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Thursday 7 November 2019
Wetzel County man admits to firearms violationsRead the Press Release
WHEELING, WEST VIRGINIA – Joseph Harrison, of Pine Grove, West Virginia, has admitted to firearms charges, U.S. Attorney Bill Powell announced.
Harrison, age 49, pled guilty today to one count of “Unlawful Possession of a Firearm” and one count of “Possession of a Firearm with an Obliterated Serial Number.” Harrison, who is not permitted to have a firearm because of a prior convictions, admitted to having a .45 caliber pistol with an obliterated serial number and ammunition in June 2019 in Wetzel County.
Harrison faces up to 10 years incarceration and a fine of up to $250,000 for unlawful possession and faces up to five years incarceration and a fine of up to $250,000 for the obliterated serial number. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney David J. Perri is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Wetzel County Sheriff’s Office investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Waterbury Man Pleads Guilty to Cocaine Trafficking OffenseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that DESNY SOSA-HERNANDEZ, 40, of Waterbury, pleaded guilty yesterday in Bridgeport federal court to a federal cocaine trafficking offense.
According to court documents and statements made in court, in March 2019, law enforcement arranged two controlled purchases of cocaine in Bridgeport from Sosa-Hernandez and his co-conspirator, Edgard Martinez.
On March 20, 2019, after investigators coordinated the purchase of 300 grams of cocaine from Sosa-Hernandez and Martinez, Martinez drove from his residence in Tolland to pick up Sosa-Hernandez at his residence in Waterbury. The pair then intended to drive together to Bridgeport to consummate the drug transaction. When Martinez arrived at Sosa-Hernandez’s residence, investigators apprehended Martinez and Sosa-Hernandez and seized a brown paper bag containing 300 grams of cocaine inside Martinez’s vehicle. A subsequent search of Sosa-Hernandez’s residence revealed shoeboxes containing a total of $18,111 in cash, and a search of Martinez’s residence revealed a .45 caliber handgun, a quantity of cocaine, and items used to process and package narcotics.
Sosa-Hernandez pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, cocaine, an offense that carries a maximum term of imprisonment of 20 years. He is scheduled to be sentenced by U.S. District Judge Stefan R. Underhill on January 29, 2020.
Sosa-Hernandez is released on a $100,000 bond pending sentencing.
On September 3, 2019, Martinez, 39, pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, cocaine, and one count of possession of a firearm by a previously convicted felon. Martinez, who is detained, is scheduled to be sentenced on January 20, 2020.
This matter is being investigated by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area Task Force (HIDTA) and Milford Police Department. The Task Force includes participants from the Connecticut State Police and the Milford, Norwalk, Stamford, Stratford and Bridgeport Police Departments. The case is being prosecuted by Assistant U.S. Attorney Nathaniel J. Gentile.
Washington, DC Man Sentenced to Prison for Filing False Tax ReturnsRead the Press Release
PITTSBURGH, PA - A resident of Washington, DC, has been sentenced in federal court in Pittsburgh to 24 months’ incarceration, one year supervised release, and restitution in the amount of $307,692.51 on his conviction of aiding in the filing of false tax returns, United States Attorney Scott W. Brady, announced today.
United States District Judge David S. Cercone imposed the sentence on Jaason J. Weatherly.
According to the information presented to the court, Weatherly, filed false tax returns in 2012 and 2013 for other persons which contained false W-2 forms, income and withholding information.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
The U.S. Attorney commended the Internal Revenue Service-Criminal Investigation for the successful investigation that led to the prosecution of Jaason J. Weatherly.
Virgin Islands Police Officer Pleads Guilty to Bank FraudRead the Press Release
St. Thomas, USVI –United States Attorney Gretchen C.F. Shappert for the District of the Virgin Islands announced today that V.I.P.D. Officer Yomont King pleaded guilty to two counts of bank fraud.
According to court documents filed in the case, in 2018 King deposited stolen and forged checks into his personal bank account on multiple occasions, totaling $2,800. King will be sentenced at a later date.
This case is being investigated by the FBI and the Virgin Islands Police Department Economic Crimes Unit. It is being prosecuted by Assistant United States Attorney Nathan Brooks.
Vancouver, Washington, man charged with multiple federal crimes for online exploitation of teensRead the Press Release
Tacoma – A 39-year-old Vancouver, Washington, man was charged today in U.S. District Court in Tacoma with nine federal sex crimes for his scheme to entice and pressure young teens into sending him sexually explicit photos. JOSHUA HENRY PUNT is charged with four counts of production of child pornography and five counts of enticement of a minor for his six-month criminal scheme. PUNT used the messaging app ‘Kik’ and Snapchat to connect with young teens across the U.S. Victims in this case have been identified in New York, Arkansas, California, Texas, and West Virginia.
“This defendant is the ‘dangerous stranger’ we all hope our kids never meet,” said U.S. Attorney Brian T. Moran. “He is alleged to have trolled the internet, posing as a teen, and probing for vulnerabilities in those looking for friendship. What followed were threats, blackmail, and the horror of possibly having private moments put on display.”
According to the criminal complaint filed in the case, law enforcement has identified five victims who reported similar details of how PUNT contacted them on the ‘Kik’ messaging app or by Snapchat pretending to be a teen-age boy. The incidents charged in the case began in approximately October 2018 and continued until May 2019. After convincing the teens to send sexually explicit photos, PUNT demanded additional photos and videos of sex acts. PUNT threatened to send the photos he already had to the victims’ peers at their schools or in their community if they did not provide more images.
After a victim in New York went to police, authorities traced the contact to PUNT and seized his electronic devices from his home in Vancouver. The phone contained hundreds of sexually explicit images and videos, and authorities are working to identify additional victims.
PUNT was arrested on May 21, 2019, and was originally charged in Clark County Superior Court. Clark County Prosecutors are working closely with federal prosecutors and determined the case was best pursued in federal court.
Production of Child Pornography is punishable by a mandatory minimum 15 years and up to 30 years in prison. Enticement of a minor is punishable by up to life in prison. If convicted, the ultimate sentence will be determined by the Court based on the advisory Sentencing Guidelines and other statutory factors.
The charges contained in the complaint 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 Vancouver Police Department’s Digital Evidence Cybercrime Unit, in conjunction with Homeland Security Investigations. Law enforcement agencies in other jurisdictions are also assisting this investigation. The case is being prosecuted by Assistant United States Attorney Angelica Williams.
punt_complaint.pdfUnited States Files Complaint against Pharmaceutical Company Gilead for Patent Infringement Related to Truvada® and Descovy® for Pre-Exposure Prophylaxis of HIVRead the Press Release
The Department of Justice announced today that the United States has filed a complaint alleging infringement by Gilead Sciences Inc. and Gilead Sciences Ireland UC (collectively, Gilead) of four U.S. patents awarded to and owned by the United States, Department of Health and Human Services (HHS). These patents cover specific drug regimens used for pre-exposure prophylaxis (commonly referred to as PrEP) that prevents HIV transmission. The complaint alleges infringement in connection with two of Gilead’s drugs, Truvada® and Descovy®, which Gilead markets for use to prevent HIV as part of the PrEP regimen.
“Gilead has received billions of dollars in revenue from HIV prevention regimens invented by HHS researchers and patented by the United States,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “This lawsuit demonstrates the Department’s commitment to protect the government’s intellectual property and hold accountable those who seek to unfairly gain from the government’s research without paying reasonable royalties as the law requires.”
“HHS recognizes Gilead’s role in selling Truvada® and Descovy® to patients for prevention of HIV. Communities have put these drugs to use in saving lives and reducing the spread of HIV,” said HHS Secretary Alex Azar II. “However, Gilead must respect the U.S. patent system, the groundbreaking work by CDC researchers, and the substantial taxpayer contributions to the development of these drugs. The complaint filed today seeks to ensure that they do.”
Starting in the early 2000’s, researchers at the Centers for Disease Control and Prevention’s (CDC) Division of HIV/AIDS Prevention invented an innovative two-drug regimens that could, for the first time, prevent people from becoming infected with HIV. These breakthrough inventions, now covered by four United States patents, demonstrated that regular prophylactic doses of a combination of two antiretroviral drugs could prevent the transmission and reproduction of the virus that causes AIDS in at-risk populations. To date, the government has spent hundreds of millions of dollars on clinical studies of these treatment regimens.
These regimens have ushered in a new era in HIV prevention and are currently a critical component of the government’s efforts to end the HIV epidemic. During the 2019 State of the Union address, President Donald J. Trump announced a new initiative entitled “Ending the HIV Epidemic: A Plan for America,” with the goal of reducing new HIV infections by 90 percent by 2030. PrEP drug regimens are an appropriate centerpiece of this initiative as clinical trials based on the patented research have shown that approximately 99 percent of at-risk persons who adhere to a once-daily PrEP regimen are protected from HIV transmission. Expanding the use of PrEP drug regimens will be a key component for preventing the spread of HIV across the United States.
Gilead manufactures, markets, and sells Truvada® and Descovy®. Gilead had originally obtained FDA approvals for those products to be used solely for treating HIV in combination with other drugs. It was only after CDC’s innovative PrEP work and subsequent human trials that Gilead sought FDA approvals for Truvada®, and more recently Descovy®, to be used as part of PrEP drug regimens to prevent HIV. Gilead now markets and sells Truvada® and Descovy® for PrEP regimens that CDC developed and patented.
Gilead has repeatedly refused to obtain a license for use of the patented drug regimens, while continuing to profit from hundreds of millions of dollars of publicly funded research. Rather than pay royalties owed to the United States, Gilead has challenged the validity of all four patents before the Patent and Trademark Office. This move contradicts the testimony of Gilead’s CEO, Daniel O’Day, before the Oversight Committee of the U.S. House of Representatives that Gilead had “chosen not to challenge [the United States’] patents because we value our collaborative relationship with the agency.” The United States maintains that all four patents were validly issued and will respond as appropriate.
This matter is being handled by the Commercial Litigation Branch, Intellectual Property Staff, of the Department of Justice’s Civil Division, with assistance from the U.S. Attorney’s Office for the District of Delaware. The claims asserted against the defendants are allegations only, and there has been no determination of liability.
Additional information about the Commercial Litigation Branch and its Intellectual Property Staff can be found at https://www.justice.gov/civil/intellectual-property-section. For more information about the U.S. Attorney’s Office for the District of Delaware, visit its website at https://www.justice.gov/usao-de. Information about Ending the HIV Epidemic: A Plan for America, can be found at https://www.hiv.gov/federal-response/ending-the-hiv-epidemic/overview.
U.S. Attorney's Office reaches settlement agreement with Lanier Technical College to resolve ADA lawsuit alleging discriminatory terminationRead the Press Release
GAINESVILLE, Ga. – The U.S. Attorney’s Office today announced that it reached an agreement with Lanier Technical College, a unit of the Technical College System of Georgia, to resolve the Department’s lawsuit alleging disability discrimination in violation of the Americans with Disabilities Act (ADA). The agreement resolves the Department’s complaint alleging that the college terminated an employee on the basis of her disability, multiple sclerosis, after years of service to the college. The complaint further alleges that, after the employee took three days of sick leave one summer, the college removed her from the teaching schedule for an entire school semester, thus reducing her hours and pay to zero, due to her multiple sclerosis.
“Nearly thirty years after the passage of the Americans with Disabilities Act, cases like these demonstrate that there is still work to be done to ensure that the hard working people in our district do not face disability discrimination at work or otherwise,” said U.S. Attorney Byung J. “BJay” Pak. “It is of paramount importance that state institutions like Lanier Tech set the example in rooting out discriminatory policies and practices.”
“Individuals should not face unlawful barriers to employment because they have a chronic illness or other disability,” said Assistant Attorney General Eric Dreiband. “This agreement is another step towards eliminating discriminatory employment barriers for people with disabilities. We applaud Lanier Technical College for committing to change its policies and practices, and compensating its former employee who was unlawfully terminated from her job.”
Under the agreement, Lanier Technical College will revise its policies to ensure compliance with the ADA, implement new policies to ensure it does not discriminate on the basis of disability in its scheduling practices, train staff on the ADA, and file periodic reports with the Department on implementation of the agreement. The college will pay $53,000 in back pay and compensatory damages to its former employee. This matter was based on a referral from the Equal Employment Opportunity Commission’s Atlanta District Office, which completed the initial investigation of the facts.
Assistant U.S. Attorney Tiffany Johnson handled this case for the Northern District of Georgia jointly with the Civil Rights Division of the Department of Justice.
To read the settlement agreement, please click here https://www.ada.gov/lanier_sa.html, and to read the complaint please click here https://www.ada.gov/lanier_complaint.html. For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the ADA, please call the Department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
U.S. Attorney Announces the Arrest of 27 Individuals, Including NYPD Employees, for A Massive Bribery Scheme Relating to No-Fault Automobile Insurance PoliciesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), Anthony A. Scarpino Jr., the Westchester County District Attorney, Keith M. Corlett, Superintendent of the New York State Police (“NYSP”), and James P. O’Neill, Commissioner of the New York City Police Department (“NYPD”), announced the arrest today of 27 individuals – including five 911 operators and a uniformed police officer employed by the New York City Police Department (“the NYPD Defendants”) – in connection with a multimillion-dollar scheme to commit bribery and violate the Health Insurance Portability and Accountability Act (“HIPAA”) (the “No-Fault Scheme”). Twenty-three of the 27 defendants were arrested this morning in New York and New Jersey and are scheduled to appear before U.S. Magistrate Gabriel Gorenstein in federal court later today. Defendant LATIFAH ABDUL-KHALIQ will be presented today before a U.S. Magistrate Judge in North Carolina, and defendant KOURTNEI WILLIAMS will be presented today before a U.S. Magistrate Judge in Miami, Florida. Defendant LEON BLUE, a/k/a “Boochie,” is in custody in New Jersey and will be presented in Manhattan at a later date. Defendant TARA ROSE, a/k/a “Christine Waters,” a/k/a “Christine Hinds,” a/k/a “Taylor Hinds,” was also arrested this morning, and will be presented in Manhattan at a later date. The case is assigned to U.S. District Judge Paul G. Gardephe.
As part of the scheme, the alleged ringleader, defendant ANTHONY ROSE, a/k/a “Todd Chambers,” and his co-conspirators bribed 911 operators, medical personnel, and police officers for the confidential information of tens of thousands of motor vehicle accident victims. Using this information, ROSE and his co-conspirators contacted victims, lied to them, and steered them to clinics and lawyers handpicked by ROSE and his associates. These clinics and lawyers then paid ROSE kickbacks for these referrals, which ROSE distributed to co-conspirators as payments and bribes.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Anthony Rose and his associates masterminded a brazen scheme that involved bribing 911 operators, medical personnel, and police officers for the confidential information of tens of thousands of motor vehicle accident victims. These actions have undermined the integrity of our emergency and medical first responders. This Office is committed to rooting out corruption wherever it is found, and will not rest until those who seek to profit by corrupting our public institutions are bought to justice.”
FBI Assistant Director William F. Sweeney Jr. said: “The charges alleged in today’s indictment describe a scheme that blatantly violated HIPAA laws and actively targeted those the act was established to protect. May today’s arrests be a reminder to everyone that capitalizing on the pain and suffering of others won’t win you any favors in the court of law.”
Westchester District Attorney Anthony A. Scarpino Jr. said: “This five-year-long collaborative investigation, initiated by my Office and the New York State Police, is significant as it has exposed the systematic flaws in the no-fault insurance laws and those who seek to abuse them. My Office is committed to uncovering fraud and prosecuting those who profit by abuse. The nature of this fraud and bribery results in higher insurance premiums and unnecessary medical costs which impacts us all. Hopefully, this prosecution will act as a deterrent to those who seek to profit illegally by gaming the system. I want to thank our law enforcement partners – U.S. Attorney Berman and the Southern District, the New York State Police, the National Insurance Crime Bureau, New York State Department of Financial Services and the F.B.I. – in rooting out this extensive corruption and bringing those responsible to justice.”
State Police Superintendent Keith M. Corlett said: “It is unconscionable for any entrusted public official to use their authority or position as a public servant to take advantage of others, especially in the manner alleged. I commend our State Police members and all of our law enforcement partners for their outstanding investigative work on this case. It sends a clear message that no one is above the law, and such alleged abuse of power, especially when it involves the manipulation of victims, will not be tolerated.”
NYPD Commissioner James P. O’Neill said: “Corruption, in all forms, is intolerable within the NYPD and we continue to work with our law enforcement partners to expose these sorts of schemes. Insurance fraud costs companies and policy holders millions upon millions of dollars a year and I want to thank the FBI, the U.S. Attorney’s Office in the Southern District of New York, the New York State Police, the National Insurance Crime Bureau, the NYC Department of Financial Services, the Westchester County D.A.’s office and our NYPD investigators who brought justice for victims in this case.”
According to allegations contained in the Indictment[1] unsealed today in Manhattan federal court:
Background of the Scheme
The charges in the Indictment result from a multi-year investigation of a widespread bribery, corruption, and kickback scheme relating to New York and New Jersey no fault automobile insurance. Since 2017, the U.S. Attorney’s Office for the Southern District of New York, the FBI, and the Westchester County District Attorney’s Office have been investigating a criminal enterprise that utilizes the New York and New Jersey no-fault automobile insurance regime to earn millions of dollars in illegal profits.
New York and New Jersey no-fault insurance laws require a driver’s automobile insurance company to pay automobile insurance claims automatically for certain types of motor vehicle accidents, provided the claim is legitimate, and is below a particular injury or damages threshold. Pursuant to these requirements, insurance companies will often pay medical service providers directly for the treatment they provide to automobile accident victims, without the need to bill the victims themselves. This process resolves automobile claims without apportioning blame or fault for the accident, thereby avoiding protracted disputes, and the costs associated with an extended investigation of the accident. ANTHONY ROSE, a/k/a “Todd Chambers,” and his associates, exploited these procedures by bribing individuals with access to confidential information about motor vehicle accident victims, using this information to contact victims under false pretenses, and steering these victims to seek treatment at medical clinics and legal representation from lawyers who were willing to pay kickbacks for the referrals.
Since at least in or about 2014, ROSE and his co-conspirators have bribed as many as 50 people, whom they called “lead sources” who, at the time they accepted the bribes, were working for federally funded hospitals (the “Hospital Defendants”), the NYPD (the “NYPD Defendants”), and other entities. ROSE paid these lead sources as much as $4,000 per month, and continuously worked to identify new lead sources, largely through word of mouth, and through the extensive corrupt network he established. Lead sources were paid in cash and “off the books.” In return, these lead sources unlawfully disclosed protected, confidential information to ROSE and his co-conspirators including victims’ names, contact information, and medical information.
After receiving the confidential victim information from the lead sources, ROSE and his associates provided the information to co-conspirators working at Rose’s Call Center (the “Call Center Defendants”) located in Brooklyn, New York. The Call Center was staffed with 10 to 15 “employees,” who contacted the accident victims on a daily basis and steered them to seek medical treatment at clinics and law firms handpicked by ROSE. The Call Center Defendants followed a pre-established “script” during these communications. Among other things, the Call Center Defendants falsely told accident victims that they were calling from an organization affiliated with the New York Department of Transportation, and that their organization had obtained the victims’ contact information through a so-called Personal Injury Hotline. The Call Center Defendants also brazenly lied that they were calling to protect victims from people who obtain victims’ information illegally and mislead victims into seeking treatment with certain providers. In actuality, the true perpetrators of these illegal acts were none other than ROSE and his co-conspirators.
In selecting which motor vehicle accident victims to call, ROSE instructed the Call Center Conspirators to target victims from low-income neighborhoods because, in ROSE’s view, these individuals could be more easily brought into the scheme.
Scope and Participants In the Scheme
From at least in or about 2014 to the present, ROSE and his co-conspirators illegally steered more than 6,000 motor vehicle accident victims to participating clinics and lawyers, who paid kickbacks in return for the referrals. In addition, this figure is a fraction of the number of actual accident victims whose confidential information was unlawfully disclosed as part of the No-Fault Scheme. The Call Center Conspirators successfully induced approximately 1 in 10 accident victims to seek treatment or representation from participating clinics and lawyers. Thus, the No-Fault Scheme resulted in the improper disclosure of the confidential information of at least 60,000 motor vehicle accident victims. ROSE and co-conspirators further earned, on average, approximately $3,000 per successful referral.
ROSE and the co-conspirators went to elaborate lengths to conceal the No-Fault Scheme from law enforcement. Among other deceptive tactics, the co-conspirators generally referred to one another only by aliases; used “burner” phones with temporary and unidentifiable phone numbers, switched their phone every 60 days; set up numerous fictitious companies; corresponded through encrypted mobile applications; and utilized concealed spreadsheets, which tracked the bribe payments to lead sources, in secret email accounts that co-conspirators could access remotely. The members of the conspiracy also assigned unique code names to each lead source, such as “J1,” “P2,” and “G6,” and used these code names to refer to lead sources during communications rather than using their true names.
The Indictment, unsealed today, charges ROSE and the Hospital Defendants with conspiracy to violate the Travel Act, unlawful disclosure of protected health care information, and bribery. Six other leaders of the conspiracy, including members of ROSE’s family, and the five Call Center Defendants were charged with conspiracy to violate the Travel Act. In addition, the six NYPD Defendants were charged with conspiracy to violate the Travel Act and bribery. The names of the defendants, the charges against them, and other information is set forth below.
* * *
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as the sentencing of the defendants will be determined by a judge.
Mr. Berman praised the work of the FBI, the New York State Police, the New York City Police Department, the New York City Department of Financial Services, the Westchester County District Attorney’s Office, and the National Insurance Crime Bureau. Mr. Berman noted that the investigation is ongoing.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit, and the White Plains Division. Assistant United States Attorneys Mathew Andrews, Louis A. Pellegrino, Celia Cohen, and Courtney Heavey are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the texts of the Indictment and the descriptions of the Indictment set forth herein constitute only allegations and every fact described should be treated as an allegation.
Defendant
Age
Hometown
Charges (Potential Maximum Term of Imprisonment)
ANTHONY ROSE,
a/k/a “Todd Chambers”
51
Jamaica, New York
Travel Act conspiracy, Wrongful disclosure of healthcare information, federal programs bribery.
(25 years)
JELANI WRAY,
a/k/a “Lani”
a/k/a “J.R.”
35
Brooklyn, New York
Travel Act Conspiracy.
(5 years)
NATHANIEL COLES,
a/k/a “Nat”
66
Cortlandt Manor, New York
Travel Act conspiracy, Wrongful disclosure of healthcare information, federal programs bribery.
(25 years)
TARA ROSE,
a/k/a “Christine Waters,”
a/k/a “Christine Hinds,”
a/k/a “Taylor Hinds”
48
Jamaica, New York
Travel Act Conspiracy.
(5 years)
ANTHONY ROSE, Jr.,
a/k/a “Sean Wells”
32
Cambria Heights, New York
Travel Act conspiracy, federal programs bribery.
(15 years)
CHRISTINA GARCIA,
a/k/a “Cindy”
35
Jersey City, New Jersey
Travel Act Conspiracy.
(5 years)
LUIS VILELLA,
a/k/a “Angel Martinez”
32
Bronx, New York
Travel Act Conspiracy.
(5 years)
LEON BLUE,
a/k/a “Boochie”
54
Brooklyn, New York
Travel Act conspiracy, Wrongful disclosure of healthcare information, federal programs bribery.
(25 years)
CLARENCE FACEY,
a/k/a “Face”
34
Brooklyn, New York
Travel Act Conspiracy.
(5 years)
ANA RIVERA,
a/k/a “Melissa Ramos”
41
Woodhaven, New York
Travel Act Conspiracy.
(5 years)
DEJAHNEA BROWN,
a/k/a “Michelle Williams”
29
Saint Albans, New York
Travel Act Conspiracy.
(5 years)
TONYA THOMAS,
a/k/a “Karen Schwartz”
48
Brooklyn, New York
Travel Act Conspiracy.
(5 years)
ANGELA MELECIO,
a/k/a “Angie,”
a/k/a “P5”
40
Amityville, New York
Travel Act conspiracy, Wrongful disclosure of healthcare information, federal programs bribery.
(25 years)
STEPHANIE PASCAL,
a/k/a “Steph,”
a/k/a “P2”
47
Brooklyn, New York
Travel Act conspiracy, Wrongful disclosure of healthcare information, federal programs bribery.
(25 years)
MAKEBA SIMMONS
29
Bridgeport, Connecticut
Travel Act conspiracy, Wrongful disclosure of healthcare information, federal programs bribery.
(25 years)
EDWARD ABAYEV,
a/k/a “Eddie”
51
Staten Island, New York
Travel Act conspiracy, Wrongful disclosure of healthcare information, federal programs bribery.
(25 years)
GRACIELA BORRERO,
a/k/a “Grace,”
a/k/a “P8”
42
Brooklyn, New York
Travel Act conspiracy, Wrongful disclosure of healthcare information, federal programs bribery.
(25 years)
BARRINGTON REID,
a/k/a “P9”
60
Bronx, New York
Travel Act conspiracy, Wrongful disclosure of healthcare information, federal programs bribery.
(25 years)
TONJA LEWIS,
a/k/a “J1”
53
Belleville, New Jersey
Travel Act conspiracy, Wrongful disclosure of healthcare information, federal programs bribery.
(25 years)
RAYMOND PARKER,
a/k/a “Andre”
a/k/a “J2”
41
Newark, New Jersey
Travel Act conspiracy, Wrongful disclosure of healthcare information, federal programs bribery.
(25 years)
BERLISA BRYAN,
a/k/a “Lisa”
53
Edison, New Jersey
Travel Act conspiracy, Wrongful disclosure of healthcare information, federal programs bribery.
(25 years)
ANGELA MYERS,
a/k/a “Angie”
37
Brooklyn, New York
Travel Act conspiracy, federal programs bribery.
(15 years)
LATIFAH ABDUL-KHALIQ
47
Raleigh, North Carolina
Travel Act conspiracy, federal programs bribery.
(15 years)
SHAKEEMA FOSTER
27
Brooklyn, New York
Travel Act conspiracy, federal programs bribery.
(15 years)
KOURTNEI WILLIAMS
33
Brooklyn, New York
Travel Act conspiracy, federal programs bribery.
(15 years)
MAKKAH SHABAZZ, a/k/a “Mecca”
43
Long Island City, New York
Travel Act conspiracy, federal programs bribery.
(15 years)
YANIRIS DELEON, a/k/a “Jen”
29
New York, New York
Travel Act conspiracy, federal programs bribery.
(15 years)
Two plead guilty to wrongdoing in connection to federal E-rate schools programRead the Press Release
COLUMBUS, Ohio – A former non-profit executive director and a former director of the Diocese of Columbus Office of Catholic Schools have pleaded guilty in federal court to charges related to the federal E-Rate Program.
Shawn Clemmons, 56, of Piketon, pleaded guilty today to submitting false claims to the federal government. Kenneth Collura, 65, of Pickerington, pleaded guilty on July 1, 2019, to making false statements.
The Schools and Libraries Program (commonly referred to as the “E-Rate Program”) is a government program established by Congress and implemented and overseen by the Federal Communications Commission (FCC) that provides funds to, among others, economically disadvantaged schools and libraries.
Under the E-Rate Program, the government provides up to 90% funding to qualified schools to purchase eligible technology products and services for their students. Schools are required to pay the remaining amount. Federal law restricts how the funds must be used, and E-Rate funding can only be used for eligible equipment or services.
Clemmons was the executive director for the South Central Ohio Computer Association (SCOCA), an E-Rate Program service provider that provided internet and wireless access, and other services, to public and private schools. SCOCA was a council of governments under Ohio law, meaning it acted as an areawide agency for providing technology services to multiple Ohio public schools. At SCOCA, Clemmons was responsible for billing schools and the E-Rate Program and for performing SCOCA’s E-Rate Program certifications. Beginning in approximately 2004, SCOCA received funds from the E-Rate Program, some of which were pass-through reimbursements owed to its client schools. Federal law required SCOCA to provide these pass-through reimbursements to schools within 20 business days of receipt.
According to court documents, Clemmons unlawfully withheld reimbursements to schools. He would pay schools reimbursements one to two years later than was required, and would use the funds from one funding year to reimburse what was owed for previous funding years.
In one E-Rate Funding Year, Clemmons did not pay the reimbursements at all. He failed to reimburse public schools more than $2 million. To date, the schools have not received the E-Rate reimbursements. The schools were also obligated to pay additional fees to cover other outstanding debts of SCOCA, which totaled more than $1.2 million. The amount of lost reimbursements plus the amount the schools paid in additional fees totaled $3,230,974.40.
During this time, Clemmons made false claims on FCC forms, including false certifications that SCOCA was in compliance with the rules and orders governing the E-Rate Program.
In a related case, Collura pleaded guilty to making false statements in connection with the E-Rate Program. In 2014, the Diocese of Columbus Office of Catholic Schools entered a new five-year contract with its service provider, SCOCA, for internet access, which was an E-Rate-eligible service. The charges under the contract between the Diocese of Columbus Schools and SCOCA were inflated, in that they included undisclosed expenses that were not eligible for E-Rate funding.
Collura served as the Director of Communication and Instructional Technology for the Office of Catholic Schools, an arm of the Roman Catholic Diocese of Columbus’s Department for Education, from 1994 until July 2014.
Collura negotiated the SCOCA contract knowing the fees were inflated and included funding for expenses that were not eligible for E-Rate funding. In documents he transmitted to the government, though, Collura falsely certified that he and the Diocese of Columbus Office of Catholic Schools had disclosed all ineligible services that were covered by the contract and that the contract covered no ineligible services. Over the course of the five-year contract, more than $700,000 was for undisclosed purposes. Most of these funds were not transferred from the service provider to the Diocese of Columbus Schools, however, because SCOCA became insolvent.
Submitting a false claim and making a false statement are each federal crimes punishable by up to five years in prison.
Congress sets the maximum statutory sentence. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Joseph M. Deters, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; David Hunt, FCC Inspector General; Ohio Auditor of State Keith Faber and Sandra Bruce, Deputy Inspector General Delegated the Duties of Inspector General, U.S. Department of Education Office of Inspector General, announced the plea entered into today before U.S. District Judge Michael H. Watson. Assistant United States Attorneys Peter K. Glenn-Applegate and Jessica W. Knight are representing the United States in this case.
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Two Rapid City Men Charged with Multiple Firearm OffensesRead the Press Release
United States Attorney Ron Parsons announced that two Rapid City, South Dakota, men were charged in federal district court on October 22, 2019, with multiple firearm offenses.
Devin Byker and Craig Hirschfield, both age 25, were charged with Carjacking and Use and Brandishing of a Firearm During the Commission of a Crime of Violence. Byker was also charged with Possession of a Firearm by a Prohibited Person and Possession of a Stolen Firearm. Byker and Hirschfield appeared before U.S. Magistrate Judge Daneta Wollmann on November 4, 2019, and pleaded not guilty to the charges.
The penalty upon conviction is 5 years up to life in federal prison and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Byker and Hirschfield stealing a motor vehicle at gunpoint in Rapid City in June 2019. Additionally Byker, a previously convicted felon who is prohibited from possessing firearms, unlawfully possessed a stolen .357 double-action revolver. The charges are merely accusations and Byker and Hirschfield are presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Rapid City Police Department, and the Box Elder Police Department. Assistant U.S. Attorney Ben Patterson is prosecuting the case.
Byker and Hirschfield were detained pending trial. A trial date has not been set.
Two New Jersey Men Sentenced for Federal Drug CrimesRead the Press Release
CHARLESTON, W.Va. – Two New Jersey men were sentenced to federal prison for their participation in a drug trafficking operation in Fayette County, announced United States Attorney Mike Stuart. Fuquan Hagler, 40, was sentenced to 36 months in prison, to be followed by a three year term of supervised release, while Brian Kelley, 46, was sentenced to 60 months in prison, to be followed by a four year term of supervised release.
“Hagler and Kelley were dealers in a multi-state, poly-drug network responsible for bringing significant quantities of drugs into southern West Virginia,” said United States Attorney Mike Stuart. “The thorough and collaborative work of law enforcement put them out of business.”
Hagler previously admitted that in June 2018, he worked with other members of a drug trafficking organization (DTO) operating between Fayette County, West Virginia and New Jersey to distribute oxycodone pills. Hagler admitted that on June 20, 2018 he was a passenger in car transporting oxycodone pills from New Jersey to West Virginia. It was the plan to deliver the pills to another member of the DTO in West Virginia to be redistributed and sold illegally for profit in the Southern District of West Virginia. Prior to delivering the pills to West Virginia, the car Hagler was in was stopped by the Pennsylvania State Police. During the traffic stop, approximately 997 oxycodone pills were recovered. The pills were hidden in a secret compartment, commonly referred to as a trap.
In a related case, Kelley previously admitted that on July 7, 2018 he was transporting controlled substances from New Jersey to the Southern District of West Virginia. Kelley admitted to traveling to a co-defendant’s residence in Fayette County, and picking up over $21,000 in cash for another member of the DTO. Police officers later stopped the car Kelley was driving and found over $21,000 in cash and approximately 639 grams of cocaine. Both the cash and the cocaine were found in a hidden electronic compartment.
Stuart commended the cooperative investigative efforts of the Drug Enforcement Administration and the Central West Virginia Drug Task Force, with the support of the West Virginia State Police, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Fayette County Sheriff’s Department, the Beckley/Raleigh County Drug Task Force, the Southern Regional Drug and Violent Crime Task Force, the Fayetteville Police Department, and Oak Hill Police Department.
Assistant United States Attorneys Timothy D. Boggess and Andrew J. Tessman handled the prosecutions. United States District Judge Joseph R. Goodwin imposed the sentences.
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Two Kemper County Men Sentenced to 15 Years in Federal Prison for Armed Robbery of Postal DriverRead the Press Release
Jackson, Miss. – Jerome Rashad Benamon, 26, and Edward James Mobley, 36, both of Kemper County, Mississippi, were sentenced yesterday by Chief U.S. District Judge Daniel P. Jordan, III for armed robbery of a postal carrier, announced U.S. Attorney Mike Hurst and Adrian Gonzalez, U.S. Postal Inspector in Charge of the Houston Division.
Benamon was sentenced to serve a total of 180 months in federal prison, followed by four years of supervised release. Mobley was sentenced to serve 183 months in federal prison followed by four years of supervised release.
The U.S. Postal Inspection Service, the Kemper County Sheriff’s Department and the Mississippi Bureau of Investigation jointly investigated the case over a period of three months. A federal jury convicted Jerome Rashad Benamon, 25, and Edward James Mobley, 35, of armed robbery of a postal driver using a deadly weapon and convicted them of a separate count of discharging a firearm during a federal crime of violence. A third defendant, Khalil Slayton, 26, previously entered a guilty plea to one count of armed robbery of a postal driver. Slayton will be sentenced at a later date.
The evidence presented at trial showed that on April 4, 2016, Benamon, Mobley and Slayton planned and carried out the armed robbery at the Porterville, Mississippi, Post Office. The driver fought back after one of the defendants pointed a pistol at his head, and the firearm was discharged during the ensuing struggle. No one was shot, but the plans of the robbers were disrupted. Money was taken from the driver after the struggle, and the robbers fled in different directions. The response by law enforcement, particularly the Kemper County Sheriff’s department, was immediate. The robbers were identified and charged after a thorough investigation.
Adrian Gonzalez, Inspector in Charge of the Houston Division of the U.S. Postal Inspection Service stated: “The sentencing of Jerome Benamon Jr. and Edward Mobley for the robbery of the Porterville, MS Post Office on April 4, 2016 is an example of the commitment and tenacity of Postal Inspectors to bring those responsible to justice for robbery and assault of the United States Postal Service and its employees. The protection of United States Postal Service and its employees are two of the highest priorities of the Postal Inspection Service.”
The case was investigated by the U.S. Postal Inspectors, Kemper County Sheriff’s Department, and Mississippi Bureau of Investigation. The case was prosecuted by Assistant United States Attorneys Dave Fulcher and Abe McGlothin.
Two KC Men Sentenced for Armed RobberiesRead the Press Release
KANSAS CITY, Mo. – Two Kansas City, Missouri, men were sentenced in federal court today for their roles in a series of armed robberies.
Clyde H. Jackson, Jr., 30, and Thomas E. Davis, 43, were sentenced in separate appearances before U.S. District Judge Stephen R. Bough. Jackson was sentenced to 27 years in federal prison without parole. Davis was sentenced to 26 years in federal prison without parole.
Jackson pleaded guilty on July 9, 2019, to seven counts of robbery, one count of possessing a firearm in furtherance of a crime of violence, and one count of being a felon in possession of a firearm. Davis pleaded guilty on July 1, 2019, to five counts of robbery and to possessing a firearm in furtherance of a crime of violence.
Co-defendants Brion L. McDonald, 30, and Bianca C Seaton, 26, both of Kansas City, Missouri, have also pleaded guilty and await sentencing. McDonald will be sentenced on Nov. 25, 2019, and Seaton will be sentenced on Dec. 19, 2019.
The defendants were part of a group of individuals committing armed robberies in the Kansas City metropolitan area from October 2017 through March 2018. According to court documents, Jackson and Davis brandished knives and firearms during the robberies.
During one robbery, Davis cocked a firearm, pointed it at the neck of one of the victims, and said, “Hurry up and give us the money, or I’ll kill this [expletive] white lady.” During another robbery, Davis discharged a firearm because the clerk was not moving fast enough.
Jackson cocked a gun during one robbery, walked toward a customer, grabbed the customer, placed the gun to the back of the customer’s head, and pulled the customer around the counters to the checkout counter. During another robbery, Jackson pointed a firearm at a victim and ordered the victim to retrieve the money faster, stating, “Come on, do you want to die?” During each of the three knife-related robberies in which Jackson participated, he put a knife to the victim’s neck and made various demands related to obtaining money. According to court documents, Jackson has previously been associated with the 5-1 Gangster gang, a subset of the Crips street gang, and has tattoo of a “51” inscribed on his right arm.
Jackson and Davis admitted they were involved in the armed robberies of Family Dollar, 5242 Blue Ridge Blvd. in Kansas City, on Jan. 12, 2018; Dollar General Store, 8716 Blue Ridge Blvd. in Kansas City, on Jan. 20, 2018; Family Dollar, 9120 E. 35th Street South in Independence, Missouri, on Jan. 22, 2018; and Family Dollar, 3017 Prospect Ave. in Kansas City, on Jan. 26, 2018 (Davis discharged a firearm during this robbery).
Jackson, McDonald, and Seaton each admitted to being involved in the armed robbery of Pizza Hut, 7624 Wornall Road in Kansas City, on March 19, 2018.
Davis was also involved in the armed robbery of Dollar General Store, 9101 E. 63rd St. in Raytown, Missouri, on Oct. 25, 2017. Davis brandished a knife during that robbery.
Jackson admitted he also was involved in an attempted robbery of the Pizza Hut at 7624 Wornall Road on March 20, 2018, and of Dollar General, 5008 N.E. Parvin Road in Kansas City, on March 20, 2018. Jackson also admitted that he was in possession of a Glock .45-caliber pistol and various rounds of ammunition on March 23, 2018. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Jackson has prior felony convictions for larceny and robbery.
This case is being prosecuted by Assistant U.S. Attorney Emily A. Morgan. It was investigated by the FBI, the Kansas City, Mo., Police Department, the Independence, Mo., Police Department, and the Raytown, Mo., Police Department.
Two Former Twitter Employees and a Saudi National Charged as Acting as Illegal Agents of Saudi ArabiaRead the Press Release
Ali Alzabarah, Ahmad Abouammo, and Ahmed Almutairi, aka Ahmed Aljbreen, were charged for their respective roles in accessing private information in the accounts of certain Twitter users and providing that information to officials of the Kingdom of Saudi Arabia. Abouammo was arrested in Seattle, Washington, on Nov. 5, 2019. All three defendants are charged with acting as illegal agents of a foreign government; and Abouammo also is charged with destroying, altering, or falsifying records in a federal investigation.
“Acting in the United States under the direction and control of Saudi officials, the defendants are alleged to have obtained private, identifying information about users of Twitter who were critical of the Saudi government,” said Assistant Attorney General for National Security John C. Demers. “Two of the defendants – Alzabarah and Abouammo – are former Twitter employees who violated their terms of employment to access this information in exchange for money and other benefits. Aside from being criminal, their conduct was contrary to the free speech principles on which this country was founded.”
“These charges make clear that the FBI will diligently pursue those who show a blatant disregard for the laws and democratic principles that define us as a country," said Executive Assistant Director Jay Tabb of the FBI’s National Security Branch. “We will continue to use all of the tools at our disposal to carry out our mission. I would like to thank the men and women of the FBI's San Francisco and Seattle Field Offices as well as the Counterintelligence Division for their tireless commitment to bring these individuals to justice.”
“The FBI will not stand by and allow foreign governments to illegally exploit private user information from U.S. companies. These individuals are charged with targeting and obtaining private data from dissidents and known critics, under the direction and control of the government of Saudi Arabia,” said FBI Special Agent in Charge John F. Bennett. “Insider threats pose a critical threat to American businesses and our national security.”
Alzabarah, 35, of Saudi Arabia, and Abouammo, 41, of Seattle, Washington, were Twitter employees. According to the complaint, between November of 2014 and May of 2015, Almutairi, 30, of Saudi Arabia, and foreign officials of the Kingdom of Saudi Arabia convinced Abouammo and Alzabarah to use their employee credentials to gain access without authorization to certain nonpublic information about the individuals behind certain Twitter accounts. Specifically, representatives of the Kingdom of Saudi Arabia and the Saudi Royal Family sought the private information of Twitter users who had been critical of the regime. Such private user information included their email addresses, phone numbers, IP addresses, and dates of birth. This information could have been used to identify and locate the Twitter users who published these posts. The complaint alleges that Abouammo was compensated for his illicit conduct, including through the provision of a luxury watch and cash. Almutairi is alleged to have arranged meetings, acted as a go-between, and facilitated communications between the Saudi government and the other defendants.
The complaint also contains allegations regarding the reaction of Alzabarah upon being confronted by Twitter about his violations of Twitter policy. According to the complaint, when Alzabarah was confronted by Twitter’s management about accessing users’ information, he sought assistance from Almutairi and others to flee the United States. Alzabarah left the country the next day and submitted his resignation from Twitter by email while en route. Shortly after his return to Saudi Arabia, Alzabarah obtained employment through which he continued to work on behalf the Kingdom. With respect to Abouammo, the complaint alleges FBI agents confronted him in October 2018 about his activities on behalf of officials of the Kingdom of Saudi Arabia. In response, Abouammo allegedly lied to the agents and provided them with a falsified invoice in an effort to obstruct the investigation.
Abouammo was arrested in Seattle, Washington, on Nov. 5, 2019, and made his initial federal court appearance in Seattle at 2:00 p.m.on Nov. 6, 2019. Alzabarah and Almutairi are believed to be in Saudi Arabia. Federal warrants have been issued for their arrest.
A complaint merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, all three defendants face maximum statutory sentence of 10 years in prison and a $250,000 fine for acting as an agent of a foreign government without notification to the Attorney General, in violation of 18 U.S.C. § 951. In addition, Abouammo faces an additional 20 years in prison and a $250,000 fine for destroying, altering, or falsifying records, in violation of 18 U.S.C. § 1519. Further, the court may order restitution, if appropriate, and additional periods of supervised release. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The case is being prosecuted by the Special Prosecutions and National Security Unit of the United States Attorney’s Office for the Northern District of California and the Counterintelligence and Export Control Section of the National Security Division. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Two Chelsea Men Sentenced for Roles in Trans-National Methamphetamine Trafficking RingRead the Press Release
BOSTON – Two Chelsea men were sentenced yesterday in federal court in Boston for their role in a large-scale methamphetamine trafficking and money laundering ring operating between Massachusetts and California.
Russell Ormiston, 51, was sentenced by U.S. Senior District Court Judge George A. O’Toole Jr. to two years in prison and three years of supervised release. In March 2018, Ormiston pleaded guilty to conspiracy to distribute and possession with intent to distribute 50 grams or more of methamphetamine.
Steven Beadles, 60, was sentenced by Judge O’Toole to five years in prison and five years of supervised release. In June 2018, Beadles pleaded guilty to one count of conspiracy to distribute and possession with intent to distribute 50 grams or more of methamphetamine and one count of possession of 50 grams or more of methamphetamine with intent to distribute.
In November 2016, Ormiston, Beadles and nine co-defendants were charged with various methamphetamine offenses relating to a transnational trafficking scheme.
Beginning in at least 2013 and continuing to November 2016, Ormiston and Beadles were involved in a conspiracy that transported methamphetamine from San Diego, Calif., to Massachusetts, where it was distributed in the greater Boston area. Proceeds from the sale of that methamphetamine were then transported and/or transferred back to California and laundered in various ways.
On Jan. 7, 2016, approximately 434 grams of methamphetamine that had been shipped from California to Beadles’s residence was seized. Beadles admitted that he received this package on behalf of a co-conspirator, that he knew prior to the drugs being seized by law enforcement that the package contained methamphetamine, and that he intended to purchase some of the drugs so that he and Ormiston could resell the drugs to their customers.
Beadles admitted that Ormiston carried out various tasks on his behalf. Among other things, Beadles directed Ormiston to pick up methamphetamine from his supplier and deliver methamphetamine to customers. Beadles, however, retained the responsibility for negotiating the purchase and sale prices for the drugs.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; William Ferrara, Director of Field Operations of U.S. Customs and Border Protection; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Boston Police Commissioner William Gross made the announcement. The Massachusetts Department of Correction; Norfolk County Sherriff’s Office; Suffolk County Sheriff’s Office; the Reading, Watertown, Quincy, Chelsea, Braintree, Peabody, Waltham, and Woburn Police Departments; and Connecticut State Police assisted with the investigation. Assistant U.S. Attorneys James E. Arnold and Jared C. Dolan of Lelling’s Narcotics & Money Laundering Unit prosecuted the case.
Tower Research Capital LLC Agrees to Pay $67 Million in Connection with Commodities Fraud SchemeRead the Press Release
Tower Research Capital LLC (Tower), a New York, New York-based financial services firm has entered into a resolution with the Department of Justice to resolve criminal charges related to a scheme involving thousands of episodes of unlawful trading activity in U.S. commodities markets by three former traders.
Tower entered into a deferred prosecution agreement (DPA) in connection with a criminal information filed yesterday in the Southern District of Texas charging the company with one count of commodities fraud. Under the terms of the DPA, Tower agreed to pay a combined $67.4 million in criminal monetary penalties, criminal disgorgement and victim compensation with the criminal monetary penalty credited for any payments made to the Commodity Futures Trading Commission (CFTC). Tower also agreed to, among other things, conduct appropriate reviews of its internal controls and policies and procedures, and to modify its compliance program, where necessary, to ensure it is designed to deter and detect violations of the Commodity Exchange Act and commodities fraud statute.
“Traders at Tower Research Capital LLC fraudulently placed thousands of bogus orders they never intended to execute—to deceive other market participants and move the market for their own benefit,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “This agreement includes monetary penalties, the return of unjust profits, and compensation of victims to protect our nation’s commodities markets from manipulation.”
“Free markets are not open and fair when people criminally manipulate them,” said U.S. Attorney Ryan K. Patrick of the Southern District of Texas (SDTX). “Fraudsters like this will be prosecuted. This case also shows the Department’s willingness to resolve cases when industry cooperates and remediates failures of internal controls.”
“When traders seek to manipulate the commodities market for personal gain, it can cause significant and long-lasting financial consequences for law-abiding citizens,” said Special Agent in Charge Emmerson Buie Jr. of the FBI’s Chicago Field Office. “The FBI will continue to work with its prosecutorial partners to safeguard the market from unlawful influence and hold violators accountable.”
According to court documents filed as part of the DPA, from approximately March 2012 until December 2013, three traders who were members of a single trading team at Tower engaged in a scheme to defraud other participants in the markets for E-Mini S&P 500, E-Mini NASDAQ 100 and E-Mini Dow futures contracts (collectively, E‑Mini futures contracts). The S&P 500 and NASDAQ 100 future contracts were traded on the Chicago Mercantile Exchange, while the Dow futures contracts were traded on the Chicago Board of Trade. On thousands of occasions throughout this period, the traders fraudulently placed orders to buy and sell the E-Mini futures contracts with the intent to cancel those orders before execution, including in an attempt to profit by deceiving other market participants. By placing these orders, the traders intended to, and did, inject false and misleading information about the genuine supply and demand for E-Mini futures contracts into the markets, which deceived other market participants into believing something untrue, namely that the visible order book accurately reflected market-based forces of supply and demand. This false and misleading information was intended to, and at times did, trick other market participants into reacting to the apparent change and imbalance in supply and demand by buying and selling E-Mini futures contracts at quantities, prices and times they otherwise likely would not have traded. The Department and Tower have filed a joint motion, which is subject to approval by the Court, to defer for the term of the DPA any prosecution and trial of the criminal information filed against Tower.
A number of significant factors contributed to the Department’s criminal resolution with Tower, including the company’s cooperation with the United States and Tower’s extensive remedial efforts. Tower also swiftly moved in early 2014 to terminate the three traders, made significant investments in sophisticated trade surveillance tools, increased legal and compliance resources, revised the company’s corporate governance structures and changed its senior management.
The CFTC announced today a separate settlement with Tower in connection with a related, parallel proceeding. Under the terms of that resolution with the CFTC, Tower agreed to pay approximately $67.4 million, which includes a civil monetary penalty of $24.4 million, as well as restitution and disgorgement that will be credited for any such payments made to the Department. In addition, the CFTC order imposes upon Tower other remedial and cooperation obligations in connection with any CFTC investigation pertaining to the underlying conduct.
The three traders are Kamaldeep Gandhi, 37, and Krishna Mohan, 34, both of New York, New York, and Yuchun (Bruce) Mao, 40, a citizen of the People’s Republic of China. As part of the investigation, the Department obtained an indictment against Mao in October 2018 with charges pending in the SDTX. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
On Nov. 2, 2018, Gandhi pleaded guilty to two counts of conspiracy to engage in wire fraud, commodities fraud and spoofing. His sentencing is scheduled for Feb. 7, 2020, before SDTX U.S. District Judge Ewing Werlein Jr. On Nov. 6, 2018, Mohan pleaded guilty to one count of conspiracy to engage in wire fraud, commodities fraud and spoofing, and his sentencing is scheduled for Feb. 13, 2020, before U.S. District Judge Gray H. Miller of the SDTX.
The FBI’s Chicago Field Office investigated this case. Trial Attorney Matthew F. Sullivan and Assistant Chief Avi Perry of the Criminal Division’s Fraud Section and SDTX Assistant U.S. Attorney John R. Lewis prosecuted the case. The CFTC’s Division of Enforcement referred the matter to the Department and provided assistance in this matter.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website at https://www.justice.gov/criminal-vns/case/tower-research-dpa or call (888) 549-3945.
Tower Research Capital Agrees to Pay $67 Million in Connection to Commodities Fraud SchemeRead the Press Release
HOUSTON – Tower Research Capital LLC, a New York, New York-based financial services firm has entered into a resolution with the Department of Justice to resolve criminal charges related to a scheme involving thousands of episodes of unlawful trading activity in U.S. commodities markets by three former traders.
Tower entered into a deferred prosecution agreement (DPA) in connection with a criminal information filed in the Southern District of Texas (SDTX) charging the company with one count of commodities fraud. Under the terms of the DPA, Tower agreed to pay a combined $67.4 million in criminal monetary penalties, criminal disgorgement and victim compensation with the criminal monetary penalty credited for any payments made to the Commodity Futures Trading Commission (CFTC). Tower also agreed to, among other things, conduct appropriate reviews of its internal controls and policies and procedures and to modify its compliance program, where necessary, to ensure it is designed to deter and detect violations of the Commodity Exchange Act and commodities fraud statute.
“Traders at Tower Research Capital LLC fraudulently placed thousands of bogus orders they never intended to execute—to deceive other market participants and move the market for their own benefit,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “This agreement includes monetary penalties, the return of unjust profits and compensation of victims to protect our nation’s commodities markets from manipulation.”
“Free markets are not open and fair when people criminally manipulate them,” said U.S. Attorney Ryan K. Patrick of the Southern District of Texas. “Fraudsters like this will be prosecuted. This case also shows the department’s willingness to resolve cases when industry cooperates and remediates failures of internal controls.”
“When traders seek to manipulate the commodities market for personal gain, it can cause significant and long-lasting financial consequences for law-abiding citizens,” said Special Agent in Charge Emmerson Buie Jr. of the FBI’s Chicago Field Office. “The FBI will continue to work with its prosecutorial partners to safeguard the market from unlawful influence and hold violators accountable.”
According to court documents filed as part of the DPA, from approximately March 2012 until December 2013, three traders who were members of a single trading team at Tower engaged in a scheme to defraud other participants in the markets for E-Mini S&P 500, E-Mini NASDAQ 100 and E-Mini Dow futures contracts (collectively, E Mini futures contracts). The S&P 500 and NASDAQ 100 future contracts were traded on the Chicago Mercantile Exchange, while the Dow futures contracts were traded on the Chicago Board of Trade.
On thousands of occasions throughout this period, the traders fraudulently placed orders to buy and sell the E-Mini futures contracts with the intent to cancel those orders before execution, including in an attempt to profit by deceiving other market participants. By placing these orders, the traders intended to, and did, inject false and misleading information about the genuine supply and demand for E-Mini futures contracts into the markets. This deceived other market participants into believing something untrue, namely, that the visible order book accurately reflected market-based forces of supply and demand. This false and misleading information was intended to, and at times did, trick other market participants into reacting to the apparent change and imbalance in supply and demand by buying and selling E-Mini futures contracts at quantities, prices and times they otherwise likely would not have traded.
The department and Tower have filed a joint motion, which is subject to the court’s approval, to defer for the term of the DPA any prosecution and trial of the criminal information filed against Tower.
A number of significant factors contributed to the criminal resolution with Tower, including the company’s cooperation with the United States and Tower’s extensive remedial efforts. Tower also swiftly moved in early 2014 to terminate the three traders, made significant investments in sophisticated trade surveillance tools, increased legal and compliance resources, revised the company’s corporate governance structures and changed its senior management.
The CFTC announced a separate settlement with Tower today in connection with a related, parallel proceeding. Under the terms of that resolution with the CFTC, Tower agreed to pay approximately $67.4 million, which includes a civil monetary penalty of $24.4 million as well as restitution and disgorgement that will be credited for any such payments made to the department. In addition, the CFTC order imposes upon Tower other remedial and cooperation obligations in connection with any CFTC investigation pertaining to the underlying conduct.
The three traders are Kamaldeep Gandhi, 37, and Krishna Mohan, 34, both of New York, New York, and Yuchun (Bruce) Mao, 40, a citizen of the People’s Republic of China. As part of the investigation, the department obtained an indictment against Mao in October 2018 with charges pending in the SDTX. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
On Nov. 2, 2018, Gandhi pleaded guilty to two counts of conspiracy to engage in wire fraud, commodities fraud and spoofing. His sentencing is scheduled for Feb. 7, 2020, before SDTX U.S. District Judge Ewing Werlein Jr. On Nov. 6, 2018, Mohan pleaded guilty to one count of conspiracy to engage in wire fraud, commodities fraud and spoofing. His sentencing is scheduled for Feb. 13, 2020, before SDTX U.S. District Judge Gray H. Miller.
The FBI’s Chicago Field Office investigated this case. Trial Attorney Matthew F. Sullivan and Assistant Chief Avi Perry of the Criminal Division’s Fraud Section and SDTX Assistant U.S. Attorney John R. Lewis prosecuted the case. The CFTC’s Division of Enforcement referred the matter to the department and provided assistance in this matter.
The Criminal Division’s Fraud Section plays a pivotal role in the Department of Justice’s fight against white-collar crime around the country.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website at or call (888) 549-3945.
Three Saudi Nationals Charged with Smuggling Firearms Parts from United States to Saudi Arabia without an Export LicenseRead the Press Release
LOS ANGELES – Three Saudi nationals have been charged in two separate indictments for allegedly violating federal export laws by purchasing more than $100,000 in weapons parts in the United States while on student visas and then smuggling the parts to the Kingdom of Saudi Arabia.
A five-count indictment returned Wednesday by a federal grand jury in Riverside charges Hatim Humeed Alsufyani, 36, and Mosab Alzahrani, 27, both formerly of San Bernardino, with one count of conspiracy to smuggle goods out of the United States without obtaining export licenses. Alsufyani also was charged with three counts of knowingly exporting weapons parts without a license, while Alzahrani also was charged with one count of knowingly exporting weapons parts without a license.
Between May 2014 and July 2018, Alsufyani and Alzahrani allegedly conspired to smuggle firearms parts from the U.S. to Saudi Arabia by concealing rifle barrels, rifle triggers, and other items related to firearms in their checked luggage on flights from Los Angeles to Saudi Arabia. They allegedly also would falsely identify rifle barrels, rifle triggers, and other items related to firearms as “shower curtain rods” or “car parts,” or other false names before exporting the items to Saudi Arabia.
For example, on December 10, 2016, Alzahrani attempted to board a flight from Los Angeles to Riyadh with 30 firearms parts concealed in his checked luggage, including 12 rear sight leaf assemblies and six New England Custom Gun single set rifle triggers, the indictment alleges. Alzahrani also lied to U.S. customs officials about possessing rifle barrels in the United States that were intended to be exported to Saudi Arabia, according to the indictment.
If convicted of all charges, Alsufyani would face a statutory maximum sentence of 65 years in federal prison, and Alzahrani would face 25 years in federal prison.
In a separate indictment returned on November 1 and unsealed today, Abdulwahab Mohammed A. Alabdulwahab, 30, formerly of Los Angeles, was charged with 15 counts of smuggling and 15 counts of knowingly exporting firearms parts from the United States without first having obtained an export license from the State Department.
Between December 2015 and January 2018, Alabdulwahab contacted U.S.-based firearms parts retailers to purchase firearms parts for the purpose of illegally exporting those components to Saudi Arabia, the indictment alleges. Specifically, Alabdulwahab purchased .223-caliber and .308-caliber rifle barrels, which by federal law require a license to be exported from the United States to any other country, according to the indictment. At no time did Alabdulwahab apply for, receive, or possess such a license, the indictment alleges.
If convicted of all charges, Alabdulwahab would face a statutory maximum sentence of 10 years in federal prison for each smuggling count, and 20 years’ imprisonment for each violation of the Arms Export Control Act.
All three defendants are believed to be in Saudi Arabia.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The FBI-led Joint Terrorism Task Force and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations investigated both cases, with support from U.S. Customs and Border Protection.
The Alsufyani case is being prosecuted by Assistant United States Attorney Reema El-Amamy of the Terrorism and Export Crimes Section. The Alabdulwahab case is being prosecuted by Assistant United States Attorney Christopher Grigg, Chief of the Terrorism and Export Crimes Section. Supporting both cases is Trial Attorney Matthew Chang of the Justice Department’s National Security Division, Counterintelligence and Export Control Section.
Texas Man Charged with Cyberstalking, Making Interstate ThreatsRead the Press Release
Charlottesville, VIRGINIA – An Odessa, Texas man, who had an online relationship with a juvenile female in the Western District of Virginia, has been indicted by a federal grand jury sitting in U.S. District Court in Charlottesville and charged with cyberstalking and making interstate threats to the girl’s family following her suicide. United States Attorney Thomas T. Cullen and David W. Archey, FBI Special Agent in Charge for the Richmond Division, made the announcement today following the defendant’s arrest in Texas.
Adrian Raul O’Dell, 19, was charged in a sealed indictment on October 15, 2019, and arrested this week in Texas. The grand jury has charged O’Dell with three counts of cyberstalking and two counts of making interstate threats.
“Cyberstalking and communicating threats through social media are serious federal crimes and prosecuting them is a priority of this office,” U.S. Attorney Cullen stated today. “I am grateful for the hard work of the FBI and the Warren County Sheriff’s office in identifying this defendant and bringing him to justice.”
“The FBI takes online threats very seriously, and will work with our law enforcement partners to ensure matters are addressed swiftly and appropriately,” SAC Archey said today. “This case is important to us because a young girl’s family, while still mourning her death, was re-victimized with the messages sent by the accused. We are grateful for the assistance of the FBI El Paso Division’s Midland Resident Agency and the United States Attorney’s Office during the course of this investigation.”
According to the indictment, between September 2017 and around March 2018, O’Dell had an online relationship with a 16-year girl who lived in Linden, Virginia. In May 2018, following an investigation by the Warren County Sheriff’s Office, it was determined that O’Dell’s victim died by suicide in a wooded area near her home.
The indictment alleges that from June 2018 through June 2019, O’Dell, using a variety of false email and online personas, took credit for her suicide. The defendant then sent threatening and intimidating messages to her family members and friends that placed them in reasonable fear of death and serious bodily harm. In addition, these messages attempted to cause friends and family members substantial emotional distress. The defendant sent certain of these messages in violation of a protective order.
The investigation of the case was conducted by the Federal Bureau of Investigation and the Warren County Sherriff’s Office. Assistant United States Attorney Kate Rumsey is prosecuting the case for the United States.
A grand jury indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Tallahassee Woman Convicted of Armed Drug TraffickingRead the Press Release
TALLAHASSEE, FLORIDA – Mary E. Forehand, 40, of Tallahassee, Florida, has been sentenced to serve
15 years in federal prison for possession with intent to distribute 50 grams or more of
methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and possession
of a firearm and ammunition by a convicted felon. The sentence was announced by Lawrence Keefe,
United States Attorney for the Northern District of Florida.“Working together, the Leon County Sheriff’s Office and federal agencies removed a serious and
dangerous drug criminal from the streets of the community,” said U.S. Attorney Keefe. “Our agencies
are committed to using our resources to assist local law enforcement however we can to enhance
public safety.”The charges arose from a joint investigation by the Leon County Sheriff’s Office and the United
States Bureau of Alcohol, Tobacco, Firearms and Explosives, who were investigating methamphetamine
distribution in Northeast Tallahassee. Forehand was a target of the investigation based on prior
information that she had been selling methamphetamine in the area for a considerable length of
time. Law enforcement officers observed several purchases at a residence and obtained a warrant
last November. A search of the residence turned up several ounces of methamphetamine,
drug-trafficking paraphernalia, and two loaded firearms near the front door – a .22-caliber rifle
and a 12-gauge shotgun.“This sentencing is another example of how strong law enforcement partnerships impacted both
violence and drug trafficking in our continued efforts to protect the public”, said ATF Special
Agent in Charge Daryl McCrary, “Our strong law enforcement partnerships continue to mitigate
nefarious individuals from committing further acts of violence in communities”Sheriff Walt McNeil said, “It’s partnerships like these that our community needs to help root out
the drug problem in Leon County. Your local, state, and federal law enforcement are going All In to
get those who continue to do harm in our community off the streets.”Assistant United States Attorney Andrew J. Grogan prosecuted the case, which resulted in a guilty
plea by Forehand. She was sentenced on October 28.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 Attor ey’s Office, Northern
District of Florida, visit http://www.justice.gov/usao/fln/index.html.Stockton Man Sentenced to 9 Years in Prison for Distributing Child PornographyRead the Press Release
SACRAMENTO, Calif. — Jason Solomon, 44, of Stockton, was sentenced today by U.S. District Judge Troy L. Nunley to nine years in prison for distributing child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, in July 2016, Solomon used social media to send images of children engaged in sexually explicit conduct to a then-15-year-old girl. Law enforcement later became aware of Solomon’s sexually explicit chats with the 15-year-old victim. In January 2018, federal agents found Solomon possessing additional images of child pornography, some of which depict the sexual molestation of infants.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Brian A. Fogerty prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Statement from U.S. Attorney MacDonald Addressing Gun Violence in St. PaulRead the Press Release
This afternoon, and at my request, I met with St. Paul Police Chief Todd Axtell along with the top leaders of federal, state and local law enforcement agencies to discuss the pressing gun-violence issue in St. Paul. All agencies present, including the FBI, ATF, U.S. Marshals, BCA, and Ramsey County Sheriff’s Office offered their full support and dedicated resources to address the problem. It was the unanimous consensus of the group that reducing violent crime requires more than just enforcement, it also requires plans for treatment and prevention. It is my belief that the joint efforts of these federal, state and local agencies and their combined expertise and resources will ensure that every available resource is brought to bear to stem the violence and protect the community. I will continue to update the public on the progress we make in this coordinated fight to protect the safety of our communities.
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
South Carolina Man Sentenced to 10 years in Prison for Forcing Man with Intellectual Disability to Work at RestaurantRead the Press Release
WASHINGTON – U.S. District Court Judge R. Bryan Harwell sentenced defendant Bobby Paul Edwards, 54, of Conway, South Carolina, to 10 years in prison and ordered him to pay $272,952.96 in restitution to the victim. The defendant pleaded guilty on June 4, 2018, to one count of forced labor for coercing an African-American man with an intellectual disability to work extensive hours at a restaurant for no pay.
“It is almost inconceivable that instances of forced labor endure in this country to this day – a century and a half after the Emancipation Proclamation,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Department of Justice will continue to investigate, prosecute, and convict human traffickers involved in forced labor, seeking justice on behalf of their victims.”
“For stealing his victim’s freedom and wages, Mr. Edwards has earned every day of his sentence,” said U.S. Attorney Sherri A. Lydon for the District of South Carolina. “The U.S. Attorney’s Office will not tolerate forced or exploitative labor in South Carolina, and we are grateful to the watchful citizen and our partners in law enforcement who put a stop to this particularly cruel violence.”
“This abusive enslavement of a vulnerable person is shocking. The FBI is always vigilantly searching for these offenses and stands ready to bring perpetrators to justice and help victims reclaim their lives. We understand human trafficking takes many forms and we encourage anyone with information related to these crimes to contact the FBI,” said FBI Special Agent in Charge Jody Norris.
According to the defendant’s plea colloquy and admissions in court, between 2009 and 2014, the defendant used violence and other coercive means to compel the victim to work for more than 100 hours a week for no pay at a restaurant managed by the defendant in Conway, South Carolina. The defendant subjected the victim to physical and emotional abuse whenever the victim made a mistake or failed to work fast enough. The defendant beat the victim with a belt, fists, and pots and pans. On one occasion, he dipped metal tongs into hot grease and burned the victim’s neck. The defendant further yelled at the victim and used racial slurs to belittle and demean him. After a concerned resident notified state authorities of the defendant’s abuse, the victim was removed from the situation in October 2014.
This case was investigated by the FBI, with assistance from the Department of Labor’s Wage and Hour Division. The case was prosecuted by Special Litigation Counsel Jared Fishman and Trial Attorney Maryam Zhuravitsky of the Civil Rights Division’s Criminal Section and Human Trafficking Prosecution Unit and Assistant U.S. Attorney Alyssa L. Richardson of the District of South Carolina.
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Scottsdale, Arizona Man Sentenced to Prison for Selling Illegally Imported and Misbranded Rx Drugs to Western PA ConsumersRead the Press Release
PITTSBURGH - A resident of Scottsdale, Arizona, has been sentenced in federal court to 32 months' imprisonment and two years of supervised release on his conviction of mail fraud, United States Attorney Scott W. Brady announced today.
Senior United States District Judge David S. Cercone imposed the sentence on Keith Komar, age 62.
According to information presented to the court, Komar participated in a fraud scheme that involved the illegal importation of prescription drugs and the illegal sale of those drugs to consumers in the United States. The importation and sale of prescription medication is regulated by the Food and Drug Administration pursuant to the Federal Food, Drug and Cosmetic Act. Federal laws and regulations require that certain drugs, particularly dangerous drugs, contain certain warnings and only be administered under a doctor's care pursuant to a doctor's prescription. A drug is considered "misbranded" if, for example, the drug is sold without a prescription, if it fails to include the approved warnings, if the drug was not approved by the FDA, or if the drug is manufactured in a facility not approved by the FDA.
Through various websites, Komar advertised for sale to consumers in the United States various dangerous drugs that were sold without a prescription, were not administrated under the care of a doctor, did not provide the appropriate warnings, and were not manufactured in facilities approved by the FDA. The website included a numerous misrepresentations about the drugs and the companies involved in the fraud to make it falsely appear that the sale of these drugs was legitimate and safe. Some of these misbranded drugs were sent through the Postal Service to consumers, including consumers in the Western District of Pennsylvania, directly from India as arranged by Komar.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
United States Attorney Brady commended the Food and Drug Administration - Office of Criminal Investigations, Homeland Security Investigations, Pennsylvania State Police and United States Postal Inspection Service for the investigation leading to the successful prosecution of Komar.
San Jacinto County Man gets significant time for sexually exploiting young childrenRead the Press Release
HOUSTON – A 27-year-old man from San Jacinto County has received a 35-year prison term following his convictions of producing and possessing child pornography, announced U.S. Attorney Ryan K. Patrick.
James Robert Tumlinson pleaded guilty April 23.
Today, U.S. District Judge Keith P. Ellison downwardly departed from the U.S. Sentencing Guidelines and ordered Tumlinson to serve 360 months for each count of the sexual exploitation of a child, otherwise known as production of child pornography. Those sentences will run concurrently. He also received another 60 months for the possession charge which were ordered to be served consecutively for a total of 420 months in federal prison.
At the hearing, the court heard evidence regarding a pattern of abuse which rendered Tumlinson a repeat and dangerous sex offender. The government contended Tumlinson had sexually abused four other minors in addition to the two victims for which he was convicted. All four were either family members or children to whom he had access. The abuse spanned for several years.
The defense asked Judge Ellison for mercy and attempted to convince the court Tumlinson had remorse and was “treatable.” Tumlinson himself apologized for his actions, said he was not the monster he was accused of being and wanted to prove he could be better.
However, the government implored the court to hold Tumlinson accountable for the pain and trauma he caused to the young victims of his “atrocious” crimes, noting what he stole from the children cannot be replaced. The government said the guidelines were appropriate under the circumstances and that it was important to send a message to society these crimes should not be tolerated. Judge Ellison heard that each victim deserved justice after Tumlinson had violated these children then memorialized it in video.
The court also heard from the victims’ grandmother, who detailed the children’s suffering. She told the court how scared the young female victim is and how she asks almost every day if Tumlinson will get out and hurt her again.
Following the 35-year prison term, Tumlinson will be on supervised release for the rest of his life, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender.
Restitution will determined at a later date.
Tumlinson came to the attention of law enforcement after a mother of two minors reported possible abuse of her children. She stated her daughter said Tumlinson had been sexually abusing her and her younger brother. Her brother was reportedly too scared to tell anyone but she was not.
Authorities executed a search warrant, at which time they seized phones and computer media from Tumlinson’s residence. Forensic analysis yielded 6,585 images and 1,322 videos depicting child pornography.
Eight of the videos Tumlinson produced himself. Some of these depict Tumlinson violating at least two different minors via oral, vaginal and anal penetration. These videos run for a total of 38 minutes and 36 seconds. In one of the videos, Tumlinson is heard telling a minor male victim to “relax” and “it will be over soon” as he is seen anally raping the child.
The mother of the children identified both victims seen in the videos who were approximately 6 and 4 at the time.
Tumlinson 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 San Jacinto County Sheriff’s Office and the FBI conducted the investigation.
Assistant U.S. Attorney Sherri L. Zack is prosecuting the case, which was brought as part of Project Safe Childhood(PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Robbins, Illinois Man Sentenced to 57 Months in PrisonRead the Press Release
HAMMOND- Royal Ward, 35, of Robbins, Illinois, was sentenced before District Court Judge Philip P. Simon following his plea of guilty to possessing a firearm as a previously convicted felon, announced U.S. Attorney Kirsch.
Ward received a sentence of 57 months in prison followed by 1 year of supervised release.
According to documents filed in this case, on July 8, 2018, in Merrillville, Indiana, Ward was arrested in possession of a nine millimeter firearm. Ward was previously convicted of the felony offense of aggravated battery on a government official.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and Merrillville Police Department and was prosecuted by Assistant United States Attorney Thomas M. McGrath.
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Rapid City Man Charged with Unlawful Possession of a Firearm and Possession of a Firearm with an Obliterated Serial NumberRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man was charged in federal district court with Possession of a Firearm by a Prohibited Person and Possession of a Firearm with an Obliterated Serial Number.
Damian Buchholz, age 33, was charged on October 22, 2019. Buchholz appeared before U.S. Magistrate Judge Daneta Wollmann on November 1, 2019, and pleaded not guilty to the charge.
The maximum penalty upon conviction is 10 years in federal prison and/or a $250,000 fine, 3 years supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Buchholz, a previously convicted felon who is prohibited from possessing firearms, unlawfully possessing a semi-automatic pistol and a revolver, both with an obliterated serial number, in September 2019 at Rapid City. The charges are merely accusations and Buchholz is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Ben Patterson is prosecuting the case.
Buchholz was detained pending trial. A trial date has not been set.
Rapid City Man Charged with Unlawful Possession of a FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man was charged in federal district court with Possession of a Firearm by a Prohibited Person.
Adam Seales, age 25, was charged on October 22, 2019. Seales appeared before U.S. Magistrate Judge Daneta Wollmann on November 1, 2019, and pleaded not guilty to the charge. The maximum penalty upon conviction is 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Seales, a previously convicted felon who is prohibited from possessing firearms, unlawfully possessing a semi-automatic pistol in September 2019 at Rapid City. The charge is merely an accusation and Seales is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Ben Patterson is prosecuting the case.
Seales was detained pending trial. A trial date has not been set.
Rapid City Man Charged with Unlawful Possession of a FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man was charged in federal district court with Possession of a Firearm by a Prohibited Person.
Lawrence Bocanegra, age 39, was charged on October 22, 2019. Bocanegra appeared before U.S. Magistrate Judge Daneta Wollmann on November 1, 2019, and pleaded not guilty to the charge.
The maximum penalty upon conviction is 10 years in federal prison and/or a $250,000 fine, 3 years supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Bocanegra, a previously convicted felon who is prohibited from possessing firearms, unlawfully possessing a semi-automatic pistol in September 2019 at Rapid City. The charge is merely an accusation and Bocanegra is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Ben Patterson is prosecuting the case.
Bocanegra was detained pending trial. A trial date has not been set.
Rapid City Man Charged with Possession with Intent to Distribute Methamphetamine and Unlawful Possession of a FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man was charged in federal district court with Possession with Intent to Distribute a Controlled Substance and Possession of a Firearm by a Prohibited Person.
Jerry Gorisek, age 48, was charged on September 10, 2019. Gorisek appeared before U.S. Magistrate Judge Daneta Wollmann on November 1, 2019, and pleaded not guilty to the charge. The penalty upon conviction is a minimum of 5 years up to 40 years’ in federal prison and/or a $5,000,000 fine, at least 4 years up to life supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Gorisek, possessing with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance, and unlawfully possessing a revolver in July 2019 at Rapid City. The charge is merely an accusation and Gorisek is presumed innocent until and unless proven guilty.
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.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Ben Patterson is prosecuting the case.
Gorisek was detained pending trial. A trial date has not been set.
Rapid City Man Charged with Failure to RegisterRead 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.
Titus Leading Cloud, age 30, appeared before U.S. Magistrate Judge Daneta Wollmann and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in a federal prison, a mandatory minimum term of 5 years up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between March 21, 2019, and October 22, 2019, Leading Cloud, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of a conviction under federal law, did knowingly fail to register and update his registration.
The charge is merely an accusation and Leading Cloud is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Cassandra DeCoste is prosecuting the case.
Leading Cloud was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for January 7, 2020.
Porcupine Man Charged with Assaulting a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that a Porcupine, South Dakota, man has been indicted by a federal grand jury for Assault on a Federal Officer.
Shane Kills Back, age 20, appeared before U.S. Magistrate Judge Daneta Wollmann and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is 8 years in prison, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Kills Back striking a female officer in the face with a fist on April 5, 2019, in Porcupine.
The charge is merely an accusation and Kills Back is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs - Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Cassandra DeCoste is prosecuting the case.
Kills Back was released on bond pending trial. A trial date has been set for January 7, 2020.
Pittsburgh Man on Bond for State Drug Offenses Sentenced to 6 Years in Federal Prison for Drug and Gun Law ViolationsRead the Press Release
PITTSBURGH, Pa. – Malik Martinez was sentenced to 72 months in prison for committing heroin, fentanyl, and crack cocaine trafficking and firearm crimes, United States Attorney Scott W. Brady announced today.
Martinez, age 22 of Pittsburgh, was sentenced by United States District Judge Arthur J. Schwab. Judge Schwab also sentenced Martinez to serve three years of supervised release after his prison term. Martinez was on bond in Pennsylvania state court for a prior drug trafficking crime when he committed the heroin, fentanyl, and crack cocaine trafficking and firearm crimes that led to his federal indictment, convictions, and sentence.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Pittsburgh Bureau of Police, the Federal Bureau of Investigation, and the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation leading to the convictions and sentence in this case. This case was prosecuted as 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.
Ohio Man Sentenced for Investment Fraud SchemeRead the Press Release
BOSTON – An Ohio man was sentenced yesterday in connection with a decade-long investment fraud scheme in which he defrauded more than 40 people of more than $2.5 million, and concealed more than 20 vehicles purchased with some of the victim funds.
Stephan Kuljko Jr., 61, of Stow, Ohio, was sentenced by U.S. Senior District Judge Mark L. Wolf to 156 months in prison, three years of supervised release, and ordered to pay $2,772,160 in restitution. In August 2019, Kuljko was convicted by a federal jury after a two-week trial of four counts of wire fraud and one count of obstruction of justice.
From 2006 through 2017, Kuljko spun a false story about himself as a wealthy man who won millions in the Ohio Lottery that he turned into hundreds of millions by investing in a Texas oil business and casinos. Kuljko solicited money from people by telling them that his vast fortune had been frozen in a bank account because of problems with the IRS, and that he needed money to pay for lawyers and to travel around the world to try to free up those funds. Kuljko operated his scheme mostly behind the scenes, using an associate in Arizona to solicit funds. Victims were promised huge returns, in many cases more than a million dollars for providing tens of thousands to assist Kuljko. The scheme also involved soliciting money to obtain and market what Kuljko represented as an extremely valuable, large uncut emerald. As with his other representations, the emerald deal was fictitious. In fact, the evidence at trial established that Kuljko had never won the lottery or invested in any Texas oil venture, had no bank account nor hundreds of millions of dollars, and the IRS was not tying up any of his money. Kuljko instead worked out of his home, buying and selling things like used snow blowers and rototillers.
United States Attorney Andrew E. Lelling and Joseph Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorneys Victor A. Wild and Mark J. Balthazard of Lelling’s Securities and Financial Fraud Unit prosecuted the case.
Ocala Convicted Felon Arrested for Possessing 25 Firearms and Hundreds of Rounds of AmmunitionRead the Press Release
Ocala, Florida – United States Attorney Maria Chapa Lopez announces the arrest of Nicholas Allen Groves (35, Ocala) on a criminal complaint charging him with possession of a firearm affecting commerce by a convicted felon. If convicted, Groves faces a maximum penalty of 10 years in federal prison.
According to the
criminal complaint , Groves has a 2012 felony conviction in Maryland for assault-first Degree. That incident involved Groves threatening another person with a firearm. Because of this felony conviction, Groves is prohibited from possessing firearms or ammunition under federal law.On November 6, 2019, federal agents executed a search warrant on an Ocala residence where Groves lived alone. Inside the residence, agents recovered at least 25 firearms (including AR-15 and AK-47 rifles), hundreds of rounds of ammunition, and personal identification documents belonging to Groves. Among the recovered ammunition, agents located three military-style 40mm smoke and parachute rounds.
A criminal complaint is merely an allegation that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Marion County Sheriff’s Office, and the City of Ocala Police Department. It will be prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
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. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Oakland Resident Wing Wo Ma Convicted of Federal Murder, Drug Distribution, Conspiracy, and Bribery ChargesRead the Press Release
SAN FRANCISCO - A federal jury in San Francisco convicted Wing Wo Ma, a/k/a Mark Ma, a/k/a Fat Mark, of murder, drug distribution conspiracy, weapons, and bribery charges, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The verdict follows a three-week trial before the Honorable Charles R. Breyer, United States District Judge.
“The jury’s verdict makes clear that Wing Wo Ma will answer for the brutal killings of Jim Tat Kong and Cindy Bao Feng Chen,” said U.S. Attorney Anderson. “The verdict also ensures that Ma’s personal crime wave, including murder, drug distribution, bribery, and conspiracy, has come to an end.”
“This trial brings a measure of justice for the families of Jim Tat Kong and Cindy Bao Feng Chen. Wing Wo Ma committed these homicides in cold blood and showed a blatant disregard for the rule of law,” said Special Agent in Charge Bennett. “The arrest and conviction of Wing Wo Ma shows the FBI’s commitment to get dangerous criminals off the street and protect Northern Californians from violent threats.”
According to the evidence submitted at trial, Ma, 53, of Oakland, shot and killed Jim Tat Kong and Cindy Bao Feng Chen on October 17, 2013, in Ft. Bragg, Calif., while the couple was seated in their minivan. Beginning in January of 2013, Ma had borrowed money from Kong for several business ventures including a marijuana grow and a real estate scheme in Mendocino County. Fearing retribution from Kong upon finding himself unable to repay the money, Ma met with Kong and Chen on Chen’s birthday. While seated in the car, Ma shot each of the victims with a single gunshot to the head and then left their bodies in the minivan parked in a secluded, wooded area in Mendocino County.
Further, Ma was convicted of bribery. The evidence demonstrated that Ma bribed Harry Hu, an inspector employed by the Alameda County District Attorney and a former Lieutenant in the Oakland Police Department. Ma bribed the inspector with airfare for multiple trips to Las Vegas, free accommodation at high-end suites and hotel rooms at Las Vegas casinos, meals and entertainment in Las Vegas and San Francisco, female hostesses at private room bars in Las Vegas and San Francisco, music concert tickets, use of a new Mercedes Benz, and labor for the remodel of the DA investigator’s personal residence. Ma bribed Hu in an effort to protect himself from prosecution and investigation by Hu and other law enforcement agencies. Ma also collected money from criminal associates for the purpose of bribing Hu and represented to criminal associates that Hu was an investor in Ma’s fraudulent investment projects. As part of the bribery scheme, Ma used Hu’s name and reputation to attract investors to Ma’s fraudulent schemes.
On April 6, 2017, a federal grand jury indicted Ma, charging him with one count each of conspiracy to cultivate, distribute, and possess with intent to distribute marijuana, in violation of 21 U.S.C. §§ 846 and 841(a)(1) and (b)(1)(B); discharging a firearm during and in relation to a drug trafficking crime, in violation of 18 U.S.C. § 924(c)(1)(A); and use of a firearm causing murder, in violation of 18 U.S.C. § 924(j). On October 11, 2018, the grand jury handed down a superseding indictment adding one count of conspiracy to commit honest services fraud and bribery, in violation of 18 U.S.C. §§ 371, 666, 1343, and 1346. In finding Hu guilty of all charges, the jury found that Ma’s conspiracy included the intent to possess 100 or more marijuana plants, that he discharged his gun in connection with his drug trafficking crimes, and that he murdered Kong and Chen with malice aforethought and premeditation.
Judge Breyer scheduled Ma’s sentencing for February 12, 2020. Ma faces the following maximum statutory sentences:
- Conspiracy to cultivate and distribute and to possess with intent to distribute marijuana: maximum term of forty years imprisonment, maximum fine of $5,000,000, at least four years, but up to lifetime, supervised release. (Mandatory minimum prison term of five years.)
- Use of Firearm Causing Murder: maximum lifetime imprisonment, maximum fine of $250,000, maximum three years of supervised release.
- Use of a firearm during and in relation to a drug trafficking crime: maximum life imprisonment, maximum fine of $250,000, maximum five years of supervised release. (Minimum consecutive penalties include the following: 5 years consecutive mandatory minimum, 7 years if the firearm is brandished, and 10 years if the firearm is discharged.)
- Bribery: maximum penalty of ten years imprisonment, maximum $250,000 fine, maximum three years of supervised release.
However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant United States Attorneys Christiaan Highsmith and William Frentzen are prosecuting the case with the assistance of Jessica Meegan, Kimberly Richardson, Morgan Byrne, and Lance Libatique. The prosecution is the result of an investigation by the Federal Bureau of Investigation, Mendocino County Sheriff’s Office, California Department of Justice, and Oakland Police Department.
Notice Regarding Phone Calls Appearing to Orginate from the U.S. Attorney's OfficeRead the Press Release
Over the past week, many members of the public have let us know they are receiving phone calls that appear to be coming from the U.S. Attorney’s Office, but are not actually coming from this office. It appears that these calls are being made to look like they are coming from the U.S. Attorney’s Office through the use of a fake caller ID, which is falsely stating that the call is coming from a number associated with the U.S. Attorney’s Office. The false use of caller ID is also known as “spoofing.” For more information regarding “spoofing” please visit: https://www.fcc.gov/consumers/guides/spoofing-and-caller-id
Members of the public who are concerned about whether they have received a legitimate call from the U.S. Attorney’s Office may call us and inquire. The main line for the US Attorney’s Office is 303-454-0100.
Newington Man Who Embezzled Union Funds is SentencedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that THOMAS POPILLO, 62, of Newington, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to two years of probation, the first six months of which Popillo must serve in home confinement, for embezzling from the Communications Workers of America Local 81266.
According to court documents and statements made in court, from 2003 through 2017, Popillo served as the president of the Communications Workers of America Local 81266 (“CWA 81266”). He also served as the secretary-treasurer of CWA 81266 from approximately 2003 until 2015. During his tenure as a CWA 81266 officer, Popillo embezzled approximately $37,568.68 of labor union funds by receiving unauthorized checks from CWA 81266’s bank account, and by making unauthorized purchases with CWA 81266’s debit card.
Judge Bolden ordered Popillo to make full restitution.
On August 7, 2019, Popillo pleaded guilty to one count of embezzlement and theft of labor union funds.
This matter was investigated by the U.S. Department of Labor, Office of Labor Management Standards. The case was prosecuted by Assistant U.S. Attorney Margaret M. Donovan.
Newark Man Sentenced to 151 Months in Prison for Firearm and Drug OffensesRead the Press Release
NEWARK, N.J. – A Newark man was sentenced today to 151 months in prison for possession of a loaded firearm and possession with intent to distribute heroin in Newark U.S. Attorney Craig Carpenito announced.
Aljaneer Waller, 41, previously pleaded guilty before U.S. District Court Judge Kevin McNulty to an information charging him with one count of possession of a firearm by a convicted felon, and one count of possession with intent to distribute heroin. Judge McNulty imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On May 11, 2018, at approximately 8:00 p.m., officers from the Newark Police Criminal Intelligence Unit were patrolling the area of Maple and Hansbury avenues in Newark when they observed an Audi automobile parked in the driveway of what appeared to be an uninhabited house. The vehicle had dark tinting on all of its windows, including on the front windows and windshield, which is a violation of New Jersey motor vehicle traffic laws. It was also partially blocking the sidewalk, which is also a violation of New Jersey motor vehicle laws.
As the officers approached the Audi, they observed Waller sitting in the reclined driver’s seat with the window rolled down. They also smelled a strong odor of marijuana emanating from the vehicle. When Waller observed the officers approaching the Audi, he became startled and abruptly turned towards the back seat, and then turned back towards the front again.
One of the officers then shined his flashlight into the Audi and observed what appeared to be a silver handgun on the back seat of the Audi. Waller opened the driver’s door and began to quickly exit the Audi. However, the officers detained him and then conducted a search of the back seat area of the Audi, which revealed a loaded .357 Magnum Ruger SP101 revolver and 114 envelopes of heroin. Waller was also found to have $1,067 in cash in his pocket. In the trunk of the Audi, officers found more than $13,000 and 40.6 grams of marijuana.
In addition to the prison term, Judge McNulty sentenced Waller to three years of supervised release.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and officers of the Newark Police Department, under the direction of Public Safety Director Anthony F. Ambrose, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jonathan W. Romankow of the Violent Crimes Unit in Newark.
Defense counsel: Brooke M. Barnett Esq. Newark
New Orleans Man Indicted for Violating Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced that on November 7, 2019, CHRISTOPER BONDY, age 39, a resident of New Orleans, Louisiana, was indicted today by a Federal Grand Jury in a one count indictment, charging him with attempting to possess with the intent to distribute 500 grams or more of cocaine.
These charges stem from an investigation by Special Agents of the Department of Homeland Security and Jefferson Parish Sheriff’s Office into the illegal activities of BONDY.
BONDY, if convicted, faces a mandatory minimum term of imprisonment of 5 years in prison and a maximum of 40 years in prison, a fine of not more than $5,000,000.00, and a four year term of supervised release on the drug charges, as to each count.
U.S. Attorney Strasser reiterated that the indictment is merely a charging document and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the Department of Homeland Security and the Jefferson Parish Sheriff’s Office. Assistant United States Attorney Bayonle Osundare is in charge of the prosecution.
New Haven Man Sentenced to More Than 3 Years in Prison for Illegally Possessing Loaded HandgunRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MAHDI HENDERSON, 25, of New Haven, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 37 months of imprisonment, followed by three years of supervised release, for illegally possesses a loaded handgun.
According to court documents and statements made in court, on November 22, 2017, as part of an unrelated investigation, members of the New Haven and Hamden police departments executed a search warrant at a New Haven residence and encountered Henderson and three other individuals inside the residence. During the search, law enforcement discovered a loaded .22 caliber Smith & Wesson handgun under the couch where Henderson had been sitting. Subsequent forensic analysis of the handgun revealed Henderson’s DNA on the trigger of the gun.
Henderson’s criminal history includes felony convictions for assault in the first degree, possession of a pistol without a permit, and burglary in the second degree.
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.
Henderson has been in state custody for a violation of probation since October 23, 2018. On July 30, 2019, he pleaded guilty in federal court to one count of possession of a firearm by a convicted felon.
This matter was investigated by the Federal Bureau of Investigation, Drug Enforcement Administration, New Haven Police Department and Hamden Police Department, with the assistance of the Connecticut Forensic Science Laboratory. The case was prosecuted by Assistant U.S. Attorney Nathaniel J. Gentile.
New Haven Man Arrested on Firearm and Narcotics ChargesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that SHANNON WICKER, also known as “Bishop,” 33, of New Haven, was arrested yesterday on a federal criminal complaint charging him with narcotics and firearm offenses.
As alleged in the complaint, on October 16, 2019, law enforcement conducted a court-authorized search of a Chapel Street apartment and found a loaded .45 caliber semi-automatic pistol; additional rounds of .45 caliber ammunition; quantities of heroin, cocaine, crack cocaine and marijuana; items used to process and package narcotics for street sale, and other items. Wicker, who was present during the search, was arrested on related state charges at that time.
It is alleged that Wicker’s criminal history includes multiple state felony convictions, including convictions for weapon in a motor vehicle, sale of illegal hallucinogens or narcotics, sale of a controlled substance, possession of narcotics, tampering with evidence, and failure to appear.
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.
The complaint charges Wicker with possession with intent to distribute, and distribution of, a controlled substance; possession of a firearm by a convicted felon, and possession of a firearm in furtherance of a drug trafficking offense. If convicted of the charges, Wicker faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of life.
Wicker is detained pending a bond hearing that is scheduled for November 14, 2019.
U.S. Attorney Durham stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the New Haven Police Department, Connecticut State Police, Connecticut Department of Correction, and Bureau of Alcohol, Tobacco, Firearms, and Explosive. The case is being prosecuted by Assistant U.S. Attorney Margaret M. Donovan.
This prosecution 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 neighborhoods safer for everyone.
Nevada Resident Pled Guilty and was Sentenced in Miami for Trafficking an Endangered Galapagos TortoiseRead the Press Release
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Resident Agent in Charge David Pharo, U.S. Fish & Wildlife Service, and Major Alfredo Escanio, Southern Region B Commander, Florida Fish & Wildlife Conservation Commission, announced that defendant, Alan Francisco Wheelock, 33, of Las Vegas, Nevada, pled guilty today in Miami, Florida for conduct that involved the purchase and sale of a Galapagos tortoise (Chelonoidis niger), which was possessed, transported, and sold in violation of the Endangered Species Act (ESA), Title 16, United States Code, Section 1538(a)(1)(E) and (G), and the federal Lacey Act, Title 16, United States Code, Sections 3372(a)(1) and 3373(d)(1)(B).
Wheelock, after entering his guilty plea today before U.S. District Court Judge Ursula M. Ungaro, was immediately sentenced to a two-year term of probation, with a special condition that he serve 120 days of home confinement. In addition, the Court imposed a $7,000 criminal fine, to be directed to the Lacey Act Reward Account and ordered that Wheelock perform 100 hours of community service. The charges against co-defendant Maurico M. Perez, a resident of Miami, were dismissed due to his death after the return of the Indictment.
According to the charges, statements in Court, and a Joint Factual Statement executed by the parties, on August 27, 2018, an Investigator and a Canine Officer with the Florida Fish & Wildlife Conservation Commission Division of Law Enforcement were alerted by K-9 “Mag” to a suspicious parcel at a Miami-area FedEx store. Inspection of the package revealed an ESA-listed, juvenile Galapagos tortoise, being shipped to Wheelock in Las Vegas.
The investigation revealed that in August 2018, Wheelock visited a public internet site for reptile enthusiasts. Wheelock saw an advertisement on the site by a licensed breeder, offering “Galapagos Hatchlings” for sale. The site also stated that, “A CBW [Captive-Bred Wildlife Registration Permit] is required if you are outside Florida – Valid proof will be required . . . make sure your CBW is up to date – I will check with proper authorities . . . .”
Wheelock contacted his cousin, co-defendant Perez, via a series of Facebook chat messages and requested that he contact the breeder, pose as an in-state buyer, and acquire a baby Galapagos tortoise to be shipped via FedEx to Wheelock in Las Vegas. Wheelock offered Perez $400 to drive to the breeder’s facility in central Florida. Wheelock, using banking information provided by Perez, wired $4,500 into Perez’s bank account.
On August 25, 2018, Perez travelled by car from Miami, and met with the breeder, withdrawing $4,300 from a branch of his bank on the way. While at the breeder’s facility, Perez posted video clips photos to his Facebook account, which included depictions of juvenile Galapagos tortoises. Perez paid the breeder $3,900, in exchange for one juvenile Galapagos tortoise, which he transported back to Miami. On August 27, 2018, Perez was captured on videotape presenting the box containing the Galapagos tortoise to the FedEx facility in Miami and paying to have the package sent to a FedEx Shipping Center in Las Vegas, addressed to Wheelock.
On August 28, 2018, Wheelock took delivery of the parcel containing the Galapagos tortoise at the FedEx Store in Las Vegas. The entire transaction involving the parcel was captured on videotape, as well as being physically surveilled by a Special Agent of the FWS.
The tortoise at issue, referred to as “Miami,” has been transferred to the U.S. Fish & Wildlife Service and returned to Florida.
U.S. Attorney Fajardo Orshan commended the Special Agents of the Fish & Wildlife Service in Florida and Nevada, and Investigators with the Florida Fish & Wildlife Conservation Commission and Border Protection Officers, who investigated this matter. She thanked the Fish & Wildlife Service’s National Forensic Laboratory for their technical support. The case was prosecuted by Assistant U.S. Attorney Thomas Watts-FitzGerald.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Navy Employee Sentenced to 40 Years in Prison for Child Pornography Offenses with Multiple VictimsRead the Press Release
A Navy employee, who resided in Silver Spring, Maryland, before moving to Japan, was sentenced today to 40 years in prison for the production, transportation and possession of child pornography.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Robert K. Hur of the District of Maryland and Special Agent in Charge Jennifer C. Boone of the FBI’s Baltimore Field Office made the announcement.
Spencer E. Steckman, 36, was sentenced by U.S. District Court Judge Paul W. Grimm of the U.S. District Court for the District of Maryland. Steckman pleaded guilty on June 11, 2019, to one count of production of child pornography, one count of transportation of child pornography and one count of possession of child pornography. In addition to his prison sentence, Steckman received a lifetime of supervised release and was ordered to pay $120,000 in restitution to the victims.
According to court documents, Steckman enticed at least 10 preteen and teenage boys to engage in sexually explicit conduct, record it and send it to him. He employed a variety of tactics, including misrepresenting his identity, offering money and videogame redemption codes and encouraging the children to compete with others to produce and send the “best” photos. After years of this conduct, he moved to Japan in mid-November 2017, where he worked with Commander Navy Region Japan and transported and possessed child pornography.
The Naval Criminal Investigative Service (NCIS) in Japan detained Steckman on March 27, 2018. The U.S. Marshals service transported him back to Maryland to appear before the U.S. District Court for the District of Maryland. He has remained in custody since that time.
Further investigation revealed that Steckman had previously molested two prepubescent children on numerous occasions, that he had given one of the teenage boys cash and marijuana to engage in sexual activity with him, that he had shared his child pornography with like-minded offenders and that he stored most of his child pornography collection on an encrypted device.
The FBI’s Baltimore Field Office and the Maricopa County, Arizona, Sheriff’s Office investigated the case, with substantial assistance from NCIS. Trial Attorney Jessica Urban of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Joseph Baldwin of the District of Maryland are prosecuting the case.
This investigation was a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Navy Employee Sentenced to 40 Years in Federal Prison for Child Pornography Offenses Involving Multiple VictimsRead the Press Release
Greenbelt, Maryland – U.S. District Court Judge Paul W. Grimm sentenced Spencer E. Steckman, 36, a Navy employee formerly of Silver Spring, Maryland, today to 40 years in federal prison, followed by lifetime supervised release, for the production, transportation, and possession of child pornography. Judge Grimm also ordered that Steckman pay restitution of $120,000 to the victims, and that Steckman must register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; and Special Agent in Charge Jennifer C. Boone of the FBI’s Baltimore Field Office.
Steckman pleaded guilty on June 11, 2019, to one count of production of child pornography, one count of transportation of child pornography, and one count of possession of child pornography.
According to his plea agreement and other court documents, Steckman enticed at least 10 preteen and teenage boys to engage in sexually explicit conduct, record it and send it to him. He employed a variety of tactics, including misrepresenting his identity, offering money and video game redemption codes, and encouraging the children to compete with others to produce and send the “best” photos. Steckman also admitted that he gave one of the victims cash and marijuana to engage in sexual activity with him. After years of this conduct, Steckman moved to Japan in mid-November 2017, where he worked with Commander Navy Region Japan, and transported and possessed the child pornography.
Further investigation revealed that Steckman had shared his child pornography, including images sent to him by the victims, with like-minded offenders, and that he stored most of his child pornography collection on an encrypted device.
Steckman was detained by the Naval Criminal Investigative Service (NCIS) in Japan on March 27, 2018, and transported back to Maryland by the United States Marshals Service to appear before the U.S. District Court for the District of Maryland. He has remained in custody since that time.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Robert K. Hur and Assistant Attorney General Brian A. Benczkowski commended the FBI’s Baltimore Field Division and the Maricopa County, Arizona, Sheriff’s Office who investigated the case, with substantial assistance from NCIS. Mr. Hur and Mr. Benczkowski thanked Assistant U.S. Attorney Joseph Baldwin and Trial Attorney Jessica Urban of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), who prosecuted the case.
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Monroe Couple Sentenced to 69 Years Collectively in Prison for Armed Robbery Bank SpreeRead the Press Release
MONROE, La. – A Monroe couple was sentenced to 69 years collectively in prison for robbing three financial institutions at gunpoint and for multiple firearms violations, announced United States Attorney David C. Joseph.
Lakendria Nicole Goings, 35, and David Ray Johnson, 37, were convicted on August 1, 2019, following a four-day trial, of all counts submitted to the jury – two counts of bank robbery, one count of credit union robbery, and three counts of using, carrying, brandishing and discharging a firearm during a crime of violence. In addition, Johnson was found guilty of two counts of convicted felon in possession of a firearm.
U.S. District Judge Terry A. Doughty presided over the trial and handed down Johnson’s sentence of 41 and a half years in prison on November 6, 2019, and sentenced Goings today to 28 years, three months in prison.
Evidence presented at trial showed that Goings and Johnson’s spree began when they robbed the Guaranty Bank branch in Epps, Louisiana on November 10, 2017. The defendants entered the bank wearing hoodies to obscure their faces, and waiving semi-automatic handguns in the direction of customers and employees. Johnson stood at the entrance door acting as lookout and rear guard, while Goings directed the gun at the face of a bank teller, ordering the bank teller to fill a bag with money. The robbers left Guaranty Bank with approximately $17,307. After the robbery, Epps Police Department officers and West Carroll Parish Sheriff’s detectives found a cloth work glove worn by Johnson during the robbery, several rolls of coins, and a .40 caliber semi-automatic handgun, in a vacant lot close to the bank. DNA from the glove matched David Ray Johnson’s DNA, which was in a North Carolina DNA database as a result of Johnson’s 2012 felony conviction for financial card theft.
The second and third robberies occurred on November 27, 2017 (Barksdale Federal Credit Union in Cotton Valley, Louisiana), and December 18, 2017 (Winnsboro State Bank in Gilbert, Louisiana). On both occasions the defendants entered dressed in black, bulky hooded clothing with dark fabric covering their faces, waiving semi-automatic firearms at bank customers and employees and demanding money from the tellers. They left Barksdale FCU with $12,756, and Winnsboro State Bank with $28,447.
After the robbers left Winnsboro State Bank with a duffel bag full of money, Franklin Parish Sheriff’s deputies located the getaway car and began a high-speed chase with the defendants’ Toyota Sequoia, sometimes exceeding 100 mph. During the chase, Johnson, who was driving, pointed a semi-automatic handgun out of the driver’s window and fired several times at the deputies. The vehicle later crashed in a residential area in Winnsboro, Louisiana, and the defendants surrendered to authorities. Johnson exited the vehicle with a .40 caliber pistol in his hand, loaded with a round in the chamber and four live rounds in the magazine, which dropped to the ground as he submitted to arrest. This .40 caliber semi-automatic pistol was of the same make, model and caliber handgun that investigators found in the vacant lot near the Guaranty Bank robbery in Epps.
In the Sequoia, deputies found a duffel bag with $28,477 in cash, black clothing, hooded jackets, black fabric consistent with the masks worn during the robberies, and paper coin wrappers bearing handwritten account numbers belonging to Barksdale FCU customers. Officers also found a Double Star Brand, Model Star 15, .223-caliber semi-automatic AR-type rifle, which Johnson had just brandished in the Winnsboro State Bank robbery, loaded with a live round in the chamber and 27 rounds in a detachable magazine.
“Today’s sentence demonstrates our firm commitment to fight the menace of violent crime in the Western District of Louisiana,” said U.S. Attorney Joseph. “The lawlessness of these defendants and the terror they caused will not be tolerated.”
The FBI, ATF, Louisiana State Police, Franklin Parish Sheriff’s Office, East Carroll Parish Sheriff’s Office, Webster Parish Sheriff’s Office, Epps Police Department, Cotton Valley Police Department, and Winnsboro Police Department investigated the case. Assistant U.S. Attorneys J. Aaron Crawford and Brandon B. Brown prosecuted the case, aided by District Attorney Mack Lancaster’s office, Fifth Judicial District of Louisiana.
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.
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Miami, FL Man Pleads Guilty in Large-Scale Cocaine Trafficking SchemeRead the Press Release
PITTSBURGH - A resident of Miami, FL pleaded guilty in federal court to a charge of conspiring to distribute kilograms of cocaine, United States Attorney Scott W. Brady announced today.
Sebastian Velasquez, age 29, pleaded guilty to a charge of conspiracy to distribute five kilograms or more of cocaine before Senior United States District Judge Donetta W. Ambrose.
In connection with the guilty plea, the court was advised that from October 2017 through July 2018, Velasquez and his co-conspirators conspired to distribute between 50 to 150 kilograms of cocaine in the Western District of Pennsylvania. Velasquez’s co-conspirators obtained the supply of cocaine and physically transported kilograms of cocaine via bus from Philadelphia to Pittsburgh roughly twice a month for the nine-month period. In connection with this investigation, the United States seized nearly $8,000,000 in cash and other assets; 42 kilograms of cocaine; 12 kilograms of fentanyl; three kilograms of heroin; and 121 grams of oxycodone.
Velasquez’s co-defendants,Moussa Jabateh and Danny Jackson, both plead guilty in October and are awaiting sentencing.
Senior Judge Ambrose scheduled sentencing for on March 19, 2020 at 11:00 a.m. The law provides for a total sentence of not less than 10 years and up to life in prison, a fine of $10,000,00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued the defendant’s bond.
Assistant United States Attorneys Tonya Sulia Goodman and Mark V. Gurzo are prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the Federal Bureau of Investigation Greater Pittsburgh Safe Streets Task Force, which includes the Pittsburgh Bureau of Police, the Allegheny County Sheriff’s Office, the Pennsylvania Attorney General’s Office, the Wilkinsburg Police Department, and the Allegheny County Adult Probation Office, conducted the investigation that led to the prosecution of Velasquez
Meth trafficker gets more than 11 years in federal prisonRead the Press Release
CORPUS CHRISTI, Texas - A 24-year-old Edinburg man has been ordered to prison following his conviction of trafficking meth, announced U.S. Attorney Ryan K. Patrick.
Enrique Alessandro Quintero pleaded guilty Aug. 6.
Today, U.S. District Judge David S. Morales handed Quintero a 135-month sentence to be immediately followed by five years of supervised release. In handing down the sentence, the court noted the quantity of drugs.
On or about April 10, Quintero drove a Chevrolet pickup truck towing a trailer through the U.S. Border Patrol Checkpoint near Falfurrias. After a service K-9 alerted to the vehicle, law enforcement discovered the gas tank concealed 15 bundles of pure meth.
The narcotics weighed approximately 4.778 kilograms with an estimated street value in excess of $50,000. Two additional bundles of heroin were also hidden in the gas tank.
Quintero had previously been on bond but found to have violated those conditions after he failed to appear for a court setting. The court then ordered him into custody where he has been and will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Reid Manning is prosecuting the case.
Manhattan U.S. Attorney Announces Settlement of Lawsuit Against Spinal Implant Company, Its CEO, and Another Executive for Paying Millions of Dollars in Kickbacks to SurgeonsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Scott J. Lampert, Special Agent in Charge of the New York Regional Office of the U.S. Department of Health and Human Services, Office of the Inspector General (“HHS-OIG”), announced today that the United States has settled a civil healthcare fraud lawsuit against LIFE SPINE INC. (“LIFE SPINE”), MICHAEL BUTLER (“BUTLER”), the founder, president, and chief executive officer of LIFE SPINE, and RICHARD GREIBER (“GREIBER”), the vice president of business development of LIFE SPINE, alleging that LIFE SPINE paid kickbacks in the form of millions of dollars of consulting fees, royalties, and intellectual property acquisition fees to surgeons to induce them to use LIFE SPINE’s spinal implants, devices, and equipment. The surgeons who received these kickbacks accounted for approximately half of Life Spine’s domestic sales of spinal products from 2012 through 2018. In the settlement, LIFE SPINE agreed to pay $5.5 million, BUTLER agreed to pay $375,000, and GREIBER agreed to pay $115,000. Each defendant also made admissions and acknowledged and accepted responsibility for conduct alleged in the Government’s complaint as described further below. The amounts paid by LIFE SPINE and GREIBER under the settlement are based on the Office’s assessment of their ability to pay based on the financial information they provided.
The settlement was approved by U.S. District Judge Jed S. Rakoff.
Manhattan U.S. Attorney Geoffrey S. Berman said: “The settlement reflects this Office’s commitment to stopping companies like Life Spine, and the individuals who run them, from engaging in unlawful kickback schemes. Such conduct seriously undermines the public’s confidence in medical treatment decisions made by doctors whose judgment may be compromised by illegal kickbacks. This Office will continue vigorously to pursue companies and individuals who pay health care providers to induce them to use their products or services.”
HHS-OIG Special Agent in Charge Scott J. Lampert said: “Medical treatment should be based on the patient’s best interest and not on illegal kickbacks. We will continue working with our law enforcement partners to protect patients and taxpayers from individuals who place profits before the needs of patients.”
According to the Complaint filed in Manhattan federal court:
LIFE SPINE is a Delaware corporation with its principal place of business in Huntley, Illinois. LIFE SPINE designs, develops, manufactures, and markets medical devices and equipment primarily used in spinal surgeries performed by orthopedic surgeons and neurosurgeons, including implants and instruments (“Life Spine Products”).
LIFE SPINE paid surgeons to induce them to use Life Spine Products during their surgeries. LIFE SPINE aggressively recruited surgeons who had the potential to use a high volume of Life Spine Products to enter into agreements to serve as paid consultants and/or to transfer their patents and patent applications to LIFE SPINE in exchange for payments and promised support from LIFE SPINE to bring the surgeons’ new products to market. These agreements took different forms, including agreements under which the surgeons were purportedly paid to provide training and/or educational services; agreements under which the surgeons were purportedly paid to provide input on new products and then would receive royalties on future sales of the product; and agreements under which the surgeons were paid large up-front acquisition fees for their patents/patent applications and then would receive royalties on the sales of any products developed based on the patents. LIFE SPINE tied these agreements and the associated payments – as well as the company’s continued commitment to devote resources to the surgeons’ product development projects – to the surgeons’ usage of Life Spine Products.
The kickback scheme was successful and these surgeons used Life Spine Products during procedures performed on Medicare and Medicaid patients, which resulted in the submission of kickback-tainted false claims to Medicare and Medicaid.
As part of the settlement, LIFE SPINE admits, acknowledges, and accepts responsibility for the following conduct:
- Between 2012 and 2018 (the “relevant period”), LIFE SPINE entered into agreements with dozens of surgeons and paid these surgeons, and entities owned in whole or in part by the surgeons, millions in consulting fees, royalties, and intellectual property (“IP”) acquisition payments. Most of the surgeons who received these payments substantially increased their usage of Life Spine Products after entering into agreements with LIFE SPINE.
- Many of the surgeons who received consulting fees, royalties, and IP acquisition payments were high-volume users of Life Spine Products. Approximately 21 of the top 30 users of Life Spine Products during the relevant period received consulting fees, royalties, and/or IP acquisition payments. In addition, approximately half of LIFE SPINE’s domestic sales of spinal products during the relevant period were attributable to surgeries performed by surgeons who received consulting fees, royalties, and IP acquisition payments from LIFE SPINE.
- During the relevant period, LIFE SPINE generated reports for management that reflected both the payments made to surgeons and the surgeons’ usage of Life Spine Products during a given time period. On one occasion a report included an “ROI” column that calculated LIFE SPINE’s return on investment by dividing the sales revenue associated with each surgeon’s usage of Life Spine Products by the total amount paid to that surgeon in consulting fees and royalties during the same period. When surgeons’ usage decreased, senior sales managers would contact the surgeons, or their distributors, to urge the surgeons to use Life Spine Products more frequently.
BUTLER admits, acknowledges, and accepts responsibility for the following conduct:
- BUTLER was involved in identifying and retaining some of the surgeons who served as paid consultants for LIFE SPINE. He reviewed many of the patents that LIFE SPINE considered purchasing from surgeons and was involved in some of the negotiation of the terms of the IP purchase agreements, in some instances including the initial acquisition fee and royalty rates.
- On multiple occasions, BUTLER received reports that reflected both the payments made to surgeons and the surgeons’ usage of Life Spine Products during a given time period. When surgeons’ usage of Life Spine Products decreased, on occasion, BUTLER would contact the surgeons, or their distributors, to encourage them to increase their usage of Life Spine Products.
GREIBER admits, acknowledges, and accepts responsibility for the following conduct:
- GREIBER was one of the LIFE SPINE managers responsible for reviewing the qualifications of, selecting, and approving surgeons who served as paid consultants for LIFE SPINE.
- LIFE SPINE entered into an IP purchase agreement under which LIFE SPINE licensed a patent for a static compression plate owned by a company associated with a surgeon who wanted to develop the product and bring it to market. GREIBER was one of the two LIFE SPINE managers who signed the agreement on behalf of LIFE SPINE. LIFE SPINE spent hundreds of thousands of dollars to attempt to develop and bring the compression plate to market but encountered a number of setbacks. The surgeon accounted for over $3.7 million in Life Spine Product sales from 2012 through 2016.
- In 2016, GREIBER participated in two discussions with the surgeon during which LIFE SPINE’s continued funding of the project and the surgeon’s recent decreased usage of Life Spine Products were discussed. During the calls, while discussing the funding of the compression plate, GREIBER suggested that the surgeon should increase his usage of Life Spine Products. On one call, GREIBER asked the surgeon to consider using Life Spine “more vigorously” than he recently had been. Later in the discussion, the surgeon suggested that the company and he “renew our vows to each other.”
In connection with the filing of the lawsuit and settlement, the Government intervened in a private whistleblower lawsuit that had been filed under seal pursuant to the False Claims Act.
Mr. Berman thanked the FBI and HHS-OIG for their assistance with the case.
The case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorneys Jennifer Jude, Jeffrey K. Powell, Lara K. Eshkenazi, and Rachael Doud are in charge of the case.
Man Pleads Guilty to Sending Text Messages Threatening to Kill JewsRead the Press Release
U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida and Special Agent George L. Piro of the FBI’s Miami Field Office announced that Hanson Richard Larkin, 26, of DeLand, Florida, pled guilty yesterday to a felony Information charging him with knowingly and intentionally transmitting a threatening communication in interstate commerce, in violation of Title 18, United States Code, Section 875(c). Larkin, who has been in custody since his arrest, is scheduled for sentencing on January 8, 2020, at 2:00 p.m. before U.S. District Judge Jose E. Martinez, where he faces a possible maximum sentence of five years in prison.
According to the facts admitted at the change of plea, Larkin met an individual who resided in Miami-Dade County online around 2017, and over time, they became friends, communicating via text, phone, and various social media outlets. This friendship did not include any in-person interactions. On a number of occasions during the two years leading up to August 25, 2019, Larkin told this individual about his hatred of Jews.
In 2019, Larkin repeatedly expressed his intent to travel to Miami, Florida to meet with this individual, even though the individual repeatedly urged him not to come because he did not want to meet with the defendant. On August 24, 2019, Larkin traveled from DeLand, Florida, to Miami, Florida via train, and on August 25, 2019, while Larkin was in Miami-Dade County, he texted the individual that he was at his house, despite being told not to visit.
Larkin then sent the following series of threatening text messages designed to coerce this individual to meet with him: (a) “…I bought a gun with my first paycheck If I don’t meet you I will be forced to use it.” (b) “I told you how much I hate Jews right?” (c) “If meeting me for five seconds is not worth the lives of multiple Jews than I have no other option.” (d) “There’s a chabad near me. And Amtrak has no security for weapon. Don’t make me make a choice theyll regret.” (e) “Ok so then we meet and no dead Jews?”
The recipient took these threats seriously because of Larkin’s frequent expressions of hatred for Jews, and contacted local law enforcement. No meeting ever took place between this individual and Larkin, and Larkin returned to DeLand on August 26, 2019, where he was eventually arrested.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI in this matter. She thanked the West Miami Police Department, Hialeah Police Department, Volusia County Sheriff’s Office, DeLand Police Department, FBI Jacksonville, and Amtrak Police Department for their invaluable assistance. This case is being prosecuted by Assistant U.S. Attorneys Edward N. Stamm and Maria K. Medetis.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.