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17 December 2019
Manhattan Fund Manager Charged with Misappropriating Clients’ MoneyRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Philip R. Bartlett, the Inspector-in-Charge of the New York Division of the U.S. Postal Inspection Service (“USPIS”), announced today the unsealing of an indictment charging DONALD LAGUARDIA with securities fraud, wire fraud, and investment adviser fraud in connection with his operation of a now-bankrupt New York-based investment firm, L-R Managers, LLC. Over several years, LAGUARDIA, the chief executive officer and co-founder of L-R Managers, misappropriated more than $1.5 million from private investment funds managed by the firm and used the stolen money to finance his personal and business expenses. LAGUARDIA was arrested this morning in Lavallette, New Jersey. The case is assigned to U.S. District Judge Lewis A. Kaplan. LAGUARDIA will be presented before Judge Kaplan in Manhattan federal court later today.
U.S. Geoffrey S. Berman said: “As alleged, Donald Laguardia stole from investors through a series of lies. He violated his clients’ trust by siphoning their money to bankroll his business and line his own pockets. Now, Laguardia faces prosecution for his alleged crimes.”
USPIS Inspector-in-Charge Philip R. Bartlett said: “Mr. Laguardia showed a reckless disregard for his clients when he allegedly misappropriated their investment money to fund personal and business expenses. This is a clear case of greed overshadowing honest business practices.”
According to the allegations contained in the Indictment,[1] unsealed today in Manhattan federal court:
From in or about 2013 through in or about 2017, LAGUARDIA solicited millions of dollars from investors for the LR Global Frontier Master Fund and two related feeder funds (collectively, the “Frontier Funds”), which had a stated focus on investments in “frontier” markets in Latin America, Central and Eastern Europe, the Middle East, Africa, and Asia. Contrary to LAGUARDIA’s representations, and in breach of his duties to investors in the Frontier Funds, LAGUARDIA misappropriated investors’ money to finance L-R Managers’ payroll, rent for its office space on Park Avenue in Manhattan, and hundreds of thousands of dollars in charges on the firm’s credit card, among other unauthorized expenses. At least $191,000 of the misappropriated money went directly to, or for the benefit of, LAGUARDIA personally.
In one example, in 2013, LAGUARDIA solicited an $800,000 investment in the Frontier Funds from an investor (“Investor-1”). Upon receipt of Investor-1’s money, an L-R Managers employee sent an email to LAGUARDIA and another person asking for approval to forward the $800,000 to the Frontier Funds. LAGUARDIA responded, “Dont [sic] wire anything yet!” LAGUARDIA then caused approximately $390,000 of Investor-1’s investment never to be transmitted to the Frontier Funds, but instead to be used to pay himself approximately $52,000 and for various other personal and business expenses.
By September 2015, L-R Managers faced substantial financial difficulties. On September 1, 2015, an L-R Managers principal sent an email to LAGUARDIA and others at the firm stating that it would be “ethically troubling to accept money into the [Frontier Funds] when [L-R Managers] can no longer support . . . payroll and mission critical services.” Nevertheless, just a few days later, a new investor solicited by LAGUARDIA (“Investor-2”) made a $2 million investment into the Frontier Funds. Prior to this investment, LAGUARDIA concealed his firm’s near insolvency from Investor-2 and did not disclose that the Frontier Funds had been paying substantial expenses for L-R Managers, contrary to the representations in the funds’ offering documents. LAGUARDIA then proceeded, over the course of several months, to use a substantial portion of Investor-2’s investment in the Frontier Funds to continue paying himself and subsidizing his firm’s business expenses.
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LAGUARDIA, 52, of Lavallette, New Jersey, is charged with one count of securities fraud, one count of wire fraud, and one count of investment adviser fraud. LAGUARDIA faces a maximum sentence of 20 years in prison on each of the securities and wire fraud counts and a maximum sentence of five years in prison on the investment adviser fraud count.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of a defendant will be determined by the judge.
Mr. Berman praised the investigative work of the USPIS. Mr. Berman also thanked the Securities & Exchange Commission, which previously brought a related civil action against LAGUARDIA.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Margaret Graham and Daniel Loss 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 descriptions of the Indictment constitute only allegations, and every fact described should be treated as an allegation.
Man Sentenced to 3 Years for Embezzling over $1 Million from Grant County BusinessRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Curtis Tarver, 55, Spring Grove, Minnesota, was sentenced yesterday by U.S. District Judge James Peterson to three years in prison for wire fraud. The wire fraud charge stems from Tarver’s embezzlement from Rapid Die and Molding Company (“RDM”) in Cassville, Wisconsin, and its sister company Hawley Products in Paducah, Kentucky. Tarver pleaded guilty to this charge on August 20, 2019.
Tarver worked for RDM and was eventually promoted to Chief Financial Officer (CFO) for RDM and Hawley Products (“the companies”). As CFO, Tarver was responsible for handling all financial matters for the companies, including, but not limited to, disbursing payments, depositing and transferring funds, and balancing bank accounts. In this role, Tarver had access to and utilized a variety of financial accounts belonging to the companies, including bank accounts, commercial credit accounts, and PayPal.
The investigation revealed that from 2006 until January of 2018, Tarver devised and participated in a scheme to embezzle money from the companies. Tarver embezzled money from the companies in a variety of ways, including: 1) using the companies’ credit cards to make personal purchases; 2) using the companies’ checks for personal purchases; 3) issuing the companies’ checks to himself; 4) transferring the companies’ funds to his personal bank accounts using PayPal; 5) direct transfers from the companies’ bank accounts to his personal bank accounts. For example, on November 30, 2015, Tarver transferred $9,200 from RDM’s PayPal account to his personal PayPal account. Tarver subsequently transferred the $9,200 to his personal account at Navy Federal Credit Union.
The investigation further revealed that Tarver used the embezzled funds for a variety of personal expenditures, including, but not limited to, home improvements, recreational vehicles, travel, and dining. Tarver also provided the embezzled funds directly to other people as gifts or loans. In total, Tarver embezzled over $1,023,649.44 from the companies.
The charge against Tarver is the result of an investigation by the Federal Bureau of Investigation with assistance from the Cassville Police Department. The prosecution of the case has been being handled by Assistant U.S. Attorney Aaron Wegner.
Louisiana Man Pleads Guilty to Trafficking Protecting BirdsRead the Press Release
WASHINGTON – A Louisiana resident and owner of a freight forwarding company, pleaded guilty on December 16, 2019 in federal court in the Eastern District of Louisiana, on a charge of trafficking exotic birds protected under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES).
Paul Tallman of Kenner, Louisiana, owner of Aerotyme-Inc., pleaded to the charges, which stemmed from a scheme by codefendant William McGinness to ship birds from California to the Port of New Orleans for export to Taiwan in order to avoid a 2015 Taiwanese ban on the import of all California birds due to the risk of highly pathogenic avian flu. The shipment contained 86 birds, including three falsely labeled macaws.
“This illegal scheme flouted federal and international laws meant to protect exotic birds from exploitation as well as international efforts to contain infectious disease,” said Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Environment and Natural Resources Division. “This case shows well how federal law enforcement protects our nation’s resources, its biodiversity, and the public’s health from criminal enterprises.”
On Dec. 11, 2019, McGinness pleaded guilty to conspiracy to smuggle and make false statements in violation of the Lacey Act, as well as a false statement charge. Another codefendant, Rene Rizal, also pleaded guilty to a false statement charge.
McGinness had Tallman and Rizal create and certify false paperwork in order to facilitate the shipment of the birds from New Orleans. McGinness trucked the birds from California to Aerotyme Inc. in Kenner, Louisiana, where he and Tallman submitted false paperwork, including a veterinary health certificate certifying that the birds were disease free, to agents of the U.S. Fish and Wildlife Service. Federal law enforcement officers seized 14 birds prior to export.
Codefendants Wayne Andrews, a bird breeder, and Alex Madriaga, a veterinarian, both from California, previously pleaded guilty to creating false documents to facilitate McGiness’ plan to transport the birds from California to Louisiana. Andrews’ and Madriaga’s sentencings are scheduled for Jan. 15, 2020. Rizal’s, McGinness’ and Tallman’s sentencings are scheduled for March 4, 2020.
The maximum sentence for Tallman is one year in prison and a fine of up to $100,000. The maximum sentence for McGinness and Rizal is five years in prison, three years of post-release supervision, and a fine of up to $250,000. Andrews and Madriaga face a maximum sentence of one year in prison and a fine of up to $100,000.
The U.S. Fish and Wildlife Service, Office of Law Enforcement investigated this case. Trial Attorney Mary Dee Carraway of the Justice Department’s Environmental Crimes Section and Assistant U.S. Attorney Missy Bücher of the Eastern District of Louisiana are prosecuting the case.
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Lewis County man charged with firearms violationsRead the Press Release
ELKINS, WEST VIRGINIA – Samuel Lee Donaldson, Jr., of Weston, West Virginia, was indicted today on a firearms charges, U.S. Attorney Bill Powell announced.
Donaldson, age 35, is charged with two counts of “Unlawful Possession of a Firearm.” Donaldson, who was previously convicted of domestic battery and prohibited from having a firearm, is accused of having a 9mm pistol in October 2019 in Lewis County.
Donaldson faces up to 10 years incarceration and a fine of up to $250,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Brandon S. Flower is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lewis County Sheriff’s Office investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Leader of Alien Smuggling Ring Sentenced to 10 Years in PrisonRead the Press Release
TUCSON, Ariz. – On December 11, 2019, Senior U.S. District Judge Raner C. Collins sentenced defendant Audias Sanchez-Colin to 10 years in prison for Conspiracy to Transport Illegal Aliens for Profit and Illegal Reentry into the United States of a Removed Alien. The defendant was one of 26 codefendants who had been previously charged in this conspiracy.
From 2016 through 2018, the defendant was the leader of multiple, large-scale alien smuggling organizations. He and his co-defendants smuggled into the United States approximately 150 unlawful aliens, including 13 juveniles. The co-conspirators also laundered over $1 million in fraudulent proceeds from their alien smuggling operations.
The investigation was conducted by the Department of Homeland Security Investigations. The prosecution was handled by the U.S. Attorney’s Office, District of Arizona, Tucson.
Justice Department awards more than $333 million to fight opioid crisisRead the Press Release
$1.1 Million will support efforts to combat drugs and crime in the Eastern District of Tennessee.
Knoxville, Tenn. – The Justice Department’s Office of Justice Programs announced awards of more than $333 million to help communities affected by the opioid crisis. $1.1M will help public safety and public health professionals in the Eastern District of Tennessee combat substance abuse and respond effectively to overdoses. OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan made the announcement during a visit with local, state and federal officials in West Virginia, one of the states hardest hit by the epidemic.
“The opioid crisis has destroyed far too many lives and left too many Americans feeling helpless and hopeless,” said PDAAG Sullivan. “This epidemic—the most deadly in our nation’s history—is introducing new dangers and loading public health responsibilities onto the public safety duties of our law enforcement officers. The Department of Justice is here to support them during this unprecedented and extremely challenging time.”
With more than 130 people dying from opioid-related overdoses every day, the Department of Justice has made fighting addiction to opioids—including heroin and fentanyl—a national priority. The Trump Administration is providing critical funding for a wide range of activities—from preventive services and comprehensive treatment to recovery assistance, forensic science services and research—to help save lives and break the cycle of addiction and crime.
“As the opioid crisis continues, cheaper and more powerful opioid drugs, such as fentanyl, are increasingly being sought out by those who are addicted to prescription opioids. These fentanyl drugs are especially deadly, whether taken alone or with other narcotics such as methamphetamine. We will continue to work with local, state, and federal leaders to help educate the public regarding the dangers involved with the improper use and abuse of these dangerous substances,” said United States Attorney J. Douglas Overbey.
“The opioid crisis is a major issue in East Tennessee. We appreciate the issuance of this grant and plan to use it to reduce opioid abuse and for treatment and recovery programs in Sevier County,” said Sevier Mayor Larry Waters.
“KLF is excited to work with the Department of Justice to continue to make an impact against the opioid crisis in E.TN. With this grant award, we will invest in at risk youth through education that equips their mentors and caregivers on how to prevent opioid misuse. In order to make a large, efficient and effective impact, we have developed and launched a multi-agency collaborative name Knoxville Area Mentoring Initiative that includes KLF’s Amachi Knoxville, Big Brother Big Sisters of East Tennessee, Girls on the Run of Greater Knoxville, The Joy of Music School and YMCA of East Tennessee. Working together we can provide the tools necessary for our young people to stand strong,” said Chris Martin, President of Knoxville Leadership Foundation.
The awards will support an array of activities designed to reduce the harm inflicted by these dangerous drugs. Grants will help law enforcement officers, emergency responders and treatment professionals coordinate their response to overdoses. Funds will also provide services for children and youth affected by the crisis and will support the nationwide network of drug and treatment courts. Other awards will address prescription drug abuse, expand the capacity of forensic labs and support opioid-related research.
The following awards were made to organizations in the Eastern District of Tennessee: Sevier County Government - $600,000
Knoxville Leadership Foundation - $500,000Information about the programs and awards announced are available here. For more information about OJP awards, visit the OJP Awards Data webpage.
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training and technical assistance, and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
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Justice Department Awards over $62 Million to Support Health and Safety of Law Enforcement OfficersRead the Press Release
The Department of Justice’s Office of Justice Programs today announced it has awarded funding totaling over $62 million to provide services designed to protect officers and improve overall public safety. OJP’s Bureau of Justice Assistance and National Institute of Justice awarded grants to law enforcement departments, local jurisdictions, and training, technical assistance and research organizations throughout the United States.
“The Office of Justice Programs stands proudly with the Attorney General and the President in our commitment to the 700,000 sworn law enforcement professionals who selflessly put their lives on the line to keep us all safe,” said OJP’s Principal Deputy Assistant Attorney General Katharine T. Sullivan. “Bulletproof vests, body-worn cameras, health and safety research—these resources will provide officers the training, equipment and strategies needed to enable them to do their jobs effectively and keep them safe from harm.”
The FBI’s official crime data for 2019 reflects a decrease in the number of law enforcement officers feloniously killed between 2018 and 2019 (43 killed through September 2018 and 32 killed as of Sept. 30, 2019). There was also a slight decrease in the number of law enforcement officers reported accidentally killed in 2019 (29) as compared to the same reporting period in 2018 (33).
Still, there were almost 60,000 assaults against officers in 2018, according to the latest data available from the FBI.
Nearly $23 million will support the training and implementation of law enforcement agencies’ body-worn camera programs. Another $21 million will reimburse jurisdictions for up to 50 percent of the cost of body armor vests, while over $14.8 million will support law enforcement safety and wellness programs, research and services.
In addition, over $3 million is allocated for research and evaluation of safety, health and wellness priorities. These investments include the development of ballistic vests, studies of in-vehicle safety and the evaluation of less-lethal technologies to increase police and public safety.
A full list of the awards, organized under specific grant programs and listed awardees by state, is available online at https://go.usa.gov/xpxd3.
Additional information about Fiscal Year 2019 grant awards made by the Office of Justice Programs can be found online at the OJP Awards Data webpage.
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
Justice Department Awards over $8.7 Million to Fight Opiod Crisis, Combat Drugs and Crime in North FloridaRead the Press Release
TALLAHASSEE, FLORIDA – The Justice Department’s Office of Justice Programs (OJP) announced awards of more than $8,742,871 to help public safety and public health professionals in the Northern
District of Florida combat substance abuse and respond effectively to overdoses, part of $333 million awarded nationwide to help communities affected by the opioid crisis. The awards were announced by OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan.“The opioid crisis has destroyed far too many lives and left too many Americans feeling helpless and hopeless,” Sullivan said. “This epidemic—the most deadly in our nation’s history—is introducing new dangers and loading public health responsibilities onto the public safety duties of our law enforcement officers. The Department of Justice is here to support them during this unprecedented and extremely challenging time.”
With more than 130 people dying from opioid-related overdoses every day, the Department of Justice has made fighting addiction to opioids—including heroin and fentanyl—a national priority. The Trump
Administration is providing critical funding for a wide range of activities— from preventive services and comprehensive treatment to recovery assistance, forensic science services, and research—to help save lives and break the cycle of addiction and crime.“Winning the fight against opioid addiction will require not just effective law enforcement, but also a comprehensive and coordinated approach from community organizations and service providers at the local level,” said Lawrence Keefe, United States Attorney for the Northern District of Florida.
“These grants will go a long way to support the efforts of those combatting this plague in hometowns and neighborhoods across the Northern District of Florida.”The awards announced support an array of activities designed to reduce the harm inflicted by these dangerous drugs. Grants will help law enforcement officers, emergency responders and treatment professionals coordinate their response to overdoses. Funds will also provide services for children and youth affected by the crisis and will support the nationwide network of drug and treatment courts. Other awards will address prescription drug abuse, expand the capacity of forensic labs, and support opioid-related research.
Awards were made to three organizations in the Northern District of Florida:
Florida Office of the State Courts Administrator $1,492,871
Institute for Intergovernmental Research $6,000,000
Big Brothers Big Sisters of America $1,250,000
Information about the programs and awards announced is available here. For more information about
OJP awards, visit the OJP Awards Data webpage.The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine
T. Sullivan, provides federal leadership, grants, training and technical assistance, and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims, and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about
OJP and its components can be found at www.ojp.gov.The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern
District of Florida website. For more information about the United States Attorney’s Office, of Florida, visit http://www.justice.gov/usao/fln/index.html.Justice Department Awards More Than $333 Million to Fight Opioid CrisisRead the Press Release
LEXINGTON, Ky.– The Justice Department’s Office of Justice Programs today announced awards of more than $333 million to help communities affected by the opioid crisis. $9,980,656 will help public safety and public health professionals in the Eastern District of Kentucky combat substance abuse and respond effectively to overdoses. OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan made the announcement during a visit with local, state and federal officials in West Virginia, one of the states hardest hit by the epidemic.
“The opioid crisis has destroyed far too many lives and left too many Americans feeling helpless and hopeless,” said PDAAG Sullivan. “This epidemic—the most deadly in our nation’s history—is introducing new dangers and loading public health responsibilities onto the public safety duties of our law enforcement officers. The Department of Justice is here to support them during this unprecedented and extremely challenging time.”
With more than 130 people dying from opioid-related overdoses every day, the Department of Justice has made fighting addiction to opioids—including heroin and fentanyl—a national priority. The Trump Administration is providing critical funding for a wide range of activities—from preventive services and comprehensive treatment to recovery assistance, forensic science services and research—to help save lives and break the cycle of addiction and crime.
“The opioid crisis is one of the most acute problems we face in the Eastern District of Kentucky, and solving it will take a coordinated response by all stakeholders, including law enforcement, the healthcare and treatment community, and many others,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “We are grateful for the support of the Department of Justice, as these awards will undoubtedly assist law enforcement and public health efforts in our District, and throughout the Commonwealth.”
The awards announced today support an array of activities designed to reduce the harm inflicted by these dangerous drugs. Grants will help law enforcement officers, emergency responders and treatment professionals coordinate their response to overdoses. Funds will also provide services for children and youth affected by the crisis and will support the nationwide network of drug and treatment courts. Other awards will address prescription drug abuse, expand the capacity of forensic labs and support opioid-related research.
The following awards were made to organizations in the Eastern District of Kentucky
- Kentucky Justice and Public Safety Cabinet- $4,990,407
- Kentucky Administrative Office of the Courts-$2,500,000
- Kentucky Cabinet for Health and Family Services- $990,249
- Mountain Comprehensive Care Center, Inc.- $750,000
- Kentucky Justice and Public Safety Cabinet- $750,000
Information about the programs and awards announced today is available here. For more information about OJP awards, visit the OJP Awards Data webpage.
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training and technical assistance, and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov
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Iraqi Man Pleads Guilty to Willfully Violating Order of SupervisionRead the Press Release
Bangor, Maine: An Iraqi national pleaded guilty today in federal court in Bangor to willfully failing to comply with the terms of release under supervision, U.S. Attorney Halsey B. Frank announced.
According to court records, Mustafa Hatem Abdulkadhim Al Shuwaili, 27, entered the U.S. in 2012. An immigration judge ordered him removed to Iraq in December 2015. In October 2018, pending his removal from the U.S., he signed an Order of Supervision with the Department of Homeland Security, U.S. Immigration and Customs Enforcement. The order prohibited him from committing any crimes while on release, among other conditions. On June 11, 2019, he was convicted in Penobscot County of felony Domestic Violence Assault, with Priors.
Al Shuwaili faces up to one year in prison and a $100,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
U.S. Immigration and Customs Enforcement investigated the case.
Indonesian Citizen and Three Indonesian Companies Charged with Violating U.S. Export Laws and Sanctions Against IranRead the Press Release
Sunarko Kuntjoro, 68, a citizen of Indonesia, and three Indonesian-based companies, PT MS Aero Support (PTMS), PT Kandiyasa Energi Utama (PTKEU), and PT Antasena Kreasi (PTAK), were charged today in the United States District Court for the District of Columbia on Dec. 10, 2019, with violating U.S. export laws related to U.S. sanctions against Iran.
The charges were announced by Assistant Attorney General for National Security John Demers, U.S. Attorney Jessie K. Liu for the District of Columbia, Special Agent in Charge Nasir Khan, U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement Washington Field Office, and Special Agent in Charge Nick Annan, U.S. Department of Homeland Security, Homeland Security Investigations San Diego.
An eight-count indictment returned today charges Kuntjoro and PTMS, PTKEU, and PTAK, with conspiracy to unlawfully export U.S.-origin goods and technology to Iran and to defraud the United States. Kuntjoro and PTMS also face charges for unlawful export and attempted export to an embargoed country, conspiracy to launder monetary instruments, and false statements. As set forth in the indictment, the U.S.-origin goods were destined for an Iranian aviation business end user, Mahan Air, and the defendants conspired to make a financial profit for themselves and other conspirators, and to evade export regulations, prohibitions, and licensing requirements of the International Emergency Economic Powers Act (IEEPA), the Iranian Transactions and Sanctions Regulations (ITSR), the Export Administration Regulations, and the Global Terrorism Sanctions Regulations (GTSR). The United States Department of Treasury designated Mahan Air as Specially Designated National and Blocked Person (SDN) under the GTSR on Oct. 12, 2011.
According to the indictment, between March 2011 and July 2018, Kuntjoro, the majority owner and President Director of PTMS, conspired with Mahan Air; Mustafa Oveici, an Iranian executive for Mahan Air; and others, including an American person and company. Mahan Air was designated an SDN for providing financial, material and technological support to Iran’s Islamic Revolutionary Guard Corps-Qods Force. The United States Department of Commerce has placed Mahan on its Denied Parties List and Mustafa Oveici on the Entity List. The conspiracy involved transporting goods owned by Mahan through PTMS, PTKEU and PTAK to the United States for repair and re-export to Mahan in Iran and elsewhere. The conspirators caused the U.S.-origin goods to be exported from the United States without obtaining valid licenses from the United States Department of the Treasury Office of Foreign Assets Control and the United States Department of Commerce.
On March 15, 1995, the President, pursuant to IEEPA, issued Executive Order No. 12957, finding that “the actions and policies of the Government of Iran constitute an unusual and extraordinary threat to the national security, foreign policy, and economy of the United States” and declaring “a national emergency to deal with the threat.” In subsequent Executive Orders, the President imposed economic sanctions, including a trade embargo, on Iran. The Executive Orders and the ITSR prohibit the exportation, re-exportation, sale, or supply, directly or indirectly, to Iran of any goods, technology, or services from the United States or by a United States person without prior authorization or license from the United States Department of the Treasury, the Office of Foreign Assets Control, located in Washington, D.C.
Kuntjoro faces statutory maximum sentences of five years in prison and a $250,000 fine for the charge of conspiracy to violate IEEPA and defraud the U.S. government; a maximum of 20 years in prison and a $1 million fine for each of the individual charges of violating IEEPA; a maximum of 20 years in prison and a $500,000 fine on the charge of conspiracy to launder monetary instruments; and a maximum of five years in prison and a $250,000 fine for the false statement charge. 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 a judge.
The investigation was conducted by special agents from the United States Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, with assistance from special agents from Homeland Security Investigations in San Diego and Miami.
The details contained in an indictment are mere allegations. All defendants are presumed innocent unless and until proven guilty in a court of law.
Indonesia Citizen and Three Indonesian Companies Charged with Violating U.S. Export Laws and Sanctions against IranRead the Press Release
WASHINGTON – Sunarko Kuntjoro, 68, a citizen of Indonesia, and three Indonesian-based companies, PT MS Aero Support (PTMS), PT Kandiyasa Energi Utama (PTKEU), and PT Antasena Kreasi (PTAK), were charged today in the United States District Court for the District of Columbia on December 10, 2019, with violating U.S. export laws related to U.S. sanctions against Iran.
The charges were announced by Assistant Attorney General for National Security John Demers, U.S. Attorney Jessie K. Liu for the District of Columbia, Special Agent in Charge Nasir Khan, U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement Washington Field Office, and Special Agent in Charge Nick Annan, U.S. Department of Homeland Security, Homeland Security Investigations San Diego.
An eight-count indictment returned today charges Kuntjoro and PTMS, PTKEU, and PTAK, with conspiracy to unlawfully export U.S.-origin goods and technology to Iran and to defraud the United States. Kuntjoro and PTMS also face charges for unlawful export and attempted export to an embargoed country, conspiracy to launder monetary instruments, and false statements. As set forth in the indictment, the U.S.-origin goods were destined for an Iranian aviation business end user, Mahan Air, and the defendants conspired to make a financial profit for themselves and other conspirators, and to evade export regulations, prohibitions, and licensing requirements of the International Emergency Economic Powers Act (IEEPA), the Iranian Transactions and Sanctions Regulations (ITSR), the Export Administration Regulations, and the Global Terrorism Sanctions Regulations (GTSR). The United States Department of Treasury designated Mahan Air as Specially Designated National and Blocked Person (SDN) under the GTSR on Oct. 12, 2011.
According to the indictment, between March 2011 and July 2018, Kuntjoro the majority owner and President Director of PTMS, conspired with Mahan Air; Mustafa Oveici, an Iranian executive for Mahan Air; and others, including an American person and company. Mahan Air was designated an SDN for providing financial, material and technological support to Iran’s Islamic Revolutionary Guard Corps-Qods Force. The United States Department of Commerce has placed Mahan on its Denied Parties List and Mustafa Oveici on the Entity List. The conspiracy involved transporting goods owned by Mahan through PTMS, PTKEU and PTAK to the United States for repair and re-export to Mahan in Iran and elsewhere. The conspirators caused the U.S.-origin goods to be exported from the United States without obtaining valid licenses from the United States Department of the Treasury Office of Foreign Assets Control and the United States Department of Commerce.
On March 15, 1995, the President, pursuant to IEEPA, issued Executive Order No. 12957, finding that “the actions and policies of the Government of Iran constitute an unusual and extraordinary threat to the national security, foreign policy, and economy of the United States” and declaring “a national emergency to deal with the threat.” In subsequent Executive Orders, the President imposed economic sanctions, including a trade embargo, on Iran. The Executive Orders and the ITSR prohibit the exportation, re-exportation, sale, or supply, directly or indirectly, to Iran of any goods, technology, or services from the United States or by a United States person without prior authorization or license from the United States Department of the Treasury, the Office of Foreign Assets Control, located in Washington, D.C.
Kuntjoro faces statutory maximum sentences of 5 years in prison and a $250,000 fine for the charge of conspiracy to violate IEEPA and defraud the U.S. government; a maximum of 20 years in prison and a $1 million fine for each of the individual charges of violating IEEPA; a maximum of 20 years in prison and a $500,000 fine on the charge of conspiracy to launder monetary instruments; and a maximum of 5 years in prison and a $250,000 fine for the false statement charge. 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 a judge.
The investigation was conducted by special agents from the United States Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, with assistance from special agents from Homeland Security Investigations in San Diego and Miami.
The details contained in an indictment are mere allegations. All defendants are presumed innocent unless and until proven guilty in a court of law.
Indictment Returned Charging Two Foreign Nationals with Violating U.S. Money Laundering and Sanctions Laws Against IranRead the Press Release
WASHINGTON - Issam Shammout of Jordan, 48, and Ali Abdullah Alhay of Saudi Arabia, 61, were charged with violating U.S. export laws and sanctions against Iran in the United States District Court for the District of Columbia. The announcement was made by U.S. Attorney Jessie K. Liu for the District of Columbia, Special Agent in Charge Jill Sanborn of FBI Minneapolis, and Acting Director of the Office of Export Enforcement John Sonderman of the U.S. Department of Commerce.
A 17-count indictment returned on Tuesday December 16, 2019 charges Shammout and Alhay with conspiracy to acquire U.S. origin aircrafts and parts to supply to end-users in Iran, specifically Mahan Air, a specially designated national. The indictment alleges that the defendants concealed from companies, financial institutions that clear U.S. dollar transactions, and the U.S. government that the U.S.-origin goods were destined for Mahan Air, all as part of a scheme to enrich the defendants and other conspirators, and to evade the regulations, prohibitions, and licensing requirements of the International Emergency Economic Powers Act (IEEPA), the Iranian Transactions and Sanctions Regulations (ITSR), and the Export Administration Regulations (EAR).
A related verified civil complaint in rem filed in July 2017 in the District of Columbia against $17,035,935 in funds for benefit of Al Naser airlines has also been unsealed. These funds were allegedly involved in this scheme to launder funds in to the United States to illicitly procure airplanes destined for Mahan Air. A criminal forfeiture allegation against the funds and nine airplanes was also included in the indictment against Shammout and Alhay.
“We will continue to aggressively prosecute those who violate our export control laws and use every measure available under the law, to include civil forfeiture, to recover funds for the victims of terrorism,” said Jessie K. Liu, U.S. Attorney for the District of Columbia. “These laws serve to prevent hostile countries from obtaining and proliferating goods that could be used to harm our nation.”
"Today's indictment underscores an important fact that those who support this type of procurement effort by Mahan Air will be thoroughly investigated by the FBI and prosecuted to the fullest extent of the law," said FBI Minneapolis Special Agent in Charge Jill Sanborn. "We applaud the efforts of our agents and other partners for their outstanding work on this significant case," Sanborn added.
“The Department of Commerce and our interagency partners will relentlessly pursue any commercial entity which flagrantly disregards American laws to support the spread of terrorism," said Acting Director of the Office of Export Enforcement John Sonderman. “This is just the latest in a string of actions dating back to 2008 to end Mahan Air's systematic violation of U.S. export controls.”
According to the indictment, beginning around August 2012 through May 2015, Shammout and Alhay conspired to purchase and deliver U.S.-made engine parts valued at over ten percent of the value of the aircraft, subjecting them to the strictures of IEEPA and the Iran Sanction Regulations. The conspiracy utilized the U.S. correspondent banking system to process the illicit transactions as they were in U.S. Dollars, and at no time were U.S. financial institutions alerted that they were financing Mahan Air’s aircraft supply.
Mahan Air has been designated by the U.S. Department of the Treasury since October 12, 2011 as a Specially Designated National for providing financial, material and technological support to Iran’s Islamic Revolutionary Guard Corps-Qods Force. The Department of Commerce has placed Mahan on its Denied Parties List.
On March 15, 1995, the President, pursuant to IEEPA, issued Executive Order No. 12957, finding that “the actions and policies of the Government of Iran constitute an unusual and extraordinary threat to the national security, foreign policy, and economy of the United States” and declaring “a national emergency to deal with the threat.” In subsequent Executive Orders, the President imposed economic sanctions, including a trade embargo, on Iran. The Executive Orders and the ITSR prohibit the exportation, re-exportation, sale, or supply, directly or indirectly, to Iran of any goods, technology, or services from the United States or by a United States person without prior authorization or license from the United States Department of the Treasury, the Office of Foreign Assets Control, located in Washington, D.C.
If convicted, Shammout and Alhway would face a maximum of 20 years imprisonment.
The investigation was conducted by special agents from the FBI Minneapolis Field Office and U.S. Department of Commerce, Bureau of Industry and Security Office of Export Enforcement Washington D.C. Field Office.
The details contained in an indictment are mere allegations. All defendants are presumed innocent unless and until proven guilty in a court of law.
Assistant U.S. Attorneys Zia M. Faruqui, Chris Brown, and Arvind Lal, Special Assistant U.S. Attorney Chris Kaltsas, National Security Division Trial Attorney Dave Recker, and Paralegal Specialist Rosalind Pressley, all from the U.S. Attorney’s Office for the District of Columbia, are representing the government. Former Intelligence Analyst Lia Anter also provided support of this investigation.
Illegal Alien with 7 DUI Convictions Sentenced to PrisonRead the Press Release
NORFOLK, Va. – A Mexican national was sentenced today 13 months in prison for illegal re-entry by a previously deported alien.
“Juan Navarro-Hernandez has a staggering seven DUI convictions,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “This is precisely the type of defendant and criminal immigration case we are focused on here in EDVA. Those who illegally enter the United States, and then choose to commit further crimes here, pose a great danger to the safety of our communities. We will continue to work with our law enforcement partners and immigration authorities to prosecute and remove these criminals from our communities.”
According to court documents, Juan Navarro-Hernandez, 50, of Guanajuato, Mexico, was deported from the United States at taxpayer expense in February 2001. Sometime later, Navarro-Hernandez snuck back into the United States again, and on May 19, 2019, Navarro-Hernandez was found unlawfully in the United States when he was arrested by Chesapeake Police for driving under the influence (DUI). Navarro-Hernandez has a total of seven convictions in state court for DUI.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., made the announcement after sentencing by Senior U.S. District Judge Robert G. Doumar. Assistant U.S. Attorney Darryl J. Mitchell prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:19-cr-111.
Honolulu Police Officer Pleads Guilty to Civil Rights OffensesRead the Press Release
John Rabago, 43, of Honolulu, Hawaii, pleaded guilty yesterday before U.S. District Judge Leslie E. Kobayashi to one count of conspiring to deprive a person of his civil rights, and one count of acting under color of law to deprive the same individual of his civil rights.
“As a police officer sworn to uphold and defend the laws of our nation, Rabago abused his authority and violated an individual’s constitutional rights,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “This abuse of authority was unacceptable, and the Department of Justice will continue to vigorously prosecute law enforcement officers who commit civil rights offenses.”
“Officer Rabago violated his obligation to serve, not victimize, the public,” said U.S. Attorney Kenji M. Price for the District of Hawaii. “My office will continue to hold law enforcement officers like him accountable for criminal conduct that undermines the well-deserved respect that many of our law enforcement officials earn on a day-to-day basis in Hawaii.”
“Sadly, this officer abused his authority and violated the trust of the public he had been sworn to serve. But our community must remain confident that no one is above the law and the FBI investigates these matters vigorously. When officials violate the public’s trust, they undermine the hard work of all law enforcement officers here in Hawai’i and across the nation," said Special Agent in Charge Eli S. Miranda of the FBI’s Honolulu Field Office.
According to court documents, on Jan. 28, 2018, Rabago, a police officer with the Honolulu Police Department, was on duty when he conspired with another officer to force an individual to lick a urinal in a public bathroom.
Rabago’s co-defendant, former HPD officer Reginald Ramones, 43, pleaded guilty to misprision of a felony on Sept. 25, 2019. As part of that guilty plea, Ramones admitted that he was aware that Rabago committed a federal felony on Jan. 28, 2018, but Ramones failed to notify federal authorities of Rabago’s illegal conduct. Ramones further admitted that he was present for a separate and unrelated incident prior to January 2018 in which Rabago made another individual place his head in a public bathroom toilet in order to avoid arrest.
The conspiracy charge carries a maximum penalty of ten years imprisonment and a $250,000 fine; and the deprivation of rights under color of law charge carries a maximum penalty of one-year imprisonment and a $100,000 fine.
This case was investigated by the Honolulu Division of the FBI. It is being prosecuted by Trial Attorney Timothy Visser of the Justice Department’s Civil Rights Division and Assistant U.S. Attorney Thomas Brady for the District of Hawaii.
Holland Man Sentenced to More Than Five Years in Prison for Obstruction of JusticeRead the Press Release
Mark Baker Used Facebook to Publicize and Threaten Cooperating Witnesses in a Methamphetamine Trafficking Conspiracy Prosecution
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew B. Birge announced today that on December 16, 2019, Mark Adrian Baker, 27, of Holland, Michigan, was sentenced to serve 63 months in the Federal Bureau of Prisons for aiding and abetting obstruction of justice. U.S. District Judge Paul L. Maloney also imposed a 3-year period of supervised release. In sentencing Baker, Judge Maloney made clear that this was a serious offense that threatened the very essence of the federal criminal justice system.
On July 31, 2019, Baker pleaded guilty to endeavoring to influence, obstruct, or impede the due administration of justice by publicizing the names of witnesses in an underlying methamphetamine trafficking conspiracy prosecution in a corrupt effort to impede their testimony. Specifically, at the direction of the methamphetamine trafficking conspiracy’s leader, Matthew James Boeve, who was in custody at the Newaygo County Jail awaiting trial on federal drug charges, Baker posted to Facebook lists of witness names, and photographs of police reports with the names of witnesses underlined and with the following captions:
"LETS PLAY A GAME… HOW MANY SNITCHES DOES IT TAKE TO CATCH Matt Boeve??? READ THE DAMN FACTS AND STOP BEING SOME DAMN TWACKS!!!! #freemattboeve #doingitright #snitchbitches"
"Share and tag so my boy boeve ppls can all see this bullshit in the papers on his case… [wink emoji] [rat emoji] #freemattboeve … #breathlessly … #goviralwithit"
The threatening posts caused at least one cooperating witness to contact law enforcement, fearing retaliation for his or her cooperation in the methamphetamine conspiracy prosecution. The posts are shown below, but with the government having subsequently obscured the witness names.
In announcing the sentence, U.S. Attorney Birge stated, "Witnesses who come forward to testify in criminal prosecutions play a vital role in our justice system. When we work with witnesses, we make their safety a priority. Any threats, harassment, or attempts to obstruct or prevent their testimony will be met with serious consequences, including years in federal prison."
"WEMET takes witness safety and protection very seriously," said D/F/Lt. Andy Fias, WEMET Section Commander. "We appreciate the swift action taken by the U.S. Attorney’s Office – Western District of Michigan in assisting us in this investigation. This case brought another organization to justice, responsible for trafficking large quantities of crystal methamphetamine into west Michigan. It is just another great example of the partnership we have with our federal partners in law enforcement."
On September 3, 2019, Boeve pleaded guilty to conspiracy to distribute and possess with intent to distribute 500 grams or more of methamphetamine, and aiding and abetting obstruction of justice for his role in the threatening Facebook posts. Boeve is scheduled to be sentenced on January 6, 2020, and faces a mandatory minimum term of 10 years in prison and a maximum term of life in prison.
The Holland Police Department, the West Michigan Enforcement Team (WEMET) of the Michigan State Police, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) investigated this case and the underlying methamphetamine trafficking conspiracy. Assistant United States Attorney Daniel T. McGraw prosecuted the case.
Havertown Doctor Pleads Guilty to Unlawfully Importing Foreign, Injectable Drugs and Unlawfully Distributing OxycodoneRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Thomas J. Whalen, D.O., 65, of Havertown, Pennsylvania, pled guilty to charges related to his unlawful importation of foreign, non-FDA approved injectable medications that he falsely billed to health care benefit programs in the amount of nearly $2.3 million. The Delaware County rheumatologist also pleaded guilty to unlawfully distributing oxycodone. Whalen knowingly prescribed oxycodone to patients actively using illicit drugs, including heroin and cocaine.
Whalen pled guilty to an Information charging him with one count of health care fraud, one count of importation contrary to law, and two counts of distribution of a controlled substance. He is scheduled to be sentenced on April 1, 2020, by U.S. District Judge Timothy J. Savage, who accepted his plea. Whalen faces a maximum possible sentence of 70 years’ imprisonment, a $2,500,000 fine, 3 years’ supervised release, and a $400 mandatory special assessment.
Whalen owned and operated Rheumatology Consultants, P.C., doing business as Whalen Rheumatology Group, with locations in Havertown, PA, Exton, PA, and Wilmington, DE. As part of his practice, Whalen used medications administrated by injection and infusion to treat his patients. These medications, including Remicade Synvisc, Synvisc-One, Orencia, Prolia/Xgeva, and Boniva, are made of living cells and are expensive. Rather than purchase FDA-approved versions of these medicines from authorized distributors, Whalen devised a scheme to purchase much cheaper foreign, non-FDA approved versions of these medications. Unbeknownst to his patients, Whalen injected or infused his patients with the non-FDA approved medications and then billed federal health care programs, pocketing approximately $1.1 million in illicit gains.
Whalen also prescribed oxycodone to patients abusing illicit drugs. The Information lists two patients to whom Whalen prescribed oxycodone despite receiving multiple urine drug screening results for each that revealed that the patients were simultaneously abusing cocaine and heroin.
“This guilty plea from Dr. Whalen is the latest example of my Office’s commitment to stopping health care fraud and diversion,” said U.S. Attorney McSwain. “We work closely with our partners in the Fraud Section’s Health Care Fraud Strike Force and will continue to root out fraud in the medical profession. Specifically, we are committed to stopping criminals in the medical profession from stealing from public programs, threatening the safety of patients, and pushing illegal pills onto the streets.”
“Dr. Whalen placed the health of countless patients at risk by administering non-FDA approved drugs. Such medications are not paid for by Medicare due to the risk they may pose to patient health,” said Special Agent in Charge Maureen R. Dixon of the U.S. Department of Health and Human Services Office of Inspector General. “Our watchdog agency, along with our law enforcement partners, will continue to protect the public and root out dangerous and costly fraud schemes.”
“Dr. Whalen has pleaded guilty to the unlawful distribution of oxycodone, which is a powerful prescription painkiller. Of particular concern is that he knowingly prescribed oxycodone to patients that were abusing illegal street drugs such as cocaine and heroin,” said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “Doctors have a professional and moral obligation to treat patients that are struggling with substance use disorder – not enable it.”
“Dr. Whalen imported and used non-FDA approved drugs from Turkey and the United Kingdom, without any regard for the safety and health of his patients. In addition, he prescribed powerful pain killers to patients already struggling with addiction,” said William Walker, Acting Special Agent in Charge of HSI Philadelphia. “Doctors take an oath to do no harm. This oath was clearly betrayed by not only committing healthcare fraud for his own financial gain, but by contributing to our nation’s opioid crisis.” Walker continued, “Thanks to our partnership with Customs and Border Protection, we have brought one more person to justice, and many more individuals out of harm’s way.”
“When healthcare professionals import unsafe, untested prescription drugs from outside the drug supply chain that the FDA oversees, the American public health and trust are jeopardized,” said Mark S. McCormack, Special Agent in Charge, FDA Office of Criminal Investigations Metro Washington Field Office. “The FDA is committed to pursuing and bringing to justice those who attempt to subvert the safeguards of our closed drug supply by distributing unapproved products.”
The U.S. Department of Health and Human Services, Office of Inspector General, the Drug Enforcement Administration, Homeland Security Investigations, the Food and Drug Administration, Office of Criminal Investigations, and the Federal Bureau of Investigation investigated the case. Trial Attorney Debra Jaroslawicz with the Criminal Division’s Fraud Section and Assistant United States Attorney Paul J. Koob are prosecuting the case.
Hattiesburg Man Sentenced to over 8 Years in Federal Prison under Project EJECT for Illegally Possessing a FirearmRead the Press Release
Hattiesburg, Miss. – Jordan Reshard Poole, 29, of Hattiesburg, was sentenced today by Senior U.S. District Judge Keith Starrett to 100 months in federal prison, followed by three years of supervised release, for being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst, Special Agent in Charge Michelle A. Sutphin with the Federal Bureau of Investigation, and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives. Poole was also ordered to pay a $4,000 fine.
On July 17, 2017, Poole was found in possession of a firearm after police engaged with Poole and another individual in a high speed chase in Lamar County. Poole was previously convicted of multiple felonies in Forrest County, including arson. He most recently was found guilty of felony burglary and was sentenced in January 2015 to two years of confinement, consecutive to an earlier felony sentence.
Poole pled guilty before Judge Starrett on July 31, 2019. In sentencing Poole, Judge Starrett cited the seriousness of the facts leading up to Poole’s arrest.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, and Hattiesburg Police Department investigated the case. The case was prosecuted by Assistant United States Attorney Andrew W. Eichner.
Hattiesburg Man Pleads Guilty under Project EJECT to Illegally Possessing Firearm and Trafficking MethamphetamineRead the Press Release
Hattiesburg, Miss. – Brian McIver, 49, of Hattiesburg, pled guilty today before Senior U.S. District Judge Keith Starrett to being a felon in possession of a firearm and possessing methamphetamine with the intent to distribute, announced U.S. Attorney Mike Hurst and Special Agent in Charge Michelle A. Sutphin with the Federal Bureau of Investigation.
McIver was previously convicted of felonious possession of a controlled substance (methamphetamine) in Forrest County in 2007. On April 29, 2019, during a traffic stop on the campus of the Forrest General Hospital, McIver was found in possession of a firearm as well as methamphetamine. The methamphetamine was found with a scale.
McIver will be sentenced by Judge Starrett on April 1, 2020, at 9:45 a.m. and faces a maximum penalty of 30 years in federal prison for the two charges.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
The Federal Bureau of Investigation, the Mississippi Bureau of Narcotics, and the Forrest General Hospital Department of Public Safety Campus Police investigated the case. The case was prosecuted by Assistant United States Attorney Andrew W. Eichner.
Gulfport Man Sentenced to Almost 18 Years for Transporting Images of Minors Engaged in Sexually Explicit ConductRead the Press Release
Gulfport, Miss. – Jesse Allen Nichols, 37, of Gulfport, was sentenced today by Senior U.S. District Judge Louis Guirola Jr. to serve 210 months in federal prison, followed by 20 years of supervised release, for transporting images of minors engaged in sexually explicit conduct, announced U.S. Attorney Mike Hurst and Jere T. Miles, Special Agent in Charge of Immigration and Customs Enforcement’s Homeland Security Investigations in New Orleans. Nichols was also ordered to pay restitution in the amount of $24,000 to victims and a special assessment of $5,000 under the Justice for Victims of Trafficking Act of 2015.
“Those who peddle in obscene images of children will feel the full force and weight of the law upon their shoulders. I want to thank our partners at Homeland Security and NCMEC for helping us bring this reprehensible criminal to justice. We will be unrelenting in ensuring that the least among us are protected and safe,” said U.S. Attorney Hurst.
In February 2018, Nichols transported images of minors engaging in sexually explicit conduct to “Dropbox,” on online storage medium, which resulted in the National Center for Missing and Exploited Children (NCMEC) issuing a CyberTipline Report to Homeland Security Investigations containing at least 55 videos of minors engaging in sexually explicit conduct. Further investigation revealed the email and user name of Nichols and it was determined that Nichols’s cell phone was used in transporting the images of the minors.
Nichols was indicted on December 12, 2018. When arrested on the indictment, Nichols admitted to the use of his cellular telephone to access various social media platforms and online storage mediums. He affirmed the use of his cellular telephone and the email identified in the CyberTipline Report, and that, through such access on his cellular device, he stored images and videos of child pornography. Nichols pled guilty before Judge Guirola on August 1, 2019.
The case was investigated by Homeland Security Investigations. It was prosecuted by Assistant U.S. Attorney Andrea Jones and Trial Attorney Ralph A. Paradiso with the Department of Justice Criminal Division’s Child Exploitation and Obscenity Section.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Government obtains $10.1 million in judgments to resolve Medicaid fraud claims in False Claims Act complaintRead the Press Release
BRUNSWICK, GA: A Brunswick Medicaid provider and its owner have been ordered to pay more than $10 million to settle a civil fraud complaint filed by the federal government and the state of Georgia.
The judgments, approved by the U.S. District Court for the Southern District of Georgia, awards the government $9.7 million against Brunswick-based Miracle Home Care, Inc. and $400,000 against its owner, Shashicka Tyre-Hill of Brunswick, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia.
The judgments are from a civil complaint filed in July 2018 alleging that Miracle Home Care violated the False Claims Act and the Georgia False Medicaid Claims Act with claims for reimbursement for thousands of false or fraudulent non-emergency transportation and adult day health services. The government’s complaint alleged that Miracle also falsified thousands of records to cover up their false Medicaid claims. Miracle and Tyre-Hill consented to judgments against them and to the amounts of the judgments.
“This result sends a message to would-be unscrupulous providers of healthcare,” said United States Attorney Bobby L. Christine. “Anyone who defrauds federally funded health care programs will be met with meaningful consequence. Our office is committed to continuing to partner with the Georgia Medicaid Fraud Control Unit to protect the integrity of the Georgia Medicaid Program.”
“We are proud to have worked with the U.S. Attorney’s Office for the Southern District of Georgia on this case to hold those who steal taxpayer dollars accountable,” said Georgia Attorney General Chris Carr. “This result is the culmination of years of collaboration between our office, the United States Attorney’s Office and HHS-OIG, and the results should send a strong signal that we will aggressively pursue those at fault for unnecessarily driving up the costs of our healthcare programs.”
“The act of falsifying records in order to steal millions of dollars from Medicaid, as alleged in this matter, will not be tolerated,” said Derrick L. Jackson, Special Agent in Charge for the U.S. Department of Health and Human Services Office of Inspector General. “The OIG will continue to work with our partners at the United States Attorney’s Office and the Georgia Medicaid Fraud Control Unit to safeguard vital healthcare funds.”
United States Attorney Christine and Attorney General Carr lauded the diligent work of the investigatory team, led by Special Agent David J. Graupner of the Department of Health and Human Services Office of Inspector General and Investigator Sadarius A. Miley of the Georgia Medicaid Fraud Control Unit. The United States was represented by Assistant U.S. Attorneys Jonathan A. Porter and Patrick J. Schwedler. The state of Georgia was represented by Assistant Attorney General James Mooney.
Garden City Man Sentenced in Federal Court for StalkingRead the Press Release
BOISE - Frank Abbott Sweeney, 76, of Garden City, Idaho, was sentenced to 51 months in federal prison for using the mail to stalk six victims, U.S. Attorney Bart M. Davis announced today. U.S. District Judge David C. Nye also sentenced Sweeney to three years of supervised release and ordered Sweeney to pay a $6,000 fine. Sweeney pled guilty to six counts of stalking on August 21, 2019.
According to court records, the investigation began in December 2015 after Sweeney began sending harassing and unwanted postcards to four victims at their home and business addresses. The postcards were prepaid postcards that had been typed using a typewriter. The postcards contained strong racial epithets, derogatory language, and insults to the victims. Sweeney wrote in the postcards that he had been surveilling the victims and had obtained their personal information. Sweeney sent postcards to victim’s neighbors purporting to be from the Idaho Sex Offender Registry falsely accusing one of the victims of being a convicted sex offender. Sweeney mailed postcards to various inmates around the country purporting to be from the victims and requesting return correspondence. In response, the victims received numerous letters from notorious serial killers and criminals. Sweeney sent a postcard to the Idaho Black History Museum purporting to be from one of the victims. The postcard contained disturbing racial slurs. Sweeney continued to mail harassing postcards to the victims for three years.
In 2018, after Sweeney began mailing similar harassing postcards to two additional victims, law enforcement identified Sweeney as the perpetrator. During a later interview, Sweeney admitted to mailing the postcards and to hiring a private investigator to obtain personal information about the victims. Sweeney said that he decided to send the postcards to the victims after having altercations with the victims over a parking spot at the Garden City post office and a Garden City Wells Fargo bank drive-through window. Neither Sweeney nor the victims knew each other before these altercations.
This case was prosecuted in federal court because Sweeney used the U.S. mail to commit his crimes. This case was investigated by United States Postal Inspection Service, Ada County Sheriff’s Office, and Boise Police Department.
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Franklin County Arkansas Sheriff Charged with Assaulting Three Individuals in CustodyRead the Press Release
Fort Smith, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas announced today that a federal grand jury returned an indictment on November 20, 2019, charging Anthony Boen, the current Sheriff of Franklin County, Arkansas, with federal civil rights offenses. Boen, age 49, is charged with three counts of deprivation of rights under color of law, in violation of Title 18, United States Code, Section 242.
The indictment alleges that Boen used unreasonable force to punish pretrial detainees on three separate occasions. On Sept. 14, 2017, Boen allegedly punched a detainee multiples times in the head and body while the detainee was handcuffed and shackled in the back of a police car. The indictment further alleges that, on Nov. 21, 2018, Boen pushed a detainee onto the floor and grabbed his hair or beard during an interrogation. Two weeks later on December 3, 2018, Boen allegedly struck a detainee multiple times in the head while the detainee was shackled to a bench inside the Franklin County Jail and was not resisting. The indictment alleges that all three detainees suffered bodily injury as a result of Boen’s actions.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendant is presumed innocent unless proven guilty. If convicted, Boen faces a maximum sentence of 30 years in prison, three years of supervised release, and a fine of up to $250,000.
The case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Brandon T. Carter of the Western District of Arkansas and Civil Rights Division Trial Attorney Michael J. Songer.
Four International Drug Traffickers Charged with Conspiring to Import Cocaine into the United States and Related Firearms OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Wendy Woolcock, Special Agent in Charge of the Special Operations Division of the U.S. Drug Enforcement Administration (“DEA”), announced that AMADO BELTRAN BELTRAN, a/k/a “Don Amado,” OTTO RENE SALGUERO MORALES, a/k/a “Otto Salguero,” RONALD ENRIQUE SALGUERO PORTILLO, a/k/a “Ronald Salguero,” and FERNANDO FELIX RODRIGUEZ, a/k/a “Don Fernando,” were charged in a Superseding Indictment in Manhattan federal court with conspiring to import cocaine into the United States and related weapons offenses involving the use and possession of machineguns and destructive devices. The case is assigned to U.S. District Judge P. Kevin Castel.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, these defendants conspired with the corrupt Honduran officials they bribed to facilitate the importation into the U.S. of large quantities of cocaine for the Sinaloa cartel. They allegedly provided security personnel – armed with machineguns and RPGs – for the drug shipments. Thanks to the DEA, the defendants are now facing potential lengthy prison sentences if convicted.”
DEA Special Agent in Charge Wendy Woolcock said: “Following the recent conviction of former Honduran congressman Tony Hernandez, today’s charges are further proof that even well-connected drug traffickers will be held to account. These alleged criminals will stop at nothing to protect their shipments of poison, often resorting to bribery, intimidation, and even violence. The DEA is committed to doing all it can to combat the threat of drug-trafficking and stop these dangerous substances from flooding our communities and harming Americans.”
As alleged in the Superseding Indictment unsealed in federal court and statements made in court filings and proceedings[1]:
Beginning in at least approximately 2004, BELTRAN BELTRAN, SALGUERO MORALES, SALGUERO PORTILLO, and FELIX RODRIGUEZ worked together and with others – including, at times, former Honduran congressman Juan Antonio Hernandez Alvarado, a/k/a “Tony Hernandez,” and the leadership of Mexico’s Sinaloa Cartel – to transport large shipments of cocaine. The defendants and other drug traffickers received the cocaine shipments in Honduras via air and maritime routes, which were typically dispatched from Colombia and Venezuela. For protection from official interference, and in order to facilitate the safe passage of the cocaine through Honduras, Guatemala, and Mexico so that the drugs could be imported into the United States, the defendants and others facilitated the payment of bribes to public officials, including Hernandez Alvarado and other Honduran politicians. The defendants and others also provided armed security for the drugs, including individuals carrying machineguns and rocket-propelled grenade launchers.
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BELTRAN BELTRAN, 57, of Mexico, SALGUERO MORALES, 58, of Guatemala, SALGUERO PORTILLO, 49, of Guatemala, and FELIX RODRIGUEZ, 45, of Mexico, are charged with (1) conspiring to import cocaine into the United States, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; (2) using and carrying machine guns and destructive devices during, and possessing machine guns and destructive devices in furtherance of, the cocaine-importation conspiracy, which carries a mandatory minimum sentence of 30 years in prison and a maximum sentence of life in prison; and (3) conspiring to use and carry machine guns and destructive devices during, and to possess machine guns and destructive devices in furtherance of, the cocaine-importation conspiracy, which carries a maximum sentence of life in prison.
Mr. Berman praised the outstanding investigative work of the DEA’s Special Operations Division Bilateral Investigations Unit, New York Strike Force, and Tegucigalpa Country Office, as well as the Office of International Affairs of the Justice Department’s Criminal Division.
The case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Michael K. Krouse, Stephanie Lake, Daniel G. Nessim, Benjamin W. Schrier, and Kyle A. Wirshba are in charge of the prosecution.
The charges contained in the Superseding Indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment, and the description of the Superseding Indictment and statements and filings in court set forth herein, constitute only allegations, and every fact described herein should be treated as an allegation as to the defendants charged in the Superseding Indictment.
Former school employee sentenced on child pornography chargeRead the Press Release
McALLEN, Texas – A 43-year-old Roma man has been ordered to federal prison following his conviction of possessing child pornography, announced U.S. Attorney Ryan K. Patrick.
Jesus Amado Garcia pleaded guilty Oct. 4.
Today, U.S. District Judge Randy Crane sentenced him to 84 months of federal imprisonment and further ordered him to pay $40,000 in restitution to known victims. He will also serve five years on supervised release following completion of his prison term during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. Garcia will also be ordered to register as a sex offender.
In January, law enforcement initiated an investigation into the sharing of child pornography which led them to Garcia’s address in Roma. At the time, the Roma Independent School District employed him as a maintenance worker.
On April 23, authorities executed a search warrant at Garcia’s home, at which time they seized multiple digital devices. The investigation resulted in the discovery of approximately 236 images and 27 videos of child pornography.
He 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 - Rio Grande Valley Child Exploitation Task Force conducted the investigation.
Assistant U.S. Attorney Laura M. Garcia prosecuted the case which was brought as part of Project Safe Childhood(PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Former Yellowstone Partners’ CEO Pleads GuiltyRead the Press Release
POCATELLO - David Hansen, 48, of Idaho Falls, pleaded guilty today to wire fraud, U.S. Attorney Bart M. Davis announced. Pursuant to a written plea agreement filed with the court, Hansen pleaded guilty to count 16 of the superseding indictment. The trial set for January 21, 2020 was vacated.
According to court records, Hansen was the Chief Executive Officer and a 90-percent partner in Yellowstone Partners, LLC, an investment management firm headquartered in Idaho Falls. Clients of Yellowstone Partners entrusted their monies to Yellowstone Partners to invest and manage on their behalf. In exchange, Yellowstone Partners earned fees for its services. Yellowstone Partners’ fees were set forth in investment agreements between Yellowstone Partners and its clients.
According to court records, Yellowstone Partners’ clients’ monies were kept in accounts at third party custodians. Yellowstone Partners directed how the monies in client accounts were invested and how they were disbursed. This included submitting email billing requests to a third party custodian to take fees from client accounts and to deposit them into Yellowstone Partners’ own accounts.
According to court records, from 2008 through April of 2016, Hansen knowingly and intentionally devised a scheme to defraud clients of Yellowstone Partners by obtaining money or property by means of false and fraudulent pretenses, representations, and promises. Specifically, the scheme was to fraudulently bill clients for fees to which Yellowstone Partners was not entitled under the terms of the investment agreements or otherwise. Through this overbilling scheme, Hansen fraudulently obtained client funds from a third party custodian and used them to enrich himself and to fund Yellowstone Partners’ operations. For certain identified victims, Hansen personally submitted, or was carbon-copied, on 50 fraudulent overbilling requests to a custodian, which resulted in a loss of $2,675,856. For each of the overbillings, Hansen acted with the intent to deceive or cheat the victims.
As part of the plea agreement, Hansen agreed to pay full restitution to the victims of the wire fraud scheme, in an amount to be determined by the court at the time of sentencing. Further, Hansen agreed to a forfeiture judgment in the amount of restitution ordered by the court at the time of sentencing. Finally, Hansen agreed to cooperate with an Internal Revenue Service civil tax examination and assessment, and pay any unpaid tax due and owing, and accrued interest for his 2012 and 2013 Form 1040 joint income tax returns.
“Mr. Hansen was entrusted with other people’s money. He breached their trust. And his conduct over a prolonged period of time undermines the confidence of everyone who entrusts their money with others to invest,” said U.S. Attorney Davis. “By this prosecution and guilty plea, we hope to strongly deter others in Hansen’s position from engaging in the same behavior, and assure the investing public that those who do will be held fully accountable.”
“High-ranking corporate officials, such as Mr. Hansen, hold positions of trust not only in their companies, but also in the eyes of the public,” said IRS-CI Special Agent in Charge Andy Tsui. “IRS Criminal Investigation is committed to investigating individuals who abuse that trust by fraudulently using their corporations as personal piggy banks.”
For the wire fraud count, Hansen faces a statutory maximum of 20 years in prison, a $250,000 fine, and up to 3 years of supervised release.
Sentencing for Hansen is currently set for March 31, 2020, before Chief U.S. District Judge David C. Nye at the federal courthouse in Pocatello.
The case was investigated by Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigation Division.
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Former Vice President Pleads Guilty to Embezzling $100,000+ from BankRead the Press Release
TOPEKA, KAN. - A former vice president of the First National Bank of Harveyville, Kan., pleaded guilty to a federal charge of embezzlement, U.S. Attorney Stephen McAllister said today. The defendant also agreed to make restitution of approximately $107,175
Debra Kay Converse, 60, Harveyville, Kan., pleaded guilty Monday to one count of embezzlement. In her plea agreement, Converse admitted that in April 2019 the president of First National Bank reported to the Wabaunsee County Sheriff that he believed Converse had embezzled from the bank while she was vice president. The bank’s investigation focused on what Converse claimed were glitches in software. On March 29, 2019, Converse resigned from the bank and the bank initiated an audit. The bank also learned that Converse, while serving as City Treasurer for Harveyville wrote $5,700 in checks payable to First National Bank for processing residents’ utility payments. Rather than crediting the revenue to the bank, she cashed the checks.
Sentencing is set for March 9. She could face up to 30 years in federal prison. McAllister commended the FBI and Assistant U.S. Attorney Richard Hathaway for their work on the case.
Former Suffolk County District Attorney Thomas J. Spota and Government Corruption Bureau Chief Christopher McPartland Convicted of Obstructing a Federal Civil Rights InvestigationRead the Press Release
Former Suffolk County District Attorney Thomas J. Spota and Christopher McPartland, the former Chief of Investigations and Chief of the Government Corruption Bureau of the Suffolk County District Attorney’s Office (SCDAO), were convicted today by a federal jury in Central Islip, New York, of all four counts of the indictment charging them with conspiracy to tamper with witnesses and obstruct an official proceeding, witness tampering, obstruction of justice, and being accessories after-the-fact to former Suffolk County Police Department (SCPD) Chief of Department James Burke’s deprivation of a prisoner’s civil rights. The verdict followed a six-week trial before United States District Judge Joan M. Azrack. When sentenced, Spota and McPartland each face up to 20 years’ imprisonment.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the verdicts.
“When a sitting District Attorney and the Chief of the Government Corruption Bureau attempt to obstruct a federal grand jury investigation, it is nothing short of an attack on the justice system itself, and it will not be tolerated by the Justice Department. As prosecutors, the defendants were obligated to support the law they enforce, but the criminal actions taken by these men made a mockery of that obligation. Thankfully, the rule of law has prevailed, and the defendants now must face the consequences of their actions, just like any other defendant who has broken the law,” stated United States Attorney Donoghue.
“Spota and McPartland violated the law by obstructing a federal investigation into the assault on an individual’s civil rights,” stated FBI Assistant Director-in-Charge Sweeney. “Today they are reminded that positions of power come with a great responsibility to respect both the law and public trust. Any abuse of this privilege will be prosecuted to the fullest extent.”
As proven at trial, Spota and McPartland, the top prosecutors in Suffolk County, abused their leadership positions and authority within the SCDAO to obstruct and attempt to obstruct the FBI and federal grand juries investigating the assault of a SCPD prisoner, Christopher Loeb, in order to protect then-Chief Burke. On December 14, 2012, Loeb was arrested on larceny charges, among other offenses, in connection with his burglarizing Burke’s department-issued vehicle and stealing Burke’s gun belt and ammunition, as well as a duffel bag containing cigars, sex toys, a pornographic video and a bottle of Viagra. Loeb was transported to the Fourth Precinct in Hauppauge, New York, where he was assaulted by Burke and other members of the SCPD, while handcuffed and shackled to the floor.
The evidence at trial consisted of SCPD and SCDAO documents and records, voluminous telephone records, cell site records and testimony from 30 witnesses, including multiple cooperating witnesses. One such witness was James Hickey, a retired SCPD Lieutenant who was part of the “Inner Circle” that included Spota, McPartland and Burke. Hickey and several other cooperating and immunized witnesses detailed the defendants’ use of intimidation and threats to pressure witnesses to withhold information, refuse to cooperate with law enforcement, and lie under oath in order to thwart the federal investigation of the Loeb assault. Hickey supervised the SCPD’s elite Criminal Intelligence Unit, which Burke referred to as his “Palace Guards.” Three detectives from this unit participated with Burke in the assault of Loeb. Hickey testified that Burke told him the Intel guys “did themselves proud,” they “beat the hell” out of Loeb, and it was “just like the good old days.”
Loeb’s case was handled by the SCDAO’s Government Corruption Bureau, supervised by McPartland, although the charges would not typically be handled by that bureau, in an attempt to control the flow of information and cover-up the assault. In February 2013, after Loeb’s attorney disclosed that her client had been assaulted at the Fourth Precinct, Hickey testified that McPartland advised him to “keep the guys quiet and tight … it’s imperative we keep Jimmy [Burke] out of jail, so we needed to keep the guys quiet and in line.” Hickey testified that Spota regularly pressured him to keep the Intel detectives quiet by repeatedly inquiring – “Are they holding up?” “Are they towing the line?” – conveying the message that they should refuse to cooperate with the federal investigation and, if necessary, lie to protect Burke.
In April 2013, the United States Attorney’s Office for the Eastern District of New York and the FBI initiated a federal grand jury investigation into the assault of Loeb.
On June 25, 2013, FBI Special Agents served members of the SCPD with federal grand jury subpoenas. That same day, defendants Spota and McPartland learned of the existence of the federal investigation. McPartland instructed Hickey to debrief his Intel detectives and learn what was said by the FBI agents serving the subpoenas, and find out who might be cooperating with them. However, because of the threats and intimidation, none of the Intel detectives cooperated with the investigation, and it was closed eight months later, in December 2013. Through the efforts of the defendants and Burke, the initial grand jury investigation of Burke’s civil rights violation was successfully derailed.
In or about mid-2015, Spota and McPartland learned that the federal investigation had been reopened, and that its scope had expanded to include an investigation of the obstruction of justice and witness tampering offenses. The defendants reacted swiftly to obstruct it. Hickey testified that at a meeting with the defendants in Spota’s office on June 4, 2015, Spota asked him, “Who do you think has flipped?” In discussing which of the detectives might be a “rat,” cooperating with federal investigators, Spota said about one of the likely cooperators, “If he talks, he’s dead. He will never work in Suffolk County again.” In that same meeting, McPartland told Hickey to pass along a message to the Intel detectives, threatening them with prosecution if they cooperated with the investigation.
The defendants’ efforts to thwart the grand jury investigations ultimately failed. In early December 2015, a federal grand jury in the Eastern District of New York indicted Burke. Burke pleaded guilty approximately two months later, admitting to his involvement in both the deprivation of Loeb’s civil rights and the conspiracy to obstruct justice. In November 2016, he was sentenced to 46 months’ in prison.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Nicole Boeckmann, Lara Treinis Gatz, Justina L. Geraci and Michael R. Maffei are in charge of the prosecution, and were assisted by Assistant United States Attorney John Durham and Investigator William Hessle.
The Defendants:
THOMAS J. SPOTA
Age: 78
Mount Sinai, New YorkCHRISTOPHER McPARTLAND
Age: 54
Northport, New YorkE.D.N.Y. Docket No. 17-CR-587 (JMA)
Former Newport News Teacher Sentenced for Child PornographyRead the Press Release
NEWPORT NEWS, Va. – A former teacher with the Newport News school system was sentenced today to five years in prison for receiving and uploading images of child sexual abuse.
According to court documents, in March of 2018, Michael Scott Porter, 51, of Newport News, uploaded images of child sexual abuse to a Microsoft OneDrive account. Microsoft reported the incident to the National Center for Missing and Exploited Children (NCMEC) consistent with federal law. Search warrants were subsequently obtained for the account and home of Porter, and during the search, law enforcement discovered over 2400 images of child sexual abuse in the Microsoft OneDrive account as well as on other devices in Porter’s home.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by Senior U.S. District Judge Robert G. Doumar. Assistant U.S. Attorney Lisa R. McKeel prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:19-cr-74.
Former Navy Petty Officer Sentenced to 97 Months for Receipt of Child PornographyRead the Press Release
NEW ORLEANS, LOUISIANA – DON EDWARD PANNELL, II (“PANNELL”), age 32, of Harvey, Louisiana was sentenced today for Receipt of Child Pornography, announced United States Attorney Peter G. Strasser.
The case against Petty Officer 2nd Class DON EDWARD PANNELL, II developed because of an undercover child exploitation investigation conducted by special agents with the U.S. Department of Homeland Security, Homeland Security Investigations (“HSI”). At the time of this investigation, PANNELL was a Petty Officer 2nd Class in the U.S. Navy assigned to Fleet Readiness Center Mid-Atlantic Detachment, New Orleans. On April 2, 2018, HSI special agents along with special agents with the Naval Criminal Investigative Service and the Louisiana Bureau of Investigation seized electronic evidence from PANNELL’s Harvey apartment and took PANNELL into custody. According to documents filed in federal court, HSI computer forensic examiners located over 1,000 images and 125 videos depicting the sexual victimization of children on the defendant’s homebuilt tower computer. The images and videos depicted pre-pubescent girls, including toddlers, engaged in sexual acts with adults.
PANNELL was sentenced to 97 months by United States District Judge Greg G. Guidry. PANNELL was also sentenced to a period of 5 years of supervised release after his term of imprisonment, and ordered to pay $24,000.00 in restitution. In addition, PANNELL will be required to register as a sex offender pursuant to the Sex Offender Registration and Notification Act.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
U.S. Attorney Strasser praised the work of the U.S. Department of Homeland Security, Homeland Security Investigations, the Naval Criminal Investigative Service, and the Louisiana Bureau of Investigation in investigating this matter. The prosecution of this case is being handled by Project Safe Childhood Coordinator and Supervisor of Financial Crimes Unit, Assistant U.S. Attorney Brian M. Klebba.
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Former Louisville Armored Truck Driver SentencedRead the Press Release
LOUISVILLE, Ky. – Former GardaWorld armored truck driver Mark Nicholas Espinosa has been sentenced to 37 months imprisonment and ordered to pay $932,285.22 in restitution, for five charges related to the theft of more than $900,000 from the vehicle, announced United States Attorney Russell Coleman.
“When the FBI, LMPD, and U.S. Attorney’s Office collaborate as partners, the people of Louisville are the beneficiaries and thieves such as Mr. Espinosa pay the price,” said U.S. Attorney Russell Coleman.
Espinosa was charged by a Louisville Grand Jury in February with theft from a common carrier, bank robbery, interstate transportation of stolen money, monetary transactions involving stolen money, and money laundering.
According to a plea agreement, in late 2018 Espinosa began creating identification documents for "Sam Smith" on his computer. On December 5, 2018, Espinosa was working with a partner in a bullet-proof armored truck, collecting money from various Louisville businesses. The duo arrived at the Jefferson Mall in Louisville, and Espinosa's partner told Espinosa that he would pick up cash from customers inside the Mall, and that Espinosa should drive the truck and meet him at the exit on the other side of the Mall. When Espinosa's partner finished his pick-ups and exited the Mall, Espinosa was not there.
Shortly thereafter the Garda World truck was found abandoned in the Mall parking lot. Espinosa was missing, but his gun, backpack, and cell phone battery were located inside the truck. Also missing was $932,285.22 in cash from the back of the truck. Espinosa stole the money and fled Kentucky to Connecticut, driving through Ohio and Pennsylvania, in an attempt to evade law enforcement. Espinosa was ultimately arrested in Connecticut, living under the name Sam Smith, and $892,737.89 was found in Espinosa's Connecticut apartment.
The case was prosecuted by Assistant United States Attorneys David Weiser and Rob Bonar, and was investigated by the Louisville Metro Police Department Robbery Unit and the Federal Bureau of Investigation (FBI).
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Former CB&T City Bank President, Co-Conspirators Involved in $5+ Million Fraud Scheme Sentenced to Prison, Ordered to Pay Back MillionsRead the Press Release
Macon, Ga. – Three co-conspirators involved in a multi-million dollar scheme to defraud millions from Citizens Bank and Trust (CB&T) have been sentenced for their crimes, announced Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. On Monday, December 16, 2019, former CB&T City Bank President McDonald Hardin, 57, of Kathleen, Georgia was sentenced to 60 months imprisonment, three years supervised release and ordered to pay $1,437,651.07 in restitution to CB&T and $1,900,000 in restitution to Progressive Insurance after pleading guilty on May 2, 2019 to count one of a 14 count indictment charging him with conspiracy to commit bank fraud. His co-conspirator, Steve Stokeling, 55, formerly of Warner Robins, Georgia, was sentenced to 78 months imprisonment, five years supervised release and ordered to pay $28,832.15 in restitution to CB&T after pleading guilty on May 2, 2019 to count nine of a 14 count indictment charging him with bank fraud. This morning, the third co-conspirator, Joseph Askew, 43, of Perry, Georgia, was sentenced to 18 months imprisonment, one year supervised release and ordered to pay $1,437,651.07 in restitution to CB&T and $120,765.10 in restitution to Progressive Insurance after pleading guilty on January 30, 2018 to one count information charging the defendant with conspiracy to commit bank fraud. U.S. District Judge Marc Treadwell presided over the sentencings. There is no parole in the federal system.
Beginning in February 2008 through August of 2010, Hardin, the City President and Senior Lending Officer at the CB&T Warner Robins branch, participated in a loan scheme designed to generate loan proceeds from fraudulent loans to Stokeling and Askew, their friends and family members, and borrowers recruited by Stokeling and Askew who would sign loan documents without any expectation of receiving the loan proceeds. Hardin approved the loans, and CB&T would issue checks. The loan money was distributed to various persons, including defendant Stokeling for his personal gain, and not used for the intended purposes of the loan, like the purchase of cars or homes. In all, CB&T was defrauded of $5,067,333.17.
“Community banks are a cornerstone of our local economy. They employ our citizens, fund local businesses, support local organizations and bank our families. When criminals defraud local banks our office will prosecute them to the fullest extent of the law,” said U.S. Attorney Charlie Peeler. “The FDIC-OIG initiated this investigation after a tip from within CB&T. The FBI and FDIC-OIG did a tremendous job getting to the bottom of this complex loan scheme, and helping root out the fraud.”
“These sentencings hold the conspirators accountable for defrauding the bank of more than $5 million in a scheme designed to line their pockets,” said FDIC Inspector General Jay N. Lerner. “We are committed to working with our law enforcement partners to preserve the integrity of the banking system against insiders who abuse their positions to commit fraud.”
“The sentencing of these three subjects brings to a close a lengthy investigation and prosecution of a criminal enterprise that obtained fraudulent loans that caused extensive damage to a local community bank,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “This case is an example of the FBI’s commitment to combatting such criminal actions that defraud hard working citizens.”
The case was investigated by the FDIC-OIG and the FBI. Assistant U.S. Attorney Shanelle Booker 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.
Former Bank President Who Aided the Obstruction of an FDIC Investigation SentencedRead the Press Release
A former bank president who aided the obstruction of an FDIC examination was sentenced today to 5 years’ probation.
Cecil Capper, age 74, from Marion, Iowa, received the probation term after a June 25, 2019 guilty plea to aiding and abetting the obstruction of an FDIC investigation.
Information at sentencing showed that Capper worked as a bank president from 2009 to 2013, and that in December 2010 Capper prepared a handwritten memo and made an entry in the bank’s computer system purporting to show that Capper’s bank had assumed a $500,000 loan from another affiliated bank. Capper did so in order to aid in concealing underlying delinquent loans from FDIC scrutiny. The bank ended up being unable to collect on the majority of the $500,000 loan, ultimately losing $462,304.84.
Capper was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Capper was sentenced to 5 years’ probation. He was ordered to make $462,304.84 in restitution.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the Federal Deposit Insurance Corporation Office of Inspector General and the United States Secret Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-cr-63. Follow us on Twitter @USAO_NDIA.
Five Former Residents of Mexico Charged in Cocaine Trafficking ConspiracyRead the Press Release
PITTSBURGH – Four former residents of Sinaloa, Mexico, and a former resident of Sonora, Mexico, have been indicted by a federal grand jury in Pittsburgh on a charge of conspiring to possess with intent to distribute and distribute five kilograms or more of cocaine, United States Attorney Scott W. Brady announced today.
The one-count Indictment named Amado Alonzo Zazueta Garcia, Juan Jose Quintero Felix, Luis Antonio Alvarado Llanes, and Sergio Geovany Alvarado Felix, each of whom is originally from Sinaloa, Mexico; and Aracelis Martinez Nunez, formerly of Sonora, Mexico.
According to the Indictment, from in and around October 2019, to in and around November 2019, in the Western District of Pennsylvania, and elsewhere, the defendants conspired with one another, and with persons both known and unknown to the grand jury, to possess with intent to distribute and distribute five kilograms or more of cocaine, a Schedule II controlled substance.
The law provides for a maximum total sentence for each defendant of not less than ten (10) years in prison and not more than life imprisonment, a fine not to exceed $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentences imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Jerome A. Moschetta is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police Bureau of Criminal Investigation Unit 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.
Duncan Man Sentenced to Ten Years for Possessing Firearms While Subject to a Victim Protective OrderRead the Press Release
OKLAHOMA CITY – CHAD WAYNE KASPEREIT, 34, of Duncan, has been sentenced to ten years in prison for possessing firearms while subject to a victim protective order and lying on a federal form to purchase firearms, announced U.S. Attorney Timothy J. Downing.
According to Count 1 of a superseding indictment filed on March 19, 2019, Kaspereit made a materially false statement on December 7, 2017, at the Academy Store in Yukon, Oklahoma, when he represented he was not subject to a victim protective order. Anyone purchasing a firearm from a federally licensed firearms dealer must certify answers to certain questions on Bureau of Alcohol, Tobacco, Firearms, and Explosives Form 4473. The superseding indictment charged he knew when he completed the form that he was subject to a victim protective order in Stephens County, Oklahoma. The protective order prohibited him from harassing, stalking, or threatening his ex-wife and their three children, and from using force or threats of force against them. Relying on Kaspereit’s false statement, Academy sold him a Taurus Judge .45 caliber revolver and a Taurus PT 738 .380 pistol.
A second count charged Kaspereit with the felony of possessing the Taurus Judge .45 caliber revolver and the Taurus PT 738 .380 pistol between December 7, 2017, and February 26, 2018, a period during which he was subject to the Stephens County protective order.
On May 17, 2019, a jury convicted Kaspereit on both of these counts. The evidence showed that Kaspereit was subject to protective orders that prohibited him from harassing, stalking, or intimidating his first wife and their three children, and then his second wife and her child, from September 3, 2015, until the present, with the limited exception of February 27, 2018, until March 18, 2018. The jury heard that Kaspereit’s first wife agreed to dismiss her protective order in February 2018 only because she believed it was not stopping him from doing anything to her or the children. The jury also heard evidence that Kaspereit used the handguns to threaten his second wife. Kaspereit has been in the custody of the U.S. Marshals Service since his arrest on January 15, 2019.
At sentencing today, U.S. District Judge David L. Russell sentenced Kaspereit to ten years in prison—the statutory maximum—to be followed by three years of supervised release. This sentence constituted an upward variance from the U.S. Sentencing Guidelines. Although Kaspereit had no criminal history, the court nevertheless found the sentence was necessary to protect the public from Kaspereit’s violence.
"We will continue to bring firearms charges against perpetrators of domestic violence who violate federal law, particularly when they are actively menacing their families," said U.S. Attorney Downing. "Through this case and others like it, the Department of Justice is protecting vulnerable families and preventing violence against both adults and children."
This sentence is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with assistance from the Cleveland County District Attorney’s Office and the Oklahoma City Police Department. Prosecuted by Assistant U.S. Attorneys K. McKenzie Anderson and Jacquelyn M. Hutzell, this case is part of Project Safe Neighborhoods and Project Guardian, the centerpieces of the Department of Justice’s violent crime reduction efforts. Through these programs, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions. To enhance local effectiveness, the Western District of Oklahoma has emphasized prosecution of federal gun crimes connected to domestic violence.
Reference is made to public filings for further information. For an image of U.S. Attorney Downing, click here.
District Man Sentenced to 7 Years in Prison for Armed KidnappingRead the Press Release
WASHINGTON – Ethan Moye-Gordon, 23, of Maryland, was sentenced yesterday to 84 months in prison for his participation in an armed kidnapping and robbery that began in the District of Columbia and continued into Maryland.
U.S. Attorney Jessie K. Liu, Timothy M. Dunham, Special Agent in Charge, FBI Washington Field Office, Criminal Division, Chief Peter Newsham, Metropolitan Police Department, and Chief Henry P. Stawinski, Prince George’s County Police Department made the announcement.
The defendant entered a guilty plea in July of 2019, before the Honorable Judge Amy Berman Jackson. In addition to the period of incarceration, Judge Jackson imposed a 60-month period of supervised release and required the defendant to complete 250 hours of community service.
According to the government’s evidence, late in the evening on November 10, 2018, and into the early morning hours of November 11, 2018, Moye-Gordon, along with two other men, abducted the victim at gunpoint near Logan Circle and forced the victim into their vehicle. The victim had been in Washington to attend the annual meeting of the Society for Immunotherapy of Cancer at the Convention Center.
During the course of the abduction, the victim was forced into the trunk of the defendant’s vehicle; he ultimately was able to pull the latch in the trunk and attempted to escape, but was unable to obtain help before he was recaptured by his captors and forced back into the vehicle.
During the abduction, Moye-Gordon and his associates forced the victim at gunpoint to provide his ATM PIN code and made physical withdrawals from numerous ATMs in D.C. and Maryland. Moye-Gordon and his associates also withdrew funds from the victim’s accounts using online banking applications on the victim’s phone.
In a statement provided to the court, the victim advised that “words cannot convey the horror and the shock I experienced” during the kidnapping. The victim praised everyone who worked on the case and “diligently assembled evidence and facts, and then diligently and expertly conducted their criminal case and investigation.”
This matter was investigated by the Washington Field Office’s Violent Crime Task Force, which is composed of FBI Special Agents, along with Detectives of the Washington Metropolitan Police Department, and the U.S. Capitol Police, in conjunction with the Prince George’s County Police. This task force, working with local, state and federal partners, is charged with investigating and arresting the most egregious and violent criminal actors within the Capital Region.
In announcing the sentence, U.S. Attorney Liu, Special Agent in Charge Dunham, Chief Newsham, and Chief Stawinski commended the work of the FBI Agents, MPD officers, Prince George’s County police officers, and Arlington County police officers who investigated the armed kidnapping. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Laura Crane, former Assistant United States Attorney Jillian Willis, Paralegal Specialist Rommel, and Legal Assistant Peter Gaboton.
District Man Sentenced to 32 Years in Prison for the Murder of a Man Outside a Convenience Store in Northeast WashingtonRead the Press Release
WASHINGTON – Kenneth Adams, 21, of Washington, D.C., was sentenced today to 32 years in prison stemming from a killing of a man that took place outside of a convenience store in 2016 in Northeast Washington, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Adams was found guilty of first-degree murder while armed and a weapons offense related to the murder, as well as a robbery charge involving an earlier incident following a 4-week trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Judith Bartnoff. Following his prison term, he will be placed on five years of supervised release.
According to the government’s evidence, on the night of February 15, 2016, Adams and two others robbed a woman near the intersection of 21st and Maryland NE and threatened that her brother would be next. The woman told her brother what happened, and he confronted Adams and the others.
On February 19, 2016, at approximately 9:40 p.m., Adams armed with a .40-caliber revolver, walked a short distance from 21st Street and Maryland Avenue NE to the convenience store at 19th Street and Benning Road NE. He was backed by several others from the neighborhood. He walked to the center of the parking lot, raised his left arm, and pointed his firearm at the woman’s brother, firing multiple times. The man was in a group that included Dante Kinard. The gunfire did not hit the intended target, but did hit Mr. Kinard, 21, who was standing in front of the store at the time. He was shot in the back and right thigh and died a short time later.
Adams was arrested on June 15, 2016, and has been in custody ever since.
In announcing the verdicts, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the assistance provided by U.S. Marshal Service, U.S. Park Police, the FBI Washington Field Office, and the ATF. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Sharon Donovan, Chrisellen Kolb, Daniel Lenerz, John Mannarino, David Misler, and Rizwan Qureshi; Paralegal Specialists Debra Joyner, Alesha Matthews, Lornce Applewhite, Meridith McGarrity, and Sharon Newman; Investigative Analyst Zachary McMenamin; Litigation Technology Specialists Leif Hickling, Anisha Bhatia, and Thomas “Ron” Royal; Victim/Witness Advocates Diana Lim and Jennifer Allen; Victim/Witness Security Specialists Lesley Slade and M. LaVerne Perry, and Intern Tia Kerkhof.
Finally, they commended the work of Assistant U.S. Attorneys Ahmed Baset and Monica Trigoso, who investigated and prosecuted the case.
Dark web fentanyl dealer sentenced to 7 years in prisonRead the Press Release
Seattle – A 40-year-old Seattle man was sentenced today in U.S. District Court in Seattle to seven years in prison for selling thousands of doses of fentanyl on various encrypted websites, announced U.S. Attorney Brian T. Moran. MATTHEW WITTERS was a leading seller of fentanyl on AlphaBay and Dream Market between 2015 and 2017. In December 2018, law enforcement seized $1.1 million in cryptocurrency, cash and other funds WITTERS admitted were the proceeds of his drug trafficking. At the sentencing hearing U.S. District Judge John C. Coughenour ordered forfeiture of those funds, and noted WITTERS sold “an enormous quantity of an extremely dangerous drug.”
“Fentanyl traffickers, who put their profits ahead of public safety, justifiably face significant federal prison sentences,” said U.S. Attorney Brian T. Moran. “Trafficking in these substances endangers not only the end-user, but innocent bystanders such as postal workers or family members who might come in contact with the highly toxic substance.”
According to records filed in the case, WITTERS came to the attention of law enforcement when his contact information and dark web monikers were discovered in residences connected with drug trafficking in Oklahoma and California. WITTERS’ sales on AlphaBay ended when law enforcement shut-down the site in July 2017.
WITTERS was arrested December 10, 2018, and the following day law enforcement executed a search warrant for a safe deposit box WITTERS leased in a Shoreline, Washington bank. Inside was more than $165,000 in currency, a variety of suspected controlled substances, mailing labels and stamps and a loaded Glock 27 pistol.
WITTERS has been in custody since his arrest. On June 13, 2019, WITTERS pleaded guilty to conspiracy to distribute controlled substances. Prosecutors agreed to cap their sentencing recommendation at ten years in prison.
The case was investigated by the U.S. Postal Inspection Service (USPIS) and Homeland Security Investigations (HSI).
The case was prosecuted by Assistant United States Attorneys Neal B. Christiansen and Thomas M. Woods.
Corcoran Resident Sentenced to 10 Years in Prison for Role in Methamphetamine Distribution ConspiracyRead the Press Release
SAN JOSE – Angel Lopez-Rivera was sentenced today to 10 years in prison for his role in a conspiracy to distribute methamphetamine, announced United States Attorney David L. Anderson and Drug Enforcement Administration (DEA) Acting Special Agent in Charge William C. Fallin. The sentence was handed down by the Honorable Beth Labson Freeman, United States District Judge.
Lopez-Rivera, 24, of Corcoran, Calif., pleaded guilty on June 25, 2019, to one count of distribution of methamphetamine. In pleading guilty, Lopez-Rivera admitted he agreed to deliver methamphetamine to a drug buyer in Gilroy. The defendant drove to a parking lot in Gilroy, met the buyer in a parked car, then handed over the drugs in a cardboard box in exchange for cash. The drugs consisted of approximately 446 grams of pure methamphetamine.
A federal grand jury indicted Lopez-Rivera on May 4, 2017, charging him with one count of conspiracy to distribute methamphetamine and one count of possession with intent to distribute methamphetamine. A superseding information filed on June 20, 2019, charged Lopez-Rivera with one count of distribution of methamphetamine, in violation of 21 U.S.C. § 841, the count to which he pleaded guilty.
In addition to the prison term, Judge Freeman also sentenced the defendant to a five-year period of supervised release. The defendant was remanded into custody and will begin serving his prison term immediately.
Lopez-Rivera is member of a drug trafficking organization (DTO) that participated in illegal drug activities in and around Fresno and Gilroy from June 2016 to April 2017. In total, the DTO was responsible for distributing over 24 pounds of methamphetamine, or “crystal meth,” and possessed additional methamphetamine, heroin, and cocaine for intended distribution. Lopez-Rivera the third member of the DTO to have been sentenced. On June 18, 2019, Judge Freeman sentenced codefendant Sergio Antonio Padilla-Lopez to 36 months in prison for delivering methamphetamine on a separate occasion. Further, on March 5, 2019, Judge Freeman sentenced the organizer and leader of the DTO, codefendant Ricardo Rios-Angulo, to 220 months in prison for his role in the drug conspiracy. When arrested, Rios-Angulo also was in possession of firearms and ammunition, including a Cobra .380-caliber handgun, a loaded Springfield Armory 1911 .38-caliber handgun, and an AR-style assault rifle without a serial number.
This case is being prosecuted by the San Jose Branch of the U.S. Attorney’s Office for the Northern District in California. The prosecution is the result of an investigation by the DEA.
Columbia Falls man admits sexually exploiting childRead the Press Release
MISSOULA – A Columbia Falls man who admitted soliciting sexually explicit images of a minor girl through his Facebook account and mobile phone pleaded guilty on Monday to sexual exploitation of a child, U.S. Attorney Kurt Alme said.
Todd Louis Pajnich, 30, appeared before U.S. Magistrate Kathleen L. DeSoto, who will recommend his plea be accepted by Chief U.S. District Judge Dana L. Christensen, who is hearing the case.
Pajnich faces a minimum mandatory 15 years to 30 years in prison, a $250,000 fine and at least five years to a lifetime of supervised release. Pajnich was detained pending further proceedings. Sentencing was set for March 27, 2020.
In court records filed in the case, the prosecution said that beginning in January, Pajnich started communicating on Facebook with a 10-year-old girl. In April, Facebook reported potential online sexual exploitation involving the girl’s and Pajnich’s accounts. A law enforcement investigation found records in which Pajnich asked the girl her age and that she told him she was 13. Pajnich then asked the girl to send him sexually explicit images of herself. He sent the victim sexually explicit images of a male, purportedly of himself, and encouraged girl to send him sexually explicit images of herself, which she did. Pajnich admitted to law enforcement that he knew the victim was a child and that he solicited sexually explicit images of her.
Assistant U.S. Attorney Cyndee Peterson is prosecuting the case, which was investigated by Homeland Security Investigations, the Flathead County Sheriff’s Office and the Internet Crimes Against Children Task Force.
This case was initiated under the Department of Justice’s Project Safe Childhood initiative, which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. It is implemented through partnerships including the Montana Internet Crimes Against Children Task Force. The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children.
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Chief of Security of Gangster Disciples Sentenced to 10 Years for RICO ConspiracyRead the Press Release
Memphis, TN – Demario Demont Sprouse, 39, a/k/a/ "Taco," has been sentenced to 120 months in federal prison for conspiracy to participate in a racketeering enterprise. U.S. Attorney D. Michael Dunavant announced the sentence today.
According to the superseding indictment, the Gangster Disciples is a highly-organized criminal street gang with nationwide reach. In addition to Tennessee, the gang reportedly operates in more than 35 states. The Gangster Disciples were organized into different positions, including board members, and governor-of-governors who each controlled geographic regions; governors, assistant governors, chief enforcers and chief of security for each state or regions within the state where the Gangster Disciples were active; and coordinators and leaders within each local group.
During the change of plea hearing on June 19, 2019, Sprouse admitted that he was the Chief of Security for a region within the Western District of Tennessee. The superseding indictment to which Sprouse pleaded guilty indicates that, as Chief of Security he was responsible for the security of fellow gang members, providing protection to senior Gangster Disciple members, and providing security and protection during times when law enforcement or rival gangs were exerting pressure on the gang.
Sprouse was among a total of 16 leaders and members of the Gangster Disciples criminal street gang originally indicted in 2016 in "Operation .38 Special" for federal racketeering offenses, including conspiracy to commit attempted murders; robberies; assaults; distribution of large quantities of heroin; cocaine and marijuana; firearms trafficking; kidnappings; intimidation of witnesses and victims; extortion; obstruction of justice; and other offenses in furtherance of the Gangster Disciples enterprise and to raise funds for the gang.
On December 16, 2019, U.S. District Court Judge John T. Fowlkes, Jr., sentenced Sprouse to 120 months in federal prison followed by 3 years of supervised release. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said: "We are fighting to reclaim our cities, towns, and neighborhoods from the gangs, and are effectively dismantling their leadership and influence. "Taco" has terrorized the Memphis area with his violence and racketeering, and he will now only have prison food for the next 10 years."
This prosecution was brought as part of the Justice Department’s Organized Crime and Drug Enforcement Task Force (OCDETF) program. OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations, and to diminish the violence and other criminal activity associated with the drug trade. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, money laundering, and violent organizations.
This case was investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, Tennessee Bureau of Investigations, Jackson Police Department Gang Enforcement Team, Memphis Police Department, Shelby County Sheriff’s Office, 28th District West Tennessee Drug Task Force, 26th, 25th, and 30th Judicial District Attorney’s General Offices, Sheriff’s Offices for Tipton, DeSoto, Madison and Fayette Counties, Police Departments of Bartlett, Germantown and Columbia, TN.
Assistant U.S. Attorneys Beth C. Boswell and Annie T. Christoff of the Western District of Tennessee and Trial Attorney Shauna Hale of the Criminal Division Organized Crime and Gang Section prosecuted this case on behalf of the government.
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Bronx Gang Member Convicted of 2011 Murder of Bolivia BeckRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that KAREEM DAVIS, a/k/a “Reem,” a member of a violent, Bronx-based street gang known as “Killbrook,” was convicted of the April 2011 murder of Bolivia Beck, as well as participating in a racketeering conspiracy. DAVIS was convicted following a one-week trial before U.S. District Judge Lorna G. Schofield.
U.S. Attorney Geoffrey S. Berman said: “A unanimous jury convicted Kareem Davis of killing Bolivia Beck as she was meeting her boyfriend’s grandparents, more than eight years ago. We hope today’s verdict brings some solace to the victim’s family, while also taking a violent offender off the street.”
As reflected in the Indictment, documents previously filed in the case, and evidence introduced at trial:
From at least in or about 2007 through in or about October 2017, DAVIS was a member of Killbrook, a violent street gang based in the “Down the Block” section of the Mill Brook Houses. Killbrook members were responsible for narcotics trafficking, shootings, robberies, and murder. In or around 2007, a violent rivalry started between Killbrook and “MBG,” another gang based in the “Up the Block” section of the Mill Brook Houses. This rivalry involved numerous shootings and acts of violence, including a shooting at a baby shower in the Mill Brook community center.
On April 18, 2011, Bolivia Beck and her boyfriend, a member of MBG, were walking through the Mill Brook Houses. As Beck and her boyfriend approached her boyfriend’s grandparents, DAVIS and a co-conspirator fired multiple times, aiming for the boyfriend but instead striking Beck in the head with a single bullet. The shooting occurred in broad daylight. Beck died two days later from the gunshot wound.
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DAVIS, 30, was found guilty of one count of racketeering conspiracy, which carries a maximum sentence of life in prison; one count of murder in aid of racketeering, which carries a mandatory minimum sentence of life in prison; and one count of murder through the use of a firearm, which carries a mandatory minimum sentence of five years in prison and a maximum sentence of life in prison. DAVIS is scheduled to be sentenced on April 16, 2020.
Mr. Berman praised the outstanding investigative work of the New York City Police Department.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Christopher Clore, Jordan Estes, and Alexandra Rothman are in charge of the prosecution.
Bristow Man Found Guilty of Coercion and Enticement of a MinorRead the Press Release
A federal jury convicted a Bristow man Tuesday of coercion and enticement of a minor, announced U.S. Attorney Trent Shores.
Arthur James Mann, 34, was found guilty of communicating with an individual he believed to be 13 years of age but who was an undercover officer. From July 29 to Aug. 17, 2018, Mann communicated with the “girl” on Facebook, telling her that his name was Andrew Mason and he was 16 years old. Mann initiated multiple sexual conversations with the girl and requested nude photos. Mann further suggested the two meet in order to have sex on Aug. 17, 2018. Mann arrived that night in his pajamas and slippers to meet the 13-year-old girl. Instead, he was met by officers from the Bristow Police Department and taken into custody.
“The jury has spoken, and Arthur Mann is guilty as charged of attempting to coerce and entice a minor via Facebook. Parents must be aware that sex predators like Mann use social media to find, groom, and entice their prey. In this case, we were lucky the defendant was talking to an undercover law enforcement officer and not a 13-year-old child. Key evidence in this trial included a cell phone and communications on Facebook. The ever-present threat of online child predators underscores the importance of lawful access by law enforcement to various tech devices and social media platforms,” said U.S. Attorney Trent Shores.
“I hope the public understands that law enforcement gains “lawful access” to cell phones and social media accounts through warrants and wiretaps approved by impartial judges,” Shores continued. “‘Warrant proof encryption’ or ‘end-to-end encryption’ touted by some social media platforms actually facilitates and protects the criminal acts of pedophiles and others online. Bottom line, when technology prevents law enforcement officials from having lawful access, it puts our children and communities at risk. Thankfully, law enforcement officials in this case were able to search Mr. Mann’s cell phone to obtain critical evidence.”
U.S. District Judge Gregory K. Frizzell set sentencing for March 2020. At that time, Mann faces a minimum penalty of 10 years in prison, supervised release of not less than five years up to life, and a fine not to exceed $250,000.
The Bristow Police Department conducted the investigation. Assistant U.S. Attorneys Edward Snow and Scott Proctor are prosecuting the case.
This case was prosecuted as part of the Project Safe Childhood initiative. PSC combats the growing epidemic of child sexual exploitation and abuse and was launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Auburn Man Sentenced to 42 Months for Drug Trafficking and Firearms OffensesRead the Press Release
CONCORD - Joshua Simard, 31, of Auburn, was sentenced to 42 months in federal prison for drug trafficking and firearms offenses, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on July 31, 2018, law enforcement officers encountered Simard at a hotel in Bedford. Officers seized two backpacks from Simard, which contained, among other things, a handgun, ammunition, over $6,000 in cash, over 150 grams of cocaine, digital scales, and a suspected drug ledger.
Simard previously pleaded guilty on June 12, 2019.
“Possessing or using a gun during a drug deal is a guaranteed ticket to federal prison,” said U.S. Attorney Murray. “Armed drug dealers present a substantial threat to the safety of our communities. In order to maintain public safety, we will aggressively prosecute drug dealers who carry firearms.”
“As we all know, drug trafficking, along with the gun and physical violence that often accompanies it, ravages the very foundations of our families and communities,” said DEA Special Agent in Charge Brian D. Boyle. “Today’s sentence not only holds Mr. Simard accountable for his crimes but serves as a warning that DEA and its local, state and federal law enforcement partners will do everything in our power to bring to justice anyone who engages in these crimes.
This matter was investigated by the Drug Enforcement Administration and the Bedford Police Department. The case was prosecuted by Assistant U.S. Attorney Anna Krasinski.
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Arkansas Sheriff Charged with Assaulting Three Individuals in CustodyRead the Press Release
An indictment was unsealed today charging Anthony Boen, the current sheriff of Franklin County, Arkansas, with federal civil rights offenses. Sheriff Boen, age 49, is charged with three counts of deprivation of rights under color of law, in violation of Title 18, United States Code, Section 242.
The indictment alleges that Boen used unreasonable force to punish pretrial detainees on three separate occasions. On Sept. 14, 2017, Boen allegedly punched a detainee multiples times in the head and body while the detainee was handcuffed and shackled in the back of a police car. The indictment further alleges that, on Nov. 21, 2018, Boen pushed a detainee onto the floor and grabbed his hair or beard during an interrogation. Two weeks later on Dec. 3, 2018, Boen allegedly struck a detainee multiple times in the head while the detainee was shackled to a bench inside the Franklin County Jail and was not resisting. The indictment alleges that all three detainees suffered bodily injury as a result of Boen’s actions.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendant is presumed innocent unless proven guilty. If convicted, Boen faces a maximum sentence of 30 years in prison, three years of supervised release, and a fine of up to $250,000.
The case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Brandon T. Carter of the Western District of Arkansas and Civil Rights Division Trial Attorney Michael J. Songer.
Another Member of a Halifax County Multi-Kilogram Heroin Trafficking Organization SentencedRead the Press Release
NEW BERN – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announces that TYSHAWN RAYVON REAMS, 36, of Scotland Neck, NC, was sentenced today by United States District Judge Louise W. Flanagan. REAMS was sentenced to 88 months imprisonment and 5 years of supervised release.
On October 16, 2018, REAMS pled guilty to conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin and a quantity of marijuana and possession with intent to distribute 100 grams or more of heroin and aiding and abetting.
In March 2016, an investigation was initiated by the Tar River Regional Drug Task Force (TRRDTF), led by the Nash County Sheriff’s Office, into a drug trafficking organization (DTO) headed by Terrence Clyburn, which was operating out of Scotland Neck, Tarboro, and Nash Counties in North Carolina. Law enforcement received information that members of the DTO had made several trips to Paterson, New Jersey, to acquire large quantities of heroin for distribution in Nash, Edgecombe, and Halifax Counties.
On March 13, 2017, as DTO members Herbert Cherry and Tony Reams returned from a trip to Paterson, New Jersey, an officer observed a vehicle driven by Cherry speeding and weaving between traffic lanes in Halifax County. A canine was utilized to conduct an exterior narcotics sniff of the vehicle, which resulted in an alert on the vehicle’s trunk. A search of the vehicle resulted in the seizure of 694 bricks of heroin (approximately 470 grams of heroin) which were packaged in 34,722 bindles and hidden in a false bottom of a suitcase and a laundry bag located in the trunk.
On August 16, 2017, the North Carolina State Highway Patrol conducted a traffic stop of another vehicle operated by the DTO, which was occupied by Tara Simmons and Charles Lee Wright. The vehicle was stopped for a speeding violation in Halifax County. Investigators detected the odor of marijuana emanating from the vehicle and determined that Simmons was the driver of the vehicle. A canine, utilized to scan the vehicle, alerted to the rear of the vehicle. Located near the spare tire in the rear of the vehicle, investigators recovered 13 grams of marijuana and approximately 102 bricks of heroin. Each “brick” contained 50 “bindles,” or dosage units, of heroin. The drugs seized totaled 110 grams of heroin.
The investigation revealed that from approximately 2012 to 2017, the DTO trafficked approximately 14.4 kilograms of heroin. The investigation revealed that TYSHAWN REAMS regularly directed the activities of the organization’s couriers and would receive heroin in North Carolina from the couriers. REAMS would then sell the heroin to customers in North Carolina on behalf of the drug trafficking organization.
All defendants charged in this investigation have now been convicted and those sentenced are indicated below.
- Terrence Corneilus Clyburn (sentenced to 147 months imprisonment)
- Tony Ray Reams (sentenced to 47 months imprisonment)
- Herbert Lamont Cherry (sentenced to 71 months imprisonment)
- Charles Lee Wright (sentenced to 60 months imprisonment)
- Tara Finis Simmons (sentenced to 28 months imprisonment)
- Patrick Direece Holiday (sentenced to 96 months imprisonment)
- Mario Marelle Scott (pled guilty on 11/13/19 & awaiting sentencing)
This case is part of the United States Attorney’s Office’s Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement. For additional information about this initiative, click here https://www.justice.gov/usao-ednc/tbnc.
The Nash County Sheriff’s office, Edgecombe Sheriff’s Office, the Halifax County Sheriff’s Office, the Bladen County Sheriff’s Office, the Wake County Sheriff’s Office, the Spring Hope Police Department, and the Tarboro Police Department investigated this case. Assistant United States Attorney Scott A. Lemmon prosecuted this case for the government.
16 December 2019
“Sovereign citizen” now behind federal prison bars for child pornography crimesRead the Press Release
GALVESTON, Texas – A 57-year-old resident of Galveston who claimed the judicial system had no jurisdiction over him is headed to federal prison, announced U.S. Attorney Ryan K. Patrick.
U.S. District Judge George C. Hanks Jr. found John David Knowlton guilty of receipt and possession of child pornography following a two-day bench trial that concluded June 18.
Today, Judge Hanks ordered him to serve 144 and 120 months for the receipt and possession convictions, respectively. The sentences will run concurrently for a total 12-year-term of imprisonment. The court took into consideration victim impact statements and arguments detailing Knowlton’s extensive child pornography collection. In handing down the sentence, the court noted Knowlton’s military service and age, but also considered the seriousness of the offenses, the community and justice for the child victims. Knowlton will also serve 15 years on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender.
During trial, the court heard testimony from multiple law enforcement officers and a Comcast custodian of records.
In February 2016, law enforcement conducted an online session using a publicly available peer-to-peer file-sharing network and located an IP address whose shared folder contained images of child pornography. The IP address was associated with Knowlton’s residence.
When law enforcement searched his home, they discovered more than a dozen electronic devices belonging to him that contained child pornography. Forensic analysis found that 18 electronic devices contained thousands of images and hundreds of videos of child pornography.
Knowlton had opted to represent himself at the trial with the court-appointed shadow defense counsel. Knowlton, identifying as a sovereign citizen, argued that the federal judicial system had no jurisdiction over him. The court was not persuaded by his arguments and found him guilty as charged.
Previously released on bond, Knowlton was taken into custody after the guilty verdict where has remained 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, Pearland Police Department and Galveston Police Department’s - Internet Crimes Against Children Task Force conducted the investigation.
Assistant U.S. Attorneys Zahra Jivani Fenelon and Kimberly Leo prosecuted the case, which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Wisconsin Man Sentenced to 78 Months for Fraud Scheme Involving over $260 Million in Small Business ContractsRead the Press Release
United States Attorney Matthew D. Krueger announced that on December 16, 2019, Brian L. Ganos of Muskego, Wisconsin, was sentenced by the Honorable Pamela Pepper to 78 months in federal prison for leading a 12-year fraud scheme involving over $260 million in government-funded contracts intended to benefit small businesses. The sentence also includes two years of supervised release, a $5,000 fine, and forfeiture of assets worth nearly $4 million. Ganos had earlier pleaded guilty to one count of wire fraud and one count of mail fraud. Four other individuals and one corporation have also pleaded guilty to a felony charge in connection with Ganos’s scheme.
The scheme involved operating three construction companies with straw owners who qualified as a disadvantaged individual or as a service-disabled veteran, but who did not actually control the companies. Ganos then fraudulently obtained small business program certifications to win government-funded contracts to which the companies were not entitled. Specifically,
- Nuvo Construction Company, Inc. (“Nuvo”) was misrepresented to be majority-owned and controlled by J.L. in order to obtain certifications as a Small Disadvantaged Business from the U.S. Small Business Administration (SBA) and as a Disadvantaged Business Enterprise (DBE) from Milwaukee County. In reality, J.L. worked full-time for a different entity in Minnesota and did not actually control Nuvo.
- C3T, Inc. was misrepresented to be majority owned and controlled by T.A. to obtain verification as a Service-Disabled Veteran-Owned Small Business. In reality, for long stretches, T.A. had virtually no involvement in C3T.
- Pagasa Construction Company, Inc. was misrepresented to be majority owned and controlled by O.M. in order to obtain certification as a Small Disadvantaged Business from the SBA. In reality, O.M. relied on the assistance of Ganos-controlled companies to form Pagasa.
The scheme continued from 2004 to mid-2016 during which period, Ganos and others used those certifications to obtain over $260 million in federal, state, and local contract payments. These included federal construction contracts that were set aside for Small Disadvantaged Businesses or Service-Disabled Veteran-Owned Small Businesses. In addition, Nuvo used its DBE certification to win ready-mix concrete contracts based on the false representation that Nuvo provided ready-mix concrete independently when, in truth, Nuvo’s concrete operations depended heavily on Sonag Ready Mix. On multiple occasions, the conspirators engaged in efforts to conceal the scheme and obstruct investigations into the matter.
As a result of the scheme, Ganos undermined the small business programs and deprived honest small businesses of opportunities to become established. In addition, Ganos used various means to launder proceeds of the fraud scheme and enrich himself. As part of his plea agreement, Ganos agreed to the forfeiture of various assets, including (a) over $1.9 million seized from accounts; (b) a ski condominium in Winter Park, Colorado; (c) the office building in Milwaukee used to facilitate the scheme; (d) two Disney timeshares; (e) and five vehicles, including a Corvette Stingray Convertible and classic cars.
United States Attorney Krueger stated: “Driven by greed, Brian Ganos exploited federal programs that Congress intended to help disadvantaged individuals and veterans who were injured while serving our country. This case should send a clear warning that cheating federal programs will not be tolerated. We commend the collaboration and commitment of the federal agencies that investigated this case.”
“The GSA Office of Inspector General will aggressively pursue contractors who make false representations in order to obtain federal contracts,” said Special Agent-in-Charge, Jeffrey Ryan. “Schemes to fraudulently access opportunities designated as set-aside contracts cheat the government and deserving bidders.”
“Disadvantaged Business Enterprise (DBE) fraud harms law-abiding contractors by disrupting the level playing field in which legitimate disadvantaged businesses seek to fairly compete for contracts,” said Andrea M. Kropf, Regional Special Agent-in-Charge of the United States Department of Transportation Office of Inspector General. “Working with our law enforcement and prosecutorial partners, we remain committed to preserving the integrity of the DBE program.”
“I am pleased by the results of the investigative team and the U.S. Attorney's offices' efforts to bring justice to these individuals, said Special Agent in Charge Cynthia A. Bruce, DCIS Southeast Field Office. DCIS and our investigative partners are committed to fully investigate allegations of fraud against the military procurement system and DoD set-aside programs.”
FBI Special Agent in Charge Robert E. Hughes stated: “The FBI will pursue those who exploit government programs intended to help disabled-veterans and small business owners. Through the great collaboration of our law enforcement partnerships we will continue to dedicate all the time that is needed and resources available to bring these offenders to justice.”
“Today’s sentencing sends a strong message to those who would fraudulently enrich themselves by corrupting the integrity of Federal procurement programs intended to assist small disadvantaged businesses, in this case, lost opportunities for legitimate veteran business owners who earned that benefit through personal sacrifice and service to our country,” said Special Agent-in-Charge Brian Hauck of the U.S. Army Criminal Investigation Command's North Central Fraud Field Office. “The Army CID, along with our investigative and prosecutorial partners, will continue to diligently pursue those who would defraud U.S. Government programs within our investigative purview.”
“The defendants in this fraud scheme sought personal gain at the expense of disadvantaged and veteran-owned small businesses eligible for contracts set-aside by the Government,” said Inspector General Hannibal “Mike” Ware. “SBA OIG is committed to bringing those that lie to gain access to SBA’s preferential contracting programs to justice. I want to thank the U.S. Attorney’s Office for its leadership and dedication to serving justice.”
Gregg Hirstein, Special Agent in Charge, Department of Veterans Affairs, VA Office of Inspector General (VA OIG), said, “The VA OIG is committed to bringing justice to those who illegally enrich themselves at the expense of VA programs intended to help our nation’s disabled veterans. I hope this case prompts anyone aware of such fraud schemes to contact the VA OIG Hotline.”
The following agencies participated in the investigation: the Federal Bureau of Investigation; U.S. General Services Administration, Office of Inspector General; Department of Veterans Affairs, Office of Inspector General; Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service; U.S. Department of Transportation, Office of Inspector General; U.S. Small Business Administration, Office of Inspector General, Investigations Division; Defense Contract Audit Agency; and U.S. Army Criminal Investigations Command Major Procurement Fraud Unit.
The case was prosecuted by United States Attorney Matthew D. Krueger and Assistant United States Attorneys Scott J. Campbell, Michael A. Carter, and Adam H. Ptashkin.
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- Nuvo Construction Company, Inc. (“Nuvo”) was misrepresented to be majority-owned and controlled by J.L. in order to obtain certifications as a Small Disadvantaged Business from the U.S. Small Business Administration (SBA) and as a Disadvantaged Business Enterprise (DBE) from Milwaukee County. In reality, J.L. worked full-time for a different entity in Minnesota and did not actually control Nuvo.
Wilmington Gang Member Receives 13 Years in Federal PrisonRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that on Friday in federal court, Chief United States District Judge Terrence W. Boyle sentenced ANTONIO FOSTER, 30, of Wilmington North Carolina to 156 months imprisonment, followed by 3 years of supervised release.
FOSTER was named in a two-count Indictment filed on March 13, 2019 charging him with distribution of a quantity of heroin and possess with the intent to distribute a quantity of heroin. On August 8, 2019, FOSTER pled guilty to distribution of a quantity of heroin and possess with the intent to distribute a quantity of heroin.
According to the investigation, on January 23, 2019, the New Hanover County Vice Unit conducted a controlled purchase of heroin from FOSTER outside of an apartment complex in Wilmington North Carolina.
Following the sale of heroin, law enforcement served a search warrant on FOSTER’S apartment. Law Enforcement found items used to manufacture heroin in a child’s closet and 500 bags of cocaine and almost 400 bags of heroin in a beanbag chair. FOSTER had recently been released from prison for a North Carolina State Court conviction for habitual felon. According to law enforcement, FOSTER is a validated Gang Member.
This case is also part of the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
This case is part of an FBI Coastal Carolina Safe Street Task Force lead OCDETF operation “Dodge Ball”. This is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). This investigation is focused on violent Gang Members involved in the distribution of heroin, possession of firearms and associated violence.
The Federal Bureau of Investigation Coastal Carolina Safe Street Task Force, the New Hanover County Sheriff’s Offices, and North Carolina State Bureau of Investigations conducted the investigation of this case. Assistant United States Attorney Timothy Severo prosecuted the case on behalf of the government.
West Haven, Connecticut Man Arrested After Attempting to Travel to the Middle East to Join and Fight for ISISRead the Press Release
The Department of Justice today announced that Ahmad Khalil Elshazly, 22, of West Haven, Connecticut, has been charged by a federal criminal complaint with attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
Elshazly was arrested yesterday. He appeared today before U.S. Magistrate Judge Robert M. Spector in New Haven and was ordered detained.
“As alleged in the complaint, Elshazly was bent on supporting ISIS. Worried that his efforts here would be too small and that he would be stopped at the airport, he planned to travel overseas aboard a container ship to join and fight for ISIS,” said Assistant Attorney General for National Security John C. Demers. “The National Security Division is committed to identifying and holding accountable those who continue to seek to provide material support to foreign terrorist organizations.”
“The U.S. Attorney’s Office and our law enforcement partners are committed to targeting and stopping those who wish to cause mayhem, both in the U.S. and abroad, before they are successful,” said U.S. Attorney John H. Durham for the District of Connecticut. “I thank the FBI’s JTTF and all the agencies involved in the lengthy investigation that culminated in yesterday’s arrest. Their work has saved lives.”
“It is crucial the citizens of Connecticut, and across the country, know we at the FBI and our task force partners are unwavering in our work to successfully identify and disrupt potential terrorist activities, as this case demonstrates,” said FBI Special Agent in Charge Brian C. Turner of the New Haven Division. “Through nonstop intelligence gathering and great investigative techniques, we will continue to pursue those who seek to bring harm to U.S. citizens and dismantle potential terrorist actions wherever they may be.”
As alleged in the criminal complaint, beginning in approximately September 2018, Elshazly, a U.S. citizen, has made numerous statements to others, both in person and through online messaging applications, expressing a desire to travel to Syria and the surrounding area to fight on behalf of ISIS. In February 2019, Elshazly stated that he had saved approximately $1,000 with the intention of using the money to travel to Jordan to transit to Syria to be with ISIS.
It is further alleged that, in October 2019, during a meeting with other individuals, Elshazly made numerous statements supporting ISIS, including, “…they say, War has started and we are marching to it…..but all doors are closed, closed. I am talking to myself now, asking myself, How do I get there? How can I help Muslims? How can I do anything?” He further stated, “God willing! May this country [United States] burn the same way they burned Muslims! May they burn in fire at the end!” Elshazly made these statements in a public venue. When he was asked to lower his voice when talking loudly, Elshazly proclaimed “I am not scared.”
During the same meeting, it is alleged that Elshazly said, “…I want to go to the caliphate and fight there. I can kill maybe…like a hundred kaffir. I can kill them. A hundred kaffirs. If I do something here how many kaffirs could I kill? One, two, three and then I get shot and I die. It is more benefitting if I go there, I could kill more and will get more faithful rewards.”
It is further alleged that, in December 2019, Elshazly sent another individual a series of YouTube videos explaining how various high-powered firearms and other weaponry work.
It is alleged that, because he was concerned about being stopped by law enforcement at an airport, Elshazly arranged to travel by ship to Turkey. Elshazly provided another individual with $500 that Elshazly believed would be used to pay for a portion of his trip. On Dec. 15, 2019, Elshazly was arrested after he arrived in Stonington, Connecticut, where he expected to board a boat to begin his trip.
The charge of attempting to provide material support to a designated foreign terrorist organization carries a maximum term of imprisonment of 20 years.
A complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by Federal Bureau of Investigation’s Joint Terrorism Task Force (JTTF) with the assistance of the Stonington Police Department, New Haven Police Department and Connecticut State Police. The FBI’s JTTF includes participants from the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Internal Revenue Service – Criminal Investigation Division, Naval Criminal Investigative Service, U.S. Citizenship and Immigration Services, Connecticut State Police, Connecticut Department of Correction, Metropolitan Transportation Authority Police Department, Norwich Police Department, Hartford Police Department, Stamford Police Department, Norwalk Police Department, Groton Police Department, UConn Police Department, Yale Police Department, New York Police Department, and the US Marshals Service.
This case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito and Trial Attorneys Justin Sher and Jennifer Burke from the Counterterrorism Section of the Justice Department’s National Security Division.