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Thursday 7 November 2019
Braddock Felon and SCO Gang Member Pleads Guilty to Drug Trafficking ChargesRead the Press Release
PITTSBURGH, PA – A resident of Braddock, Pennsylvania, pleaded guilty in federal court to charges of narcotics trafficking, United States Attorney Scott W. Brady announced today.
Jaymare Jackson, 29, pleaded guilty to two counts before Senior United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that the Greater Pittsburgh Safe Streets Task Force conducted a long-term investigation of drug trafficking occurring in and around the Braddock section of Pittsburgh. Jaymare Jackson, and other individuals, were identified as members of a neighborhood-based street gang, self-titled "SCO", which illegally distributed controlled substances in the Greater Pittsburgh region. In January of 2019, investigators obtained authorization to conduct a federal wire investigation, which continued through May of 2019. During that time period, intercepted communications confirmed that Mr. Jackson was conspiring with others to possess with intent to distribute and distribute controlled substances. The court accepted Jackson’s guilty plea to conspiracy to distribute 100 grams or more of heroin, a Schedule I controlled substance, and conspiracy to distribute a quantity of cocaine base, commonly known as crack, a Schedule II controlled substance, between August 2018 and May 2019.
The Court was also advised that on June 12, 2019, Jackson illegally possessed two firearms as well as items used to package and distribute controlled substances. Jackson acknowledged that he knew, at that time, that he could not possess the firearms after having been previously convicted of carrying a firearm without a license. Federal law prohibits anyone who has previously been convicted of a crime punishable by a term of imprisonment exceeding one year, to possess a firearm or ammunition.
Judge Schwab scheduled sentencing for April 1, 2020 at 10:00 AM. The law provides for a maximum sentence of not less than five and not more than 40 years in prison, a fine of not more than $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Drug Enforcement Administration, Bureau of Alcohol Tobacco Firearms and Explosives, United States Marshals Fugitive Task Force, Allegheny County Sheriff’s Office, Allegheny County Police Department, Pennsylvania State Police, Pennsylvania Attorney General’s Office Bureau of Narcotics, and the Pittsburgh Bureau of Police. Other assisting agencies include the Monroeville Police Department, Penn Hills Police Department, Wilkinsburg Police Department, and Allegheny County Adult Probation.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Boston-Area Restaurant Owner Sentenced for Tax FraudRead the Press Release
BOSTON – A former owner of restaurants in Boston and Chelsea was sentenced today in federal court in Boston for tax fraud convictions.
Burhan Ud Din, 50, of Watertown, was sentenced by U.S. Senior District Court Judge George A. O’Toole Jr. to three years of probation, 500 hours of community service and ordered to pay restitution in the amount of $140,372 in back taxes. In August 2019, Din was convicted by a federal jury of six counts of willful failure to collect and pay over tax.
From 2009 to 2013, Din defrauded the government and avoided paying payroll taxes owed by fried chicken restaurants located in Chelsea, downtown Boston and Jamaica Plain.
Federal law requires employers to withhold payroll taxes and pay the IRS. To avoid paying taxes, repeatedly, Din falsely reported to the IRS the number of employees and wages paid. Din provided the tax preparer for the stores with false information about the restaurants’ payroll, causing the tax preparer to file false tax returns.
United States Andrew E. Lelling; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Jason Molina, Special Agent in Charge of Homeland Security Investigations in Boston; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Boston Police Commissioner William Gross made the announcement today. Assistant U.S. Attorney Scott L. Garland of Lelling’s Criminal Division prosecuted the case.
Billings man sentenced to more than 13 years for Dotty’s Casino armed robberyRead the Press Release
BILLINGS—A Billings man who admitted robbing Dotty’s Casino at gunpoint and demanded the attendant to empty the till was sentenced today to 13 years and six months in prison and five years of supervised release, U.S. Attorney Kurt Alme said.
Joshua Stanley Roberts, 37, pleaded guilty in February to robbery affecting commerce, possession of a firearm in furtherance of a crime of violence and felon in possession of a firearm.
U.S. District Judge Susan Watters presided.
The prosecution said in court records that Roberts robbed Dotty’s Casino in Billings on July 27, 2018 after he entered the business by following another individual who had been buzzed in. Once inside, Roberts pulled out a semi-automatic handgun, pointed it at the casino attendant and demanded the attendant empty the till. Roberts got $516 from the casino.
Later that day, Billings Police officers pulled over a car driven by Roberts’ ex-girlfriend. Roberts was in the back seat with a co-defendant. The officers located a 9mm semi-automatic pistol in the back seat. In November 2008, Roberts was convicted in U.S. District Court in Montana for being a felon in possession of a firearm.
Assistant U.S. Attorney Colin Rubich prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Billings Police Department.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Bellevue, Washington, lab and three executives indicted in kickback schemeRead the Press Release
Seattle – One defendant has pleaded guilty, and three others and a physician- owned testing lab have been indicted following the investigation of kickbacks in connection with laboratory testing services. The grand jury returned indictments on November 6, 2019, against JAE LEE, 48, of Bellevue, RICHARD REID, 50, of Astoria, Oregon, KEVIN PULS, 54, of Bellevue, and Northwest Physicians Laboratory of Bellevue, Washington. Both the company and the individual defendants are scheduled to make their first appearance in U.S. District Court in Seattle on December 5, 2019.
Northwest Physicians Laboratory (NWPL) and its relationship to Molecular Testing Labs (MTL) of Vancouver, Washington, are described in the plea agreement of STEVEN P. VERSCHOOR, 52, of Boise, Idaho, a co-founder of MTL. VERSCHOOR pleaded guilty on October 30, 2019, admitting that he paid kickbacks to NWPL for referring urine tests to be performed at MTL. According to the plea statements, starting in 2014, MTL agreed to pay NWPL as much as $100,000 per month to send patient urine tests to the Vancouver lab. NWPL is physician-owned, and for that reason could not test urine samples for patients covered by government health programs such as Medicare, Medicaid, and TRICARE. In order to conceal the payment of the kickbacks, MTL and NWPL described the fees as being for marketing services; however, VERSCHOOR was not aware of any marketing services being performed. In all, MTL paid NWPL $450,000. In exchange, MTL was able to bill the government more than $2,000,000 for urine testing services.
In December 2018, MTL agreed to pay $1,777,738 to settle allegations that it violated the False Claims Act by paying illegal kickbacks to obtain referrals for government healthcare insurance programs. According to the settlement, between August 2014 and July 2015, the government claimed that MTL made payments to local laboratories in exchange for referrals of Medicare and TRICARE program business, in violation of the Anti-Kickback Statute. Paying remuneration to medical providers or provider-owned laboratories in exchange for referrals encourages providers to order medically unnecessary services. The False Claims Act and the Anti-Kickback Statute function, in part, to discourage such behavior.
The indictment charges NWPL and the three executives with conspiracy to both solicit kickbacks and pay kickbacks. The indictment charges four additional counts of receipt of kickbacks.
Conspiracy to pay kickbacks involving federal healthcare programs is punishable by up to five years in prison. Receipt of kickbacks involving federal healthcare programs is punishable by up to 10 years in prison.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
VERSCHOOR is scheduled to be sentenced by U.S. District Judge James L. Robart on January 21, 2020. VERSCHOOR has agreed to pay $461,752 in restitution. Some of that amount may be paid by the MTL in its settlement with DOJ.
The case is being investigated by the FBI, Health and Human Services Office of Inspector General (HHS-OIG), and the Defense Criminal Investigative Service (DCIS).
The case is being prosecuted by Assistant United States Attorneys Brian Werner and Matthew Diggs.
nwpl_indictment.pdfBath County Woman Sentenced to 12 Months for Social Security FraudRead the Press Release
LEXINGTON, Ky. – A Bath County woman, Della Mae Barnett, 62, was sentenced in federal court Thursday, to 12 months in prison, for committing Social Security fraud.
Barnett pleaded guilty in July 2019, before United States District Judge Karen K. Caldwell. In Barnett’s plea agreement, she admitted that, from September 2006 to February 2016, she knowingly and willfully made false representations to the SSA, indicating that her husband did not live in the same household with her, to avoid his income making her ineligible to receive Supplemental Security Income benefits. Her husband was, in fact, a household member, and his income would have impacted her entitlement to SSI benefits.
Barnett fraudulently received $77,003.00 from the SSA. Barnett also admitted that her associated coverage, under the Kentucky Medicaid Program, was likewise fraudulent. The total amount of inappropriate benefits expended by Kentucky Medicaid was $157,684.78. As part of her sentence, the Court ordered Barnett to repay these amounts in restitution, totaling $234,687.78.
Under federal law, Barnett must serve, at a minimum, 85 percent of her prison sentence. She will then be under the supervision of the United States Probation Office for three years, after being released.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Wayne R. Warren, Resident Agent-in-Charge, SSA Office of the Inspector General, Nashville Office, jointly announced the sentence.
The investigation was directed by the SSA-OIG. The United States was represented by Special Assistant U.S. Attorney James T. Chapman.
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Baltimore Pimp Sentenced to 20 Years in Federal Prison After Being Convicted at Trial on Charges of Sex Trafficking of A Child and Using the Internet to Promote A Prostitution BusinessRead the Press Release
Baltimore, Maryland – U.S. District Judge Thomas E. Johnston today sentenced Ryan Russell Parks, a/k/a Dinero, age 26, of Baltimore, Maryland, to 240 months in federal prison, followed by five years of supervised release, for two counts of sex trafficking of a minor and one count of using the Internet to promote a business enterprise involving prostitution. A federal jury convicted Parks late on July 18, 2019, after a four-day trial. As a result of his conviction, upon his release from prison, Parks will be required to 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; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
“Ryan Parks cruelly preyed on vulnerable girls in order to sell them for sex. Children cannot consent to have sex for money and the sex trafficking of children will not be tolerated in Maryland. Through the Maryland Human Trafficking Task Force, law enforcement is working with victim services providers and victim advocates to rescue human trafficking victims and prosecute traffickers,” said Maryland U.S. Attorney Robert K. Hur.
According to the evidence presented at his trial, Parks trafficked two vulnerable minor victims—a 16-year-old girl (Girl 1) and a 15-year-old girl (Girl 2)—for commercial sex. According to trial testimony, Parks met Girl 1 online. During their communications Parks learned that she was hungry and had no real place to live, and he offered Girl 1 a place to stay. Parks sent a car to pick up Girl 1 and to bring her to a motel in Woodlawn, Maryland, and within a day, he caused advertisements to be posted on a website that marketed commercial sex workers. These advertisements contained photographs and descriptions of Girl 1 and offered Girl 1 for commercial sex acts. Parks stayed with Girl 1 at a motel in Baltimore, along with another woman he was advertising on the Internet for commercial sex. He also had sex with Girl 1 in the motel room. Parks would leave the room for short periods of time, when men would come to the room to have sex with Girl 1, and he would return to the room shortly after the men left the room. Parks paid for additional advertisements on the website offering Girl 1 for commercial sex on August 1 and August 2, 2017. One of Girl 1’s customers returned to the room the next day to rescue her, and he took her to live in a different city with his sister.
The evidence also proved that in November 2017, Parks met Girl 2 online, and he learned that she had run away from her foster home. On November 16, 2017, Parks paid a driver through an application on his cell phone to pick up Girl 2 and bring her to his home. Girl 2, who was 15 years old, told Parks that she was 17 years old, in foster care, and in an unhappy situation. Parks provided Girl 2 with marijuana and had sex with her. He talked to her about making money through prostitution, and he took her to the same motel in Baltimore where Parks had harbored Girl 1. Girl 2 had run away from her foster home without a coat, a purse, or change of clothing. Parks purchased a bra, panties, and condoms for Girl 2. Parks took photographs of Girl 2 and paid for an online advertisement offering Girl 2 for commercial sex using his cell phone. Several of the photos that Parks uploaded to the website were rejected, because they contained nudity and were too explicit. Less revealing photos of Girl 2, wearing the bra and panties purchased by Parks, were accepted and uploaded to the online advertisement.
As he had with Girl 1, Parks then set the prices and time limits for the sex acts to be performed on Girl 2, and he instructed her on the process of checking a man for a wire when he came into the motel room. Parks stayed in the motel room with Girl 2 when other men were not present, but he left the room and stood outside in a stairwell when men arrived to have sex with Girl 2. Parks offered Girl 2 for commercial sex from November 16 through November 20, 2017. During this time, over 300 individuals contacted the phone number placed by Parks on the advertisement, to inquire about commercial sex with Girl 2. On November 21, 2017, Girl 2 contacted her foster care social worker, who dispatched police to the motel. According to trial testimony, Parks reviewed Girl 2’s phone while she was in the shower and saw that she had contacted her social worker. Parks became angry, told her to delete information from her phone and to remove the chip from her phone, and then he left the motel. Girl 2 went to the lobby and turned herself in to police.
While law enforcement was investigating the trafficking of the two minor victims, they discovered evidence regarding the extent of Parks’ prostitution business. Evidence at trial proved that from February 25, 2017, through the date that he was arrested on January 10, 2018, Parks paid over $1,000 for approximately 295 commercial sex advertisements placed on the Internet. Parks advertised approximately 27 different women and girls for commercial sex. Parks also paid over $6,000 for hotel rooms in Baltimore County and Baltimore City during the course of his prostitution enterprise.
Parks remains detained.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from 10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution.
MCETF partners with the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
United States Attorney Robert K. Hur commended the FBI and Maryland State Police for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Christine Duey and Matthew Maddox, who prosecuted the case.
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Aventura Technologies, Inc. and its Senior Management Charged with Fraud, Money Laundering and Illegal Importation of Equipment Manufactured in ChinaRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging surveillance and security equipment company Aventura Technologies, Inc. (Aventura), located in Commack, New York, and seven current and former employees with selling Chinese-made equipment with known cybersecurity vulnerability to government and private customers while falsely representing that the equipment was made in the United States and concealing that the products were manufactured in the People’s Republic of China (PRC). Aventura has generated more than $88 million in sales revenue since November 2010, and the charged scheme has been ongoing since 2006.
In addition to Aventura, the individual defendants charged in the complaint are Jack Cabasso, Aventura’s Managing Director and de facto owner and operator; Frances Cabasso, his wife and Aventura’s purported owner and Chief Executive Officer; senior executives Jonathan Lasker, Christine Lavonne Lazarus and Eduard Matulik; current employee Wayne Marino; and recently retired employee Alan Schwartz.
Four of the individual defendants are also charged with defrauding the U.S. government by falsely claiming that Frances Cabasso was the owner and operator of the company in order to obtain access to valuable government contracts reserved for women-owned businesses when, in fact, Aventura was actually controlled by her husband, Jack Cabasso. The Cabassos are also charged with laundering the monetary proceeds of these fraudulent schemes.
Six of the defendants were arrested this morning and are scheduled to be arraigned this afternoon before United States Magistrate Judge Ramon E. Reyes, Jr. Law enforcement agents executed search warrants at Aventura’s headquarters in Commack, New York, and at the home of Jack and Frances Cabasso in Northport, New York. The government has also seized the Cabassos’ 70-foot luxury yacht, and has frozen approximately $3 million in 12 financial accounts that contain proceeds from the defendants’ unlawful conduct.
Richard P. Donoghue, United States Attorney for the Eastern District of New York; William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Joseph P. Dattoria, Special Agent-in-Charge, U.S. General Services Administration, Office of Inspector General (GSA-OIG); Leigh-Alistair Barzey, Special Agent-in-Charge, Defense Criminal Investigative Service, Northeast Field Office (DCIS); J. Russell George, Treasury Inspector General for Tax Administration (TIGTA); Troy Miller, Director of Field Operations, U.S. Customs and Border Protection, New York Field Office (CBP); Jonathan D. Larsen, Special Agent-in-Charge, Internal Revenue Service, Criminal Investigation, New York (IRS-CI); Jason T. Hein, Special Agent-in-Charge, U.S. Air Force Office of Special Investigations, Office of Procurement Fraud Investigations, Detachment Six (AFOSI); Leo Lamont, Special Agent-in-Charge, Naval Criminal Investigative Service (NCIS); and Teri L. Donaldson, Inspector General, U.S. Department of Energy, Office of Inspector General (DOE-OIG), announced the charges.
“As alleged, the defendants falsely claimed for years that their surveillance and security equipment was manufactured on Long Island, padding their pockets with money from lucrative contracts without regard for the risk to our country’s national security posed by secretly peddling made-in-China electronics with known cyber vulnerabilities,” stated United States Attorney Donoghue. “With today’s arrests, the defendants’ brazen deceptions and fraud schemes have been exposed, and they will face serious consequences for slapping phony ‘Made in the U.S.A.’ labels on products that our armed forces and other sensitive government facilities depended upon.” Mr. Donoghue expressed his appreciation to U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit for their work on the case.
“Greed is at the heart of this scheme, a reprehensible motive when the subjects in this case allegedly put into question the security of men and women who don uniforms each day to protect our nation,” stated FBI Assistant Director-in-Charge Sweeney. “There is no mistaking the cyber vulnerabilities created when this company sold electronic surveillance products made in the PRC, and then using those items in our government agencies and the branches of our armed forces. I cannot stress enough that we will do everything we can to search out and stop any other company willing to cut corners and pocket profits that endanger the lives of Americans, and make this country less safe.”
“The laws in place regulating government contracts ensure both the taxpayer and government receive quality goods and services at competitive prices. In addition, they provide a fair opportunity and level playing field for all businesses seeking government contracts. The General Services Administration’s Office of Inspector General will continue to work closely with our law enforcement partners to aggressively investigate allegations of fraud against the United States Government,” stated GSA-OIG Special Agent-in-Charge Dattoria.
“The arrests and other enforcement operations that occurred today were the direct result of a joint investigative effort,” stated DCIS Special Agent-in-Charge Barzey. “The introduction of counterfeit parts and materials into the U.S. Defense Department’s supply chain poses a significant risk and impacts America’s military readiness and our national security. The DCIS is committed to working with its law enforcement partners and the U.S. Attorney's Office, Eastern District of New York, to ensure that individuals and companies who engage in fraudulent activity, at the expense of the U.S. military, are investigated and prosecuted.”
“TIGTA’s mission includes investigating allegations of waste, fraud or abuse involving the Internal Revenue Service (IRS),” stated TIGTA Inspector General George. “Mr. Cabasso and his co-conspirators secured products from outside of the U.S. while purporting that these products were made in America. They then sold these products to the U.S. Government, including the IRS and other Government agencies. TIGTA is committed to investigating and working with our law enforcement partners to root out this type of fraud from the Government contracting and procurement process. I want to thank U.S. Attorney Donoghue for the steadfast support that he and his talented prosecutors gave to this investigation.”
“U.S. Customs and Border Protection provided the critical link to an ongoing investigation that resulted in the takedown of an elaborate criminal enterprise,” stated CBP Director of Field Operations Miller. “This case serves as a great example of collaborative law enforcement efforts to uncover and dismantle criminal enterprises that seek to defraud the United States government for personal gain while jeopardizing our national defense and causing economic harm to their competitors.”
“In today’s global economy, ‘Made in the USA’ is too sacred of a mark to fraudulently use for one’s self interest,” stated IRS-CI Special Agent-in-Charge Larsen. “IRS-Criminal Investigation works diligently with our law enforcement partners to uncover con artists devising elaborate schemes to become independently wealthy. These allegations have serious national security implications that go beyond shameless attempts at personal enrichment.”
“Product substitution is a serious crime that puts our men and women in uniform at greater risk,” stated NCIS Special Agent-in-Charge Lamont. “Our Sailors, Marines, and other armed services personnel deserve to have equipment that meets the highest standards for safety and performance, which will not fail them when it matters most. Substandard and counterfeit parts simply cannot be depended upon. Investigating product substitution and mitigating risks to the Department of the Navy supply chain is a top priority for the Naval Criminal Investigative Service. NCIS has a cadre of Special Agents trained in all aspects of economic crime, tirelessly fighting fraud in the procurement process.”
“Ensuring the integrity of the US Air Force procurement process and the quality of the products provided to our warfighters is a top investigative priority of the Air Force Office of Special Investigations,” stated AFOSI Special Agent-in-Charge Hein. “Those who seek to conduct business with the Air Force must be candid and truthful. AFOSI will aggressively investigate those who attempt to defraud the Air Force, and will work with our law enforcement partners to identify and prosecute those who would take advantage of the USAF and its interests. The victims are not just our men and women in uniform, but every American taxpayer.”
“The Department of Energy’s Office of Inspector General remains committed to ensuring the integrity and security of the Department’s vendors, especially given the serious nature of the Department’s mission,” stated DOE Inspector General Donaldson. “We take allegations of conspiracy against the U.S. Government very seriously and will aggressively investigate these matters to protect the Department and the American taxpayers. We appreciate the collaborative efforts of the DOJ and our other law enforcement partners.”
The Country of Origin Fraud and Unlawful Importation Scheme
As charged in the criminal complaint and in court documents filed today,[1] for over a decade Aventura lied to its customers, including the U.S. military, the federal government and private customers in the United States and abroad. Under federal government procurement laws and regulations a product’s country of origin can impact a procurement officer’s decision to purchase a product. A product’s country of origin also matters to some private sector customers. In addition, all products imported into the United States must be marked with their country of origin. Over the past decade, Aventura made upwards of $88 million, including over $20 million in federal government contracts, while claiming that it was manufacturing its products at its headquarters in Commack. In fact, Aventura does not manufacture anything in the United States. Instead, since at least 2006, Aventura has been importing products primarily from the PRC, then reselling them as American-made or manufactured in a small number of other countries.
Notably, Aventura imported networked security products from PRC manufacturers with known cybersecurity vulnerabilities, and resold them to U.S. military and other government installations while claiming that they were American-made. Aventura similarly deceived private customers in the United States and abroad who paid a premium for what they believed to be American-made goods. As a result, Aventura not only defrauded its customers, but also exposed them to serious, known cybersecurity risks, and created a channel by which hostile foreign governments could have accessed some of the government’s most sensitive facilities.
For this conduct, Aventura and the seven individual defendants are charged with unlawful importation and conspiracy to commit wire and bank fraud.
In the course of its investigation, the government intercepted and covertly marked numerous shipments from PRC sources to Aventura’s Commack headquarters. In some cases, cameras shipped from the PRC were pre-marked with Aventura’s logo and the phrase “Made in USA,” accompanied by an American flag. In many instances, the items were later resold to government agencies to whom the defendants falsely represented that the products were American-made.
For example, in March 2019 the U.S. Navy ordered from Aventura a $13,500 laser-enhanced night vision camera that was specified as American-made on Aventura’s U.S. General Services Administration (GSA) price list. (In fact, no item on Aventura’s GSA price list is listed as being made in the PRC.) In April 2019, at a shipping facility in Jamaica, Queens, a team led by CBP officers intercepted a shipment from a PRC manufacturer (“PRC Manufacturer-3”) to Aventura that contained a camera matching the Navy’s order and surreptitiously marked it for later identification using a method that would not be apparent to a casual observer.[2] Two weeks later, that same camera was delivered to Naval Submarine Base New London in Groton, Connecticut.
In another instance, in September 2018, the Department of Energy (DOE) ordered approximately $156,000 worth of networked automated turnstiles from Aventura, to be installed at a facility in Tennessee. Aventura’s GSA price list described the turnstiles as American-made. In January 2019, turnstiles matching DOE’s order were intercepted in a shipment from a PRC manufacturer and marked by CBP; one month later, they arrived at the DOE facility in Tennessee. The crates shipped by Aventura to the DOE appeared identical to those that the CBP-led team had inspected, except that the shipping labels from the PRC directing the crates to Aventura had been peeled off, leaving behind visible traces of paper and glue. A special agent with the DOE-OIG placed a call to Lazarus regarding the turnstile shipment in May 2015. During the call, Lazarus falsely stated that the turnstiles were “U.S. made [in] New York.”
As a third example, in 2018, Aventura sold the U.S. Air Force 25 body cameras for use by Air Force security personnel at an Air Force base. Aventura was contractually required to provide goods from a limited set of countries that did not include the PRC. In August 2018, however, an Air Force service member observed Chinese characters on the built-in screen of one of the body cameras. The body camera was sent for analysis to a specialist, who downloaded its firmware and found numerous indications that the camera was manufactured in PRC. The camera contained multiple preloaded images that were apparently designed to display on the built-in screen—including the U.S. Air Force logo, the logo of the PRC Ministry of Public Security and the logo of PRC Manufacturer-1. All three logos had been saved to the camera’s firmware using the same software, on a computer that was set to a time zone in the PRC—indicating that the camera’s manufacturer in the PRC had been aware that the U.S. Air Force was a likely end user of the camera.
The defendants, working with counterparts in the PRC, took extraordinary steps to conceal this scheme. In November 2018, Jack Cabasso exchanged emails with an employee of a PRC manufacturer of surveillance equipment (PRC Manufacturer-2), identifying the need to “hide” the name of PRC Manufacturer-2 from Aventura’s customers. Cabasso wrote that Schwartz was “putting together a list” of steps to be taken. One week later, Cabasso stressed the need to take steps so that “they cannot trace” the product to PRC Manufacturer-2, adding, “The housings are a problem since you publish them on your website but nothing we can do about that.” Cabasso added that “the biggest problem” was that PRC Manufacturer-2’s initials were marked on its circuit boards, and said that he had “lost several potential customers” because of similar practices by another PRC manufacturer (PRC Manufacturer-1). The employee responded that the company’s initials would be removed from all circuit boards shipped to Aventura. Lasker was copied on all of the emails in this sequence.
Similarly, in December 2018, Jack Cabasso and Marino exchanged emails with employees of another PRC-based digital video equipment manufacturer (PRC Manufacturer-4). Marino complained to the employees that “communication from the server to the client contains [PRC Manufacturer-4’s name] visible in clear text. This should be changed.” When one of the employees wrote that this could not be changed, Cabasso responded: “WE CANNOT HAVE CUSTOMERS ABLE TO SEE” PRC Manufacturer-4’s name, later adding, “we also sent a sample to a customer and he found [PRC Manufacturer-4]. . . branding in the [operating system] which is a problem.” Schwartz and Lasker, among others, were included on these communications.
On or about November 23, 2016, Jack Cabasso sent an email to a GSA representative accusing 12 other GSA contractors of selling products to the U.S. Government that were manufactured by a PRC manufacturer of surveillance equipment (PRC Manufacturer-1). Cabasso asserted that this was a “big problem” and “doesn’t get any worse,” because PRC Manufacturer-1 was “actually the Communist Chinese Government and ha[d] ‘significant’ cybersecurity issues aside from” compliance with U.S. laws specifying country-of-origin requirements for government purchases. Cabasso stated that PRC Manufacturer-1 “will acknowledge they manufacture no products outside of China,” and appended an article about the removal of cameras manufactured by PRC Manufacturer-1 from the U.S. Embassy in Afghanistan.
Notably, Aventura was importing security equipment from PRC Manufacturer-1 while Jack Cabasso was complaining to GSA about other contractors’ supposed dealings with the company. For example, bank records show that Aventura wired funds to PRC Manufacturer-1 in the PRC on or about October 31, 2016 and November 29, 2016. And, law enforcement records show that on or about December 13, 2016, Aventura imported from PRC Manufacturer-1 in PRC an approximately 1,800-pound shipment of goods manifested as “digital video.”
In November 2018, Jack Cabasso and Matulik communicated with a potential distributor in Qatar, who asked for assurance that Aventura’s cameras were American made. Cabasso responded: “I believe Ed confirmed that they are made in the Aventura factory here in New York and [anyone] may visit at any time.” Cabasso attached what purported to be a photograph of Aventura’s assembly line, depicting a row of seated individuals in blue lab coats and protective hairnets working at laboratory benches—a photograph that also appears on Aventura’s website. In reality, this photograph first appeared in a trade publication article recounting a reporter’s visit to PRC Manufacturer-1’s manufacturing facility in Hangzhou, PRC, and it depicts PRC Manufacturer-1’s assembly line, not Aventura’s.
The Scheme to Misrepresent Aventura as a Woman-Owned Small Business
Jack and Frances Cabasso, along with Lasker and Lazarus, falsely represented on numerous occasions that Frances Cabasso was the chief executive of Aventura. In fact, the true chief executive officer of Aventura was Jack Cabasso, and Frances Cabasso played a minimal role at the company. This misrepresentation gave Aventura access to government contracts that were set aside for women-owned small businesses, a category that is legally defined to include only those businesses owned by women, where management and daily operations are also controlled by one or more women.
In order to win these set-asides, the defendants represented to the public that Frances Cabasso controlled Aventura. Aventura’s website and its GSA webpage identify Aventura as a woman-owned business, and the defendants repeatedly certified to the GSA and stated to government procurement officers that Aventura is a woman-owned business. For example, on or about January 13, 2014, a GSA employee emailed Frances Cabasso to “verify if Aventura Technologies, Inc. is a Woman-Owned business.” She replied: “Yes we are still a certified women-owned business.” Aventura has won numerous contracts from the federal government on the strength of its status as a woman-owned business.
As Jack Cabasso repeatedly admitted, he was the true chief executive officer of Aventura. In 2017, Jack Cabasso emailed an Air Force procurement officer, stating in part, “I am the Managing Director of Aventura Technologies and the senior most person within the organization.” Similarly, in a 2018 deposition, Cabasso said that his job responsibilities were to “oversee all operations of the company.” By contrast, Frances Cabasso has worked as a bookkeeper at an unrelated accounting firm since 2011 and is rarely present at Aventura’s offices. At times, emails sent to Frances Cabasso’s email address appear to have been auto-forwarded to Jack Cabasso who sometimes signed his responses in Frances’s name. The defendants joked about the fact that Frances Cabasso did not work at Aventura. For example, in an instant message exchange on December 5, 2016 between Jack Cabasso and Lazarus, both defendants discussed moving another employee into “Fran’s” office—the office of the purported owner of the company—putting the name “Fran’s” in quotation marks.
The Money Laundering Scheme
Jack and Frances Cabasso siphoned Aventura’s illegal profits out of the company through a network of shell companies and intermediaries. The funds were then directed to investments owned by the Cabassos or controlled for their benefit.
Between 2016 and 2018, Aventura transferred approximately $2 million to an attorney escrow account belonging to a Long Island, New York-based law firm (Law Firm-1), some of which appears to have been intended to conceal the source of the funds. For example, on or about May 24, 2016, Aventura transferred $450,000 to Law Firm-1. On the same day, Law Firm-1 paid a total of $435,000 towards the purchase of a new home for a relative of Jack and Frances Cabasso.
Similarly, in early 2018, Aventura transferred $675,000 to Law Firm-1. Those funds were loaned out to a separate company for use in purchasing a house. When that company repaid the loan to Law Firm-1, the proceeds, totaling approximately $682,000, were transferred to Frances Cabasso.
In addition to the transactions through Law Firm-1, Aventura has transferred at least $2.75 million to shell companies owned by Frances Cabasso. Those funds were then transferred to a number of accounts, including Frances Cabasso’s personal bank account and the business account of a lawyer retained by Jack Cabasso. Some of these funds were returned to Aventura’s bank accounts, in transactions having no discernible economic purpose.
In addition to these and other transfers, Aventura has made approximately $1 million in payments since 2013 related to the Cabassos’ 70-foot luxury yacht, known as the Tranquilo, which is moored in the gated community where the Cabassos reside. Although Aventura is the purported owner of the Tranquilo, the yacht appears to have no connection with Aventura’s corporate business, and its rental income flows to the Cabassos, not to Aventura.
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The defendants are presumed innocent unless and until proven guilty. If convicted, the defendants each face up to 20 years’ imprisonment on each charge in the complaint.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Ian C. Richardson, Alexander Mindlin, Kayla Bensing and Claire Kedeshian are in charge of the prosecution.
The FBI has established an email hotline for potential victims. If you have information regarding Aventura’s crimes or believe that you may be a victim, please send an email to [email protected]
The Defendants:
AVENTURA TECHNOLOGIES, INC.
Commack, New YorkFRANCES CABASSO
Age: 59
Northport, New YorkJACK CABASSO
Age: 61
Northport, New YorkJONATHAN LASKER
Age: 34
Port Jefferson Station, New YorkCHRISTINE LAVONNE LAZARUS
Age: 45
Shirley, New YorkWAYNE MARINO
Age: 39
Rocky Point, New YorkEDUARD MATULIK
Age: 42
North Massapequa, New YorkALAN SCHWARTZ
Age: 70
Smithtown, New YorkE.D.N.Y. Docket No. 19-MJ-1035
[1] As the introductory phrase signifies, the entirety of the text of the complaint and the description of the complaint set forth herein, constitute only allegations and every fact described should be treated as an allegation.
[2] The numerals used to identify the manufacturers in this press release correspond to the way they are referred to in the criminal complaint.
Arenas Pled Guilty to Preparing False Federal Income Tax Returns for Anchorage Spanish-Speaking Community MembersRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that on Tuesday Jose Luis Arenas, 65, pled guilty to 5 counts of aiding and assisting in the preparation of false federal individual income tax returns with a clientele primarily of Spanish-speaking members of the Anchorage community, charging them $100 to $600 per return.
Arenas had tax preparation training through H&R Block, but since 2012 has never been a registered tax preparer in Anchorage, Alaska. According to the Plea Agreement, between tax years 2013 and 2016, Arenas consistently failed to indicate that he had filed them as a paid, professional preparer. Instead, the returns appeared to be filed individually by the taxpayers. Arenas would obtain undue tax refunds for his clients by inflating certain Schedule A deductions, particularly medical expenses and charitable giving. Oftentimes, Arenas would fabricate medical expenses, unbeknownst to his clients.
“Shady tax return preparers like this defendant not only steal tax money out of the pockets of all honest citizens, he uses his clients to file false returns, putting them at risk as well,” commented U.S. Attorney Bryan Schroder. “We will work closely with our partners at the Internal Revenue Service - Criminal Investigation to protect the honest tax payers in Alaska.”
Arenas faces a maximum sentence of 3 years in federal prison, a fine of up to $250,000, 3 years of supervised release, 5 years of probation, and restitution. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the criminal history, if any, of the defendant.
“Tuesday’s guilty plea of Jose Arenas for preparing false tax returns for his Anchorage clients highlights a common trend among unscrupulous return preparers. They exploit their client’s lack of knowledge or understanding of tax matters for personal gain,” said Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge Justin Campbell. “Furthermore, he thought that by concealing his paid preparer status he would be shielded from criminal prosecution. He was wrong and he will be held accountable for his actions.”
The Internal Revenue Service, Criminal Investigation (IRS-CI) conducted the investigation leading to the charges in this case and is being prosecuted by Assistant U.S. Attorney Kim Sayers-Fay.
Alien Smuggler Arrested in AmsterdamRead the Press Release
ALBANY, NEW YORK – Anselmo Padron Martinez, age 47, a citizen of Mexico residing in Middletown, Virginia, was arrested Tuesday in Amsterdam, New York, during an effort to smuggle six Mexican citizens.
The announcement was made by United States Attorney Grant C. Jaquith and Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
According to the criminal complaints, Amsterdam Police stopped a Virginia-registered vehicle following a traffic infraction at 2:50 a.m. on November 5. Federal agents eventually responded and determined that the six passengers in the vehicle were illegal aliens from Mexico who had secretly entered the United States from Canada near Champlain, New York, mere hours prior to the vehicle stop.
Padron Martinez is charged with transporting aliens unlawfully present in the United States for the purpose of commercial advantage and private financial gain. He appeared before United States Magistrate Judge Daniel J. Stewart and was detained pending a detention hearing scheduled for November 8. Of the smuggled aliens, five were detained and appeared before Judge Stewart today on misdemeanor charges of entry without inspection. The charges in the complaints are merely accusations. The defendants are presumed innocent unless and until proven guilty.
The charges filed against Padron Martinez carry a maximum sentence of 10 years in prison, a fine of up to $250,000, and a post-imprisonment term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
These cases are being investigated by HSI, with assistance from ICE-Enforcement and Removal Operations, and are being prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Alaska Doctor Charged with Wire FraudRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced that DR. ANDREW J. VAN ATTA, age 37, from Wasilla, Alaska, was charged today with wire fraud.
The government filed a one-count indictment that charged VAN ATTA with wire fraud, from January of 2017 through May of 2018. According to the indictment, starting in January of 2017, when VAN ATTA was a medical student, and continuing after he graduated, VAN ATTA used multiple email accounts and PayPal accounts to impersonate numerous other physicians while filling out surveys with a survey company that paid VAN ATTA for surveys that the victim company believed were completed by various other physicians. The company paid VAN ATTA over $114,000 for the surveys completed under the fake names.
U.S. Attorney Strasser reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
If convicted of these charges, VAN ATTA faces up to twenty years in prison, followed by up to three years of supervised release, and a fine of up to $250,000 or twice the gross gain to VAN ATTA or the gross loss to any victims.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation. Assistant United States Attorney Nicholas D. Moses is in charge of the prosecution.
Activity in the United States Attorney's OfficeRead the Press Release
Federal District Court Judge Alan B. Johnson sentenced SERGIO GOMEZ-ARTEAGA, 31, of Mexico on October 31, 2019 for conspiracy to distribute methamphetamine. Gomez-Arteaga was arrested in Evanston, Wyoming. He received fifty-seven months of imprisonment and was ordered to pay a $100.00 fine and restitution in the amount of $400.00. The Wyoming Division of Criminal Investigation investigated this case.
Federal District Court Judge Alan B. Johnson sentenced JANELLE KAY IDDINGS, 44, of Cheyenne, Wyoming on November 5, 2019 for conspiracy to distribute methamphetamine, distribution of methamphetamine, and possession with intent to distribute methamphetamine. Iddings was arrested in Laramie County, Wyoming. She received seventy months of imprisonment, to be followed by forty-eight months of supervised release, and ordered to pay community restitution in the amount of $300.00 and a $300.00 special assessment. The Wyoming Division of Criminal Investigation investigated the case.
Federal District Court Judge Alan B. Johnson sentenced LAMONT DUBOIS STURGIS, 39, of Cheyenne, Wyoming on November 5, 2019 for conspiracy to distribute methamphetamine and carrying a firearm during and in relation to a drug trafficking crime. Sturgis was arrested in Laramie County, Wyoming. He received one hundred thirty months of imprisonment, to be followed by sixty months of supervised release, and ordered to pay community restitution in the amount of $500.00 and a $200.00 special assessment. The Wyoming Division of Criminal Investigation investigated the case.
Federal District Court Judge Alan B. Johnson sentenced ROBERT EUGENE LOGAN, 63, of Cheyenne, Wyoming on November 5, 2019 for possession of child pornography. Logan was arrested in Laramie County, Wyoming. He received one hundred twenty months of imprisonment, to be followed by eighty-four months of supervised release, and ordered to pay a $100.00 special assessment and $3,000.00 to the Child Pornography Victim Assistance Act. The Laramie County Sheriff’s Office and Wyoming Division of Criminal Investigation investigated this case.
200+ Military, JAG, Prosecutors Attend SVI Civil Rights Training at Fort BenningRead the Press Release
COLUMBUS, Ga. — Active duty military, veterans and their families joined with federal government employees in a specialized civil rights training today at Fort Benning, a significant U.S. Army installation located along the Georgia-Alabama border, said Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. The U.S. Attorney’s Office hosted the half-day training, delivered by subject matter experts from the U.S. Department of Justice’s (DOJ) Civil Rights Division, Servicemembers and Veterans Initiative (SVI).
The training focused on legislation protecting servicemembers, veterans and their families, including the Servicemembers Civil Relief Act (SCRA), the Uniformed Services Employment and Reemployment Rights Act (USERRA), the Uniformed Overseas Citizens Absentee Voting Act (UOCAVA) and the Americans with Disabilities Act (ADA).
The training was also given to attorneys and staff from the Ft. Benning Office of the Staff Judge Advocate, along with Assistant United States Attorneys from the U.S. Attorney’s Office for the Northern District of Georgia, the Southern District of Georgia, the Northern District of Alabama and the Middle District of Alabama.
“Our military does not hesitate to defend our citizens, and we are ready and prepared to go to battle protecting our brave service members when their civil rights are violated,” said U.S. Attorney Charlie Peeler. “Protecting the rights of our military and their families is a high priority for our office. In order to effectively do our job, it is important that we educate servicemembers about the laws that protect them and how to report a problem. We also want to make sure that the federal teams supporting our servicemembers can respond quickly to any violations. I want to thank SVI for providing this critical training, and for their dedication to protecting the civil rights of our servicemembers, veterans and their families.”
“Patriots have protected and defended our nation for nearly 250 years. Many of them made the ultimate sacrifice and gave their lives for all of us, others suffered severe injuries, and all made sacrifices for our country,” said Assistant Attorney General for Civil Rights Eric Dreiband, “We owe these valiant Americans our eternal gratitude, and the U.S. Department of Justice will aggressively continue to enforce the federal law protections that Congress enacted to protect servicemembers.”
"As a servicemember and a Legal Assistance attorney working in the Office of the Staff Judge Advocate, I can attest to the many issues that arise concerning servicemembers, veterans and their families. These issues at times involve events that can only be described as life altering. It is absolutely imperative for our clients to be fully informed of the numerous protections that are available based on sacrificial military service to this great nation. I am grateful to have had the opportunity to organize and attend the training event which brought Mr. Peeler and the trainers from the SVI to Fort Benning,” said Elizabeth Paillere, Legal Assistance Attorney, Office of the Staff Judge Advocate, U.S. Army Maneuver Center of Excellence, Fort Benning.
Cases filed on behalf of servicemembers and veterans involve many issues, including unlawful home foreclosures, lease agreements, auto repossessions and job termination due to military service. The Department of Justice’s cases and settlements under the SCRA has resulted in $470 million in monetary relief for over 119,155 servicemembers and veterans who experienced violations of their financial and housing rights. The Department has also filed 106 USERRA lawsuits regarding violations of servicemembers and veterans’ civilian employment rights, and favorably resolved 193 USERRA complaints through consent decrees and private settlements.
SVI coordinates with Department of Justice components, the U.S. Attorney’s Offices and federal agencies to build a comprehensive legal support and protection network focused on serving servicemembers, veterans and their families. The Initiative builds upon this critical enforcement work, as well as the work of other Department components that serve the military community, by sharing information, identifying servicemember and veteran needs and coordinating the distribution of resources. SVI’s mission is to support the Department in its efforts to protect those who protect us all. Additional information on SVI, including recent cases, can be found at www.justice.gov/servicemembers.
Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
119 Illegal Aliens Prosecuted for Stealing Identities of Americans, Falsifying Immigration Documents, Fraudulently Claiming to be U.S. Citizens, Other CrimesRead the Press Release
Jackson, Miss. – U.S. Attorney Mike Hurst announced today that 119 illegal aliens have been prosecuted by the U.S. Attorney’s Office since the execution of multiple federal criminal and administrative search warrants at seven sites across the State of Mississippi on August 7, 2019. The federal indictments charge the defendants with crimes ranging from misusing social security numbers of American citizens, to fraudulently claiming to be a U.S. Citizen, to falsifying immigration documents, to reentering the United States after having previously been deported or removed.
To date, 47 of the 119 indicted illegal aliens have pled guilty, with a number of others indicating their intent to plead guilty. Of those who have already pled guilty, 26 admitted to fraudulently using the Social Security Number of an American citizen, in violation of 42 U.S.C. § 408(a)(7)(B). The other 21 of these illegal aliens have pled guilty to unlawfully reentering the United States after having been previously deported or removed, in violation of 8 U.S.C. § 1326(a). The remaining have been charged with these same crimes, as well as some charged with falsely claiming to be a United States Citizen, in violation of 18 U.S.C. § 911, and making false statements in immigration documents, in violated of 18 U.S.C. § 1546.
"Americans have been directly harmed by the theft of their identities, resulting in citizens not being able to get loans or credit cards, obtain health insurance, and perform other basic activities. Every single one of the 680 aliens arrested in August broke our nation’s laws by coming to our country illegally. Turning a blind eye to their illegal acts would not be fair to our nation, their victims, or the millions of naturalized American citizens who waited years and meticulously followed the process by which to become an American. It is our job in the U.S. Attorney’s Office to enforce our federal laws equitably and fairly, and we have done so and will continue to vigorously do so, protecting all Americans and ensuring the national security and sovereignty of our country is upheld," said U.S. Attorney Hurst.
Wednesday 6 November 2019
Winchester Man Charged with Assaulting Federal Postal Worker and Cocaine PossessionRead the Press Release
BOSTON – A Winchester man was arrested yesterday and charged with assaulting a federal postal worker and cocaine possession.
Raymond Acevedo, 29, was charged with one count of assaulting a federal postal worker and one count of possession with intent to distribute 500 grams or more of cocaine. Acevedo was detained following an initial appearance in federal court in Boston pending a probable cause and detention hearing set for Nov. 7, 2019.
According to charging documents, on Oct. 24, 2019, a U.S. Postal worker attempted to deliver an Express Mail package from Puerto Rico to the addressee in Dorchester. The postal worker was unable to locate the addressee and was returning to his vehicle when another individual, later determined to be Acevedo, approached the postal worker and demanded the package. When the postal worker would not give Acevedo the package, Acevedo assaulted the postal worker, took the package, and a fight ensued. As the postal worker and Acevedo were fighting over the package, police arrived and eventually arrested Acevedo, charging him with robbery and aggravated assault on the postal worker. The postal worker was transferred to a local hospital for the injuries he received during the altercation.
On Oct. 25, 2019, law enforcement officers opened the package pursuant to a federal search warrant and seized approximately 1.390 kilograms of cocaine.
The charge of assaulting a federal postal worker provides for a sentence of up to 20 years in prison and up to three years of supervised release. The charge of distribution of cocaine provides for a minimum mandatory sentence of five years and up to 40 years in prison, four years to a lifetime of supervised release, and a fine of up to $5 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston Field Division; and Boston Police Commissioner William Gross made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney McGregor W. Scott Announces Progress in Making Our Communities Safer Through Project Safe NeighborhoodsRead the Press Release
SACRAMENTO, Calif. — Two years ago, the Department of Justice announced the revitalization and enhancement of Project Safe Neighborhoods (PSN), the centerpiece of the department’s violent crime reduction strategy.
Throughout the past two years, the United States Attorney’s Office has partnered with all levels of law enforcement, local organizations, and members of the community to reduce violent crime and make our neighborhoods safer for everyone by focusing on the most violent offenders. According to FBI’s Uniform Crime Report released in October, the nationwide violent crime rate decreased for the second consecutive year, down 3.9% from 2017.
“The revitalized Project Safe Neighborhoods program is a major success,” said Attorney General William P. Barr. “It packs a powerful punch by combining advanced data with local leadership, further reducing violence in communities across the country and improving overall public safety. U.S. Attorneys continue to focus their enforcement efforts against the most violent criminals and work in partnership with federal, state, local, and tribal police. The Justice Department’s relationships across the board have never been stronger.”
In the Eastern District of California, indictments for firearms-related offenses in 2018 and 2019 are up 31% over the average for the previous 10 years. Approximately 1,600 guns were seized by ATF in 2018 and 2019. According to the FBI, firearms-related homicides fell 15%, and firearms‑related assaults fell 11%.
“Our office stands ready to work with federal, state, local, and tribal law enforcement to target the most violent criminals plaguing counties in our district,” stated U.S. Attorney Scott. “Our focus remains stemming the tide of illegal firearms flowing into our communities and prosecuting those who manufacture, distribute, and possess those weapons. Project Safe Neighborhoods is alive and well in the Eastern District of California.”
“ATF is dedicated to our mission of combating violent crime and protecting the public,” said Special Agent in Charge Ray Roundtree, San Francisco Field Division, ATF. “In the past year, ATF has worked to stand up crime gun intelligence focused groups across Northern California and Nevada. These teams provide data driven intelligence to open investigations on a local, regional and national level. That data is obtained through ATF’s Tracing Center and National Integrated Ballistics Information Network (NIBIN). ATF has been working hand in hand with both prosecutors and our law enforcement partners. These crime gun intelligence focused groups have been successful in reducing violent crime, disrupting the shooting cycle and removing the sources of crime guns. Throughout 2019 ATF has seized over 1,600 guns in the Eastern District. Those are 1,600 crimes guns that are no longer on the street and a treat to the people who live in those communities.”
“The Project Safe Neighborhood initiative is built on the partnerships the FBI has with our region’s local, state, and federal law enforcement agencies,” said FBI Sacramento Special Agent in Charge Sean Ragan. “When we combine forces, we are able to leverage our federal resources, hold criminals accountable for their crimes, and make significant steps in keeping our neighborhoods safe.”
“The U.S. Marshals Service is a key contributor to the PSN initiative, by bringing immediate relief to our communities with the execution of Operation Triple Beam and Operation Washout,” stated Chief Deputy U.S. Marshal Lasha Boyden. “These two enforcement operations are USMS‑led collaborative counter-gang initiative that partners federal, local, and state law enforcement to focus on specific areas impacted by significant gang violence, while targeting the most violent gang members and organizations.”
“Transnational Street gangs are often involved in a myriad of criminal activity, including narcotics and weapons violations, murder, extortion, and human trafficking. These groups represent a serious threat to public safety in any community and are a challenge for law enforcement agencies throughout the United States,” said Tatum King, special agent in charge, HSI San Francisco and Northern California. “HSI and our law enforcement partners in the Eastern District of California continue to send a strong message to violent gang members that we will not tolerate their threats and intimidation to our communities.”
These enforcement actions and partnerships are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
Two South Florida Men Plead Guilty to Conspiracy to Traffic in Credit CardRead the Press Release
Tampa, Florida – Michel Verona Saavedra (20) and Yoandy Del Prado (26), both of Hialeah, have pleaded guilty to conspiracy to traffic in access devices and to possessing device-making equipment. Each faces a maximum penalty of five years in federal prison. A sentencing date has not yet been set.
According to the plea agreements and facts presented during the plea hearing, in the early morning hours of December 6, 2017, Del Prado and Saavedra had credit card skimming devices in their possession when deputies from the Sarasota County Sherriff’s Office stopped their car near a then-closed Sunoco gas station on Bee Ridge Road in Sarasota. The deputies located two skimming devices in the rear of the car, along with a laptop computer. In addition, following Saavedra’s arrest, deputies found five counterfeit credit cards, with altered data information, in his possession. A subsequent investigation revealed that similar skimming devices were hidden inside of gas pumps at three gas stations in the immediate area, including the closed Sunoco station. Evidence of the scheme was also found on the laptop recovered from the car.
This case was investigated by the United States Secret Service and the Sarasota County Sherriff’s Office. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.
Two Plead Guilty to Federal Charges Stemming from Overdose InvestigationRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that MARILYN VEGA, 35, and BEKIM MUCA, 46, both of Waterbury, have pleaded to federal offenses stemming from an investigation of a drug overdose death in Plymouth.
According to court documents and statements made in court, on April 10, 2017, the Plymouth Police Department and emergency personnel responded to a residence after a 24-year-old male had suffered an apparent drug overdose. Responders attempted lifesaving measures on the victim and transported him to the hospital, where he was pronounced deceased. At the scene, officers found white powder, which was determined to be a synthetic fentanyl, on a nightstand in close proximity to the overdose victim.
The Connecticut Office of the Chief Medical Examiner found that the victim’s death was caused by multiple synthetic fentanyls.
Investigators analyzed the victim’s cell phone and identified numerous text messages between the victim and Muca, and between the victim and Vega. The investigation revealed that the victim first purchased purported oxycodone pills from Muca, and then purchased pills from Vega, who was Muca’s source of supply for pills.
The day before his death, the victim drove from Plymouth to Waterbury to purchase narcotics. At least some of the pills the victim purchased were counterfeit and contained synthetic fentanyl.
Vega and Muca were arrested on March 11, 2019. Vega pleaded guilty today in Bridgeport federal court to one count of possession with intent to distribute, and distribution of, oxycodone. Muca pleaded guilty yesterday in Hartford federal court to the same offense.
At sentencing, Vega and Muca face a maximum term of imprisonment of 20 years.
This matter has been investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and the Plymouth, Milord and Southington Police Departments. The case is being prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.
Two Men Sentenced to More Than 22 Years Combined in Federal Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Ronald Hovey, age 66, and Dennis Pacheco, age 30, were sentenced to 275 months combined in federal prison followed by 7 years of supervised release for Aiding and Abetting Possession with Intent to Distribute More Than 500 Grams of a Mixture of Methamphetamine. The Honorable Timothy L. Brooks presided over the sentencing hearings in the United States District Court in Fayetteville.
According to court records, in 2018, the Fourth Judicial District Drug Task Force launched an investigation into Pacheco and Hovey for trafficking methamphetamine in Northwest Arkansas. In 2019, law enforcement received information that Hovey would be meeting Pacheco to pick up several pounds of methamphetamine. Law enforcement initiated surveillance of their vehicles and located them in a parking lot in Winslow, Arkansas, standing outside of Hovey’s vehicle with the trunk open. A search of Hovey’s vehicle revealed approximately 3,055.8 grams of actual methamphetamine and a digital scale. In September 2018, a search of Hovey’s residence also resulted in the seizure of methamphetamine.
Hovey, of Fayetteville, was sentenced today to 188 months in federal prison as a career offender followed by 5 years of supervised release. Pacheco, of Little Rock, was sentenced last month to 87 months in federal prison followed by 2 years of supervised release.
Pacheco and Hovey were indicted by a federal grand jury in February 2019. They entered guilty pleas in July 2019.
This case was investigated by the Fourth Judicial District Drug Task Force. Assistant United States Attorney Sydney Butler prosecuted the case for the United States.
Two Individuals Plead Guilty for Working on Behalf of IranRead the Press Release
Ahmadreza Mohammadi-Doostdar, 39, a dual U.S.-Iranian citizen, and Majid Ghorbani, 60, an Iranian citizen and resident of California, have entered pleas of guilty to charges stemming from their conduct conducting surveillance of and collecting identifying information about American citizens and U.S. nationals who are members of the Iranian dissident group Mujahedin-e Khalq (MEK).
On Oct. 8, 2019, Doostdar entered a guilty plea to one count of acting as an agent of the Government of Iran without notifying the Attorney General, in violation of 18 U.S.C. § 951, and one count of conspiring to violate that statute, in violation of 18 U.S.C. § 371. On November 4, 2019, Ghorbani entered a guilty plea to one count of violating the International Emergency Economic Powers Act, 50 U.S.C. § 1705, and the Iranian Transactions and Sanctions Regulations, 31 C.F.R. Part 560.
“The defendants both have admitted to conducting surveillance and collecting identifying information on behalf of Iran about Americans, and in particular, individuals who were exercising their First Amendment rights to oppose the Iranian government,” said Assistant Attorney General for National Security John C. Demers. “The Department of Justice is committed to holding accountable governments like Iran that would threaten and intimidate Americans who criticize them.”
“The Iranian government thought it could get away with conducting surveillance on individuals in the United States by sending one of its agents here to task a permanent resident with conducting and collecting that surveillance,” said Jessie K. Liu, United States Attorney for the District of Columbia. “This case highlights our efforts to pursue those who threaten national security and disrupt foreign governments that target U.S. persons.”
“This alleged activity demonstrates a continued interest in targeting the United States, as well as potential opposition groups located in the United States,” said Acting Executive Assistant Director Jay Tabb. “The FBI will continue to identify and disrupt those individuals who seek to engage in unlawful activity, on behalf of Iran, on US soil.”
As part of his plea, Doostdar admitted under oath that he traveled to the United States from Iran on three occasions in order to meet with Ghorbani and to convey directions for Ghorbani’s activities on behalf of the Government of Iran. Prior to Doostdar’s first trip to the United States, his handler with the Government of Iran identified Ghorbani by name, showed Doostdar a photograph of Ghorbani, and told him where Ghorbani worked.
During Doostdar’s first trip to the United States in July 2017, Doostdar met Ghorbani at Ghorbani’s workplace. Doostdar admitted that during a subsequent conversation, Ghorbani told Doostdar that he was willing to work for the Government of Iran in the United States.
On Sept. 20, 2017, Ghorbani attended an MEK rally in New York City. The rally consisted of constitutionally protected activity, including U.S. citizens denouncing the Iranian regime. At the rally, Ghorbani photographed rally attendees, including MEK leaders.
During Doostdar’s second trip to the United States as part of the conspiracy, in December 2017, Doostdar met with Ghorbani and collected the rally photographs from Ghorbani. The photographs depicted MEK leaders, and included hand-written notes identifying the individuals and listing their positions in the group. Ghorbani and Doostdar also discussed Ghorbani’s planned travel to Iran in March 2018, and Ghorbani offered to provide an in-person briefing on rally attendees during this trip. Under oath, Ghorbani admitted to attending the September 2017 MEK rally and to photographing and gathering information on rally attendees to provide to Doostdar and ultimately to individuals in Iran.
In December 2017, Doostdar departed the United States for Iran with the photographs and the handwritten notes provided by Ghorbani. Doostdar paid Ghorbani $2,000 for his work, which Doostdar admitted had been provided by Doostdar’s Government of Iran handler.
In May 2018, Ghorbani traveled to another MEK rally in Washington, D.C., where he again collected information on participants critical of the Iranian regime. Following that rally, Doostdar admitted that he and Ghorbani spoke by telephone and discussed the methods that Ghorbani could use to provide information collected at that rally to Doostdar in Iran.
Doostdar further admitted that during his travel to the United States to task Ghorbani with collecting information on U.S. persons on behalf of the Iranian regime, he communicated with his Government of Iran handler through another co-conspirator. Doostdar’s handler relayed instructions and encouragement, and answered Doostdar’s questions that came up during his mission to the United States.
Doostdar is scheduled to be sentenced on Dec. 17, 2019, at 2:00 p.m., before the Honorable Paul L. Friedman of the U.S. District Court for the District of Columbia. Ghorbani is scheduled to be sentenced before Judge Friedman on Jan. 15, 2020, at 10:00 a.m.
The maximum penalty for conspiracy is five years; the maximum penalty for acting as an agent of a foreign power is 10 years; and the maximum penalty for violating the International Emergency Economic Powers Act is 20 years. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. Each defendant’s sentence will be determined by the court based on the advisory U.S. Sentencing Guidelines and other statutory factors.
The investigation into this matter was conducted by the FBI’s Washington Field Office and Los Angeles Field Office. The case is being prosecuted by the National Security Section of the U.S. Attorney’s Office for the District of Columbia and the Counterintelligence and Export Control Section of the National Security Division of the Department of Justice.
Two Former Twitter Employees and A Saudi National Charged in Plot to Provide Saudi Government with Information About UsersRead the Press Release
SAN FRANCISCO –Ali Alzabarah, Ahmad Abouammo, and Ahmed Almutairi, a/k/a Ahmed Aljbreen, were charged for their respective roles in fraudulently accessing private information in the accounts of certain Twitter users and providing that information to officials of the Kingdom of Saudi Arabia, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. 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.
“The criminal complaint unsealed today alleges that Saudi agents mined Twitter's internal systems for personal information about known Saudi critics and thousands of other Twitter users,” said U.S. Attorney Anderson. “U.S. law protects U.S. companies from such an unlawful foreign intrusion. We will not allow U.S. companies or U.S. technology to become tools of foreign repression in violation of U.S. law.”
“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, including their email addresses, IP addresses, and dates of birth, of persons some of whom published posts deemed by the Saudi Royal Family to be critical of the regime. This information could have been used to identify and locate the Twitter users who published these posts. The complaint alleges that Alzabarah and Abouammo were compensated for their illicit conduct, including the provision of a luxury watch, cash, and other benefits in exchange for their agreement to violate Twitter policies by accessing and providing the information. 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. 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 November 5, 2019, and is making his initial federal court appearance in Seattle at 2:00 p.m., this afternoon. 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 obstruction of justice, 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 Colombian Nationals Charged with Cocaine TraffickingRead the Press Release
BOSTON – Two Colombian nationals were indicted today in federal court in Boston on drug trafficking charges.
Diego Sanchez, 34, and Ricardo Lopera Arteaga, 58, were each indicted on one count of conspiracy to distribute, and possession with intent to distribute, 500 grams or more of cocaine, and one count of possession with intent to distribute 500 grams or more of cocaine. Sanchez was also charged with two additional counts of distribution and possession with intent to distribute cocaine. The defendants were previously charged by complaint and arrested on Oct. 9, 2019. They are both currently in federal custody.
According to court documents, Sanchez engaged in two sales of cocaine to a cooperating witness on Sept. 10 and 27, 2019 in East Boston. Sanchez and Lopera-Arteaga alsoconspired together to sell one kilogram of cocaine to that same cooperating witness. On Oct. 9, 2019, law enforcement agents observed both men meet and walk together towards a spot arranged for the drug transaction. Agents arrested both men a short time later and seized one kilogram of cocaine from Lopera-Arteaga.
The charges of conspiracy to distribute and possession with intent to distribute more than 500 grams of cocaine provides fora mandatory minimum sentence of five years and up to 40 years in prison, at least four years of supervised release and a fine of up to $5 million. The charges of distribution of cocaine provide for a sentence of up to 20 years in prison, at least three years of supervised release, and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. The case was investigated by the Organized Crime and Drug Enforcement Task Force (OCDETF). Assistant U.S. Attorney Stephen W. Hassink of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Three Individuals, Including A Former Texas Mayor, CEO and Owner, Found Guilty in a $154 Million Money Laundering and Health Care Fraud SchemeRead the Press Release
A federal jury found three individuals associated with dozens of hospice and home health companies guilty today for their roles in a $154 million health care fraud scheme, one of which was a mayor in Texas at the time.
After a three-week trial, the jury found Rodney Mesquias, 47, of San Antonio, Texas, Henry McInnis, 47, of Harlingen, Texas, and Francisco Pena, 82, of Laredo, Texas, guilty of one count of conspiracy to commit health care fraud and one count of conspiracy to commit money laundering. In addition, Mesquias and McInnis were found guilty of six counts of health care fraud and one count of conspiracy to obstruct justice. Pena was also convicted of one count of health care fraud, obstruction of health care investigations and one count of false statements, while Mesquias and Pena were each convicted of one count of conspiracy to pay and receive kickbacks.
U.S. District Judge Rolando Olvera presided over the trial and set sentencing for June 17, 2020.
“Rodney Mesquias and his co-conspirators preyed on the most vulnerable population – those in need of hospice and home health care– to line their pockets with millions of dollars and engage in lavish spending,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “I thank our law enforcement partners for their hard work and dedication to bringing these health care fraudsters to justice. We look forward to continuing our partnership as we expand the Strike Force into the Rio Grande Valley.”
“It’s disgusting how these three made millions by lying about and manipulating people’s end of life care,” said U.S. Attorney Ryan K. Patrick of the Southern District of Texas. “These men won’t have season tickets or nice cars where they are headed.”
“Hospices should provide meaningful quality of life care for patients in the final stage of their disease. Rather than help these vulnerable patients, Mesquias and McInnis operating as the Merida Health Care Group along with Dr. Francisco Pena, exploited them and their families to steal millions of dollars from the American taxpayer,” said Special Agent in Charge Christopher Combs of the FBI’s San Antonio Field Office. “The FBI is committed to aggressively investigating and bringing to justice those who undermine our health care system.”
“The decision to provide hospice services should be based on a patient’s medical condition and desire for palliative care, not the selfish motives of hospice executives intending to line their own pockets,” said Special Agent in Charge C.J. Porter for the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Region. “Our agency will continue to protect Medicare patients and Medicare itself from such unscrupulous individuals.”
According to evidence presented at trial, from 2009 to 2018, Mesquias, McInnis and Pena engaged in a scheme that involved over $150 million in false and fraudulent claims for hospice and other health care services. Mesquias owned and controlled the Merida Group, a large health care company that operated dozens of locations throughout Texas. McInnis was CEO. Pena, a licensed physician, was a medical director for the Merida Group and was at the time the mayor of Rio Bravo, Texas. According to evidence presented at trial, the Merida Group enrolled patients with long-term incurable diseases, such as Alzheimer’s and dementia, at group homes, nursing homes, and in housing projects by falsely telling them that they had less than six months to live, and sent chaplains to lie to the patients and discuss last rites and preparation for their imminent death. In fact, the patients were not suffering from a terminal illness that was expected to result in their death within six months, as is required to qualify for hospice services, and were in some instances walking, driving, working and even coaching athletic sporting events, the evidence at trial showed. However, the defendants kept the patients on services for multiple years in order to increase revenue. Mesquias also fired employees who refused to go along with the fraud, and directed them not to “[expletive] with his patients, or [expletive] with his money” by discharging patients from services, the evidence at trial showed. Pena told a cooperating witness that, with respect to hospice patients, “the way you make money is by keeping them alive as long as possible,” according to trial testimony.
The evidence further established that Pena gave a false statement to the FBI and directed others to obstruct the FBI’s investigation by covering up Pena’s involvement in accepting kickbacks for hospice patients from his mayoral office at Rio Bravo City Hall and elsewhere. The evidence also established that Mesquias and McInnis obstructed justice by causing the creation of false and fictitious medical records and produced them to a federal grand jury in order to avoid Indictment. The records added false diagnostic information making it appear that patients were dying when, in fact, they were not.
According to evidence presented at trial, the scheme involved laundering the proceeds of the fraud by, for example, placing a company in the name of the girlfriend of a co-conspirator physician to conceal the distribution of hundreds of thousands of dollars in illegal kickbacks that were provided to the physician in exchange for home health and hospice referrals. Mesquias and McInnis used proceeds derived from the scheme to purchase expensive vehicles such as a Porsche, expensive jewelry, luxury clothing from high-end retailers such as Louis Vuitton, exclusive real estate, season tickets for premium seating to see the San Antonio Spurs and a security detail and bottle service at high end Las Vegas nightclubs such as Hakkasan and Omnia, the evidence showed. Mesquias and McInnis treated physicians to lavish parties at these elite nightclubs, plying them with tens of thousands of dollars in alcohol and other perks in exchange for medically unnecessary patient referrals.
Mesquias caused kickbacks and bribes to be paid to medical directors, including Pena, for the Merida Group’s affiliated entities in exchange for certifying that patients qualified for services when, in fact, they did not, and for referring patients for such services, the evidence showed.
HHS-OIG’s McAllen Field Office; the FBI’s San Antonio Field Office, including the Laredo and McAllen Resident Agency Offices; and the Texas Health and Human Services Commission investigated the case with the assistance of the Texas Attorney General’s Medicaid Fraud Control Unit. Trial Attorney Kevin Lowell and Assistant Chief Jacob Foster of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Andrew Swartz of the Southern District of Texas are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Southwick Man Pleads Guilty to Sending Threatening Letters and White Powder to Federal Agencies in SpringfieldRead the Press Release
BOSTON – A Southwick man pleaded guilty today to sending two packages, containing white powder, to federal agencies in Springfield.
Kevin A. Johnson, 47, pleaded guilty to two counts of conveying false information and hoaxes. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Feb. 6, 2020. Johnson was charged by criminal complaint and arrested on Nov. 30, 2018.
Between July and November 2018, FBI’s Springfield Office and the Springfield Social Security Administration Office (SSA Springfield), collectively received three packages containing either threatening communications and/or suspicious substances. The Springfield Branch Office of the United States Attorney’s Office for the District of Massachusetts received a letter from an individual claiming responsibility for sending the packages. All of the packages contained a piece of white-lined paper with a hand-drawn logo that appeared to combine the “anarchist A” symbol (the capital letter “A” surrounded by the letter “O”) and the symbol for ISIS, a foreign terrorist organization. Two of the packages contained suspicious white powder.
On July 23, 2018, security cameras at the FBI Springfield Office captured an individual throwing a manila envelope at the front door. The package contained a handwritten note saying: “Death to TRUMP.”
On Oct. 23, 2018, SSA Springfield received a package containing white powder and a handwritten letter stating, among other things: “FOR ALLAH YOU DIE, ATHENA KNOWS YOUR LIES, DEATH TO YOU TRAITORS, AND THE FU----- FBI.”
On Oct. 24, 2018, the FBI Springfield Office received a package through the mail addressed to “AGENT UNCLE HAM.” The package contained white powder and a handwritten note stating: “FOR ALLAH YOU DIE, ATHENA KNOWS YOUR LIES, DEATH TO THE N.O.R.A.D SPIES, AND THE FBI.” The Massachusetts State Police Laboratory later found the white powder in the packages to contain no hazardous materials.
The charges of false information and hoaxes provide for a sentence of up to five years in prison, one year of supervised release, and a fine of up to $250,000. The charges of mailing threatening communications provide for a sentence of up to 10 years in prison, three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; Stephen A. Marks, Special agent in Charge of the U.S. Secret Service, Boston Field Division; and Southwick Police Chief Kevin A. Bishop, made the announcement today. Assistance was provided by the Western Massachusetts Joint Terrorism Task Force, Hampden County Sheriff’s Department, and Holyoke Police Department. Assistant U.S. Attorney Deepika Bains Shukla of Lelling’s Springfield Branch Office is prosecuting the case.
South Texas trucker on his way to prison for trafficking cocaineRead the Press Release
CORPUS CHRISTI, Texas – A 37-year-old Alton resident has been ordered to federal prison following his conviction for conspiring to smuggle nearly 20 kilograms of cocaine, announced U.S. Attorney Ryan K. Patrick.
Eddy Garcia-Abreu pleaded guilty July 30.
Today, U.S. District Judge Nelva Gonzales Ramos handed Garcia-Abreu a 120-month sentence to be immediately followed by five years of supervised release. In handing down the sentence, the court noted that at the time of the offense, Garcia-Abreu was still on supervised release from a prior alien smuggling conviction.
On May 19, authorities stopped Garcia-Abreu for a routine safety inspection. He immediately became nervous as they examined the tractor-trailer he was driving. They soon discovered a modification to the king pin area where the trailer was attached to the tractor and immediately called a K-9. It alerted to the vehicle. Law enforcement unhitched the trailer and found 20 bundles inside a hidden compartment containing 19.8 kilograms of cocaine.
The narcotics have an estimated street value of $500,000.
Garcia-Abreu has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with assistance from Texas Department of Public Safety. Assistant U.S. Attorney Joel Dunn prosecuted the case.
South Carolina Man Sentenced to 10 Years in Prison for Forcing Man with Intellectual Disability to Work at RestaurantRead the Press Release
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.
Somerset County Man Charged with Conspiracy to Distribute over 16 Kilograms of Heroin and Obstructing Federal Law Enforcement OfficersRead the Press Release
NEWARK, N.J. – A Somerset County, New Jersey, man is expected to appear in court today on an outstanding warrant charging him with narcotics offenses and fleeing from law enforcement, U.S. Attorney Craig Carpenito announced.
William T. Bouza, 45, of Watchung, New Jersey, was arrested on Nov. 5, 2019, on a complaint charging him with conspiracy to distribute over one kilogram of heroin and obstructing and impeding federal law enforcement officers. Bouza is scheduled to appear this afternoon before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.
According to documents filed in this case and statements made in court:
In February 2019, Bouza arranged for a vehicle that was equipped with a secret compartment, or “trap,” containing over 16 kilograms of heroin, to be shipped from California to Union County, New Jersey. Law enforcement officers intercepted the vehicle, seized the narcotics, and arranged for a controlled delivery. Law enforcement officers observed Bouza enter the area, but he departed prior to taking possession of the vehicle. Bouza’s narcotics-related activities continued over the following months.
In October 2019, law enforcement officers determined that Bouza was storing and processing narcotics for street-level distribution at multiple locations in Essex County, New Jersey. Officers approached Bouza, who fled in a motor vehicle and attempted to ram a law enforcement vehicle in an effort to elude law enforcement. Law enforcement officers subsequently discovered over 1,000 packages, or “bricks,” of heroin, each containing approximately 50 individual doses, in one of Bouza’s stash houses. They also seized over $400,000 in cash from one of Bouza’s other stash houses.
The conspiracy to distribute heroin count carries a maximum penalty of life in prison, a mandatory minimum term of 10 years in prison and a $10 million fine. The obstructing and impeding federal law enforcement officers charge carries a maximum penalty of eight years imprisonment and a $250,000 fine.
U.S. Attorney Carpenito credited law enforcement officers with the U.S. Department of Homeland Security – Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael, the N.J. State Police, under the direction of Col. Patrick J. Callahan, and other law enforcement agencies of the Opioids Task Force with the investigation leading to the charges.
The government is represented by Special Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Office Narcotics/OCDETF Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Somerset County Man Arrested on Child Pornography ChargesRead the Press Release
NEWARK, N.J. – A Somerset County, New Jersey, man was charged today with allegedly distributing and possessing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
John Schulenburg, 65, of Basking Ridge, New Jersey, is charged by complaint with one count of distribution of child pornography and one count of possession of child pornography. He appeared today before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.
According to documents filed in this case and statements made in court:
In July 2019, an undercover law enforcement officer conducted an online session using a publicly available peer-to-peer (P2P) program, which allows internet users to trade digital files. During this session, a user shared multiple files of featuring images of child sexual abuse from an internet address traced to Schulenburg’s residence.
On Nov. 6, 2019, law enforcement lawfully obtained a computer from Schulenburg’s residence that contained hundreds of images and videos of child pornography, including images of prepubescent children being sexually abused.
The count of distribution of child pornography carries a mandatory minimum penalty of 15 years in prison, a maximum penalty of 40 years in prison, and fine of $250,000. The count of possession of child pornography carries a mandatory minimum penalty of 10 years in prison, a maximum penalty of 20 years in prison, and fine of $250,000.
U.S. Attorney Craig Carpenito credited special agents with the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Vijay Dewan of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Sisseton Man Sentenced to 120 Months in Federal Prison for Abusive Sexual ContactRead the Press Release
United States Attorney Ron Parsons announced that a Sisseton, South Dakota, man convicted of abusive sexual contact was sentenced on November 5, 2019, by U.S. District Judge Charles B. Kornmann.
Storm Gaylord Blue, age 25, was sentenced to 120 months in federal prison, to be followed by 20 years of supervised release. He was also ordered to pay $100 to the Federal Crime Victims Fund.
According to court documents, between on or about October 9 and 10, 2017, in Roberts County, Blue forcefully engaged in and attempted to engage in sexual contact with a juvenile victim. Blue had the intent to abuse, humiliate, harass, and degrade the victim and engaged in such sexual contact to arouse and gratify his sexual desires.
The investigation was conducted by the Federal Bureau of Investigation and the Sisseton-Wahpeton Oyate Law Enforcement. Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.
Blue was remanded to the custody of the U.S. Marshals Service.
Shooters of Columbus Scammers, Two with Prior Felony Convictions, Sentenced in Online Gun Purchase SchemeRead the Press Release
COLUMBUS, Ga. —The defendants involved in an online illegal gun purchase scheme targeting a Columbus firearms store have been sentenced for their crimes, said Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. U.S. District Judge Clay Land handed down the sentences on November 5, 2019. Keith Jones, 43, of Columbus, was sentenced to 75 months in prison, consecutive to any pending state revocation, three years of supervised release and $2890 restitution, after pleading guilty to one count of conspiracy to make false statements and one count of aggravated identity fraud. Bruce Kennebrew, 31, of Columbus, was sentenced to 63 months in prison, consecutive to any state sentence, three years of supervised release and $2890 restitution, after pleading guilty to possession of a firearm by a convicted felon. Demarcus Dixon, 24, of Columbus, was sentenced to ten months in prison, three years of supervised release and $2890 restitution, joint and severally with the other defendants, after pleading guilty to conspiracy to make false statements. There is no parole in the federal system.
The three defendants admitted they were involved in a scheme to obtain firearms illegally at Shooters of Columbus in which weapons were purchased online using stolen credit card and personal information. Mr. Jones obtained the stolen information and made the purchases online; Mr. Kennebrew knowingly provided the transportation necessary to accept delivery of the firearms; Mr. Dixon knowingly was used to make the illegal purchases because he did not have a criminal record and could lawfully obtain the firearms, which were purchased under his name. Two pistols and a rifle were purchased by Mr. Jones online between April 1, 2017 and April 3, 2017. One of the identity theft victims called Shooters of Columbus on April 3, 2017 to question unauthorized transactions made on a credit card at the exact moment Mr. Dixon was inside the store to pick up another illegally obtained firearm purchased by Mr. Jones online. Mr. Dixon was detained. Mr. Kennebrew was driving Mr. Dixon’s car at the time of the arrest.
Mr. Jones has a lengthy criminal history, with three prior felony convictions for financial identity fraud (Fayette County Superior Court), theft by taking (Rockdale County Superior Court) and theft by conversion (Clayton County Superior Court). Mr. Kennebrew has at least two prior criminal convictions for theft by receiving stolen property, as well as convictions for possession of a firearm by a convicted felon (Harris County Superior Court) and possession of MDMA (Muscogee County Superior Court).
“It is illegal for convicted felons to have firearms. Removing guns from the hands of convicted felons is a priority of our office, and part of a common sense strategy to decrease violent crime in Columbus and across the Middle District of Georgia,” said U.S. Attorney Charlie Peeler. “I want to thank the investigators with the Columbus Police Department and the ATF for their good work in this case.”
This case was prosecuted as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Columbus Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant U.S. Attorney Melvin Hyde prosecuted the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Serial Bank Robber Sentenced to 10 Years’ ImprisonmentRead the Press Release
Tampa, Florida – U.S. District Judge James S. Moody today sentenced Myron William Ernst (61, Orlando) to 10 years in federal prison for bank robbery.
Ernst had pleaded guilty on May 6, 2019.
According to
court documents , between October and November 2018, Ernst committed seven bank robberies and two attempted bank robberies in Florida and Alabama. During each incident, Ernst presented bank employees with a threatening note demanding money.“This serial bank robber was brought to justice by the strong, investigative efforts of the FBI’s Safe Streets Task Force. Crimes like this get solved because of the ongoing cooperation and communication with our federal, state, and local law enforcement partners,” said Special Agent in Charge of the FBI Tampa Division, Michael F. McPherson.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Callan L. Albritton.
Senator Abel Nazario Quiñones Indicted and Arrested for Bribery Concerning Programs Receiving Federal FundsRead the Press Release
SAN JUAN, P.R. – Today, Senator Abel Nazario-Quiñones and seven other defendants were arrested and charged in a one-count indictment alleging theft or bribery concerning programs receiving federal funds, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The FBI is in charge of the investigation with the collaboration of the Puerto Rico Comptroller’s Office, and the U.S. Department of Labor (DOL) Office of Inspector General (OIG).
Defendant Abel Nazario-Quiñones was first elected Mayor of Yauco, a municipality in Southwest Puerto Rico, in 2000, and continued to be the mayor until December of 2016. The other defendants are: Edwin Torres-Gutiérrez, Special Assistant to the Mayor; Claribel Rodríguez-Canchani, Director of Human Resources for the Municipality; Humberto Pagán-Sánchez, Kelvin Ortiz-Vegarra, Ramón Martes-Negrón, Juan Rosario-Núñez, and Eric Rondón-Rodríguez, who were all irregular employees of the Municipality under Mayor Nazario-Quiñones.
In August 2016, during a routine audit of the Municipality’s records, the PR Comptroller’s Office discovered that there were irregular employees paid by the Municipality of Yauco who either never showed up for work, or showed up sporadically. During the years 2014 until 2016, the defendants conspired and agreed with each other to knowingly embezzle, steal, obtain by fraud, or otherwise without authority convert to the use of any person other than the rightful owner, or intentionally misapply, property valued at more than $5,000.00 that was owned by, or under the care and custody of the Municipality of Yauco. All in violation of Title 18, United States Code, Sections 371 and 666(a)(1)(A).
The purpose of the conspiracy was for defendant Abel Nazario-Quiñones, with the assistance of defendants Edwin Torres-Gutiérrez and Claribel Rodríguez-Canchani, to pay defendants Humberto Pagán-Sánchez, Kelvin Ortiz-Vegarra, Ramón Martes-Negrón, Juan Rosario-Núñez, and Eric Rondón-Rodríguez from Municipal funds to work on the senatorial campaign of defendant Nazario-Quiñones. A further purpose was for the irregular employees to provide assistance to the campaigns of other party politicians whose support Nazario-Quiñones would need to win the senatorial election and for a subsequent bid to become President of the Senate.
According to the indictment, defendant Nazario-Quiñones signed numerous irregular employment contracts for defendants Pagán-Sánchez, Ortiz-Vegarra, Martes-Negrón, Rosario-Núñez, and Rondón-Rodríguez. The listed justification in each contract was “Necesidad de Servicio” (“Need for Service”). The listed office in each contract was “Oficina del Alcalde” (“Office of the Mayor”). The listed immediate supervisor in each contract was defendant Torres-Gutiérrez, who instructed these irregular employees to report to the Municipality either once a week or once a month. After learning that the municipality was under investigation, Torres-Gutiérrez instructed the employees to report to the Municipality either two times a week or two to three times a month, and then sent them to different offices within the Municipality.
Defendants Pagán-Sánchez, Ortiz-Vegarra, Martes-Negrón, Rosario-Núñez, and Rondón-Rodríguez reported to the Municipality to collect their paychecks and attend meetings in the Annex building with defendants Nazario-Quiñones and Torres-Gutiérrez to discuss defendant Nazario-Quiñones’ campaign. These five irregular employees sporadically completed time and attendance records, and when they did, Torres-Gutiérrez instructed them to simply sign them and leave the hours worked portion blank.
Defendant Abel Nazario-Quiñones ordered defendants Torres-Gutiérrez and Rodríguez-Canchani to direct employees of the Department of Human Resources, either verbally or in writing, to process payroll for the five irregular employees based on false or no documentation to support the payment of wages. Rodríguez-Canchani ordered at least one employee of the Human Resources Department to assist her in creating false time and attendance records and then manipulated the falsely created time and attendance sheets in such a way as to make them appear old.
“Together with our law enforcement partners, our office will continue to aggressively pursue corrupt individuals in the government who defraud their constituents,” said U.S. Attorney W. Stephen Muldrow. “This prosecution serves as a warning to other public officials involved in these types of schemes that they will be punished, and as a promise to taxpayers that such violations of the public trust will not be tolerated.”
“The FBI thanks it’s partners at Office of the Comptroller of Puerto Rico (OCPR) whose diligence is directly responsible for the discovery of this scheme, as well as DOL, the IG and the USAO for their never ending pursuit of justice. As always, we encourage the public to come forth with any kind of information related to these and any other federal crimes. Anonymous tips can be provided at Tips.FBI.gov and 787-754-6000,” said Douglas Leff, Special Agent in Charge, Federal Bureau of Investigation.
“The U.S. Department of Labor’s Office of Inspector General investigates allegations of serious misappropriation of federal funds. We would like to thank the United States Attorney’s Office for the District of Puerto Rico, Puerto Rico’s Comptroller’s Office, and the U.S. Department of Education and Social Security Administration’s Offices of Inspector General for their support and assistance in this investigation,” said Michael C. Mikulka, Special Agent in Charge, New York Region, U.S. Department of Labor Office of Inspector General.
“Once more we see the results of the coordinated efforts between federal agencies and the Office of the Comptroller of Puerto Rico. To the People of Puerto Rico, we want to let them know that they have the certainty and assurance that the Comptroller’s Office remains ever vigilant in the proper use of government property and public funds. We will continue to collaborate with the different supervisory entities in the fight against corruption,” said the Comptroller of Puerto Rico, Yesmín M. Valdivieso.
The case is being prosecuted by Assistant United States Attorney Scott Anderson. The case was investigated by the Puerto Rico Comptroller’s Office, the U.S. Department of Labor (DOL) Office of Inspector General (OIG), and the FBI. The defendants are facing a maximum term of imprisonment of 10 years, and a fine not to exceed $250,000.
An indictment is only an accusation and not evidence of guilt. The defendants are presumed innocent until proven guilty beyond a reasonable doubt.
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Rockland County Man Charged with Running Multimillion-Dollar Ponzi and Embezzlement SchemesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Peter C. Fitzhugh, the Special Agent-in-Charge of the New York Field Office of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and Philip R. Bartlett, Inspector-in-Charge of the New York Field Division of the United States Postal Inspection Service (“USPIS”), announced today the unsealing of an Indictment in Manhattan federal court charging RULESS PIERRE with securities fraud, wire fraud, and structuring charges. The Indictment alleges that PIERRE engaged in two separate fraud schemes. In the first scheme, PIERRE, as the owner of his own consulting firm, R. Pierre Consulting Group LLC (“RPCG”), solicited money from investors by falsely promising them that he would earn a 20% return on their initial investment every 60 days through stock trading. In truth and in fact, PIERRE lost most of the money he traded on behalf of his investors, while falsely reporting to investors that their funds were growing as promised. Also contrary to his representations, PIERRE secretly used investor funds to purchase luxury vehicles and even a fast food franchise for himself. He also used funds from new investors to make payments to other investors to avoid his scheme being detected. Through his lies, PIERRE obtained over $2 million from over 100 investors. In the second scheme, PIERRE defrauded his former employers, two hotels, by regularly embezzling funds out of bank accounts belonging to those hotels and then depositing those funds through structured transactions, into bank accounts PIERRE controlled. In total, PIERRE stole over $400,000 from the hotels. PIERRE was arrested yesterday in Nanuet, New York, and will be presented this afternoon before Chief Magistrate Judge Gabriel W. Gorenstein in Manhattan federal court.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, Ruless Pierre engaged in two separate schemes. In one scheme, Pierre allegedly promised an improbable 20% return on investors’ money, every 60 days, through stock trading. In reality, Pierre’s stock trading consistently generated losses for investors, and Pierre secretly used investors’ funds for his own personal use, including the purchase of luxury cars and even a fast food franchise. In another scheme, Pierre simply stole money from his former employers, brazenly moving money from their bank accounts to his personal bank accounts. Thanks to the outstanding efforts of our law enforcement partners, Pierre’s schemes have come to an end, and he now faces serious time in federal prison.”
Special Agent-in-Charge Fitzhugh said: “It is alleged Pierre perpetrated a securities fraud and embezzlement scheme that swindled investors out of millions of dollars and misappropriated even more from his employers’ business. He then flashed his illicit gains by buying high-end luxury vehicles and his own fast food franchise. Pierre’s deceptive business practices left more than a hundred victims in its wake, but HSI and its law enforcement partners have put an end to his criminal acts, leaving him to face the consequences for his actions.”
Inspector-in-Charge Bartlett said: “Mr. Pierre used his ties to the Haitian community, his trusted reputation in that community, and convincing pitch to target and cheat hundreds of victims in an illegal Investment Ponzi scheme. Postal Inspectors remind consumers if an investment promises unusually high returns, it’s likely bogus. Don’t let greed override common sense.”
As alleged in the Indictment unsealed today in Manhattan federal court:[1]
The Investment Fraud Scheme
From at least November 2016 through October 2019, PIERRE solicited money from investors of RPCG by falsely promising them that he would earn a 20% return on their initial investment every 60 days through stock trading. The investments were memorialized in documents known as “Investment Promissory Notes.” These investment contracts generally promised that the investor would be paid 20% interest every 60 days and that the investor could withdraw all funds from the investment with 30 days’ notice. Based on these documents and the false representations of PIERRE, the investors understood that their principal and interest were guaranteed.
During the course of the investment fraud scheme, PIERRE fraudulently obtained at least $2,049,230 from over 100 investors. After receiving money from investors, PIERRE deposited the money into one of his personal bank accounts or bank accounts of RPCG. PIERRE then transferred the money to trading accounts, where he engaged in unprofitable day trading. From November 2016 through February 2019, PIERRE’s day trading generated approximately $1.4 million in losses. Despite these losses, PIERRE repeatedly and falsely represented to investors, including in investment statements containing fictitious balances, that the trading was profitable and that their investments were growing as promised. In addition to simply losing their money, PIERRE also used investors’ funds to purchase luxury vehicles and a fast food franchise for himself. Additionally, PIERRE further concealed the truth from investors by using money obtained from new investors to make redemption payments to previous investors, in Ponzi-like fashion.
The Embezzlement Fraud Scheme
In the second scheme alleged in the Indictment, PIERRE is charged with embezzling money from his former employers. From approximately 2007 until February 2016, PIERRE was the director of finance for two different hotels, which were owned by the same company (“Company-1”). One hotel was located in the Palisades, New York (“Hotel-1”), while the other was located in Armonk, New York (“Hotel-2”) (collectively, “the Hotels”). As the director of finance, PIERRE was the signatory on several bank accounts held in the name of the management company that managed the Hotels (“Management Company-1”).
In February 2016, Company-1 sold Hotel-1, and the management of Hotel-1 was transferred from Management Company-1 to another management company (“Management Company-2”). Subsequently, Management Company-2 opened new bank accounts to operate Hotel-1 (the “New Operating Accounts”). However, the Legacy Operating Accounts for Hotel-1 remained open until in or about 2019. PIERRE took advantage of the existence of the Legacy Operating Accounts, and his position as director of finance for Hotel-1, by regularly writing checks payable to “cash” or “petty cash” from one of Hotel-1’s Legacy Operating Accounts. PIERRE generally wrote the checks for under $10,000 in order to avoid triggering the filing of currency transaction reports for transactions in excess of $10,000. PIERRE continued to work for Hotel-1 as the director of finance from February 2016 through August 2018.
In 2017, the management of Hotel-2 was transferred from Management Company-1 to Management Company-2. PIERRE stopped working for Hotel-2 in February 2016, before it changed management. Nevertheless, after PIERRE’s employment with Hotel-2 ended, he regularly transferred money from the Legacy Operating Accounts of Hotel-2 to the Legacy Operating Accounts of Hotel-1. PIERRE then wrote himself checks payable to cash from those funds.
PIERRE continued using the Legacy Operating Accounts for Hotel-1 and Hotel-2 even after his employment with Management Company-2 terminated in or about August 2018, thus ending his association with either Hotel. For example, from August 2018 through March 2019, PIERRE wrote approximately 94 checks to “cash” or “petty cash” from one of the Legacy Operating Accounts for Hotel-1, for a total of approximately $403,890. The memo lines for the checks falsely stated that the checks were “reimbursements” connected to Hotel-1.
In addition, from March 2017 through 2019, PIERRE deposited large amounts of cash into his personal bank accounts in amounts that were generally less than $10,000. The deposits were conducted at various bank locations and typically took place on the same day, consecutive days, or within a short period of time. For example, in just seven months, from June 2018 through December 2018, PIERRE deposited approximately $225,612, through 138 cash deposits all under $10,000, into a bank account in the name of RPCG.
PIERRE, 50, of Nanuet, New York, is charged with one count of securities fraud, which carries a maximum sentence of 20 years in prison, one count of wire fraud, which carries a maximum sentence of 20 years in prison, and one count of structuring, which carries a maximum sentence of five years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Anyone with information about the crimes charged in the Indictment should call the United States Attorney’s Office at 866-874-8900.
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Mr. Berman praised the investigative work of Homeland Security Investigations. Mr. Berman also thanked the United States Postal Inspection Service, the United States Internal Revenue Service, the New York City Police Department, and the New York City Sherriff’s Office, which assisted in the investigation. Mr. Berman also thanked the Securities and Exchange Commission, which has brought and filed a civil enforcement action against the defendant.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Jordan Estes and Robert L. Boone are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Retired Police Officer Sentenced to 10 Years for Transporting Minor Across State Lines for Illegal Sexual PurposeRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Larry Woods, 63, Beloit, Wisconsin, was sentenced today by U.S. District Judge James D. Peterson to 10 years in federal prison, to be followed by 12 years of supervised release, for transporting a minor from Wisconsin to Illinois for an illegal sexual purpose. Woods pleaded guilty to this offense on August 7, 2019.
Woods retired from the Beloit Police Department in 2007 after working for the department for 25 years. After retiring, he worked as a school safety officer with the Beloit Public School system, and as a security monitor for the Beloit Public Library. Woods was a friend of the family of his minor victim, and had known his 13-year-old victim her entire life. Woods gained the trust of his victim’s mother by offering to be a mentor. He groomed his victim for months, and had a sexual relationship with her from late 2017 through his arrest in June 2018. Woods often transported his victim to Rockford, Illinois, where he rented hotel rooms to engage in sexual activity. Woods was convicted of repeated sexual assault of his victim in Rock County, Wisconsin, and was sentenced to 12 years in state prison, to be followed by five years extended supervision, on September 27, 2019.
Judge Peterson ordered the federal sentence to run concurrently with Woods’ state sentence. Judge Peterson noted that Woods targeted an extremely vulnerable victim, and that his crime was truly outrageous.
The charge against Woods is the result of an investigation by the Federal Bureau of Investigation and the Beloit Police Department. The prosecution of this case is being handled by Assistant U.S. Attorney Julie Pfluger.
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. 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.
Rapid City Woman Sentenced to 14 Years for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance was sentenced on November 1, 2019, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Roxanne Barton, age 36, was sentenced to 14 years in federal prison, followed by 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
From approximately June 2016 through June 2018, Barton was involved in a conspiracy responsible for distributing over 500 grams of methamphetamine in the Rapid City area.
This case was investigated by the South Dakota Division of Criminal Investigation, the Unified Narcotics Enforcement Team, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case. Additional co-conspirators are pending trials. Several other co-conspirators have already been sentenced.
Barton was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on November 4, 2019, by U.S. District Judge Roberto A. Lange.
Trevor Red Bird, age 31, was sentenced to 24 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Red Bird was indicted by a federal grand jury on June 11, 2019. He pled guilty on August 27, 2019.
Red Bird was convicted of Abusive Sexual Contact in U.S. District Court in May 2008. As a result of this conviction, Red Bird is required to register as a sex offender. In April 2019, Red Bird was on federal supervised release and was properly registered and residing in Rapid City. On April 7, 2019, Red Bird moved from his registered address but did not update his registration. An arrest warrant was subsequently issued and on June 26, 2019, Red Bird was arrested at a residence in St. Francis, South Dakota.
This case was investigated by the U.S. Marshals Service and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Red Bird was immediately turned over to the custody of the U.S. Marshals Service.
Providence Man Sentenced in Project Safe Neighborhoods Guns and Drugs InvestigationRead the Press Release
PROVIDENCE – A Providence man who admitted selling fentanyl and firearms on multiple occasions was sentenced today to more than three years in federal prison.
Jean Sajous, 28, admitted to the Court in July that between May 24, 2018, and June 20, 2018, he made multiple sales of fentanyl. He also admitted to selling two firearms. The transactions took place at a time when members of the FBI Safe Street Task Force were conducting a Project Safe Neighborhoods investigation into Sajous’ criminal activity.
At the time of his guilty plea, Sajous admitted to the Court that he sold an individual a total of 5.34 grams of fentanyl, a .25 caliber pistol, and a 9mm pistol. All of the transactions were monitored by members of the Safe Streets Task Force. Agents seized the fentanyl and the firearms immediately following each transaction.
Sajous was sentenced today by U.S. District Court Chief Judge William E. Smith to 37 months in federal prison to be followed by 3 years supervised release, announced United States Attorney Aaron L. Weisman and Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta.
Sajous pleaded guilty on July 8, 2019, to two counts of possession with intent to distribute and distribution of fentanyl, one count of unlicensed firearms dealing, and two counts of felon in possession of a firearm.
The case was prosecuted by Assistant U.S. Attorneys Helen H. Lee and Terrence P. Donnelly.
Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Providence Man Sentenced for Trafficking FentanylRead the Press Release
BOSTON – A Providence man was sentenced today in federal court in Boston in connection with a fentanyl conspiracy.
Dario Bier Romero, 28, of Providence, R.I., was sentenced by U.S. District Court Judge Richard G. Stearns to 70 months in prison and four years of supervised release. On July 25, 2019, Romero pleaded guilty to one count of conspiracy to distribute and possession with intent to distribute 400 grams or more of fentanyl, one count of possession with intent to distribute and distribution of 40 grams or more of fentanyl, and one count of possession with intent to distribute and distribution of 400 grams or more of fentanyl.
On June 21, 2018, investigators seized approximately three kilograms of fentanyl from Romero and co-defendant Gerson Franco Guerrero during a federal investigation. During the execution of a search warrant at Romero’s residence in Providence, investigators seized an additional kilogram of fentanyl and drug packaging paraphernalia.
Guerrero pleaded guilty and was sentenced to 43 months in prison in July 2019.
United States Attorney Andrew Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration’s New England Division made the announcement today. Assistance was provided by the Massachusetts State Police and Woburn and Providence (R.I.) Police Departments. Assistant U.S. Attorney Philip C. Cheng of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.
President of Purported Intergovernmental Organization Indicted for Cryptocurrency SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Peter C. Fitzhugh, Special Agent-in-Charge of the New York Field Office of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), today announced charges against ASA SAINT CLAIR for his participation in an investment scheme tied to a purported digital coin offering called IGOBIT. SAINT CLAIR allegedly participated in a scheme to defraud victims into providing loans tied to the launch of IGOBIT by World Sports Alliance, a purported intergovernmental organization focused on promoting international development through sports, and falsely promised investors guaranteed returns and an ownership interest in IGOBIT.
The case has been assigned to U.S. District Judge P. Kevin Castel.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, Asa Saint Clair used World Sports Alliance, a sham affiliate of the United Nations, as a vehicle to defraud lenders. Saint Clair allegedly defrauded investors in IGOBIT, a digital currency he claimed WSA was developing, but which turned out to be the fraudulent bait with which to lure victim investors. What’s real is the felony charge Saint Clair now faces.”
Special Agent-in-Charge Fitzhugh said: “Saint Claire allegedly touted his company as promoting the values of sports and peace for a better world, yet defrauded all those who invested in his sham company. As alleged, Saint Claire used the money he earned through deceit to fund a lavish lifestyle for him and his family. Through the HSI New York El Dorado Task Force and its strong partnerships, Saint Claire will face time for his actions, and it won’t be in the luxury or comfort he has grown accustomed to.”
According to the allegations in the Indictment unsealed late yesterday in Manhattan federal court[1] and the previously filed Complaint:
From 2017 through September 2019, SAINT CLAIR solicited investors for the launch of IGOBIT through promised investment returns and representations about World Sports Alliance’s development projects around the world. World Sports Alliance did not in fact participate in any international development projects and SAINT CLAIR did not dedicate investor funds to IGOBIT. Instead, SAINT CLAIR diverted those funds to other entities controlled by him and members of his family, as well as to pay his personal expenses, including dinners at Manhattan restaurants, airline tickets, and online shopping.
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SAINT CLAIR, 47, of New York, New York, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding work of HSI on this investigation.
This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorneys Kiersten A. Fletcher and Tara M. La Morte are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Pittsburgh Felon Indicted on Drug and Gun ChargesRead the Press Release
PITTSBURGH, Pa. – A resident of Pittsburgh, PA, has been indicted by a federal grand jury in Pittsburgh and charged with violations of federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
The four-count Superseding Indictment named Derrick Jones, age 34, as the sole defendant.
According to the Superseding Indictment, from on or about July 1, 2017, to on or about July 21, 2017, Derrick Jones maintained a drug involved premises. On July 21, 2017, Jones is charged with possession with intent to distribute cocaine and cocaine base, possession of firearms and ammunition by a convicted felon, and possession of firearms in furtherance of a drug trafficking crime. Jones is a convicted felon and is prohibited by federal law from possessing a firearm.
The law provides for a maximum total sentence of not less than five years and up to life, a fine of up to $3,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christy C. Wiegand is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Pittsburgh Bureau of Police conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Peever Man Sentenced to 240 Months for Abusive Sexual Contact and Felony Child AbuseRead the Press Release
United States Attorney Ron Parsons announced that a Peever, South Dakota, man convicted of abusive sexual contact was sentenced on November 4, 2019, by U.S. District Judge Charles B. Kornmann.
Thomas Dion DeMarrias, age 47, was sentenced to 240 months in federal prison, to be followed by 5 years of supervised release. He was also ordered to pay $200 to the Federal Crime Victims Fund.
According to court documents, between on or about May 9, 2010, and continuing through on or about May 8, 2011, in Roberts County, DeMarrias forcefully engaged in and attempted to engage in sexual contact with a juvenile victim, that is, sexual contact, by using force. DeMarrias had the intent to abuse, humiliate, harass, and degrade the victim and had the intent to arouse and gratify his sexual desires.
Between on or about June 22, 2009, and continuing through on or about June 21, 2011, in Roberts County, DeMarrias abused, tortured, and cruelly punished a child by using a dangerous weapon during and in relation to such conduct.
“This defendant tortured and sexually abused his child victims in what can only be described as a house of horrors,” said U.S. Attorney Parsons. “He deserves every day of this lengthy federal prison sentence.”
The investigation was conducted by the Federal Bureau of Investigation and the Sisseton-Wahpeton Oyate Sioux Tribal Law Enforcement. Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.
DeMarrias was remanded to the custody of the U.S. Marshals Service.
Pearl River County Man Sentenced to Almost 3 Years in Prison for Possession of Firearm by a Convicted FelonRead the Press Release
Gulfport, Miss. – Kirk Johnson, 43, of Pearl River County, was sentenced today by U.S. District Judge Sul Ozerden to 33 months in federal prison, followed by three years of supervised release, for possession of a firearm by a convicted felon, announced U.S. Attorney Mike Hurst and Resident Agent-in-Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Task Force. Johnson was also ordered to pay a $1500 fine.
On October 18, 2018, in Picayune, Mississippi, Johnson possessed and sold a firearm to a buyer for $80. Johnson was previously convicted of possession of precursor chemicals in Pearl River County, Mississippi, and prohibited from possessing a firearm.
On March 5, 2019, Johnson was charged in a federal criminal indictment with possession of a firearm by a convicted felon. He pled guilty before Judge Ozerden on June 20, 2019.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives Task Force. It was prosecuted by Assistant U.S. Attorneys Chris Carter and Stan Harris.
Parker Man Sentenced for Seven Counts of Willful Failure to File Tax ReturnsRead the Press Release
United States Attorney Ron Parsons announced that a Parker, South Dakota, man convicted of Willful Failure to File Tax Returns was sentenced on November 4, 2019, by U.S. District Judge Karen E. Schreier.
Dale Edward Buller, age 71, was sentenced to time served, 5 years of supervised release, $1,000 fine, $305,922.40 in restitution, and a special assessment to the Federal Crime Victims Fund in the amount of $175.
Buller was indicted by a federal grand jury on December 5, 2017. He pled guilty on November 5, 2018.
Buller, a retired farmer from Turner County, willfully failed to file tax returns with the Internal Revenue Service for calendar years 2010 through 2016. During those years, Buller received gross income from the rental of agricultural and pasture land. He was required by law to make and file income tax returns with the Internal Revenue Service, stating specifically the items of gross income. Buller attempted to conceal the income by claiming the land was owned by a Trust. However, because Buller controlled the Trust and all of the assets, all of the income was taxable.
This case was investigated by the Internal Revenue Service. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Palm Beach County Tax Return Preparer Convicted of Filing False Tax Returns and Theft of Government FundsRead the Press Release
A federal jury in Fort Lauderdale, Florida, convicted Paul Senat today of aiding and assisting in the preparation of false tax returns and theft of government funds, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to the evidence presented at trial, from at least 2012 to 2016, Paul Senat was the owner and operator of multiple tax return preparation businesses in Palm Beach and surrounding areas. Through the businesses, Senat falsified his clients’ returns by reporting fictitious business losses and false education credits in order to fraudulently inflate their refunds.
Following the jury verdict, Senat was taken into custody. United States District Judge Rodolfo A. Ruiz scheduled sentencing for Jan. 27, 2020.
Senat faces a statutory maximum sentence of 10 years in prison for theft of government funds and three years for each count of aiding and assisting in the preparation of false returns. He also faces a period of supervised release, restitution, forfeiture, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Alexander Effendi and Lauren Archer of the Tax Division, who prosecuted the case.
Oshkosh Man Indicted for Making False Statements under Oath in Federal Court ProceedingRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that on November 5, 2019, a federal grand jury returned a one-count indictment against Shawn Karst (age: 43) of Oshkosh. The indictment charged Karst with Perjury, in violation of 18 U.S.C. 1623(a). If convicted, Karst faces a maximum of 5 years’ imprisonment, up to a $250,000 fine, and up to 3 years of supervised release.
According to the indictment, on or about December 7, 2018, Karst made false statements while testifying under oath in U.S. District Court.
The Appleton Police Department investigated the case, which will be prosecuted by Assistant United States Attorney Andrew J. Maier.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove his guilt beyond a reasonable doubt.
Ohio man sentenced for crossing state lines to have illegal sexual contactRead the Press Release
CLARKSBURG, WEST VIRGINIA – James Vincent Scott, of Hudson, Ohio, was sentenced today to 50 months incarceration for a sex charge, U.S. Attorney Bill Powell announced.
Scott, age 32, pled guilty to one count of “Travel with Intent to Engage in Illicit Sexual Conduct” in June 2019. Scott admitted to traveling from Ohio to Harrison County, West Virginia, to engage in illegal sexual conduct in February 2019.
Assistant U.S. Attorney Danae Demasi-Lemon prosecuted the case on behalf of the government. The Bridgeport Police Department investigated.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Senior U.S. District Judge Irene M. Keeley presided.
Nine Central Illinois Men Arrested in FBI Springfield Operation, Charged with Attempted Enticement of a Child to Engage in Sexual ActivityRead the Press Release
PEORIA, Ill. – U.S. Attorney John Milhiser and FBI Springfield Special Agent in Charge Sean M. Cox announced that nine Central Illinois men were arrested over the weekend related to a FBI Springfield Operation. The men have been charged in separate criminal complaints with attempted enticement of a child to engage in sexual activity. The complaints were unsealed on Nov. 4, 2019, as each made their respective initial appearance in federal court in Peoria. Each was ordered detained pending hearings scheduled for today.
According to the affidavits filed in support of the complaints, each of the men allegedly used various social media applications to contact and engage with FBI online covert employees posing as minors under the age of 18 to make arrangements to meet the minor girl or boy with the intent to engage in sexual activity.
As the men arrived at or near the designated address, in the 1900 block of E. Knox St., in Peoria, Ill., they were arrested and taken into custody by FBI Springfield Special Agents; Illinois State Police; the Peoria County Sheriff’s Office; and, the Peoria Metropolitan Enforcement Group. Assistant U.S. Attorney Paul B. Morris is representing the government in the case prosecutions.
The defendants charged with attempted enticement of a child are:
- Thomas R. Alt, 26, of the 1100 block of N. Deibe Rd., Peoria;
- Thomas Bauer, 35, of the 7000 block of N. 1750 East Rd., Bloomington;
- Jacob N. Beeney, 35, of the 200 block of N. Trivoli, Trivoli;
- Travis Koch, 38, of the 1400 block of Park St., Peoria;
- Patrick Lanan, 39, Lake Camelot Dr., Mapleton;
- Tyler D. Lee, 33, of the 100 block of Harrison E., Galesburg;
- Keith Madson, 35, of the 100 block Hemlock Terrace, Canton;
- Hector Martinez, 56, of the 4100 block of N. Chelsea, Peoria; and,
- Bernard Waibel, 55, of the 1600 block of NE Glendale, Peoria.
If convicted, for the offense of attempted enticement of a minor, each defendant faces a minimum of 10 years and up to life in prison.
Members of the public are reminded that a complaint is merely an accusation; each defendant is presumed innocent unless proven guilty.
These cases were brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Nebraska Woman Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Ron Parsons announced that a Smithfield, Nebraska, woman convicted of Conspiracy to Distribute a Controlled Substance was sentenced on November 4, 2019, by U.S. District Judge Roberto A. Lange.
Marcitta Connors, age 25, was sentenced to 300 months in federal prison, followed by 6 years of supervised release, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Connors was indicted by a federal grand jury on September 11, 2018. She pled guilty on August 19, 2019.
The conviction stemmed from a drug conspiracy that occurred between January 1, 2015, and September 11, 2018. During the course of this conspiracy, Connors knowingly and intentionally conspired with others to distribute and possess with the intent to distribute methamphetamine on the Rosebud Sioux Indian Reservation in South Dakota. Connors worked with others in Nebraska and elsewhere to bring pounds of methamphetamine per trip onto the reservation where it was distributed by Connors and others. This conspiracy involved between 15 kilograms and 45 kilograms of methamphetamine. Also, during the course of the conspiracy, many firearms were traded between Connors and others for methamphetamine.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case was investigated by the Federal Bureau of Investigation, Rosebud Sioux Tribe Law Enforcement Services, Northern Plains Safe Trials Drug Enforcement Task Force, South Dakota Highway Patrol, Nebraska State Patrol, and the Lexington Police Department. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Connors was immediately turned over to the custody of the U.S. Marshals Service.
Mission Woman Sentenced for Assaulting a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, woman convicted of Assaulting, Resisting, and Impeding a Federal Officer was sentenced on November 4, 2019, by U.S. District Judge Roberto A. Lange.
Lee Ann Stenstrom a/k/a LeeAnn Stenstrom, age 36, was sentenced to 36 months in federal prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Stenstrom was indicted by a federal grand jury on February 13, 2019. She pled guilty on August 12, 2019.
The conviction stemmed from an incident that occurred in Mission on December 26, 2018. On that date, Stenstrom approached a Rosebud Sioux Tribe Law Enforcement Services Officer at a convenience store and said she wanted to report a crime. The officer detected the odor of alcohol on Stenstrom, and asked to get a statement from Stenstrom outside the store. Stenstrom agreed. Once outside, Stenstrom got in the driver’s seat of a parked vehicle. The officer, concerned that Stenstrom was intoxicated, told her not to start the vehicle and attempted to take the keys from the ignition. Stenstrom then started the vehicle and backed up, knocking the officer down, and then drove away. She was arrested later that day at a residence in Mission.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Stenstrom was immediately turned over to the custody of the U.S. Marshals Service.
Missing and Murdered Indigenous Persons public database training offered at four Montana Indian ReservationsRead the Press Release
BILLINGS—The U.S. Attorney’s Office held on the Blackfeet Indian Reservation today the first of four public trainings this week on how to use a national database system for missing persons, U.S. Attorney Kurt Alme said.
The USAO also recently released a Missing Indigenous Persons Public Service Announcement on what people can do if a loved one goes missing.
A representative for the National Missing and Unidentified Persons System, or NamUs, showed attendees in Browning how to use the free, online tool to report and find missing persons.
“Native American women suffer high rates of violence, including murder. When women go missing, they need to be found, and murdered victims need their killers brought to justice,” U.S. Attorney Alme said.
“By bringing NamUs training to Montana and our Indian reservations, we hope community members will learn how to use this free and secure tool to report and ultimately find their missing loved one. Our public service announcement also provides information on what to do if someone goes missing,” U.S. Attorney Alme said.
NamUs trainings also will be offered on Thursday at 10 a.m. at Rocky Boy’s Stone Child College Vo-Tech Center in Box Elder; at 1:30 p.m. at the Fort Belknap Agency Community building in Harlem; and on Friday at 9:30 a.m. at the Fort Peck Tribal Complex, Phase 3, in Poplar.
Administered by the National Institute of Justice, NamUs is accessible to both law enforcement and the public and allows them to enter and share information about missing persons. NamUs is available online at NamUs.gov.
The recently released a Missing Indigenous Persons PSA with steps people can take if a loved one goes missing was produced with assistance from the U.S. Department of Justice, the Bureau of Indian Affairs and the Missoula County Sheriff’s Office. The Missing Indigenous Persons PSA is available at the following link: https://youtu.be/pXNHF8jnZYM.
NamUs training was presented earlier this year to the Confederated Salish and Kootenai Tribes on the Flathead Reservation, the Northern Cheyenne Tribe and the Crow Tribe. NamUs training also was offered at two Missing Persons Training sessions for the public and law enforcement held in Helena and in Billings. The statewide training sessions were co-sponsored by the USAO, the Montana Department of Justice, the FBI and the Bureau of Indian Affairs.
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Michigan Company and Its Owner Sentenced for Illegally Storing Hazardous WasteRead the Press Release
Electro-Plating Services Inc. (EPS), located in Madison Heights, Michigan, was sentenced in federal court in Detroit to five years of probation, and was ordered to pay restitution of $1,449,963.94 joint and several with Gary Sayers to the U.S. Environmental Protection Agency (EPA). Sayers, EPS’s owner, was sentenced to one year in prison followed by three years of supervised release. The Honorable Stephen J. Murphy issued the sentence, having accepted each of their pleas of guilty to a federal hazardous waste storage felony on Feb. 14, 2019.
The crime related to Sayers’s operation of EPS, which used chemicals such as cyanide, chromium, nickel, chloride, trichloroethylene, and various acids and bases, as part of the plating process. After these chemicals no longer served their intended purpose, they became hazardous wastes, which required handling in compliance with the Resource Conservation and Recovery Act. Rather than having EPS’s hazardous wastes legally transported to a licensed hazardous waste facility, Sayers stored the hazardous waste in numerous drums and other containers, including a pit dug into the ground in the lower level of the EPS building in Madison Heights. For years, Sayers stonewalled state efforts to get him to legally deal the hazardous wastes. Ultimately, the EPA’s Superfund program spent $1,449,963.94 to clean up and dispose of the hazardous wastes.
“This case shows that anyone who chooses to do business with dangerous materials must obey federal laws that protect our fellow Americans and the environment. These defendants’ knowing, illegal storage of waste cyanide, highly corrosive wastes, toxic chromium waste, and reactive wastes posed a significant danger and threat to nearby communities and the environment,” said Assistant Attorney General Jeffrey Bossert Clark for the Justice Department’s Environment and Natural Resources Division. “They disregarded the law and numerous warnings and requests by state authorities to comply with their legal obligations. The Department of Justice will act to protect public health and safety.”
“The improper storage of hazardous waste presents a significant danger to our communities,” said U.S. Attorney Matthew Schneider of the Eastern District of Michigan. “EPS blatantly disregarded the safety of our community and environment. We hope this case will serve as notice to other businesses that law enforcement will take all necessary action to ensure compliance with our environmental laws and protect the people of Michigan.”
“Hazardous wastes pose serious risks to the health of entire communities, so it’s imperative they be handled and disposed of safely and legally,” said Special Agent in Charge Jennifer Lynn of the EPA’s criminal enforcement program in Michigan. “Today’s sentencing sends a clear signal that EPA and its law enforcement partners are committed to the protection of public health and will continue to pursue those who blatantly undermine those efforts.”
According to court records, Sayers—who owned and was the President of EPS—knew that such storage was illegal and had managed the company’s former Detroit facility where he kept hazardous wastes illegally. Starting in 1996, the Michigan Department of Environmental Quality (MDEQ) repeatedly sent him warnings about his illegal handling of hazardous waste. In 2005, Sayers was charged with and pleaded guilty to illegally transporting hazardous wastes in state court. During the ensuing years, the MDEQ attempted to get Sayers and EPS to properly manage the amounts of hazardous wastes piling up at the Madison Heights location. The MDEQ issued numerous letters of warning and violation notices to the company regarding its hazardous wastes.
In 2016, the MDEQ identified over 5,000 containers of liquid and solid wastes at the Madison Heights location. That same year, the city of Madison Heights revoked the company’s occupancy permit. In January 2017, the EPA initiated a Superfund removal action, after determining that nature and threats posed by the stored hazardous waste required a time-critical response. The cleanup was completed in January 2018.
Assistant Attorney General Clark and U.S. Attorney Matthew J. Schneider thanked EPA’s Criminal Investigation Division and the Michigan Department of Natural Resources-Environmental Investigation Section for their work investigating this case, as well as the Michigan Department of Environment, Great Lakes, and Energy (EGLE, formerly the MDEQ) and the Coast Guard Investigative Service, which provided investigative support. Senior Counsel Kris Dighe of the Environmental Crimes Section of the Justice Department’s Environmental Crimes Section and Assistant U.S. Attorney Sara D. Woodward of the U.S. Attorney’s Office for the Eastern District of Michigan are prosecuting the case.