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Tuesday 12 November 2019
Columbia County Man Sentenced to 37 Months for Heroin and Fentanyl DealingRead the Press Release
ALBANY, NEW YORK – Timothy J. Simpson, Jr., age 41, of Philmont, New York, was sentenced today to 37 months in prison, to be followed by 3 years of supervised release, for heroin and fentanyl trafficking in Columbia County.
The announcement was made by United States Attorney Grant C. Jaquith; Special Agent in Charge Ray Donovan, New York Division, U.S. Drug Enforcement Administration (DEA); and Columbia County Sheriff David P. Bartlett.
In pleading guilty, Simpson admitted that between April 2017 and March 2018, he purchased heroin and fentanyl from a supplier residing in the Bronx, New York. Simpson and the supplier, Saul E. Pacheco, regularly met in the parking lot of a casino in Yonkers, New York. They met so that Pacheco could resupply Simpson with heroin and fentanyl – typically between 40 and 60 grams per meeting. After being supplied with heroin and fentanyl, Simpson drove back to Columbia County and sold the drugs to customers.
On March 22, 2018, Columbia County Sheriff’s Deputies stopped Simpson as he was driving on Route 9H in the Town of Claverack, Columbia County. Simpson was driving back from a meeting with Pacheco in Yonkers.
Deputies located two bags, each containing a powder substance, wrapped in black electrical tape, which Simpson had hidden above his car’s muffler. One bag contained approximately 56.1 grams of heroin. The other bag contained approximately 11.4 grams of fentanyl.
On September 10, 2019, Pacheco was sentenced to 5 years in prison for his role in the conspiracy.
This case was investigated by the DEA and the Columbia County Sheriff’s Office, and was prosecuted by Assistant U.S. Attorney Michael Barnett.
Cibolo Businessman Faces Federal Charges Related to a Scheme to Defraud High School StudentsRead the Press Release
George Alberto Barragan, 45 of Cibolo, TX, faces federal charges in connection with an alleged scheme to steal money from high school students who paid for group travel opportunities to celebrate their graduations, announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
A federal grand jury indictment unsealed today charges Barragan with three counts of mail fraud, four counts of wire fraud and one count of aggravated identity theft.
According to the indictment, Barragan owned and operated several travel agencies, including EB Worldwide, Exhibit Tours and Senior Grad Trips. He was the sole individual in charge of negotiating and contracting with customers, as well as booking and arranging travel accommodations for large groups. Victim groups would pay Barragan by check or online payment portal either in full up front, or provide an initial deposit with a deadline by which payment needed to be completed. Once in possession of victims’s funds, Barragan would make reservations and provide confirmations and itineraries to victims purporting to show that desired travel arrangements had been arranged.
Prior to travel, Barragan would cancel reservations and thus, receive a refund of the victims’s monies into an account he controlled. Barragan never notified his victims of the cancellations. In fact, he kept communicating with his victims after he cancelled their trip, informing them that their travel was still taking place. In at least two instances, large groups of students arrived at the designated time and location to begin their trip, only to find out that their trip had been cancelled. The indictment also specifically alleges that in April 2018, Barragan illegally used a credit card number and personal information provided by a customer to make a $6,000 payment for a set of hotel rooms in San Diego, CA, for an unrelated client.
According to the indictment, Barragan perpetrated his scheme on no less than six different high school student groups between May 2015 and June 2018, resulting in an approximate total loss of $160,000.
Following his initial appearance today, Barragan was released on bond. Upon conviction, Barragan faces up to a mandatory two years in federal prison for aggravated identity theft and up to 20 years in federal prison on each of the remaining mail and wire fraud charges.
The FBI investigated this case. Assistant U.S. Attorney Justin Chung is prosecuting this case on behalf of the government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is innocent until proven guilty in a court of law.
Chinese National Pleads Guilty to Committing Theft of Trade SecretsRead the Press Release
Hongjin Tan, a 35 year old Chinese national and U.S. legal permanent resident, pleaded guilty Tuesday in federal court to committing theft of trade secrets from his employer, a U.S. petroleum company.
Tan pleaded guilty to theft of a trade secret, unauthorized transmission of a trade secret, and unauthorized possession of a trade secret. The defendant stole the information from a U.S.-based petroleum company regarding the manufacture of a “research and development downstream energy market product” that is worth more than $1 billion.
“China’s economic aggression poses a threat to America’s emerging high-technology industries. Industrial spies like Hongjin Tan engage in espionage to steal American trade secrets and intellectual property born out of the innovation that is innate in our free market system,” said U.S. Attorney Trent Shores for the Northern District of Oklahoma. “Thanks to a vigilant company and the investigative efforts of the FBI, Hongjin Tan was caught red handed and prosecuted. American ingenuity and know-how are the envy of the international market, and the U.S. Attorneys community will work to protect our economic infrastructure.”
“Tan’s guilty plea continues to fill in the picture of China’s theft of American intellectual property,” said Assistant Attorney General for National Security John C. Demers. “The Department launched its China Initiative to battle precisely the type of behavior reflected in today’s plea—illegal behavior that costs Americans their jobs--and we will continue to do so.”
"Trade secret theft is a serious crime which hurts American businesses and taxpayers. The FBI will continue to protect our country's industries from adversaries who attempt to steal valuable research and technology," said FBI Special Agent in Charge Melissa Godbold of the Oklahoma City Field Office.
Tan was employed as an associate scientist for the U.S. petroleum company starting in June 2017 until December 2018. The defendant was assigned to work within a group at the company with the goal of developing next generation battery technologies for stationary energy storage, specifically flow batteries. In his plea agreement, Tan admitted to intentionally copying and downloading research and development materials without authorization from his employer.
On Dec. 11, 2018, Tan used a thumb drive to copy hundreds of files. He subsequently turned in his resignation and was escorted from the premises on Dec. 12, 2018. Later that day, he returned the thumb drive, claiming that he had forgotten to do so before leaving his employer’s property. Upon examination, it was discovered that there was unallocated space on the thumb drive, indicating five documents had previously been deleted. Investigators with the FBI searched Tan’s premises and found an external hard drive. They discovered that the same five missing files from the thumb drive had been downloaded to the hard drive. Tan maintained the files on a hard drive so he could access the data at a later date. Further accessing the material would have been financially advantageous for Tan but caused significant financial damage to his Oklahoma employer.
U.S. District Judge Gregory K. Frizzell presided over the plea hearing and set sentencing for Feb. 12, 2020.
The FBI conducted this investigation. Assistant U.S. Attorney Joel-lyn A. McCormick of the Northern District of Oklahoma and Trial Attorney Matthew J. McKenzie of the National Security Division’s Counterintelligence and Export Control Section (CES) are prosecuting the case, with assistance from Trial Attorney Matthew R. Walczewski and Assistant Deputy Chief Brian J. Resler of the Criminal Division’s Computer Crimes and Intellectual Property Section (CCIPS).
Chinese National Pleads Guilty to Committing Theft of Trade SecretsRead the Press Release
Hongjin Tan, a 35 year old Chinese national and U.S. legal permanent resident, pleaded guilty Tuesday in federal court to committing theft of trade secrets from his employer, a U.S. petroleum company.
Tan pleaded guilty to theft of a trade secret, unauthorized transmission of a trade secret, and unauthorized possession of a trade secret. The defendant stole the information from a U.S.-based petroleum company regarding the manufacture of a “research and development downstream energy market product” that is worth more than $1 billion.
“Tan’s guilty plea continues to fill in the picture of China’s theft of American intellectual property,” said Assistant Attorney General for National Security John C. Demers. “The Department launched its China Initiative to battle precisely the type of behavior reflected in today’s plea —illegal behavior that costs Americans their jobs — and we will continue to do so.”
“China’s economic aggression poses a threat to America’s emerging high-technology industries. Industrial spies like Hongjin Tan engage in espionage to steal American trade secrets and intellectual property born out of the innovation that is innate in our free market system,” said U.S. Attorney Trent Shores for the Northern District of Oklahoma. “Thanks to a vigilant company and the investigative efforts of the FBI, Hongjin Tan was caught red handed and prosecuted. American ingenuity and know-how are the envy of the international market, and the U.S. Attorneys community will work to protect our economic infrastructure.”
"Trade secret theft is a serious crime which hurts American businesses and taxpayers. The FBI will continue to protect our country's industries from adversaries who attempt to steal valuable research and technology," said FBI Special Agent in Charge Melissa Godbold of the Oklahoma City Field Office.
Tan was employed as an associate scientist for the U.S. petroleum company starting in June 2017 until his arrest in December 2018. The defendant was assigned to work within a group at the company with the goal of developing next generation battery technologies for stationary energy storage, specifically flow batteries. In his plea agreement, Tan admitted to intentionally copying and downloading research and development materials without authorization from his employer.
On Dec. 11, 2018, Tan used a thumb drive to copy hundreds of files. He subsequently turned in his resignation and was escorted from the premises on Dec. 12, 2018. Later that day, he returned the thumb drive, claiming that he had forgotten to do so before leaving his employer’s property. Upon examination, it was discovered that there was unallocated space on the thumb drive, indicating five documents had previously been deleted. Investigators with the FBI searched Tan’s premises and found an external hard drive. They discovered that the same five missing files from the thumb drive had been downloaded to the hard drive. Tan maintained the files on a hard drive so he could access the data at a later date. Further accessing the material would have been financially advantageous for Tan but caused significant financial damage to his Oklahoma employer.
U.S. District Judge Gregory K. Frizzell presided over the plea hearing and set sentencing for Feb. 12, 2020.
The FBI conducted this investigation. Assistant U.S. Attorney Joel-lyn A. McCormick of the Northern District of Oklahoma and Trial Attorney Matthew J. McKenzie of the National Security Division’s Counterintelligence and Export Control Section (CES) are prosecuting the case, with assistance from Trial Attorney Matthew R. Walczewski and Assistant Deputy Chief Brian J. Resler of the Criminal Division’s Computer Crimes and Intellectual Property Section (CCIPS).
Charlotte Private School Owner Is Sentenced to Prison for Scheme Involving Student VisasRead the Press Release
CHARLOTTE, N.C. – Evelyn P. Mack, the owner and principal of a Charlotte-area private school, was sentenced to 18 months in prison on charges of conspiracy to harbor aliens, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max O. Cogburn, Jr. also ordered Mack, 65, of Charlotte, to serve one year under court supervision upon completion of her prison term.
Ronnie Martinez, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Charlotte, and Edwin Guard, Special Agent in Charge of the Washington Field Office of the U.S. Department of State’s Diplomatic Security Service (DSS), join U.S. Attorney Murray in making today’s announcement.
According to filed court documents and today’s sentencing hearing, from March 2011 to December 2016, Mack was the owner, operator and principal of the Evelyn Mack Academy (EMA), a private school located in Charlotte. Court records show that EMA was approved and authorized by the Department of Homeland Security’s (DHS) Student and Exchange Visitor Program (SEVP) to enroll foreign national students in grades nine through twelve, with Mack as the school’s Primary Designated School Official (PDSO).
According to court records, as the school’s PDSO, Mack had the authority to issue I-20 forms for foreign national students to enroll in and attend EMA on a full-time basis. The I-20 forms are necessary for potential foreign national students to obtain their F-1 student visas. In addition to preparing immigration forms and other necessary documents for incoming foreign students, Mack was also responsible for creating and maintaining student records for new and existing students in the Student and Exchange Visitor Information System, used by DHS to ensure that foreign national students in the United States are in compliance with the terms and conditions of their F-1 visa status.
Court records show that Mack conspired with other individuals, many of whom were basketball coaches and recruiters with organizations in the United States and other countries, to use Mack’s status as PDSO to admit foreign national students without complying with the terms of the F-1 student visa program. As part of the scheme, Mack falsely represented that approximately 75 foreign students were full-time students at EMA, when in fact the majority of the students, who were minors, were mostly recruited as athletes by the co-conspirators. Mack was paid by her co-conspirators an administrative enrollment fee of $1,000 per student and other benefits, in exchange for her participation in the scheme.
On June 25, 2018, Mack pleaded guilty to conspiracy to harbor aliens. She will be ordered to report to the federal Bureau of Prisons upon designation of a federal facility to begin serving her sentence. All federal sentences are served without the possibility of parole.
U.S. Attorney Murray thanked the ICE-HSI, and Greensboro Resident Office of the Diplomatic Security Service, for their investigation of this case.
Assistant U.S. Attorney Kenneth Smith, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Charlotte Man Sentenced to Prison for Conspiring to Defraud the GovernmentRead the Press Release
A Charlotte, North Carolina, man was sentenced to 46 months in prison today for conspiracy, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney R. Andrew Murray for the Western District of North Carolina.
In September 2018, a jury convicted Arthur Joseph Gerard, III, of conspiring to defraud the United States. According to the evidence presented at trial, between October 2007 and May 2016, Gerard conspired with his client, Reuben DeHaan, to hide from the Internal Revenue Service (IRS) over $2.7 million in gross receipts DeHaan earned through his holistic medicine business.
To conceal DeHaan’s income from the IRS, Gerard helped DeHaan funnel his income through multiple layers of straw companies and bank accounts held by nominees. Gerard devised the scheme, caused the organization of straw companies in several states, recruited his friend to serve as a nominee on DeHaan’s bank accounts, and at times, cashed checks for DeHaan. Gerard charged DeHaan a fee of between $1,000 and $2,500 for each straw company.
Gerard also assisted DeHaan in preparing and filing false documents with the IRS. Gerard helped DeHaan file false 2005 and 2006 tax returns that fraudulently reported more than $200,000 in withheld federal income taxes. Gerard also assisted DeHaan in creating and filing false liens against DeHaan’s property to give the appearance that there was no equity in DeHaan’s property for IRS debt collection purposes. In total, Gerard’s conduct caused a tax loss to the IRS of approximately $560,000.
In addition to the term of imprisonment imposed, Gerard was ordered to serve three years of supervised release and to pay restitution in the amount of $567,665 to the IRS.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Murray commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney William Miller and Trial Attorney Mara Strier of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Brothers from India Facing Charges Related to a Marriage Fraud SchemeRead the Press Release
PITTSBURGH, PA – Two brothers residing in the Pittsburgh-area have been indicted by a federal grand jury in Pittsburgh on charges of conspiracy and visa fraud, United States Attorney Scott W. Brady announced today.
The three-count Indictment, returned on Nov. 6 and unsealed Friday, named Rajinder Singh, 43, of Pittsburgh, and Makhan Singh, 53, of Monroeville, as defendants.
According to the Indictment, Rajinder and Makhan Singh, who are brothers and citizens of India, entered into a conspiracy in 2011 with a woman known to the grand jury as D.H. to enter into a sham marriage for the purpose of evading immigration laws The court was further informed that Makhan introduced D.H. to his brother and paid her to marry him and to make false statements to the United States Citizenship and Immigration Service (CIS). The "couple" further staged pictures and opened joint bank accounts, and Makhan made payments for D.H.’s benefit, including paying for car insurance for a vehicle jointly registered to D.H. and Rajinder in order to falsely document their relationship and marriage. The Indictment also alleges that Rajinder made false statements to CIS on or about March 11, 2016 and December 14, 2017 when he stated that he did not live at a separate address from D.H., when they had lived separately.
The law provides for a maximum total sentence of 15 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. The defendants remain on bond pending the resolution of the case
Assistant United States Attorney Christy C. Wiegand is prosecuting this case on behalf of the government.
The Department of Homeland Security conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Brandon Aria, A/K/A "the Drug Llama," Sentenced to 9 Years for Distributing Fentanyl on the Dark WebRead the Press Release
Earlier today, in the United States District Court for the Southern District of Illinois, Brandon
Arias (a/k/a “The Drug Llama”) was sentenced to 108 months in federal prison for conspiring to
distribute fentanyl throughout the United States via the “dark web.”1 The nine-year sentence
represents the culmination of a prosecution that began in January 2019, when a superseding
indictment was filed against Arias (34) and his co-conspirator, Melissa Scanlan (32).The superseding indictment charged Arias with conspiracy to distribute fentanyl, illegally
distributing fentanyl (five counts), selling counterfeit drugs, and misbranding drugs. He pleaded
guilty to all eight charges back in July. Scanlan has also pleaded guilty to her role in the
conspiracy, as well as her participation in an international money laundering conspiracy and a
separate count of aiding the distribution of fentanyl resulting in death. She is scheduled to be
sentenced on Feb. 10, 2020. Both Arias and Scanlan have been in federal custody since their arrest
earlier this year.According to court filings, Arias and Scanlan created an account on “Dream Market,” a dark web
marketplace where users buy and sell illegal substances and services, and sold substantial
quantities of narcotics under the moniker, “The Drug Llama.” The pair ran their illicit operation
from their hometown of San Diego, California. During their nearly two-year run, Arias was actively
involved in Scanlan’s distribution of 1,000 fentanyl and acetyl fentanyl pills every week. They
raked in over $100,000 from their dark web drug trafficking and split the proceeds evenly.Fentanyl is a highly addictive and oftentimes lethal opioid painkiller.
In recent comments, U.S. Attorney Steven D. Weinhoeft assailed the culture of criminality that
exists on the dark web. “Criminals like Brandon Arias who recklessly flood our communities with
opioids may think they can evade detection in the shadowy corners and back alleys of the internet.
But they will find no quarter there. Where they go, we will follow. With the collaboration of
outstanding investigators at our partner agencies, we will use every tool and method available to
find these people and prosecute them to the fullest extent of the law.”Footnote 1: The dark web is an underground computer network that is unreachable by traditional search engines and users. This false cloak has led to a proliferation of dark web marketplaces, like the one used by Arias.
“Illicit opioid distribution, whether online or through conventional drug distribution methods, and
the resulting overdoses and deaths are a continuing national crisis; those who contribute to that
crisis through their illegal actions will be brought to justice,” said Special Agent in Charge
Charles L. Grinstead, FDA Office of Criminal Investigations Kansas City Field Office. “We are fully
committed to disrupting and dismantling illegal prescription drug distribution networks that misuse
the internet at the expense of public health and safety.”“Drug traffickers who operate from the dark corners of the internet are not immune from arrest and
prosecution,” stated DEA Special Agent in Charge William Callahan of the St. Louis Division. “The
men and women of the DEA and our law enforcement partners are well positioned to investigate,
locate, and arrest cyber drug traffickers, and their co-conspirators, who spread their poison in
the Greater St. Louis Metropolitan area, no matter where they operate from.”This case was part of a months-long, coordinated national operation involving the Food and Drug
Administration (FDA) Office of Criminal Investigations (OCI), the Drug Enforcement Administration
(DEA), the United States Postal Inspection Service, the Department of Homeland Security, U.S.
Customs and Border Protection, the U.S. Attorney’s Office for the Southern District of California,
and the U.S. Attorney’s Office for the Southern Dist ict of Illinois. Assistant U.S.
Attorney Derek J. Wiseman is the prosecuting attorney on the case.
Atomwaffen Division Member Pleads Guilty to Firearms ChargeRead the Press Release
ALEXANDRIA, Va. – A member of the Atomwaffen Division, a white supremacist organization, pleaded guilty today to possessing firearms while being an unlawful drug user and making a false statement in order to illegally purchase a firearm.
“Marijuana and firearms are a potentially deadly mix,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “If you are a drug user, you are prohibited by federal law from possessing a firearm. Simple as that.”
According to court documents, in October 2017, Andrew Thomasberg, 21, of McLean, purchased a semiautomatic rifle and claimed to be the true purchaser. In fact, Thomasberg knew this statement was false and that he was purchasing the gun for a third party. He transferred that firearm to that third party after purchasing it. Thomasberg also possessed at least four firearms while unlawfully using controlled substances, including marijuana, psilocybin mushrooms, and opium.
"Thomasburg lied in order to illegal purchase a firearm," said Timothy R Slater, Assistant Director in Charge of the FBI's Washington Field Office. "The FBI works with our partners to take criminals possessing illegal firearms off the streets to ensure a safer community for all citizens."
According to court documents and testimony, Thomasberg has association with white supremacist organizations, such as Vanguard America and Atomwaffen Division.
Thomasberg pleaded guilty to making a material false statement in relation to the purchase of a firearm and to possessing firearms while being an unlawful user of or addicted to controlled substances. He faces a maximum penalty of 20 years in prison when sentenced on Feb 28, 2020. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Timothy R. Slater, Assistant Director of the FBI’s Washington Field Office, made the announcement after U.S. District Judge Liam O’Grady accepted the plea. Special Assistant U.S. Attorney Anthony W. Mariano and Assistant U.S. Attorney Ronald L. Walutes, Jr. are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-337.
19 Davenport Area Men Charged with Federal Gun and Robbery ViolationsRead the Press Release
DAVENPORT, Iowa – Nineteen individuals are facing 38 criminal charges as part of federal gun, robbery and drug investigations announced United States Attorney Marc Krickbaum. Sixteen Indictments by a Federal Grand Jury were filed in the last eight weeks in United States District Court in Davenport, Iowa. This is in addition to the 25 individuals charged for federal violations of gun crimes announced in August 2019 by United States Attorney Marc Krickbaum.
All of the investigations occurred in Scott County, Iowa, and involved the seizure of multiple firearms and drugs. The public is reminded that charges contain only accusations and are not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
“The reduction of violent crime is our highest priority,” said Davenport Police Chief Paul Sikorski. “Through effective collaboration and partnerships with our Federal, State and Community partners, we have a shared focus in vigorously investigating and pursuing violent offenders. All areas of our Department are committed and focused on reducing violent crime. Our Gun Investigation Unit has been instrumental in our violent crime reduction strategy with the seizure of 62 firearms and the service of 58 search warrants in the first six months of existence. It is our solid partnerships with our Federal and Local prosecutors and law enforcement agencies, as well as initiatives such as Project Safe Neighborhoods and the National Public Safety Partnership where we share an effective violent crime strategy. This year Davenport has experienced a 5% reduction in violent crime.”
“In the past few years our office in Davenport has substantially increased prosecutions of violent criminals, with a focus on those who illegally use and possess guns,” said United States Attorney Krickbaum. “That has been possible only because of our partnerships with law enforcement, which are as strong today as they have ever been.”
These cases are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. The cases were investigated by the Davenport Police Department, Scott County Sheriff’s Office, Bettendorf Police Department, Federal Bureau of Investigation, and the Drug Enforcement Administration. The cases are being prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
To date, 13 defendants have been arrested and are outlined below. The other cases remain sealed pending arrest.
DEFENDANT
Darrell Kenneth Holloway Case Number 3:19-cr-92
SUMMARY OF CHARGES
Title 18, U.S.C. § 922(g)(1) – Felon in Possession of a Firearm
Maximum Penalty is 10 years in custody
Title 21, U.S.C. § 841(a)(1), 841(b)(1)(C) – Possession with Intent to Distribute a Controlled Substance
Maximum Penalty is 20 years in custody
DEFENDANT
Paris Larue Davis Case Number 3:19-cr-100
SUMMARY OF CHARGES
Title 18, U.S.C. § 841(a)(1), 841(b)(1)(C) – Possession With Intent to Distribute a Controlled Substance
Maximum Penalty is 20 years in custody
Title 18, U.S.C. § 924(c)(1)(A)(i) – Possession of a Firearm During and In Relation to a Drug Trafficking Crime
Maximum Penalty is life in custody; 5 year mandatory minimum
DEFENDANT
Alex Rogelio Barrera Case Number 3:19-cr-78
SUMMARY OF CHARGES
Title 18, U.S.C. § 1951 – Interference with Commerce by Robbery
Maximum Penalty is 20 years in custody
Title 18, U.S.C. § 924(c)(1)(A)(ii) – Use and Carry a Firearm During and In Relation to a Crime of Violence
Maximum Penalty is life in custody; 5 year mandatory minimum
DEFENDANT
James Curtis Pryor Case Number 3:19-cr-78
SUMMARY OF CHARGES
Title 18, U.S.C. § 1951 – Interference with Commerce by Robbery
Maximum Penalty is 20 years in custody
DEFENDANT
Christopher Lee Schultz Case Number 3:19-cr-79
SUMMARY OF CHARGES
Title 18, U.S.C. § 2113(a) – Armed Bank Robbery (Three Counts)
Maximum Penalty is 20 years in custody per count
DEFENDANT
Benjamin David Watkins Case Number 3:19-cr-79
SUMMARY OF CHARGES
Title 18, U.S.C. § 2113(a) – Armed Bank Robbery (Two Counts)
Maximum Penalty is 20 years in custody per count
DEFENDANT
Alexander Rene Holcomb Case Number 3:19-cr-70
SUMMARY OF CHARGES
Title 21, U.S.C. § 846 – Conspiracy to Distribute a Controlled Substance
Maximum Penalty is life imprisonment; 10 year mandatory minimum
Title 18, U.S.C. § 922(g)(1) – Felon in Possession of a Firearm
Maximum Penalty is 10 years in custody
DEFENDANT
Curlie Marque Quarterman Case Number 3:19-cr-85
SUMMARY OF CHARGES
Title 18, U.S.C. § 1951 – Interference with Commerce by Robbery
Maximum Penalty is 20 years in custody
DEFENDANT
James Lawrence Salkil Case Number 3:19-cr-86
SUMMARY OF CHARGES
Title 18, U.S.C. § 922(g)(1) – Felon in Possession of a Firearm
Maximum Penalty is 10 years in custody
Title 21, U.S.C. § 844(a) – Possession of a Controlled Substance
Maximum Penalty is 1 year in custody
DEFENDANTS
Isaiah Ramon Henderson Case Number 3:19-cr-94
Jaquan Leonte Jones Case Number 3:19-cr-95
Justin Lee Watson Case Number 3:19-cr-96
Tray Everett Miller Case Number 3:19-cr-101
SUMMARY OF CHARGES
Title 18, U.S.C. § 922(g)(1) – Felon in Possession of a Firearm
Maximum Penalty is 10 years in custody
Monday 11 November 2019
Statement from Attorney General William P. Barr on Veterans DayRead the Press Release
Attorney General William P. Barr issued the following statement:
"On Veterans Day, we honor the brave Americans who, from the founding of our nation to the present, have sacrificed so much to answer the call to service. The American people are deeply fortunate that there have been people at every crossroad of history willing to stand up to safeguard our great nation. At the Department of Justice, we recognize that our critical work has only been possible because of the courageous Americans who have given so much while serving at home and abroad. We thank our veterans now and always for their contributions to safety, security, and peace."
Louisville Metro Police Officer’s Credit Union Vice President Sentenced for FraudRead the Press Release
LOUISVILLE, Ky. – United States District Court Judge Joseph H. McKinley, Jr. has sentenced Josephine M. Crowe to 132 months’ imprisonment followed by 3 years supervised release. He also ordered restitution in the amount of $3,049,025 for fraud and aggravated identity theft, announced United States Attorney Russell Coleman.
“The outcome in this case was the result of some outstanding investigation by the FBI and one of our finest career federal prosecutors,” said U.S. Attorney Russell Coleman.
Crowe, 46, of Louisville, Kentucky, was charged in a criminal Information with one count of financial institution fraud and one count of aggravated identity theft as part of a scheme to defraud the Louisville Metro Police Officer’s Credit Union of over $3 million during a four year period.
According to a Sentencing Memo, beginning no later than January 2013, and continuing to on or about November 2017, Crowe, as the Vice President of the Metro Police Officer’s Credit Union stole over $3 million. She used access to the Credit Union’s funds and information granted to her by virtue of her position as Vice President to devise and execute a scheme to steal cash from the Credit Union’s vault and teller drawers, to transfer Credit Union funds into accounts belonging to herself and certain of her family members, and to make payments on certain unwitting Credit Union members’ loans with Credit Union funds that did not belong to the members for whose benefit they were credited. Crowe also created and recorded fictitious, unauthorized loans at the Credit Union and used the proceeds of these loans to issue an Official Check, which she then directed individuals to cash at local pawn shops or financial institutions. The defendant would then place these cash proceeds in the Credit Union’s vault and teller drawers to cover up the cash missing due to her previous thefts. In order to create and record these fictitious loans, the defendant knowingly misused the means of identification of many members of the Credit Union.
In order to compensate for the depletion of cash the defendant engaged in various methods to obtain cash for day-to-day operations including: instructing Credit Union employees, members, and others to withdraw cash from an ATM using either a debit card she provided or the individual’s personal debit card and return the cash to her for Credit Union operating needs; (b) obtaining credit card cash advances from members’ credit cards; (c) wire transferring funds to external accounts at various other financial institutions and then obtaining cash from the transfer; and (d) recording fictitious, unauthorized loans and using the proceeds of these loans to issue an Official Check, which she directed individuals to cash at local pawn shops or financial institutions and to return the cash proceeds to her so that she could then place it in the Credit Union’s vault and teller drawers.
Crowe took numerous steps to conceal her scheme to defraud from detection by the Credit Union and others, according to the Sentencing Memo. During the course of the scheme the defendant engaged in elaborate check kiting wherein she issued unauthorized Official Checks from certain members’ accounts at the Credit Union and deposited those Official Checks into other members’ accounts, all without the members’ knowledge, and continued issuing new checks to cover insufficient funds notices on the original checks when she overdrew the members’ accounts. As the funds that were purportedly on deposit for these Official Checks were largely non-existent, over $675,000 of checks were returned for insufficient funds when the defendant’s scheme was uncovered and her kiting of checks brought to a halt. The defendant also manipulated the books and records of the Credit Union to conceal her thefts from the Credit Union and make it appear that the fraudulent loan agreements, related documents, and subsequently generated loans were legitimate contracts and loans. Among other things, the defendant deleted information from and added false information to files, manipulated the Credit Union’s general ledger in various ways, and manipulated members’ accounts and account statements to conceal unauthorized changes she had made to the accounts. When the defendant’s scheme was discovered by the Credit Union and brought to an end in November 2017, the defendant took further steps to attempt to conceal her fraudulent activity even after she had been suspended and removed from her position, including remotely accessing the Credit Union’s data processing system, making changes to the general ledger, and deleting significant files and information from her computer at the Credit Union.
Crowe’s scheme to defraud had dramatic consequences. In December 2017, the Credit Union was placed into conservatorship by the National Credit Union Association (“NCUA”) and considerable efforts were undertaken to untangle the defendant’s scheme, address the harms it caused, and correct the operational weaknesses the defendant had created at the Credit Union. Ultimately, as a result of the scheme, the Credit Union suffered catastrophic losses, was rendered insolvent with no prospect for restoring viable operations, and had to be liquidated by the NCUA. Due to fraudulent activity within their accounts as a result of defendant Crowe’s criminal conduct and other record keeping errors, 247 member accounts had to be written off by the NCUA for a loss of almost $3.9 million.
The case was prosecuted by Assistant United States Attorney Stephanie Zimdahl and was investigated by the Federal Bureau of Investigation (FBI).
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Broken Arrow Man Convicted of Online ExtortionRead the Press Release
A Broken Arrow man pleaded guilty Friday in U.S. District Court to extorting a woman by threatening to post nude photographs of her online, announced U.S. Attorney Trent Shores.
Ivan David Arroyo III, 27, pleaded guilty to interstate communication with intent to extort. In March 2018, Arroyo sent messages from three Instagram accounts containing nude photographs of the victim. In the messages, he told the victim to send more suggestive photographs of herself or he would post the nudes publicly, thus harming her reputation. The woman refused.
“Disturbingly, sextortion is becoming increasingly more frequent,” said U.S. Attorney Trent Shores. “Sexual predators extort, manipulate and taunt their victims online hoping the supposed anonymity of the internet will help conceal their identity and their sick crimes. But thanks to brave victims who come forward and the excellent work of law enforcement officials, we are able to follow the digital footprint of these sextortionists and hold them accountable.”
U.S. District Judge Claire V. Eagan set sentencing for Feb. 10, 2020.
The Cherokee Nation Marshal Service and FBI conducted the investigation. Assistant U.S. Attorney Shannon Cozzoni is prosecuting the case.
Friday 8 November 2019
Waterbury Man Sentenced for Illegal Gun PossessionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that RYAN GRAY, 24, of Waterbury, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 15 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm.
According to court documents and statements made in court, on January 30, 2019, Gray possessed two loaded handguns in Waterbury.
Grays’ criminal history includes state felony convictions for firearms, robbery 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.
Gray has been detained since his arrest by Waterbury Police on January 30, 2019. On August 8, 2019, he pleaded guilty to one count of possession of a firearm by a convicted felon.
This matter was investigated by the Bureau of Alcohol, Tobacco Firearms and Explosives and the Waterbury Police Department. The case was prosecuted by Assistant U.S. Attorney Heather Cherry.
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.
Vancouver, Washington, man charged with possessing and distributing a controlled substance manufactured in ChinaRead the Press Release
Tacoma – A Vancouver, Washington, man who allegedly ran a drug trafficking operation out of his mobile home and storage facilities throughout the South Sound region was arrested November 7, 2019, on a complaint charging him with two counts of possession of alpha-Pyrrolodinopentiophenone with intent to distribute. HARLEY SKYBERG, 40, of Vancouver, Washington, will make his initial appearance in U.S. District Court in Tacoma at 2:30 PM today. The controlled substance is known as alpha-PVP or ‘bath salts’. The arrest and charges follow a lengthy investigation by the U.S. Postal Inspection service that traced packages from Chehalis, Washington, to addresses throughout the U.S.
According to the criminal complaint, SKYBERG operated a website ‘wickedherbals.guru’ that offered a variety of bath salt substances for sale with names such as “White Water Rapid,” “White Lightening,” “High Octane,” “Snowman,” “Wicked Yeti,” “Scooby Snax,” “Klimax,” “White Tiger,” “Kush Extra,” and “Supergirl.” The U.S. Postal Inspection Service (USPIS) intercepted a variety of packages allegedly mailed by SKYBERG that contained white powdery substances with those names. The substances contained various levels of chemicals known as ‘bath salts.’ Law enforcement also determined that SKYBERG was obtaining his chemicals from China and intercepted at least one package destined for his post office box in Chehalis. Investigators searched three storage lockers SKYBERG appears to have rented in connection with his drug trafficking activities. The storage facilities were in Lacey, Kelso, and Vancouver, Washington.
At the time of the arrest, law enforcement seized four 27-gallon tubs of substances consistent with ‘bath salts,’ as well as a capsule-filling device and empty packaging from shipments from China.
Possession of alpha-Pyrrolidinopentiophenone with intent to distribute is punishable by up to 20 years in prison and $1,000,000 fine.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the U.S. Postal Inspection Service (USPIS) and is being prosecuted by Assistant United States Attorney Seungjae Lee.
skyberg_complaint.pdfUndocumented alien sentenced for assault on federal officersRead the Press Release
LAREDO, Texas – A 24-year-old man from Zacatecas, Mexico, has been ordered to federal prison following his conviction of assaulting three Border Patrol (BP) agents, announced U.S. Attorney Ryan K. Patrick. Luis Gustavo Ramirez-Saucedo pleaded guilty June 25.
Today, U.S. District Judge Diana Saldana handed Ramirez-Saucedo a 33-month sentence. Not a U.S. citizen, he is expected to face removal proceedings following the sentence. At the hearing, the court heard additional testimony from three BP agents who testified as to how they were assaulted. Ramirez-Saucedo testified that he only intended to flee.
Authorities were working their assigned duties in Laredo during the late evening of March 29 when they responded to an alert of a large group crossing the Rio Grande River from Mexico. They made contact with various illegal aliens in the 20-person group, one of whom was Ramirez-Saucedo.
Soon after, Ramirez-Saucedo violently resisted the efforts of three BP agents to apprehend him, striking one in the face with his hand. Ramirez-Saucedo later assaulted another agent by throwing a ladder at him which struck him in the arms. He assaulted a third agent by striking him in the face with his forearm, causing his nose to begin bleeding.
Following his apprehension, Ramirez-Saucedo admitted he was a citizen or national of Mexico with no authority to be in or to enter the United States and had just entered the United States illegally.
Ramirez-Saucedo has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI and BP conducted the investigation. Assistant U.S. Attorney Francisco J. Rodriguez prosecuted the case.
U.S. Attorney’s Office Launches Law Enforcement Reading ProgramRead the Press Release
United States Attorney Christina E. Nolan announced today the rollout of a Law Enforcement Reading Program. The U.S. Attorney’s Office created this program for purposes of outreach to children in rural communities. Under the program, local police officers will read a book to students in grades 1 through 3 in the classroom, then engage in open-ended discussion of the content, themes, and lessons. Book topics and themes will range from personal safety and character building to good citizenship and family life. Students will receive copies of the book to begin their own personal library.
The goal of this program is to build trust, and foster positive relationships and interactions between law enforcement and young children. Sadly, too often little children have formative experiences with police officers only in times of crisis and during responses to emergency calls; these difficult memories understandably color their view of law enforcement as they grow older. The reading program represents an attempt to shift this dynamic, by introducing children to their police officer protectors in the positive, peaceful, and safe setting of the schoolhouse.
The first reading will occur in Dover, Vermont on November 12, with Dover police officers conducting the reading. Other readings are scheduled to occur in Thetford and Royalton this month. The U.S. Attorney’s Office thanks the local participating police departments for their support and contribution.
U.S. Attorney Nolan praised her office’s Law Enforcement Coordinator, Kraig LaPorte, for designing and implementing this creative youth outreach program, tailored to the needs of Vermont: “With this program, we promote children’s trust and confidence in our brave men and women in uniform, while also helping to nurture and educate them and jump-start their home libraries. We intend to share the concept, which advances several important goals, with our counterparts across the country. Through our charging decisions and our outreach, the U.S. Attorney’s Office will continue to make the well-being of children – the future of Vermont – our highest priority. I thank local law enforcement in Vermont for supporting this program and recognizing its importance.”
Two Men Sentenced in Rowan County Drug Distribution ConspiracyRead the Press Release
GREENSBORO, N.C. – A Rowan County man and a resident of Cartersville, Georgia were each sentenced to prison for acts committed in a conspiracy to distribute methamphetamine in Salisbury, announced Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina.
DANIEL DEWAYNE WOOD, 41, of Rockwell, N.C., pleaded guilty on April 24, 2019, to one count of possession with intent to distribute 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine. WOOD was sentenced on November 6, 2019, by United States District Judge William L. Osteen, Jr.to 100 months’ imprisonment, followed by 3 years of supervised release.
ROBERT EARL HOLCOMB, age 64, pleaded guilty on March 8, 2019, to one count of conspiracy to distribute methamphetamine. HOLCOMB was sentenced on November 7, 2019, by United States District Judge N. Carlton Tilley, Jr. to 60 months of imprisonment, followed by 3 years of supervised release.
Both WOOD and HOLCOMB were among 60 defendants charged as part of a large-scale, multi-state methamphetamine distribution conspiracy.
These cases were investigated by the Rowan County Sheriff’s Office and the Department of Homeland Security, and prosecuted by Assistant United States Attorney Terry M. Meinecke for the Middle District of North Carolina.
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Two Former Owners of Binary Options Company and 13 Other Individuals Charged in $140 Million Fraud SchemeRead the Press Release
Fifteen individuals, including two former company owners, were charged in a superseding indictment unsealed today for their alleged participation in a scheme to defraud investors in the United States and worldwide by fraudulently marketing approximately $140 million in financial instruments known as “binary options,” announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Assistant Director in Charge Timothy R. Slater of the FBI’s Washington Field Office.
Yakov Cohen, 27; Yosef Herzog, 54; Ori Maymon, 33; Nissim Alfasi, 33; Elad Bigelman, 37; Runal Jeebun, 29; Sabrina Elofer, 28; Afik Tori, 27; Anog Maarek, 28; Oron Montgomery, 38; David Barzilay, 41; Gilad Mazugi, 36; Hadas Ben Haim, 34; Yousef Bishara, 32; and Nir Erez, 29, all current or former residents of Israel, were charged in an indictment returned in the District of Maryland with one count of conspiracy to commit wire fraud and three counts of wire fraud. Maarek appeared Friday before U.S. Magistrate Judge Timothy J. Sullivan in the District of Maryland. Maarek was extradited from Hungary, after his arrest in September 2019, by Hungarian law enforcement.
The indictment alleges that beginning in 2014, the defendants and their co-conspirators fraudulently sold and marketed binary options to investors located in the United States and throughout the world through two websites, known as BinaryBook and BigOption. The indictment alleges that the defendants and their co-conspirators all worked for an Israel-based company called Yukom Communications, a purported sales and marketing company. The indictment further alleges that Cohen and Herzog had ownership interests in Yukom Communications and other related entities that were used to perpetrate the fraud scheme.
As alleged in the indictment, the defendants and their co-conspirators misled investors by falsely claiming to represent the interests of investors when, in fact, the owners of BinaryBook and BigOption profited when investors lost money. In addition, the indictment alleges that the defendants and their co-conspirators misrepresented the suitability of and expected return on investments through BinaryBook and BigOption, used false names and qualifications when talking to investors, and falsely claimed to be working from London, when they were working from Israel. The indictment alleges the defendants and their co-conspirators also misrepresented whether and how investors could withdraw funds from their accounts and misrepresented the terms of so-called “bonuses,” “risk free trades” and “insured trades,” and deceptively used these supposed benefits in a manner that in fact harmed investors.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
In a related case, Lee Elbaz, the former CEO of Yukom and a citizen of Israel, was found guilty in August 2019 after a three-week jury trial of one count of conspiracy to commit wire fraud and three counts of wire fraud. Five additional former employees of Yukom and its affiliated companies have also pleaded guilty to conspiracy to commit wire fraud.
The FBI’s Washington Field Office investigated this case. Assistant Chiefs L. Rush Atkinson and Caitlin R. Cottingham of the Criminal Division’s Fraud Section are prosecuting the case. The Criminal Division’s Office of International Affairs also provided assistance in this matter.
Two Charged in Gun Trafficking ConspiracyRead the Press Release
WASHINGTON – Kofi Appiah-Mainoo, 30, of Temple Hills, Maryland, and James Hutchings, Jr., 38, of Waldorf, Maryland, were arrested on November 5, 2019, on a federal charge stemming from an ongoing investigation into the trafficking of firearms into the Washington, D.C. metropolitan area.
U.S. Attorney Jessie K. Liu, Timothy M. Dunham, Special Agent in Charge, FBI Washington Field Office, Criminal Division, and Ashan M. Benedict, Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) made the announcement.
The charges were filed in an indictment unsealed in the U.S. District Court for the District of Columbia. The investigation began after law enforcement recovered multiple firearms in a residence located at 4215 Foote Street, N.E., Washington, D.C. on December 19, 2018. Along with the firearms, law enforcement seized more than 44 kilograms of heroin laced with fentanyl, more than 50 pounds of marijuana, and drug paraphernalia located throughout the home. Linwood Douglas Thorne, of Northeast, Washington, D.C. was arrested in connection with that incident and is charged by indictment in a separate case (18-cr-389) (BAH).
Law enforcement continued to investigate the source of the firearms and determined that three of the firearms were purchased earlier in 2018 in Columbus, Georgia. ATF and FBI determined that Appiah, a Second Lieutenant in the United States Army, purchased the firearms, coordinated their transfer to the Washington, D.C. metropolitan area, and sold them to Hutchings, Jr., who acted as a courier once the firearms were brought north. Hutchings, Jr., a person previously convicted of a crime punishable by a term of imprisonment exceeding one year, is considered a prohibited person and is legally prohibited from possessing any firearm.
“This investigation is another example of our determination to disrupt and prosecute the trafficking of guns and drugs into the District of Columbia,” said U.S. Attorney Liu. “Through this coordinated law enforcement effort, we were able to remove deadly narcotics from the street and identify firearms traffickers who enable such dangerous conduct.”
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide crime-reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts.
The Office has partnered with the D.C. Metropolitan Police Department (MPD), the United States Attorney's Office for the Eastern District of Virginia, and ATF in an effort to address a significant source of illegal firearms in the District. This collaborative approach allows the Office to identify specific incidents and trends in the District, which provides an avenue to prevent and deter gun violence.
An indictment is merely a formal charge that a defendant has committed a violation of criminal law and is not evidence of guilt. Every defendant is presumed innocent until, and unless, proven guilty.
In announcing the charges, U.S. Attorney Liu, Special Agent in Charge Benedict, and Special Agent in Charge Dunham commended the work of those who investigated the case, including ATF and FBI. They also expressed appreciation for the assistance provided by the U.S. Marshals Service, Prince George’s County, Md. Police Department, and the U.S. Attorney’s Office for the District of Maryland. Finally, they commended the work of the U.S. Attorney’s Office for the Middle District of Georgia, who assisted in the arrest of Appiah.
Finally, they cited the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, Assistant U.S. Attorneys Gregory Rosen and Andrea Duvall of the Violent Crime and Narcotics Section, Paralegal Specialist Teesha Tobias, Kim Hall, Catherine O’Neal, and Legal Assistant Emma Atlas.
Three Felons Appear in Court in Connection with Federal Gun CrimesRead the Press Release
CHARLESTON, W.Va. – Three felons appeared before United States District Judge Joseph R. Goodwin this week in connection with federal gun crimes, announced United States Attorney Mike Stuart.
Dana Stevenson, 28, of Charleston, was sentenced to 14 months in prison for being a felon in possession of a firearm. Stevenson previously admitted that on August 14, 2017, Charleston Police Department officers were searching for a suspect that was seen driving a stolen vehicle. Officers saw Stevenson walking by the Kanawha River. As officers approached, Stevenson threw a firearm into the river. The Charleston Police Department Dive Team later recovered a Glock .40 caliber pistol from the river. Stevenson was prohibited from possessing a firearm under federal law because of a 2014 felony malicious wounding conviction in Kanawha County, West Virginia. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
In another case, Clayton Cato, 36, of Brooklyn, New York, pled guilty to being a felon in possession of a firearm. Cato admitted that on November 20, 2018 he was a passenger in a vehicle that was stopped on the East End of Charleston for a defective light. Upon officers approaching the vehicle, they smelled marijuana. All occupants were asked to step out of the vehicle. Cato stepped out of the vehicle and ran from the traffic stop on foot. While fleeing, he put his hands near his hoody pocket and was apprehended. During a pat-down for officer safety, officers located a Smith & Wesson 32 caliber pistol. Cato admitted he knew he had a 2003 felony conviction in the Southern District of West Virginia for distribution of cocaine base. Cato faces up to 10 years in prison when sentenced on January 27, 2020. Assistant United States Attorney Ryan A. Saunders is handling the prosecution.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Charleston Police Department conducted the investigations of Stevenson and Cato.
Gary Scott, 35, of St. Albans, was sentenced to 46 months in prison for being a felon in possession of a firearm. Scott previously admitted that on April 23, 2019, in St. Albans, he was driving a vehicle while under the influence of narcotics. He eventually parked at a Go-Mart, got out of the vehicle, and left the passenger in the vehicle. Officers eventually located Scott in the alley near the Go-Mart. Scott admitted to the officers that he had marijuana on his person. Officers searched him and found syringes, marijuana, Alprazolam, heroin, and methamphetamine. Officers detained Scott and transported him back to his vehicle. As they pulled up to the vehicle, Scott told the officers that he had a firearm in the glove box and that he knew that he was not allowed to possess firearms because he is a convicted felon. During a search of the vehicle, officers located a .357 Braztech revolver loaded with five rounds in the glove box. They also located a box of ammunition in the vehicle. The St. Albans Police Department conducted the investigation. Assistant United States Attorney Monica D. Coleman handled the prosecution.
These cases are being prosecuted as part of the Project Safe Neighborhoods (PSN) program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Tahlequah Man Indicted for Possession of Firearm and MethamphetamineRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Tahlequah, Oklahoma, resident Haskell Doak Willis, age 65, was Indicted for Felon In Possession Of Firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, up to a $250,000.00 fine, or both; and for Possession Of Methamphetamine (Misdemeanor), in violation of Title 21, United States Code, Section 844(a), punishable by not more than 1 year imprisonment, and/or up to a minimum $1,000.00 fine.
The Indictment alleges that on or about August 26, 2019, in the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, and knowing of said conviction, did knowingly possess in and affecting commerce, a firearm which had been shipped and transported in interstate commerce.
The Indictment further alleges that on or about August 26, 2019, in the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess methamphetamine, a Schedule II controlled substance.
The Tahlequah Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives each participated in the investigation that lead to the Indictment. Assistant United States Attorney Shannon Henson represents the United States.
The above named individual has been charged with a federal crime, or crimes, by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.
Syracuse Man Sentenced to 252 Days for Threatening to Kill VA EmployeesRead the Press Release
SYRACUSE, NEW YORK – Mark W. Sweeney, age 61, of Syracuse, was sentenced yesterday by United States District Judge David N. Hurd to 252 days in prison (time-served) for threatening to kill staff members employed at the Syracuse Veterans Affairs Hospital in Syracuse, announced United States Attorney Grant C. Jaquith and Chief Jon Godfrey, Veterans Affairs Police, Syracuse, New York.
As part of his previously entered guilty plea, Sweeney admitted that he made a telephone call to the Veterans Crisis Line and made threatening statements directed toward Veterans Affairs Hospital staff, including that he intended to kill several people who treated him and had a plan and the means to do so.
United States District Judge David N. Hurd also imposed a one-year term of supervised release and ordered the defendant not to have contact with the victims of his offense.
This case was investigated by the Veterans Affairs Police Department (Syracuse) and was prosecuted by Assistant U.S. Attorney Michael D. Gadarian.
State Senator Charged with Making False StatementRead the Press Release
NEW ORLEANS - U.S. Attorney Peter G. Strasser announced that WESLEY T. BISHOP, age 51, of New Orleans was charged today with making a false statement, a crime punishable by up to five years’ imprisonment.
According to the bill of information, BISHOP knowingly and willfully made a false statement to the United States Department of Housing and Urban Development. U.S. Attorney Strasser reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
If convicted, BISHOP faces a maximum sentence of five years, three years of supervised release, a restitution order, a fine, and a mandatory special assessment of $100.
U.S. Attorney Strasser praised the work of the United States Department of Housing and Urban Development Office of Inspector General and the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Andre J. Lagarde is in charge of the prosecution.
St. Charles Corporate Executive Indicted for Fraudulent Use of Company's Credit CardRead the Press Release
St. Louis, MO –Tara Sabatini, 44, of St. Charles, Missouri, was indicted by a federal grand jury on Thursday, November 7, 2019, on three counts of wire fraud. She appeared this afternoon for her initial appearance.
According to the Indictment, Sabatini was employed as the “Senior Director of Sales” by “Company #1,” a company located in St. Louis, Missouri that sold wholesale amounts of food to various commercial customers, typically grocery store chains. Company #1 provided Ms. Sabatini with a company-funded corporate credit card, and authorized her to use the credit card for official business, including work travel and some client expenses.
During 2017-18, Sabatini used her corporate credit card to fund personal expenses, including but not limited to purchasing plane tickets for a friend of her husband, purchasing plane tickets for her parents, purchasing hotel rooms for her husband and his friends, and purchasing gift cards for personal use.
Moreover, Sabatini purchased luxury ticket packages from a Major League Baseball team that was located in New York, frequently using electronic communications with New York based employees of the team for ticket purchase and delivery purposes. After receiving these baseball tickets, Sabatini attended some of the baseball games, and also gave some of the tickets to her friends and family. Sabatini further sold some of the baseball tickets through an Internet service, deposited the proceeds in a joint account that she shared with her husband, and spent the proceeds of the ticket sales on her personal expenses.
If convicted, each charge of wire fraud carries a maximum penalty of 20 years in prison and a $250,000 fine. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The Federal Bureau of Investigation is investigating this case.
Charges set forth in the Indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Settlement Reached with Dow Chemical Co. to Restore Natural Resources in Three Mid-Michigan CountiesRead the Press Release
Under a proposed settlement announced today by the United States, the State of Michigan and the Saginaw Chippewa Indian Tribe of Michigan, The Dow Chemical Company will implement and fund an estimated $77 million in natural resource restoration projects intended to compensate the public for injuries to natural resources caused by the release of hazardous substances from Dow’s Midland, Michigan facility. The proposed settlement, which was lodged today in the U.S. District Court for the Eastern District of Michigan, is subject to public comment and to approval by the court.
According to a complaint filed on behalf of federal, state and tribal natural resource trustees, Dow released dioxin-related compounds and other hazardous substances from its Midland, Michigan, facility, and such releases caused injuries to natural resources. The complaint alleges that hazardous substances from Dow’s facility adversely affected fish, invertebrates, birds and mammals, contributed to the adoption of health advisories to limit consumption of certain wild game and fish, and resulted in soil contact advisories in certain areas including some public parks.
The settlement identifies a number of specific natural resource restoration projects that will be implemented in different parts of Midland, Saginaw and Bay counties, consistent with provisions of a natural resource restoration plan developed by designated natural resource trustees, including the Department of the Interior’s U.S. Fish and Wildlife Service and Bureau of Indian Affairs; the State of Michigan’s Department of Natural Resources (DNR), Department of Environment, Great Lakes, and Energy (EGLE), and Department of Attorney General; and the Saginaw Chippewa Indian Tribe of Michigan.
Dow will implement eight natural resource restoration projects described in the settlement at the company’s expense, subject to oversight and approval by the natural resource trustees. In addition, Dow will pay $6.75 million, plus interest, to a Restoration Account that will used by Trustees to fund five other restoration projects described in the settlement.
The settlement also requires Dow to pay another $15 million, plus interest that will be used by the Trustees for various purposes. At least $5 million of this funding will be used to support implementation of additional natural resource restoration projects that will be selected by the trustees in the future, after a separate opportunity for public input on restoration project proposals. This funding will also be used to cover costs of long-term monitoring and maintenance of restoration projects under the settlement, as well as costs that the Trustees will incur in overseeing restoration projects.
Finally, Dow is required to reimburse costs previously incurred by federal and state trustees in connection with the assessment of natural resource damages relating to Dow’s releases.
“Today’s settlement is good news for communities in this region, and it builds upon ongoing cleanup efforts under the direction and supervision of the EPA and the Michigan Department of Environment, Great Lakes and Energy,” said Principal Deputy Attorney General Jonathan Brightbill of the Justice Department’s Environment and Natural Resources Division. “The extensive habitat restoration provisions of this settlement will help accelerate recovery of natural resources over a large area where resources have been adversely impacted as a result of decades of exposure to Dow’s hazardous substances.”
“With this settlement, the natural resources in the Saginaw Bay area will be restored through the creation of natural habitat areas, nature preserves, hiking and biking trails, and greater access for fishing, hunting, and canoeing,” said U.S. Attorney Matthew Schneider of the Eastern District of Michigan. “We are thankful to Dow and the trustees for their work in reaching this excellent result, which will benefit the residents of the Saginaw Bay area and the wildlife and waterfowl that inhabit it.”
“The settlement requires Dow to implement and fund restoration projects outlined in a draft restoration plan that will benefit fish and wildlife and provide increased outdoor recreation opportunities for the American public,” said Charles Wooley, Regional Director for the U.S. Fish and Wildlife Service. “This restoration work can now begin even while separate, ongoing clean-up efforts continue.”
“The trustees are working to compensate the public for past and expected future losses to recreational fishing, park use and hunting as a result of public health advisories issued because of releases from Dow’s Midland facility,” said Michigan DNR Director Dan Eichinger. “We appreciate being at the table to ensure that the citizens of Michigan are appropriately compensated for resource damage, and we look forward to continuing to improve the natural resources, wildlife and fisheries opportunities for people within these areas.”
“In addition to the Natural Resource Damage Assessment and Restoration settlement, the State is simultaneously resolving some claims with Dow that will result in both the funding and the property to support two additional projects that benefit the community,” said Michigan EGLE Director Liesl Eichler Clark. “These projects include a docking facility and education center to bolster BaySail’s environmental science program and the renovation of the Saginaw River Rear Range Lighthouse to allow public use.”
Restoration Projects Highlights
The restoration projects described in the settlement compensate the public for injuries to natural resources, including lost uses of natural resources by recreational anglers, park users, and hunters, by improving habitat for fish and game species, and through creating new – or improving existing – habitat areas that also provide public access to natural resources in and around the Tittabawassee River, Saginaw River and Saginaw Bay.
Several restoration projects under the settlement will benefit fishery resources through measures that include construction of fish spawning areas in Saginaw Bay, construction of a rock ramp or similar structure to promote increased fish passage over a dam situated at Dow’s Midland facility and improvements to water control structures in the Shiawassee National Wildlife Refuge.
Other projects will enhance and preserve natural habitat on thousands of acres of property. Several projects will include planting native species and using natural seedbeds to restore diverse types of suitable natural habitats in areas that currently provide limited habitat value to wildlife. Some projects include provisions for creation of new wetland habitat or enhancement of existing wetland areas. One project will preserve an extensive green corridor along the Tittabawassee River that will be beneficial to wildlife.
Several of the restoration projects will establish publicly accessible nature areas that will provide increased opportunities for recreational use and enjoyment of restored natural resources, through establishment of amenities such as nature trails, fishing platforms, and a bike trail. One of the projects will support increased recreational boating and fishing in Saginaw River and Bay by expanding an existing boat launch facility at the mouth of the Saginaw River.
Other Terms of the Settlement
In addition to resolving natural resource damage claims against Dow, the proposed settlement also incorporates an agreement, exclusively between the State and Dow, that would waive potential State claims for recovery of a limited set of response costs identified in the settlement, in exchange for Dow’s commitment to implement two other projects along the lower Saginaw River that are not part of the Trustees’ proposed natural resource restoration program.
The settlement does not address Dow’s liability to clean up contamination from the Midland facility. Dow has been addressing certain offsite contamination from the Midland facility under a series of administrative orders issued by the EPA. Much of that effort to date has focused on contamination within the Tittabawassee River or in riverbank and floodplain areas adjacent to the river. At this point, EPA mandated cleanup activity is continuing in and along the Tittabawassee River and then downstream into the Saginaw River. Dow has also been addressing other contamination related to the Midland facility under the direction of EGLE. The settlement reserves all rights of the United States and the State to require Dow to continue and complete cleanup of contamination from the Midland facility.
Similarly, except for the limited waiver of State response costs referred to above, the settlement does not resolve Dow’s liability to reimburse the governments for costs they incur in responding to contamination from the Midland facility.
Finally, the proposed settlement will resolve potential claims by Dow against the United States for recovery of a portion of any natural resource damage expenses and cleanup costs relating to any past or future releases of hazardous substances from the Midland facility. Dow contends that the United States is liable for a portion of these costs, based primarily on federal involvement in WWII era production activities at the Midland facility.
Guiding the Settlement
Concurrently with the settlement, trustees released for public comment a draft restoration plan that will guide restoration activities carried out in response to contamination from Dow’s Midland facility. Restoration activities under the settlement must be consistent with the final restoration plan adopted by the Trustees.
The natural resource trustees assessed injuries to natural resources under the Natural Resources Damage Assessment and Restoration program, which aims to compensate the public for past, present and future loss of fish, wildlife habitat and use of natural areas resulting from releases of contaminants into the environment.
As part of this program, the trustees identify parties responsible for contamination and either litigate or negotiate settlements to fund restoration actions.
History of Contamination
The Dow facility in Midland, Michigan, began operating in 1897. Chemical production through the years resulted in the generation of waste products, including dioxins, which were released into the Tittabawassee River.
These chemical waste products contaminated the Tittabawassee River and its floodplains and moved into the Saginaw River and Saginaw Bay.
The natural resources settlement is separate from the ongoing cleanup of the area being implemented by Dow under the direction of the Michigan Department of Environment, Great Lakes, and Energy and the U.S. Environmental Protection Agency.
Under this settlement, restoration work can begin within the watershed, while cleanup efforts in and along the rivers continue.
Public Review and Comment
The proposed consent decree and the Draft Restoration Plan and Environmental Assessment are available at https://www.fws.gov/midwest/es/ec/nrda/TittabawasseeRiverNRDA/
The Department of Justice will publish a Federal Register Notice advising the public of the opportunity to submit comments on the proposed Consent Decree, as well as on the Draft Restoration Plan and Environmental Assessment, within 45 days from the date of publication of the Federal Register Notice. A copy of the Federal Register Notice will be posted at https://www.fws.gov/midwest/es/ec/nrda/TittabawasseeRiverNRDA/.
Comments on the Consent Decree may be submitted to the Department of Justice at [email protected] or Deputy Assistant Attorney General, U.S. DOJ – ENRD, P.O. Box 7611, Washington, D.C. 20044-7611.
Comments on Draft Restoration Plan and Environmental Assessment may submitted to [email protected] or Lisa Williams, U.S. Fish and Wildlife Service, 2651 Coolidge Road, Suite 101, East Lansing, MI. 48823.
The U.S. Attorney will join trustees at a public meeting to provide more information on the plan and to answer questions at 7 p.m. Thursday, Nov. 21, at the Four Points by Sheraton Saginaw, 4960 Towne Centre Road in Saginaw.
Settlement Reached with Dow Chemical Co. to Restore Natural Resources in Three Mid-Michigan CountiesRead the Press Release
Midland, MI – Under a proposed settlement announced today by the United States, the State of Michigan and the Saginaw Chippewa Indian Tribe of Michigan, The Dow Chemical Company will implement and fund an estimated $77 million in natural resource restoration projects intended to compensate the public for injuries to natural resources caused by the release of hazardous substances from Dow’s Midland, Michigan facility. The proposed settlement, which was lodged today in the United States district court for the Eastern District of Michigan, is subject to public comment and to approval by the court.
U.S. Attorney Matthew Schneider will join trustees at a public meeting to provide more information on the plan and to answer questions at 7 p.m. Thursday, Nov. 21, at the Four Points by Sheraton Saginaw, 4960 Towne Centre Road in Saginaw.
According to a complaint filed on behalf of federal, state and tribal natural resource trustees, Dow released dioxin-related compounds and other hazardous substances from its Midland, Michigan, facility, and such releases caused injuries to natural resources. The complaint alleges that hazardous substances from Dow’s facility adversely affected fish, invertebrates, birds and mammals, contributed to the adoption of health advisories to limit consumption of certain wild game and fish, and resulted in soil contact advisories in certain areas including some public parks.
The settlement identifies a number of specific natural resource restoration projects that will be implemented in different parts of Midland, Saginaw and Bay counties, consistent with provisions of a natural resource restoration plan developed by designated natural resource trustees, including the Department of the Interior’s U.S. Fish and Wildlife Service and Bureau of Indian Affairs; the State of Michigan’s Department of Natural Resources (DNR), Department of Environment, Great Lakes, and Energy (EGLE), and Department of Attorney General; and the Saginaw Chippewa Indian Tribe of Michigan.
Dow will implement eight natural resource restoration projects described in the settlement at the company’s expense, subject to oversight and approval by the natural resource trustees. In addition, Dow will pay $6.75 million, plus interest, to a Restoration Account that will used by Trustees to fund five other restoration projects described in the settlement.
The settlement also requires Dow to pay another $15 million, plus interest that will be used by the Trustees for various purposes. At least $5 million of this funding will be used to support implementation of additional natural resource restoration projects that will be selected by the trustees in the future, after a separate opportunity for public input on restoration project proposals. This funding will also be used to cover costs of long-term monitoring and maintenance of restoration projects under the settlement, as well as costs that the Trustees will incur in overseeing restoration projects.
Finally, Dow is required to reimburse costs previously incurred by federal and state trustees in connection with the assessment of natural resource damages relating to Dow’s releases.
“Today’s settlement is good news for communities in this region, and it builds upon ongoing cleanup efforts under the direction and supervision of the EPA and the Michigan Department of Environment, Great Lakes and Energy,” said Principal Deputy Attorney General Jonathan Brightbill of the Justice Department’s Environment and Natural Resources Division “The extensive habitat restoration provisions of this settlement will help accelerate recovery of natural resources over a large area where resources have been adversely impacted as a result of decades of exposure to Dow’s hazardous substances.”
“With this settlement, the natural resources in the Saginaw Bay area will be restored through the creation of natural habitat areas, nature preserves, hiking and biking trails, and greater access for fishing, hunting, and canoeing,” said U.S. Attorney Matthew Schneider of the Eastern District of Michigan. “We are thankful to Dow and the trustees for their work in reaching this excellent result, which will benefit the residents of the Saginaw Bay area and the wildlife and waterfowl that inhabit it.”
“The settlement requires Dow to implement and fund restoration projects outlined in a draft restoration plan that will benefit fish and wildlife and provide increased outdoor recreation opportunities for the American public,” said Charles Wooley, Regional Director for the U.S. Fish and Wildlife Service. “This restoration work can now begin even while separate, ongoing clean-up efforts continue.”
“The trustees are working to compensate the public for past and expected future losses to recreational fishing, park use and hunting as a result of public health advisories issued because of releases from Dow’s Midland facility,” said Michigan DNR Director Dan Eichinger. “We appreciate being at the table to ensure that the citizens of Michigan are appropriately compensated for resource damage, and we look forward to continuing to improve the natural resources, wildlife and fisheries opportunities for people within these areas.”
“In addition to the Natural Resource Damage Assessment and Restoration settlement, the State is simultaneously resolving some claims with Dow that will result in both the funding and the property to support two additional projects that benefit the community,” said Michigan EGLE Director Liesl Eichler Clark. “These projects include a docking facility and education center to bolster BaySail’s environmental science program and the renovation of the Saginaw River Rear Range Lighthouse to allow public use.”
Restoration Projects Highlights
The restoration projects described in the settlement compensate the public for injuries to natural resources, including lost uses of natural resources by recreational anglers, park users, and hunters, by improving habitat for fish and game species, and through creating new – or improving existing – habitat areas that also provide public access to natural resources in and around the Tittabawassee River, Saginaw River and Saginaw Bay.
Several restoration projects under the settlement will benefit fishery resources through measures that include construction of fish spawning areas in Saginaw Bay, construction of a rock ramp or similar structure to promote increased fish passage over a dam situated at Dow’s Midland facility and improvements to water control structures in the Shiawassee National Wildlife Refuge.
Other projects will enhance and preserve natural habitat on thousands of acres of property. Several projects will include planting native species and using natural seedbeds to restore diverse types of suitable natural habitats in areas that currently provide limited habitat value to wildlife. Some projects include provisions for creation of new wetland habitat or enhancement of existing wetland areas. One project will preserve an extensive green corridor along the Tittabawassee River that will be beneficial to wildlife.
Several of the restoration projects will establish publicly accessible nature areas that will provide increased opportunities for recreational use and enjoyment of restored natural resources, through establishment of amenities such as nature trails, fishing platforms, and a bike trail. One of the projects will support increased recreational boating and fishing in Saginaw River and Bay by expanding an existing boat launch facility at the mouth of the Saginaw River.
Other Terms of the Settlement
In addition to resolving natural resource damage claims against Dow, the proposed settlement also incorporates an agreement, exclusively between the State and Dow, that would waive potential State claims for recovery of a limited set of response costs identified in the settlement, in exchange for Dow’s commitment to implement two other projects along the lower Saginaw River that are not part of the Trustees’ proposed natural resource restoration program.
The settlement does not address Dow’s liability to clean up contamination from the Midland facility. Dow has been addressing certain offsite contamination from the Midland facility under a series of administrative orders issued by the EPA. Much of that effort to date has focused on contamination within the Tittabawassee River or in riverbank and floodplain areas adjacent to the river. At this point, EPA mandated cleanup activity is continuing in and along the Tittabawassee River and then downstream into the Saginaw River. Dow has also been addressing other contamination related to the Midland facility under the direction of EGLE. The settlement reserves all rights of the United States and the State to require Dow to continue and complete cleanup of contamination from the Midland facility.
Similarly, except for the limited waiver of State response costs referred to above, the settlement does not resolve Dow’s liability to reimburse the governments for costs they incur in responding to contamination from the Midland facility.
Finally, the proposed settlement will resolve potential claims by Dow against the United States for recovery of a portion of any natural resource damage expenses and cleanup costs relating to any past or future releases of hazardous substances from the Midland facility. Dow contends that the United States is liable for a portion of these costs, based primarily on federal involvement in WWII era production activities at the Midland facility.
Guiding the Settlement
Concurrently with the settlement, trustees released for public comment a draft restoration plan that will guide restoration activities carried out in response to contamination from Dow’s Midland facility. Restoration activities under the settlement must be consistent with the final restoration plan adopted by the Trustees.
The natural resource trustees assessed injuries to natural resources under the Natural Resources Damage Assessment and Restoration program, which aims to compensate the public for past, present and future loss of fish, wildlife habitat and use of natural areas resulting from releases of contaminants into the environment.
As part of this program, the trustees identify parties responsible for contamination and either litigate or negotiate settlements to fund restoration actions.
History of Contamination
The Dow facility in Midland, Michigan, began operating in 1897. Chemical production through the years resulted in the generation of waste products, including dioxins, which were released into the Tittabawassee River.
These chemical waste products contaminated the Tittabawassee River and its floodplains and moved into the Saginaw River and Saginaw Bay.
The natural resources settlement is separate from the ongoing cleanup of the area being implemented by Dow under the direction of the Michigan Department of Environment, Great Lakes, and Energy and the U.S. Environmental Protection Agency.
Under this settlement, restoration work can begin within the watershed, while cleanup efforts in and along the rivers continue.
Public Review and Comment
The proposed consent decree and the Draft Restoration Plan and Environmental Assessment are available at https://www.fws.gov/midwest/es/ec/nrda/TittabawasseeRiverNRDA/
The Department of Justice will publish a Federal Register Notice advising the public of the opportunity to submit comments on the proposed Consent Decree, as well as on the Draft Restoration Plan and Environmental Assessment, within 45 days from the date of publication of the Federal Register Notice. A copy of the Federal Register Notice will be posted at https://www.fws.gov/midwest/es/ec/nrda/TittabawasseeRiverNRDA/.
Comments on the Consent Decree may be submitted to the Department of Justice at [email protected] or Deputy Assistant Attorney General, U.S. DOJ – ENRD, P.O. Box 7611, Washington, D.C. 20044-7611.
Comments on Draft Restoration Plan and Environmental Assessment may submitted to [email protected] or Lisa Williams, U.S. Fish and Wildlife Service, 2651 Coolidge Road, Suite 101, East Lansing, MI. 48823.
Rapid City Man Indicted for Failure to Register as a Sex OffenderRead 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 Failure to Register as a Sex Offender.
Dwight Black Spotted Horse, age 35, was indicted on September 10, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on November 6, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Black Spotted Horse was convicted of Sexual Abuse of a Minor in October 2006. As a result of this conviction, he is required to register as a sex offender. It is alleged that between June 16, 2019, and September 10, 2019, Black Spotted Horse, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under Federal Law, failed to properly register as a sex offender.
The charge is merely an accusation and Black Spotted Horse is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Michael J. Elmore is prosecuting the case.
Black Spotted Horse was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Randolph Man Sentenced for Child ExploitationRead the Press Release
BOSTON – A Randolph man was sentenced yesterday in federal court in Boston on child exploitation charges.
Michael Lee, 52, was sentenced by U.S. District Court Judge Indira Talwani to 20 years in prison and five years of supervised release. In June 2019, Lee pleaded guilty to one count of sexual exploitation of children and one count each of distribution, receipt and possession of child pornography.
A search warrant at Lee’s Randolph home was conducted as part of an investigation into the online trade of child pornography through the use of Kik, an instant messaging app. During an interview with agents, Lee admitted to trading images and videos of child pornography with other Kik users, including a New Hampshire man who provided Lee with images and videos documenting the sexual abuse of the man’s eight-year-old daughter at Lee’s direction. Forensic analysis of Lee’s cell phone and Kik account corroborated his admissions and showed that he had created videos of himself in which he directed the child’s father how to sexually abuse her, and had received videos in return that showed the man abusing her. Forensic review of the evidence also showed that Lee had been trading child pornography with other Kik users.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit, is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Penn Hills Man Sentenced to More than 5 Years in Prison for Firearms Offenses Related to West End Drug InvestigationRead the Press Release
PITTSBURGH - A resident of Penn Hills, PA, has been sentenced in federal court to 68 months’ imprisonment on his conviction of conspiracy to possess firearms in furtherance of drug trafficking, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Reggie B. Walton imposed the sentence on Jaamiyl Dean, age 43.
According to information presented to the court, in 2017, the Federal Bureau of Investigation and the Drug Enforcement Administration initiated a wiretap investigation, primarily targeting the GBK street gang and drug trafficking in and around an area known as the Greenway Projects, located in the West End of the City of Pittsburgh. Jaamiyl Dean was intercepted over the wiretap discussing drug transactions. When agents executed a search warrant at Dean’s home and on his vehicle on June 20, 2018, they recovered, among other things, two firearms, several rounds of ammunition, drug packaging materials, and over $64,000 in cash. Dean has previously been convicted of a felony offense, and was prohibited from possessing the firearms and ammunition.
Prior to imposing sentence, Senior Judge Walton stated that a sentence within the advisory Sentencing Guideline range was appropriate in this case.
Assistant United States Attorneys Tonya Sulia Goodman and Yvonne M. Saadi prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation and the Drug Enforcement Administration, who jointly led the multi-agency investigation, which also included the Pittsburgh Bureau of Police, Allegheny County Sheriff’s Office, Pennsylvania State Police, Robinson Township Police Department, Stowe Township Police Department, Pennsylvania Attorney General’s Office, Wilkinsburg Borough Police Department, and the McKees Rocks Police Department, for the investigation leading to the successful prosecution of Dean.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Passenger Charged with Criminal Sexual Misconduct for Actions during an American Airlines Flight Diverted to TulsaRead the Press Release
A man who caused an American Airlines’ flight to be diverted to Tulsa on Tuesday night was charged today in federal court for engaging in unwanted sexual contact with a female passenger, announced U.S. Attorney Trent Shores.
“This week, American flight 807, traveling from North Carolina to Utah, was diverted to Tulsa due to the alleged conduct of passenger James Clayton Cholewinski-Boy. Today, the United States Attorney’s Office filed criminal charges as a result of Mr. Cholewinski-Boy’s alleged actions on the plane,” said U.S. Attorney Trent Shores of the Northern District of Oklahoma. “The public should know these allegations pertain to criminal sexual misconduct by Mr. Cholewinski-Boy against a female passenger, not a threat to the plane or air travel. The Federal Bureau of Investigation along with Tulsa International Airport law enforcement officers responded swiftly and professionally to this situation as soon as the plane touched down in Tulsa. The FBI will investigate this matter moving forward. I am thankful for the men and women of law enforcement who work to ensure the safety and security of the traveling public.”
The flight was en route to Salt Lake City, Utah, from Charlotte, North Carolina, when the incident occurred.
Law enforcement officials with the FBI, Tulsa International Airport and U.S. Department of Homeland Security’s Transportation Security Administration conducted the investigation. Assistant U.S. Attorney Robert T. Raley is prosecuting the case. AUSA Raley is the National Security Anti-Terrorism (ATAC) Prosecutor for the U.S. Attorney’s Office in the Northern District of Oklahoma.
Ocala Man Convicted of Conspiring to Distribute Large Quantities of Cocaine, Heroin, and FentanylRead the Press Release
Ocala, Florida – A federal jury has found Kevin Gene Hart (31, Ocala) guilty of conspiracy to distribute 5 kilograms or more of cocaine, 1 kilogram or more of heroin, and 400 grams or more of fentanyl. He faces a minimum mandatory penalty of 15 years, up to life, in federal prison. A sentencing hearing has been scheduled for January 28, 2020.
Hart was indicted on March 27, 2019.
According to testimony and evidence presented at trial, between January 2012 and May 2019, Hart conspired with others to distribute hundreds of kilograms of cocaine and heroin through a network of stash houses in Marion County. Large quantities of the heroin were also laced with fentanyl. On April 10, 2019, after learning of his federal indictment, Hart fled from federal agents in a high-speed vehicle chase. He was apprehended by agents in Marion County on May 24, 2019, as he attempted to flee through a local business.
This case was investigated by the Drug Enforcement Administration, the City of Ocala Police Department, the Unified Drug Enforcement Strike Team (UDEST), and the Marion County Sheriff’s Office. It was prosecuted by Assistant United States Attorney William S. Hamilton.
Nigerian National Extradited to United States to Face Federal Charges for Leading International Fraud Scheme That Victimized Dozens of Financial InstitutionsRead the Press Release
TALLAHASSEE, FLORIDA – United States Attorney for the Northern District of Florida Lawrence Keefe
today announced the extradition of Adedeji Adeniran, a national of Nigeria, to the Northern
District Florida.On Nov. 2, 2019, Nigeria extradited Adeniran, age 56, to the Northern District of Florida. He
arrived in the United States on Nov. 3. Adeniran was the leader of a criminal group that committed
a large bank fraud, mail fraud, and wire fraud conspiracy that involved a loss of $4.1 million and
involved 42 victim financial institutions. Between 2002 and 2004, members of the criminal group
fraudulently obtained the identities of others and opened numerous bank accounts in the United
States. The group members deposited counterfeited or forged checks into those accounts and then
wired the proceeds of the fraud to Hong Kong, Turkey, Nigeria, and the United Arab Emirates. The
criminal group consisted of three cells, one in New York City, one in Chicago, and one in South
Florida. Adeniran is alleged to be the leader of the South Florida cell and coordinated the opening
of fraudulent bank accounts, the deposit of forged or counterfeit checks into the accounts, the
issuance of fraudulent checks and debit card withdrawals from the fraudulent accounts, and the
transfer of monies to other accounts within and outside the United States. On May 2, 2005, a grand
jury in the Northern District of Florida returned a 27-count indictment charging eight defendants
with conspiracy to commit bank, mail, and wire fraud, and 26 counts of bank fraud. Adeniran is
charged in 20 counts of the indictment. Adeniran fled the United States in 2005 and has remained a
fugitive until this year. Based upon an extradition request of the United States, a Nigerian court
issued a warrant for Adeniran’s arrest on Oct. 23, 2018. Adeniran was arrested by Nigerian
authorities on March 21, 2019, and bail was denied.
Adeniran was found extraditable on May 21, 2019.The Attorney-General of the Federation and Minister of Justice issued a final surrender order on
Oct. 17, 2019, and Nigeria surrendered Adeniran to agents of the Federal Bureau of Investigation.
Adeniran was arraigned in federal court on Nov. 4, 2019, at the U.S. Courthouse in
Tallahassee.Adeniran is set for trial on Jan. 6, 2020, at 8:15 a.m. at the U.S. Courthouse in Tallahassee.
Adeniran faces a maximum sentence of 30 years in prison, a $1,000,000 fine, and five years’
supervised release, on each of the 20 charged counts.On March 30, 2006, while Adeniran was a fugitive outside the United States, the United States
obtained the forfeiture of Adeniran’s residence in Miramar, Florida.Five co-conspirators named in the indictment have previously pleaded guilty:
• Daphnee Philias pled guilty to one count of conspiracy to commit bank fraud on Sept. 7, 2005.
• Stephen Adetona pled guilty to conspiracy to commit bank fraud and two counts of bank fraud on
Sept. 13, 2005.
• Adeyinka Olushola Cheese pled guilty to one count of conspiracy to commit bank fraud on Nov. 10,
2005.
• Fatai Taiwo pled guilty to one count of conspiracy to commit bank fraud on Feb. 27, 2006.
• Anthony Goldman pled guilty to one count of conspiracy to commit bank fraud on April 13, 2006.Two other defendants remain fugitives.
This case was investigated by the FBI. Assistant U.S. Attorney Stephen Kunz is prosecuting the
case. The Justice Department’s Office of International Affairs of the Department’s Criminal
Division provided significant assistance in securing the defendant’s extradition from Nigeria.The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that
serve as the nation’s principal litigators under the direction of the Attorney General. To access
public court documents online, please visit the U.S. District Court for the Northern District of
Florida website. For more information about the United States Attorney’s Office, Northern
District of Florida, visit http://www.justice.gov/usao/fln/index.html.New Haven Man Pleads Guilty to Federal Robbery ChargeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that VINSON SINGLETON, JR., 25, of New Haven, pleaded guilty yesterday in New Haven federal court to a federal robbery offense.
According court documents and statements made in court, this matter stems from an investigation into a series of armed and attempted armed robberies of commercial establishments in Ansonia, North Haven and New Haven in March 2016. The investigation revealed that, in the evening of March 22, 2016, an individual entered the Shell gas station at 696 Main Street in Ansonia, attempted to rob the store and stabbed a store employee in his back. After the victim was stabbed, the victim saw a metal blade on the ground and the assailant holding a black handle in his hand. The assailant then ran from the store. The victim suffered a small puncture wound in his lower back.
Investigators collected the knife handle and a hat and sweatshirt that the assailant discarded as he ran from the store. DNA collected from these items matched DNA that was collected from Singleton after investigators had identified Singleton as a suspect.
Singleton pleaded guilty to one count of attempted Hobbs Act robbery, an offense that carries a maximum term of imprisonment of 20 years. He is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on January 28, 2020.
At sentencing, the government will argue that Singleton also robbed or attempted to rob a Dunkin Donuts in New Haven on March 8, 2016; a Valero in North Haven on March 9, 2016; a Papa John’s in New Haven on March 17, 2016; a Shell in New Haven on March 17, 2016, and a 7-11 in New Haven on March 21, 2016.
Singleton is currently serving a state sentence for possessing a sawed-off shotgun and an attempted robbery.
This matter is being investigated by the FBI’s Connecticut Violent Crime Task Force and the Ansonia, New Haven and North Haven Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and Maria del Pilar Gonzalez.
Mortgage Short Sale Negotiators Charged with Defrauding Mortgage LendersRead the Press Release
BOSTON – The principals and co-founders of a North Andover mortgage short sale assistance company were charged today in connection with defrauding mortgage lenders and investors out of nearly $500,000 in proceeds from about 90 short sale transactions. The defendants allegedly defrauded the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation and the U.S. Department of Housing and Urban Development.
Gabriel T. Tavarez, 39, and Jaime L. Mulvihill, 40, who together founded and operated Loss Mitigation Services, LLC, were charged with conspiracy to commit wire fraud. Tavarez also was charged with aggravated identity theft.
The charges arise out of the defendants’ alleged scheme to steal undisclosed and improper fees from mortgage lenders in connection with short sales of homes. A short sale occurs where the mortgage debt on the home is greater than the sale price, and the mortgage lender agrees to take a loss on the transaction.
Loss Mitigation Services, purportedly acting on behalf of underwater homeowners, negotiated with mortgage lenders for approval of short sales in lieu of foreclosure. Mortgage lenders typically forbid short sale negotiators, such as Loss Mitigation Services, from receiving any proceeds of a short sale.
According to the court documents, from 2014 to 2017, Tavarez and Mulvihill, directly or through their employees, falsely claimed to homeowners, real estate agents, and closing attorneys that mortgage lenders had agreed to pay Loss Mitigation Services fees known as “seller paid closing costs” or “seller concessions” from the proceeds of the short sales. In reality, the mortgage lenders had never approved Loss Mitigation Services to receive those fees. When the short sales closed, at the instruction of Tavarez or Mulvihill, or others working with them, settlement agents paid Loss Mitigation Services the fees, which typically were 3% of the short sale price above and beyond any fees to real estate agents, closing attorneys and others involved in the transaction. To deceive mortgage lenders about the true nature of the fees, Tavarez or Mulvihill filed, or caused others to file, false short sale transaction documents with mortgage lenders, including altered settlement statements and fabricated contracts and mortgage loan preapproval letters. Tavarez and Mulvihill fabricated the transaction documents, or caused them to be fabricated, in order to justify the additional fees and conceal that they were being paid to Loss Mitigation Services. In addition, Tavarez created fake letters from mortgage brokers claiming that the brokers had approved buyers for financing, in order to convince mortgage lenders to approve the additional fees.
The charge of conspiracy to commit wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss. The charge of aggravated identity theft carries a mandatory two-year sentence that must run consecutively to any other sentence imposed, one year of supervised release, and a fine of $250,000, or twice the gross gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Robert Manchak, Special Agent in Charge of the Federal Housing Finance Agency, Office of Inspector General, Northeast Region; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. Assistant U.S. Attorneys Sara Miron Bloom and Brian M. LaMacchia of Lelling’s Office are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Missoula-area woman sentenced for possessing meth for distributionRead the Press Release
MISSOULA—A Missoula-area woman who admitted to law enforcement she was dealing methamphetamine and heroin after getting pulled over in a traffic stop was sentenced today to 51 months in prison and four years of supervised release, U.S. Attorney Kurt Alme said.
Jewell Alexandria Mann, 21, of Victor, pleaded guilty in July to possession with intent to distribute meth.
U.S. District Judge Donald M. Molloy presided.
In court records filed in the case, the prosecution said a Missoula County Sheriff’s deputy made a traffic stop on a vehicle Mann was driving on Dec. 7, 2018. A search of Mann resulted in the recovery of a digital scale, meth and heroin. Mann admitted to law enforcement that the drugs were hers and that she was a dealer.
Assistant U.S. Attorney Tara Elliott prosecuted the case, which was investigated by the FBI and the Montana Violent Crimes Task Force.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Mississippi Return Preparer Pleads Guilty to Filing False Tax ReturnsRead the Press Release
A Macon, Mississippi, tax return preparer pleaded guilty yesterday to aiding and assisting in the preparation and filing of a false tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Mike Hurst of the Southern District of Mississippi.
According to documents and information provided to the court, from approximately January 2012 through April 2016, Shelleen Ivory-Farmer managed ABS Tax Services, a tax preparation business in Macon, Mississippi. Through the firm, Ivory-Farmer falsified clients’ tax returns by claiming false education credits, itemized deductions, and business and farming losses to fraudulently increase client refunds. The tax loss resulting from the false education credits was more than $870,000 and the total tax loss Ivory-Farmer caused was more than $1.1 million.
Ivory-Farmer faces a statutory maximum sentence of three years in prison, a period of supervised release and monetary penalties. In addition, Ivory-Farmer agreed to pay $236,887 in restitution to the Internal Revenue Service (IRS).
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Hurst thanked agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Mary Helen Wall and Trial Attorney William Montague of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Mission Man Found Guilty for Methamphetamine Trafficking and Gun ChargesRead the Press Release
United States Attorney Ron Parsons announced that Eli Erickson, a/k/a Black, age 32, of Mission, South Dakota, was found guilty of Conspiracy to Distribute Methamphetamine, Possession of Firearms in Furtherance of a Drug Trafficking Crime, and Drug User in Possession of Firearms as a result of a 3-day federal jury trial in Pierre, South Dakota.
The charges carry a maximum penalty of at least 15 years up to life in federal prison, and/or a $10,000,000 fine, at least 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered, as well as forfeiture of numerous firearms and U.S. currency.
Erickson was indicted on November 14, 2018, and a Superseding Indictment was filed on September 10, 2019.
From 2015 through 2018, Erickson knowingly and intentionally conspired with others to distribute and possess with intent to distribute 500 grams or more of methamphetamine. The trial testimony showed the conspiracy involved importing pounds of methamphetamine from Nebraska and distributing it on the Rosebud Sioux Indian Reservation. During this time, Erickson possessed two firearms in furtherance of his drug trafficking operation, namely by using the weapons to protect his home from which he sold methamphetamine. Erickson also possessed these firearms, and a number of other firearms, while being a methamphetamine user.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services; the Stanley County Sherriff’s Office; the Lexington, Nebraska, Police Department; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Northern Plains Safe Trails Drug Enforcement Task Force; and the Federal Bureau of Investigation. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
A sentencing date has not been set. Erickson was immediately remanded to the custody of the U.S. Marshals Service.
Mexican National Deported 13 Times Sentenced to 18 Months in Prison for Violating Supervised ReleaseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ALBERTO SILVA-GARCIA, 44, a citizen of Mexico, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 18 months of imprisonment for violating the conditions of his supervised release that followed a conviction for illegally reentering the U.S. after being deported. The sentence will run consecutively to a 42-month prison term that Silva-Garcia is currently serving.
According to court documents and statements made in court, Silva-Garcia was deported from the U.S. to his native Mexico in March 1999 after sustaining a domestic violence conviction in California. Between March 1999 and April 2004, Silva-Garcia was encountered multiple times in California by immigration agents, twice while in custody following his apprehension and conviction for controlled substance violations, and on several other occasions following his apprehension at the U.S. border for falsely claiming U.S. citizenship. On 11 documented occasions prior to 2005, Silva-Garcia was removed to Mexico by foot.
In August 2009, Silva-Garcia was arrested for motor vehicle offenses in Norwalk. He was subsequently charged with illegal reentry in U.S. District Court in Connecticut and was sentenced to 12 months of imprisonment. In December 2010, Silva-Garcia was again removed to Mexico.
Silva-Garcia again illegally reentered the U.S. and, in March 2015, was charged with larceny and burglary offenses in superior court in Norwalk. The charges stemmed from a crime spree involving the theft of construction tools and equipment from job sites and parked construction vehicles. He pleaded guilty and was sentenced to three years of incarceration.
In January 2017, again Silva-Garcia pleaded guilty in federal court to illegal reentry. On April 25, 2017, Judge Meyer sentenced him to 15 months of imprisonment and three years of supervised release.
On December 13, 2017, Silva-Garcia was deported to Mexico. On September 1, 2018, he was apprehended as he attempted to reenter the U.S. by scaling a fence at the border of Mexico and California.
Silva-Garcia pleaded guilty in the Southern District of California to attempted reentry of a removed alien, and was sentenced to 42 months of imprisonment and three years of supervised release.
Judge Meyer ordered Silva-Garcia to begin serving his 18-month prison term after he completes his 42-month sentence for his more recent illegal reentry conviction.
This matter was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE). The case was prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Methamphetamine Trafficker Sentenced to Fifteen Years in PrisonRead the Press Release
BOISE - Juan Frausto-Bedolla, 29, of Tijuana, Mexico, was sentenced in U.S. District Court to fifteen years in federal prison, followed by five years of supervised release, for conspiracy to distribute methamphetamine, U.S. Attorney Bart M. Davis announced today. Frausto-Bedolla was sentenced by Chief U.S. District Judge David C. Nye. Frausto-Bedolla pled guilty to the offense on December 7, 2018.
According to court records, between May 2016 and August 2017, Frausto-Bedolla conspired to distribute methamphetamine in Idaho with several other codefendants. Frausto-Bedolla secured methamphetamine from out-of-state sources and brought it into Idaho for further distribution.
This case was investigated by Drug Enforcement Administration and Idaho State Police.
This indictment is the result of a joint investigation by the Organized Crime and Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies. 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. Program participants include the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Internal Revenue Service-Criminal Investigation; and the U.S. Marshals Service.
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Media Advisory – Federal and Local Officials to Hold Press Conference to Present $163,567 Forfeiture Award as a Result of Dismantling a Regional Drug Trafficking OrganizationRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that there will be a press conference at 12:30 p.m. on Friday, November 8, 2019, at Yakima City Hall – Council Chambers in Yakima, Washington, to make a significant law enforcement announcement.
WHO:
United States Attorney William D. Hyslop
Yakima County Sheriff Robert Udell
Yakima Chief of Police Matthew Murray
Assistant United States Attorney Benjamin D. Seal
Assistant United States Attorney Brian M. Donovan
United States Drug Enforcement Administration Resident-Agent-In-Charge Jason Diaz
United States Drug Enforcement Administration Special Agent Matt Petty
Law Enforcement Against Drugs Task Force Commander Edward Levesque
Law Enforcement Against Drugs Task Force Supervisor Sergeant Brian Luedtke
WHERE:
Yakima City Hall
Council Chambers
129 N 2nd Street
Yakima, WA 98901
OPEN PRESS
NOTE: All media representatives must present government-issued photo I.D. (i.e., driver’s license) as well as valid media credentials. Media representatives may begin to arrive at 12:00 p.m. Credentialed media are invited to use camera and audio equipment during the press conference.
Inquiries regarding logistics should be directed to Debra Doll, Executive Assistant to the United States Attorney, United States Attorney’s Office for the Eastern District of Washington, at 509-353-2767.
Maryland Man Pleads Guilty to Illegally Purchasing 35 Firearms in VirginiaRead the Press Release
ALEXANDRIA, Va. – A Forestville, Maryland man pleaded guilty today to making false statements in order to illegally purchase firearms.
“Preventing the illegal purchase and sale of firearms is a top priority,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “The defendant played a significant role in the trafficking of dozens of firearms from Virginia to Maryland and Washington, D.C., where they wound up in the hands of a convicted felon and presented a grave danger to our community.”
According to court documents, Juan Zimmerman, 26, used a fraudulently obtained Virginia identification card to purchase 35 firearms from various Federal Firearms Licensees throughout the Eastern District of Virginia between June and August 2018. After purchasing the firearms, Zimmerman transferred the firearms to others, including his cousin, who trafficked the firearms across state lines to Maryland and Washington, D.C. to other individuals. Three of the firearms Zimmerman illegally purchased have been recovered by law enforcement after being used in a number of violent crimes, including at least one homicide and one domestic violence shooting.
Zimmerman pleaded guilty to making false statements with respect to the purchase of firearms and faces a maximum penalty of five years in prison when sentenced on February 21, 2020. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after Senior U.S. District Judge T.S. Ellis III accepted the plea. Assistant U.S. Attorney Nicholas Murphy and Special Assistant U.S. Attorney Jason Trigger are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-265.
Manhattan U.S. Attorney Announces $12.3 Million Settlement with Lenox Hill Hospital for Submitting Fraudulent Medicare Claims for Urology Procedures and Hospital ServicesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Scott J. Lampert, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General (“HHS-OIG”) New York Regional Office, announced today that the United States filed and settled a civil fraud lawsuit against LENOX HILL HOSPITAL (“Lenox Hill”) and its corporate parent NORTHWELL HEALTH, INC. (“Northwell”) (together, “Defendants”). The Government’s Complaint-in-Intervention (the “Complaint”) alleges that Defendants violated the False Claims Act by fraudulently billing Medicare for healthcare services that did not comply with Medicare law. The Complaint specifically alleges that in conjunction with Defendants’ employment of Lenox Hill’s former chair of the Department of Urology, David B. Samadi (“Samadi”), Defendants submitted claims for: (1) endoscopic procedures that were performed, at least in part, by insufficiently supervised medical residents; (2) robotic surgeries for which, at some point during the surgery, Samadi left the patient improperly unattended in order to supervise a different surgery; (3) medically unnecessary hospital services; and (4) designated health services referred to Lenox Hill by Samadi when his compensation arrangement violated the federal Stark Law.
Under the settlement, approved by U.S. District Judge Denise Cote, Defendants agreed to pay $12.3 million to resolve the allegations in the Complaint. As part of the settlement, Defendants also admitted, acknowledged, and accepted responsibility for conduct alleged in the Complaint, including that “Defendants’ practices resulted in the submission of several million dollars of inappropriate claims to Medicare.”
Manhattan U.S. Attorney Geoffrey S. Berman said: “Patients put great trust in hospitals, particularly when it comes to surgery. Hospitals cannot pay surgeons for their referrals, and they cannot run their operating rooms like assembly lines. Defendants prioritized maximizing their own revenues over regulatory compliance. This Office will not tolerate such behavior, and today’s settlement makes clear that the Government will hold hospitals accountable when they engage in such misconduct.”
HHS-OIG Special Agent in Charge Scott J. Lampert said: “Lenox Hill Hospital elected to increase their profits by paying handsomely for referrals without any regard to patient care – ultimately violating Medicare rules and regulations. The Medicare program is designed to protect both beneficiaries and taxpayers. We will continue working with our law enforcement partners to enforce these rules.”
As alleged in the Complaint, from July 2013 through June 2018 (the “Covered Period”), Samadi oversaw Lenox Hill’s Department of Urology, including the training of its medical residents. During Samadi’s tenure, Defendants encouraged and facilitated surgical practices that violated Medicare’s rules and regulations that govern a teaching physician’s presence and availability during both endoscopy and high-risk, complex surgery. Although Medicare allows teaching institutions to utilize medical residents in the provision of surgical care, the law requires that a board certified senior surgeon provide adequate supervision. Throughout the Covered Period, in order to maximize the revenues that Samadi generated for Lenox Hill, Defendants allowed Samadi to engage in an overlapping surgical practice wherein he was insufficiently available to provide the supervisory oversight required by Medicare. Specifically, Defendants would schedule Samadi to perform two separate surgeries, one endoscopic and one robotic, at the exact same time. During the course of the two surgeries, a medical resident would remain with the patient undergoing an endoscopic procedure or operation. Meanwhile, Samadi himself would travel back and forth between the endoscopic room, and an adjacent operating room in which Samadi conducted high-risk, complex, surgeries utilizing a surgical robot. This practice not only violated Medicare law, it also violated Northwell’s own resident supervision policy – and it resulted in Defendants’ submission of false claims. Moreover, Samadi’s patients were never informed that their surgeries were scheduled to overlap with another of Samadi’s scheduled surgeries.
Samadi’s operating room practices also resulted in the submission of medically unnecessary claims. In a further effort to maximize Samadi’s availability to perform revenue-generating surgeries, Defendants allowed Samadi to perform minor diagnostic procedures in a Lenox Hill operating room. Operating room services, such as the services provided by operating room nurses and/or anesthesiologists, were medically unnecessary in the case of these minor procedures. Nonetheless, in conjunction with the minor diagnostic procedures that Samadi’s patients underwent in a Lenox Hill operating room, Defendants submitted claims to Medicare for the medically unnecessary operating room services provided. These unnecessary services were also ineligible for Medicare reimbursement.
Lastly, Defendants submitted claims for health services that violated the Stark Law. The Stark Law is a federal law that prohibits a hospital from receiving Medicare reimbursement for services referred by a physician with whom the hospital has a prohibited financial relationship. The law is intended to prevent conflicts of interest in physician referrals. Throughout the Covered Period, Defendants paid Samadi a guaranteed salary of over two million dollars each year, as well as an annual incentive bonus of an additional two to five million dollars each year. This compensation grossly exceeded fair market value because it factored in the value of Samadi’s referrals to Lenox Hill. In addition, in calculating Samadi’s incentive bonus, Lenox Hill included revenues from services not personally performed by Samadi. This inclusion of non-personally performed services in a physician’s incentive compensation also violated the Stark Law. Given these facts, Samadi and Lenox Hill had a prohibited financial relationship under the Stark Law throughout the Covered Period. Defendants therefore were not permitted to submit to Medicare reimbursement claims for the health services referred to them by Samadi.
As part of the settlement, Defendants admitted conduct alleged in the Complaint, including that:
- At the time of Samadi’s recruitment and hiring, Defendants prepared internal documents that contained analyses of Samadi’s future referrals to Lenox Hill for designated health services. These documents projected revenues of over four million dollars a year attributable to Samadi’s future referrals. These documents also projected that, without taking into account these revenues, Lenox Hill would operate Samadi’s medical practice at a loss of over one million dollars each year.
- Throughout the Covered Period, taking into account only the value of Samadi’s own collections, Lenox Hill operated Samadi’s medical practice at a loss of over one million dollars each year.
- From October 2016 through at least July 1, 2017, Northwell had an internal policy stating that “[w]hen a Teaching Physician is not present during non-Critical non-Key Portions of the procedure and is participating in another surgical procedure, he/she must arrange for another qualified surgeon to immediately assist the resident in the other case should the need arise.” The policy further stated, under the section titled “Teaching Physician Requirements for Endoscopy,” that “[t]he Teaching Physician must be present in the room for the entire viewing from the time the scope is inserted to the time the scope is removed.”
- During much of the Covered Period, Samadi performed surgical operations and procedures at Lenox Hill in the following manner:
- Samadi performed procedures in two operating rooms – OR 21 and OR 25, and sequenced the order of procedures such that portions of procedures performed in OR 21 overlapped with procedures performed in OR 25, and vice versa.
- During the portions of OR 21 and OR 25 procedures that overlapped, Samadi generally performed complex, robotic surgical procedures in OR 25, and residents assigned to be supervised by Samadi performed endoscopic operations and procedures in OR 21.
- Samadi rarely designated another attending urologist to assist in OR 21 for the portions of the procedure from which Samadi himself was absent because of his participation in another surgical procedure occurring in OR 25.
- In instances when Samadi stepped away from a procedure in OR 25 to supervise a procedure in OR 21, Samadi would freeze or pause the robotic equipment in OR 25 and leave the patient under the care of the anesthesiologist, operating room staff, and, in some instances, a urology resident. No other attending urologist was present in OR 25 for the portion of time that Samadi was absent, even though the surgery had not yet concluded. Samadi also did not inform any other attending urologist of the specific times during a surgery when he was absent from OR 25.
- It was not Samadi’s personal practice to inform his patients when their surgeries were scheduled to overlap with another of Samadi’s scheduled surgeries.
- Samadi performed cystograms and cystoscopies on patients in OR 21 in certain instances when it was not medically necessary to perform these procedures in an operating room setting. Lenox Hill submitted to Medicare claims for payment associated with the services rendered by operating room staff in conjunction with these procedures.
- Defendants’ practices resulted in the submission of several million dollars of inappropriate claims to Medicare.
Mr. Berman praised the outstanding investigative work of HHS-OIG. This case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorneys Jessica Jean Hu and Arastu K. Chaudhury are in charge of the case.
Man Sentenced for Illegal Possession of Firearms, Silencers and IEDRead the Press Release
RICHMOND, Va. – A Farmville man was sentenced yesterday to nearly eight years in prison for the illegal possession of 40 firearms and 23,000 rounds of ammunition by an unlawful user of controlled substances.
“An armed drug user presents grave dangers to our community and to law enforcement officers sworn to protect us,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Robert Baldwin was in possession of numerous extremely deadly weapons, devices, and ammunition, and opened up his home to juveniles to use and abuse illicit drugs. Simply put, the combination of drug use and possession of firearms is a recipe for disaster.”
According to court documents, on April 23, 2018, officers of the Farmville Police Department and the Virginia State Police executed a search warrant at the residence of Robert Baldwin, 50, on complaints that he was regularly using that residence for the consumption of marijuana by himself, his juvenile son, and students at Longwood University. In addition to marijuana and smoking devices, officers also recovered three illegal firearms silencers, 23 rifles, eight shotguns, six semi-automatic pistols, three revolvers, various gun parts, an improvised explosive device, more than 23,000 rounds of ammunition, tactical armor, and radios and computer equipment belonging to the Virginia State Police.
On July 26, 2019, Baldwin pleaded guilty and admitted that he was an illegal drug user and that he knowingly possessed each of the seized firearms.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division, made the announcement after sentencing by U.S. District Judge John A. Gibney, Jr. Assistant U.S. Attorneys Stephen W. Miller and Kenneth Simon prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:19-cr-83.
Man Sentenced for Cyberstalking, ID Theft and Computer HackingRead the Press Release
RICHMOND, Va. – A Culpeper County man was sentenced yesterday to over six years in prison for cyberstalking, unauthorized access to a protected computer to obtain information, and aggravated identity theft.
According to court documents, from February to April 2018, Satyasurya Sahas Thumma, 23, dated and had a sexual relationship with Victim 1. During their dating period, Victim 1 sent Thumma multiple nude photos of herself. In April 2018, Victim 1 broke up with Thumma, and after a failed effort to get Victim 1 back, Thumma began an unsettling cyber harassment campaign. Posing as an unknown person, Thumma began sending Victim 1 anonymous text messages via a messaging app that allows users to make text messages appear to come from numbers other than their actual cell phone number. He threatened to post her nude photos to the public, created a Snapchat account to post the nude photos online and invited many of her friends to join the account, and threatened to send the nude photos to Victim 1’s parents, which he eventually did.
Thumma’s relationship with Victim 2 started in the summer of 2018 after they met through an online dating site. Victim 2 also sent Thumma multiple nude photos and videos during the several months they dated. When Victim 2 broke up with Thumma, he used the same anonymizing messaging app that he used with Victim 1 to send harassing and disturbing texts to Victim 2 and her mother. Thumma manipulated Victim 2 with a conspiracy story purportedly involving violent individuals who were threatening him and who had hacked into his online accounts to steal Victim 2’s nude photos. He sent Victim 2 multiple emails from secure, overseas providers that included extortion demands, threats of death, and gruesome photos of women who were dead or being tortured. To add credibility to his violent conspiracy charade, Thumma included his own true phone number and email address on various messages to make it appear that “they” were threatening him as well.
In March 2019, Thumma was involved in a DUI accident in Richmond that resulted in him being transported by EMS to the hospital. While lying on a hospital bed wearing a gown that appeared to be spattered with some blood, Thumma feigned being unconscious and took a selfie photograph. Several hours after being released from the hospital, Thumma used the anonymous texting application to send his hospital selfie photo to Victim 2 and her mom with the message, “Ur next.” During Thumma’s harassment of Victim 2, he sent her nude photos to both her mom and dad, and to their family’s church email address. In addition, Thumma hacked into Victim 2’s Twitter account and sent approximately 30 messages containing her nude photos to her Twitter friends. He also hacked into her Facebook account and changed the password, and claimed in messages to Victim 2 that the violent conspirators were responsible for the Twitter and Facebook hacks.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and David W. Archey, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by U.S. District Judge John A. Gibney, Jr. Assistant U.S. Attorney Brian R. Hood prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:19-cr-103.
Macy Man Sentenced to 18 Months for RobberyRead the Press Release
United States Attorney Joe Kelly announced that Bryant Freemont, Jr., age 19, was sentenced today in federal court in Omaha, Nebraska for Robbery in Indian Country. United States District Court Judge Robert F. Rossiter, Jr., sentenced Freemont to 18 months of imprisonment. There is no parole in the federal system. After completing his term of imprisonment, Freemont will begin a three-year term of supervised release.
On the morning of July 14, 2018, Freemont approached the victim, an emergency medical technician, in the parking lot outside of the Carl T. Curtis Medical Center in Macy, Nebraska. The victim had just completed her shift and was in her vehicle preparing to drive home. Freemont demanded money from the victim and stated that he had a gun. After the victim initially did not provide any money, Freemont reached into his waistband. The victim thought Freemont was pulling out a firearm. The victim then gave Freemont all the money she had on her–$20. Freemont then fled the scene. Freemont later admitted to law enforcement to committing the robbery and stated that he did not actually have a firearm.
The case was investigated by the Federal Bureau of Investigation.
Local judge charged with fraudRead the Press Release
HOUSTON - A Harris County judge has been indicted on allegations of wire fraud, announced U.S. Attorney Ryan K. Patrick and Special Agent in Charge Perrye K. Turner of the FBI - Houston Division.
Judge Alexandra Smoots-Thomas, 44, of Houston, is currently the presiding judge for the 164th District Court for the State of Texas and has jurisdiction over Texas civil cases located within Harris County.
A federal grand jury returned the seven-count indictment Oct. 24, which was unsealed today as she surrendered to federal authorities. She is expected to make her initial appearance before U.S. Magistrate Judge Peter Bray today, as early as 10:00 a.m.
“The defendant in this case is a judge, whose responsibilities are to make sure the law is followed and carried out,” Turner. “She was entrusted to serve the citizens of Harris County with duty and honor. However, the allegations contained in today’s indictment show that the judge put personal enrichment over this duty and honor."
Smoots-Thomas allegedly embezzled campaign contributions individuals and political action committees had made to her re-election campaigns. The indictment alleges Smoots-Thomas repeatedly solicited campaign contributions on the premise the money would be used to help facilitate her re-election campaigns in both 2012 and 2016. She allegedly used campaign funds for non-campaign expenses to include monthly home mortgage payments, private school tuition payments, personal travel expenses, personal luxury items and cash withdrawals. Smoots-Thomas concealed this spending from both her campaign treasurer and the Texas Ethics Commission by filing false campaign finance reports, according to the charges.
Each count of wire fraud carries a possible sentence of up to 20 years in federal prison as well as a maximum $250,000 fine.
The FBI conducted the investigation. Assistant U.S. Attorneys Ralph Imperato and John Pearson are handling the matter.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Kirkwood Builder Sentenced for Swindling Homebuyers of Approximately $400,000Read the Press Release
St. Louis, MO – Morgan Bullock, 33, of Camdenton, Missouri, was sentenced to 12 months in prison and restitution in the amount of $136,458.68 for his scheme to defraud homebuyer customers of Bullock Building and Development, LLC. He appeared in federal court this afternoon before U.S. District Judge Audrey G. Fleissig.
According to court documents and statements made in court, Bullock owned and operated Bullock Building and Development, a construction company he operated out of Camdenton, Missouri. During 2015, Bullock and two partners purchased approximately five acres of land at 425 Emmerson Avenue, and planned to build eight residential homes in what they called Emmerson Estates. Bullock and his partners took out a loan to purchase the land from a local bank. Bullock then applied with the City of Kirkwood for approval of his development plan, and building permits. Before giving approval to build the subdivision, the city required Bullock to obtain approval from the Metropolitan Sewer District (MSD) and also to post a letter of credit as a performance guarantee from a financial institution in the amount of approximately $500,000. Bullock never obtained approval for the construction from MSD, and he was unable to find a financial institution willing to issue him and his company the performance guarantee. Thus, Bullock never obtained final approval from Kirkwood to develop the subdivision. Nevertheless, during 2017, Bullock marketed the new home construction in Emmerson Estates, and obtained lot deposits from six families based upon his false representations that he would build their new homes on the selected lots. Bullock never advised the homebuyers that he did not have approval from Kirkwood to develop the subdivision and build their promised homes. Despite promising that he would only use their lot deposits in the construction of their new homes, Bullock instead used the victim homebuyers’ funds for his own personal use and to pay off contractors working on a separate unrelated construction project in the Camdenton, Missouri area. Bullock made numerous false representations to the homebuyers as to why construction had not begun on their homes, blaming the delays on purported weather issues, contractor problems, and other false excuses. Ultimately, one of the homebuyers demanded his family’s deposit back, and Bullock wrote him a $50,000 insufficient funds check, knowing that there were not sufficient funds in his bank account. Finally, the lender foreclosed on the Emmerson Estates land for nonpayment by Bullock, and Bullock’s scheme was fully discovered. The six victim homebuyers included families with young children as well as retirees who used substantial portions of their life savings to make the lot deposit payments to Bullock. The total loss to the victim homebuyers was approximately $400,000.
As one victim stated in a letter to the court, “Morgan Bullock never appeared even the slightest bit remorseful about his scam. Even when it became completely obvious that we were victims an intentional fraudulent scam, Bullock remained smug, arrogant, and unphased. When I informed him to the authorities, he simply said, ‘Do what you think you have to do, I don’t care. But you won’t get your money back that way.’”
The United States Postal Inspection Service and the Federal Bureau of Investigation investigated this case. Assistant U.S. Attorney Hal Goldsmith is handling the case for the U.S. Attorney’s Office.
Kentucky Doctor Agrees to Pay $65,404 for Allegedly Engaging in Illegal Kickback Scheme with OK Compounding PharmacyRead the Press Release
A Kentucky doctor joined a growing list of medical professionals implicated in an illegal kickback scheme involving OK Compounding. This is the eleventh kickback settlement since November 2018.
Jonathan Moore, 50, a licensed doctor of podiatry, agreed to pay the government $65,404 for allegedly accepting illegal kickback payments from OK Compounding, LLC, announced U.S. Attorney Trent Shores.
“Eleven kickback settlements and counting. The manipulation of our federal health insurance programs cannot be tolerated,” said U.S. Attorney Trent Shores. “There are clearly defined laws and standards that must be followed when prescribing compounding medications. Greedy doctors and marketers who have conveniently ignored those laws for their own personal enrichment will be held accountable. I appreciate the diligent work of my Affirmative Civil Enforcement team. They have an important mission and role within my office. They use civil litigation tools to ensure corrupt medical professionals cannot defraud the federal health care system and American taxpayers.”
This civil settlement resulted from an investigation into numerous health care providers writing prescriptions for pain creams compounded and sold by OK Compounding in return for payments.
Beginning in 2013, Dr. Moore prescribed pain creams for his patients, facilitating the sale and distribution of the creams. As compensation for his services, OK Compounding paid Dr. Moore what was characterized by the parties as “medical director fees” based upon an hourly rate. However, the payments Dr. Moore received from the company were, in actuality, “kickbacks.” Because some of the patients were insured by Medicare and TRICARE, federal health insurance programs, the kickbacks were in violation of the False Claims Act.
It is illegal to pay or receive “kickbacks” in conjunction with federal health care insurance. Prohibitions against kickbacks are crucial to insure that financial motives do not undermine the medical judgment of physicians and other health care providers. The civil False Claims Act is an important tool used to protect the integrity of taxpayer-funded health care programs.
To report fraud and abuse against the Federal government in the Northern District of Oklahoma, please contact the U.S. Attorney’s Office at 918-382-2700 and speak to a member of the ACE Unit.
This matter was handled by Assistant U.S. Attorney Marianne Hardcastle, and is the product of a collaborative investigation by the Defense Criminal Investigative Service, Department of Labor–Office of Inspector General (OIG), IRS–Criminal Investigation Division, U.S. Postal Service–OIG, FBI, Department of Veterans Affairs–OIG and the Department of Health and Human Services–OIG.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Justice Department Welcomes Arkansas Joining T-Mobile/Sprint SettlementRead the Press Release
The Department of Justice announced today that it has filed an amended complaint that adds Arkansas as a plaintiff in the suit and proposed settlement relating to the proposed merger of T-Mobile and Sprint. Arkansas joins Colorado, Florida, Kansas, Louisiana, Nebraska, Ohio, Oklahoma and South Dakota in the settlement, which is designed to launch Dish Network Corp., a Colorado-based satellite television provider, as a fourth nationwide provider of retail mobile wireless services. In addition to protecting competition, the proposed settlement will expedite the availability of high-quality 5G networks for American consumers and entrepreneurs.
“We are gratified that Arkansas shares our view of the tremendous benefits to competition that will arise out of the proposed consent judgment,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “A combined T-Mobile and Sprint, coupled with competition from Dish, will provide increased value to residents of Arkansas and consumers nationwide.”
The Department’s Antitrust Division and now nine co-plaintiff states have sued to block this transaction, and have agreed to settle the lawsuit based on the proposed settlement. That settlement, if approved by the court, would resolve the Justice Department’s and the co-plaintiff states’ competitive concerns.
Under the terms of the proposed settlement, T-Mobile and Sprint must divest Sprint’s prepaid business, including Boost Mobile, Virgin Mobile and Sprint prepaid, to Dish. The proposed settlement also provides for the divestiture of certain spectrum assets to Dish. Additionally, T-Mobile and Sprint must make available to Dish at least 20,000 cell sites and hundreds of retail locations. T-Mobile must also provide Dish with robust access to the T-Mobile network for a period of seven years while Dish builds out its own 5G network.
T-Mobile US Inc. is a Delaware corporation headquartered in Bellevue, Washington. In 2018, T-Mobile posted revenues of more than $43 billion. Deutsche Telekom AG, a German corporation headquartered in Bonn, Germany, is the controlling shareholder of T-Mobile US Inc.
Sprint Corporation is a Delaware corporation headquartered in Overland Park, Kansas. In 2018, its posted revenue was over $32 billion. Sprint is controlled by SoftBank Group Corp., a Japanese Corporation headquartered in Tokyo, Japan.