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Wednesday 13 November 2019
Six Passaic County Residents Charged in $27 Million Money Laundering ConspiracyRead the Press Release
NEWARK, N.J. – Six Passaic County, New Jersey, residents were charged today for their roles in a large-scale money laundering and illegal money transmitting scheme, U.S. Attorney Craig Carpenito announced.
The defendants are each charged by complaint with one count of conspiracy to launder drug proceeds and one count of operating an unlicensed money transmitting business:
• Felicia Almonte, 54, Passaic, New Jersey
• Erickson Checo-Almonte, 29, Passaic
• Julio De La Cruz-Acosta, 40, Paterson, New Jersey
• Willy Cruz-Bonilla, 22, Paterson
• Jordano Abreu-Diaz, 24, Paterson
• Enmanuel Nunez-Reyes, 26, PatersonAll defendants except Abreu-Diaz are scheduled to make their initial appearances this afternoon before U.S. Magistrate Judge James B. Clark in Newark federal court. Abreu-Diaz is expected to appear before Judge Clark later this week.
According to documents filed in this case and statements made in court:
The defendants were part of a large-scale money laundering conspiracy that used the U.S. banking system to convert over $27 million in cash from illegal drug sales in New Jersey and New York into cashier’s checks.
Between July 2016 and January 2019, the defendants and other conspirators purchased over 1,000 cashier’s checks, which were used as a mechanism to transfer drug proceeds out of the United States. The checks were made payable to individuals and companies specified by money brokers working on behalf of drug trafficking organizations with ties to the Dominican Republic, Colombia, and elsewhere.
The cashier’s check scheme was designed to conceal the nature, source, ownership, and control of the illegal drug proceeds in order to avoid scrutiny by law enforcement and banking institutions. The defendants were typically paid a fee of $150 to $200 for each check they purchased.
The charge of money laundering carries a maximum penalty of 20 years in prison and a fine of $500,000 or twice the amount involved in the offense, whichever is greater. The charge of operating an unlicensed money transmitting business carries a maximum prison sentence of five years and a $250,000 fine.U.S. Attorney Carpenito credited special agents of the U.S. Drug Enforcement Administration, New Jersey Division, under the direction of Special Agent in Charge Susan A. Gibson; special agents and task force officers of IRS - Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur; and the Morristown, New Jersey, police department, under the direction of Acting Police Chief Darnell Richardson with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Jonathan M. Peck of the Criminal Division in Newark.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.Scioto County doctor sentenced to 7 years in prison for role in pill millRead the Press Release
CINCINNATI – The owner and physician at Unique Pain Management in Wheelersburg, Ohio, was sentenced in U.S. District Court to serve 84 months in prison.
Margaret Temponeras, 55, of Portsmouth, Ohio, was sentenced for conspiring to distribute a controlled substance through the pain clinic and dispensary.
According to court documents, from June 2005 until May 2011, Temponeras and her father – John Temponeras, 84, who was also a doctor at the clinic – saw more than 20 patients per day, who paid cash payments starting at $200 for each medical examination. Many patients received monthly prescriptions for similar combinations of medications, namely, 120-150 pills of 15mg Oxycodone, 120-150 pills of 30mg Oxycodone and 90 pills of 2mg Xanax.
Patients were referred to Raymond Fankell, 64, of Wheelersburg, Ohio, who owned Prime Pharmacy, to fill their prescriptions.
Temponeras became aware that some pharmacies in the Scioto County area had declined to accept or fill her prescriptions from Unique Pain Management so she opened the dispensary Unique Relief LLC from the same location as her clinic in order to fill her own prescriptions.
John Temponeras and Fankell have also pleaded guilty. John Temponeras pleaded guilty to conspiring to distribute controlled substances and and Fankell to conspiring to distribute Oxycodone. They have yet to be sentenced.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Keith Martin, Special Agent in Charge, Drug Enforcement Administration (DEA); Joseph M. Deters, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Steven W. Schierholt, Executive Director, Ohio State Board of Pharmacy, announced the sentence imposed yesterday afternoon by U.S. District Judge Timothy S. Black. Assistant United States Attorneys Timothy D. Oakley and Timothy S. Mangan are representing the United States in this case.
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Saratoga Springs Man Sentenced to 88 Months for Receiving Child PornographyRead the Press Release
ALBANY, NEW YORK – Kyle Caton, age 31, of Saratoga Springs, New York, was sentenced today to 88 months in prison for receiving child pornography.
The announcement was made by United States Attorney Grant C. Jaquith and Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
As part of his guilty plea, Caton admitted that his offense involved more than 600 images depicting the sexual exploitation of children, including images of prepubescent children, toddlers, and images depicting sadistic or masochistic conduct. Caton also admitted to purchasing child pornography from an encrypted web site that is not accessible via ordinary online search engines.
Senior United States District Judge Thomas J. McAvoy also imposed a 15-year term of supervised release, which will begin after Caton is released from prison, and ordered him to pay $12,000 in restitution to child pornography victims. Caton will be required to register as a sex offender as a result of his conviction.
Caton was enlisted in the United States Navy prior to his arrest, and was discharged because of his crimes.
This case was investigated by HSI and prosecuted by Assistant United States Attorney Shira Hoffman as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal 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 https://www.justice.gov/psc.
Rochester Man Indicted in Violent CarjackingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned a five count indictment charging Jacob Loyd, 19, of Rochester, NY, with carjacking, possession of a firearm in furtherance of a crime of violence, possession with intent to distribute cocaine, possession of a firearm in furtherance of a drug trafficking crime, and possession of marijuana. The charges carry a maximum penalty of life in prison and a $250,000 fine.
Assistant U.S. Attorney Cassie Kocher, who is handling the case, stated that according to the indictment, on June 16, 2019, the defendant stole a vehicle at gunpoint in the area of 115 Gothic Street in Rochester. Later that evening, Loyd was arrested near 1454 North Street and found to be in possession of a loaded firearm, a quantity of cocaine packaged for sale, and marijuana.
The defendant was arraigned today before U.S. Magistrate Judge Marian W. Payson and detained.
The case was brought by the U.S. Attorney’s Office as part of its Project Safe Neighborhoods (PSN) initiative. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The indictment is the result of an investigation by the Rochester Police Department, under the direction of Chief La’Ron Singletary, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Rochester Man Convicted by A Federal Jury of Cocaine Conspiracy Going to Prison for 25 YearsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a Richard Lucas, 34, of Williamsville, NY, who was convicted following a jury trial of conspiring to possess with intent to distribute, and distributing 500 grams or more of cocaine, was sentenced to serve 25 years in prison by U.S. District Judge Elizabeth A. Wolford. The defendant was also fined $60,000 and will forfeit approximately $30,000.
Assistant U.S. Attorneys Timothy C. Lynch and Emmanuel O. Ulubiyo, who handled the prosecution of the case, stated that on May 15, 2017, investigators had search warrants for co-defendant Dominic Daniels and his vehicle. On that day, investigators were conducting surveillance and saw Daniels leave the Comfort Suites, in Cheektowaga, NY, with a blue bag and get into a white pick-up truck. After investigators observed Daniels meet with an individual on James Street in Buffalo, and engage in what appeared to be a narcotics transaction, Daniel’s vehicle was stopped and was searched. The search revealed approximately 744 grams of cocaine, a hotel key for a room rented by the defendant at the Comfort Suites, and approximately $16,000 in United States currency.
During a subsequent search of the hotel room rented by defendant, investigators seized approximately $33,000. Following Daniels’s arrest, Lucas arrived at the Comfort Suites, driving a 2017 Chevrolet Corvette. When he was approached by Erie County Sheriff’s deputies, he refused to comply with commands, resisted arrest, and then led one of the deputies on a chase through several parking lots, where he tried to carjack three vehicles. The defendant was eventually taken into custody at the intersection of the Kensington Expressway and Genesee Street by a Sheriff’s deputy and federal law enforcement officers. At the time of his arrest, Lucas was in the possession of nearly $70,000 in jewelry. Evidence presented by the Government at trial established that the defendant was obtaining cocaine from Houston and distributing it to customers in the Buffalo area.
Co-defendant Dominic Daniels was previously convicted and sentenced to serve five years in prison.
The sentencing is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan; the Federal Bureau of Investigation, under the direction Special Agent-in-Charge Gary Loeffert; and the New York State Police, under the direction Major Edward Kennedy.
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Rapid City Man Charged with Aggravated Sexual Abuse of a MinorRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse of a Minor.
Anthony Cory Plante, age 20, was indicted on July 16, 2019. He appeared before U.S. Magistrate Judge William D. Gerdes on November 7, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $250,000 fine, 5 years up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between January 2017 and February 2017, in McLaughlin, South Dakota, Plante knowingly engaged in, and attempted to engage in, a sexual act by use of force with a minor who had attained the age of 12 but had not attained the age of 16, and who was at least 4 years younger than Plante.
The charge is merely an accusation and Plante is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Kirsten Jasper is prosecuting the case.
Plante was released on bond pending trial. A trial date has not been set.
Putnam County Man Sentenced for Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – A Hurricane man was sentenced for a federal firearm offense, announced United States Attorney Mike Stuart. Johnny Ray Thacker, 63, was sentenced by United States District Judge Joseph R. Goodwin to 60 months in prison for carrying a firearm during a drug trafficking crime. Stuart commended the investigation conducted by the Charleston Police Department, the Dunbar Police Department, the Kanawha County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
“Thacker was a gun-toting drug dealer peddling meth and heroin with two previous felonies,” said United States Attorney Mike Stuart. “Drug trafficking is a violent business. When we catch drug dealers carrying guns in furtherance of their drug trafficking business, we will prosecute them for it every single time.”
Thacker previously admitted that on July 3, 2018, a Charleston Police Officer stopped him for speeding 24 miles per hour over the speed limit on Sissonville Drive. Thacker told the officer he had a gun on the passenger seat, which the officer temporarily secured for their safety. Thacker was a two-time felon, whose rights to possess a firearm had not been restored. While retrieving Thacker’s gun, the officer spotted marijuana scattered on it. Officers then searched Thacker’s vehicle and recovered several grams of methamphetamine and heroin, baggies for drug packaging, and a scale.
Thacker further admitted that on September 3, 2018, police officers were called to Dunbar Memorial Park regarding suspected drug trafficking out of a lime green colored vehicle. Officers spotted Thacker parked in a lime green car. After a specially-trained police dog detected the odor of drugs coming from Thacker’s car, police searched it and found approximately 4.5 grams of methamphetamine, baggies, a scale, a baggie of powdered sugar for cutting drugs, and a ledger documenting drug debts and sales. Thacker claimed the drugs.
Assistant United States Attorney Kristin Scott and former Assistant United States Attorney Drew O. Inman handled the prosecution.
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Plover Man Sentenced to 7 Years for Distributing MethamphetamineRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Corey Scheerenberger, 36, Plover, Wisconsin, was sentenced today by U.S. District Judge James D. Peterson to seven years in federal prison for possessing methamphetamine with intent to distribute. He pleaded guilty to this offense on August 15, 2019.
On September 27, 2018, law enforcement agents executed a search warrant at Scheerenberger’s residence. Throughout the property, agents found approximately 240 grams of methamphetamine, five firearms, a large quantity of cash, drug packaging materials and paraphernalia, and other illegal drugs. Further investigation revealed that Scheerenberger’s methamphetamine distribution involved at least 680 grams of methamphetamine. Scheerenberger admitted to selling methamphetamine in the Plover community for the past few years.
At the time of his arrest, Scheerenberger was on probation out of California for possessing a controlled substance and also in Wisconsin for disorderly conduct. His criminal history dates back to 2001 with several drug-related convictions.
During sentencing, Judge Peterson noted that Scheerenberger was dealing methamphetamine in quantities indicative of a “drug lifestyle” while serving a probationary sentence.
The charge against Scheerenberger was the result of an investigation conducted by the Central Wisconsin Drug Task Force, the Portage County Sheriff’s Office, and the Plover and Stevens Point Police Departments. The prosecution of the case was handled by United States Attorney Scott C. Blader and Assistant U.S. Attorney Diane Schlipper.
Owner of Local Technical Training School Pleads Guilty to Defrauding Department of Veterans Affairs of $29 Million in Education BenefitsRead the Press Release
Assistant U. S. Attorney Michelle L. Wasserman (619) 546-8431
NEWS RELEASE SUMMARY – November 13, 2019
SAN DIEGO – Nimesh Shah, owner of Blue Star Learning, a technical training school located in San Diego, pleaded guilty today to defrauding the Department of Veterans Affairs out of more than $29 million in Post-9/11 G.I. Bill benefits.
The Post-9/11 G.I. Bill provides veterans and other eligible individuals with assistance for education-related expenses such as tuition and housing. The VA pays tuition and fees directly to the school where the veteran is enrolled, and if the veteran is enrolled on more than a half-time basis, the VA additionally provides a monthly housing allowance directly to the veteran, as well as money for books, supplies, equipment and other expenses.
In order to receive and maintain approval to receive funds from the VA under the Post 9/11 G.I. Bill, Blue Star Learning was required to have at least 15% non-veterans for each course for which the VA was paying educational benefits under the Post-9/11 G.I. Bill, a rule called the “85/15 Rule.” Blue Star Learning was forbidden to engage in any erroneous or misleading advertising.
According to Shah’s plea agreement, from March 2016 to June 2019, he devised a scheme to defraud the VA with regards to Post 9/11 G.I. Bill benefits. Specifically, although Shah knew that close to 100 percent of students at Blue Star Learning were veterans receiving VA educational assistance, Shah repeatedly misrepresented to the California State Approving Agency for Veterans Education (CSAAVE) and the VA that Blue Star Learning was in compliance with the 85/15 Rule. In order to deceive CSAAVE and the VA, Shah created, and directed at least three other employees at Blue Star Learning to create, fake student files for the purported non-veterans in each program. Shah additionally emailed the VA 48 fraudulent enrollment agreements for fictitious people he represented were non-veteran students at Blue Star Learning, complete with fraudulent dates of birth, social security numbers, addresses, phone numbers and emails for each fraudulent non-veteran student.
Blue Star Learning additionally had to provide vocational attainment data to CSAAVE on a yearly basis, as part of a required yearly approval process. According to Shah’s plea agreement, Shah knew that the vast majority of Blue Star Learning graduates did not obtain jobs in the fields in which they were purportedly receiving training, and that the employment statistics on Blue Star Learning’s website were fraudulent.
Shah nonetheless submitted fraudulent spreadsheets to CSAAVE claiming that all of the Blue Star Learning students listed were employed in the informational technology field. On these spreadsheets, Shah provided fraudulent phone numbers, email addresses, employers, and employer contact information for each student. Shah hired individuals to create the fraudulent email addresses for the Blue Star Learning students, and directed these individuals to answer emails received at the fraudulent email addresses pretending to be satisfied Blue Star Learning graduates working in the information technology field. Shah additionally created 30 fictitious companies that he listed as the employers on the fraudulent spreadsheets, and hired individuals to create fraudulent email addresses and domain names for each fictitious company. Shah directed a Blue Star Learning employee to purchase 30 cellular telephones, one for each fictitious employer, and had employees of Blue Star Learning create voicemails on each cellular telephone so that it would appear that the fraudulent businesses were legitimate if CSAAVE called to check.
“These funds were meant to provide educational benefits to veterans who served our country, not line the pockets of unscrupulous opportunists,” said U.S. Attorney Robert Brewer. “This defendant crafted an elaborate scheme to fleece the government and taxpayers, but this case put a stop to this significant fraud.” Brewer thanked prosecutor Michelle Wasserman and federal agents for excellent work on this case.
As a result of Shah’s fraud, the VA issued over $11 million in tuition payments to Blue Star Learning, and over $18 million in housing allowances and stipends. In total, the VA lost $29,350,999. Shah’s wife, Nidhi Shah, pleaded guilty at the same time to one count of False Statement, as a result of lies she told to agents at the time of her interview.
DEFENDANT Case Number 19CR4551-JAH; 19CR4550-JAH
Nimesh Shah Age: 36 San Diego, CA
Nidhi Shah Age: 34 San Diego, CA
SUMMARY OF CHARGES
Nimesh Shah: Wire Fraud – Title 18, U.S.C., Section 1343
Maximum penalty: Twenty years’ imprisonment and $250,000 fine
Nidhi Shah: False Statement – Title 18 U.S.C., Section 1001
Maximum penalty: Five years’ imprisonment, and $250,000 fine
AGENCY
Department of Veterans Affairs Office of Inspector General
Federal Bureau of Investigation
Owner of Detroit-Area Health Care Clinics Pleads Guilty to Drug Diversion SchemeRead the Press Release
The owner of a Detroit, Michigan-area physical therapy clinic pleaded guilty today for his role in a drug diversion scheme.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Keith Martin of the U.S. Drug Enforcement Administration (DEA)’s Detroit Division and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office made the announcement.
Malik Fuqua, 49, of Southfield, Michigan, pleaded guilty to one count of conspiracy to distribute controlled substances before U.S. District Judge David Lawson of the Eastern District of Michigan. Sentencing has been scheduled for Feb. 26, 2020, before Judge Lawson.
Fuqua was the owner and operator of 1st Priority Physical Therapy of [Southfield], Michigan, and also assisted in the day-to-day operations of Abyssinia Love Knot Physical Therapy LLC of Southfield, Michigan, which was purportedly a pain management and physical therapy clinic. As part of his guilty plea, Fuqua admitted that he conspired with others to unlawfully distribute controlled substances and that he oversaw physicians who would write medically unnecessary prescriptions for controlled substances, such as oxycodone and oxymorphone. Fuqua admittedly facilitated patient visits with doctors, and accepted payment from patients and patient recruiters/marketers in exchange for physician visits at which he knew that prescriptions for medically unnecessary controlled substances would be provided. Medicare beneficiaries were required to sign physical therapy documents as a condition to receive prescriptions for controlled substances, regardless of medical necessity, Fuqua admitted.
The total drug amount attributable to Fuqua is in excess of 500,000 oxycodone pills, he admitted.
The DEA and HHS-OIG investigated the case. Trial Attorney Patrick Suter and Assistant Chief Malisa Dubal of the Criminal Division’s Fraud Section are prosecuting the case. The case was previously prosecuted by Assistant Chief Drew Bradylyons and Trial Attorney Thomas Tynan of the Fraud Section.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Operator of Westchester Waste Disposal Business Pleads Guilty to Fraudulent Overbilling SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that RALPH MANCINI, the owner and operator of County Waste Management, a waste disposal business based in Harrison, New York, pled guilty today to mail fraud before U.S. Magistrate Judge Lisa Margaret Smith. MANCINI admitted as part of his plea that he had defrauded numerous commercial customers by overbilling them for the waste collected and dumped on their behalf.
U.S. Attorney Geoffrey S. Berman said: “For more than eight years, Ralph Mancini, the owner and operator of County Waste Management, illegally overbilled local businesses that contracted with him to do their waste disposal. Mancini has now pled guilty to hauling in over $800,000 from his victims, and faces serious time in prison.”
According to the Information, other court documents, and statements made in Court, from in or about 2008 through 2016, MANCINI overbilled a total of approximately 17 commercial customers, including educational institutions, department stores, grocery stores, and other establishments, by more than $800,000. MANCINI sent the fraudulent invoices by U.S. mail, which fabricated the tonnage of waste collected and thereby charged customers for waste services that had not actually been performed.
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MANCINI, age 57, of Harrison, pleaded guilty to one count of mail fraud, which carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
MANCINI is scheduled to be sentenced by U.S. District Judge Nelson S. Román on February 14, 2020, at 11:00 a.m.
Mr. Berman praised the investigative work of the Federal Bureau of Investigation. He also thanked the Westchester County Department of Public Safety and the Westchester County Solid Waste Commission for their assistance in the investigation.
This case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys Daniel Loss is in charge of the prosecution.
Ontario Man Pleads Guilty to Harboring an Illegal AlienRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Jason O. Garcia, 42, of Von, Ontario, pleaded guilty before Senior U.S. District Judge William M. Skretny to harboring an illegal alien. The charges carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney Meghan A. Tokash, who is handling the case, stated that on August 5, 2019, the defendant attempted to enter the United States in a commercial truck at the Lewiston Bridge Port of Entry. When asked if anyone else was present in the truck, Garcia stated “no.”
Following a primary inspection, the truck was to the Vehicle and Cargo Inspection System for a scan. As the defendant appeared headed toward the scanning area, Garcia instead drove the truck in front of a warehouse. A second individual got out of the truck and walk directly into the entrance of the warehouse. The truck then turned around in the parking lot and headed towards the scanning area. Customs and Border Protection Officers located the individual in the hallway of the warehouse. The individual had a Chilean passport concealed in his pants. A records check determined the individual was refused entry into the United States, while seeking entry to the United States, under the Visa Waiver Program, for failing to disclose a previous arrest in Chile.
The plea is the result of an investigation by Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy.
Sentencing is scheduled for March 20, 2020, at 9:00 a.m. before Judge Skretny.
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Oneonta Man Admits Failing to Update Sex Offender RegistrationRead the Press Release
ALBANY, NEW YORK – Mark King, age 25, of Oneonta, New York, pled guilty yesterday to failing to update his sex offender registration, announced United States Attorney Grant C. Jaquith and United States Marshal David L. McNulty.
King pled guilty to violating the federal Sex Offender Registration and Notification Act (“SORNA”), which requires a convicted sex offender to register, and keep that registration current, wherever he or she resides. King admitted that he was previously convicted of attempted sexual abuse of a minor in Alaska, which required him to register as a sex offender for the rest of his life. King further admitted that he moved from Alaska to New York, sometime after he completed serving a 6-month term of incarceration that concluded on July 17, 2018. Since then, King admitted, he has failed to register as a sex offender in New York or update his registration to reflect his valid address and place of residence.
King faces up to 10 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of at least 5 years and up to life, when he is sentenced on March 11, 2020 by United States District Judge Mae A. D’Agostino. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
The case was investigated by the United States Marshals Service, and was prosecuted by Assistant United States Attorney Sahar L. Amandolare.
This case was prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is 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 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 https://www.justice.gov/psc.
One sent to prison for jewelry store robbery while other remains a fugitiveRead the Press Release
CORPUS CHRISTI, Texas – A 25-year-old resident of Corpus Christi has been ordered to federal prison following his conviction of robbery, brandishing a firearm in furtherance of a crime of violence and being a felon in possession of a firearm, announced U.S. Attorney Ryan K. Patrick.
Leonard Reyna entered a guilty plea July 24.
Today, U.S. District Nelva Gonzalez Ramos handed Reyna a 87-month sentence for the robbery and being a felon who had a firearm. He also received an additional 84 months for the brandishing charge which must be served consecutively to the other sentence imposed. The sentences will be immediately followed by five years of supervised release.
At the time of his plea, Reyna admitted he participated in an aggravated robbery at the Corpus Christi Trade Center and another at a Stripes convenience store which involved the shooting of an innocent bystander.
On Aug. 26, 2018, Reyna approached a local jewelry store displaying a handgun and demanded several items of jewelry. After that robbery, he fled on foot and headed to the Stripes location on the 6000 block of Ayers. There, two men pointed a gun at a victim and demanded the keys to his truck. The victim refused and was later found inside the store where reported he had been shot in the left arm and stomach.
Reyna has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
He was originally indicted along with Carlos Moreno, 26, Corpus Christi, who is charged with being involved in both robberies and with discharging a firearm.. Anyone with information about his whereabouts is asked to contact the U.S. Marshals service at 1-800-336-0102. He is considered innocent unless and until convicted through due process of law, but remains a fugitive and a warrant remains outstanding for his arrest
The Corpus Christi Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Lance Watt is prosecuting the case.
Oklahoma Long Haul Trucker Sentenced to 27 Years in PrisonRead the Press Release
SOUTH BEND – Marvin L. Bishop II, age 42, of Seminole, Oklahoma was sentenced before U.S. District Court Judge Jon E. DeGuilio, upon his plea of guilty to production of child pornography, announced U.S. Attorney Kirsch.
Bishop was sentenced to 324 months in prison, 5 years of supervised release, and ordered to pay $14,520 in restitution.
“Children are among the most vulnerable of victims and do not have a voice in the hands of these predators,” said United States Attorney Thomas L. Kirsch, II. “My Office will do everything we can to prosecute and seek lengthy sentences, such as the one today, for individuals who commit crimes against children.”
“Today’s sentence illustrates the commitment the FBI and our law enforcement partners have to protect our children from individuals such as Mr. Bishop who take advantage of their vulnerability,” said Special Agent in Charge Grant Mendenhall, FBI Indianapolis. “We will continue to work to identify and hold accountable those who would sexually exploit and perpetrate this disturbing crime against children who can’t protect themselves.”
According to documents in this case, Mr. Bishop was a long haul trucker. In March of 2019, Mr. Bishop was chatting with an undercover officer about being sexually active with minor females. He streamed a brief video of a minor performing oral sex on him. The undercover officer was able to determine his location, and the FBI was able apprehend him and his victim in Rochester, Indiana within a few hours after the chatting began.
The case was investigated by the FBI with the assistance of the St. Joseph County Police Department and the Rochester, Indiana Police Department. The case was prosecuted by Assistant United States Attorney John M. Maciejczyk.
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Oak Grove Man Pleads Guilty to Distributing Heroin Resulting in Fatal OverdoseRead the Press Release
KANSAS CITY, Mo. – An Oak Grove, Missouri, man pleaded guilty in federal court today to distributing the heroin that resulted in the overdose death of an Arizona man visiting his family in Lee’s Summit, Missouri.
Joshua Austin Leroux, 35, waived his right to a grand jury and pleaded guilty before U.S. Chief District Judge Beth Phillips to an information that charges him with one count of distributing heroin that caused the death of a man identified in court documents as “M.A.C.”
By pleading guilty today, Leroux admitted that he distributed heroin to M.A.C. on Sept. 3, 2017. After M.A.C. acquired the heroin from Leroux, he ingested it at some point on Sept. 3, or the morning of Sept. 4, 2017. The Jackson County Medical Examiner, after conducting an autopsy, declared that the cause of M.A.C.’s death was heroin intoxication.
Under federal statutes, Leroux is subject to a mandatory minimum sentence of 20 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney D. Michael Green. It was investigated by the Drug Enforcement Administration and the Jackson County Drug Task Force.
OATH Corporation CEO Sentenced for Wire, Tax, and Bankruptcy FraudRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. has sentenced David Martin “Marty” Golloher to three years in federal prison for wire fraud, tax fraud, and bankruptcy fraud.
Golloher had pleaded guilty on August 30, 2019.
According to court documents and evidence presented during the sentencing hearing, Golloher was the President and Chief Executive Officer of OATH Corporation, a bullet-manufacturing company based in Brevard County. In that capacity, Golloher recruited individuals to invest significant sums of money in OATH Corporation. He defrauded one investor of nearly $70,000 by embezzling funds intended for corporate use. Golloher defrauded another individual of more than $40,000 by convincing him to purchase the rights to an “exclusive distributorship” that did not actually exist.
In addition, for six quarters in 2015 and 2016, Golloher collected payroll taxes on behalf of OATH Corporation employees, but failed to pay over that tax to the Internal Revenue Service. Golloher also failed to pay over OATH Corporation’s payroll tax obligations, resulting in a total tax loss of more than $458,000.
Eventually, Golloher filed for bankruptcy on behalf of OATH Corporation. During the course of the bankruptcy proceeding, Golloher knowingly made a false declaration, understating the amount of compensation and personal expenses he had received from OATH Corporation. Golloher admitted that he did so with the intent to deceive OATH Corporation’s creditors, the bankruptcy trustee, and the bankruptcy judge.
This case was investigated by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation, and the Orlando Office of the United States Trustee Program. It was prosecuted by Assistant United States Attorney Emily C. L. Chang.
Nicholson Man Pleads Guilty to Being a Felon in Possession of a FirearmRead the Press Release
Gulfport, Miss. – Ronald Christopher Dressner, 41, of Nicholson, pled guilty today before U.S. District Judge Sul Ozerden, to being a convicted felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Kurt Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On May 20, 2019, interdiction officers with the South Mississippi Metro Enforcement Team attempted to initiate a traffic stop on a vehicle driven by Dressner for a stolen tag. When the officer attempted to stop the vehicle, Dressner would not stop, and a pursuit ensued. Dressner eventually stopped his vehicle and a passenger in the vehicle advised officers that she observed Dressner throw a silver and black handgun out of the passenger window. Officers returned to the location and discovered a Smith & Wesson, .40 caliber pistol loaded with five live rounds. When Dressner was interviewed, he ultimately admitted to throwing the firearm out of the window during the pursuit. Dressner had previous felony convictions for possession of a controlled substance in the Circuit Court of Pearl River County for which he was sentenced to serve 16 years in the custody of the Mississippi Department of Corrections.
Dressner will be sentenced by Judge Ozerden on February 21, 2020, at 10:00 a.m. in Gulfport. He faces a maximum penalty of 10 years in prison and a $250,000 fine.
The Jackson County South Mississippi Metro Enforcement Team and The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. It is being prosecuted by Assistant U.S. Attorney Andrea Jones.
New York Man Enters Guilty Plea to Federal Gun ChargeRead the Press Release
CHARLESTON, W.Va. – A New York man pled guilty to a federal firearm charge, announced United States Attorney Mike Stuart. John Maurice James, 42, pled guilty to possession of a firearm in furtherance of a drug trafficking crime.
“James had a gun to protect himself, his stash of oxycodone and his drug money,” said United States Attorney Mike Stuart. “In my District, you can expect to see drug dealers with firearms charged accordingly. Federal gun crimes carry stiff penalties.”
James admitted that in February 2018, members of the Southern Regional Drug and Violent Crime Task Force executed a search warrant at his house in Mercer County. During the search, officers located a small amount of cocaine and approximately 500 oxycodone pills that James intended to distribute. They also found cash and a Ruger LCP, .380 caliber semi-automatic pistol in the same room he had been staying. Defendant admitted that he possessed the firearm to protect himself, the oxycodone pills he possessed, and the cash from prior sales of oxycodone. Defendant further admitted that he had been supplying oxycodone pills to another individual residing in that house with him. He knew that the individual was distributing the drugs for profit.
James faces a mandatory minimum sentence of 5 years and up to life in prison when sentenced on March 16, 2020.
The Southern Regional Drug and Violent Crime Task Force conducted the investigation. Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney Timothy D. Boggess is handling the prosecution.
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New Orleans Man Sentenced for Heroin ConspiracyRead the Press Release
NEW ORLEANS - U.S. Attorney Peter G. Strasser announced that QUINTON RISIN, a/k/a “Quentin Risin,” age 36, of New Orleans, was sentenced today for conspiring to distribute 100 grams or more of heroin. The Honorable Susie Morgan sentenced RISIN to 60 months imprisonment, (4) years of supervised release, and a $100 special assessment.
According to court records, RISIN conspired with codefendant Arthur Johnson and others to distribute heroin throughout the New Orleans area. RISIN had been a customer of Johnson’s. The evidence against RISIN includes numerous intercepted communications, physical surveillance, and witness statements.
U.S. Attorney Strasser praised the work of the FBI’s New Orleans Gang Task Force in investigating this matter. Assistant United States Attorney Brandon S. Long is in charge of the prosecution.
New Jersey Man Sentenced for Illegally Purchasing Tiger Skin RugRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Loren Varga, 62, of Franklin Township, New Jersey, was sentenced to one day of incarceration, two years’ supervised release and a $1,500 fine by United States District Court Judge Anita Brody for illegally purchasing a tiger skin rug, made from an endangered species.
In July 2019, the defendant pleaded guilty to one count of violating the Endangered Species Act and one count of violating the Lacey Act. These charges stemmed from his participation in the commercial purchase of a tiger rug, which he knew was made from an endangered species, and for which he traveled across state lines to receive.
Some years before, the defendant had previously attempted to buy a similarly illegal tiger pelt and was warned by the Unites States Fish and Wildlife Service (USFWS) that to do so was a crime. Apparently undeterred, the defendant again sought one out in 2018. When USFWS discovered the defendant’s intentions, it arranged a sting operation to thwart that effort. That operation led to this prosecution.
“People who make persistent efforts to own these endangered animal pelts are part of the very industry that has led these majestic animals to become endangered,” said U.S. Attorney McSwain. “It is illegal and further, it is unconscionable, that someone would attempt to procure an endangered animal skin not just once, but twice. We take this type of conduct seriously and it will be prosecuted.”
The case was investigated by the United States Fish and Wildlife Service, and is being prosecuted by Assistant United States Attorney Nancy Beam Winter.
New Haven Man Pleads Guilty to Illegal Gun PossessionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ERRIE McCLENDON, also known as “Buck,” 28, of New Haven, pleaded guilty today in Hartford federal court to possession of a firearm by a convicted felon.
According to court documents and statements made in court, McClendon was arrested on May 11, 2019, in New Haven, after he possessed a loaded Ruger, model P85, 9mm pistol with an obliterated serial number. McClendon attempted to discard the firearm and then struggled with the arresting officers, but was eventually subdued and the firearm was immediately recovered.
Prior to May 2019, McClendon had been convicted in state court of felony narcotics and larceny offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
McClendon is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on March 25, 2020, at which time he faces a maximum term of imprisonment of 10 years.
McClendon has been detained since June 19, 2019, when he was arrested on a state probation violation charge.
This matter has been investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Haven Police Department. This case is being prosecuted by Assistant U.S. Attorneys Peter D. Markle and Jocelyn Courtney Kaoutzanis.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
New DOJ Plan Announced to Reduce Gun Violence in Georgia, NationwideRead the Press Release
Macon, Ga.— Today, Attorney General William P. Barr announced the launch of Project Guardian, a new initiative designed to reduce gun violence and enforce federal firearms laws across the country. Project Guardian focuses on investigating, prosecuting and preventing gun crimes. Reducing gun violence and enforcing federal firearms laws have always been among the Department’s highest priorities. In order to develop a new and robust effort to promote and ensure public safety, the Department reviewed and adapted some of the successes of past strategies to curb gun violence. Project Guardian draws on the Department’s earlier achievements, such as the “Triggerlock” program, and it serves as a complementary effort to the success of Project Safe Neighborhoods (PSN). In addition, the initiative emphasizes the importance of using all modern technologies available to law enforcement to promote gun crime intelligence.
“Gun crime remains a pervasive problem in too many communities across America. Today, the Department of Justice is redoubling its commitment to tackling this issue through the launch of Project Guardian,” said Attorney General William P. Barr. “Building on the success of past programs like Triggerlock, Project Guardian will strengthen our efforts to reduce gun violence by allowing the federal government and our state and local partners to better target offenders who use guns in crimes and those who try to buy guns illegally.”
“Our office will use every means available to reduce violent gun crimes in our communities,” said U.S. Attorney Charlie Peeler. “Project Guardian is a welcome fortification of our existing collaboration with local, state and federal law enforcement under Project Safe Neighborhoods to reduce violent crime rates across the Middle District of Georgia.”
“ATF has a long history of strong partnerships in the law enforcement community,” said Acting Director Regina Lombardo. “Make no mistake, the women and men of ATF remain steadfast to our core mission of getting crime guns off of our streets. ATF and U.S. Attorneys nationwide will leverage these partnerships even further through enhanced community outreach initiatives and coordination with local, state, and tribal law enforcement and prosecutors to cut the pipeline of crime guns from those violent individuals who seek to terrorize our communities. Project Guardian will enhance ATF’s Crime Gun Intelligence, to include identifying, investigating and prosecuting those involved in the straw purchases of firearms, lying on federal firearms transaction forms, and those subject to the mental health prohibition of possessing firearms.”
Project Guardian’s implementation is based on five principles:
Coordinated Prosecution. Federal prosecutors and law enforcement will coordinate with state, local and tribal law enforcement and prosecutors to consider potential federal prosecution for new cases involving a defendant who: a) was arrested in possession of a firearm; b) is believed to have used a firearm in committing a crime of violence or drug trafficking crime prosecutable in federal court; or c) is suspected of actively committing violent crime(s) in the community on behalf of a criminal organization.
Enforcing the Background Check System. United States Attorneys, in consultation with the Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in their district, will create new, or review, existing guidelines for intake and prosecution of federal cases involving false statements (including lie-and-try, lie-and-buy, and straw purchasers) made during the acquisition or attempted acquisition of firearms from Federal Firearms Licensees.
Particular emphasis is placed on individuals convicted of violent felonies or misdemeanor crimes of domestic violence, individuals subject to protective orders and individuals who are fugitives where the underlying offense is a felony or misdemeanor crime of domestic violence; individuals suspected of involvement in criminal organizations or of providing firearms to criminal organizations; and individuals involved in repeat denials.
Improved Information Sharing. On a regular basis, and as often as practicable given current technical limitations, ATF will provide to state law enforcement fusion centers a report listing individuals for whom the National Instant Criminal Background Check System (NICS) has issued denials, including the basis for the denial, so that state and local law enforcement can take appropriate steps under their laws.
Coordinated Response to Mental Health Denials. Each United States Attorney will ensure that whenever there is federal case information regarding individuals who are prohibited from possessing a firearm under the mental health prohibition, such information continues to be entered timely and accurately into the United States Attorneys’ Offices’ case-management system for prompt submission to NICS. ATF should engage in additional outreach to state and local law enforcement on how to use this denial information to better assure public safety.
Additionally, United States Attorneys will consult with relevant district stakeholders to assess feasibility of adopting disruption of early engagement programs to address mental-health-prohibited individuals who attempt to acquire a firearm. United States Attorneys should consider, when appropriate, recommending court-ordered mental health treatment for any sentences issued to individuals prohibited based on mental health.
Crime Gun Intelligence Coordination. Federal, state, local and tribal prosecutors and law enforcement will work together to ensure effective use of the ATF’s Crime Gun Intelligence Centers (CGICs), and all related resources, to maximize the use of modern intelligence tools and technology. These tools can greatly enhance the speed and effectiveness in identifying trigger-pullers and finding their guns, but the success depends in large part on state, local and tribal law enforcement partners sharing ballistic evidence and firearm recovery data with the ATF.
Federal law enforcement represents only about 15% of all law enforcement resources nationwide. Therefore, partnerships with state, local and tribal law enforcement and the communities they serve are critical to addressing gun crime. The Department recognizes that sharing information with our state, local, and tribal law enforcement partners at every level will enhance public safety, and provide a greater depth of resources available to address gun crime on a national level. For more information on Project Guardian, see the Attorney General’s memorandum at: https://www.justice.gov/usao-sdca/project-guardian.
Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Narcotics Dealer Charged in Manhattan Federal Court with Fentanyl Overdose DeathRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Raymond P. Donovan, Special Agent in Charge of the New York Office of the Drug Enforcement Administration (“DEA”), Peter C. Fitzhugh, Special Agent in Charge of the New York Office of Homeland Security Investigations (“HSI”), Keith M. Corlett, Superintendent of the New York State Police (“NYSP”), and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced that a grand jury returned an Indictment today charging JEANLUC JOILES with distributing fentanyl that resulted in the death of 29-year-old Rachel Spiteri on or about June 19, 2019, in New York, New York. JOILES and a co-defendant, JAIME ROSARIO JR., are also charged with participating in a conspiracy to traffic methamphetamine, fentanyl, and cocaine, and ROSARIO is charged with possessing firearms in connection with a drug trafficking offense. JOILES and ROSARIO were previously charged by criminal complaints and arrested on October 15, 2019, and October 25, 2019, respectively. Both defendants are detained. The case is assigned to United States District Judge Loretta A. Preska.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, Jeanluc Joiles sold the drugs that killed a young woman. He and co-defendant Jaime Rosario Jr. allegedly conspired to traffic in a variety of potentially lethal drugs, and Rosario allegedly possessed guns in connection with that trafficking. The potential penalties for these alleged crimes befit the seriousness of the allegations.”
DEA Special Agent in Charge Raymond P. Donovan said: “Earlier this month, DEA issued a national alert on counterfeit pill trafficking across America and how fatal overdoses follow its path. Reiterating the warning, counterfeit pills threaten New York because they mimic legitimate prescription medication, but contain unregulated amounts of fentanyl. I applaud the diligent efforts of the law enforcement community to bring justice to victims of drug traffickers and their families.”
HSI Special Agent in Charge Peter C. Fitzhugh said: “As alleged, these two men showed no regard for human life when they allegedly concocted and laced pills with fentanyl, which led to yet another needless death from an overdose. HSI is committed to working with the DEA’s Strike Force and law enforcement partners to ensure that people who allegedly deal these poisons within our communities are arrested and prosecuted for their careless acts.”
According to the allegations in the Indictment, underlying complaints, and information in the public record[1]:
On June 20, 2019, Rachel Spiteri was found dead in her apartment in New York, New York. Following an investigation by the NYPD and DEA, law enforcement agents identified JOILES as the dealer who sold Ms. Spiteri what she believed to be oxycodone pills, but in fact contained fentanyl and acetylfentanyl, a fentanyl analogue. Following Ms. Spiteri’s death, law enforcement officers later purchased additional narcotics from both JOILES and ROSARIO, including fentanyl pills masquerading as oxycodone, and methamphetamine that was sold as cocaine.
On October 16, 2019, law enforcement officers executed a search warrant at ROSARIO’s apartment and found more than 500 grams of methamphetamine and cocaine, as well as four firearms.
* * *
JOILES, 36 of Queens, New York, is charged with conspiracy to traffic in narcotics and with distribution and possession with intent to distribute fentanyl resulting in death. ROSARIO, 42, of Queens, New York, is charged with conspiracy to traffic in narcotics and with possession of firearms in connection with a drug trafficking offense. A chart setting forth the maximum and mandatory minimum penalties for the defendants is set forth below. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the DEA and the NYPD. The charges are the result of an investigation by the New York Strike Force, a crime-fighting unit comprising federal, state, and local law enforcement agencies supported by the Organized Crime Drug Enforcement Task Force (OCDETF) and the New York/New Jersey High Intensity Drug Trafficking Area (HIDTA).
The Strike Force is housed at the DEA’s New York Division and includes agents and officers of the DEA, the NYPD, the New York State Police, Immigration and Customs Enforcement – Homeland Security Investigations, the U. S. Internal Revenue Service Criminal Investigation Division, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, U.S. Customs and Border Protection, U.S. Secret Service, the U.S. Marshals Service, New York National Guard, the Clarkstown Police Department, U.S. Coast Guard, Port Washington Police Department, and New York State Department of Corrections and Community Supervision.
This case is being handled by the Office’s Narcotics Unit. Assistant United States Attorney Daniel G. Nessim is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Count
Defendant(s)
Maximum Penalties
Conspiracy to distribute narcotics
JEANLUC JOILES
JAIME ROSARIO JR.
Life; mandatory minimum term of 10 years in prison
Distribution of Fentanyl Resulting in Death
JEANLUC JOILES
Life; mandatory minimum term of 20 years in prison
Firearms Offense
JAIME ROSARIO JR.
Life; consecutive mandatory minimum term of five years in prison
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and Complaints, and the description of the Indictment and Complaints set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Monterey County Doctor and Four Others Charged in Alleged Scheme to Distribute Opioids Outside Scope of Legitimate Medical PracticeRead the Press Release
SAN JOSE– A federal grand jury has indicted Monterey County doctor Deane Leo Crow, as well as Diane Lynn Crow, Erik Samuel Gonzales, Brittney Lynn Cardona, and Joe Anthony Bernal, for their respective roles in conspiracies to acquire and distribute oxycodone and hydrocodone, Schedule II opioids, announced United States Attorney David L. Anderson, Federal Bureau of Investigation Special Agent in Charge John F. Bennett, and California Department of Health Care Services Chief of Investigations Laura Wilbur.
According to the indictment returned October 31, 2019, and unsealed today, Deane Crow was a physician licensed to practice medicine in the State of California. The indictment alleges that since approximately August of 2014, Deane Crow acted outside the usual course of professional practice and without a legitimate medical purpose when he caused pharmacists to dispense more than 452,000 pills containing controlled substances, including the Schedule II opiates oxycodone and hydrocodone.
“Doctors occupy a unique position of trust in our health care system. We cannot allow doctors to betray that trust,” said U.S. Attorney Anderson. “As alleged in the indictment, Dr. Crow fed a conspiracy with empty prescriptions that put hundreds of thousands of pills onto the streets.”
“According to this indictment, Dr. Deane Crow and his co-conspirators illegally traded opioid prescriptions for cash,” said FBI Special Agent in Charge John F. Bennett. “Thanks to the joint investigation between the FBI and the California Department of Health Care Services Medi-Cal Fraud Investigations Branch, we have successfully dismantled an illegal network pushing opioids onto the streets of Northern California and endangering our local communities.”
The indictment describes how Deane Crow allegedly provided blank prescriptions to Gonzales and Bernal, sometimes in exchange for money, who then recruited individuals to visit pharmacies and fill prescriptions. Gonzales filled in the type of drugs to be obtained as well as other necessary information such as date of birth of the person to whom the prescription was issued, dosage instructions, and diagnosis codes reflecting the patient’s purported condition. In order to convince pharmacists to fill the prescriptions, Deane Crow falsely represented to pharmacy employees that the individuals in whose names the prescriptions were written were his patients and that the prescriptions had been issued for a legitimate medical purpose. Further, to ensure the prescriptions were filled, Diane Lynn Crow allegedly assisted in the communications between Bernal, Deane Crow, and the pharmacy employees.
In sum, each defendant was charged with one count of conspiracy to distribute a controlled substance, in violation of 21 U.S.C. § 841(a)(1) and 846, and one count of conspiracy to acquire and obtain possession of a controlled substance by misrepresentation or fraud, in violation of 21 U.S.C. § 843(a)(3) and 846.
An indictment merely alleges that crimes have been committed, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted of the charge of conspiracy to distribute a controlled substance, each defendant faces a maximum sentence of 20 years imprisonment and a $1,000,000 fine. In addition, if convicted of the charge of Conspiracy to Obtain Possession of a Controlled Substance by Misrepresentation or Fraud, each defendant faces a maximum sentence of four years imprisonment and a $250,000 fine. At sentencing, the Court may also order the payment of a fine, restitution, or a period of supervised release to follow any term of imprisonment. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The defendants made an initial appearance this afternoon before U.S. Magistrate Judge Susan van Keulen. Magistrate Judge van Keulen scheduled an appearance for each defendant for November 15, 2019, except Bernal whose next appearance is scheduled for November 19, 2019.
Assistant U.S. Attorney Nikhil Bhagat is prosecuting the case with the assistance of Linda Love. This prosecution is the result of an ongoing investigation by the FBI and the California Department of Health Care Services Medi-Cal Fraud Investigations Branch (DHCS-IB), with the assistance of the DEA and the Monterey County District Attorney’s Office Bureau of Investigation. DHCS-IB fraud investigators are sworn law enforcement officers whose authority extends throughout the State of California. DHCS-IB fraud investigators conduct criminal, administrative and civil investigations into various types of suspected Medi-Cal program fraud.
Anyone, including pharmacists and medical professionals, with information about prescriptions issued without a legitimate medical purpose is urged to contact the FBI Tip Line at (415) 553-7400.
This case was investigated and prosecuted by member agencies of the Organized Crime Drug Enforcement Task Force, a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state, and local law enforcement agencies.
Minneapolis Drug Trafficker Sentenced to 14 Years in PrisonRead the Press Release
United States Attorney Erica H. MacDonald announced the sentencing of two individuals for conspiring to possess and distribute methamphetamine. GONZALO JIMINEZ-PAZ, JR., 22, was sentenced to 168 months in prison and REY DAVID LUNA-SANTILLANES, 22, was sentenced to 63 months in prison. Both defendants were sentenced by Senior Judge David S. Doty in U.S. District Court in Minneapolis, Minnesota.
United States Erica MacDonald said, “Mr. Jiminez-Paz ran a significant drug trafficking operation here in Minnesota. He employed a network of distributors, including his co-defendant Mr. Luna-Santillanes, who helped push dangerous drugs into our cities. This type of criminal activity threatens the health and safety of our communities and will be met with lengthy prison sentences.”
According to the defendants’ guilty pleas and documents filed in court, beginning in January 2019, JIMINEZ-PAZ and LUNA-SANTILLANES entered into an agreement with each other and other individuals to distribute methamphetamine. On March 23, 2019, law enforcement officers with the Ramsey County Violent Crime Enforcement Team (VCET) executed a search warrant at a residence in the downtown area of Minneapolis. During execution of the search warrant, officers recovered approximately 64 pounds of methamphetamine, a large sum of U.S. currency, three pounds of heroin, a bag containing unidentified blue pills and two loaded handguns. The methamphetamine was found inside two suitcases in a bedroom closet, the heroin was hidden inside of a shoebox, and a large amount of cash was located in a kitchen cupboard.
This case was the result of an investigation conducted by the St. Paul Police Department, the Ramsey County VCET, the DEA, and the Minnesota State Patrol.
Assistant U.S. Attorney LeeAnn K. Bell prosecuted the case.
Defendant Information:
GONZALO JIMINEZ-PAZ, JR., 23
Minneapolis, Minn.
Convicted:
- Conspiracy to possess with intent to distribute methamphetamine, 1 count
Sentenced:
- 168 months in prison
- Five years of supervised release
REY DAVID LUNA-SANTILLANES, 23
Minneapolis, Minn.
Convicted:
- Conspiracy to possess with intent to distribute methamphetamine, 1 count
Sentenced:
- 63 months in prison
- Two years of supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Massachusetts Man Sentenced to 235 Months in Prison for Online Enticement of A Minor to Engage in Criminal Sexual ConductRead the Press Release
NEWARK, N.J. – A man from Dracut, Massachusetts, was sentenced today to 235 months in prison for using the internet to solicit sex with a minor, U.S. Attorney Craig Carpenito announced.
Richard Bly, 69, was convicted in July 2019 of online enticement of a minor after a two-day trial before U.S. District Judge Kevin McNulty, who imposed the sentence today in Newark federal court.
According to documents filed in this case and the evidence presented at trial:
On Feb. 7, 2017, Bly posted an advertisement on an internet website seeking to meet parents willing to allow Bly to engage in sexual activity with their young children. Over the course of several weeks, Bly had numerous e-mail and text message exchanges with an undercover law enforcement agent posing as the mother of an 8-year-old girl. In graphic and explicit terms, Bly repeatedly expressed his interest in engaging in sexual activity with the purported child, and made plans to meet the child and her mother at a hotel in Ramsey, New Jersey. Law enforcement officers arrested Bly at the hotel on the same morning that Bly had planned to sexually assault the purported child. At the time of his arrest, Bly was on bail after having been arrested and charged in August 2016 in Massachusetts state court for engaging in similar conduct.
In addition to the prison term, Judge McNulty sentenced Bly to 10 years of supervised release.
U.S. Attorney Carpenito credited special agents of Homeland Security Investigations (HSI), Newark Division, under the direction of Special Agent in Charge Brian Michael; and the Bergen County Prosecutor’s Office, under the direction of Prosecutor Mark Musella, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Joshua L. Haber and Heather Suchorsky of the U.S. Attorney’s Office Criminal Division.
Defense counsel: Thomas Ambrosio Esq., Lyndhurst, New Jersey
Manchester Man Sentenced to 50 Months for Fentanyl TraffickingRead the Press Release
CONCORD - Nestor Santiago Torres, 33, of Manchester, was sentenced in federal court on Tuesday to 50 months in prison for possession of fentanyl with intent to distribute, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on the evening of January 31, 2018, a New Hampshire State Trooper made a traffic stop of a Ford Expedition on Interstate 93 in Salem. The defendant was a passenger in the vehicle. During a consensual search of the vehicle, a Trooper located a clear plastic package beneath the front passenger’s seat that contained approximately 373.8 grams of fentanyl. Multiple sandwich bags and a digital scale also were recovered from the motor vehicle. During a later interview, Torres admitted that the drugs belonged to him and that he had been engaged in the distribution of drugs.
Torres previously pleaded guilty on March 22, 2019.
“For drug dealers, the cost of selling fentanyl in New Hampshire is a federal prison term,”said U.S. Attorney Scott Murray. “Those who choose to engage in this business should expect to be investigated, identified, prosecuted, and incarcerated. We will continue to work with New Hampshire State Police, HSI, and all of our law enforcement partners to end this lethal trade.”
“This man has been convicted of distributing a highly addictive and destructive drug. Too many lives have been lost to this opioid epidemic and law enforcement is not taking it lightly,” said Jason J. Molina, Special Agent in Charge of HSI Boston. “Torres will now have plenty of time behind bars to contemplate his actions and there is one less dealer on the streets of New Hampshire.”
This matter was investigated by the New Hampshire State Police and Immigration and Customs Enforcement’s Homeland Security Investigations. The case was prosecuted by Assistant U.S. Attorney John S. Davis.
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Louisiana Department of Health to Pay $13.42 Million to Settle Alleged False Medicaid Claims for Nursing Home and Hospice CareRead the Press Release
The Louisiana Department of Health has agreed to resolve allegations that it submitted false and inflated Medicaid claims for long-term nursing home and hospice care, the Department of Justice announced today. Under the settlement agreement, the state agency has agreed to pay $13,422,550.
“Today’s settlement demonstrates that we will take whatever steps are appropriate in our effort to protect federal healthcare programs, including Medicaid, from false claims,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “Anyone who seeks to profit at the expense of Federal taxpayers, including state agencies, will face appropriate consequences.”
“This office will remain vigilant in its efforts to ensure the integrity of the Medicaid program by continuing to pursue those who commit improprieties against the program – whether they be providers or beneficiaries, or those more central to the administration of the program,” said Brandon J. Fremin, the U.S. Attorney for the Middle District of Louisiana. “The people of Louisiana deserve it. I am grateful to the dedicated AUSAs and staff in our Civil Division and to the Office of Inspector General for the U.S. Department of Health and Human Services for their hard work and dedication to this very important matter.”
Medicaid is a joint federal and state program providing financial assistance to individuals with low incomes to enable them to receive medical care. The Medicaid program makes quarterly grant awards to each participating state covering an amount, commonly known as the federal share, of the state’s expenditures for healthcare services covered by the state’s Medicaid plan. The federal share is determined by a percentage rate that is subject to change from quarter to quarter. Nursing homes and hospices typically submitted claims to Louisiana on the tenth day of the month following the month during which the services were actually provided. Louisiana then paid these claims, sought Federal reimbursement for those expenditures, and received Federal reimbursement based on the rate in effect at that time.
The United States alleged that the Louisiana Department of Health knew that the rates determining the federal share of Louisiana’s Medicaid payments were set to decrease following the months of December 2010, March 2011, June 2011, and September 2013. To receive the higher Federal share percentage rates in effect during these months, the Louisiana Department of Health fraudulently caused its healthcare contractor, Molina Medical Solutions, to prepare, submit, and pay claims for nursing home and hospice services in these months, before the providers had submitted to Louisiana any claims for them. Louisiana then claimed Federal reimbursement for those premature payments. As a result, the Louisiana Department of Health received a Federal share based upon the higher percentage rate in effect in those months, rather than the lower percentage rate in effect the following months when the providers actually submitted their claims to Louisiana.
This settlement was the result of an investigation by the Civil Division of the Department of Justice, the U.S. Attorney’s Office for the Middle District of Louisiana, and the U.S. Department of Health and Human Services Office of Inspector General.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Louisiana Department of Health to Pay $13.42 Million to Settle Alleged False Medicaid Claims for Nursing Home and Hospice CareRead the Press Release
U.S. Attorney Brandon J. Fremin announced today that the Louisiana Department of Health (LDH) has agreed to resolve allegations that it submitted false and inflated Medicaid claims for long-term nursing home and hospice care. Under the settlement agreement, the state agency has agreed to pay $13,422,550.96.
“Today’s settlement demonstrates our continuing vigilance to protect Federal healthcare programs, including Medicaid, from false claims,” said Assistant Attorney General Joseph H. Hunt for the Department of Justice’s Civil Division. “Anyone seeking to profit at the expense of Federal taxpayers, including state agencies, will face serious consequences.”
“This office will remain vigilant in its efforts to ensure the integrity of the Medicaid program by continuing to pursue those who commit improprieties against the program – whether they be providers or beneficiaries, or those more central to the administration of the program,” said U.S. Attorney Brandon J. Fremin for the Middle District of Louisiana. “The people of Louisiana deserve it. I am grateful to the dedicated AUSAs and staff in our Civil Division and to the Office of Inspector General for the U.S. Department of Health and Human Services for their hard work and dedication to this very important matter.”
Medicaid is a joint Federal and State program providing financial assistance to individuals with low incomes to enable them to receive medical care. The United States Centers for Medicare and Medicaid Services (CMS) makes quarterly grant awards to each participating State covering an amount, commonly known as the Federal share, of the State’s expenditures for healthcare services covered by the State’s Medicaid plan. The Federal share is determined by a percentage rate in effect during the quarter in which the State paid the claims from health care providers. That rate is subject to change from quarter to quarter. Nursing homes and hospices typically submitted claims to Louisiana on the tenth day of the month following the month during which the services were actually provided. Louisiana then paid these claims, sought Federal reimbursement for those expenditures, and received Federal reimbursement based on the rate in effect at that time.
The United States alleged that the Louisiana Department of Health (LDH) knew that the rates determining the Federal share of Louisiana’s Medicaid payments were set to decrease following the months of December 2010, March 2011, June 2011, and September 2013. To receive the higher Federal share percentage rates in effect during these months, LDH fraudulently caused its healthcare contractor, Molina Medical Solutions, to prepare, submit, and pay claims for nursing home and hospice services in these months, before the providers had submitted to Louisiana any claims for them. Louisiana then claimed Federal reimbursement for those premature payments. As a result, the LDH received a Federal share based upon the higher percentage rate in effect in those months, rather than the lower percentage rate in effect the following months when the providers actually submitted claims to Louisiana.
This settlement was the result of an investigation by the U.S. Attorney’s Office for the Middle District of Louisiana, the Civil Division of the Department of Justice, and the U.S. Department of Health and Human Services Office of Inspector General.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Law Enforcement Rounds up Members of Birmingham-based Continuing Criminal Enterprise of Methamphetamine, Heroin, Fentanyl, and Cocaine ConspiracyRead the Press Release
BIRMINGHAM, Ala. -- Federal and local law enforcement today arrested 14 defendants indicted in November as part of a multi-million dollar continuing criminal enterprise and conspiracy to distribute heroin, fentanyl, cocaine, methamphetamine, and marijuana, mainly within western Jefferson County, announced U.S. Attorney Jay E. Town, FBI Special Agent in Charge Johnnie Sharp, Jr., IRS-CID Special Agent in Charge Thomas J. Holloman, III, HSI Atlanta Acting Special Agent in Charge Robert Hammer, Bessemer Police Chief Michael Roper and Jefferson County Sheriff Mark Pettway.
Today's arrests brings to justice 14 people as a result of the three-year Organized Crime Drug Enforcement Task Force (“OCDETF”) investigation into a West Jefferson County based drug-trafficking enterprise and conspiracy in a 58-count superseding indictment, which identified acts by the organization over a period of six years. The OCDETF agencies involved in this investigation are the FBI, IRS-CID, HSI, member agencies of the FBI North Alabama Safe Streets Task Force, the Jefferson County Sheriff’s Department, and Bessemer Police Department.
The man accused as the leader of the organization, ROLANDO ANTUAIN WILLIAMSON, 34, aka “Baldhead” and “Ball Head,” was already in custody and charged with the original federal indictment for possessing with intent to distribute a large quantity of heroin, methamphetamine, marijuana and firearms on Aug. 22, 2019. The North Alabama Safe Streets Task Force arrested an armed WILLIAMSON the morning of Aug. 22nd in the parking lot of the Publix grocery store located at 411 Green Springs Highway, Homewood, Alabama. WILLIAMSON was driving a 2016 Dodge Hellcat valued at $80,000 that was purchased with laundered money. At the time of arrest, WILLIAMSON possessed two loaded pistols (with additional loaded magazines) and almost $14,000 in cash.
Seized on that day from WILLIAMSON and three of his stash houses, were 366 grams of heroin/fentanyl, 109 grams of suspected cocaine, 573 grams of pure methamphetamine, and 52 kilos of marijuana. Found with the drugs was over $97,000 in cash, an arsenal of firearms, and ammunition.
"Today, a group of federal and local law enforcement officers dismantled a drug-trafficking operation charged with peddling the poison of methamphetamine, heroin, cocaine and marijuana onto the streets of our city,” Town said. “Much of the heroin was laced with the deadly drug fentanyl. This indictment represents years of dedicated work by the FBI, IRS-CID, HSI, Bessemer Police Department, the North Alabama Safe Streets Task Force, and prosecutors in my office.
"As a direct result of this enforcement action, the supply network for heroin/fentanyl, cocaine, methamphetamine, and marijuana in Bessemer and other areas of Jefferson County has been severely disrupted," Sharp said. "I applaud the hard work and teamwork exhibited by my agents, along with our partners of OCDETF- IRS-CI, HSI, Bessemer Police Department, and the member agencies of the North Alabama Safe Streets Task Force, who once again demonstrated the importance of combining the strengths, resources and expertise of federal and local agencies to fight these drug-trafficking networks.”
“HSI is committed to working with our law enforcement partners to remove criminals and dangerous drugs from our communities,” said Robert Hammer, acting Special Agent in Charge of HSI Atlanta. “These people will be held accountable for threating public safety with their poison.”
WILLIAMSON is charged with the “Kingpin Statute,” a count of continuing criminal enterprise, a serious charge reserved for principal orchestrators who obtain substantial income or resources from drug trafficking enterprises involving several persons and substantial amounts of drugs. If convicted, WILLIAMSON will spend the rest of his life in prison.
According to the indictment, 18 people are charged with conspiracy to distribute heroin/fentanyl, methamphetamine, cocaine, and marijuana between March 2013 and August 2019. In addition to Williamson, those defendants are LEANTHONY MARTEZ GILLINS, 32, also known as “Fat Man,” SIRTERRIOUS ARZAVIA LEE, 32, also known as “Sir,” ERRICK DIONN DANIEL, 34, also known as “E,” ANTONIUS TREKELLE HAYES, 30, ADRIEN HIRAM TAYLOR, 31, also known as “Slim,” KLONDE DELVIUM HATTER, 24, KENNETH RENELL JOHNSON, JR., 33, ISHMYWEL CALID GREGORY, 35, also known as “C,” ISAAC RASHAD ROBINSON, 30, also known as “Ike, CHRISTOPHER ALLEN COOK, 31, KYLER DESHARD HATTER, 23, JANAYA LENISE BIBB, 34, DARIUS LAMAR JOHNSON, 36, also known as “Murc,” TEVION RASHAD POOLE, 27, HENDARIUS LAMAR ARCHIE, 33, also known as “Hen,” and YOLANDA MILTON, 48.
The indictment separates defendants by the amount and type of drug attributable to them through their actions in the drug-trafficking conspiracy.
WILLIAMSON, GILLINS, D.L. JOHNSON, DANIEL, LEE, ARCHIE HAYES, TAYLOR, and THOMAS, 1,000 grams or more of heroin, 10 years to life;
WILLIAMSON, GILLINS, D.L. JOHNSON, DANIEL, LEE, ARCHIE, HAYES, and GREGORY, 5 kilos or more of cocaine, 10 years to life;
WILLIAMSON, GREGORY, ROBINSON, Klonde HATTER, Kyler HATTER, BIBB, TAYLOR, and K.R. JOHNSON, Jr. fifty grams or more of methamphetamine, 10 years to life;
POOLE, BIBB, K.R. JOHNSON, Jr., and Kyler HATTER, 100 grams or more of heroin; 5 years to 40 years;
WILLIAMSON, GILLINS, POOLE, DANIEL, LEE, ARCHIE, THOMAS ROBINSON, and COOK, 100 kilos or more of marijuana; 5 years to 40 years.
The superseding indictment charges the additional crimes with accompanying imprisonment ranges:
WILLIAMSON is charged with carrying, using and possessing firearms during and furthering his drug trafficking crimes; imprisonment for not less than 5 years nor more than life.
GILLINS, LEE, and DANIEL are charged with possessing with intent to distribute cocaine and marijuana; imprisonment for not more than 20 years.
HAYES is charged with distributing heroin; imprisonment for not more than 20 years.
TAYLOR and Klonde HATTER are charged with distributing methamphetamine; imprisonment 10 years to life.
GREGORY is charged with distributing cocaine; imprisonment for not more than 20 years.
ROBINSON is charged with possessing with the intent to distribute methamphetamine; imprisonment for 10 years to life.
COOK is charged with distributing marijuana and possessing a firearm in furtherance of his drug trafficking; imprisonment for 5 years to life.
The indictment includes forty counts of telephone communications among most of the defendants facilitating the drug trafficking enterprise.
The indictment charges WILLIAMSON and YOLANDA MILTON with money laundering.
The indictment seeks forfeiture of $10,000,000 in profits, all vehicles with equitable value, almost $20,000 in jewelry, all firearms and ammunition used to facilitate the drug trafficking enterprise.
The minimum prison penalty for possessing a firearm in furtherance of a drug-trafficking crime is five years in prison, which must be served after completion of any other sentenced related to the crime. The maximum penalty for being a convicted felon in possession of a firearm is 10 years in prison.
Each count of using a telephone in furtherance of a drug-trafficking crime carries a maximum penalty of four years in prison.
The FBI, the IRS-CID, HSI, FBI’s North Alabama Safe Streets Task Force, and the Bessemer Police Department investigated the case, which Assistant U.S. Attorneys Jonathan S. Cross and Gregory R. Dimler are prosecuting.
An indictment contains only charges. Defendants are presumed innocent unless and until proven guilty.
Law Enforcement Officers Join Gray-New Gloucester High School Students for a Day of LearningRead the Press Release
Portland, Maine: U.S. Attorney Halsey B. Frank announced today that on November 18, 2019, the U.S. Attorney’s Office for the District of Maine, the Cumberland County District Attorney’s Office, the Cumberland County Sheriff’s Office, the FBI, the Lewiston Police Department and the Portland Police Department will present the TRUST (Teach mutual Respect and Understanding through SimulaTion) Program to about 50 students at Gray-New Gloucester High School, located at 10 Libby Hill Road in Gray.
The TRUST Program offers students an opportunity to meet with representatives of the criminal justice community and ask them questions, share their perceptions of law enforcement and interact with law enforcement officers in a familiar setting. Law enforcement officers also provide students with their perspective on responding to dangerous or uncertain circumstances and the importance of remaining calm and following the officers’ directions in these situations.
The half-day program will start at 9:00 a.m. and conclude at about 1:00 p.m. It will include: (1) presentations about investigating, prosecuting and sentencing in criminal cases; (2) student role-playing exercises involving a call for service for a domestic disturbance complaint and a traffic stop; and (3) use of force simulations.
OPEN PRESS (except for the use of force simulations; simulator equipment will be made available to the press at the conclusion of the simulations). Students with media permissions will be identified.
NOTE: All media must RSVP to [email protected], arrive by 8:45 a.m. and possess a government-issued photo I.D. (such as a driver’s license) as well as valid media credentials.
The U.S. Attorney’s Office for the District of Maine is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. For more information about the U.S. Attorney’s Office, visit https://www.justice.gov/usao-me.
Justice Department Reaches Settlement Agreement with Vibra Healthcare and El Paso Rehabilitation Hospital over Allegations of Violating the False Claims ActRead the Press Release
U.S. Attorney John F. Bash of the Western District of Texas announced today that Vibra Healthcare, LLC, Vibra Healthcare II, LLC, Vibra Rehab Holdings, LP, Vibra Rehabilitation Hospital of El Paso, LLC d/b/a Highlands Rehabilitation Hospital, and Vibra IRFM Company, LLC, (collectively referred to as “Vibra”) will pay $6,250,000.00 to settle allegations that they defrauded the U.S. through its Medicare healthcare programs. Vibra Healthcare, based in Pennsylvania, operates freestanding acute medical rehabilitation hospitals and long term acute care hospitals nationwide, including Highlands Rehabilitation Hospital in El Paso, Texas.
On January 21, 2016, Thomas A. Floren, a former employee at Highlands, filed a qui tam action in the U.S. District Court for the Western District of Texas, alleging that Highlands and others submitted false claims to Medicare for services that did not meet the requirements for payment. Medicare requires that inpatient rehabilitation facilities, such as Highlands, provide an intensive level of services to patients, including that the patient be examined by a qualified physician at least three times per week throughout a patient’s stay. Floren alleged that patients at Highlands were not seen three times per week by a qualified physician, and that Vibra billed Medicare for services knowing that it did not meet this requirement.
“I am pleased that the parties reached a fair settlement in this case. If medical providers want reimbursement from Medicare, they need to follow the rules. That is especially true for rules designed to ensure that patients get healthy. We won’t hesitate to hold providers to their legal obligations,” said U.S. Attorney Bash.
The lawsuit, United States ex rel. Thomas A. Floren v. Vibra Rehabilitation Hospital of El Paso, LLC et al., Civil Action SA16CA0058 was filed under the qui tam or whistleblower provisions of the False Claims Act, which permits private parties to sue for false claims against the U.S. and to receive a share of any recovery.
The case was investigated by the FBI. Special Assistant U.S. Attorney Susan Strawn represented the federal government in the civil lawsuit, with the assistance of the Office of the Inspector General of the U.S. Department of Health and Human Services.
The claims asserted against the defendants are allegations only; there has been no determination of liability.
Jury Verdict: Meth Distributor Was Part of ConspiracyRead the Press Release
KANSAS CITY, KAN. – A federal jury Tuesday returned guilty verdicts against a Kansas City, Kan., man who was arrested with half a pound of methamphetamine in his car, U.S. Attorney Stephen McAllister said.
Sean Alexander Tennison, 46, Kansas City, Kan., was convicted in a jury trial on one count of conspiracy and one count of possession with intent to distribute methamphetamine.
During trial, prosecutors presented evidence that investigators had Tennison and a co-defendant under surveillance when they met the seller outside El Rio Bravo Supermarket. During a car stop, investigators found 245.7 grams of methamphetamine that Tennison tried to hide in his pants.
During the same trial, co-defendants Luis Alberto Quintero-Jimenez and Eduardo Garcia-Patino, pleaded guilty. Both are set for sentencing Jan. 30, 2020. In Quintero-Jiminez’s plea agreement, both parties agreed to recommend Quintero-Jiminez receive a sentence of 20 years in federal prison.
Tennison is set for sentencing February 13, 2020. He could face a sentence of not less than 10 years in federal prison on each count. McAllister commended the Drug Enforcement Administration, the Jackson County Drug Task Force, Special Assistant U.S. Attorney Michelle McFarlane and Assistant U.S. Attorney Tris Hunt for their work on the case.
Jimmy Law Sentenced to Prison in Drug Trafficking CaseRead the Press Release
SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant JIMMY LAW, age 61, from Turlock, California, was sentenced in the United States District Court of Guam to 120 months imprisonment for Conspiracy to Distribute Methamphetamine of fifty grams or more, in violation of 21 U.S.C. § 841(a)(1). Senior Judge Alex R. Munson also ordered five years of supervised release following imprisonment, 100 hours of community service, and a mandatory $100 assessment fee. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
On January 1, 2013, through March 7, 2017, the U.S. Postal Inspector and the Drug Enforcement Administration intercepted four packages in the mail. The packages were found to contain in excess of 110 net grams of methamphetamine hydrochloride (“ice”). Further investigation revealed that Jimmy Law mailed the packages to his ex-girlfriend. Once on Guam, she intended to distribute the drug to others on the island.
U.S. Attorney Anderson stated, “Federal law enforcement continues to aggressively pursue drug trafficking activity on Guam. This case demonstrates the benefits of effective partnerships and the results of long-term investigations. Our office vigorously enforces federal drug laws at every opportunity. While our distance from the mainland is great, off island sources of supply will be charged and held accountable in our districts.”
This case was the result of a joint investigation by the U.S. Postal Service and the Drug Enforcement Administration. The case was prosecuted by Rosetta L. San Nicolas, Assistant United States Attorney in the Districts of Guam and the Northern Mariana Islands.
Jury Convicts Pryor Man of Assault on Crow ReservationRead the Press Release
BILLINGS – After a two-day trial, a jury convicted a Pryor man of assaulting a man, causing facial injuries, on the Crow Reservation, U.S. Attorney Kurt Alme said.
The jury found Joseph Nathan Smells, 34, guilty of assault resulting in serious bodily injury. Smells faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release.
U.S. District Judge Susan P. Watters presided over the trial and set sentencing for March 18, 2020. Smells is being detained pending sentencing.
The prosecution presented evidence that Smells assaulted the victim by head-butting and punching him on February 13, 2019 in Pryor. The attack caused multiple facial injuries that required surgery.
The assault occurred as the victim, along with two others, returned to Pryor after attending a basketball game in Billings. While driving to drop off a passenger, the group passed the victim’s house. The driver noticed that the door had been kicked in and stopped to investigate. The driver walked toward the house and saw Smells, just inside the house, and another man and told them both to leave. Smells and the driver argued, and as the driver tried to call police, Smells walked to the vehicle, where the victim was a passenger. Smells spoke briefly to the victim then jerked open the vehicle door and began assaulting the victim. After the fight, Smells ran away.
Assistant U.S. Attorney Jeanne Torske prosecuted the case, which was investigated by the Federal Bureau of Investigation and Bureau of Indian Affairs.
Iowa City Man Sentenced to 90 Months in Prison for Receiving Child PornographyRead the Press Release
DAVENPORT, Iowa – On November 12, 2019, the Honorable Michael J. Melloy, Senior United States Circuit Judge for the United States Court of Appeals for the Eighth Circuit, sentenced Marcus Henry Benjamin, 28, of Iowa City, Iowa, to 90 months in prison for receiving child pornography, announced United States Attorney Marc Krickbaum. Benjamin was also ordered to serve 6 years of supervised release following his imprisonment, pay $100 to the Crime Victims’ Fund, pay $5,000 in restitution, and comply with the sex offender registry requirements upon release.
On June 21, 2019, Benjamin pleaded guilty to one count of receiving child pornography. The investigation began in 2018 when FBI agents discovered sexually explicit posts on a social media discussion website. The investigation led agents to identify Benjamin and his residence, and a search resulted in agents seizing twelve electronic devices. The forensic evaluation of the electronic devices revealed that Benjamin collected child pornography for more than four years, amassing a collection of over 1200 images plus videos.
This matter was investigated by Federal Bureau of Investigation and National Center for Missing and Exploited Children (NCMEC), and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Houston, PA Woman Illegally Possessed Fentanyl, Cocaine and 3 Loaded FirearmsRead the Press Release
PITTSBURGH, PA - A resident of Washington County, Pennsylvania, pleaded guilty in federal court on November 12, 2013, to violating the federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
Alyssa Ashley Adkins, age 30, of Houston, PA, pleaded guilty to charges including conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl; possession with intent to distribute 40 grams or more of fentanyl and a quantity of cocaine; possession of firearms and ammunition by a convicted felon; and possession of firearms in furtherance of a drug trafficking crime before United States District Judge Marilyn J. Horan.
In connection with the guilty plea, the court was advised that between March 7, 2018, and March 20, 2018, investigators with the Washington County District Attorney’s Office Drug Task Force utilized confidential informants to purchase quantities of fentanyl from Adkins and co-conspirator, Vashaun Wright. Through those investigative efforts, task force officers obtained a search warrant for a residence located on Main Street in Houston Borough, Washington County, which was utilized by the defendant and Wright. On March 23, 2018, investigators served the search warrant and seized over 40 grams of fentanyl (which was packaged for distribution), a quantity of cocaine (which was packaged for distribution), approximately $24,000 in U.S. Currency, and three loaded firearms, amongst other evidence. Adkins, a felon, admitted in connection with the plea that she unlawfully possessed the three seized firearms and ammunition. Federal law prohibits individuals with prior felony convictions from possessing firearms or ammunition. Adkins further admitted to possessing the firearms in furtherance of the drug trafficking crimes charged in the Indictment.
Pending sentencing, the court continued Adkins’ detention.
Judge Horan scheduled sentencing for January 21, 2020. The law provides for a total sentence of not less than 10 years and up to life in prison, a fine of not more than $11,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Jerome A. Moschetta is prosecuting this case on behalf of the government.
The Washington County District Attorney’s Office Drug Task Force, Pennsylvania State Police, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation that led to the prosecution of Adkins.
Horseshoe Bend Woman Pleads Guilty to Wire FraudRead the Press Release
BOISE – Lois Soito, 60, of Horseshoe Bend, Idaho, pled guilty today to two counts of wire fraud, U.S. Attorney Bart M. Davis announced. Sentencing for Soito is set for February 21, 2020, before Chief U.S. District Judge David C. Nye at the federal courthouse in Boise.
According to court records, for 22 years, Soito worked in the accounts receivable department for the Saint Alphonsus Health System (SAHS) in Boise. In her job, Soito had access to money raised at the Festival of Trees. Beginning in January 2005, Soito kept checks intended for SAHS instead of depositing them in the appropriate account. She then fraudulently deposited some of the checks into a bank account used to reimburse SAHS vendors. From that account, Soito wrote checks payable to herself and deposited them into a credit union account she controlled. Soito also used some of the checks that she kept to conceal her theft of funds from the Festival of Trees. Soito used similar methods with other SAHS accounts to embezzle additional funds. Because Soito’s fraudulent scheme caused the interstate transmission of wires, she was charged federally with wire fraud.
Wire fraud is punishable by up to 20 years in prison, a fine of up to $250,000, and up to 3 years of supervised release. As part of her guilty pleas, Soito agreed to pay restitution of at least $1,483,963.82 to SAHS.
This case was investigated by Federal Bureau of Investigation and Boise Police Department.
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Honduran National Sentenced to 15 Months in Federal Prison for Illegal Re-EntryRead the Press Release
NEW ORLEANS – U.S. Attorney Peter Strasser announced today that OMAR ELI PEREZ-MURCIA (“MURCIA”), age 35, was sentenced on November 12, 2019 for a one-count indictment for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a).
According to documents signed by the defendant and filed in open court, MURCIA admitted to being a citizen of Honduras, and being illegally present in the United States. He further admitted to illegally re-entering the United States after being deported in 2006. U.S. District Judge Wendy B. Vitter sentenced MURCIA to 15 months in federal prison and 1 year supervised release. The Judge noted in open court that she was concerned over MURCIA’S three prior deportations.
U.S. Attorney Strasser praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U. S. Attorney Carter K. D. Guice, Jr. is in charge of the prosecution.
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Hartford Man Admits Distributing Fentanyl, Violating Supervised ReleaseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JOSEPH GRIFFIN, 42, of Hartford, pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to one count of possession with intent to distribute, and distribution of, fentanyl. Griffin also admitted that he violated the conditions of his supervised release from a prior federal conviction.
According to court documents and statements made in court, Griffin was arrested on January 17, 2019, in Hartford, after investigators made a controlled purchase of more than five grams of fentanyl from him. Griffin possessed an additional two grams of fentanyl at the time of his arrest.
In January 2019, Griffin was on federal supervised release for a 2009 conviction for distributing crack cocaine. Griffin was sentenced to 10 years of imprisonment and five years of supervised release for that offense. He was released from federal prison in December 2017.
Judge Shea scheduled sentencing for February 10, 2020, at which time Griffin faces a maximum term of imprisonment of 20 years for distributing fentanyl, and additional penalties for violating the conditions of his supervised release.
Griffin is released on a $50,000 bond pending sentencing.
This matter has been investigated by the FBI’s Northern Connecticut Violent Crimes Task Force, Hartford Police Department and U.S. Marshals Service. The case is being prosecuted by Assistant U.S. Attorney David T. Huang and First Assistant U.S. Attorney Leonard C. Boyle.
Greenfield Woman Sentenced for Conspiracy to Hide $486,000 from Federally Insured Financial InstitutionRead the Press Release
BOSTON – A Greenfield woman was sentenced yesterday in federal court in Springfield in connection with concealing nearly half a million dollars from a federally insured financial institution.
Marlene Borer, 68, was sentenced by U.S. District Court Judge Mark G. Mastroianni to time served (one day) in prison and two years of supervised release. In September 2018, Borer pleaded guilty to one count of conspiracy to make false statements to a federally insured financial institution and one count of false statements to a federally insured financial institution.
In August 2011, Borer’s brother, Jeffrey Borer, and his then-wife owed Wells Fargo Bank approximately $1.32 million in outstanding loans. In March 2012, Borer, who was acting as her brother’s bookkeeper, received approximately $1.1 million, which related to a judgment from a Honduran court, into her Massachusetts bank account. $486,000 of the $1.1 million judgment belonged to Jeffrey Borer and his then-wife. A few days after Marlene Borer received the money, her brother e-mailed her to “keep [the] bulk” of their funds in her account because “Wells Fargo might be conducting an asset search on us to try and recover the judgments. Just transfer what is needed to pay bills as they arrive.” Marlene Borer distributed their funds from her account as he requested.
On or about May 24, 2012, Marlene Borer prepared a false personal financial statement for Jeffrey Borer and his then-wife, stating that they only had $4,200 in the bank. Jeffrey Borer provided the personal financial statement to Wells Fargo, which relied upon it to negotiate their debt. On Oct. 31, 2012, Jeffrey Borer and his then-wife executed a settlement agreement with the bank, in which Wells Fargo agreed to forgive their personal obligations in exchange for a payment of $50,000.
In October 2019, Jeffrey Borer was sentenced to 10 months in prison.
United States Attorney Andrew E. Lelling and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation, New England Field Division made the announcement. Assistant U.S. Attorney Steven H. Breslow of Lelling’s Springfield Branch Office prosecuted the case.
Georgia Man Sentenced to 2 Years for EscapeRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Larry Dollar, 48, Duluth, Georgia, was sentenced today by U.S. District Judge William M. Conley to two years in federal prison for escaping from custody. Dollar pleaded guilty to this offense on August 22, 2019.
In October 2017, Dollar was sentenced to five years in federal prison for bank robbery in the Northern District of Illinois. On January 22, 2019, Dollar was furloughed to Rock Valley Community Programs (RVCP) in Janesville, Wisconsin. Dollar was provided transportation from Florida, where he was incarcerated, to Janesville. A warrant was issued after Dollar failed to arrive at RVCP. Dollar was arrested on February 8, 2019, by Georgia State University police officers, and was subsequently charged with escape from federal custody.
In sentencing Dollar, Judge Conley noted that Dollar’s untreated schizophrenia, coupled with his addiction to alcohol, made him an ongoing danger to the community. In addition, Dollar’s extensive criminal history, including convictions for cruelty to children, battery, and aggravated assault made him a danger to children in particular.
Dollar’s conviction is the result of an investigation by the United States Marshals Service. The prosecution of this case has been handled by Assistant U.S. Attorney Julie Pfluger.
Great Falls Meth Traffickers Sentenced After More Than 10 Years on the RunRead the Press Release
GREAT FALLS—A couple who admitted to trafficking methamphetamine in the community in 2006 and 2007 and absconding for more than 10 years before their arrest this year in Oklahoma were sentenced to prison terms today, U.S. Attorney Kurt Alme said.
Jamie Alan Cordell, 45, and his wife, Tania Longtin, 43, both of Alta, Wyoming, pleaded guilty in June to possession with intent to distribute meth and to failure to appear after pre-trial release.
Cordell was sentenced to 36 months in prison followed by 3 years of supervised release and 400 hours of community service. Longtin was sentenced to 24 months in prison followed by 3 years of supervised release and 200 hours of community service. U.S. District Judge Brian M. Morris presided over both sentencing hearings.
In court records filed in the case, the prosecution said Cordell was involved in distributing meth in Great Falls in 2006 and 2007 and that Longtin assisted her husband. Cordell made at least six trips to California to pick up loads of meth, and that Longtin, at one point, traveled to California to get meth for redistribution. Cordell received at least six pounds of meth from a California supplier. Six pounds of meth is the equivalent of about 21,744 doses. Ultimately, eight other defendants pleaded guilty to their involvement in the overall drug conspiracy.
After their initial arrest at their home in Alta, Wyoming, in June 2007, the couple made an initial appearance on an indictment before a magistrate judge in Jackson, Wyoming. Cordell and Longtin were released on bonds on July 3, 2007 after a detention hearing and ordered to appear in U.S. District Court in Great Falls on August 14, 2007.
Both Cordell and Longtin failed to appear. The couple remained fugitives until January 17, 2019, when they were arrested in Tulsa, Oklahoma.
Assistant U.S. Attorney Jessica Betley prosecuted the case which was investigated by Homeland Security Investigations, Great Falls Police Department and the U.S. Marshals Service.
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.
Fuquay-Varina Man Sentenced to 10 Years for Distributing FentanylRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that United States District Judge James C. Dever III sentenced MIKKEL MCKINNIE, 31, of Fuquay-Varina, North Carolina to 120 months imprisonment, followed by 3 years of supervised release.
MICKINNIE was named in an Second Superseding Indictment filed on July 10, 2019. On August 5, 2019, MCKINNIE pled guilty to the distribution of fentanyl.
Investigation into this case began on December 1, 2016, when the Fuquay-Varina Police Department responded to a reported overdose at a Fuquay-Varina residence. Inside the residence, police officers and other first responders found an unconscious victim in a restroom. Emergency medical personnel (EMS) were unable to revive the victim and he was subsequently pronounced dead. On the floor near the victim’s body, investigators found a metal spoon containing white residue and used hypodermic needles. The white residue from the spoon was tested and found to be fentanyl. Residue from the needles was also tested and found to contain fentanyl and heroin.
An investigation into the source of the drugs that killed the victim established that, in the days preceding his death, MCKINNIE sold a substance referred to as “China White” to the victim and others. This substance was found to contain fentanyl, a powerful synthetic opioid approximately 50 times more potent than heroin. MCKINNIE knew that the China White was extremely dangerous and even warned his customers of its potency.
The Fuquay-Varina Police Department investigated this case. Assistant United States Attorney Toby Lathan and Ethan Ontjes represented the government.
Fourteen Indicted in $6 Million Counterfeit iPhones Scheme; Biggest Fraud of its Kind in Southern DistrictRead the Press Release
SAN DIEGO – A federal grand jury indictment was unsealed today charging fourteen alleged members of an international criminal organization with dozens of fraud, conspiracy, identity theft and money laundering charges related to their multi-million-dollar counterfeit iPhone and iPad scheme.
During a coordinated takedown that began early this morning, investigators executed 11 search warrants - including at two businesses plus several homes and vehicles located in Mira Mesa and Mission Hills - and seized an estimated $250,000 in cash plus 90 iPhones which are being evaluated to determine authenticity. As of today at noon, 11 of 14 defendants are in federal custody. Three are fugitives, including Xiamon Zhong, who is believed to be in China; Charley Hsu of San Diego; and Hyo Weon Yang of San Francisco.
According to the indictment, the organization - led by three brothers - imported more than 10,000 counterfeit iPhones and iPads from China, exchanged them for the real thing at Apple stores throughout the United States and Canada, and then shipped the authentic devices back to China and other foreign countries to sell at a premium.
Apple conservatively estimates that the loss associated with the counterfeit items that were fraudulently exchanged at Apple Stores for genuine Apple productss exceeds $6.1 million.
“While a significant amount of money in any circumstance, this prosecution is about more than monetary losses,” said U.S. Attorney Robert Brewer. “The manufacture of counterfeit goods - and their use to defraud U.S. companies - seeks to fundamentally undermine the marketplace and harms innocent people whose identities were stolen in furtherance of these activities. The United States Attorney’s Office is fully committed to bringing to justice those who seek to damage American markets and consumers through the peddling of bogus products.”
FBI Special Agent in Charge Scott Brunner said: “This significant investigation and the indictment of these 14 individuals shows the FBI’s commitment to working with the United States Attorney’s Office and our law enforcement partners to combat international fraud schemes that affect American citizens and American businesses against counterfeit goods originating in China and those fraudsters who exploit American trademarked products for their personal financial gain.”
The Liao brothers – alleged ringleaders Zhiwei, Zhimin and Zhiting – were arrested by FBI agents this morning along with their wives. The brothers are naturalized U.S. citizens born in China. Other defendants include mostly U.S. citizens, mostly naturalized, from China, Vietnam and Russia.
According to the indictment, the Liao brothers directed other alleged conspirators to exchange counterfeit iPhones and iPads for genuine iPhones and iPads at Apple stores throughout the United States and Canada. Defendants intentionally damaged the counterfeit iPhones and iPads and fraudulently represented the counterfeit devices to be genuine Apple devices that were covered by an Apple warranty knowing that Apple would exchange damaged devices under warranty for new genuine Apple devices.
According to the indictment, all genuine Apple iPhones have an International Mobile Equipment Identity (IMEI) number, and a serial number, that are both unique numbers to each device. The counterfeit iPhones had IMEI and serial numbers that matched IMEI and serial numbers for genuine iPhones and iPads that were purchased and used by other persons and covered by an Apple warranty in the United States or Canada.
U.S. Attorney Brewer thanked lead prosecutor Tim Salel and agency partners, including the FBI, San Diego Police Department, U.S. Customs and Border Protection and Homeland Security Investigations, for their diligent pursuit of justice in this matter.
19CR4407-BAS IndictmentDEFENDANTS Case Number 19cr4407-BAS
Zhiwei Loop Liao Age: 31 San Diego, CA
(Naturalized U.S. citizen born in China)
Zhimin Liao Age: 33 San Diego, CA
(Naturalized U.S. citizen born in China)
Zhiting Liao Age: 30 San Diego, CA
(Naturalized U.S. citizen born in China)
*Xiamon Zhong Age: 33 China
(Chinese national residing in China)
Phillip Pak Age: 31 Richmond, CA
(U.S. citizen)
Dao Trieu La Age: 29 San Diego, CA
(Naturalized U.S. citizen born in Vietnam)
Mengmeng Zhang Age: 28 San Diego, CA
(Lawful permanent resident. Chinese national)
Tam Thi Minh Nguyen Age: 36 San Diego, CA
(Lawful permanent resident. Vietnamese national)
Deedee Zhu Age: 32 San Diego, CA
(Naturalized U.S. citizen born in China)
Danny Tran Chan Age: 29 San Diego, CA
(U.S. citizen)
*Charley Hsu Age: 39 San Diego, CA
(Chinese national)
Jiaye Jiang Age: 32 San Diego, CA
(Naturalized U.S. citizen born in China)
*Hyo Weon Yang Age: 31 San Francisco, CA
(Naturalized U.S. citizen born in Korea)
Dmitri Pigarov Age: 31 San Diego, CA
(Naturalized U.S. citizen born in Russia)
SUMMARY OF CHARGES
Title 18, U.S.C., Sec. 1349 – Conspiracy to Commit Mail Fraud and Wire Fraud
Maximum penalty: Twenty years in prison and a $12.2 million fine (twice the value of the gross loss to the victim, Apple, Inc.)
Title 18, U.S.C., Sec. 1343 - Wire Fraud;
Maximum penalty: Twenty years in prison and a $12.2 million fine (twice the value of the gross loss to the victim, Apple, Inc.)
Title 18, U.S.C., Sec. 1341 – Mail Fraud;
Maximum penalty: Twenty years in prison and a $12.2 million fine (twice the value of the gross loss to the victim, Apple, Inc.)
Title 18, U.S.C., Sec. 2320 – Conspiracy to Traffic in Counterfeit Goods;
Maximum penalty: Twenty years in prison and $500,000 fine
Title 18, U.S.C., Sec. 1028A – Aggravated Identity Theft;
Maximum penalty: Two years in prison (to run consecutively to any other term of imprisonment)
Title 18, U.S.C., Secs. 1956(a)(2)(A), and 1956(h) – Conspiracy To Launder Money;
Maximum penalty: Twenty years in prison and $500,000 fine
INVESTIGATING AGENCIES
FBI
San Diego Police Department
U.S. Customs and Border Protection
Homeland Security Investigations
San Diego County Sheriff’s Department
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Four Charged in Ongoing Meth Trafficking InvestigationRead the Press Release
PROVIDENCE – An ongoing federal, state, and local law enforcement Project Safe Neighborhoods investigation into the trafficking of crystal methamphetamine (meth) in Rhode Island has to date resulted in the arrest of four individuals, and the seizure of more than 250 grams of crystal meth and two firearms, according to documents unsealed in U.S. District Court today, announced United States Attorney Aaron L. Weisman, Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta, Superintendent of the Rhode Island State Police Colonel James M. Manni, and Warwick Police Chief Colonel Rick Rathbun.
The FBI Safe Streets Gang Task Force, the Rhode Island State Police High Intensity Drug Trafficking Area Task Force, and the Warwick Police Department joint investigation determined that crystal meth was routinely shipped from out-of-state to Providence, and was allegedly being stored and distributed from residences and a storage unit in Providence and from a Warwick motel.
According to the court documents, it is alleged that beginning in at least August 2019, Sean M. Francis, 31, of Providence, began receiving a steady flow of overnight packages containing crystal meth shipped from out-of-state. At least 11 such packages have been identified by law enforcement. It is alleged that Francis distributed the crystal meth to others.
According to court documents, it is alleged that on several occasions Steven Robinson, 47, and Alexa Samoiloff, 50, of Providence, sold crystal meth to others, including to Jacob Abbruzzese, 46, of Cranston. It is alleged in court documents that Abbruzzese sold crystal meth to others.
During the course of the investigation, at least nine alleged drug transactions of between 8 grams and 49.4 grams for between $200 and $1,400 were monitored by law enforcement. The crystal meth was immediately seized by law enforcement following each monitored transaction.
On October 18, 2019, court-authorized searches of Robinson and Samoiloff’s Providence residence and a Providence storage unit rented by Abbruzzese were conducted. Law enforcement seized 41.4 grams of crystal meth, 109 rounds of 9mm ammunition, numerous edged weapons, a crossbow, and items used in the packaging and distribution of crystal meth.
Robinson, Samoiloff, and Abbruzzese were arrested on October 18 on federal criminal complaints charging each with conspiracy to distribute 50 grams or more of methamphetamine and distribution of 5 grams or more of methamphetamine. They were ordered detained in federal custody following initial appearances in U.S. District Court.
On November 7, 2019, law enforcement executed a court-authorized search of Francis’ residence and seized 66.3 grams of crystal meth, a black Taurus handgun accompanied by 14 rounds of .357 ammunition and a speed loader, a colt “Official Police” revolver, a pellet handgun, numerous cellphones, and items used in the packaging and distribution of crystal meth.
Francis was arrested on November 7 and ordered detained in federal custody following an initial appearance in U.S. District Court on Friday on a criminal complaint charging him with possession with intent to distribute 50 grams or more of methamphetamine and possession of a firearm in furtherance of drug trafficking.
A criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorneys Christine D. Lowell and Sandra R. Hebert.
United States Attorney Aaron L. Weisman, Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta, and Warwick Police Chief Colonel Rick Rathbun thank the Newport and Providence Police Departments for their assistance in the investigation.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Fort Wayne Man Sentenced to 84 MonthsRead the Press Release
FORT WAYNE – Brandon J. Britt, age 33, of Fort Wayne, Indiana was sentenced before U.S. District Court Judge Holly A. Brady for possession of a firearm by a convicted felon, announced U.S. Attorney Kirsch.
Britt was sentenced to 84 months in prison followed by 3 years of supervised release.
According to documents in this case, on the evening of April 3, 2019, Britt was the passenger in a vehicle which was stopped for a traffic violation in downtown Fort Wayne, Indiana. The officer conducting the traffic stop observed a handgun protruding from Britt’s pocket. The gun was loaded with a round in the chamber. Britt had previously been convicted of multiple felony offenses, including Dealing in Cocaine or a Narcotic Drug, Unlawful Possession of a Firearm by a Serious Violent Felon and Robbery.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Indiana State Police and the Fort Wayne Police Department. The case was handled by Assistant United States Attorney Sarah E. Nokes.
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Fort Wayne Man Sentenced to 120 MonthsRead the Press Release
FORT WAYNE – William McCloud, age 69, of Fort Wayne, Indiana was sentenced before U.S. District Court Judge Holly A. Brady upon his plea of guilty to possession with intent to distribute crack cocaine and possessing a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Kirsch.
McCloud was sentenced to 120 months in prison followed by 4 years of supervised release.
According to documents in this case, in October 2017, several controlled buys of crack cocaine were conducted with Mr. McCloud at his residence. A search warrant was subsequently obtained and executed on his residence where law enforcement located crack cocaine, multiple firearms and cash. McCloud also has prior conviction in August of 1997 for Aiding in Dealing in Cocaine and a Narcotic Drug in Allen County Superior Court, where he was sentenced to 30 years.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration with the assistance of Allen County Police Department. The case was handled by Assistant United States Attorney Anthony W. Geller.
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Former securities enforcement attorney and general counsel pleads guilty to investment fraudRead the Press Release
ATLANTA – Marc Celello, a former state securities enforcement attorney and General Counsel for a Georgia investment company, has pleaded guilty to conspiring to defraud investors out of over $40 million.
“Marc Celello used his skills as an attorney to help his employer cheat investors out of millions of dollars,” said U.S. Attorney Byung J. “BJay” Pak. “We will continue to work with our law enforcement partners to identify fraudsters who seek to cheat investors out of their hard-earned money.”
“As an attorney Celello should have known the company he worked for was allegedly breaking the law, instead of participating in a scheme that defrauded investors out of their hard earned money,” said Special Agent in Charge of FBI Atlanta, Chris Hacker. “In its dedication to protecting our citizens, the FBI will pursue anyone motivated by personal greed instead of protecting investors.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Celello was the Vice President and General Counsel of a Georgia company named Credit Nation. Credit Nation purchased life insurance policies and subprime automobile loans and offered investors the opportunity to purchase promissory notes for those policies and loans. Celello at times approved of marketing materials stating that the company’s promissory notes offered a 9% rate of return and were “backed by hard asset dollar for dollar.” However, Celello knew that the company was operating at a significant financial loss and that funds were being diverted for undisclosed purposes.
In November 2015, the U.S. Securities and Exchange Commission (“SEC”) filed a federal civil complaint alleging that Credit Nation investors had been defrauded out of millions of dollars. In response to this SEC action, Celello, who had previously been employed as an enforcement attorney for the Georgia Secretary of State’s Securities and Business Regulation Division, approved a letter that went out to investors that provided misleading information about a forensic accountant’s audit of the company.
Credit Nation’s CEO, James Torchia, was previously indicted by a federal grand jury on related fraud and conspiracy charges. Torchia pled not guilty on October 8, 2019, and his case remains pending in federal court. Members of the public are reminded that the indictment against Torchia only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
The Federal Bureau of Investigation is investigating this case. The Atlanta Division Office of the U.S. Securities and Exchange Commission previously brought a civil action against Torchia and Credit Nation in the Northern District of Georgia.
Assistant U.S. Attorneys Thomas J. Krepp and Leanne M. Marek are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.