victims, as well as one particular victim and Copp. Also, there were coercive and deceptive emails sent from a Yahoo email account directed towards one minor victim, which were between Copp’s Gmail account and the Yahoo account. The majority of the Yahoo emails were sent from the same IP address attached to emails sent/received from Copp’s Gmail account. The subscriber information and backup emails used for the “Chrissy” Facebook account, as well as the Yahoo email account, were linked to Copp.
The Federal Bureau of Investigation, the St. Louis Metropolitan Police Department, the Regional Computer Crime Education and Enforcement Group (RCCEEG) and the U.S. Department of Homeland Security – Immigration and Customs Enforcement (ICE), investigated the case.
California Man Pleads Guilty to Transporting a Minor for ProstitutionRead the Press Release
KANSAS CITY, Mo. – A Murrieta, California, man pleaded guilty in federal court today to transporting a 16-year-old victim across state lines for prostitution.
Michael Barrett Cason, 38, pleaded guilty before U.S. District Judge Beth Phillips to the charge contained in a Dec. 13, 2017, federal indictment.
According to today’s plea agreement, Kansas City, Missouri, police officers received a request to conduct a wellness check for a missing 16-year-old from Texas on Nov. 18, 2017. Officers responded to a local hotel to locate the minor, who had posted her location on social media. While officers were at the hotel, co-defendant Shelbi Katelyn Chaddick, 28, of Texas, arrived, driving Cason’s Mercedes-Benz with the missing 16-year-old victim. Officers accompanied the victim to her hotel room, where they saw items consistent with prostitution. Officers also saw several text messages on the victim’s locked cell phone asking when she would be available.
The child victim told officers she had been transported by Cason and Chaddick from Texas to Missouri to engage in prostitution, and had engaged in prostitution with several individuals while in Kansas City. Investigators located live Backpage and CallsEscort ads that utilized the child victim’s cell phone number.
Chaddick pleaded guilty on July 10, 2019, to making false statements to law enforcement.
Under the terms of today’s plea agreement, Cason is subject to a sentence of 10 years in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Teresa Moore. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Project Safe Childhood
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 individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Ashland Felon Sentenced to One Year for Possessing FirearmRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Jeremy Strobel, 42, Ashland, Wisconsin, was sentenced on December 20, 2019, by U.S. District Judge James Peterson to one year in prison for possessing a firearm as a felon. Strobel pleaded guilty this charge on September 9, 2019.
On April 20, 2019, Ashland police found Strobel passed out in the driver’s seat of a car with a .38 caliber snub nose revolver next to him. In the vehicle, officers located empty baggies, empty vials, and $700 in cash. Officers also saw a bag of methamphetamine on his thigh which Strobel then appeared to swallow. Messages were found on Strobel’s phone that suggested he was dealing drugs.
Strobel has a lengthy criminal history starting in 1995 when he was 18 years old, has been on supervision more than 20 times, and has been revoked on many occasions due to rule violations and criminal offenses. Approximately three months before being caught with the gun in this case, he was revoked and sentenced to one year in prison but with extensive sentence credit was release soon thereafter.
At sentencing, Judge Peterson said that Henke had one of the longest criminal histories that he has seen and that protecting the public was his primary goal. Strobel is currently serving a six-year state prison sentence. Judge Peterson found that because Strobel was a danger to the community, additional punishment was warranted. Judge Peterson ordered the one-year federal sentence to run consecutive to the state prison term.
The charge against Strobel was the result of an investigation conducted by the Ashland Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Corey Stephan.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach involves collaboration by federal, state and local law enforcement agencies, prosecutors and communities to prevent and deter gun violence.
26 December 2019
U.S. Attorney's Office Collects over $3M in Civil and Criminal PenaltiesRead the Press Release
PROVIDENCE – United States Attorney Aaron L. Weisman announced today that the District of Rhode Island collected $3,256,549.78 in criminal and civil actions in Fiscal Year 2019. Of this amount, $1,633,893.21 was collected in criminal actions and $1,622,656.57 was collected in civil actions.
Additionally, the District of Rhode Island worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $20,833,502.89 in cases pursued jointly by these offices. Of this amount, $4,344.30 was collected in criminal actions and $20,879,158.59 was collected in civil actions.
Additionally, the U.S. Attorney’s office in Rhode Island working with partner agencies and divisions, collected $1,234,635.00 in asset forfeiture actions in FY 2019. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
These recoveries reflect the breadth of the District of Rhode Island’s caseload and enforcement efforts in multiple areas. For example, of the District’s total, approximately $535,000 was recovered in a civil penalty action brought against a major national pharmacy chain for its alleged failure to detect invalid prescriptions for controlled substances at its Rhode Island pharmacies; nearly $700,000 was recovered for false claims to the United States resulting from the supply of counterfeit military uniforms to government purchasers; and nearly $300,000 was recovered from a local ambulance company to resolve allegations that it improperly billed the Medicare and Medicaid programs for medically unnecessary ambulance runs.
“These collection figures reflect our Office’s commitment to use all the tools at our disposal to deter illegal conduct and make the government whole when it is victimized by fraud, as well as to recover the financial fruits of crime for the benefit of victims,” remarked U.S. Attorney Weisman in announcing these collection results.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S., and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
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Previously Removed Mexican National Sentenced to Seven Years on Prostitution, Narcotics and Firearms OffensesRead the Press Release
United States Attorney Matthew D. Krueger announced that on December 23, 2019, Jose Facio-Santos, a citizen of Mexico illegally in the United States after having been previously removed, was sentenced to seven years in federal prison for selling cocaine, heroin, and firearms, and transporting women into Milwaukee for purposes of prostitution. Upon completion of his sentence, he will be removed again to Mexico.
The investigation revealed Facio-Santos sold narcotics on multiple occasions between September 2014 and December 2016, including approximately 166 grams of cocaine and 138 grams of heroin. In addition, in 2017, Facio-Santos sold an AK-47 style rifle and a Norinco Model SKS Rifle to an individual Facio-Santos did not know was working at the direction of law enforcement. On October 26, 2018, a search of Facio-Santo’s house recovered a stolen 9 mm firearm along with a magazine containing approximately 11 rounds of ammunition. When his cell phone was searched, law enforcement found photographs of Facio-Santos posing with at least seven different firearms.
During the investigation, law enforcement discovered that Facio-Santos operated a brothel in Milwaukee. By his own admission, Facio-Santos prostituted 250 women during the years he ran the brothel. Every week, a new woman was brought from out-of-state to be prostituted and was required to perform between 10-15 commercial sex acts per day during her week in Milwaukee. At the end of the week, Facio-Santos would take the woman to a predetermined location where she would be transported to another city. Court documents revealed that the women were extremely vulnerable, as many were undocumented and in dire financial situations.
During the sentencing hearing Federal District Judge Lynn Adelman stated, that a “fairly significant sentence” was “necessary” to account for Facio-Santos having sold heroin, cocaine, and two highly dangerous weapons, as well as his managerial role in prostitution, all while in the United States illegally. The Judge further noted that Facio-Santos preyed upon “vulnerable people,” which was very harmful in so many different ways.
“Facio-Santos is a serious criminal who trafficked in dangerous drugs, lethal weapons, and vulnerable women,” said United States Attorney Krueger. “I commend the law enforcement agencies who conducted the investigation and brought Facio-Santos to justice.”
The following agencies participated in the investigation: Homeland Security Investigations, the Drug Enforcement Administration, and the Federal Bureau of Investigation.
The case was prosecuted by Assistant United States Attorneys Karine Moreno-Taxman and Elizabeth Monfils.
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For Additional Information Contact:
Public Information Officer Kenneth Gales 414-297-1700
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Maryland U.S. Attorney’s Office Collects over $77 Million in Civil and Criminal Actions for U.S. Taxpayers in FY 2019Read the Press Release
Baltimore, Maryland – U.S. Attorney Robert K. Hur announced that financial collections in criminal and civil actions in Fiscal Year (FY) 2019 in the District of Maryland reached $77,313,382.58. The U.S. Department of Justice keeps statistics on a fiscal year basis, closing the books each September 30.
“Thanks to the hard work and dedication of employees of the U.S. Attorney’s Office and our partner agencies, funds recovered far exceed the cost of operating the office,” said Maryland U.S. Attorney Robert K. Hur. “We will continue to hold accountable anyone who seeks to profit from illegal activities.”
According to statistics from the Department of Justice, the U.S. Attorney’s Office for the District of Maryland in FY 2019 collected $10,072,186.17 in criminal debts owed to the U.S. government and to federal crime victims, including restitution, criminal fines, and felony assessments.
The statistics show that the $67,241,196.41 collected in civil actions in Maryland include affirmative civil enforcement cases—in which the United States recovered government money lost to fraud or other misconduct or collected penalties imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws—and debts collected on behalf of several federal agencies, including the U.S. Department of Health and Human Services. These cases include the successful resolution of investigations or qui tam actions against Med Star Health, Inc., International Business Machines Corporation, ACell, Inc., Anne Arundel Medical Center, Skyline Urology, P.A., Hyperheal Hyperbarics, Inc., Maryland Treatment Centers, Inc., and two Medicare data-mining investigations against Dr. Wagdi Attia and Cardiac Associates, P.C.
Additionally, the District of Maryland worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $6,992,231 in cases pursued jointly with these offices. Of this amount, $10,473.20 was collected in criminal actions and $6,981,757.80 was collected in civil actions, including cases resolved under the False Claims Act on behalf of victim agencies such as the U.S. Department of Health and Human Services, the U.S. Department of Defense, and the U.S. Department of Education.
The U.S. Attorney’s Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered physical injury or financial loss. While restitution is paid directly to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal healthcare laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the U.S. Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration, and the U.S. Department of Education.
In addition, the U.S. Attorney’s Office for the District of Maryland, working with partner agencies and divisions, collected $6,142,695 in asset forfeiture actions in FY 2019. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
For more information, the Department’s Annual Statistical Reports on prior fiscal years can be found on the Internet at: https://www.justice.gov/usao/resources/annual-statistical-reports.
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Jeffrey Dworek Charged with Defrauding Metro Waste AuthorityRead the Press Release
Dworek alleged to have embezzled over one million dollars
DES MOINES, Iowa – On December 18, 2019, a federal grand jury returned an Indictment charging Jeffrey Dworek, age 54, formerly of Urbandale, with ten counts of Mail Fraud announced United States Attorney Marc Krickbaum. Trial is scheduled for February 3, 2020 before United States District Court Chief Judge John A. Jarvey.
According to the Indictment, from 2012 to 2017, Jeffrey Dworek, while employed as Metro Waste Authority Director of Operations, mailed fraudulent invoices to Metro Waste Authority for payment. The fraudulent invoices were from Britad, a company that Dworek incorporated in 2012, without the knowledge of Metro Waste Authority. As a result, Metro Waste Authority paid Britad over $1 million, to Dworek’s benefit.
The public is reminded that an Indictment is merely an accusation, and the defendant is presumed innocent unless they are proven guilty.
This matter has been investigated by the Federal Bureau of Investigation and the State of Iowa Auditor’s Office. This case is being prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Former Pittsburgh Resident Pleads Guilty to Narcotics TraffickingRead the Press Release
PITTSBURGH, PA - A former resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court last week to charges related to narcotics trafficking in connection with a large-scale investigation conducted by the Greater Pittsburgh Safe Streets Task Force, United States Attorney Scott W. Brady announced today.
John Fedorka, 36, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute heroin and fentanyl, and one count of possession with intent to distribute heroin and fentanyl, before United States District Judge William S. Stickman IV. The defendant acknowledged his responsibility for the distribution of 18 grams of a mixture of heroin and fentanyl. Mr. Fedorka is one of 37 defendants charged in the Indictment.
In connection with the guilty plea, the court was advised that in 2017, the Greater Pittsburgh Safe Streets Task Force initiated an investigation primarily targeting the Darccide/Smash 44, or DS44, neighborhood gang, and its drug-trafficking activity, in and around the South Side area of Pittsburgh. As part of this large-scale narcotics and firearms investigation, in February of 2019, the United States received authorization to conduct a federal wire investigation, which continued through June of 2019.
Fedorka purchased heroin and fentanyl from his co-conspirator, Christopher Highsmith, and served as a middleman in drug transactions. The court was further informed that on January 17, 2019, the Pittsburgh Bureau of Police made a traffic stop on a vehicle in which Fedorka was the front seat passenger. Police recovered three bricks of heroin from Fedorka.
Judge Stickman scheduled sentencing for May 6, 2020, at 10:30 am. The law provides for a total sentence of 30 years in prison, a fine of $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. In addition to the charges to which he pleaded guilty, Fedorka has a prior felony drug conviction, and, as such, is subject to enhanced penalties. The defendant remains in jail pending the sentencing hearing.
Assistant United States Attorney Christy C. Wiegand is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Bureau of Alcohol Tobacco Firearms and Explosives, Allegheny County Adult Probation, Allegheny County Police Department, Allegheny County Sheriff’s Office, Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, and the Wilkinsburg Police Department. Other assisting agencies include the Green Tree Police Department, New York City Police Department, Mount Oliver Police Department, Pennsylvania State Police, Yonkers Police Department, United States Marshals Fugitive Task Force, and the United States Postal Inspection Service.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Federal District Court Orders New York Company to Stop Distributing Adulterated and Misbranded Dietary SupplementsRead the Press Release
The U.S. District Court for the Eastern District of New York permanently enjoined ABH Nature’s Products, Inc., ABH Pharma, Inc., StockNutra.com, Inc. (together, "ABH"), each of Edgewood, New York, and their owner, Mohammed Jahirul Islam ("Islam") of Flushing, New York from distributing adulterated and misbranded dietary supplements in violation of the Federal Food, Drug, and Cosmetic Act, the Department of Justice announced today.
The injunction requires ABH and Islam to destroy, within 15 days, dietary supplements that are in their possession, custody, or control. The injunction also orders ABH and Islam to implement several consumer safety measures before resuming the manufacturing or distributing of dietary supplements. Those measures include hiring an independent expert to inspect ABH’s facility and certify that the facility has corrected all deficiencies and implemented current good manufacturing practices. It also mandates that the defendants engage a labeling expert to review their product labeling and certify that claims on their products comply with the law.
"Today’s injunction reflects the Department of Justice’s commitment to protect consumers from adulterated and misbranded dietary supplements," said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. "The Department of Justice will work with the FDA to ensure that dietary supplements are manufactured according to food safety laws and accurately describe their ingredients."
"As demonstrated by today’s consent decree, this office and the FDA will work tirelessly to protect consumers who take dietary supplements, ensuring that manufacturers comply with good manufacturing practices and do not distribute unapproved and misbranded drugs in violation of the Food, Drug, and Cosmetic Act," said U.S. Attorney for the Eastern District of New York Richard P. Donoghue.
"Manufacturers of products labeled as dietary supplements have an obligation to evaluate the safety and labeling to ensure their products are manufactured correctly to meet all federal requirements and are not misleading to consumers," said Melinda K. Plaisier, FDA Associate Commissioner for Regulatory Affairs. "Americans expect and deserve products that meet appropriate standards, and the FDA remains committed to taking action against companies and owners who place the health of American consumers at risk."
The injunction stems from a complaint the Department filed on Nov. 21, 2019, at the request of the U.S. Food and Drug Administration (FDA). According to the complaint, ABH and Islam manufactured, prepared, labeled, packed, held, and distributed dietary supplements under conditions that failed to comply with current good manufacturing practice regulations. In particular, the complaint alleged that the FDA had observed several critical deviations from current good manufacturing practice regulations during its inspections of ABH’s manufacturing facility, including failures to verify that certain dietary supplements met the product’s specifications for identity, purity, strength, and composition; to implement a production system that ensured the quality of the supplements; to include necessary information in its production records; and to properly review and investigate a consumer complaint.
In addition, the complaint alleged that ABH and Islam further violated the Federal Food, Drug, and Cosmetic Act by distributing unapproved and misbranded "new drugs" into interstate commerce. For instance, as alleged in the complaint, ABH made claims on product labeling that such products could be used to treat such medical conditions as cancer, heart disease, HIV and AIDS, even though the FDA had not approved those products for such purported uses, nor were there any published adequate and well-controlled investigations showing that such products are generally recognized as safe and effective for any use.
The defendants agreed to resolve the complaint and be bound by a consent decree of permanent injunction. The court adopted the agreement and entered the injunction.
The government is represented by Trial Attorney Joshua Fowkes of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Evan Lestelle of the U.S. Attorney’s Office for the Eastern District of New York, with the assistance of William Thanhauser of the FDA’s Office of Chief Counsel.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Eastern District of New York, visit its website at https://www.justice.gov/usao-edny.
Ex-housing authority official faces fraud chargesRead the Press Release
McALLEN, Texas – The former interim executive director for the La Joya Housing Authority is now in custody on charges of wire fraud, announced U.S. Attorney Ryan K. Patrick.
Frances Salinas De Leon, 52, La Joya, is set to appear before U.S. Magistrate Judge Elizabeth Chestney in San Antonio tomorrow morning.
The criminal complaint was filed Dec. 12 and unsealed upon her arrest earlier this week. It alleges that from June 2018 to approximately November 2018, De Leon acted as an intermediary between Sylvia Garces Valdez and a local elected official. De Leon allegedly helped secure a public relations contract for Valdez.
The charges also detail text conversations between Valdez and De Leon in which De Leon claimed to have a direct connection with a La Joya official. That individual would allegedly ensure the contract’s approval and any necessary amendments, according to the complaint. De Leon also allegedly set the amount of payment under the contract. The charges further allege Valdez would have to give money to DeLeon after the contract’s approval.
The complaint further alleges the women emailed each other about the contract and that Valdez had sent additional ones at DeLeon’s direction.
If convicted, De Leon faces up to 20 years in federal prison as well as a possible $250,000 maximum fine.
Valdez, 38, La Joya, is also charged in a related case. If convicted if federal program bribery, she faces up to 10 years and a possible $250,000 fine.
The FBI and Department of Housing and Urban Development—Office of the Inspector General conducted the investigation. Assistant U.S. Attorneys Sarina S. DiPiazza and Roberto Lopez Jr. are prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless and until convicted through due process of law.District Court Orders Three Long Island Companies and Their Owner to Stop Distributing Adulterated and Misbranded Dietary Supplements and Unapproved and Misbranded DrugsRead the Press Release
BROOKLYN, NY – The United States District Court for the Eastern District of New York has entered a consent decree barring three corporations, ABH Nature’s Products, Inc., ABH Pharma, Inc., and StockNutra.com, Inc. (together, “ABH”), each of Edgewood, New York, and their owner, Mohammed Jahirul Islam (“Islam”), from distributing adulterated and misbranded dietary supplements and unapproved and misbranded drugs, and requiring them to take remedial action.
The consent decree approved by United States District Judge LaShann DeArcy Hall requires ABH and Islam to destroy, within 15 days, all dietary supplements and drugs in their possession, custody or control. The injunction also requires ABH and Islam to implement consumer safety measures before resuming the manufacturing or distributing of dietary supplements. This includes hiring an independent expert to perform a comprehensive inspection of ABH’s facility, and requiring the expert to certify that defendants are complying with current good manufacturing practices.
The consent decree resolves a suit filed on November 21, 2019, at the request of the U.S. Food and Drug Administration (FDA). According to the complaint, ABH and Islam manufactured, prepared, labeled, packed, held and/or distributed dietary supplements under conditions that failed to comply with current good manufacturing practice regulations.
“As demonstrated by the consent decree, this Office and the FDA will work tirelessly to protect consumers who take dietary supplements, ensuring that manufacturers comply with good manufacturing practices and do not distribute unapproved and misbranded drugs in violation of the Food, Drug, and Cosmetic Act,” stated U.S. Attorney for the Eastern District of New York Richard P. Donoghue.
“Today’s injunction reflects the Department of Justice’s commitment to protect consumers from adulterated and misbranded dietary supplements,” stated Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The Department of Justice will work with the FDA to ensure that dietary supplements are manufactured according to food safety laws and accurately describe their ingredients.”
“Manufacturers of products labeled as dietary supplements have an obligation to evaluate the safety and labeling to ensure their products are manufactured correctly to meet all federal requirements and are not misleading to consumers,” said Melinda K. Plaisier, FDA Associate Commissioner for Regulatory Affairs. “Americans expect and deserve products that meet appropriate standards, and the FDA remains committed to taking action against companies and owners who place the health of American consumers at risk.”
According to the complaint, the FDA documented numerous significant deviations from current good manufacturing practice regulations during at least six inspections of ABH’s facilities conducted over the past several years, including failures to: conduct at least one appropriate test to verify the identity of a dietary ingredient; verify that finished batches of dietary supplements meet product specifications for identity, purity, strength and composition; include required information in batch production records; and properly review and investigate a consumer complaint.
In addition, the complaint alleged that ABH and Islam further violated the federal Food, Drug, and Cosmetic Act by distributing unapproved and misbranded “new drugs” into interstate commerce. For instance, as alleged in the complaint, ABH made claims on product labeling that such products could be used to treat such medical conditions as cancer, heart disease, HIV and AIDS, even though the FDA had not approved those products for such purported uses, nor were there any published adequate and well-controlled investigations showing that such products are generally recognized as safe and effective for any use.
ABH and Islam agreed to resolve the complaint and be bound by the consent decree of permanent injunction.
The government is represented by Assistant U.S. Attorney Evan Lestelle of the U.S. Attorney’s Office for the Eastern District of New York and Trial Attorney Joshua Fowkes of the Civil Division’s Consumer Protection Branch, with the assistance of Associate Chief Counsel for Litigation William Thanhauser of the Department of Health and Human Services’ Office of General Counsel’s Food and Drug Division.
For more information about the U.S. Attorney’s Office for the Eastern District of New York, visit its website at https://www.justice.gov/usao-edny. Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch.
The Defendants:
ABH NATURE’S PRODUCTS, INC.
Edgewood, New YorkABH PHARMA, INC.
Edgewood, New YorkSTOCKNUTRA.COM, INC.
Edgewood, New YorkMOHAMMED JAHIRUL ISLAM
E.D.N.Y. Docket No. 19-CV-6589 (LDH) (RLM)
Albuquerque Man Pleads Guilty to Three Armed Robberies at Local BusinessesRead the Press Release
ALBUQUERQUE, N.M. – Lalonzo Simmons, 44, of Albuquerque, NM, pleaded guilty today in federal court to committing three armed robberies with another man in 2018.
Simmons pleaded guilty to three counts of an indictment charging him with interference with commerce by robbery and violence and one count of using, carrying, brandishing, and discharging a firearm during a crime of violence. Simmons also pleaded guilty to a felony information charging him with being a felon in possession of a firearm.
Simmons admitted in his plea agreement that he committed these armed robberies at businesses in Albuquerque over the course of two months. Simmons admitted another man assisted him in these robberies, and that both of them possessed firearms during the crimes.
According to the plea agreement, Simmons and the other man robbed a fast food restaurant on March 19, 2018. During this robbery, Simmons accidentally discharged an assault rifle behind the counter. Later in the robbery, Simmons pressed his rifle to the back of a store employee to force the employee to open a cash register. The other man shot his gun while in a back room of the restaurant with another employee. Both Simmons and the other man fled the store with cash from the register.
In his plea agreement, Simmons admitted that he and the other man also robbed a marijuana dispensary on April 3, 2018. They ordered employees at gunpoint to sit down. The other man grabbed cash from a register. Both men also stole marijuana products from the store before fleeing.
Simmons also admitted that he and the other man also robbed a different marijuana dispensary on May 1, 2018. This time Simmons used a pistol in the offense. Simmons stood guard at the door while the other man fired his gun into the ceiling, threatened employees and customers, and stole money and marijuana products.
Police arrested Simmons at his home a few hours after the third robbery. Simmons had a rifle with an obliterated serial number at his home at the time of his arrest.
Simmons faces up to 20 years in prison for each count of interference with interstate commerce by robbery or violence. He faces from 10 years to life in prison for using, carrying, brandishing, and discharging a firearm and for being a felon in possession of a firearm.
Simmons currently is in custody awaiting sentencing. He previously was convicted of an unrelated charge of armed robbery with a deadly weapon, theft of means of transportation, aggravated battery with great bodily harm, conspiracy to commit aggravated burglary, and false imprisonment.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case with the Albuquerque Police Department. Special Assistant U.S. Attorney Timothy Trembley prosecuted the case as part of the U.S. Attorney’s Office’s “SAUSA Partnership” with the 2nd Judicial District Attorney’s Office, a joint initiative designed to reduce violent crime in Albuquerque.
24 December 2019
Attorney General Barr's Holiday Message to the Department of JusticeRead the Press Release
As 2019 comes to a close, I wish to thank each and every one of you for your invaluable work at the Department of Justice. Public service is a special calling that requires sacrifice, and that sacrifice is deeply appreciated by me and the Department leadership.
It is the duty of our agency to keep the American people safe. On that front, we have many reasons to be proud of our work together. Over the past twelve months, we forged real progress that has bolstered the rule of law and improved innumerable lives throughout the country. We have reduced violent crime, delivered justice to members of vulnerable communities, made headway in the opioid crisis, and launched nationwide law enforcement initiatives. I appreciate the invaluable contributions that you, the men and women of the Department, have made to these efforts.
I would also like to express special gratitude to the men and women who put on a badge every day to protect us. There is no tougher job in this country than being a police officer or law enforcement agent. Many will work long hours through the holidays and away from their families so that we can live in peace and safety.
Sadly, this holiday season, there are families that will be without loved ones who gave the last full measure of devotion to protect us from those who would do us harm. I had the honor of meeting a number of those families this year, and I found their resolve inspiring and a shining example of the American spirit. Please join me in thanking them for their service and sacrifice.
I wish all of you health and happiness as we embark upon this new year. The coming year marks the Department’s 150th anniversary and we will celebrate this milestone with events and in other special ways to underscore our agency’s seminal role in American history, enforcing the law and preserving the way of life that has allowed for unprecedented freedom and human flourishing.
May we together arrive in the new year rejuvenated, eager to celebrate 150 years of justice, and ready to continue serving the country and the American people. Happy Hanukkah, Merry Christmas, and the happiest of holidays to you and your loved ones.
With gratitude and appreciation,
Bill Barr
23 December 2019
Washington Township Businessman Sentenced for Conspiracy to Commit Wire Fraud Relating to Procurement of Government Set-Aside ContractsRead the Press Release
A Washington Township, Michigan man was sentenced on December 19, 2019 to serve 12 months in federal custody for conspiracy to commit wire fraud, United States Attorney Matthew Schneider announced today.
Schneider was joined in the announcement by Special Agent-in-Charge, Jeffrey Ryan, General Services Administration, Office of Inspector General.
Dennis Pomante, age 68, received the sentence from the Honorable Denise Page Hood, Chief United States District Judge. Judge Hood also ordered that the defendant pay a fine of $50,000, forfeit $30,000 to the United States, and serve two years on supervised release after his release from federal custody.
According to the information provided to the Court at the time of his guilty plea and sentencing, Mr. Pomante, from July 2006 through July 2014, devised and executed a scheme to defraud various government departments and agencies by making false material misrepresentations to obtain numerous government contracts which were set-aside for small businesses owned by service disabled veterans or socially disadvantaged individuals. The scheme involved POMANTE and co-conspirators falsely claiming that U.S. Builders Group, Inc. [USBG], a Detroit- based business, was a small business owned and controlled by a service-disabled veteran as defined by federal regulations. Mr. Pomante and his co-conspirators knew that USBG was an affiliated business of another business and did not qualify as a “small business,” and that a service-disabled veteran did not control the business as required to receive the contracts they bid on. Through these misrepresentations, USBG was able to obtain over $100 million in federal contracts that would otherwise have gone mainly to genuine small, service- disabled, veteran-owned businesses. Mr. Pomante is now retired, and no longer has ownership in the involved businesses. USBG went out of business in 2014.
"The GSA Office of Inspector General will aggressively pursue contractors who make false representations in order to obtain federal contracts” said Special Agent-in-Charge, Jeffrey Ryan. “Schemes to fraudulently access opportunities designated as set-aside contracts cheat the government and deserving bidders.”
The case was jointly investigated by agents of the Offices of Inspectors General for the Veterans’ Administration, the General Services Administration, the Small Business Administration, and the Department of Defense, and prosecuted by the White Collar Crimes Unit of the United States Attorney’s Office.
U.S. Attorney’s Office collects more than $14 million in civil and criminal actions in fiscal year 2019Read the Press Release
Seattle – U.S. Attorney Brian T. Moran announced today that the Western District of Washington collected more than $14 million in criminal and civil actions in fiscal year 2019. $10.3 million of that amount was collected in criminal cases, while $3.7 was collected in civil cases. Additionally, the office forfeited more than $4.6 million in criminally involved property in fiscal year 2019.
“Part of holding law breakers accountable is taking the profit out of crime and misconduct,” said U.S. Attorney Brian Moran. “I want to recognize the hard work of the attorneys and professional staff in the U.S. Attorney’s Office who work diligently to get offenders to pay up and work to see that civil fines and payments go to help those who have been damaged.”
In criminal case collections, the office secured more than $2 million in restitution for the investment fraud victims in U.S. v. Dennis Gibb.
In U.S. v. Steven Ross, the U.S. Attorney’s Office collected the full $368,000 in restitution for this case involving fraud on the Social Security Administration.
In civil collections, the office collected more than $400,000 from doctors and medical practices who settled allegations they received kickbacks for ordering unnecessary medical tests. And a nationwide flooring company paid more than $133,000 to settle allegations it paid kick-backs for government work.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Additionally, the U.S. Attorney’s Office in the Western District of Washington, working with partner agencies and divisions, forfeited $4,625,430 in criminally-involved property in FY 2019. The proceeds from those forfeitures are deposited into the Department of Justice Assets Forfeiture Fund, where they are used to restore funds to crime victims and for a variety of law enforcement purposes.
In 2019, significant Department of Justice forfeitures included the criminal forfeiture of $745,000 real property and financial accounts in U.S. v. Lionel Hampton, et al. The criminal group distributed controlled substances including oxycodone and laundered the proceeds through real property purchases.
In a second case, U.S. v. Keenan Gracey, the office forfeited nearly $604,000 in proceeds that Gracey paid to rent a mansion used in the fraud scheme. We have requested that these funds be applied to Gracey’s restitution order and paid to his victims.
U.S. Attorney’s Office Recovers more than $25 Million in Civil and Criminal Actions in Fiscal Year 2019Read the Press Release
Assistant U. S. Attorney Leah Bussell (619) 546-6727
NEWS RELEASE SUMMARY – December 23, 2019
SAN DIEGO – The Southern District of California collected $15,280,216.07 in criminal and civil actions in Fiscal Year 2019. Of this amount, $11,247,702.88 was collected in criminal actions and $4,032,513.19 was collected in civil actions. The Southern District of California worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $1,991,480.00 in cases pursued jointly by these offices.
Additionally, the U.S. Attorney’s office for the Southern District of California, working with partner agencies and divisions, collected $10,665,224 in asset forfeiture actions in FY 2019.
“The recovery of stolen funds and the return of that money to victims is an important priority for this office,” said U.S. Attorney Robert Brewer. “We use all available legal tools to recover money for victims and ensure that defendants are held accountable for the full amount of the losses. These results are a great credit to the hard work and dedication of our Asset Recovery section led by Assistant U.S. Attorney Leah Bussell and our outstanding team of agency partners.”
In one case in August, the U.S. Attorney’s Office recovered $2,934,754.01 in fraud proceeds from Karen Galstian. Galstian had pleaded guilty to conspiracy to commit mail and wire fraud in November of 2015. A court sentenced Galstian to 100 months custody and ordered him to pay restitution to the victim. The United States Attorney’s office pursued collection of the restitution and in August of 2019, collected almost $3 million from assets owned by Galstian – funds that were distributed to the victim.
The U.S. Attorneys’ offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Three Bay County Men Sentenced for Operating Sweepstakes Scam Targeting Elderly VictimsRead the Press Release
PANAMA CITY, FLORIDA–Three Bay County men – Delroy Williams, 52, of Lynn Haven, Vivian Walters, 33, of Lynn Haven, and Jevaughn Williams, 22, of Panama City Beach – were sentenced on federal fraud charges stemming from activities meant to induce elderly victims with false promises of sweepstakes prizes. The sentences were announced today by Lawrence Keefe, United States Attorney for the Northern District of Florida.
The three men pleaded guilty in June to one count of conspiracy to commit wire fraud and mail fraud, one count of wire fraud, and one count of mail fraud. Jevaughn Williams was sentenced to 30 months in federal prison followed by three years of supervised release, while Walters and Delroy
Williams were sentenced to 36 months in federal prison followed by three years of supervised release.“It is hard to fathom how some deceitful criminals have no problem preying on innocent victims, especially those they consider most vulnerable because they are elderly. The U.S. Attorney’s Office has a message for these criminals: We will find you, we will prosecute you, and we will put you away,” Keefe said.
Since the late 1990s, telemarketers in Jamaica have been engaging in a scam in which they contact victims in the United States and falsely claim their targets have won large sweepstakes prizes.
Victims, who are primarily elderly, are induced to send cash or cash equivalents in order to release their supposed prizes. The victims’ funds are often transported by wire transfers and
United States Postal Service packages.Between 2014 and 2017, the defendants conspired together to receive wire transfers and packages mailed by victims. They then took a percentage of the funds for themselves before forwarding the remainder to co-conspirators in Jamaica. Multiple victims have been identified through wire transfer records and searches of the defendants’ electronic devices.
“The U.S. Postal Inspection Service will continue to pursue justice on behalf of our elderly customers by thoroughly investigating lottery scams and those involved with victimizing U.S.
Citizens,” stated Miami Division Inspector in Charge Tony Gomez.Assistant U.S. Attorneys Michael Harwin and Michelle Daffin prosecuted the case following a joint investigation by the United States Postal Inspection Service and the Lynn Haven Police Department.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of
Florida website. For more information about the United States Attorney’s Office, Northern
District of Florida, visit http://www.justice.gov/usao/fln/index.html.Texas Health and Human Services Commission Agrees to Pay over $15 Million to Resolve False Claims Act Liability for Deficient Snap Quality ControlRead the Press Release
The Texas Health and Human Services Commission (THHSC) has agreed to pay the United States $15,294,360 to resolve allegations that it violated the False Claims Act in its administration of the Supplemental Nutrition Assistance Program (SNAP), the Department of Justice announced today.
“SNAP is an important vehicle for helping needy families,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “This settlement is an example of the Department’s commitment to ensuring that taxpayer funds are spent appropriately so that the public can have confidence in the integrity of vital programs like SNAP.”
“Although it is appalling that these actions occurred within a state agency entrusted with assisting vulnerable and needy residents, I am heartened that THHSC has resolved its liability and cooperated with our investigation,” said William D. Hyslop, United States Attorney for the Eastern District of Washington. “Together with our partners in the Justice Department’s Civil Division and the USDA, we will continue to investigate and hold accountable those who misuse and wrongfully obtain SNAP funding.”
Until 2008, SNAP was known as the Food Stamp Program. Under SNAP, the U.S. Department of Agriculture (USDA) provides eligible low-income individuals and families with financial assistance to buy nutritious food. Since 2010, SNAP has served on average more than 45 million Americans per month, and provided more than $71 billion annually.
Although the federal government funds SNAP benefits, it relies on the states to determine whether applicants are eligible for benefits, to administer those benefits, and to perform quality control to ensure that eligibility decisions are accurate. USDA requires that the states’ quality control processes ensure that benefits are correctly awarded, are free from bias, and accurately report states’ error rates in making eligibility decisions.
USDA reimburses states for a portion of their expenses in administering SNAP, including expenses for providing quality control. The USDA also pays performance bonuses to states that report the lowest and the most improved error rates each year, and can impose monetary sanctions on states with high error rates that do not show improvement.
The settlement resolves allegations that THHSC, beginning in 2009, contracted with Julie Osnes Consulting, LLC (Osnes Consulting) to provide advice and recommendations designed to lower its SNAP quality control error rate. The United States alleged that Osnes Consulting’s recommendations, as implemented by THHSC, injected bias into THHSC’s quality control process, and resulted in THHSC submitting false quality control data and information to USDA for which it received performance bonuses for fiscal years 2010, 2013, and 2014 to which it was not entitled.
This is the fifth settlement in this matter, and the fourth settlement with a state agency for manipulating its SNAP quality control findings. The United States has reached previous settlements with state agencies in Virginia, Wisconsin, and Alaska, as well as with Osnes Consulting and its owner, Julie Osnes. Including this settlement, the United States has now recovered over $32 million in connection with its investigation of deficient state SNAP quality control processes.
“We appreciate the commitment and investigative assistance provided by our partners at the Department of Justice’s Civil Division and the U.S. Attorney’s Office throughout this multi-state investigation,” said Special Agent-in-Charge Bethanne M. Dinkins of the USDA Office of Inspector General (OIG). “We also wish to note the technical assistance provided by our colleagues in the Office of Audit at OIG. During the investigation, conducted by OIG’s Northeast Regional Office, we worked together to address the concerns of employees of multiple states and others who alleged that the integrity of the SNAP quality control process was weakened by third-party consultants. These concerned individuals reported that cases were not being treated in a consistent manner, and that certain advice from consultants resulted in identified errors being diminished rather than used to improve eligibility determinations. The settlements reached to date send a strong message regarding the Government’s commitment to work across agency lines to protect the integrity of SNAP.”
The settlement was the result of a joint investigation conducted by the USDA Office of Inspector General, the U.S. Attorney’s Office for the Eastern District of Washington, and the Department of Justice’s Civil Division, Commercial Litigation Branch. The investigation arose out of a nationwide audit of SNAP QC processes by the USDA-OIG. The investigation for the U.S. Attorney’s Office for the Eastern District of Washington was handled by Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene. The claims resolved by the civil settlement are allegations only and there has been no determination of liability.
Texas Health and Human Services Commission Agrees to Pay over $15 Million to Resolve False Claims Act Liability for Deficient SNAP Quality ControlRead the Press Release
The Texas Health and Human Services Commission (THHSC) has agreed to pay the United States $15,294,360 to resolve allegations that it violated the False Claims Act in its administration of the Supplemental Nutrition Assistance Program (SNAP), the Department of Justice announced today.
“SNAP is an important program for helping families in need,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “This settlement is an example of the Department of Justice’s commitment to ensuring that taxpayer funds are spent appropriately so that the public can have confidence in the integrity of vital programs like SNAP.”
“Although it is appalling that these actions occurred within a state agency entrusted with assisting vulnerable and needy residents, I am heartened that THHSC has resolved its liability and cooperated with our investigation,” said United States Attorney William D. Hyslop for the Eastern District of Washington. “Together with our partners in the Justice Department’s Civil Division and the USDA, we will continue to investigate and hold accountable those who misuse and wrongfully obtain SNAP funding.”
“We appreciate the commitment and investigative assistance provided by our partners at the Department of Justice’s Civil Division and the U.S. Attorney’s Office throughout this multi-state investigation,” said Special Agent in Charge Bethanne M. Dinkins of the USDA Office of Inspector General (OIG). “We also wish to note the technical assistance provided by our colleagues in the Office of Audit at OIG. During the investigation, conducted by OIG’s Northeast Regional Office, we worked together to address the concerns of employees of multiple states and others who alleged that the integrity of the SNAP quality control process was weakened by third-party consultants. These concerned individuals reported that cases were not being treated in a consistent manner, and that certain advice from consultants resulted in identified errors being diminished rather than used to improve eligibility determinations. The settlements reached to date send a strong message regarding the Government’s commitment to work across agency lines to protect the integrity of SNAP.”
Until 2008, SNAP was known as the Food Stamp Program. Under SNAP, the U.S. Department of Agriculture (USDA) provides eligible low-income individuals and families with financial assistance to buy nutritious food. Since 2010, SNAP has served on average more than 45 million Americans per month, and provided more than $71 billion annually.
Although the federal government funds SNAP benefits, it relies on the states to determine whether applicants are eligible for benefits, to administer those benefits, and to perform quality control to ensure that eligibility decisions are accurate. USDA requires that the states’ quality control processes ensure that benefits are correctly awarded, are free from bias, and accurately report states’ error rates in making eligibility decisions.
USDA reimburses states for a portion of their expenses in administering SNAP, including expenses for providing quality control. The USDA also pays performance bonuses to states that report the lowest and the most improved error rates each year, and can impose monetary sanctions on states with high error rates that do not show improvement.
The settlement resolves allegations that THHSC, beginning in 2009, contracted with Julie Osnes Consulting LLC (Osnes Consulting) to provide advice and recommendations designed to lower its SNAP quality control error rate. The United States alleged that Osnes Consulting’s recommendations, as implemented by THHSC, injected bias into THHSC’s quality control process, and resulted in THHSC submitting false quality control data and information to USDA for which it received performance bonuses for fiscal years 2010, 2013, and 2014 to which it was not entitled.
This is the fifth settlement in this matter, and the fourth settlement with a state agency for manipulating its SNAP quality control findings. The United States has reached previous settlements with state agencies in Virginia, Wisconsin, and Alaska, as well as with Osnes Consulting and its owner, Julie Osnes. Including this settlement, the United States has now recovered over $32 million in connection with its investigation of deficient state SNAP quality control processes.
The settlement was the result of a joint investigation conducted by the USDA Office of Inspector General, the U.S. Attorney’s Office for the Eastern District of Washington, and the Department of Justice’s Civil Division, Commercial Litigation Branch. The investigation arose out of a nationwide audit of SNAP quality control procedures by the USDA-OIG. The claims resolved by the civil settlement are allegations only and there has been no determination of liability.
Sex Offender Sentenced to 262 Months for Attempting to Entice a MinorRead the Press Release
ALBANY, NEW YORK – James Seeley, age 55, of Albany and Queensbury, New York, was sentenced today to 262 months in prison for attempted coercion and enticement of a minor.
The announcement was made by United States Attorney Grant C. Jaquith; James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and New York State Police Superintendent Keith M. Corlett.
Seeley was a sex offender as a result of a 2002 conviction, deviate sexual intercourse with another person less than 11 years old, for which he was sentenced to 7 years in state prison. He also has a conviction for possessing child pornography.
As part of his guilty plea in federal court, Seeley admitted that in October 2018, he communicated with two undercover officers, including one posing as an 11-year-old girl. Seeley admitted that he discussed his interest in engaging in various sex acts with someone he believed to be the 11-year-old girl and then went to a location in Queensbury to engage in sexual intercourse with her.
United States District Judge Mae A. D’Agostino also ordered Seeley to serve a life term of supervised release following his release from prison.
This case was investigated by the FBI and the New York State Police, and was prosecuted by Assistant U.S. Attorney Katherine Kopita.
Pinellas County Man Sentenced to More Than Nine Years for Receiving and Possessing Child Sex Abuse MaterialRead the Press Release
Tampa, Florida – U.S. District Judge Virginia M. Hernandez-Covington has sentenced Kelly Stephen Ratcliffe (53, Dunedin) to nine years and two months in federal prison for receiving and possessing child pornography. In addition, Ratcliffe is ordered to pay $49,000 in restitution to the victims, and must forfeit the electronic devices that he used to commit the offenses.
Ratcliffe had pleaded guilty on September 19, 2019.
According to court documents, the FBI executed a search warrant at Ratcliffe’s residence in November 2018. Ratcliffe admitted that he had used his iPhone and iPad to access an internet application known to law enforcement to be used by individuals interested in sharing child sex abuse material, to communicate with others about the sexual abuse of children, and to receive, trade, and save child pornography. A forensic review of Ratcliffe’s electronic devices revealed that he had received numerous images and videos of child pornography from other individuals online and that he possessed approximately 230 videos and over 800 images of child sex abuse material depicting the sadomasochistic conduct, bondage, and penile penetration of infants and toddlers. Ratcliffe told other individuals that he liked child rape and liked them “crying” and “tied.” The forensic analysis of the devices also revealed that Ratcliffe had specifically sought out images and videos of toddlers being raped.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Lisa M. Thelwell.
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 United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Pennsylvania man admits to firearms violationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Charles Lynn, of Uniontown, Pennsylvania, has admitted to a firearms charge, U.S. Attorney Bill Powell announced.
Lynn, age 41, pled guilty to one count of “Unlawful Possession of Firearm.” Flynn, a convicted felon, admitted to illegally possessing a 12 gauge shotgun, a .308 caliber rifle, and a 7mm caliber rifle in October 2018 in Monongalia County.Lynn faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Sarah E. Wagner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Monongalia County Sheriff’s Office, and the Pennsylvania State Police investigated.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods 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. Magistrate Judge Michael John Aloi presided.
Pearland man heads to prison for sex trafficking of a minorRead the Press Release
HOUSTON – A 23-year-old man has been ordered to federal prison after admitting he recruited a high school girl and trafficked her for sex, announced U.S. Attorney Ryan K. Patrick.
Dihlon Lee Davis pleaded guilty Aug. 1, 2o19.
Today, U.S. District Judge George C. Hanks Jr. noted there were consequences for his actions and sentenced Davis to 192 months in prison. He was further ordered to serve 15 years on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. Davis will also be ordered to register as a sex offender. Restitution will be determined at a later date.
On several consecutive weekends in late February and early March 2016, Davis used online advertisements for the victim’s services and rented hotel rooms where some of the commercial sex acts occurred. The victim attended Manvil high school during the week and engaged in the sexual activity on the weekends.
On multiple occasions, Davis provided illegal drugs to the minor victim. He used the money the victim earned to purchase the drugs which he consumed with his girlfriend - also a minor - and the victim.
Davis has been detained since his arrest and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Texas Department of Public Safety (DPS) and FBI – Texas City, both part of the Human Trafficking Rescue Alliance (HTRA), conducted the investigation.
HTRA law enforcement includes members of the Houston Police Department, FBI, Immigration and Customs Enforcement’s Homeland Security Investigations, Texas Attorney General’s Office, IRS-Criminal Investigation, Department of Labor, Department of State, Texas Alcoholic and Beverage Commission, DPS, Coast Guard, sheriff’s offices in Harris and Montgomery counties in coordination with District Attorney’s offices in Harris, Montgomery and Fort Bend Counties.
Assistant U.S. Attorneys Sherri L. Zack and Kimberly A. Leo are prosecuting the case.
Para-Educator Sentenced for Possession of Child PornographyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on December 20, 2019, Bradley Smith, 67, of Jericho, Vermont, was sentenced in United States District Court in Burlington, Vermont, to serve 24 months in prison after his guilty plea to one count of possession of child pornography. U.S. District Judge Christina Reiss also ordered Smith to serve a seven (7) year term of supervised release, and to pay a $100 special assessment.
According to court records and proceedings, the Vermont Internet Crimes Against Children Task Force (the ICAC) received a CyberTip from the National Center for Missing and Exploited Children (NCMEC) which reported that a file depicting child pornography had been uploaded to an Internet search engine. Law enforcement investigated the CyberTip and determined that the image of child pornography had been uploaded from Smith’s residence in Jericho, Vermont. On April 1, 2019, law enforcement executed a search warrant at Smith’s residence. At that time, Smith disclosed, among other things, that he possessed child pornography on his computer, that he had been interested in child pornography for “decades,” and that he found images of child pornography to be sexually arousing. A forensic search of Smith’s computer revealed that he possessed nearly 150 images of child pornography. At sentencing, the Court found that some of the images in Smith’s collection of child pornography depicted sadistic and masochistic conduct.
Prior to execution of the search warrant and his arrest, Smith was employed as a para-educator in a first-grade classroom at the Union Memorial School in Colchester, Vermont.
U.S. Attorney Christina Nolan commended the efforts of the Vermont Internet Crimes Against Children Task Force and Homeland Security Investigations.
Assistant U.S. Attorney Barbara A. Masterson handled the prosecution of Smith. Assistant Federal Public Defender Steven L. Barth represented Smith.
U.S. Attorney Nolan noted that this prosecution is part of the U.S. Department of Justice's Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Oregon Department of Corrections Officer and Co-Conspirator Indicted on Drug ChargesRead the Press Release
PORTLAND, Ore.—Richard Steven Alberts, II, 31, an Oregon Department of Corrections Officer and resident of Sherwood, Oregon, made an initial appearance today in federal court before U.S. Magistrate Judge John Jelderks.
The court unsealed a 3-count indictment charging Alberts and co-conspirator Joseph Lucio Jimenez, 27, of Gresham, Oregon, with conspiracy to distribute controlled substances and distribution of heroin. Alberts and Jimenez are alleged to have conspired with one another and others to distribute methamphetamine and heroin into the Coffee Creek Correctional Facility in Wilsonville, Oregon, where Alberts is employed.
The Oregon Department of Corrections previously placed Alberts on administrative leave pending this investigation.
Alberts was released pending trial. A jury trial is scheduled for February 25, 2020 before U.S. District Court Judge Michael H. Simon.
Jimenez was in pre-trial custody on an unrelated felon in possession of a firearm charge when he was indicted in this case. He will remain in custody and make his first appearance on these new charges at a later date.
This case was investigated by the FBI, Oregon State Police, and Oregon Department of Corrections Office of Inspector General, and is being prosecuted by Craig Gabriel and Scott Bradford, Assistant U.S. Attorneys for the District of Oregon.
An indictment is only an accusation of a crime, and defendants are presumed innocent unless and until proven guilty.
Oklahoma Man Sentenced for Passing Counterfeit United States CurrencyRead the Press Release
United States Attorney Ron Parsons announced that an Oklahoma City, Oklahoma, man convicted of Passing Counterfeit United States Currency was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Michael Ogden, age 38, was sentenced on December 18, 2019, to 41 months in federal prison, followed by 3 years of supervised released, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Michael Ogden was indicted by a federal grand jury in March 2018, together with Mary Autry and Marcus Franklin. The charges relate to the trio using printers, paper, and chemicals to convert legitimate $10 U.S. currency bills into counterfeit $100 U.S. currency bills. Using this equipment, they manufactured and passed thousands of dollars of counterfeit U.S. $100 bills in South Dakota and other states.
The investigation was conducted by the Rapid City Police Department and the U.S. Secret Service. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Ogden was immediately turned over to the custody of the U.S. Marshals Service. Autry and Franklin are awaiting sentencing.
Northern Hills Drug Traffickers SentencedRead the Press Release
United States Attorney Ron Parsons announced that a Spearfish, South Dakota, man and woman convicted of Conspiracy to Distribute a Controlled Substance, were recently sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Enrique Estrada, Jr., a/k/a Ricky Estrada, age 43, was sentenced on December 5, 2019, to 20 years in federal prison, followed by 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Kari Lee Vaughn, a/k/a/ Kari Drury, age 35, was sentenced on December 18, 2019, to 15 years in federal prison, followed by 10 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Estrada and Vaughn were indicted by a federal grand jury in September 2018. The charge relates to Estrada, Vaughn, and others distributing multiple pounds of methamphetamine in western South Dakota, primarily in the Northern Hills, between October 2017 and September 2018. Estrada coordinated several co-conspirators to obtain methamphetamine from the state of Colorado, then transport it to South Dakota and distribute it. Vaughn wired money for Estrada and traveled to Colorado, to assist in obtaining the methamphetamine. She further distributed the methamphetamine for Estrada, as well. Much of the methamphetamine was distributed out of Estrada’s home in Spearfish.
This investigation was led by the South Dakota Division of Criminal Investigation with the assistance from the Deadwood Police Department, Spearfish Police Department, Belle Fourche Police Department, South Dakota Highway Patrol, Lawrence County Sheriff’s Office, Butte County Sheriff’s Office, and members from the Unified Narcotics Enforcement Team (UNET). Additional arrests were also made at the State and Federal level in connection to this investigation. The case was prosecuted by Gina S. Nelson, Assistant U.S. Attorney.
Estrada and Vaughn were immediately turned over to the custody of the U.S. Marshals Service.
Natick Man Charged with Fentanyl and Methamphetamine TraffickingRead the Press Release
BOSTON – A Natick man has been indicted by a federal jury in Boston in connection with drug trafficking activities involving fentanyl.
Rafael Ashworth, 27, was indicted on Dec. 18, 2019, on one count of possession with intent to distribute 40 grams or more of fentanyl and 50 grams or more of methamphetamine. Ashworth was arrested by state authorities on Nov. 17, 2019, and charged by federal criminal complaint on Nov. 21, 2019. He is currently in federal custody.
According to court documents, after responding to a report of an overdose death at Ashworth’s apartment, police found Ashworth with approximately 100 grams of a substance containing both fentanyl and methamphetamine along with other paraphernalia associated with drug packaging and distribution. Police also found a deceased woman in the apartment, who is believed to have died from a fentanyl overdose.
The charge of possession with intent to distribute more than 40 grams of fentanyl and 50 grams or more of methamphetamine carries a mandatory minimum sentence of five years and up to 40 year in prison, at least four years of supervised release, and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division, made the announcement. Special assistance was provided by the Natick Police Department and the Massachusetts State Police. Assistant U.S. Attorneys Leah Foley and Stephen Hassink of Lelling’s Narcotics and Money Laundering Unit are prosecuting the case
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Miami Man Sentenced to More Than 5 Years in Prison for Role as Money Mule and Mule Recruiter in International Cybercrime Money Laundering NetworkRead the Press Release
Yamel Guevara Tamayo, 36, of Miami, was sentenced Friday, December 20, 2019 to 63 months in prison for his role in serving as a money mule, and recruiter of more than 15 additional money mules, in an international money laundering operation for business email compromise (BEC) and other cyber-schemes.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, made the announcement.
Tamayo previously pled guilty before U.S. District Judge Ursula Ungaro to conspiracy to commit money laundering. In addition to the prison sentence, U.S. District Judge Ursula Ungaro ordered Tamayo to serve three years of supervised release and pay $700,474.97 in restitution.
According to the court record, from November 2016 through June 2019, Tamayo, together with co-conspirators Roda Taher a/k/a “Rezi,” and others participated in a scheme to help steal more than $1.5 million dollars from individual and corporate victims, which proceeds were later laundered. The scheme involved recruiting “money mules,” including Tamayo, who allowed their respective names and personal identifying information to be used by co-conspirators to incorporate a sham business through the Florida Department of State, Division of Corporations, under such mule’s name. As part of the scheme, a mule would then open bank accounts at multiple banks in the name of his or her shell company. Several mules, including Tamayo, later recruited and managed new money mules. To date, more than 200 money mules and money mule recruiters have been identified as part of this international money laundering network.
A related cyberattack aspect of the scheme involved the creation, by co-conspirators, of email addresses that mimicked, but differed slightly from, legitimate email addresses of supervisory employees at various companies. The conspirators used these deceptive email addresses to send emails that appeared to be requests for payment of legitimate invoices or debts owed by the victims. The victims were deceived into transferring funds by wire into the bank accounts opened by the money mules and controlled by Tamayo and the co-conspirators. After the victims complied with the fraudulent wiring instructions, Tamayo, under the direction of other conspirators, quickly debited thousands of dollars from the accounts through in-person withdrawals, ATM withdrawals, and debit card purchases. Tamayo and co-conspirators also rapidly transferred victims’ funds to foreign bank accounts that co-conspirators controlled as soon as the funds came in. Tamayo and other co-conspirators kept a fraction of the proceeds as payment after doing so.
Tamayo’s role expanded over time. He ultimately recruited more than fifteen individuals to participate as mules in the money laundering scheme, serving as their manager and directing them to open new accounts. His involvement in the scheme lasted until in or around June 2019. In total, Tamayo and his mules intended to launder more than $1.4 million dollars, and succeeded in laundering more than $700,000 before banks were able to freeze and claw back some of the funds due to suspected fraud.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI and USSS in this matter. This case is being prosecuted by Assistant U.S. Attorney Lisa H. Miller.
In related cases in this District, more than thirty members of the money laundering network have been prosecuted and convicted. See United States v. Roda Taher, et al., 17-cr-60223-UU; United States v. Luis Pujols, et al., 17-cr-20702-JEM; United States v. Cynthia Rodriguez, et al., 17-cr-20748-JEM; United States v. Eliot Pereira, et al., 18-cr-20170-MGC; and United States v. Gustavo Gomez, et al., 18-CR-20415-UU; and United States v. Alfredo Veloso, et al., 18-20759-CR-KMW. Assistant U.S. Attorneys Dwayne E. Williams and Lisa H. Miller prosecuted those cases.
The Justice Department’s efforts to confront the growing threat of cyber-enabled financial fraud led to the formation of the BEC Counteraction Group (BCG), which assists U.S. Attorney’s Offices and the Department with the coordination of BEC cases and the centralization of related expertise. The BCG facilitates communication and coordination between federal prosecutors, serves as a bridge between federal prosecutors and federal agents, centralizes and manages institutional knowledge and training, and participates in efforts to educate the public about protecting themselves and their organizations from BEC scams.
The BCG draws upon the expertise of the following sections within the Department’s Criminal Division: the Computer Crime and Intellectual Property Section, which regularly investigates and prosecutes cases involving computer crimes, including network intrusions; the Fraud Section, which manages complex litigation involving sophisticated fraud schemes; the Money Laundering and Asset Recovery Section, which brings experience in seizing assets obtained through criminal activity; the Office of International Affairs, which plays a central role in securing international evidence and extradition; and the Organized Crime and Gang Section, which contributes strategic guidance in prosecuting complex transnational criminal cases.
This case was part of the Department of Justice’s Operation reWired, which followed “Operation Wire Wire,” the first coordinated enforcement action targeting hundreds of BEC scammers. That effort, announced in June 2018, resulted in the arrest of 74 individuals, the seizure of nearly $2.4 million, and the disruption and recovery of approximately $14 million in fraudulent wire transfers.
Victims are encouraged to file a complaint online with the IC3 at bec.ic3.gov. The IC3 staff reviews complaints, looking for patterns or other indicators of significant criminal activity, and refers investigative packages of complaints to the appropriate law enforcement authorities in a particular city or region. The FBI provides a variety of resources relating to BEC through the IC3, which can be reached at www.ic3.gov. For more information on BEC scams, visit: https://www.ic3.gov/media/2019/190910.aspx.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Metairie Woman Pleads Guilty to Obtaining Oxycodone by FraudRead the Press Release
NEW ORLEANS - U.S. Attorney Peter G. Strasser announced that BENNIE RUTH HARRIS, age 64, a resident of Metairie, Louisiana pled guilty on December 18, 2019 to obtaining oxycodone, a Schedule II controlled substance, by fraud.
According to court documents, on August 7, 2017, HARRIS filled a fictitious prescription for oxycodone and took possession of the oxycodone pills. The prescription was created using a stolen prescription template from an area physician. HARRIS faces up to 4 years’ imprisonment, a fine of up to $250,000, and up to one year of supervised release. Sentencing was scheduled for April 15, 2020 at 2:00 p.m. before U.S. District Court Judge Lance M. Africk.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation, the Drug Enforcement Administration, the Department of Health and Human Services, and the Jefferson Parish Sheriff’s Office for their work investigating the case.
The case is being prosecuted by Jared Hasten of the Criminal Division’s Fraud Section and Assistant United States Attorney Myles Ranier.
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Manhattan U.S. Attorney Announces Agreement with Related Companies to Increase Accessibility of the Vessel in Hudson YardsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Eric Dreiband, Assistant Attorney General for the Department of Justice Civil Rights Division, announced today that Related Companies L.P. (“Related”) and ERY Vessel LLC have agreed to install a one-of-a-kind platform lift mechanism on the upper levels of the Vessel, a new public attraction in Hudson Yards, to increase the Vessel’s accessibility for individuals with disabilities. Under the agreement, Related has agreed to design, construct, install, and operate a platform lift mechanism that will allow individuals with disabilities to traverse the stairways and platforms at the top levels of the Vessel so as to enjoy 360-degree views, providing access to the most traveled areas of the Vessel that are also currently inaccessible to individuals with disabilities.
The United States contends that as constructed, the Vessel, a multi-story, open air structure composed of eighty (80) platforms connected by stairways, is inaccessible to individuals with disabilities in violation of the Americans with Disabilities Act of 1990. Related has described the Vessel as the centerpiece of the new Hudson Yards development in Manhattan, and as a “public landmark” that “will lift the public up, offering a multitude of ways to engage with and experience New York, Hudson Yards and each other.” But the Vessel’s current design allows individuals with disabilities to access at most only three (3) of the 80 platforms, all on one side of the structure, as the sole elevator reaches three platforms and visitors must otherwise traverse stairs to move among the platforms. Due to the high demand for the elevator, Related has at times directed that the elevator bypass the platforms at levels 5 and 7, thereby rendering only one platform (at level 8) accessible to individuals with disabilities.
Manhattan U.S. Attorney Geoffrey S. Berman said: “We are pleased that Related has designed an innovative solution to increase accessibility to the Vessel. Related has agreed to commit substantial resources to install a platform lift that will allow individuals with disabilities to enjoy 360-degree views from the Vessel’s top level.”
Assistant Attorney General Eric Dreiband said: “As we approach the ADA’s 30th Anniversary, it is vital that individuals with disabilities have access to major new tourist attractions in our cities. I am pleased that Related is taking steps to increase accessibility of the Vessel.”
The agreement also requires Related to ensure that the elevator stops at levels 5 and 7 upon request, to operate the elevator on a pre-set, timed schedule, and to modify the Vessel’s ticketing reservation options to allow individuals with disabilities to reserve priority access to the elevator.
This case is being handled by the Office’s Civil Rights Unit. Assistant U.S. Attorney Ellen Blain is in charge of the case.