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Tuesday 5 November 2019
Justice Department announces Procurement Collusion Strike Force: a coordinated national response to combat antitrust crimes and related schemes in government procurement, grant and program fundingRead the Press Release
ATLANTA - The Justice Department announced the formation of the new Procurement Collusion Strike Force (PCSF) focusing on deterring, detecting, investigating and prosecuting antitrust crimes, such as bid-rigging conspiracies and related fraudulent schemes, which undermine competition in government procurement, grant and program funding.
Deputy Attorney General Jeffrey A. Rosen expressed the Department’s support for the initiative. “To protect taxpayer dollars, the Justice Department is doing its part to eliminate anticompetitive collusion, waste and abuse from government procurement,” said Deputy Attorney General Rosen. “To ensure taxpayers the full benefits of competitive bidding, experienced investigators and prosecutors with the necessary expertise will partner in this Strike Force to deter, detect and prosecute antitrust crimes and related schemes in government procurements.”
“We will remain laser-focused on rooting out the fraud, waste, and abuse that can plague the procurement process at all levels of government,” says U.S. Attorney Byung J. “BJay” Pak. “By providing this additional training and outreach to those involved in the process, we believe that we can rapidly begin to remove opportunities for corruption.”
“The investigation and prosecution of individuals and organizations that cheat, collude and seek to undermine the integrity of government procurement are priorities for this administration,” said Assistant Attorney General Delrahim. “The PCSF will train and educate procurement officials nationwide to recognize and report suspicious conduct in procurement, grant and program funding processes. We will aggressively investigate and prosecute those who violate our antitrust laws to cheat the American taxpayer.”
At a press conference at the Department of Justice in Washington, D.C., Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division explained that the PCSF will be an interagency partnership consisting of prosecutors from the Antitrust Division, prosecutors from 13 U.S. Attorneys’ Offices, and investigators from the FBI, the Department of Defense Office of Inspector General, the U.S. Postal Service Office of Inspector General and other partner federal Offices of Inspector General.
The PCSF will lead a national effort to protect taxpayer-funded projects at the federal, state and local level from antitrust violations and related crimes, starting with a focus on 13 districts throughout the country. Prosecutors from the Antitrust Division and the participating U.S. Attorneys’ Offices, along with agents from the FBI and partner Offices of Inspector General, will work together to conduct outreach and training for procurement officials and government contractors on antitrust risks in the procurement process. In addition, the partnered prosecutors and investigators will jointly investigate and prosecute cases that result from their targeted outreach efforts.
“Inspectors General throughout the federal government have a long history of rooting out waste, fraud and abuse in government contracting,” said Michael E. Horowitz, Inspector General of the Department of Justice and Chair of the Council of Inspectors General on Integrity and Efficiency. “We welcome the opportunity to contribute our expertise to the important work of the Procurement Collusion Strike Force. We look forward to partnering with the other participating members of the law enforcement community to hold accountable actors who seek to defraud the government and cheat taxpayers.”
“The FBI has a long history of working with our interagency and law enforcement partners to investigate public procurement crimes and ensure justice,” said FBI Criminal Intelligence Division Assistant Director Terry Wade. “We are committed to working closely with our DOJ colleagues and our federal, state and local partners as we continue to successfully combat these crimes.”
“Individuals and companies that participate in procurement collusion cause significant harm and losses to the Department of Defense and to American taxpayers,” said Glenn A. Fine, Principal Deputy Inspector General, Performing the Duties of the Inspector General, of the Department of Defense Office of Inspector General. “The DoD Office of Inspector General, and our criminal investigative component, the Defense Criminal Investigative Service, are committed to aggressively investigating those individuals and companies who would attempt to compromise government procurement processes.”
The Antitrust Division and its law enforcement partners have a history of prosecuting criminal antitrust conspiracies that take advantage of government contracts. In late 2018 and early 2019, for instance, five South Korean oil companies agreed to plead guilty for their involvement in a decade-long bid-rigging conspiracy that targeted contracts to supply fuel to U.S. military bases in South Korea. The Antitrust Division also indicted seven individuals for conspiring to rig bids and to defraud the government, and one executive was also charged with obstruction of justice. In total, the companies have agreed to pay $156 million in criminal fines and over $205 million in separate civil settlements. This year, the Justice Department, in partnership with the GSA Office of Inspector General, also indicted individuals for involvement in rigging bids submitted to the GSA.
The PCSF’s 13 U.S. Attorney partners include:
- Byung J. “BJay” Pak, Northern District of Georgia
- Nicola T. Hanna, Central District of California
- McGregor Scott, Eastern District of California
- Jason R. Dunn, District of Colorado
- Jessie K. Liu, District of Columbia
- Ariana Fajardo Orshan, Southern District of Florida
- John R. Lausch, Jr., Northern District of Illinois
- Matthew Schneider, Eastern District of Michigan
- Geoffrey S. Berman, Southern District of New York
- David M. DeVillers, Southern District of Ohio
- William M. McSwain, Eastern District of Pennsylvania
- Erin Nealy Cox, Northern District of Texas
- G. Zachary Terwilliger, Eastern District of Virginia
The PCSF’s investigative partners include:
- Department of Defense Office of Inspector General
- Federal Bureau of Investigation
- General Services Administration Office of Inspector General
- Department of Justice Office of the Inspector General
- U.S. Postal Service Office of Inspector General
The PCSF has launched a publicly available website at https://www.justice.gov/procurement-collusion-strike-force, where government procurement officials and members of the public can review information about the federal antitrust laws and training programs, and report suspected criminal activity affecting public procurement.
Individuals and companies are encouraged to contact the PCSF if they have information concerning anticompetitive conduct involving federal taxpayer dollars by emailing [email protected].
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Justice Department Announces Strike Force to Combat Crimes in Government Procurement, Grant and Program FundingRead the Press Release
WASHINGTON - The Justice Department announced today the formation of the new Procurement Collusion Strike Force (PCSF) focusing on deterring, detecting, investigating and prosecuting antitrust crimes, such as bid-rigging conspiracies and related fraudulent schemes, which undermine competition in government procurement, grant and program funding.
The PCSF will be an interagency partnership consisting of prosecutors from the Antitrust Division, Assistant U.S. Attorneys from the Northern District of Illinois and 12 other U.S. Attorneys’ Offices, and investigators from the FBI, Department of Defense Office of Inspector General, U.S. Postal Service Office of Inspector General and other federal Offices of Inspector General.
“Government procurement is vulnerable to corruption and too often results in inferior goods and services at a higher cost to taxpayers,” said John R. Lausch, Jr., United States Attorney for the Northern District of Illinois. “We will work aggressively with the Antitrust Division and our investigative partners to hold accountable individuals and companies who seek to corrupt the procurement process.”
“To protect taxpayer dollars, the Justice Department is doing its part to eliminate anticompetitive collusion, waste and abuse from government procurement,” said Deputy Attorney General Jeffrey A. Rosen. “To ensure taxpayers the full benefits of competitive bidding, experienced investigators and prosecutors with the necessary expertise will partner in this Strike Force to deter, detect and prosecute antitrust crimes and related schemes in government procurements.”
“The investigation and prosecution of individuals and organizations that cheat, collude and seek to undermine the integrity of government procurement are priorities for this administration,” said Assistant Attorney General Makan Delrahim of the Antitrust Division. “The PCSF will train and educate procurement officials nationwide to recognize and report suspicious conduct in procurement, grant and program funding processes. We will aggressively investigate and prosecute those who violate our antitrust laws to cheat the American taxpayer.”
The PCSF will lead a national effort to protect taxpayer-funded projects at the federal, state and local level from antitrust violations and related crimes, starting with a focus on 13 districts throughout the country. Prosecutors from the Antitrust Division and the participating U.S. Attorneys’ Offices, along with agents from the FBI and partner Offices of Inspector General, will work together to conduct outreach and training for procurement officials and government contractors on antitrust risks in the procurement process. In addition, the partnered prosecutors and investigators will jointly investigate and prosecute cases that result from their targeted outreach efforts.
The Antitrust Division and its law enforcement partners have a history of prosecuting criminal antitrust conspiracies that take advantage of government contracts. In late 2018 and early 2019, for instance, five South Korean oil companies agreed to plead guilty for their involvement in a decade-long bid-rigging conspiracy that targeted contracts to supply fuel to U.S. military bases in South Korea. The Antitrust Division also indicted seven individuals for conspiring to rig bids and to defraud the government, and one executive was also charged with obstruction of justice. In total, the companies have agreed to pay $156 million in criminal fines and over $205 million in separate civil settlements. This year, the Justice Department, in partnership with the U.S. General Services Administration Office of Inspector General, also indicted individuals for involvement in rigging bids submitted to the GSA.
In addition to the Northern District of Illinois, the PCSF’s other U.S. Attorney partners include:
-Central District of California
-Eastern District of California
-District of Colorado
-District of Columbia
-Southern District of Florida
-Northern District of Georgia
-Eastern District of Michigan
-Southern District of New York
-Southern District of Ohio
-Eastern District of Pennsylvania
-Northern District of Texas
-Eastern District of Virginia
The PCSF’s investigative partners include:
-Defense Department Office of Inspector General
-FBI
-GSA Office of Inspector General
-Department of Justice Office of Inspector General
-Postal Service Office of Inspector General
The PCSF has launched a publicly available website where government procurement officials and members of the public can review information about the federal antitrust laws and training programs, and report suspected criminal activity affecting public procurement. Individuals and companies are encouraged to email the PCSF at [email protected] to report anti-competitive conduct involving federal taxpayer dollars.
Justice Department Announces Procurement Collusion Strike Force: a Coordinated National Response to Combat Antitrust Crimes and Related Schemes in Government Procurement, Grant and Program FundingRead the Press Release
The Justice Department announced today the formation of the new Procurement Collusion Strike Force (PCSF) focusing on deterring, detecting, investigating and prosecuting antitrust crimes, such as bid-rigging conspiracies and related fraudulent schemes, which undermine competition in government procurement, grant and program funding.
At a press conference today at the Department of Justice in Washington, D.C., Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division explained that the PCSF will be an interagency partnership consisting of prosecutors from the Antitrust Division, prosecutors from 13 U.S. Attorneys’ Offices, and investigators from the FBI, the Department of Defense Office of Inspector General, the U.S. Postal Service Office of Inspector General and other partner federal Offices of Inspector General.
Deputy Attorney General Jeffrey A. Rosen expressed the Department’s support for the initiative. “To protect taxpayer dollars, the Justice Department is doing its part to eliminate anticompetitive collusion, waste and abuse from government procurement,” said Deputy Attorney General Rosen. “To ensure taxpayers the full benefits of competitive bidding, experienced investigators and prosecutors with the necessary expertise will partner in this Strike Force to deter, detect and prosecute antitrust crimes and related schemes in government procurements.”
“The investigation and prosecution of individuals and organizations that cheat, collude and seek to undermine the integrity of government procurement are priorities for this administration,” said Assistant Attorney General Delrahim. “The PCSF will train and educate procurement officials nationwide to recognize and report suspicious conduct in procurement, grant and program funding processes. We will aggressively investigate and prosecute those who violate our antitrust laws to cheat the American taxpayer.”
The PCSF will lead a national effort to protect taxpayer-funded projects at the federal, state and local level from antitrust violations and related crimes, starting with a focus on 13 districts throughout the country. Prosecutors from the Antitrust Division and the participating U.S. Attorneys’ Offices, along with agents from the FBI and partner Offices of Inspector General, will work together to conduct outreach and training for procurement officials and government contractors on antitrust risks in the procurement process. In addition, the partnered prosecutors and investigators will jointly investigate and prosecute cases that result from their targeted outreach efforts.
“Inspectors General throughout the federal government have a long history of rooting out waste, fraud and abuse in government contracting,” said Michael E. Horowitz, Inspector General of the Department of Justice and Chair of the Council of Inspectors General on Integrity and Efficiency. “We welcome the opportunity to contribute our expertise to the important work of the Procurement Collusion Strike Force. We look forward to partnering with the other participating members of the law enforcement community to hold accountable actors who seek to defraud the government and cheat taxpayers.”
“The FBI has a long history of working with our interagency and law enforcement partners to investigate public procurement crimes and ensure justice,” said FBI Criminal Investigative Division Assistant Director Terry Wade. “We are committed to working closely with our DOJ colleagues and our federal, state and local partners as we continue to successfully combat these crimes.”
“Individuals and companies that participate in procurement collusion cause significant harm and losses to the Department of Defense and to American taxpayers,” said Glenn A. Fine, Principal Deputy Inspector General, Performing the Duties of the Inspector General, of the Department of Defense Office of Inspector General. “The DoD Office of Inspector General, and our criminal investigative component, the Defense Criminal Investigative Service, are committed to aggressively investigating those individuals and companies who would attempt to compromise government procurement processes.”
The Antitrust Division and its law enforcement partners have a history of prosecuting criminal antitrust conspiracies that take advantage of government contracts. In late 2018 and early 2019, for instance, five South Korean oil companies agreed to plead guilty for their involvement in a decade-long bid-rigging conspiracy that targeted contracts to supply fuel to U.S. military bases in South Korea. The Antitrust Division also indicted seven individuals for conspiring to rig bids and to defraud the government, and one executive was also charged with obstruction of justice. In total, the companies have agreed to pay $156 million in criminal fines and over $205 million in separate civil settlements. This year, the Justice Department, in partnership with the GSA Office of Inspector General, also indicted individuals for involvement in rigging bids submitted to the GSA.
The PCSF’s 13 U.S. Attorney partners include:
- Nicola T. Hanna, Central District of California
- McGregor Scott, Eastern District of California
- Jason R. Dunn, District of Colorado
- Jessie K. Liu, District of Columbia
- Ariana Fajardo Orshan, Southern District of Florida
- Byung J. “BJay” Pak, Northern District of Georgia
- John R. Lausch, Jr., Northern District of Illinois
- Matthew Schneider, Eastern District of Michigan
- Geoffrey S. Berman, Southern District of New York
- David M. DeVillers, Southern District of Ohio
- William M. McSwain, Eastern District of Pennsylvania
- Erin Nealy Cox, Northern District of Texas
- G. Zachary Terwilliger, Eastern District of Virginia
The PCSF’s investigative partners include:
- Department of Defense Office of Inspector General
- Federal Bureau of Investigation
- General Services Administration Office of Inspector General
- Department of Justice Office of the Inspector General
- U.S. Postal Service Office of Inspector General
The PCSF has launched a publicly available website at https://www.justice.gov/procurement-collusion-strike-force, where government procurement officials and members of the public can review information about the federal antitrust laws and training programs, and report suspected criminal activity affecting public procurement.
Individuals and companies are encouraged to contact the PCSF if they have information concerning anticompetitive conduct involving federal taxpayer dollars by emailing [email protected].
Justice Department Announces Procurement Collusion Strike Force: A Coordinated National Response to Combat Antitrust Crimes and Related Schemes in Government Procurement, Grant and Program FundingRead the Press Release
WASHINGTON – The Justice Department announced today the formation of the new Procurement Collusion Strike Force (PCSF) focusing on deterring, detecting, investigating and prosecuting antitrust crimes, such as bid-rigging conspiracies and related fraudulent schemes, which undermine competition in government procurement, grant and program funding.
At a press conference today at the Department of Justice in Washington, D.C., Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division explained that the PCSF will be an interagency partnership consisting of prosecutors from the Antitrust Division, prosecutors from 13 U.S. Attorneys’ Offices, and investigators from the FBI, the Department of Defense Office of Inspector General, the U.S. Postal Service Office of Inspector General and other partner federal Offices of Inspector General.
Deputy Attorney General Jeffrey A. Rosen expressed the Department’s support for the initiative. “To protect taxpayer dollars, the Justice Department is doing its part to eliminate anticompetitive collusion, waste and abuse from government procurement,” said Deputy Attorney General Rosen. “To ensure taxpayers the full benefits of competitive bidding, experienced investigators and prosecutors with the necessary expertise will partner in this Strike Force to deter, detect and prosecute antitrust crimes and related schemes in government procurements.”
"The investigation and prosecution of individuals and organizations that cheat, collude and seek to undermine the integrity of government procurement are priorities for this administration,” said Assistant Attorney General Delrahim. “The PCSF will train and educate procurement officials nationwide to recognize and report suspicious conduct in procurement, grant and program funding processes. We will aggressively investigate and prosecute those who violate our antitrust laws to cheat the American taxpayer.”
The PCSF will lead a national effort to protect taxpayer-funded projects at the federal, state and local level from antitrust violations and related crimes, starting with a focus on 13 districts throughout the country. Prosecutors from the Antitrust Division and the participating U.S. Attorneys’ Offices, along with agents from the FBI and partner Offices of Inspector General, will work together to conduct outreach and training for procurement officials and government contractors on antitrust risks in the procurement process. In addition, the partnered prosecutors and investigators will jointly investigate and prosecute cases that result from their targeted outreach efforts.
“Inspectors General throughout the federal government have a long history of rooting out waste, fraud and abuse in government contracting,” said Michael E. Horowitz, Inspector General of the Department of Justice and Chair of the Council of Inspectors General on Integrity and Efficiency. “We welcome the opportunity to contribute our expertise to the important work of the Procurement Collusion Strike Force. We look forward to partnering with the other participating members of the law enforcement community to hold accountable actors who seek to defraud the government and cheat taxpayers.”
“The FBI has a long history of working with our interagency and law enforcement partners to investigate public procurement crimes and ensure justice,” said FBI Criminal Intelligence Division Assistant Director Terry Wade. “We are committed to working closely with our DOJ colleagues and our federal, state and local partners as we continue to successfully combat these crimes.”
“Individuals and companies that participate in procurement collusion cause significant harm and losses to the Department of Defense and to American taxpayers,” said Glenn A. Fine, Principal Deputy Inspector General, Performing the Duties of the Inspector General, of the Department of Defense Office of Inspector General. “The DoD Office of Inspector General, and our criminal investigative component, the Defense Criminal Investigative Service, are committed to aggressively investigating those individuals and companies who would attempt to compromise government procurement processes.”
"When competitors in any given industry collude and conspire to rig bids, fix prices, or allocate markets—that is, commit criminal antitrust violations—they distort the free market and harm customers with high prices and lower quality goods and services," said Jessie K. Liu, U.S. Attorney for the District of Columbia. "We will continue to fight illegal collusion in government procurement to ensure that the taxpayer dollars are spent appropriately and efficiently."
The Antitrust Division and its law enforcement partners have a history of prosecuting criminal antitrust conspiracies that take advantage of government contracts. In late 2018 and early 2019, for instance, five South Korean oil companies agreed to plead guilty for their involvement in a decade-long bid-rigging conspiracy that targeted contracts to supply fuel to U.S. military bases in South Korea. The Antitrust Division also indicted seven individuals for conspiring to rig bids and to defraud the government, and one executive was also charged with obstruction of justice. In total, the companies have agreed to pay $156 million in criminal fines and over $205 million in separate civil settlements. This year, the Justice Department, in partnership with the GSA Office of Inspector General, also indicted individuals for involvement in rigging bids submitted to the GSA.
The PCSF’s 13 U.S. Attorney partners include:
- Nicola T. Hanna, Central District of California
- McGregor Scott, Eastern District of California
- Jason R. Dunn, District of Colorado
- Jessie K. Liu, District of Columbia
- Ariana Fajardo Orshan, Southern District of Florida
- Byung J. “BJay” Pak, Northern District of Georgia
- John R. Lausch, Jr., Northern District of Illinois
- Matthew Schneider, Eastern District of Michigan
- Geoffrey S. Berman, Southern District of New York
- David M. DeVillers, Southern District of Ohio
- William M. McSwain, Eastern District of Pennsylvania
- Erin Nealy Cox, Northern District of Texas
- G. Zachary Terwilliger, Eastern District of Virginia
The PCSF’s investigative partners include:
- Department of Defense Office of Inspector General
- Federal Bureau of Investigation
- General Services Administration Office of Inspector General
- Department of Justice Office of the Inspector General
- U.S. Postal Service Office of Inspector General
The PCSF has launched a publicly available website at https://www.justice.gov/procurement-collusion-strike-force, where government procurement officials and members of the public can review information about the federal antitrust laws and training programs, and report suspected criminal activity affecting public procurement.
Individuals and companies are encouraged to contact the PCSF if they have information concerning anticompetitive conduct involving federal taxpayer dollars by emailing [email protected].
Justice Department Announces Procurement Collusion Strike Force: A Coordinated National Response to Combat Antitrust Crimes and Related Schemes in Government Procurement, Grant and Program FundingRead the Press Release
U.S. Attorney’s Office for the Southern District of Florida Joins the Strike Force
The Justice Department announced today the formation of the new Procurement Collusion Strike Force (PCSF) focusing on deterring, detecting, investigating and prosecuting antitrust crimes, such as bid-rigging conspiracies and related fraudulent schemes, which undermine competition in government procurement, grant and program funding.
At a press conference today at the Department of Justice in Washington, D.C., Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division explained that the PCSF will be an interagency partnership consisting of prosecutors from the Antitrust Division, prosecutors from 13 U.S. Attorneys’ Offices, including the U.S. Attorney’s Office for the Southern District of Florida, and investigators from the FBI, the Department of Defense Office of Inspector General, the U.S. Postal Service Office of Inspector General and other partner federal Offices of Inspector General.
“The Southern District of Florida is proud to be part of this targeted, national effort to combat antitrust crimes,” stated U.S. Attorney Ariana Fajardo Orshan. “Our South Florida taxpayers deserve to have their money safeguarded from criminal schemes and government contracts awarded on a level playing field. We implore the public to report suspected price fixing, bid rigging, or other forms of collusion or fraud affecting government procurement of goods or services.”
Deputy Attorney General Jeffrey A. Rosen expressed the Department’s support for the initiative. “To protect taxpayer dollars, the Justice Department is doing its part to eliminate anticompetitive collusion, waste and abuse from government procurement,” said Deputy Attorney General Rosen. “To ensure taxpayers the full benefits of competitive bidding, experienced investigators and prosecutors with the necessary expertise will partner in this Strike Force to deter, detect and prosecute antitrust crimes and related schemes in government procurements.”
“The investigation and prosecution of individuals and organizations that cheat, collude and seek to undermine the integrity of government procurement are priorities for this administration,” said Assistant Attorney General Delrahim. “The PCSF will train and educate procurement officials nationwide to recognize and report suspicious conduct in procurement, grant and program funding processes. We will aggressively investigate and prosecute those who violate our antitrust laws to cheat the American taxpayer.”
The PCSF will lead a national effort to protect taxpayer-funded projects at the federal, state and local level from antitrust violations and related crimes, starting with a focus on 13 districts throughout the country. Prosecutors from the Antitrust Division and the participating U.S. Attorneys’ Offices, along with agents from the FBI and partner Offices of Inspector General, will work together to conduct outreach and training for procurement officials and government contractors on antitrust risks in the procurement process. In addition, the partnered prosecutors and investigators will jointly investigate and prosecute cases that result from their targeted outreach efforts.
“Inspectors General throughout the federal government have a long history of rooting out waste, fraud and abuse in government contracting,” said Michael E. Horowitz, Inspector General of the Department of Justice and Chair of the Council of Inspectors General on Integrity and Efficiency. “We welcome the opportunity to contribute our expertise to the important work of the Procurement Collusion Strike Force. We look forward to partnering with the other participating members of the law enforcement community to hold accountable actors who seek to defraud the government and cheat taxpayers.”
“The FBI has a long history of working with our interagency and law enforcement partners to investigate public procurement crimes and ensure justice,” said FBI Criminal Intelligence Division Assistant Director Terry Wade. “We are committed to working closely with our DOJ colleagues and our federal, state and local partners as we continue to successfully combat these crimes.”
“Individuals and companies that participate in procurement collusion cause significant harm and losses to the Department of Defense and to American taxpayers,” said Glenn A. Fine, Principal Deputy Inspector General, Performing the Duties of the Inspector General, of the Department of Defense Office of Inspector General. “The DoD Office of Inspector General, and our criminal investigative component, the Defense Criminal Investigative Service, are committed to aggressively investigating those individuals and companies who would attempt to compromise government procurement processes.”
The Antitrust Division and its law enforcement partners have a history of prosecuting criminal antitrust conspiracies that take advantage of government contracts. In late 2018 and early 2019, for instance, five South Korean oil companies agreed to plead guilty for their involvement in a decade-long bid-rigging conspiracy that targeted contracts to supply fuel to U.S. military bases in South Korea. The Antitrust Division also indicted seven individuals for conspiring to rig bids and to defraud the government, and one executive was also charged with obstruction of justice. In total, the companies have agreed to pay $156 million in criminal fines and over $205 million in separate civil settlements. This year, the Justice Department, in partnership with the GSA Office of Inspector General, also indicted individuals for involvement in rigging bids submitted to the GSA.
The PCSF’s 13 U.S. Attorney partners include:
-
Nicola T. Hanna, Central District of California
-
McGregor Scott, Eastern District of California
-
Jason R. Dunn, District of Colorado
-
Jessie K. Liu, District of Columbia
-
Ariana Fajardo Orshan, Southern District of Florida
-
Byung J. “BJay” Pak, Northern District of Georgia
-
John R. Lausch, Jr., Northern District of Illinois
-
Matthew Schneider, Eastern District of Michigan
-
Geoffrey S. Berman, Southern District of New York
-
David M. DeVillers, Southern District of Ohio
-
William M. McSwain, Eastern District of Pennsylvania
-
Erin Nealy Cox, Northern District of Texas
-
G. Zachary Terwilliger, Eastern District of Virginia
The PCSF’s investigative partners include:
-
Department of Defense Office of Inspector General
-
Federal Bureau of Investigation
-
General Services Administration Office of Inspector General
-
Department of Justice Office of Inspector General
-
U.S. Postal Service Office of Inspector General
The PCSF has launched a publicly available website at https://www.justice.gov/procurement-collusion-strike-force, where government procurement officials and members of the public can review information about the federal antitrust laws and training programs, and report suspected criminal activity affecting public procurement.
Individuals and companies are encouraged to contact the PCSF if they have information concerning anticompetitive conduct involving federal taxpayer dollars by emailing [email protected].
-
Justice Department Announces Procurement Collusion Strike Force: A Coordinated National Response to Combat Antitrust Crimes & Related Schemes in Government Procurement, Grant, & Program FundingRead the Press Release
The Justice Department announced today the formation of the new Procurement Collusion Strike Force (PCSF) focusing on deterring, detecting, investigating and prosecuting antitrust crimes, such as bid-rigging conspiracies and related fraudulent schemes, which undermine competition in government procurement, grant and program funding.
At a press conference today at the Department of Justice in Washington, D.C., Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division explained that the PCSF will be an interagency partnership consisting of prosecutors from the Antitrust Division, prosecutors from 13 U.S. Attorneys’ Offices, including the U.S. Attorney’s Office for the Northern District of Texas, and investigators from the FBI, the Department of Defense Office of Inspector General, the U.S. Postal Service Office of Inspector General and other partner federal Offices of Inspector General.
Deputy Attorney General Jeffrey A. Rosen expressed the Department’s support for the initiative. “To protect taxpayer dollars, the Justice Department is doing its part to eliminate anticompetitive collusion, waste and abuse from government procurement,” said Deputy Attorney General Rosen. “To ensure taxpayers the full benefits of competitive bidding, experienced investigators and prosecutors with the necessary expertise will partner in this Strike Force to deter, detect and prosecute antitrust crimes and related schemes in government procurements.”
“The investigation and prosecution of individuals and organizations that cheat, collude and seek to undermine the integrity of government procurement are priorities for this administration,” said Assistant Attorney General Makan Delrahim. “The PCSF will train and educate procurement officials nationwide to recognize and report suspicious conduct in procurement, grant and program funding processes. We will aggressively investigate and prosecute those who violate our antitrust laws to cheat the American taxpayer.”
“Protecting the American taxpayer is a vital function of the Justice Department,” said U.S. Attorney for the Northern District of Texas Erin Nealy Cox. “The Strike Force is committed to ensuring that the procurement process is competitive and fair.”
The PCSF will lead a national effort to protect taxpayer-funded projects at the federal, state and local level from antitrust violations and related crimes, starting with a focus on 13 districts throughout the country. Prosecutors from the Antitrust Division and the participating U.S. Attorneys’ Offices, along with agents from the FBI and partner Offices of Inspector General, will work together to conduct outreach and training for procurement officials and government contractors on antitrust risks in the procurement process. In addition, the partnered prosecutors and investigators will jointly investigate and prosecute cases that result from their targeted outreach efforts.
“Inspectors General throughout the federal government have a long history of rooting out waste, fraud and abuse in government contracting,” said Michael E. Horowitz, Inspector General of the Department of Justice and Chair of the Council of Inspectors General on Integrity and Efficiency. “We welcome the opportunity to contribute our expertise to the important work of the Procurement Collusion Strike Force. We look forward to partnering with the other participating members of the law enforcement community to hold accountable actors who seek to defraud the government and cheat taxpayers.”
“The FBI has a long history of working with our interagency and law enforcement partners to investigate public procurement crimes and ensure justice,” said FBI Criminal Intelligence Division Assistant Director Terry Wade. “We are committed to working closely with our DOJ colleagues and our federal, state and local partners as we continue to successfully combat these crimes.”
“Individuals and companies that participate in procurement collusion cause significant harm and losses to the Department of Defense and to American taxpayers,” said Glenn A. Fine, Principal Deputy Inspector General of the Department of Defense Office of Inspector General. “The DoD Office of Inspector General, and our criminal investigative component, the Defense Criminal Investigative Service, are committed to aggressively investigating those individuals and companies who would attempt to compromise government procurement processes.”
The Antitrust Division and its law enforcement partners have a history of prosecuting criminal antitrust conspiracies that take advantage of government contracts. In late 2018 and early 2019, for instance, five South Korean oil companies agreed to plead guilty for their involvement in a decade-long bid-rigging conspiracy that targeted contracts to supply fuel to U.S. military bases in South Korea. The Antitrust Division also indicted seven individuals for conspiring to rig bids and to defraud the government, and one executive was also charged with obstruction of justice. In total, the companies have agreed to pay $156 million in criminal fines and over $205 million in separate civil settlements. This year, the Justice Department, in partnership with the GSA Office of Inspector General, also indicted individuals for involvement in rigging bids submitted to the GSA.
The PCSF’s 13 U.S. Attorney partners include:
- Nicola T. Hanna, Central District of California
- McGregor Scott, Eastern District of California
- Jason R. Dunn, District of Colorado
- Jessie K. Liu, District of Columbia
- Ariana Fajardo Orshan, Southern District of Florida
- Byung J. “BJay” Pak, Northern District of Georgia
- John R. Lausch, Jr., Northern District of Illinois
- Matthew Schneider, Eastern District of Michigan
- Geoffrey S. Berman, Southern District of New York
- David M. DeVillers, Southern District of Ohio
- William M. McSwain, Eastern District of Pennsylvania
- Erin Nealy Cox, Northern District of Texas
- G. Zachary Terwilliger, Eastern District of VirginiaThe PCSF’s investigative partners include:
- Department of Defense Office of Inspector General
- Federal Bureau of Investigation
- General Services Administration Office of Inspector General
- Department of Justice Office of the Inspector General
- U.S. Postal Service Office of Inspector GeneralThe PCSF has launched a publicly available website at https://www.justice.gov/procurement-collusion-strike-force, where government procurement officials and members of the public can review information about the federal antitrust laws and training programs, and report suspected criminal activity affecting public procurement.
Individuals and companies are encouraged to contact the PCSF if they have information concerning anticompetitive conduct involving federal taxpayer dollars by emailing [email protected].
Justice Department Announces Procurement Collusion Strike Force: A Coordinated National Response to Combat Antitrust Crimes and Related Schemes in Government Procurement, Grant and Program FundingRead the Press Release
WASHINGTON - The Justice Department announced today the formation of the new Procurement Collusion Strike Force (PCSF) focusing on deterring, detecting, investigating and prosecuting antitrust crimes, such as bid-rigging conspiracies and related fraudulent schemes, which undermine competition in government procurement, grant and program funding.
At a press conference today at the Department of Justice in Washington, D.C., Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division explained that the PCSF will be an interagency partnership consisting of prosecutors from the Antitrust Division, prosecutors from 13 U.S. Attorneys’ Offices, and investigators from the FBI, the Department of Defense Office of Inspector General, the U.S. Postal Service Office of Inspector General and other partner federal Offices of Inspector General.
Deputy Attorney General Jeffrey A. Rosen expressed the Department’s support for the initiative. “To protect taxpayer dollars, the Justice Department is doing its part to eliminate anticompetitive collusion, waste and abuse from government procurement,” said Deputy Attorney General Rosen. “To ensure taxpayers the full benefits of competitive bidding, experienced investigators and prosecutors with the necessary expertise will partner in this Strike Force to deter, detect and prosecute antitrust crimes and related schemes in government procurements.”
“When companies cheat the government on contracts, they are really cheating the taxpayers who pay the bill,” said US Attorney Jason Dunn. “In Colorado, we stand ready to hold dishonest companies accountable and ensure taxpayers are getting what they paid for.”
“The investigation and prosecution of individuals and organizations that cheat, collude and seek to undermine the integrity of government procurement are priorities for this administration,” said Assistant Attorney General Delrahim. “The PCSF will train and educate procurement officials nationwide to recognize and report suspicious conduct in procurement, grant and program funding processes. We will aggressively investigate and prosecute those who violate our antitrust laws to cheat the American taxpayer.”
The PCSF will lead a national effort to protect taxpayer-funded projects at the federal, state and local level from antitrust violations and related crimes, starting with a focus on 13 districts throughout the country. Prosecutors from the Antitrust Division and the participating U.S. Attorneys’ Offices, along with agents from the FBI and partner Offices of Inspector General, will work together to conduct outreach and training for procurement officials and government contractors on antitrust risks in the procurement process. In addition, the partnered prosecutors and investigators will jointly investigate and prosecute cases that result from their targeted outreach efforts.
“Inspectors General throughout the federal government have a long history of rooting out waste, fraud and abuse in government contracting,” said Michael E. Horowitz, Inspector General of the Department of Justice and Chair of the Council of Inspectors General on Integrity and Efficiency. “We welcome the opportunity to contribute our expertise to the important work of the Procurement Collusion Strike Force. We look forward to partnering with the other participating members of the law enforcement community to hold accountable actors who seek to defraud the government and cheat taxpayers.”
“The FBI has a long history of working with our interagency and law enforcement partners to investigate public procurement crimes and ensure justice,” said FBI Criminal Intelligence Division Assistant Director Terry Wade. “We are committed to working closely with our DOJ colleagues and our federal, state and local partners as we continue to successfully combat these crimes.”
“Individuals and companies that participate in procurement collusion cause significant harm and losses to the Department of Defense and to American taxpayers,” said Glenn A. Fine, Principal Deputy Inspector General, Performing the Duties of the Inspector General, of the Department of Defense Office of Inspector General. “The DoD Office of Inspector General, and our criminal investigative component, the Defense Criminal Investigative Service, are committed to aggressively investigating those individuals and companies who would attempt to compromise government procurement processes.”
The Antitrust Division and its law enforcement partners have a history of prosecuting criminal antitrust conspiracies that take advantage of government contracts. In late 2018 and early 2019, for instance, five South Korean oil companies agreed to plead guilty for their involvement in a decade-long bid-rigging conspiracy that targeted contracts to supply fuel to U.S. military bases in South Korea. The Antitrust Division also indicted seven individuals for conspiring to rig bids and to defraud the government, and one executive was also charged with obstruction of justice. In total, the companies have agreed to pay $156 million in criminal fines and over $205 million in separate civil settlements. This year, the Justice Department, in partnership with the GSA Office of Inspector General, also indicted individuals for involvement in rigging bids submitted to the GSA.
The PCSF’s 13 U.S. Attorney partners include:
- Nicola T. Hanna, Central District of California
- McGregor Scott, Eastern District of California
- Jason R. Dunn, District of Colorado
- Jessie K. Liu, District of Columbia
- Ariana Fajardo Orshan, Southern District of Florida
- Byung J. “BJay” Pak, Northern District of Georgia
- John R. Lausch, Jr., Northern District of Illinois
- Matthew Schneider, Eastern District of Michigan
- Geoffrey S. Berman, Southern District of New York
- David M. DeVillers, Southern District of Ohio
- William M. McSwain, Eastern District of Pennsylvania
- Erin Nealy Cox, Northern District of Texas
- G. Zachary Terwilliger, Eastern District of Virginia
The PCSF’s investigative partners include:
- Department of Defense Office of Inspector General
- Federal Bureau of Investigation
- General Services Administration Office of Inspector General
- Department of Justice Office of the Inspector General
- U.S. Postal Service Office of Inspector General
The PCSF has launched a publicly available website at https://www.justice.gov/procurement-collusion-strike-force, where government procurement officials and members of the public can review information about the federal antitrust laws and training programs, and report suspected criminal activity affecting public procurement.
Individuals and companies are encouraged to contact the PCSF if they have information concerning anticompetitive conduct involving federal taxpayer dollars by emailing [email protected].
Jury Convicts Three Individuals of Four Murders, Racketeering, and Drug and Firearms OffensesRead the Press Release
Tampa, Florida – Today, following a three week trial, a federal jury found Jordan Rodriguez (Bradenton, 26), Andrew Thompson, a/k/a “Nico,” (Bradenton, 25), and Alfonzo Churchwell (Bradenton, 32) guilty of multiple charges, including racketeering conspiracy, drug conspiracy, murder conspiracy, drug and firearms offenses, and four murders. See the summary chart below for a list of charges and related penalties.
In July 2019, seven individuals were charged in a 20-count superseding indictment. Four defendants pleaded guilty to a variety of charges prior to trial. Each of the three defendants that proceeded to trial were accused of committing at least one murder. The evidence in the case showed that the defendants were engaged in a violent and deadly rivalry with others in Oneco, a community in Bradenton, and that the defendants worked together to traffic in controlled substances and to control and protect their drug business with violence and murder.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Manatee County Sheriff’s Office, and the State Attorney’s Office (Twelfth Judicial Circuit). It is being prosecuted by Assistant United States Attorneys Natalie Hirt Adams and Christopher F. Murray.
Charge
Name
Maximum Penalties
Count One
RICO Conspiracy
Jordan Rodriguez
Andrew Thompson
Alfonzo Churchwell
Maximum term of life imprisonment, a fine not to exceed $250,000, a term of supervised release of up to 5 years, and a $100 special assessment.
Count Two
Drug Trafficking Conspiracy
Jordan Rodriguez
Andrew Thompson
Alfonzo Churchwell
Maximum term of imprisonment of 20 years, a fine not to exceed $1 million, a term of supervised release of up to 5 years, and a $100 special assessment.
Count Three
Conspiracy to Commit Murder in Aid of Racketeering (relating to the murder of Julio Tellez)
Jordan Rodriguez
A maximum term of imprisonment of 10 years, a fine not to exceed $250,000, a term of supervised release of up to 3 years, and a $100 special assessment.
Count Four
Murder in Aid of Racketeering, or Aiding and Abetting the Same (relating to the murder of Julio Tellez)
Jordan Rodriguez
A mandatory term of life imprisonment, a fine not to exceed $250,000, a term of supervised release of up to 5 years, and a $100 special assessment.
Count Five
Use of a Firearm During and in Relation to a Crime of Violence, resulting in the murder of Julio Tellez, or Aiding and Abetting the Same
Jordan Rodriguez
A mandatory minimum term of imprisonment of 10 years, up to life (said term to run consecutive to any other term of imprisonment), a fine not to exceed $250,000, a term of supervised release of up to 5 years, and a $100 special assessment.
Count Eight
Possession with Intent to Distribute Controlled Substances Involving Heroin, Cocaine, And Crack Cocaine
Andrew Thompson
Maximum term of imprisonment of 20 years, a fine not to exceed $1 million, a term of supervised release of up to 5 years, and a $100 special assessment.
Count Ten
Use of a Firearm During and in Relation to Drug Trafficking Crimes and a Crime of Violence, resulting in the murder of Earnestine Gardner
Alfonzo Churchwell
A mandatory minimum term of imprisonment of 10 years, up to life (said term to run consecutive to any other term of imprisonment), a fine not to exceed $250,000, a term of supervised release of up to 5 years, and a $100 special assessment.
Count Eleven
Felon In Possession Of Ammunition
Alfonzo Churchwell
Maximum term of imprisonment of 10 years, a fine not to exceed $250,000, a term of supervised release of up to 3 years, and a $100 special assessment.
Count Twelve
Accessory After the Fact
Jordan Rodriguez
Maximum term of imprisonment of 15 years, a fine not to exceed $250,000, a term of supervised release of up to 3 years, and a $100 special assessment.
Count Thirteen
Attempted Possession with Intent to Distribute Cocaine and Methamphetamine
Andrew Thompson
Maximum term of imprisonment of 20 years, a fine not to exceed $1 million, a term of supervised release of up to 5 years, and a $100 special assessment.
Count Fourteen
Murder in Aid of Racketeering (relating to the murder of LaShawna Stevenson-Weeks)
Andrew Thompson
A mandatory term of life imprisonment, a fine not to exceed $250,000, a term of supervised release of up to 5 years, and a $100 special assessment.
Count Fifteen
Use of a Firearm During and in Relation to Drug Trafficking Crimes and a Crime of Violence, resulting in the murder of Lashawna Stevenson-Weeks
Andrew Thompson
A mandatory minimum term of imprisonment of 10 years, up to life (said term to run consecutive to any other term of imprisonment), a fine not to exceed $250,000, a term of supervised release of up to 5 years, and a $100 special assessment.
Count Sixteen
Murder in Aid of Racketeering (relating to the murder of Berry Joseph, a/k/a “B-1”)
Andrew Thompson
A mandatory term of life imprisonment, a fine not to exceed $250,000, a term of supervised release of up to 5 years, and a $100 special assessment.
Count Seventeen
Use of a Firearm During and in Relation to Drug Trafficking Crimes and a Crime of Violence resulting in the murder of Berry Joseph, a/k/a “B-1”
Andrew Thompson
A mandatory minimum term of imprisonment of 10 years, up to life (said term to run consecutive to any other term of imprisonment), a fine not to exceed $250,000, a term of supervised release of up to 5 years, and a $100 special assessment.
Count Eighteen
Possession of a Firearm and Ammunition While Subject to a Domestic Violence Restraining Order
Andrew Thompson
Maximum term of imprisonment of 10 years, a fine not to exceed $250,000, a term of supervised release of up to 3 years, and a $100 special assessment.
Count Nineteen
Accessory After the Fact
Jordan Rodriguez
Maximum term of imprisonment of 15 year, a fine not to exceed $250,000, a term of supervised release of up to 3 years, and a $100 special assessment.
Count Twenty
Using or Maintaining a Drug Premises
Jordan Rodriguez
Andrew Thompson
Alfonzo Churchwell
Maximum term of imprisonment of 20 years, a fine not to exceed $500,000, a term of supervised release of up to 5 years, and a $100 special assessment.
Joint Statement from Department of Justice, DOD, DHS, DNI, FBI, NSA, and CISA on Ensuring Security of 2020 ElectionsRead the Press Release
Attorney General William Barr, Secretary of Defense Mark Esper, Acting Secretary of Homeland Security Kevin McAleenan, Acting Director of National Intelligence Joseph Maguire, FBI Director Christopher Wray, U.S. Cyber Command Commander and NSA Director Gen. Paul Nakasone, and CISA Director Christopher Krebs today released the following joint statement:
“Today, dozens of states and local jurisdictions are hosting their own elections across the country and, less than a year from now, Americans will go to the polls and cast their votes in the 2020 presidential election. Election security is a top priority for the United States Government. Building on our successful, whole-of-government approach to securing the 2018 elections, we have increased the level of support to state and local election officials in their efforts to protect elections. The federal government is prioritizing the sharing of threat intelligence and providing support and services that improve the security of election infrastructure across the nation.
In an unprecedented level of coordination, the U.S. government is working with all 50 states and U.S. territories, local officials, and private sector partners to identify threats, broadly share information, and protect the democratic process. We remain firm in our commitment to quickly share timely and actionable information, provide support and services, and to defend against any threats to our democracy.
Our adversaries want to undermine our democratic institutions, influence public sentiment and affect government policies. Russia, China, Iran, and other foreign malicious actors all will seek to interfere in the voting process or influence voter perceptions. Adversaries may try to accomplish their goals through a variety of means, including social media campaigns, directing disinformation operations or conducting disruptive or destructive cyber-attacks on state and local infrastructure.
While at this time we have no evidence of a compromise or disruption to election infrastructure that would enable adversaries to prevent voting, change vote counts or disrupt the ability to tally votes, we continue to vigilantly monitor any threats to U.S. elections.
The U.S. government will defend our democracy and maintain transparency with the American public about our efforts. An informed public is a resilient public. Americans should go to trusted sources for election information, such as their state and local election officials. We encourage every American to report any suspicious activity to their local officials, the FBI, or DHS. In past election cycles, reporting by Americans about suspicious activity provided valuable insight which has made our elections more secure. The greatest means to combat these threats is a whole-of-society effort.”
Jamaican Pleads Guilty in Drug Trafficking Scheme that Used U.S. Mail to Ship Cocaine from California to Western PARead the Press Release
PITTSBURGH - A Jamaican citizen pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
Robert Forbes, also known as "Daniel Kirkpatrick" and "Joe", age 45, Pomona, California, pleaded guilty to one count before Senior United States District Judge Marilyn J. Horan.
In connection with the guilty plea, the court was advised that Forbes conspired to distribute and possess with intent to distribute 5 kilograms or more of cocaine, a Schedule II controlled substance from April 2017 through April 2019. The conspiracy involved the shipment of cocaine from California using the United States Mail to various cities throughout the United States, including New Castle, Pennsylvania. The conspiracy also involved the shipment of cash, also through the United States Mail, from the recipients of the cocaine to the suppliers of cocaine. Many of the cocaine distributors were, like Forbes, originally from Jamaica. Forbes is not a United States citizen and will likely face deportation after he serves his sentence.
Judge Horan scheduled sentencing for February 25, 2020. The law provides for a minimum sentence of 10 years imprisonment and up to life in prison, a fine of $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Brendan T. Conway and Marnie Sheehan-Balchon are prosecuting this case on behalf of the government.
A federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) conducted the investigation that led to the prosecution of Forbes. The task force is headed by the Drug Enforcement Administration and is comprised of members drawn from the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Lawrence County Drug Task Force, Pennsylvania Office of Attorney General, Borough of Baldwin Police Department, McKees Rocks Police Department, Munhall Police Department, Allegheny County Sheriff’s Office, Pittsburgh Bureau of Police, and the Pennsylvania State Police. The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises. In this case, the Lawrence County Drug Task Force and the New Castle Police Department also participated in the investigation.
Jackson Man Pleads Guilty under Project EJECT to Possession of Multiple Firearms by a Convicted FelonRead the Press Release
Jackson, Miss. – Wilmer Ham a/k/a Jose Lopez, 33, pled guilty yesterday before U.S. District Judge Carlton W. Reeves to two counts of being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Michelle A. Sutphin, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi.
On September 14, 2018, a Jackson Police officer responded to a call at Tony’s Food Mart on Highway 80 in Jackson. Upon arrival, the officer noticed the store clerk frantically waving his hands in an attempt to get the officer’s attention from inside the store. Upon entering, the officer noticed the store was in disarray and a male, later identified as Wilmer Ham, was standing beside the fountain drinks. The officer attempted to speak with Ham, but his behavior led the officer to call for backup. Before assistance could arrive, Ham rushed the officer in an attempt to exit. As the officer tried to stop Ham, they struggled and a firearm fell from Ham’s pocket. The firearm was later determined to be a Ruger, model LCP, .380 caliber pistol. After no assistance arrived, the officer disengaged Ham and Ham left the scene.
Later that day, Jackson Police officers again responded to Tony’s Food Mart. Upon arrival, officers observed the front door partially open with a male, later determined to be Wilmer Ham, in the doorway holding the door open with his foot. Both the officer who responded to the earlier call and the store clerk confirmed that Ham was the same individual from that morning. Surveillance video captured Ham inside the store with a handgun and then tossing the handgun outside the door. The gun was determined to be a Taurus, model PT738 TCP, .380 caliber pistol. An investigation revealed that Ham had two previous convictions in Bronx County Criminal Court for possession of a loaded firearm and for criminal sale of a controlled substance.
In August, 2019, Ham was charged in a federal criminal indictment with two counts of possession of a firearm by a convicted felon.
Ham will be sentenced by Judge Reeves on February 4, 2020, and faces a maximum penalty of 20 years in prison and a $5,000,000 fine.
The Federal Bureau of Investigation and the Jackson Police Department investigated this case. It is being prosecuted by Assistant U.S. Attorney Keesha Middleton.
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). 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. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Inmate at FCI Hazelton indicted for assaultRead the Press Release
CLARKSBURG, WEST VIRGINIA – Brian Keith Rose, an inmate at FCI Hazelton in Bruceton Mills, West Virginia, was indicted today by a federal grand jury on an assault charge, U.S. Attorney Bill Powell announced.
Rose, age 34, was indicted on one count of “Assault of a Correctional Officer Involving Physical Contact.” Rose is accused of assaulting a federal correctional officer at FCI Hazelton in October 2018.
Rose faces up to eight years incarceration and a fine of up to $250,000. 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 Prisons Special Investigation Services investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Illegal Aliens indicted on reentry chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA –Two illegal aliens were indicted by a federal grand jury today for an immigration violations, U.S. Attorney Bill Powell announced.
Eduardo Rafael Rivas-Acosta, a citizen of El Salvador, is charged with one count of “Reentry of Removed Aliens.” Rivas-Acosta, age 40, having been removed from the U.S. once before, is accused of being in Jefferson County illegally in October 2019.
Adrian Homero Arrendondo-Castillo, a citizen of Mexico, is charged with one count of “Reentry of Removed Aliens.” Arrendondo-Castillo, age 40, having been removed from the U.S. once before, is accused of being in Berkeley County illegally in October 2019.
Rivas-Acosta and Arrendondo-Castillo each face up to two years incarceration and a fine of up to $250,000. 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 Timothy D. Helman is prosecuting the cases on behalf of the government. The Department of Homeland Security Immigrations and Customs Enforcement investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Illegal Alien admits to reentry chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jose Catarino Feregrino-Resendez, a citizen of Mexico, has admitted to an immigration violation, U.S. Attorney Bill Powell announced.
Feregrino-Resendez, age 49, pled guilty to one count of “Reentry of Removed Alien.” Feregrino-Resendez admitted to reentering the country illegally after be removed once before. The crime occurred in April 2019 in Harrison County.
Feregrino-Resendez faces up to two years incarceration and a fine of up to $250,000. 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 Andrew R. Cogar is prosecuting the case on behalf of the government. The Department of Homeland Security Immigrations and Customs Enforcement and the FBI investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Houston gang members sentenced for trafficking drugs in the HeightsRead the Press Release
HOUSTON - A federal judge has sentenced a 25-year-old Houston resident to 19 years in prison following his convictions for meth distribution and possessing a firearm in furtherance of a narcotics conspiracy, announced U.S. Attorney Ryan K. Patrick along with Special Agent in Charge Fred Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosives and Regional Director Jason Taylor of Texas Department of Public Safety (DPS) - Criminal Investigations Division.
Elias Larry Luna pleaded guilty July 9. Also sentenced today were co-conspirators Alfonso Rios and Jesus Jimenez, both 30 and also of Houston. They had previously admitted to two counts of narcotics distribution acting in conspiracy with Luna.
Today, U.S. District Judge Nancy Atlas ordered Luna to serve a total of 228 months in federal prison which includes 168 months for the narcotics convictions and a consecutive 60 months for the related firearms charge. The 19-year sentence will be immediately followed by five years of supervised release. At the hearing, the court heard additional evidence regarding the firearms Luna sold in conjunction with the narcotics distribution. These included three semi-automatic rifles sold to an undercover agent during the investigation leading to Luna’s arrest. The court also heard about Luna’s involvement in the narcotics trafficking. In imposing the sentence, Judge Atlas noted the event leading to Luna’s arrest was the most “significant and negative transactions” she had seen.
Rios and Jimenez both received 15-year sentences.
“Removing armed drug traffickers from the streets will have an immediate impact on the greater Houston community,” said Milanowski. “We will continue our work to dismantle drug trafficking organizations through our partnerships with local, state and federal authorities.”
"DPS worked collaboratively with our federal, state and local agency partners to disrupt a violent drug trafficking organization," said Taylor. "DPS Criminal Investigations Division special agents, analysts and several other members of the department worked many hours throughout this investigation, and their work has helped make Texas safer."
At the time of his plea, Luna admitted he took part in a drug trafficking conspiracy to distribute approximately 13 kilograms of meth in the Heights neighborhood of Houston in September 2018. Luna also admitted he was armed with a firearm during the conspiracy.
In August 2018, authorities began investigating Luna for trafficking narcotics in the Houston area. The investigation culminated in a September 2018 sting operation resulting in his arrest and that of his co-conspirators while attempting to sell approximately 13 kilograms of meth for $95,250. During the operation, Luna attempted to engage in the narcotics sale, while Rios and Jimenez provided counter-surveillance, attempting to conceal the drug trafficking. Despite the presence of firearms, law enforcement ultimately apprehended all three men without violence.
Luna and Rios have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
ATF and DPS led the investigation as part of a multi-agency effort through the Texas Anti-Gang Center with the assistance of the Drug Enforcement Administration and Houston Police Department. Assistant U.S. Attorney Jason Corley is prosecuting the case.
Home Health Companies to Pay $2.5 Million to Settle Federal False Claims Act LawsuitRead the Press Release
United States Attorney Brandon J. Fremin announced today that Louisiana-based home health companies Health Care Options, Inc. and Health Care Options of Lafayette, Inc.; Texas-based Home Care Options Houston, Inc.; and Howard D. Austin, II, have agreed to settle a civil fraud complaint filed under the federal False Claims Act by paying $2.5 million to the United States.
The settlement resolves allegations that, between 2011 and 2018, the defendants defrauded the Medicare and Louisiana Medicaid programs by submitting false and fraudulent claims for payment for home health services without required face-to-face encounters between patients and physicians.
“The United States expects companies and individuals serving Medicare and Medicaid beneficiaries, including people in need of home health care, to fully comply with all requirements of those programs,” said U.S. Attorney Fremin. “This case highlights our commitment to aggressively pursue anyone trying to avoid their obligations to the Government and to health care patients. I want to thank our Assistant U.S. Attorney and our partners at HHS-OIG and the Louisiana Attorney General’s Medicaid Fraud Control Unit for their outstanding efforts in achieving this result.”
U.S. District Judge John W. deGravelles has issued an order accepting the parties’ settlement agreement and has entered a consent judgment in favor of the United States. The settlement resolves a lawsuit, United States ex rel. Melanie Berzas v. Health Care Options, Inc., et al., No. 14-199-JWD-RLB, filed under the whistleblower provisions of the False Claims Act, which permits private parties to file suit on behalf of the United States and to share in a portion of the Government’s recovery.
This matter was investigated by the U.S. Attorney’s Office for the Middle District of Louisiana and the U.S. Department of Health and Human Services, Office of Inspector General, with substantial assistance from the Louisiana Department of Justice Medicaid Fraud Control Unit. The United States was represented by Assistant United States Attorney Chase E. Zachary, a member of the Affirmative Civil Enforcement (ACE) unit in the U.S. Attorney’s Office. The ACE unit is responsible for filing civil lawsuits on behalf of the United States to recover government money lost to fraud or other misconduct and to impose civil penalties for violations of federal health, safety, and environmental laws.
Hartsville Man Sentenced to 4 Years in Federal Prison on Gun ChargeRead the Press Release
Florence, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Kyre Christen Brown, 25, of Hartsville, was sentenced to 4 years in federal prison after pleading guilty to being a felon in possession of a firearm and ammunition.
Evidence presented to the court showed that on September 8, 2018, an officer with the Hartsville Police Department was on patrol when he saw Brown walking northbound on the sidewalk. The officer confirmed that there was an outstanding warrant for Brown, then pulled into a nearby driveway, opened his door, and attempted to make contact with Brown. As soon as the officer opened his door, Brown ran, and the officer pursued Brown on foot. Brown ran through a backyard, jumped a fence into the backyard of another house, and stopped for a moment near a bush, where he appeared to be hiding something. When Brown saw the officer coming, he took off again but eventually stopped in another back yard, where the officer apprehended him. Officers searched the area near the bush where Brown had briefly stopped and found a loaded revolver.
Federal law prohibits Brown from possessing firearms and ammunition because he has prior convictions for strong arm robbery, assault and battery first degree, and second degree burglary.
United States District Judge Donald C. Coggins sentenced Brown to 48 months in federal prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Hartsville Police Department. It was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant United States Attorney Lauren Hummel of the Florence office prosecuted the case.
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Harrison County man indicted for failing to update his sex offender registrationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Gordon Eugene Mays, Jr., of Reynoldsville, West Virginia, was indicted today by a federal grand jury on a sex offender charge, U.S. Attorney Bill Powell announced.
Mays, age 55, was indicted on one count of “Failure to Update Sex Offender Registration.” Mays, a person required to register as a sex offender, is accused of failing to update his registration in September 2018.
Mays faces up to 10 years incarceration and a fine of up to $250,000. 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 United States Marshal Service investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Georgia Tech professor sentenced for defrauding the National Science FoundationRead the Press Release
ATLANTA - Maysam Ghovanloo has been sentenced for violating the federal wire fraud statute in furtherance of a scheme to defraud the National Science Foundation. Ghovanloo was a tenured full professor in the School of Electrical and Computer Engineering at the Georgia Institute of Technology.
“Grant funding is limited, and the competition for those dollars is keen,” said U.S. Attorney Byung J. “BJay” Pak. “People awarded grants to do research and development vow that they will adhere to the rules governing it. Ghovanloo decided to sacrifice his reputation by dodging those rules and lying.”
“The National Science Foundation's Small Business Innovation Research (SBIR) program provides small businesses with funding to conduct research and development work that will lead to the commercialization of innovative new products and services. This sentence serves as a reminder that fraud in the SBIR Program will not be tolerated. The NSF Office of Inspector General remains committed to ensuring the integrity of the SBIR program and will actively pursue oversight of these taxpayer funds. I commend the U.S. Attorney’s Office and our investigative partners for their support in this effort.”
According to U.S. Attorney Pak, the charges and other information presented in court: Maysam Ghovanloo owned and operated a Georgia corporation called Bionic Sciences, Inc. (BSI). Ghovanloo and BSI received federal grants through Small Business Innovation Research (SBIR) programs sponsored by NSF. To be eligible for SBIR grant funds, Ghovanloo and BSI were required to meet program-eligibility requirements, adhere to award terms and conditions, and provide only truthful information in all documents submitted to NSF. However, Ghovanloo submitted certifications that contained materially false and fraudulent statements and omissions, followed by electronic payment requests to NSF.
Maysam Ghovanloo, 46, of Atlanta, Georgia, was sentenced to eight months home confinement, and ordered to pay $40,000 in restitution. As part of his guilty plea and plea agreement, he resigned from his position at Georgia Tech, effective June 21, 2019. He was also was barred from doing business with the federal government for a period of three years. Ghovanloo was convicted on these charges on August 21, 2019, after he pleaded guilty.
The National Science Foundation Office of Inspector General and the Department of Health and Human Services Office of Inspector General investigated this case.
Assistant U.S. Attorney Russell Phillips prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Fort Wayne Man Sentenced to 70 Months in Prison for Distribution of MethamphetamineRead the Press Release
FORT WAYNE – Carlos Prado, 40 years old, of Fort Wayne, Indiana, was sentenced by U.S. District Court Judge Holly A. Brady after pleading guilty to distribution of methamphetamine, announced U.S. Attorney Thomas L. Kirsch II.
Prado was sentenced to 70 months in prison. He will be deported upon the completion of his sentence.
According to documents in the case, in July of 2016, Prado sold a confidential informant approximately 2 ounces of methamphetamine.
This investigation was conducted by the Drug Enforcement Administration, with assistance from the Federal Bureau of Investigation, the Indiana State Police, the Allen County Police Department, and the Fort Wayne Police Department. The case was prosecuted by Assistant United States Attorney Anthony W. Geller.
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Former VA Hospice Nurse Indicted for Allegedly Diverting and Tampering with Morphine Meant for Dying VeteransRead the Press Release
BOSTON – A Tewksbury woman was indicted today by a federal grand jury in Boston on charges of diverting morphine while employed as a nurse in the hospice unit at the Veterans Affairs (VA) Medical Center campus in Bedford.
Kathleen Noftle, 55, was charged by indictment with one count of tampering with a consumer product and one count of obtaining a controlled substance by misrepresentation, fraud, deception, and subterfuge. Noftle was arrested and charged by criminal complaint in this case in September 2019.
According to charging documents, on Jan. 13, 14, and 15, 2017, Noftle used her position as a nurse to obtain doses of morphine that were meant to be given to the veterans under her care in the hospice unit. Noftle admitted to federal agents that she mixed water from the sink with a portion of the liquid morphine doses, and then administered the diluted medication to patients orally. It is alleged that Noftle then ingested a diluted amount of the remaining drug. The investigation revealed that, due to diluted morphine administered by Noftle, one veteran may have experienced increased difficulty breathing (dyspnea) and increased suffering in his final days. The investigation also found that before working at the VA Medical Center in Bedford, Noftle had resigned from her position as a nurse at a different hospital following her failure to follow appropriate procedures when wasting narcotics on 60 occasions.
The charge of tampering with a consumer product provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. The charge of obtaining a controlled substance by misrepresentation, fraud, deception, and subterfuge, provides for a sentence of up to four years in prison, one year of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Sean Smith, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office made the announcement today. Assistant U.S. Attorney William B. Brady of Lelling’s Health Care Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Uniontown Resident Sentenced to Prison for Defrauding his Employer, Tax Evasion, and Failing to File Tax ReturnsRead the Press Release
PITTSBURGH - A former resident of Uniontown, Pennsylvania, has been sentenced in federal court to a term of imprisonment of two years and three months (27 months) to be followed by two years of supervised release on his conviction for mail fraud, tax evasion, and willful failure to file income tax returns, United States Attorney Scott W. Brady announced today.
United States District Judge Cathy Bissoon imposed the sentence on Eugene Traficante, age 44, now of Weirton, West Virginia.
Previously, in connection with Traficante’s guilty plea, the court was advised that in 2006, Traficante was hired to perform billing and bookkeeping work for a commercial refrigeration repair and maintenance business located in Steubenville, Ohio. As part of his duties, Traficante had access to a post office box where the business received payments from customers through the United States mail. In May 2006, Traficante opened a bank account and began depositing into the account checks that he removed from the company’s post office box without authorization. Traficante withdrew fraudulently obtained monies from the account for his own personal benefit. Traficante stole or diverted approximately 168 checks totaling $345,552.59. Additionally, from around January 2011 through April 15, 2012, Traficante willfully attempted to evade income tax due and owing by him to the United States for the 2011 calendar year. Traficante also willfully failed to file income tax returns following the close of the 2012 and 2013 calendar years despite being required by law to do so.
Assistant United States Attorneys James R.Wilson and David Lew prosecuted this case on behalf of the government.
The Internal Revenue Service - Criminal Investigation and the United States Postal Inspection Service conducted the investigation leading to the successful prosecution of Traficante.
Former Pasco County Assistant Principal Sentenced to 35 Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven today sentenced Kyle Dale Ritsema (36, Land O’Lakes) to 35 years in federal prison for producing, distributing, and possessing child pornography.
Ritsema had pleaded guilty on December 21, 2018.
According to court documents, in 2014, Ritsema, a former teacher and Assistant Principal at Cypress Creek Middle High School in Pasco County, enticed a 14-year-old child on the mobile application “Grindr.” Ritsema had sex with the child on at least five occasions over the course of one year and produced pornographic images of the child. Ritsema shared the images with others, including another employee of Pasco County Schools. A subsequent investigation revealed that Ritsema had targeted many other minors, including former students, and enticed them for sex, and on several occasions sexually abused them. Ritsema’s conversations also revealed that he is HIV positive and that, on multiple occasions, he did not disclose his HIV status despite having unprotected sex with unknowing children and adults.
Beginning in March 2017, and continuing until his arrest in this case, Ritsema had been an Assistant Principal at Cypress Creek Middle High School. Before holding that position, he was the Assistant Principal at Pine View Middle School (appointed in July 2015), an Assistant Principal Administrative Intern at River Ridge Middle School (appointed in January 2015), and a math teacher and math coach at Paul R. Smith Middle School, Gulf Highland Elementary School, and Seven Springs Middle School (beginning in 2006).
“Our communities are safer today with this deviant child sexual predator behind bars, thanks to our HSI special agents, the Florida Department of Law Enforcement and the Middle District Florida U.S. Attorney’s Office,” said HSI Tampa Special Agent in Charge James C. Spero. “This criminal’s former position of trust makes this case all the more egregious and we hope today’s sentencing can bring a small measure of closure to the innocent victims and their families.”
This case was investigated by the Department of Homeland Security, Homeland Security Investigations, with assistance from the Florida Department of Law Enforcement and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Frank Murray.
Any person who had unprotected sexual contact with Ritsema, or any person who was, or knows of someone who may have been, a possible child victim, is urged to contact HSI at 1-866-DHS-2ICE or http://www.ice.gov/webform/hsi-tip-form.
Former PA Man Sentenced for Importing Fentanyl and Illegally Possessing Firearms while Unlawfully Using a Controlled SubstanceRead the Press Release
PITTSBURGH - A former resident of Donora, Pennsylvania, has been sentenced in federal court to fourmonths incarceration, followed by three years of supervised release, the first sixmonths of which will be home detention, on his conviction of violating a federal narcotics law and federal firearm law, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Joy Flowers Conti imposed the sentence on Christian B. Drennan, 28, now currently residing in St. Clairsville, Ohio.
According to information presented to the court, from in and around April 2018 and continuing until September 6, 2018, Drennan, an opioid addict, conspired to import less than 40 grams of fentanyl, a controlled substance, from China for his personal use and possessed firearms while an unlawful user of a controlled substance.
Assistant United States Attorney Shardul S. Desai prosecuted this case on behalf of the government.
United States Attorney Brady commended the Homeland Security Investigations, the United States Postal Inspection Service, the Federal Bureau of Investigation, and Pennsylvania State Police as part of the Joint Criminal Opioid Darknet Enforcement (J-CODE) initiative for the investigation leading to the successful prosecution of Drennan.
Former Merced Health Care Provider CEO and Licensed Nurse Practitioner Sentenced to 5 Years in Prison for Health Care FraudRead the Press Release
FRESNO, Calif. — Sandra Haar, 59, of Merced, was sentenced on Monday by U.S. District Judge Lawrence J. O’Neil to five years in prison and ordered to pay $6,107,846 in restitution for health care fraud and conspiracy to receive kickbacks, U.S. Attorney McGregor W. Scott announced. Haar was ordered to self-surrender on Jan. 15, 2020, to begin serving her sentence.
Haar was the founder and chief executive officer of Horisons Unlimited, a nonprofit public benefit corporation that provided health and dental services in Merced and surrounding communities. According to court documents, between January 1, 2014, and March 2017, Haar orchestrated a scheme to bill Medicare and Medi-Cal for services she knew were not reimbursable, and she profited by over $3.7 million from her fraud. For example, Haar billed Medi‑Cal for health and dental services that were not rendered and for unnecessary health care services. She also billed Medi-Cal for office visits with purportedly licensed doctors when the patients instead were dispensed Suboxone, an opioid medication, in the parking lots of McDonald’s and Rite Aid in baggies.
According to court documents, Haar also received thousands of dollars in kickbacks in cash from an account executive at a laboratory in exchange for using it for patients’ laboratory testing.
This case was the product of an investigation by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services Office of Inspector General (HHS OIG), the California Department of Health Care Services, and the California Bureau of Medi-Cal Fraud & Elder Abuse. Assistant U.S. Attorneys Lee S. Bickley and Michael Tierney prosecuted the case.
Former Head of Pakistani Drug Trafficking Network Sentenced to 15 Years in Prison for Narcotics OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that SHAHBAZ KHAN (“KHAN”) was sentenced to 15 years for conspiring and attempting to import massive quantities of heroin into the United States. KHAN was taken into custody by Liberian authorities on December 1, 2016, and expelled to the United States later that day, based on a pending Complaint in this District. He previously pled guilty before U.S. District Judge Lorna G. Schofield, who imposed today’s sentence.
U.S. Attorney Geoffrey S. Berman stated: “Shahbaz Khan was an international drug kingpin who distributed staggering quantities of narcotics from southwest Asia to countries throughout the world. In 2016, he agreed to transport tens of thousands of kilograms of heroin to New York City. Today’s sentence shows that we will continue to seek justice against those who flood our communities with heroin and other deadly, highly addictive drugs that fuel the opioid epidemic plaguing this city.”
According to the Complaint, the Superseding Indictment, and other filings in this case:
KHAN, a Pakistani national, was the leader of a drug trafficking organization (the “DTO”) based in Afghanistan and Pakistan that produced and distributed massive quantities of narcotics around the world. In 2007, KHAN was designated a Narcotics Kingpin under the Foreign Narcotics Kingpin Designation Act by then-President George W. Bush. In total, KHAN and the DTO distributed hundreds of tons of drugs.
Between approximately August and December 2016, KHAN conspired to send tens of thousands of kilograms of heroin hidden in maritime shipping containers and air cargo shipments to New York City. KHAN spent weeks negotiating the shipments with individuals he understood to be customers of the DTO, who were in fact confidential sources (the “CSes”) working for the Drug Enforcement Administration (the “DEA”). The CSes told KHAN that they worked with a New York City-based drug trafficker – who, unbeknownst to KHAN, was a DEA undercover agent (“UC-1”) – and that UC-1 was looking for a new source of supply for large quantities of heroin. In August 2016, the CSes told KHAN that UC-1 was interested in purchasing up to 300 kilograms of heroin per week from KHAN and the DTO. KHAN bragged to the CSes about his decades-long experience in international drug trafficking, including that he had once transported 114 tons of drugs in a single year, including 64 tons of hashish.
Within weeks of first meeting the CSes, KHAN traveled to the Maldives to meet with UC-1 and the CSes. During the course of these meetings, KHAN explained the various ways that he could transport heroin to UC-1. KHAN suggested, for example, that he could ship heroin from Pakistan to a transshipment point in Africa, where UC-1 would receive the heroin and have it shipped to the United States. KHAN further explained that he could ship narcotics “wherever” UC-1 wanted, and emphasized that “if you tell me America, I will send it to America.”
In October 2016, KHAN provided a five-kilogram sample of high-quality heroin to the CSes in Kabul, Afghanistan. Within weeks of providing the sample, KHAN traveled to Liberia to meet with UC-1 and to examine a supposed warehouse that could serve as a transshipment point for their future heroin deals. While in transit to Liberia, KHAN explained to UC-1 that he could ship up to 10,000 kilograms at a time, and that it was just as easy for him to ship 10,000 kilograms as it was to ship 1,000 kilograms. Once KHAN landed in Liberia, he was arrested and expelled to the United States.
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In addition to the prison term, KHAN, 71, was sentenced to five years of supervised release.
Mr. Berman praised the outstanding investigative efforts of the DEA’s Special Operations Division’s Bilateral Investigations Unit; the DEA Accra, Canberra, Sydney, Dubai, Islamabad, Kabul, Nairobi, and New Delhi Country Offices; the DEA New York Organized Crime Drug Enforcement Task Force Financial Investigative Team; the Government of Liberia; the Liberian Drug Enforcement Agency; the DEA Nairobi Country Office Kenyan Vetted Unit; the Australian Criminal Intelligence Commission; and the Maldives Police Service.
The case is being prosecuted by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Shawn G. Crowley, Rebekah Donaleski, and Jason A. Richman are in charge of the prosecution.
Dunmore Man Charged with Bank FraudRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Eric R. Colborn, age 49, of Dunmore, Pennsylvania, was charged in a criminal information on October 31, 2019, with conspiracy to commit bank fraud.
According to United States Attorney David J. Freed, the criminal information alleges that Colborn created a counterfeit Wells Fargo brokerage statement in his name showing that he had in excess of $14,000,000 in a brokerage account, and then fraudulently induced reliance on the counterfeit brokerage statement to secure property and other things of value. It is also alleged that Colborn and his coconspirator entered into sales agreements to purchase property and vehicles by writing checks on accounts neither Colborn or his coconspirator owned or were authorized to use. The scheme to defraud started in or about November 2017 and continued through March 2019. The total loss amount is approximately $404,293.
The case was investigated by the Internal Revenue Service – Criminal Investigation Division, the Dunmore Police Department, and the Lackawanna County District Attorney’s Office. Assistant U.S. Attorney Michelle Olshefski is prosecuting the case.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 30 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Dominican National Indicted on Fentanyl Trafficking, ID Theft, Heath Care Fraud ChargesRead the Press Release
PROVIDENCE – A Dominican national living in Providence, who allegedly delivered fentanyl on at least four occasions and who allegedly adopted a stolen identity and used it to gain a Rhode Island driver’s license and Medicaid benefits, was indicted by a federal grand jury today on charges of trafficking fentanyl, aggravated identity theft, misusing a Social Security number, and health care fraud.
Joaquin Soto-Medina, aka P.C.R., 47, was arrested by members of the Woonsocket Police Department on October 7, 2019, moments after he exited a residence in Woonsocket that a court-authorized search by Woonsocket Police Detectives allegedly revealed was a drug stash house. It is alleged that at the time of his arrest Soto-Medina was found to be carrying 18 plastic baggies containing fentanyl.
Prior to the search of the residence, it is alleged that on four occasions between August 28, 2019, and September 17, 2019, Soto-Medina delivered baggies containing one gram of fentanyl to another person.
According to court documents and information presented to the Court, a subsequent investigation by Homeland Security Investigations and the U.S. Department of Health and Human Services, Office of Inspector General determined that in 2014, Soto-Medina allegedly used the stolen identity of an individual living in Puerto Rico, including that person’s Social Security number, to obtain a Rhode Island driver’s license. In 2016, he allegedly used the stolen identification when filing an application for and being approved to receive Medicaid health benefits.
A federal grand jury today charged Joaquin Soto-Medina with two counts of false representation of a Social Security number, and one count each of aggravated identity theft, health care fraud, conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl, and possession with intent to distribute fentanyl and aiding and abetting, announced United States Attorney Aaron L. Weisman, Woonsocket Police Chief Thomas Oates, Homeland Security Investigations Acting Special Agent in Charge Jason Molina, and Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General.
Conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl and possession with intent to distribute fentanyl and aiding and abetting each are punishable by statutory penalties of a minimum mandatory 10 years up to life in federal prison and 5 years supervised release. Health care fraud is punishable by up to 10 years imprisonment and 3 years supervised release. False representation of a Social Security number is punishable by 5 years imprisonment and 3 years supervised release. Aggravated identity theft is punishable by 2 years imprisonment, consecutive to any other sentence imposed in this matter.
According to court documents, in 2001, Soto-Medina, a Dominican national, was found to be in the United States illegally. After being administratively charged with entering the United States without inspection, he voluntarily returned to the Dominican Republic.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorney Dulce Donovan.
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Denver Man Convicted of Large-Scale Cocaine Trafficking Sentenced to Lengthy Prison TermRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Michael Benitez-Lopez, aka “Mikey” aka “Money Mike”, age 27 of Denver, Colorado, was sentenced late last week by Chief U.S. District Court Judge Philip A. Brimmer to serve 180 months (15 years) in federal prison for distributing large quantities of cocaine. Following his prison sentence, Benitez-Lopez was ordered to spend 5 years on supervised release. The defendant appeared at the hearing in custody, and was remanded at its conclusion.
According to court documents and arguments made at trial, from March 2017 through April 1, 2018, Benitez-Lopez received multiple-kilograms of cocaine as part of a large scale drug trafficking organization that was responsible for importing more than 200 kilograms of cocaine during the course of the conspiracy. The defendant sold multi-kilogram quantities of cocaine to lower level dealers throughout Metro Denver.
“This is a significant sentence that is justified by the scale of the drug trafficking operation and the quantity of cocaine being imported into Colorado,” said U.S. Attorney Jason Dunn. “We hope other dealers will see this sentence and get the message that peddling drugs in Colorado has harsh federal penalties.”
“This investigation targeted a significant cocaine trafficking organization in the Denver metropolitan area,” said DEA Denver Division Special Agent in Charge Deanne L. Reuter. “This investigation is another prime example of the commitment of the DEA, working with the U.S. Attorney’s Office and our law enforcement partners, to dismantle and remove drug trafficking organizations in order to protect our communities.”
The trial lasted three days before Chief U.S. District Court Judge Philip A. Brimmer. The jury deliberated for two hours before reaching their guilty verdicts on August 9, 2019.
This case was investigated by the Drug Enforcement Administration. The defendant was prosecuted by Assistant U.S. Attorneys Stephanie Podolak and Zachary Phillips.
DEA Announces Maine Practitioner Diversion Awareness TrainingRead the Press Release
Event will take place on Wednesday, November 6, 2019, from 8:30 a.m. to 5:00 p.m. at the Augusta Civic Center – North Wing, 76 Community Drive, Augusta, Maine 04330
U.S. Attorney Halsey B. Frank to deliver opening remarks
Portland, Maine: Drug overdoses are the leading cause of injury-related deaths in the United States and every day we see the impact that prescription drug abuse has on our neighborhoods. This crisis is destroying communities throughout our nation. In an effort to address this epidemic, Drug Enforcement Administration New England Division Special Agent in Charge Brian D. Boyle and co-sponsor, the Federation of State Medical Boards, present the Maine Practitioner Diversion Awareness Training.
This invitation-only training is for DEA-registered doctors, dentists, veterinarians, physician assistants and nurse practitioners. The objective is to provide information and tools to address prescription drug abuse and addiction. The training will include topics such as the role of DEA’s Diversion Control Division, Maine initiatives regarding the prescribing of opioids, identifying methods of diversion and red flags, the DEA license registration process, health care fraud and diversion, physician case study, the Maine Prescription Monitoring Program and effective medication assisted treatment.
The Maine Practitioner Diversion Awareness Training will be held Wednesday, November 6, from 8:30 a.m. to 5:00 p.m. at the Augusta Civic Center – North Wing, 76 Community Drive, Augusta, Maine 04330. Check-in begins at 7:30 a.m. and a livestream of this event is available to DEA-registered practitioners.
U.S. Attorney for the District of Maine Halsey B. Frank and DEA New England Division Associate Special Agent in Charge Jon DeLena will be in attendance and available for comments to the media after opening remarks at 9:00 a.m. Gordon Smith, Maine Director of Opioid Response, will be available to the media after his presentation at 10:30 a.m.
Conway Man Sentenced to 12 Years in Federal Prison on Gun and Drug ChargesRead the Press Release
Florence, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Eron Jordan, 28, of Conway, was sentenced to 12 years in federal prison after pleading guilty to being a felon in possession of a firearm and possession with intent to distribute controlled substances.
Evidence presented to the court showed that on May 22, 2018, an officer with the Conway Police Department was on patrol when he saw a vehicle with tinted windows so dark that he could not see the driver through the front side window. The officer initiated a traffic stop on the vehicle, and upon approaching the vehicle, smelled an odor of marijuana. The officer explained the window tint violation to the driver, identified as Eron Jordan, asked Jordan to step out of the vehicle, and asked about the odor of marijuana. Jordan disagreed about the odor and said he had no objections to the officers looking in the vehicle. Officers searched the vehicle and discovered two bags of crack cocaine and two bags of heroin in the center console; a Smith and Wesson 9mm handgun in the glove compartment, loaded with 16 rounds of ammunition; a silver scale in the front passenger door; several cell phones; a glass jar with a small amount of suspected marijuana; $335.00 in cash in the driver’s door; and $5,762.00 in cash in a book bag on the rear passenger seat. A search of a passenger in the vehicle revealed 70 Hydrocodone pills, 69 Oxycodone pills, and 10 Buprenorphine pills. Jordan admitted that everything in the car was his and nothing belonged to the passenger.
Federal law prohibits Jordan from possessing firearms and ammunition because he has two prior state convictions for pointing and presenting a firearm.
Chief United States District Judge R. Bryan Harwell, of Florence, sentenced Jordan to 144 months in federal prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Conway Police Department, assisted by the Horry County Police Department and the Horry County Sheriff’s Office. It was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant United States Attorney Lauren Hummel of the Florence office prosecuted the case.
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Columbus man sentenced to 20 years in prison for armed bank robbery in WhitehallRead the Press Release
COLUMBUS – A Columbus man was sentenced today for robbing a bank in Whitehall, pistol-whipping two of the bank’s employees while demanding money, and conspiring with his girlfriend to hide the gun he used in the robbery.
Robert K. Mason, 43, was sentenced to 240 months in prison.
According to court documents, Mason robbed the Huntington Bank at 4550 East Broad Street on Sept. 26, 2018. Mason walked in the bank, lifted his shirt to show that he had a gun, pulled the handgun and ordered customers to the floor. Mason vaulted the counter and demanded money from the tellers, hitting two of them with the gun when he became frustrated at the speed of the employees.
Mason ran out the front door and escaped in a car driven by his girlfriend, Bretta L. Nallen. Whitehall police arrested Mason on Oct. 31, 2018. While he was in custody, he called Nallen and told her to get rid of the gun. Nallen was charged with being an accessory to the crime and evidence tampering. She pleaded guilty to the accessory charge in August 2019.
Mason pleaded guilty in April 2019 to one count of bank robbery, one count of using a firearm during a crime of violence and one count of conspiracy to tamper with evidence.
“Mason is a career criminal who has committed a number of violent offenses,” U.S. Attorney David M. DeVillers said. “That’s exactly the type of offender we prioritize prosecuting in this office. Mason earned his time in federal prison.”
DeVillers, Joseph Deters, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Columbus Division of Police Acting Chief Thomas Quinlan and Whitehall Police Chief Mike Crispen announced the sentence imposed today by U.S. District Judge Edmund A. Sargus, Jr.
Assistant United States Attorney S. Courter Shimeall is representing the United States in this case.
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Colorado U.S. Attorney's Office Files Court Action to Enforce Subpoenas Issued to State Program in Investigations of Colorado PharmaciesRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announced today that it has filed a petition in federal court to enforce subpoenas that were issued by the Drug Enforcement Administration in its ongoing investigations of two Colorado pharmacies that dispense opioids and other controlled substances.
The DEA issued the subpoenas to obtain information that the pharmacies had reported to Colorado’s Prescription Drug Monitoring Program (“PDMP”). As explained in the petition, the DEA was informed by the Colorado Attorney General’s Office that the information those pharmacies had reported to the PDMP would not be disclosed to the DEA. The petition filed today requests a court order directing three respondents—the Colorado Board of Pharmacy; Patty Salazar, Executive Director of the Colorado Department of Regulatory Agencies; and Appriss, Inc., a corporation headquartered in Kentucky that maintains information reported to Colorado’s PDMP—to produce the information sought by the DEA subpoenas.
“We are taking this action as part of our office’s efforts to aggressively pursue law enforcement investigations of anyone who may be breaking the law and contributing to Colorado’s epidemic of prescription drug abuse,” said U.S. Attorney Jason Dunn. “The DEA is fighting that epidemic with us and needs the information it subpoenaed to advance its investigations of two pharmacies. That information will reveal important details that will help us to evaluate whether the pharmacies have been following the law when they dispense controlled substances. We recognize that this information is sensitive, but, just as the state does, we respect that sensitivity and will protect the confidentiality of that information from public disclosure. We are disappointed with the refusal to comply with these lawful subpoenas, a refusal that has forced us to seek aid from the court in getting the information we need to carry out important law enforcement investigations aimed at combating the prescription drug abuse epidemic.”
This case is being handled by Assistant U.S. Attorneys Kevin Traskos and David Moskowitz in the U.S. Attorney’s Office for the District of Colorado.
Collier County Tax Preparer Convicted in Multi-Million Dollar Tax Fraud SchemeRead the Press Release
Fort Myers, FL – A federal jury has found Augustin Dalusma guilty of 12 counts of filing false claims against the Internal Revenue Service and three counts of making or subscribing to false tax returns. He faces a maximum penalty of five years in federal prison for each count of filing a false claim and up to three years’ imprisonment for each count of making a false tax return. His sentencing hearing is scheduled for January 27, 2020.
Dalusma was indicted on September 26, 2018.
According to evidence presented at trial, between 2012 and 2015, Dalusma, a tax preparer, falsified information in tax returns for 630 of his clients, fraudulently qualifying them for thousands of dollars in tax refunds that they were not lawfully entitled to collect. In total, the false claims filed on behalf of his clients exceeded $4 million over the four-year period. Dalusma also falsified his own tax returns from 2012 through 2014, significantly underreporting his own income to evade more than $30,000 in taxes for each of those years.
This case was investigated by Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorney Simon R. Eth and Trial Attorney Eyitayo St. Matthew-Daniel of the Justice Department’s Antitrust Division.
California Man Sentenced to 27 Months in Prison for Transporting 14 Kilograms of Heroin and FentanylRead the Press Release
NEWARK, N.J. – A Riverside, California, man was sentenced today to 27 months in prison for transporting heroin and fentanyl from California to New Jersey for distribution in New Jersey, U.S. Attorney Craig Carpenito; Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration, New York Division; New York City Police Commissioner James P. O’Neill; Keith M. Corlett, Acting Superintendent of the New York State Police; and Angel M. Melendez, Special Agent in Charge, Homeland Security Investigations, New York Field Office, announced.
Joselito Colindres, 42, previously pleaded guilty before U.S. District Court Judge William J. Martini to an information charging him with one count of conspiracy to distribute and possess with intent to distribute over one kilogram of heroin and over 400 grams of fentanyl. Judge Martini imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On Oct. 21, 2018, law enforcement officers learned that Colindres and Nester Estuardo Ruano Gutierrez were driving a tractor-trailer containing narcotics from California to New Jersey and elsewhere. After a lawful search of the tractor trailer, law enforcement officers found boxes of narcotics, including approximately 10 kilograms of heroin and four kilograms of fentanyl. Colindres admitted in court that these narcotics were intended for sale in and around New Jersey.
In addition to the prison term, Judge Martini sentenced Colindres to two years of supervised release.
U.S. Attorney Carpenito credited the New York Strike Force, a crime-fighting unit comprising federal, state and local law enforcement agencies supported by the Organized Crime Drug Enforcement Task Force (OCDETF) and the New York/New Jersey High Intensity Drug Trafficking Area (HIDTA), with the investigation leading to today’s sentencing.
The Strike Force is housed at the DEA’s New York Division and includes agents and officers of the DEA; the New York City Police Department; the New York State Police; Immigration and Customs Enforcement – Homeland Security Investigations; IRS-Criminal Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection; U.S. Secret Service; the U.S. Marshals Service; New York National Guard; the Clarkstown Police Department; U.S. Coast Guard; Port Washington Police Department; and New York State Department of Corrections and Community Supervision.
The government is represented by Assistant U.S. Attorney Lauren E. Repole of the U.S. Attorney’s Office’s Organized Crime Drug Enforcement Task Force (OCDETF) Unit in Newark. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.Defense counsel: Candace Hom Esq., Assistant Federal Public Defender, Newark
Bronx Gang Member Charged with 2015 MurderRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Peter C. Fitzhugh, the Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), Raymond Donovan, the Special Agent in Charge of the New York Division of the U.S. Drug Enforcement Administration (“DEA”), and James P. O’Neill, Commissioner of the New York City Police Department (“NYPD”), announced today the unsealing of an indictment charging JOSE RODRIGUEZ, a/k/a “Hov,” a/k/a “Hov Goon,” with murder in aid of racketeering, conspiracy to commit murder in aid of racketeering, and firearms offenses in connection with the murder of Daquan Cooper on June 25, 2015, in the Bronx. RODRIGUEZ was already in federal custody serving a sentence for other charges. RODRIGUEZ will be presented later today before U.S. Magistrate Judge Gabriel W. Gorenstein. The case is assigned to U.S. District Judge Alvin K. Hellerstein.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged in the indictment, Jose Rodriguez and others were responsible for the cold-blooded murder of Daquan Cooper in the Parkchester neighborhood of the Bronx in 2015. We commend the extraordinary efforts of our law enforcement partners to bring this defendant to justice.”
HSI Special Agent in Charge Peter C. Fitzhugh said: “Rodriguez allegedly ran with a gang whose calling card was violence and drug trafficking, and he is now charged with murder in aid of racketeering for his involvement in a 2015 homicide. As alleged, he may have thought he was in the clear four years later, but strong law enforcement partnerships ensure that no one will get away with murder. You commit a crime, you will be arrested and you will be prosecuted.”
DEA Special Agent in Charge Raymond Donovan said: “Too often we see murder as a byproduct of gang violence and drug trafficking. This investigation is a result of combined law enforcement efforts to thwart violent crime and bring answers to victims’ families.”
NYPD Commissioner James P. O’Neill said: “Our obligation is not just to ensure that New Yorkers in every neighborhood are safe, but that they feel safe. To that end, our work identifying and dismantling gangs and crews, and preventing the violence so often associated with their activities, continues to be of paramount importance. I thank our NYPD investigators, and our law enforcement partners in the U.S. Attorney’s Office for the Southern District, HSI, and the DEA, for their dedication and vital work in this case.”
According to the allegations in the Indictment unsealed today in Manhattan federal court[1]:
RODRIGUEZ was a member or associate of a racketeering enterprise known as the Beach Avenue Crew, a criminal organization whose members and associates engaged in, among other things, murder, attempted murder, and narcotics trafficking.
On June 25, 2015, RODRIGUEZ and others murdered Daquan Cooper in the vicinity of 1595 Unionport Road in the Parkchester neighborhood of the Bronx.
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RODRIGUEZ, 27, from the Bronx, New York, is charged with one count of murder in aid of racketeering, which carries a maximum sentence of death or life in prison, and a mandatory minimum sentence of life in prison; one count of conspiracy to commit murder in aid of racketeering, which carries a maximum sentence of 10 years in prison; one count of murder through use of a firearm, which carries a maximum sentence of death or life in prison, and a mandatory minimum sentence of five years in prison; and one count of being a felon in possession of ammunition, which carries a maximum sentence of 10 years in prison.
Mr. Berman praised the investigative work of HSI, DEA, and the NYPD. Mr. Berman added that the investigation is continuing.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Maurene Comey, Jacob Warren, and Andrew K. Chan 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 Superseding Indictment constitutes only allegations, and every fact described herein should be treated as an allegation.
British Man Pleads Guilty to Wire Fraud and Aggravated Identity Theft in Brazen Scheme that Victimized Hundreds of Thousands across the CountryRead the Press Release
A British man living in Las Vegas, Nevada, pleaded guilty today to a scheme to abuse the personal and financial information of hundreds of thousands of victims in order to steal millions of dollars, the Department of Justice announced today.
Gareth David Long, 40, pleaded guilty to one count of wire fraud and one count of aggravated identity theft in federal court in Las Vegas before U.S. District Judge Andrew P. Gordon. The court set Long’s sentencing hearing for Feb. 20, 2020.
“The defendant took millions of dollars from numerous victims by misusing their personal and financial data,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “As demonstrated by this case, the Department of Justice is committed to protecting the public from those who unlawfully use personal and financial data to victimize American consumers.”
“Today’s events serve as another example of the unremitting dedication of the Postal Inspection Service to halt the devastating effects of identity theft. Those who engage in this type of fraud must learn they cannot escape detection and will be brought to justice,” said Inspector in Charge Delany De Leon-Colon of U.S. Postal Inspection Service’s Criminal Investigations Group at National Headquarters. “The guilty plea of Gareth Long has brought justice for all who suffered financial and emotional distress because of his actions.”
As part of his plea agreement, Long admitted that he created and deposited checks drawn on the checking accounts of more than 375,000 victims without authorization during a six-month period in 2013. Although Long had no authorization to charge the victims’ accounts, he represented to victims’ banks that the victims had authorized the debits. When account holders called to complain about the charges, Long instructed his employees to tell callers that they had authorized the charges in connection with an online payday loan application. Long used the proceeds of his fraud scheme to purchase a 5,400 square foot ranch and 23 acres of land in Texas, three airplanes, cars, a fire truck, and construction and farm equipment, as well as to pay other personal expenses.
In pleading guilty, Long admitted that, from 2008 through 2013, he operated a third-party payment processing company, V Internet Corp, which also did business as Altcharge and Check Process. As a payment processor, Long specialized in the creation and deposit of remotely-created checks (“RCCs”). An RCC is a check created not by the account holder, but by the third-party payee. In place of a signature, Long’s RCCs contained a typed statement claiming that the check was authorized by the account holder. Because of this payment processing activity, Long possessed the personal and financial information of hundreds of thousands of consumers whose accounts he debited in 2012 and earlier.
In January 2013, Long stopped acting as a third-party payment processor for other merchants, and simply started using RCCs to charge the bank accounts of consumers whose personal identifying information he had acquired over the previous five years, as well as other consumers whose information Long purchased in the form of “lead lists.” Long did not have authorization to charge any of these victims’ accounts.
From January through July of 2013, Long created and deposited more than 750,000 RCCs totaling more than $22 million. While approximately half of these RCCs were immediately reversed by victims’ banks, Long nevertheless succeeded in stealing approximately $11 million over a six-month period.
The U.S. Postal Inspection Service seized more than $2.9 million from Long’s company bank accounts. Postal Inspectors also seized property that Long purchased with the proceeds of his fraudulent activity, including three airplanes and the other vehicles and property described above. In addition, as part of his plea agreement, Long will forfeit the ranch and land he purchased in Texas.
The Department of Justice’s case is being handled by Trial Attorneys John W. Burke and Ehren Reynolds of the Consumer Protection Branch in coordination with the U.S. Attorney’s Office for the District of Nevada and with substantial investigative support from the U.S. Postal Inspection Service.
Bridgeville Woman Admits Guilt in Wiretap Investigation into Crack and Cocaine Trafficking in Pittsburgh’s West EndRead the Press Release
PITTSBURGH - A resident of Bridgeville, PA, pleaded guilty in federal court to a charge of conspiracy to distribute cocaine and crack cocaine, United States Attorney Scott W. Brady announced today.
Brianne Dean, 31, pleaded guilty to two counts before Senior United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that in 2017, the Federal Bureau of Investigation and the Drug Enforcement Administration initiated a wiretap investigation, primarily targeting the GBK street gang and drug trafficking in and around an area known as the Greenway Projects, located in the West End of the City of Pittsburgh. The wiretap investigation revealed that from in and around November 2017 through in and around June 2018, Dean and her co-conspirators distributed 28 grams or more of crack cocaine and 500 grams or more of powder cocaine in and around the area of the Greenway Projects.
Judge Schwab scheduled sentencing for March 31, 2020 at 9:00 a.m. The law provides for a total sentence of not less than 5 years and up to life in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Pending sentencing, the court continued the defendant’s bond.
Assistant United States Attorneys Tonya Sulia Goodman and Yvonne M. Saadi are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Drug Enforcement Administration jointly led the multi-agency investigation, which also included the Pittsburgh Bureau of Police, Allegheny County Sheriff’s Office, Pennsylvania State Police, Robinson Township Police Department, Stowe Township Police Department, Pennsylvania Attorney General’s Office, Wilkinsburg Borough Police Department, and the McKees Rocks Police Department, that led to the prosecution of Dean.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Boston Gang Member Sentenced for Federal Firearm OffenseRead the Press Release
BOSTON – A Boston man, affiliated with the Vine/Forest Street and Orchard Park gangs, was sentenced today in federal court in Boston for illegally possessing a firearm and ammunition.
Quantae Elmore, 22, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 30 months in prison and three years of supervised release. In July 2019, Elmore pleaded guilty to one count of being a felon in possession of a firearm and ammunition.
On May 4, 2018, police officers encountered Elmore with a loaded firearm in his waistband on Zeigler Street, in the Orchard Gardens development of Boston’s Roxbury neighborhood, in the company of other Vine/Forest Street and Orchard Park gang members. Elmore had previously been convicted of a crime punishable by more than one year in prison and was therefore prohibited by federal law from possessing a firearm and ammunition.
United States Attorney Andrew E. Lelling; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Boston Police Commissioner William Gross made the announcement today.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Arizona Man Sentenced to over 11 Years in Prison for Kidnapping Girl and Transporting and Possessing Child PornographyRead the Press Release
LAS VEGAS, Nev. — Luis Angel Vicente Martir Gudiel, 27, of Arizona, was sentenced today by U.S. District Judge James C. Mahan to 11 years in federal prison to be followed by lifetime supervised release, U.S. Attorney Nicholas A. Trutanich announced. Gudiel will be deported after serving his sentence.
According to court documents, in 2016, Gudiel met a 14-year-old girl at church in Arizona and began a sexual relationship with her. The relationship ended when the victim’s family and church members learned of their relationship. In December 2017, Gudiel rekindled his sexual relationship with the victim and they communicated with each other via Snapchat and Facebook. From December 2017 to March 2018, Gudiel had sex with the victim more than 50 times. On March 4, 2018, when the victim was 15 years old, Gudiel picked her up from church and drove her home.After seeing the victim’s father outside the home, Gudiel told the victim that they were running away together and drove her to Las Vegas. When they arrived in Las Vegas, Gudiel received a call from the Phoenix Police Department looking for the victim. Through a collaborative effort between the Phoenix Police Department and the FBI, the victim was found in Las Vegas and returned safely to her family. Gudiel was arrested and officers obtained a search warrant for his cell phone. A forensic review of that phone showed child pornography videos of the victim that Gudiel had produced, transported, and possessed. Gudiel pleaded guilty in June 2019, to transportation of child pornography and possession of child pornography.
This case was the product of an investigation by the FBI. Assistant U.S. Attorney Elham Roohani prosecuted the case.
This investigation is 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 the U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, 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.
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2 local meth conspiracy defendants opt for guilty pleasRead the Press Release
LAREDO, Texas – A duo accused of conspiring to possess meth now face up to life imprisonment after pleading guilty to their respective roles in the crime, announced U.S. Attorney Ryan K. Patrick.
Juan Carlos Hernandez, 38, a lawful permanent resident, and Isidro Gonzalez, 44, both of whom reside in Dallas, pleaded guilty today in federal court.
On June 15, Hernandez attempted admission into the country as a passenger on a commercial bus at the Lincoln Juarez Port of Entry in Laredo. After an x-ray revealed anomalies in one of his suitcases, a K-9 alerted to that bag. Ultimately, authorities seized 24 bottles appearing to be a legitimate beverage product. However, they actually held a total of 16.25 kilograms of liquid meth.
Gonzalez asked his friend, Hernandez, to transport the bottles from the Hernandez family home in Ocampo, Guanajuato, Mexico, to his residence in Dallas.
Gonzalez said the meth was converted from liquid to crystal form at his residence. Authorities conducted a search at that location and seized approximately 13.5 and two kilograms of liquid and crystal meth, respectively.
Sentencing for Hernandez and Gonzalez has been set for Feb. 22 and 24, respectively, before U.S. District Judge Marina Garcia-Marmolejo. At that time, they face up to life in prison as well as a possible $10 million maximum fine.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with assistance from Customs and Border Protection. Assistant U.S. Attorney Michael Bukiewicz is prosecuting the case.
Monday 4 November 2019
Youth Baseball Umpire Sentenced to over 17 Years in Federal Prison for Distribution and Receipt of Child PornographyRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that Matthew Lee Lane, age 48 of Spokane, Washington, was sentenced following conviction after a six-day jury trial in June 2019, of one count of Distribution of Child Pornography, and one count of Possession of Child Pornography. United States District Judge Rosanna Malouf Peterson sentenced Lane to a 210-month term of imprisonment, to be followed by a life term of court supervision after he is released from federal prison. Judge Peterson also required Lane to register as a sex offender upon completion of his prison sentence.
According to evidence introduced at trial, Lane downloaded thousands of images of child pornography via the internet, and then shredded nearly all of them in an effort to elude law enforcement. But he also transmitted images of child pornography to an undercover FBI agent over a Peer-to-Peer network, which led to a federal search warrant at his residence in North Spokane. Significant indicia of child pornography were recovered from his digital devices, including not only log files indicating that he had downloaded and deleted thousands of child pornography files, but memes involving the kidnapping of children and other forms of sexual exploitation of children. Lane was a youth baseball umpire at the time he was engaging in child exploitation conduct online.
At sentencing, Judge Peterson noted that Lane tried to shred all the evidence of his online child exploitation conduct, which demonstrated both consciousness of guilt and an effort to elude law enforcement. She specifically articulated the dangers of online child pornography, and the ways in which the victims are damaged by their images being traded on the Internet forever. In particular, Judge Peterson noted that Lane contributed to a market for additional abuse by engaging in the downloading and trading of child pornography images. Judge Peterson also noted Lane’s criminal history included a prior conviction for rape.
United States Attorney Hyslop said, “Child pornography victimizes the most innocent and vulnerable in our communities. By distributing child pornography, Matthew Lee Lane further victimized the children depicted in the horrifying images, and helped perpetuate the market for such images. This sentence should serve as a warning to people who may collect or trade child pornography, they will be actively pursued by federal, state and local law enforcement officers. The United States Attorney’s Office for the Eastern District of Washington will continue to aggressively prosecute child exploitation crimes that occur in the Eastern District of Washington.”
This case was pursued as part of Project Safe Childhood (“PSC”), a nationwide initiative launched in May 2006 by the United States 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, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. The PSC Initiative has five major components:
· Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
· Participation of PSC partners in coordinated national initiatives;
· Increased federal enforcement in child pornography and enticement cases;
· Training of federal, state, and local law enforcement agents; and
· Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
This case was investigated by the Spokane Resident Office of the Federal Bureau of Investigation and was prosecuted by David M. Herzog, an Assistant United States Attorney for the Eastern District of Washington.
Woman from Mexico Pleads Guilty After Arrest with 21 Pounds of MethRead the Press Release
WICHITA, KAN. – A woman from Mexico who was stopped in Kansas with 21 pounds of methamphetamine pleaded guilty today to a federal charge of drug trafficking, U.S. Attorney Stephen McAllister said.
Maria Alonso-Espinoza, 30, pleaded guilty to one count of possession with intent to distribute methamphetamine. The Kansas Highway Patrol stopped her car on Feb. 26, 2019, on Interstate 70 near Russell, Kan. Her brother was driving and she was riding as a passenger. She was the registered owner of the car.
Troopers found 21 pounds of methamphetamine hidden in the driver’s side rear quarter panel. Investigators learned Alonso-Espinoza was taking the methamphetamine from Colorado to Wichita for distribution.
Sentencing is set for Jan. 27. She could face a penalty of not less than 10 years in federal prison and a fine up to $10 million. McAllister commended the Kansas Highway Patrol, the Wichita Police Department and Assistant U.S. Attorney Mona Furst for their work on the case.
United States Sues Air Methods for Operating Air-Ambulance Helicopter with "Severely Corroded" ComponentsRead the Press Release
DENVER – United States Attorney Jason R. Dunn filed a complaint for civil penalties today against Air Methods Corporation. The Complaint alleges that Air Methods violated Federal Aviation Administration (“FAA”) regulations by operating an emergency-services helicopter on 51 flights after having been notified by the FAA that the helicopter’s pitot-tubes—parts necessary to determine airspeed—were “severely corroded.”
The FAA regulates the operation of aircraft within the United States. As part of the FAA’s mission to ensure safety, the FAA routinely inspects aircraft within its jurisdiction.
The complaint alleges that on November 4, 2014, an FAA Aviation Safety Inspector inspected an Air Methods helicopter in Tampa, Florida. During that inspection, the safety inspector noticed that the helicopter’s pitot tubes were severely corroded. A pitot tube is a component of the pressure measurement system used to determine airspeed. If a pitot tube is not functioning properly, it can cause the airspeed reflected on a helicopter’s instruments to vary significantly from the actual airspeed, which can present serious safety concerns. The complaint alleges that Air Methods was aware of the hazards of operating aircraft with severely corroded pitot tubes, as it had previously experienced a helicopter incident where burnt and corroded pitot tubes became clogged, causing the helicopter’s auto-pilot to partially disengage and the aircraft’s instruments to suddenly indicate an airspeed of 30 knots higher than the helicopter’s actual speed.
The complaint alleges that, after being notified by the FAA that the pitot tubes on its helicopter were severely corroded, Air Methods did not fix or replace the corroded parts, but instead continued to operate the helicopter on 51 flights. The complaint alleges that, by continuing to operate the helicopter with severely corroded pitot tubes, Air Methods violated applicable federal regulations. The complaint seeks to recover civil penalties from Air Methods up to the maximum amount allowed by law for the alleged regulatory violations.
“When a federal safety inspector notifies an air-ambulance company that one of its helicopters has a potential safety issue, the company must address that issue,” said U.S. Attorney Jason Dunn. “Air Methods kept the helicopter in the air despite being warned about the corroded pitot tubes, and we intend to hold the company accountable for its actions.”
This case is being handled by Assistant U.S. Attorney Ian Kellogg in the U.S. Attorney’s Office for the District of Colorado.
Un hombre del sur de Colorado acusado de delito federal por confabular a hacer estallar una sinagogaRead the Press Release
El Fiscal General Auxiliar de la División de Derechos Civiles, Eric Dreiband, y el Fiscal General Auxiliar de la División de Seguridad Nacional, John C. Demers, juntos con el Fiscal Federal para el Distrito de Colorado, Jason R. Dunn, y el Agente Especial Encargado de la División del FBI en Denver, Dean Phillips, anunciaron hoy que un hombre de Colorado ha sido acusado de un delito federal de odio por haber confabulado a hacer estallar la Sinagoga Emanuel en Pueblo, Colorado.
Richard Holzer, de 27 años, vecino de Pueblo, Colorado, fue acusado por denuncia penal de haber intentado intencionalmente obstaculizar el disfrute de las personas del libre ejercicio del culto religioso mediante el uso de fuerza y el intento de usar explosivos y fuego, en contra de la Sección 247 del Título 18 del Código de los Estados Unidos.
Según la declaración jurada en apoyo de la denuncia penal, Holzer planeó destruir la Sinagoga Emanuel, una sinagoga en Pueblo, Colorado que aparece en el Registro Nacional de Lugares Históricos. Tras visitar la Sinagoga Emanuel y observar a los congregantes judíos, Holzer, quien se autoidentifica como cabeza rapada y defensor de la supremacía de la raza blanca, les dijo a unos agentes encubiertos del FBI que quería hacer algo que dejaría claro a los judíos de la comunidad que no eran bienvenidos en Pueblo y que se deberían ir o morirían. En repetidas ocasiones, Holzer expresó su odio hacia los judíos y su apoyo a una guerra santa racial (RAHOWA, por sus siglas en inglés). Holzer sugirió emplear dispositivos explosivos para destrozar la sinagoga y «borrar aquel lugar del mapa». La declaración jurada menciona que las acciones de Holzer reúnen la definición federal de terrorismo doméstico porque sus acciones involucran actos delictivos que ponen en peligro la vida humana, cuya intención es intimidar o coaccionar a una población civil.
Holzer supuestamente se reunió con agentes encubiertos del FBI que fingían ser defensores de la supremacía de la raza blanca como él para tramar un plan para atacar a Sinagoga Emanuel, y luego la visitaron juntos. La declaración jurada alega que Holzer realizó visitas adicionales por su cuenta después para inspeccionar la sinagoga, y coordinó con los agentes encubiertos para conseguir los explosivos.
En la noche del 1 de noviembre del 2019, Holzer supuestamente se reunió con agentes encubiertos, los cuales le proporcionaron dispositivos explosivos inactivos creados por el FBI, incluyendo dos bombas de fabricación casera y 14 cartuchos de dinamita. Según la declaración jurada, Holzer tenía previsto detonar los explosivos varias horas más tarde, en la madrugada del sábado 2 de noviembre.
La Fiscal Federal Auxiliar Julia Martinez y el Abogado de Litigios Michael J. de la División de Derechos Civiles están enjuiciando el caso con el apoyo de la Abogada de Litigios para la Sección de Contraterrorismo Erin Creegan, de la División de Seguridad Nacional del Departamento de Justicia. El FBI llevó a cabo la investigación con la ayuda de la Policía de Pueblo y la Oficina del Sheriff del Condado de Pueblo.
Holzer se encuentra actualmente bajo custodia federal y se enfrenta a una pena máxima de 20 años de cárcel si es declarado culpable.
La acusación contenida en la denuncia es meramente una alegación, y al acusado se lo considera inocente mientras no se pruebe su culpabilidad ante un tribunal de justicia.
Anexo(s):
Download richard_holzer_complaint.pdf
U.S. Attorney warns of vaping dangersRead the Press Release
CLARKSBURG, WEST VIRGINIA –U.S. Attorney Bill Powell is sharing a warning regarding the dangers of vaping products amongst high school and middle school students following several life-threatening incidents last week.
Appalachia High Intensity Drug Trafficking Areas (HIDTA) issued a community awareness bulletin today regarding heroin-laced vape pens in the Morgantown, West Virginia area. On October 31, 2019, two separate incidents were reported involving two high-school students from Morgantown High School who overdosed as a result of heroin-laced vape pens labeled “TKO.” Additional overdoses were reported from University High School in Morgantown from the same type of vaping pen.
“There are no limits to those who intend to do harm. Heroin and other harmful substances in vape and e-cigarettes are just the latest delivery method. Please heed this warning. It is a matter of life and death,” said Powell.
Law enforcement in Morgantown are warning of additional heroin-laced vape pends and other electronic cigarettes that might be an imminent threat to the public.
If someone has possession of one of the TKO vape products, or have concerns about a vape product they purchased, please contact your local law enforcement.
Heroin-laced vaping product that caused several overdoses in the Morgantown, West Virginia area on Octboer 31, 2019.
U.S. Attorney Birge Announces Project Safe Neighborhoods Funding to Reduce Violence in Seven West Michigan CommunitiesRead the Press Release
Local law enforcement leaders have decided to use the funds to support violence prevention programs, community engagement and alternative opportunities for those who might otherwise take part in violence
GRAND RAPIDS, MICHIGAN – United States Attorney Andrew Birge announced today that the Department of Justice awarded a total of over $340,000 to seven local communities through the Western District of Michigan’s Project Safe Neighborhoods (PSN) grant. The goal of the PSN program is to reduce violent crime rates. With that goal in mind, a committee of local law enforcement leaders determines how to allocate the federal funds. In Western Michigan, a committee of local prosecutors and law enforcement departments from Grand Rapids, Lansing, Kalamazoo, Benton Harbor, Muskegon and Battle Creek collectively decided to focus on funding violence prevention, building strong community-law enforcement relationships, and providing alternative opportunities for those who might engage in violent crime.
In Battle Creek, a $37,000 grant will partially fund the salary of a victim advocate as part of Battle Creek Police Department’s Violence Interruption Initiative. This initiative takes a holistic approach to tackling violence as a public health problem. The victim advocate will work with law enforcement to identify and intervene with those who may be looking to leave a violent lifestyle and will assist victims of violence and their families as they navigate the legal process while coordinating services from governmental and non-governmental providers.
The Boys and Girls Club of Benton Harbor will receive $37,000 for Project Learn. Project Learn will provide youth development programming, including tutoring, computer technology programs, mentoring, and club activities to children ages six to fourteen living in one of the Benton Harbor area’s most violent neighborhoods. Project Learn will be provided in the children’s neighborhood 5 days a week, 36 weeks a year and includes transportation for members. "My hope is that with this PSN sub-grant funding our Boys and Girls Club involvement with the youth in the neighborhood, residents will achieve a greater sense of community," said Michael Sepic, Berrien County Prosecutor. "It is that sense of community that, over time, will reduce the significant gun violence that plagues this neighborhood."
Kalamazoo’s Group Violence Intervention (GVI) strategy is a collaboration between community and law enforcement partners who come together to address offenders about the choices they face, the support the community has to offer them, and the opportunities and resources available to law-abiding citizens. "The Project Safe Neighborhood grant is vital to Kalamazoo being able to continue the Group Violence Initiative. This ongoing strategy is making Kalamazoo neighborhoods safer by significantly reducing the number of fatal and non-fatal shootings. I want to personally thank the Department of Justice and the United States Attorney’s Office for their role in helping my community," said Jeff Getting, Kalamazoo County Prosecuting Attorney. GVI’s award of $37,000 will partially fund the salary of a program coordinator who oversee activities, partnerships, and services associated with the program, working with street outreach and social services and liaising with law enforcement.
West Michigan Silent Observer obtained $18,500 for messaging about violence prevention and unsolved crime. In the Grand Rapids area, Silent Observer plans to offer rewards for tips on violent crime, to solicit information about unsolved homicide, to provide violence prevention materials to schools, and to print informational brochures in English and Spanish to spread the word about Silent Observer, crime prevention, and providing information to law enforcement that will help solve and prevent crimes.
Midnight Basketball will be a basketball league in Lansing for players ages sixteen to twenty-four and games will be Fridays and Saturdays from 8:00 pm to 1:00 am. Lansing Police Department members will join community players for the games with dual goals of providing a positive alternative activity at times prone to high instances of gun violence and building positive relationships between youth, police, community outreach groups, and faith-based organizations. There will also be a Basketball Leadership Academy offered once a week at community centers using basketball to teach leadership skills. These projects received approximately $37,000 in funding.
Lansing Police Department is also funding various community outreach programs, including Hoop It Up—providing officers with portable adjustable hoops and balls for pop-up basketball with the community; a Health and Fitness Club pairing youth ages 8 to 16 with officers, nutritionists, and personal trainers; welcome packages for new residents with crime prevention tips; and Light Up Lansing, providing porch light bulbs to keep violence-prone areas illuminated to prevent crime, while also giving officers a chance to build bonds with residents through positive interactions.
In Muskegon, a $17,000 grant will support three projects that share the goal of reducing youth violence in Muskegon County. Working with Silent Observer, the Muskegon Police Department will offer rewards for tips on violent crime. The Muskegon Police will also fund the Boys and Girls Club of the Muskegon Lakeshore to help train young adults who do not have a license because of the prohibitive cost of driver’s training classes. Transportation is an obstacle to youth not being able to obtain employment. Finally, the Muskegon Police will support the Social Justice Commission to host events on the last day of school before summer break. The goal of this program is to prevent the outbreak of violence, which has plagued the last day of school in the city.
Muskegon Heights Police Department is funding multiple community projects throughout their city. Implementing an integrated and holistic approach to reducing gun violence in their community, Muskegon Heights Police is collaborating with local organizations to support community basketball, baseball, and football programs for at-risk youth; host the Walk for UNITY community march; fund We Care mentors to interrupt and deter future violence in local neighborhoods; and support a variety of community events that will promote violence prevention. These projects received approximately $17,000 in funding.
The United States Attorney’s Office for the Western District of Michigan remains committed to supporting local law enforcement, community organizations, and residents to reduce violent crime in our district. The funds through the Project Safe Neighborhoods grant give communities the resources they need to implement local, comprehensive, and collaborative responses to violence. Senior Vice President Annette Chapman, of the Battle Creek Community Foundation, is the fiscal agent for the Western District of Michigan’s Project Safe Neighborhoods grant. Her dedication to the grant’s strategy, management, and community stakeholders has been a key component to the success of this program.
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Two charged in failed armored car robbery attemptRead the Press Release
HOUSTON – A pair of Houston men are set to appear in federal court for their alleged roles in the recent armored car robbery attempt at a local Walgreens, announced U.S. Attorney Ryan K. Patrick.
Corderas Simmons, 31, and Jeremy Boniaby, 28, both of Houston, are charged by criminal complaint with aiding and abetting attempted interference with commerce by robbery and aiding and abetting discharging a firearm during or in relation to that robbery. They are set to appear before U.S. Magistrate Judge Peter Bray at 1:30 p.m.
The complaint alleges that on Nov. 1, Boniaby drove a stolen white Ford F-250 with Simmons as a passenger to the Walgreens at 16233 Post Oak in Houston. Soon after, an armored Garda truck arrived for its scheduled stop. The charges allege that as soon as the driver side door of the armored truck opened, so did the rear passenger door of the stolen pickup.
Law enforcement had been following both vehicles and quickly converged on the stolen truck, according to the complaint. Boniaby allegedly fled the parking lot, drove over a median at South Post Oak and entered a strip center. The charges allege Boniaby exited the vehicle wearing gloves and a hooded sweatshirt and fled on foot. A Special Weapons and Tactics (SWAT) team pursued and took him into custody, according to the complaint. Meanwhile, Simmons allegedly exited the back seat of the vehicle and also fled on foot, wearing a mask and gloves. Shortly thereafter, he was also taken into custody.
If convicted, Simmons and Boniaby face up to 20 years in prison for the attempted interference with commerce by robbery charge. They would also receive, upon conviction, a mandatory minimum of 10 years and up to life in prison for the discharge of the firearm which must be served consecutively to any other prison term imposed.
The Houston Police Department and FBI Violent Crime Task Force conducted the investigation. Assistant U.S. Attorney Jill Stotts is prosecuting the case.
This is an example of coordination between law enforcement who are part of the Houston Law Enforcement Violent Crime Initiative which combines personnel and resources from numerous federal, state and local agencies. The goal is to proactively fight and reduce violent crime across the Greater Houston area by targeting the region’s most violent offenders, augmenting investigative and prosecutorial efforts, and enhancing training, public awareness and education.
Two Muskogee Men Found Guilty of Conspiracy to Tamper with A WitnessRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced that Muskogee residents Derrick Christopher Segue, age 26, and Klawaun Lynell Sutton, a/k/a “O.G.G.”, age 38, were each found guilty by a federal jury of Conspiracy To Tamper With A Witness. The jury trial began with testimony on Tuesday, October 29, 2019 and concluded on Thursday, October 31, 2019 with the guilty verdicts.
Evidence at trial proved that from on or about January 30, 2019, and continuing until on or about January 31, 2019, in the Eastern District of Oklahoma, the defendants, Klawaun Lynell Sutton, a/k/a “O.G.G.”, and Derrick Christopher Segue, did unlawfully, knowingly and intentionally combine, conspire, confederate and agree to commit the following offense against the United States, to wit: Tampering With a Witness, Victim, and Informant by conspiring to intimidate, threaten, and corruptly persuade another person with the intent to cause and induce any person to withhold testimony from an official proceeding.
Sutton and a Segue were told by another inmate in the jail that one of the people housed with them in the Muskogee County Jail had assisted the Muskogee Police Department in getting a search warrant for the inmate’s home. The search warrant had resulted in charges against the inmate. The law enforcement action was a part of a broad FBI and DEA investigation into drug trafficking in Muskogee. Sutton directed Segue to attack the person who had assisted in the search warrant.
“Attempting to subvert justice through the use of violence or threats against a witness is a crime against the witness and an attack on our justice system. Those who carry out the violence, direct it, or participate in planning it are subject to prosecution. This verdict should send a message to those who think they can avoid justice by tampering with a witness.” said United States Attorney Brian J. Kuester. “I would like to thank the jurors for giving their time and attention to this case. Jury duty can be an inconvenience, but it is essential to the American Justice System that members of the community willingly serve as jurors.”
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the trial and ordered the completion of presentence reports for each defendant. Sentencings will be scheduled following the completion of the presentence reports.
Assistant United States Attorney Rob Wallace represented the United States.
Two Men Plead Guilty to Selling Fraudulent Social Security and Permanent Resident CardsRead the Press Release
Two men pleaded guilty Monday to selling fraudulent social security and permanent resident cards to individuals unlawfully living in the United States, announced U.S. Attorney Trent Shores.
Cristian Alvarado Morales, 30, of Tulsa, pleaded guilty to conspiring to transfer identification documents; three counts of aggravated identity theft; possession with intent to use and transfer five or more documents and authentication features; and unlawful reentry of a removed alien. Alvarado was previously removed from the United States on March 25, 2008, from Laredo, Texas. Anderson Garces Lopez, 29, of Tulsa, pleaded guilty to conspiring to transfer identification documents.
In their plea agreements, Alvarado and Garces both admitted to conspiring to sell the fraudulent social security and permanent resident cards for personal profit. The two stated that they possessed and sold more than 100 false or fraudulent identification documents. The pair used the identities of individuals both living and deceased.
“Motivated by greed, Alvarado and Garces enabled countless illegal aliens to flout our nation’s immigration laws by selling phony identification documents for profit,” said U.S. Attorney Trent Shores. “Working and living in the United States is a privilege understandably desired by many, but there are laws governing admission and citizenship into our nation. This U.S. Attorney’s Office will uphold federal immigration laws enacted by Congress and vigorously prosecute those who facilitate unlawful entry into our country.”
“Protecting our Homeland takes many forms, but enforcing the integrity of U.S. identity documents is a critical element,” said Ryan L. Spradlin, special agent in charge of the Dallas Office of Homeland Security Investigations, which includes Oklahoma. “The HSI-led Document and Benefit Fraud Task Forces nationwide investigate the individuals and organizations who try to reap illegal profits by producing and distributing fraudulent documents.”
U.S. District Judge John E. Dowdell set sentencing for Feb. 10, 2020.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Richard M. Cella is prosecuting the case.