Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Thursday 31 October 2019
Illegal Drone Operator Sentenced for Attempting to Drop Drugs into A Georgia State PrisonRead the Press Release
ALBANY, Ga. – A Georgia man who was illegally operating an unmanned aircraft system (UAS) to drop contraband into Autry State Prison was sentenced to 48 months in prison this afternoon for his crime, said Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. Eric Lee Brown, 35, of Lithonia, Georgia pleaded guilty to one count of operating an aircraft eligible for registration knowing that the aircraft is not registered to facilitate a controlled substance offense before U.S. District Court Judge Louis Sands on Thursday, July 25, 2019. The Honorable Judge Sands sentenced the defendant to 48 months in prison, followed by 3 years supervised release on Thursday, October 31, 2019. There is no parole in the federal system.
Mr. Brown admitted in his signed plea agreement that he attempted to use a drone to drop a large bag of marijuana into Autry State Prison in Pelham, Georgia. Mitchell County deputies responded to a call on March 29, 2018 about a vehicle impeding the flow of traffic near the prison. Mr. Brown was inside the vehicle, and deputies smelled marijuana and observed the drone. They also saw two clear plastic bags containing a green, leafy substance that later was confirmed to be 294 grams of marijuana. Mr. Brown was taken into custody. Search warrants revealed detailed conversations about using the drone to drop drugs into the prison. Mr. Brown did not register the DJI Phantom 4 drone which was found in his possession, and he also did not have a valid FAA Airman’s Certificate or Remote Pilot Certificate, both actions required by law.
“Smugglers using drones, or other means, to move illegal contraband and drugs into our prisons will face prosecution and penalties in the Middle District of Georgia,” said U.S. Attorney Charlie Peeler. “The public needs to be aware that the use of drones is regulated by federal criminal statutes. Our office will enforce those laws in order to keep illegal contraband and drugs out of our prisons. I want to thank the Mitchell County Sheriff’s Office, the Georgia Department of Corrections and Department of Transportation--OIG for their excellent work in this matter.”
“The smuggling of drugs into the state prison is an ongoing battle. It is good that we can prosecute these kind of cases at the federal level and put an end to this kind of activity,” said Sheriff W.E. Bozeman, Mitchell County Sherriff’s Office.
“Today’s sentencing sets a new precedent for the federal criminal investigation and prosecution of unlawful UAS operations and sends a strong message that such activities will not be tolerated,” said Todd Damiani, Department of Transportation Office of Inspector General (DOT-OIG) Regional Special Agent in Charge. “As the use of UAS proliferates, DOT-OIG special agents, working alongside our federal, state and other law enforcement partners, will continue to bring to justice individuals who violate UAS regulations and engage in criminal use of this technology.”
“The GDC is pleased to see this case come to a close, with Brown receiving justice for his role in jeopardizing the safety of our staff, our facilities and the public,” said Commissioner Timothy C. Ward of the Georgia Department of Corrections. “We are hopeful this outcome will serve as a warning to others considering introducing contraband into our facilities, and we are proud of the work of our special agents and the continued collaboration of our law enforcement partners.”
The case was investigated by the Department of Transportation Office of Inspector General (DOT OIG), the Georgia Department of Corrections and the Mitchell County Sheriff’s Office. Assistant U.S. Attorney Leah E. McEwen prosecuted the case for the Government.
Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Idabel Man Sentenced to 16 Months for Tampering with A WitnessRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Tommy Blake McCary, age 67, of Idabel, Oklahoma, was sentenced to 16 months’ imprisonment and 3 years of supervised release for Tampering With A Witness, in violation of Title 18, United States Code, Sections 1512(b)(2)(C). The charges arose from an investigation by the McCurtain County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Superseding Indictment alleges that between January 7, 2019 and February 9, 2019, within the Eastern District of Oklahoma, the defendant knowingly attempted to corruptly persuade D.B. to avoid legal process by sending a communication as follows: “tell Ole Girl to make herself unavailable to be subpeoned to Trial. It is set for March 5 2019 I want this done immediately”, with the intent to cause and induce D.B. to evade legal process summoning D.B. to appear as a witness in a jury trial.
United States Attorney Brian J. Kuester said, “Our justice system relies upon the truthful testimony of witnesses. Trying to avoid justice by preventing or trying to prevent a person from testifying is not a successful strategy to avoid prosecution. The defendant has learned that.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Dean Burris represented the United States.
Human Smuggler Indicted on U.S. Charges and Arrested as Part of Brazilian Takedown of Significant Alien SmugglersRead the Press Release
Earlier today, extensive coordination and cooperation efforts between United States and Brazilian law enforcement authorities culminated in the Brazil Federal Police (DPF) conducting a significant enforcement operation to disrupt and dismantle a transnational alien smuggling organization, including the arrest on Brazilian charges of an alleged alien smuggler who has also been indicted in the United States. The alien smugglers targeted in this operation are alleged to be responsible for the illicit smuggling of scores of individuals from South Asia and elsewhere, into Brazil, and ultimately to the United States.
Saifullah Al-Mamun aka Saiful Al-Mamun, 32, was arrested in Brazil. Al-Mamun is charged in a superseding indictment unsealed today in the U.S. District Court for the Southern District of Texas – Laredo Division, charging him with eight conspiracy and alien smuggling counts. The enforcement operation included the execution of multiple search warrants and the additional arrests of seven Brazil-based human smugglers on Brazilian charges: Saifullah Al-Mamun, 32; Saiful Islam, 32; Tamoor Khalid, 31; Nazrul Islam, 41; Mohammad Ifran Chaudhary, 39; Mohammad Nizam Uddin, 28; and Md Bulbul Hossain, 36.
According to the indictment, Al-Mamun is alleged to have housed the aliens in São Paulo, Brazil and arranged for their travel through a network of smugglers operating out of Brazil, Peru, Ecuador, Colombia, Panama, Costa Rica, Nicaragua, Honduras, Guatemala, and Mexico to the United States. In return for smuggling the aliens into the United States, Al-Mumun and his two co-conspirators, are alleged to have arranged to be paid in Mexico, Central America, South America, Bangladesh, and elsewhere.
“Today’s indictment shows our commitment to prosecute here in the United States those alien smugglers who put our country’s public safety at risk by attempting to thwart our system of legal immigration,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “We will continue to collaborate with our foreign law enforcement partners to hold international human smugglers accountable for the threat they pose to the national security of Brazil, the United States, and other nations.”
“Transnational human smuggling organizations threaten the security of the United States,” said Special Agent in Charge Scott Brown of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Phoenix. “Through a significant joint effort with our domestic and international law enforcement partners, these arrests signify another victory as we continue to investigate and dismantle those who conspire to undermine our nation’s immigration laws for their own profit.”
Milon Miah, a Bangladeshi national who was residing in Tapachula, Mexico, was arrested Aug. 31 on arrival at George Bush Intercontinental Airport in Houston, Texas, to face charges in the superseding indictment for his role in the scheme to smuggle aliens into the United States. Moktar Hossain, 31, a Bangladeshi national formerly residing in Monterrey, Mexico, pleaded guilty on Aug. 27 for his role in the scheme to smuggle aliens to the United States for the purpose of commercial advantage or private financial gain.
Both the indictment against Al-Mamun and assistance provided by U.S. authorities to Brazilian law enforcement were coordinated under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities. HSI Phoenix led U.S. investigative efforts, working in concert with HSI Brasilia, HSI Laredo, the HSI Human Smuggling Unit ECT program, ICE’s Enforcement and Removal Operations, U.S. Customs and Border Protection National Targeting Center, the International Organized Crime Intelligence and Operations Center, the HSI Liaison to the U.S. Department of Defense, U.S. Southern Command, Operation CITADEL, BITMAP, and the National Targeting Center. The Justice Department, both Criminal Division’s HRSP and the Office of International Affairs, provided significant assistance in this matter.
Trial Attorneys James Hepburn, Erin Cox, and Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section are handling the U.S. investigation, with assistance from the U.S. Attorney’s Office for the Southern District of Texas.
The charges contained in the Al-Mamun indictment are merely allegations and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Grand Jury Indicts Former School Athletic Trainer on Multiple Charges Including Enticing A Minor and Production of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned a five-count indictment charging Austin Pratt, 30, of Conesus, NY, with enticement of a minor, production, receipt, and possession of child pornography, and transfer of obscene matter to a minor. The charges carry a minimum penalty of 15 years in prison, a maximum of life, and a $250,000 fine.
Assistant U.S. Attorney Melissa M. Marangola, who is handling the case, stated that according to the indictment and a previously filed complaint, on January 12, 2019, the New York State Police were notified by the parents of a teenaged minor girl (the victim) that they found a large amount of text messages on their daughter’s phone from her school athletic trainer, the defendant.
During an interview with the victim, she told investigators that in November 2018, Pratt began texting her. Simple texts regarding an injury the victim suffered led to nude photographs being exchanged between the two using Instagram.
Some of the text messages between the defendant and the victim included:
• “I seriously cannot stop thinking about you or wanting you. This is crazy to me for only knowing you for a few weeks and I'm not sure how to navigate these feelings as I'm obviously married and our age difference which plays a huge role in all this. I love talking to you and being around you and all I want is to be with you. I hate the fact that I am 16 years older than you and that we have to hide and be sneaky.”
• “Nothing would happen to you lol. My life would be ruined.” The victim responded, “You get divorce papers and 20 years in jail.” Pratt responded, “Yuppppp... gotta be super sneaky.”Subsequently, according to the complaint, Pratt and the victim engaged in sexual intercourse on January 7, 2019, at the victim’s home.
Pratt was arraigned before U.S. Magistrate Judge Jonathan W. Feldman and was released on conditions.
The indictment is the result of an investigation by the New York State Police, under the direction of Major Eric Laughton, the Rochester Office of the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, and the Livingston County District Attorney’s Office, under the direction of District Attorney Gregory J. McCaffrey.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
# # # #
Glendive woman sentenced to five years in prison for meth traffickingRead the Press Release
BILLINGS—A Glendive woman who admitted selling methamphetamine and heroin in the Billings community for a Denver dealer was sentenced on Wednesday to five years in prison and five years of supervised release, U.S. Attorney Kurt Alme said.
Tori Lashawn Smith, 24, pleaded guilty in June to possession with intent to distribute meth.
U.S. District Judge Susan Watters presided.
In court records, the prosecution said that Smith was a lieutenant for Nathan Trujillo, a Denver man who was convicted of drug trafficking crimes and sentenced in June to more than 20 years in federal prison.
When Turjillo was arrested in September 2018, Smith was with him in his vehicle. Law enforcement officers found 429 grams, or slightly less than one pound, of meth in the vehicle. Officers searched Smith’s purse and found two ounces of heroin. Smith later told officers she regularly sold ounce quantities of heroin for Trujillo and also had sold a pound of meth for him. One pound of meth is the equivalent of 3,624 doses.
Assistant U.S. Attorney Colin Rubich prosecuted the case, which was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
XXX
Gainesville Physician and Ex-Wife Convicted of Health Care Fraud Conspiracy, Health Care Fraud, and Money LaunderingRead the Press Release
GAINESVILLE, FLORIDA –Lawrence Keefe, U.S. Attorney for the Northern District of Florida, today announced the convictions of Erik M. Schabert, 48, a physician, and his ex-wife, Mika Kamissa Harris, 49, both of Gainesville, Florida, on health care fraud and money laundering charges involving more than $8 million. The convictions came after a three-week federal jury trial that involved more than 45 witnesses and over 850 exhibits introduced into evidence.
The jury heard evidence that, while owning and operating Reliant Family Practice in Gainesville, Harris and Schabert attempted to defraud health care benefit programs of more than $8 million by submitting fraudulent claims. Evidence showed that between January 2013 and July 2016, Reliant Family Practice received $4.4 million from Medicare and Blue Cross Blue Shield for chemical peels and dermabrasions following false diagnoses of rosacea and actinic keratosis. The jury heard evidence that Harris engaged in numerous financial transactions in which she laundered approximately $3.1 million dollars in proceeds from the health care fraud scheme.
"Americans struggle every day with the high costs of health care, and they are as much the victims of this kind of fraud scheme as the programs that suffered financial losses," Keefe said. "These convictions were the result of a concerted effort by federal law enforcement, and the United States Attorney’s Office will pursue these types of criminals as aggressively and diligently as possible."
"It’s not every day you see a crime so audacious that it results in a 90-count guilty verdict, but Erik Schabert and Mika Kamissa Harris earned their fate. Through a sizeable fraud scheme, these two offenders cheated federal health care programs and used the ill-gotten proceeds to fund their own lavish lifestyle," said Special Agent in Charge Omar Pérez Aybar of the U.S. Department of Health and Human Services Office of Inspector General. "Our agents, working diligently with our law enforcement partners, will continue to investigate such costly schemes to bring such criminals to justice."
Schabert was convicted of conspiracy to commit health care or wire fraud and 24 counts of health care fraud. He faces a maximum sentence of 20 years in prison for conspiracy and 10 years in prison for each of the health care fraud convictions. Harris was convicted of conspiracy to commit health care or wire fraud and 49 counts of health care fraud. Additionally, she was convicted of 40 counts of money laundering as a result of spending the fraudulently obtained proceeds on such things as paying off her home mortgage, adding a swimming pool and other home improvements, obtaining plastic surgery, and funding an annuity for herself. Harris faces a maximum sentence of 20 years in prison for conspiracy, 10 years in prison for each of the health care fraud convictions, and 10 years in prison for each of the money laundering convictions. Sentencing is scheduled for January 27, 2020, at 2:30 p.m. at the United States Courthouse in Gainesville.
"The FBI views health care fraud as a severe problem that impacts every American," said Rachel L. Rojas, Special Agent in Charge of the FBI Jacksonville Division. "Fraud and abuse take critical resources out of our health care system, and contribute to the rising cost of health care for everyone. This case is the result of a multi-agency investigation into a complex scheme, and the FBI and our partners will continue to allocate significant resources to investigate these crimes and prosecute those who defraud the American public."
Assistant United States Attorneys Justin M. Keen and Frank T. Williams prosecuted the case, which was jointly investigated by the Department of Health and Human Services, Office of Inspector General, the Federal Bureau of Investigation, and the Internal Revenue Service– Criminal Investigation.
"The jury verdict represents one of the largest convictions of its kind in Gainesville and could have only been accomplished by the tremendous effort of all the agencies involved, to include the extensive cooperation of Blue Cross and Blue Shield," stated Ronald A. Loecker, Acting Special Agent in Charge for IRS Criminal Investigation. "Our agents, who are experts at following the money, provided a financial road map for the jury to see how the defendants profited from their extensive fraud. We will continue to provide our expert financial skills to investigating the most egregious crimes in an effort to protect the taxpayers and victims of fraud."
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html
Frederick County Man Sentenced to More Than 12 Years in Federal Prison for Posing as a Teenaged Girl Online and Inducing Minor Males to Produce and Send Sexually Explicit Images and VideosRead the Press Release
Baltimore, Maryland - U.S. District Judge Richard D. Bennett today sentenced Jake Tyler Patterson, age 21, of Adamstown, Maryland, to 150 months in federal prison, followed by lifetime supervised release, for coercion and enticement of a minor to engage in illegal sexual activity in order to produce child pornography. Judge Bennett also ordered that, upon his release from prison, Patterson must continue to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Frederick County Sheriff Charles A. “Chuck” Jenkins; and Frederick County State’s Attorney J. Charles Smith.
“Patterson, like many criminals, took advantage of the anonymity of the Internet to pose as a minor female and solicit young boys to send him sexually explicit images and video,” said U.S. Attorney Robert K. Hur. “Now he will serve over 12 years in federal prison, where there is no parole—ever. One alert parent checked their child’s smartphone, found sexually explicit photos, and called the police. That call may have prevented more children from being abused by this predator.”
According to his guilty plea, beginning in approximately fall of 2017, Patterson set up an online social media profile pretending to be a 15- or 16- year-old girl who resided outside of Maryland. Using that profile, Patterson sought out minor males and established online relationships with them. Patterson initiated sexually explicit conversations with the victims and convinced them to produce and send sexually explicit images and videos of the victims. As part of his inducement, Patterson sent sexually explicit files displaying female genitals. Patterson also paid some of the victims with gift cards, including Amazon, iTunes, Xbox, and PlayStation.
As detailed in his plea agreement, from July to December 2018 Patterson’s victims ranged in age from 12 to 15 years old and resided in Colorado, Michigan, Texas, and Maryland. All of the victims sent at least one sexually explicit image or video to Patterson, and several victims sent more than that. Patterson offered, and sent, the victims gift cards to induce them to send more sexually explicit images and videos. For example, a review of Patterson’s Amazon account showed that Patterson had purchased 55 gift cards in the previous 10 months, totaling approximately $2,600.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Robert K. Hur commended the FBI, the Frederick County Sheriff’s Office, and the Frederick County State’s Attorney’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Paul E. Budlow and Special Assistant U.S. Attorney Joyce King, a cross-designated Frederick County Assistant State’s Attorney, who prosecuted the federal case.
# # #
Frankfort Man Sentenced to 64 Months for Illegal Firearm PossessionRead the Press Release
FRANKFORT, Ky.— Kian T. Christopher, of Frankfort, was sentenced to 64 months in federal prison on Thursday, by United States Federal Judge Gregory F. VanTatenhove, after pleading guilty to being a convicted felon in possession of a firearm.
According to Christopher’s plea agreement, in August 2018, Frankfort Police Department officers were dispatched to the Veterans of Foreign Wars, where gunshots had been reported. In his plea agreement, Christopher admitted that officers observed him throwing a firearm on the ground at the scene and, during the investigation, officers also located multiple spent shell casings, along with a female inside with a gunshot wound.
Christopher pleaded guilty to the charges in May 2019. Christopher had previously been convicted of two counts of second degree robbery in 2013.
Under federal law, Christopher must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for three years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Tommy Estevan, Special Agent in Charge for ATF; and Chief Charles Adams, Frankfort Police Department, jointly announced the sentence.
The investigation was conducted by the ATF and Frankfort Police Department. The United States was represented by Assistant U.S. Attorneys Cynthia T. Rieker.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The PSN program was reinvigorated 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.
– END –
Frankfort Brothers Plead Guilty to Wage and Hour Offenses, and one also Plead to Receiving Child PornographyRead the Press Release
FRANKFORT, Ky. – Two Frankfort brothers appeared in federal court on Thursday, before U.S. District Court Judge Gregory F. Van Tatenhove, and admitted to committing wage and hour offenses. One brother also admitted to knowingly receiving child pornography.
Fei Guo Tang, 49, pleaded guilty to knowingly receiving visual depictions of a minor engaging in sexually explicit conduct and knowingly failing to pay workers minimum wages and time-and-a-half wages for hours worked in excess of 40 hours per week.
According to his plea agreement, a forensic examination of Fei Ghou Tang’s telephone revealed five videos containing depictions of minors engaged in sexually explicit conduct. Additionally, Fei Guo Tang failed to pay a total of $60,690.36 in required overtime and minimum wages to five of his employees.
Fei Zhou Tang, 51, pleaded guilty to knowingly making false statements on an Employer’s Quarterly Unemployment Wage and Tax Report and knowingly failing to pay workers time-and-a-half wages for hours worked in excess of 40 hours per week.
Fei Zhou Tang admitted that he knowingly made the false statements on the Employer’s Quarterly Wage and Tax Report by omitting the names of undocumented workers, on multiple quarterly unemployment forms, and failing to pay overtime wages to workers who worked more than forty hours per week. According to his plea agreement, Fei Zhou Tang failed to pay a total of $229,207.26 in required overtime and minimum wages to six employees.
Fei Guo Tang was initially indicted in March 2019. He pleaded guilty to charges contained in a Second Superseding indictment, which was returned in May 2019. His brother Fei Zhou Tang was initially indicted in July 2018. He pleaded guilty to charges contained in a Second Superseding indictment, which was returned in June 2019.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Jason Crosby, U.S. Department of State, Diplomatic Security Service, Supervisory Special Agent, Criminal Division Chief; Matthew Utley, Assistant District Director, Department of Labor Wage and Hour Division; Rafiq Ahmad Special Agent in Charge, DOL Office of Inspector General; Rod Owens, Special Agent in Charge, Social Security Administration, Office of Inspector General; and Kentucky Attorney General Andy Beshear jointly announced the guilty pleas.
The investigation was conducted by the Department of State, Department of Labor, Social Security Administration, Office of Inspector General, and the Kentucky Office of the Attorney General. The United States was represented by Assistant U.S. Attorneys Hydee Hawkins, David Marye, and Dmitriy Slavin.
Fei Guo Tang is scheduled to be sentenced on February 26, 2020 at 10 a.m. He faces not less than five years and not more than 20 years for receiving child pornography. Fei Zhou Tang is also scheduled to be sentenced on February 26, 2020 at 11 a.m. He faces up to five years in prison and a maximum fine of $250,000 for making false statements. In addition, both brothers will be required to pay restitution, a money judgment in lieu of forfeiture, and a civil fine for failing to pay required wages. However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
— END —
Fort Wayne Man Sentenced to over 10 Years in PrisonRead the Press Release
FORT WAYNE – Francisco L. Mendez, age 39, of Fort Wayne, Indiana was sentenced before U.S. District Court Judge Damon Leichty upon his plea of guilty to distribution of methamphetamine and possessing a firearm as a convicted felon, announced U.S. Attorney Kirsch.
Mendez was sentenced to 121 months in prison followed by 4 years of supervised release.
According to documents in this case, in February of 2018, Mendez distributed 5 grams or more of methamphetamine. In April of 2018, he possessed a firearm after being a twice convicted felon in Allen County Superior Court; one in April 2012 for resisting law enforcement and one in November of 2012 for carrying a handgun without a license.
This case was investigated by the Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Fort Wayne Police Department. The case was handled by Assistant United States Attorney Anthony W. Geller.
###
Former Portland Nurse Pleads Guilty to Heroin TraffickingRead the Press Release
PORTLAND, Ore.—Rene Elene Griffin Nunn, 60, a resident of Vancouver, Washington pleaded guilty today to one count of conspiracy to possess with the intent to distribute controlled substances. At the time of the offense, Nunn was a registered nurse at Adventist Medical Center in Portland.
According to court documents, in February 2018, Nunn drove from Vancouver to Portland with approximately 93 grams of heroin in her purse. Based on a joint investigation conducted by the U.S. Drug Enforcement Administration (DEA) and the Clackamas County Interagency Task Force (CCITF), Nunn was located and arrested driving into Portland.
Nunn faces a maximum sentence of 20 years in prison, a $1 million fine and three years of supervised release. She will be sentenced on February 3, 2020 by U.S. District Judge Marco A. Hernandez.
This case was investigated by the DEA and CCITF and is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
Former Billings massage parlor operator sentenced to prison for transporting woman for commercial sexRead the Press Release
BILILNGS – A former Billings massage parlor operator who admitted bringing a woman from Nevada to his business to provide commercial sexual activity was sentenced today to two years in prison and five years of supervised release, U.S. Attorney Kurt Alme said.
Scot Donald Petrie, 62, of Billings, pleaded guilty in July to transportation of a person with intent to engage in criminal sexual activity.
Chief U.S. District Judge Dana L. Christensen presided.
“Mr. Petrie induced a woman to travel from Nevada to Billings so he could profit from her illegal commercial sexual activity. Such conduct exploits women and is a serious offense. This office will prosecute human traffickers to the full extent of the law,” U.S. Attorney Alme said.
Prosecutors said in court records that beginning in June 2014, Petrie helped operate King Spa and A-Spa, which permitted individuals to live at both locations to provide legitimate message services and illegal commercial sexual services. Petrie was aware of the operations and services being provided. King Spa temporarily closed in December 2018, and Petrie helped re-open the spa to provide the services.
In January, Petrie bought a bus ticket for a woman to travel from Las Vegas to Billings to live and work at A-Spa. Because of a missed connection, Petrie went to Butte to pick up the woman to transport her to Billings. The woman told law enforcement Petrie had contacted her while she was in Nevada and asked her to come to Montana. The woman said Petrie offered to pay for her bus ticket and gave her condoms when she arrived in Billings. The woman provided commercial sexual services, including intercourse, while staying at the spa, and paid Petrie half of her earnings.
Assistant U.S. Attorneys Zeno Baucus and Bryan Dake prosecuted the case, which was investigated by the FBI.
XXX
Final men sentenced for robbing local business with a firearmRead the Press Release
CORPUS CHRISTI, Texas – Two Corpus Christi men have been ordered to federal prison after admitting to robbery and brandishing a firearm in furtherance of a crime of violence, announced U.S. Attorney Ryan K. Patrick.
Corey Alexander Newman, 26, pleaded guilty Jan. 31, while Francisco Chavera, 22, pleaded guilty July 8. Both admitted to their participation in a robbery at the Texas Food Mart in the 6100 block of Williams Aug. 5, 2018, along with Matthew Joseph Bryant, 25, and Nathealle Avori Tyrell Jones, 22, both of Corpus Christi.Today, Senior U.S. District Judge Janis Graham Jack handed Chavera a 30-month sentence for the robbery. He also received an additional 84 months for the firearms charge which must be served consecutively to the other sentence imposed. The sentences will be immediately followed by five years of supervised release. Newman received a 10-month sentence for the robbery and an additional and consecutive 36 months for the firearms charge. The sentences will be immediately followed by three years of supervised release. In handing down the sentences, the court noted the dangerousness of the offense and the need to protect the public.
Senior U.S. District Judge Janis Graham Jack previously sentenced Bryant and Jones each to a total of 114 months in prison as well as five years of supervised release following completion of their sentences.
Officers responded to the aggravated robbery and observed a vehicle matching the reported description of the suspects’ vehicle and attempted to conduct a traffic stop. The vehicle fled until crashing into a utility pole, at which time all four occupants ran. After a short foot pursuit, authorities arrested all four individuals.
At that time, law enforcement searched the vehicle and the surrounding area and discovered U.S. currency, convenience store items, cigarettes, disposable gloves and a loaded handgun with an extended magazine.
Surveillance footage at the location showed two males wearing dark clothing and bandanas covering their faces had entered the store. As one male, who was later identified as Bryant, stayed by the front door and pointed a handgun at the clerk. The other male, later confirmed to be Chavera, went behind the counter and emptied the cash register into a bag along with cigarettes and flavored cigars. Both men then took the clerk’s cellular phone and wallet before leaving the store and fleeing in a dark colored sedan Jones was driving.
Newman and Chavera have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.The Corpus Christi Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Lance Watt is prosecuting the case.
Federal Jury Convicts Pensacola Man of Armed Drug TraffickingRead the Press Release
PENSACOLA, FLORIDA – United States Attorney Lawrence Keefe, of the Northern District of Florida,
announced that on Tuesday of this week, Kiondi E. Jones, 36, of Pensacola, was found guilty by a
Pensacola federal jury on multiple charges involving drug trafficking and illegal firearms
possession.Evidence at trial revealed that on November 9, 2018, the Narcotics Unit of the Pensacola Police
Department executed a lawful search warrant at a residence on West Belmont Street in Pensacola.
Upon knocking and announcing their presence to execute the warrant, Jones jumped out of his bedroom
window in an attempt to flee capture. Officers with the Pensacola Police Department were stationed
as perimeter security and captured Jones as he attempted to make flight. Jones left behind in his
bedroom trafficking amounts of heroin, methamphetamine, cocaine, and marijuana. In his bedroom, law
enforcement also located a digital scale used to weigh the illicit drugs for distribution,
adulterant to volumize the drugs for larger sale quantities, and hundreds of dollars in United
States currency.The Pensacola Police Department also seized a loaded Colt .45 caliber pistol from Jones’s bedroom
that was located next to the drugs and currency. The firearm was being used to protect the drug
distribution business Jones was operating from the residence. Jones, who is a multi- convicted
felon, did not have the right to lawfully possess this firearm nor the extra boxes of ammunition
found in the bedroom. Jones has prior state court convictions for crimes such a drug trafficking,
resisting arrest, and tampering with evidence.“We are grateful for the work of the Pensacola Police Department and the effort of the men and
women of the police force who risk their lives executing judicially authorized search warrants in
an effort to combat illegal drug trafficking and firearm possession in our community,” said United
States Attorney Keefe. “As demonstrated by this prosecution, federal law enforcement
working side-by-side with Pensacola Police Department is making the community safer.”Assistant United States Attorneys David L. Goldberg and Kaitlin Weiss are prosecuting the case
following a joint investigation by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the
Pensacola Police Department.Based upon his multiple prior state court felony convictions, Jones faces up to thirty years’
imprisonment on the drug trafficking charges and up to life imprisonment on the firearm charges. A
sentencing date has been set for January 21, 2020, at 10:30 am at the United States Courthouse in
Pensacola.The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that
serve as the nation’s principal litigators under the direction of the Attorney General. To access
public court documents online, please visit the U.S. District Court for the Northern District of
Florida website. For more information about the U.S. Attorney’s Office, Northern District of
Florida, visit http://www.justice.gov/usao/fln/index.html.Escaping from Halfway House Leads to Additional Federal Prison TimeRead the Press Release
A Cedar Rapids man who was escaped from federal custody at the Gerald R. Hinzman Center in Cedar Rapids was sentenced to additional time in federal prison on October 29, 2019, in federal court in Cedar Rapids.
Ramius Hardiman, age 26, from Cedar Rapids, Iowa, received the prison term after a June 11, 2019 guilty plea to escape from federal custody.
In a plea agreement, Hardiman admitted that beginning September 14, 2018, he was in federal custody pursuant to federal court order as a condition of his supervised release sentence for being a felon in possession of a firearm. On November 15, 2018, Hardiman left the facility claiming he was going to work and never returned. Hardiman was found and arrested in North Liberty, Iowa, on January 9, 2019.
Hardiman was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Hardiman was sentenced to serve an additional eight months’ imprisonment, which must be served after he finishes serving a fourteen-month term of imprisonment imposed for violating his supervised release. He must also serve a three-year term of supervised release after the prison term.
The case is being prosecuted by Assistant United States Attorney Patrick Reinert and was investigated by United States Marshals Service and the Northern Iowa Fugitive Task Force, with the assistance of the North Liberty Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is CR-19-00050.
Follow us on Twitter @USAO_NDIA.
Ellwood City Cocaine Dealer Sentenced to 15 Years in PrisonRead the Press Release
PITTSBURGH - A resident of Lawrence County, Pennsylvania, has been sentenced in federal court to 15 years (180 months) in prison and six years of supervised release on his conviction of conspiracy to distribute cocaine and distribution of cocaine, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Arthur J. Schwab imposed the sentence on Taurean Potter, age 34, of Ellwood City Pennsylvania.
According to information presented to the court during his trial, Potter sold cocaine out of Ellwood City bars in 2017 and 2018, and he sold cocaine to other cocaine dealers who would further distribute the cocaine. In addition, on October 14, 2017, Potter sold cocaine to an undercover narcotics agents with the Pennsylvania Attorney General’s Office.
Assistant United States Attorney Brendan T. Conway and Yvonne M. Saadi prosecuted this case on behalf of the government.
United States Attorney Brady commended the Pennsylvania Attorney General’s Office, in conjunction with the Drug Enforcement Administration and the Lawrence County Drug Task Force, for the investigation leading to the successful prosecution of Potter.
Dominican National Pleads Guilty to Identity Theft and Stealing MassHealth BenefitsRead the Press Release
BOSTON – A Dominican national formerly residing in Lawrence pleaded guilty yesterday in federal court in Boston to Social Security and benefit fraud.
Ismael Robles Tejeda, 30, pleaded guilty to one count of false representation of Social a Security number and one count of false statements in matters relating to health care. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for Jan. 29, 2019.
On Aug. 3, 2015, Robles Tejeda applied for a Massachusetts identification card using the name, date of birth and Social Security number of a Puerto Rican citizen. In October 2015, Robles Tejeda used that Massachusetts identification card to apply for and receive over $17,500 worth of MassHealth benefits in the Puerto Rican citizen’s name. When Robles Tejeda was arrested in April 2019, he had in his pocket a Massachusetts driver’s license issued to him in the identity of the Puerto Rican citizen. Robles Tejeda was identified, among other things, from a fingerprint match with a Dominican Republic identification document issued to him and bearing his photo.
The charges provide for a sentence of up to five years in prison, three years of supervised release, a fine of $250,000, restitution and forfeiture. According to a plea agreement, Robles Tejeda will be sentenced to 18 months in prison and ordered to pay restitution. He will be subject to deportation proceedings upon completion of his sentence. 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; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and Phillip Coyne, Special Agent in Charge of Department of Health and Humand Services, Office of Inspector General, Office of Investigations, Boston Field Division made the announcement today. Assistants U.S. Attorney Lindsey E. Weinstein and Kenneth G. Shine of Lelling’s Major Crimes Unit are prosecuting the case.
Detroit Man Sentenced to Prison for Federal Drug CrimesRead the Press Release
CHARLESTON, W.Va. – A Detroit man was sentenced to prison for federal drug crimes, announced United States Attorney Mike Stuart. Edward King, 30, was sentenced to 30 months in prison for conspiracy to distribute a quantity of oxycodone and possession with intent to distribute oxycodone.
“King is the second pill peddler from Michigan sentenced to federal prison this week. A third was convicted and will be sentenced later. Out of state drug dealers are the norm in West Virginia,” said United States Attorney Mike Stuart. “We want the world to visit and enjoy West Virginia but the drug dealers are not welcome. Almost Heaven would be closer to heaven if not for the drug thugs and poison peddlers that violate our communities and our families.”
King previously admitted that he conspired with another man in April 2015 to distribute oxycodone, specifically, 115 oxycodone 30 mg tablets.
The Kanawha County Sheriff’s Department and the West Virginia State Police conducted the investigation. Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney Ryan A. Saunders is handling the prosecution.
Follow us on Twitter: SDWVNews and USAttyStuart
###
Detroit Man Sentenced to 10 Years in Prison for Selling Carfentanil that Caused 2 Beaver County Residents to Overdose, One FatallyRead the Press Release
PITTSBURGH -A Michigan resident has been sentenced in federal court to 10 years’ imprisonment on his conviction of distribution of carfentanil, United States Attorney Scott W. Brady announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Reginald Davis, age 32, of Detroit, MI.
According to information presented to the court, on December 17, 2016, Davis distributed carfentanil, which the victims believed to be heroin, which caused the overdose death of victim B.L., a Beaver County resident, and caused the non-fatal overdose of victim K.S., also a Beaver County resident, who was later revived with Narcan. Davis also sold carfentanil in a controlled drug buy conducted by the New Brighton Area Police Department the same day and possessed additional quantities of carfentanil which he intended to distribute.
According to the Drug Enforcement Administration, carfentanil is a synthetic opioid that is 10,000 times more potent than morphine and 100 times more potent than fentanyl, which itself is 50 times more potent than heroin. Carfentanil is a Schedule II substance under the Controlled Substances Act and is used as a tranquilizing agent for elephants and other large mammals.
In addition to the sentence of imprisonment, Judge Fischer ordered the defendant to pay restitution in the amount of $3,775.60 to the family of victim B.L.
Assistant United States Attorneys Tonya Sulia Goodman and Timothy Lanni prosecuted this case on behalf of the government.
United States Attorney Brady commended the DEA and the New Brighton Area Police Department for the investigation leading to the successful prosecution of Davis.
Department of Justice to Announce $165 million in Grant Funding to Agencies Within the State of North CarolinaRead the Press Release
RALEIGH, NC – Department of Justice officials, North Carolina Governor Roy Cooper and State Bureau of Investigation Director Bob Schurmeier will announce Department of Justice grants awarded to state, local and tribal law enforcement agencies.
WHAT: Announcement of $165 million in Department of Justice grants to the State of North Carolina to support violent crime reduction, opioid/substance abuse reduction efforts, school safety, victim services, transitional housing for domestic violence victims, law enforcement activities, justice mental health, and juvenile justice.
WHO: US Attorney for the Eastern District of North Carolina Robert J. Higdon, Jr.
Governor Roy Cooper
US Attorney for the Middle District of North Carolina Matthew G.T. Martin
NC State Bureau of Investigation Director Bob Schurmeier
Department of Justice COPS Office Director Keith
WHEN:Friday, November 1, 2019
11:00 a.m. EDT
WHERE: Office of the United States Attorney for the Eastern District
150 Fayetteville Street
Suite 2100
Raleigh, North Carolina 27601OPEN PRESS
MEDIA CHECK-IN: Media representatives should check in with Don Connelly no later than 10:45 a.m.
Convicted Felon Sentenced to 46Months in Federal Prison for Possession of a FirearmRead the Press Release
Memphis, TN – Robert Darnell, 63, has been sentenced to 46 months in federal prison for unlawful possession of firearms. D. Michael Dunavant, U.S. Attorney announced the sentence today.
According to information presented in court, on April 4, 2017, Memphis Police Officers responded to an aggravated assault call at a rooming house at 967 Randle Street. The officers found the victim, Hosea Bland, bleeding from two gunshot wounds. The victim stated "Robert shot me." Bland was transported to Regional One Health for treatment. Police officers recovered several .45 caliber shell casings. It appeared the defendant and the victim had both been drinking and an argument precipitated the shooting.
The officers located Darnell in the lower bunk bed of an adjacent room, as well as two handguns, a .45 caliber Hi-Point pistol and a .40 caliber Hi-Point pistol. While Darnell did not have any recent felony convictions, he was a convicted felon with prior convictions in the State of Mississippi for burglary in 1975, aggravated assault in 1977, and larceny in 1984.
On October 31, 2019, U.S. District Court Judge John T. Fowlkes Jr., sentenced Darnell to 46 months in federal prison followed by 2 years supervised release. There is no parole in the federal system.
The Memphis Police Department investigated this case.
U.S. Attorney D. Michael Dunavant said, "Convicted felons who possess firearms are an inherent danger to the community, and in this case, Darnell was a violent offender who possessed and violently discharged a firearm despite his prior felony conviction history. There is a consequence for such criminal behavior, and we will aggressively enforce federal law to protect victims and uphold the rule of law."
Special Assistant U.S. Attorney Sam Winnig prosecuted this case on behalf of the government. SAUSA Winnig is currently assigned from the Shelby County District Attorney General’s Office for the purpose of prosecuting violent crimes and firearms offenses in federal court.
Colorado Tax Defier Sentenced to Prison for EvasionRead the Press Release
A homebuilder and the owner of Tarryall River Log Homes was sentenced to 60 months in prison yesterday for tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents and evidence presented during the trial, Lawrence Martin Birk founded a sole proprietorship, Tarryall River Log Homes LLC, in 2000. Although the company, which sold and built log homes, was profitable, Birk did not voluntarily pay federal taxes on its income. When the Internal Revenue Service (IRS) began collection efforts, including visiting Birk at his home, he hired a tax firm to prepare eight years’ worth of delinquent tax returns. However, Birk concealed pertinent information from the tax firm, including over $400,000 of retirement distributions that he funneled through a sham company. After filing his delinquent tax returns, which omitted the retirement income, Birk still did not pay what the returns acknowledged was due and owing. Instead, he sent the IRS threatening correspondence that espoused the frivolous tax arguments of known tax defier organizations.
After being notified that the IRS intended to seize money from his bank accounts for taxes owed, Birk took steps to shield his money against the IRS’ collection efforts. Immediately or shortly after depositing funds into his bank account, Birk purchased cashier’s checks to reduce his balance and impede the IRS’s ability to seize the money. Birk’s outstanding tax liabilities, including taxes, interest, and penalties, were over $2 million for 1998 to 2005. He has not filed returns or made any tax payments for the 2006 through 2018 tax years. To date, his debt is more than $3.5 million.
In addition to the term of imprisonment, Judge Blackburn also ordered Birk to serve three years of supervised release and to pay restitution to the IRS in the amount of $1,858,826.
Principal Deputy Assistant Attorney General Zuckerman commended the IRS agents who conducted the investigation, and Tax Division Assistant Chief Elizabeth C. Hadden, Trial Attorney Christopher Magnani, and Paralegal Specialist Saundra Burgess, who prosecuted the case.
Cocaine Trafficker Sentenced to 30 YearsRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Victor Estrada, 48, of Laredo, Texas, was sentenced in federal court for his participation in an interstate drug distribution organization. Court documents showed that Estrada and his co-defendant Linda Lancon, 29, also of Laredo, were stopped in a bobtail tractor on Interstate 65 in Mobile County, by Saraland police. The officers found 35 kilograms of cocaine in a cardboard box behind the passenger seat in the cab after a drug detecting dog gave a positive indication for the odor of narcotics. Officers later discovered a tracking device in the tractor, the records of which showed several prior trips made by the vehicle to the Atlanta, Georgia, area, which was the intended destination for the drugs seized in this case. Estrada pled guilty to the charge of conspiracy to possess with intent to distribute cocaine in March of 2019.
United States District Court Judge Terry F. Moorer imposed a sentence of 30 years imprisonment, finding that Estrada was a career criminal with a high risk of recidivism. The judge also found that Estrada’s history of domestic violence also established that he was a threat to the community. Judge Moorer ordered that Estrada will serve 5 years of supervised release following his term of imprisonment, during which he will undergo drug abuse testing and treatment. No fine was imposed but Estrada was ordered to pay $100 in special mandatory assessments.
The case was investigated by the Saraland Police Department and the Department of Homeland Security, Homeland Security Investigations. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
City of Seattle Files Report on Comprehensive Review of Seattle Police Department’s Uses of ForceRead the Press Release
SEATTLE - On Thursday, in accordance with the Court-approved plan for demonstrating sustained compliance for two years, the City of Seattle filed its report from a comprehensive self-review of the Seattle Police Department’s (SPD) uses of force, which includes a verification review of cases by the Department of Justice (DOJ) and the Monitoring Team to determine whether the force used was reasonable, necessary and proportionate. The City also filed a report on its review of SPD’s use of Terry stops and detentions, also with verification by the DOJ and Monitoring Team, and a review of their stops and detention policies an “outcome report” on SPD’s crisis intervention program, providing statistics on encounters with people in crisis.
Together, these filings in U.S. District Court demonstrate that SPD’s reformed practices relating to use of force, crisis intervention, and stops and detentions have allowed it to sustain compliance with the consent decree.
“Use of force was central to the initial DOJ investigation and the subsequent reforms required by the consent decree,” said Brian Moran, U.S. Attorney for the Western District of Washington. “SPD continues to demonstrate that it remains in compliance with one of the core issues addressed in the consent decree, including very low uses of force. A clear indicator of the success of SPD’s new approach is the use of de-escalation training and tactics by officers in their encounters with people experiencing crisis. The goal of the consent decree was to fundamentally change the policies, training, and internal supervision and accountability around uses of force, and it is evident that those changes have taken root and are being sustained. SPD has the structures and systems in place to critically look at individual incidents and overall data to ensure continued constitutional policing once the consent decree is complete.”
In its 2011 investigation, DOJ found that there were at least 1,230 incidents involving a serious use of force in the 28-month period from January 2009 to April 2011. DOJ determined that SPD used unconstitutional force in 20 percent of incidents involving a serious use of force (now known at Type II and III uses of force). Around 70 percent of all uses of force were against people experiencing crisis.
After the implementation of significant reforms required by the consent decree, the Federal Monitor found that there was a sixty 60 percent reduction in serious use of force, to 487 incidents, in the 28-month period from July 2014 to October 2016. Since that time, SPD has sustained this reduction. From January 2017 to April 2019, there were even fewer serious force incidents (454) in a comparable 28-month period. Moreover, the vast majority (83 percent) of all force used during the most recent 28-month period involved no greater than the lowest level of reportable force. Further, out of all 2,252 uses of force, only 12 (or 0.5 percent) were determined to be out of policy.
Use of force against those experiencing behavioral crisis remains low and resolutions that result in a connection to services remain high. And, as indicated in the report filed today, SPD reported that a Crisis Intervention Training-certified officer was on the scene for 82 percent of the 16,574 crisis contacts from January 2018 to April 2019.
With respect to stops and detentions, the DOJ investigation revealed that SPD lacked a reliable way to track social contacts versus Terry stops. One of DOJ’s requirements was better data collection and revised policies to mandate Terry stop reporting by SPD officers. In mid-2015, SPD introduced its new Terry template, which allowed the department to better track this metric. SPD is now able to track and determine whether stops and frisks had adequate reasonable suspicion, and, in the most recent review, SPD has sustained compliance with the requirements of the consent decree and maintained the high level of constitutionality in its stops found to be in place by the Monitoring Team and DOJ during Phase I of the consent decree period.
Boone County Man Sentenced to Federal Prison for Methamphetamine TraffickingRead the Press Release
CHARLESTON, W.Va. – A Boone County man was sentenced to federal prison for a drug crime, announced United States Attorney Mike Stuart. Benjamin John Mooney, 42, of Costa was sentenced to 30 months in prison for distribution of methamphetamine. Upon completing his prison sentence, Mooney will serve an additional term of five years of supervised release.
“546 grams. Think about it. 546 grams. It’s a crazy volume of drugs,” said United States Attorney Mike Stuart. “Great work by all involved in getting this meth dealer off the streets and away from our families.”
Mooney previously admitted that he sold methamphetamine to a police informant on four occasions between July 20, 2017 and February 22, 2018. Upon being arrested, Mooney admitted that he had sold approximately 546 grams of methamphetamine during the year prior to October 2018.
The U.S. 119 Task Force conducted the investigation. Former Assistant United States Attorney Drew Inman handled the prosecution. Senior United States District John T. Copenhaver, Jr. imposed the sentence.
Follow us on Twitter: SDWVNews and USAttyStuart
###
Auburn Man Sentenced to 5 Years in PrisonRead the Press Release
FORT WAYNE – Jeffrey Gaunt, age 62, of Auburn, Indiana was sentenced before U.S. District Court Judge Holly A. Brady upon his plea of guilty to manufacturing over 100 marijuana plants, announced U.S. Attorney Kirsch.
Gaunt was sentenced to 60 months in prison followed by 4 years of supervised release.
According to documents in this case, in June 2018, acting on a tip an Indiana State Police Marijuana Eradication Helicopter was flying over Mr. Gaunts residence. While flying over, officers observed Gaunt pulling up plants that appeared to be marijuana and trying to flee. The helicopter landed and officers detained Gaunt. A subsequent search warrant served on his property found 177 rooted marijuana plants, 60 non-rooted marijuana clones, sealed packages of marijuana, firearms and items consistent with a marijuana grow operation. Mr. Gaunt is a convicted felon for Burglary and was sentenced to over 12 years in prison.
The case was investigated by Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, the Indiana State Police Marijuana Eradication Team and the Allen County Police Drug Task Force. The case was handled by Assistant United States Attorney Stacey R. Speith.
###
Athens Man Sentenced to 57 Months in Prison for Felon in Possession of a FirearmRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced an Athens man to 57 months in prison for being a felon in possession of a firearm, announced United States Attorney Jay E. Town and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Marcus Watson.
United States District Judge R. David Proctor sentenced KEVAUN ROOSEVELT TURNER, 28, for being a felon in possession of a pistol, stemming from an incident where he shot someone after a verbal argument. The case was adopted by the United States Attorney’s Office for the Northern District of Alabama as part of their Prosecutor-to-Prosecutor Program, or P3, wherein local district attorney’s offices submit cases for review and prosecution for federal rather than state offenses.
“This felon has been a suspect or charged in other violent crimes where witness and victim cooperation too often waned, making state prosecution nearly impossible”, Town said. “This is why the phalanx formed by local, state, and federal law enforcement and prosecutors is moving the needle to reduce violent crime. Our Prosecutor-to-Prosecutor Program is working. Our PSN initiatives are working. When the alpha criminals think they might walk free, they are just turning into another net. This time a federal net. And this time, 57 months in a federal prison, where there is no sanctuary of parole.”
“Protecting the public by the removal of the criminal element that commits acts of violence with a firearm was the result of the combined efforts by ATF, Athens Police Department and the U.S. Attorney’s Office,” Watson said.
ATF investigated the case along with the Athens Police Department, which Assistant U.S. Attorney Robert Becher, Sr. prosecuted.
###
Arizona Man Indicted for Sending Methamphetamine Through the MailRead the Press Release
BOSTON – An Arizona man was indicted in federal court in Boston yesterday in connection with his sending methamphetamine through the U.S. mail from Arizona to Massachusetts.
Brandon Greenberg, a/k/a “Brandon Valentine,” a/k/a “Adrian,” 27, of Phoenix, Ariz., was charged with conspiring to distribute methamphetamine and distribution of methamphetamine.
According to charging documents, Greenberg mailed more than 20 parcels containing methamphetamine from Arizona to two residential addresses in Boston and Somerville. A search warrant was executed on one of the parcels and revealed over 900 grams of methamphetamine hidden inside a towel and inside a stuffed animal. Later in the investigation, agents conducted a controlled purchase of methamphetamine from Greenberg and seized 486 grams hidden inside three cereal boxes that were then placed in a package mailed by Greenberg. During the execution of a search warrant at Greenberg’s residence in Phoenix, investigators seized an additional 486 grams of methamphetamine from Greenberg’s bedroom.
United States Attorney Andrew E. Lelling; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; Melissa Llosa, Inspector in Charge of the U.S. Postal Inspection Service, Phoenix Division; Brian D. Boyle, Special Agent in Charge Of the Drug Enforcement Administration, New England Division; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Boston Police Commissioner William G. Gross; and Peoria (AZ) Police Chief Art Miller made the announcement today. The Middlesex County District Attorney’s Office, Suffolk County District Attorney’s Office, and the Arlington Police Department assisted in the investigation. Assistant U.S. Attorney James E. Arnold of Lelling’s Narcotics & Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Activity in the United States Attorney's OfficeRead the Press Release
Federal District Court Judge Alan B. Johnson sentenced OSCAR MACIAS-UGARTE, 40, of Mexico on October 25, 2019 for illegal re-entry of a previously deported alien into the United States. Macias-Ugarte was arrested in Casper, Wyoming. He/ received time served plus ten days to allow for deportation proceedings and ordered to pay a $100.00 special assessment. Macias-Ugarte had been previously deported to Mexico in 2014. The U.S. Department of Homeland Security investigated this case.
Federal District Court Judge Alan B. Johnson sentenced DAVID SCOTT MURRAY, 54, of Granbury, Texas on October 28, 2019 for carrying a firearm during and in relation to a drug trafficking crime. Murray was arrested in Laramie, Wyoming. He received sixty months of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay a $100.00 special assessment. The Wyoming Highway Patrol, Wyoming Division of Criminal Investigation and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case.
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. 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.
Federal District Court Judge Alan B. Johnson sentenced DIEGO ARMANDO SANTOS-DIAZ, 29, of Mexico on October 25, 2019 for illegal re-entry of a previously deported alien into the United States. Santos-Diaz was arrested in Jackson, Wyoming. He received six months of imprisonment, is subject to deportation upon his release, and was ordered to pay a $100.00 special assessment. Santos-Diaz was previously deported in 2017. The U.S. Department of Homeland Security investigated this case.
Federal District Court Judge Nancy D. Freudenthal sentenced JONATHAN WILLIAM DAVIS, 31, of Toledo, Ohio on October 28, 2019 for interstate travel with intent to engage in illicit sexual conduct. Davis was arrested in Cheyenne, Wyoming. He received sixty months of imprisonment, to be followed by sixty months of supervised release, and ordered to pay a $100.00 special assessment. The Laramie County Sheriff’s Office and the FBI investigated this case.
Chief Federal District Court Judge Scott W. Skavdahl sentenced ANDREA ALDACO, 30, of Wasco, California on October 30, 2019 for possession with intent to distribute methamphetamine. Aldaco was arrested in Laramie, Wyoming. She received eighty-four months of imprisonment, to be followed by sixty months of supervised release, and ordered to pay a $100.00 special assessment. The Laramie Police Department, Wyoming Highway Patrol, Wyoming Division of Criminal Investigation and the DEA investigated this case.
Chief Federal District Court Judge Scott W. Skavdahl sentenced ADRIAN SEVERO REYNA, SR., 44, of Wasco, California on October 30, 2019 for possession with intent to distribute methamphetamine. Reyna Sr. was arrested in Laramie, Wyoming. He received one hundred thirty one months of imprisonment, to be followed by sixty months of supervised release, and ordered to pay a $100.00 special assessment. The Laramie Police Department, Wyoming Highway Patrol, Wyoming Division of Criminal Investigation and the DEA investigated this case.
Federal District Court Judge Nancy D. Freudenthal sentenced NATHAN ANDREW SELTZER, 32, of Grand Junction, Colorado on October 28, 2019 for being a felon and unlawful user of a controlled substance in possession of a firearm and ammunition. Seltzer was arrested in Cheyenne, Wyoming. He received thirty-six months of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay a $100.00 special assessment. The Wyoming Highway Patrol, Wyoming Division of Criminal Investigation, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case.
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. 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.
Wednesday 30 October 2019
Wichita Man Charged with Five Armed RobberiesRead the Press Release
WICHITA, KAN. – A Wichita man was charged in federal court Tuesday with five armed robberies, U.S. Attorney Stephen McAllister said.
Darren Green, 20, Wichita, Kan., was charged with five counts of robbery and five counts of brandishing a handgun during the robberies. Green was charged with the following robberies:
July 8, 2019: Burger King, 3500 S. Meridian, Wichita, Kan.
Aug. 28, 2019: Meridian Grocery, 2719 S. Meridian, Wichita, Kan.
Aug. 29, 2019: Domino’s Pizza, 2047 West 21st, Wichita, Kan.
Oct. 20, 2019: Wal-Mart, 3030 N. Rock Road, Wichita, Kan.
Oct. 21, 2019: Advance America, 601 N. Ridge Road, Wichita, Kan.
An affidavit filed in the case alleges that during the first robbery Green wore a skeleton mask, pointed a gun at an employee and said, “Don’t be stupid – get on the ground.”
The affidavit alleges that during the Wal-Mart robbery Green wore a yellow Wal-Mart vest, placed a gun against an employee’s ribs, and handed an employee a note saying, “I have AIDS. Do not panic. Put all the money in bag.”
If convicted, he could face up to 20 years and a fine up to $250,000 on each robbery count, and not less than seven years and a fine up to $250,000 on each count of brandishing a firearm. The FBI, the Wichita Police Department and the Safe Streets Task Force investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Whitewood Man Sentenced for Unlawfully Guiding HuntsRead the Press Release
United States Attorney Ron Parsons announced that a Whitewood, South Dakota, man convicted of committing federal wildlife violations of the Lacey Act was sentenced on October 28, 2019, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Everett T. Mackaben, Jr., was sentenced to 2 years of probation, during which the court ordered revocation of all hunting privileges. The court ordered Mackaben to pay $26,825 in restitution to the Oglala Sioux Tribe Parks and Recreation Authority, a $10,000 fine, and a $100 special assessment to the Federal Crime Victims Fund.
“The illegal, commercial exploitation of Tribal lands is a serious issue,” said U.S. Attorney Parsons. “Our office will continue to work with the Oglala Sioux Tribe and all of the Tribal governments across South Dakota to aggressively pursue these cases.”
Mackaben was indicted for violating the Lacey Act by a federal grand jury on April 17, 2018. He pleaded guilty on July 8, 2019.
The offense involved Mackaben acting as a commercial guide for out-of-state deer hunters. Mackaben regularly guided the non-resident hunters on hunts on land within Oglala Lakota County, managed by the Oglala Sioux Tribe Parks and Recreation Authority. The hunters paid Mackaben for guiding and assisting in obtaining hunting licenses. Mackaben would regularly assist the hunters in obtaining licenses to hunt in other areas that did not include Oglala Lakota County, but then guided the hunts on land within that county. After deer were illegally taken in violation of tribal and state law, Mackaben also would arrange shipment of deer to the hunters’ home states.
This case was investigated by the U.S. Fish & Wildlife Service and the Oglala Sioux Tribe Parks and Recreation Authority. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Mackaben was released to begin serving his term of probation.
Wetzel County man admits to firearms violationRead the Press Release
WHEELING, WEST VIRGINIA – Martin Anderson, of New Martinsville, West Virginia, has admitted to a firearms violation, U.S. Attorney Bill Powell announced.
Anderson, age 31, pled guilty to one count of “Unlawful Possession of a Firearm.” Anderson, a person prohibited from having firearms, is accused of possessing a .223 caliber rifle and two .22 caliber rifles in Wetzel County in June 2018.
Anderson 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.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Westlake man sentenced to nearly five years in prison for his role in a conspiracy to defraud the Cleveland Clinic out of $2.7 millionRead the Press Release
A Westlake man was sentenced to nearly five years in prison for his role in a conspiracy to defraud the Cleveland Clinic out more than $2.7 million.
Wisam Rizk was sentenced to 58 months in prison and ordered to pay $2.7 million in restitution. Rizk previously pleaded guilty to conspiracy to commit wire fraud and honest services fraud and related charges. Rizk will be deported upon completion of his sentence
Rizk worked as Chief Technology Officer at Interactive Visual Health Records, a company formed by Cleveland Clinic Innovations to develop a visual medical charting concept of certain Clinic physicians into a functioning, marketable product, according to the indictment.
Rizk was hired at IVHR by Gary Fingerhut, the former executive director at Cleveland Clinic Innovations. Fingerhut previously pleaded guilty to his role in the conspiracy and was sentenced to 30 months in federal prison.
Rizk and Fingerhut, as a condition of their employment, were prohibited from receiving any financial benefit or having any personal or familial financial interests in companies the Clinic did business with, unless they were expressly disclosed to, and approved by, the Clinic.
Rizk and others caused to be incorporated a shell company known as iStarFZE LLC (ISTAR) that did not actually perform or provide any goods or services. It was established in the name of a nominee owner. Rizk caused ISTAR to establish a web site and email addresses and a mailing address in New York City to create the false impression it was an operational business, according to the indictment.
Rizk caused ISTAR to submit a bid to the Clinic to develop and design IVHR’s software and to increase the price the Clinic paid for the software design and development, all without disclosing his financial interest in ISTAR, according to the indictment.
Rizk periodically paid Fingerhut a “referral” or “commission” fee in return for Fingerhut not disclosing the fraud scheme, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorney Rebecca Lutzko following an investigation by the Federal Bureau of Investigation.
Walker County Man Sentenced to 151 months in Prison for Distribution of MethamphetamineRead the Press Release
BIRMINGHAM, Ala. – A Walker County man who was selling methamphetamine out of his Nauvoo, Alabama business was sentenced on October 24th, announced U.S. Attorney Jay E. Town and Drug Enforcement Administration Assistant Special Agent in Charge Clay Morris.
U.S. District Judge L. Scott Coogler sentenced THOMAS SCOTT NIX, 54, Nauvoo, to 151 months in prison for dealing in methamphetamine. Nix pled guilty to 4 counts of distribution of methamphetamine in April.
“Methamphetamine is a powerful and highly addictive substance that continues to plague our communities, leaving nothing behind but tragedy, violence, and addiction in its wake,” Town said. “Those who sell this poison destroy the user and their families. The idea that selling drugs is a victimless crime is a fiction. This sentence proves it is not a minor crime as well.”
“Methamphetamine continues to devastate communities across Alabama,” Morris said. “Today’s sentencing is a reminder to both drug dealers who sell these highly addictive drugs and the families they try to destroy. DEA will not tolerate drug dealers like Thomas Nix and there is no limit to our pursuit in bringing you to justice. To the great citizens of Walker county and all communities across Alabama, DEA stands with you. You are not alone in this fight.”
Nix was arrested following an investigation of methamphetamine distribution in the Walker County area in the spring of 2018. During the investigation law enforcement learned Nix was routinely selling out of the shop on his property.
DEA, along with the Alabama Drug Task Force and the Jasper Police Department Narcotics Division investigated the case, which Assistant United States Attorney Jonathan Cross prosecuted.
Wakpala Woman Charged with Assaulting a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that a Wakpala, South Dakota, woman has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer.
Alyssa Briggs, age 29, was indicted on October 16, 2019. She appeared before U.S. Magistrate Judge William D. Gerdes on October 28, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in federal prison and a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on September 25, 2019, Briggs did forcibly assault, resist, oppose, impede, intimidate, and interfere with Bureau of Indian Affairs officers while the officers were engaged in their official duties, and said conduct involved physical contact and use of a dangerous weapon that is shod feet.
The charge is merely an accusation and Briggs is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Kirsten Jasper is prosecuting the case.
Briggs was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
United States Reaches Settlement to Recover More Than $700 Million in Assets Allegedly Traceable to Corruption Involving Malaysian Sovereign Wealth FundRead the Press Release
The Department of Justice has reached a settlement of its civil forfeiture cases against assets acquired by Low Taek Jho, aka Jho Low, and his family using funds allegedly misappropriated from 1Malaysia Development Berhad (1MDB), Malaysia’s investment development fund, and laundered through financial institutions in several jurisdictions, including the United States, Switzerland, Singapore and Luxembourg.
These assets, located in the United States, the United Kingdom and Switzerland, are estimated to be worth more than $700 million. With the conclusion of this settlement, together with the prior disposition of other related forfeiture cases, the United States will have recovered or assisted in the recovery of more than $1 billion in assets associated with the 1MDB international money laundering and bribery scheme. This represents the largest recovery to date under the Department’s Kleptocracy Asset Recovery Initiative and the largest civil forfeiture ever concluded by the Justice Department.
“As alleged in the complaints, Jho Low and others, including officials in Malaysia and the United Arab Emirates, engaged in a brazen multi-year conspiracy to launder money embezzled or otherwise misappropriated from 1MDB, and he used those funds, among other things, to engage in extravagant spending sprees, acquiring one-of-kind artwork and luxury real estate, gambling freely at casinos, and propping up his lavish lifestyle,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “This settlement agreement forces Low and his family to relinquish hundreds of millions of dollars in ill-gotten gains that were intended to be used for the benefit of the Malaysian people, and it sends a signal that the United States will not be a safe haven for the proceeds of corruption.”
“A staggering amount of money embezzled from 1MDB at the expense of the people of Malaysia was laundered through the purchase of big-ticket assets in the U.S. and other nations. Thanks to this settlement, one of the men allegedly at the center of this massive scheme will lose all access to hundreds of millions of dollars,” said U.S. Attorney Nicola T. Hanna of the Central District of California. “The message in this case is simple: the United States is not a safe haven for pilfered funds. Our strict anti-money laundering controls are effective, and we will seize assets used by criminals to conceal ill-gotten gains.”
“Today's settlement with Jho Low demonstrates the continued commitment of the FBI to root out the fraud and selfishness of the corrupt individuals who conspired to pay bribes and launder funds which belong to the Malaysian people,” said FBI Assistant Director Terry Wade of the Criminal Investigative Division. “The FBI's dedicated International Corruption Squads will continue to combat foreign corruption which reaches our shores. We will not allow criminals, foreign or domestic, to use the United States in furtherance of their criminal activities.”
“The action announced today will allow the United States government to deny Mr. Low the use of the assets purchased with this extraordinarily large sum of money he allegedly misappropriated from 1MDB and the people of Malaysia,” said Chief Don Fort of IRS Criminal Investigations (IRS-CI). “Mr. Low allegedly attempted to launder these funds through multiple international jurisdictions and a web of shell corporations, but his greed finally caught up with him. This case is a model for international cooperation in significant cross-border money laundering investigations”
According to the civil forfeiture complaints, from 2009 through 2015, more than $4.5 billion in funds belonging to 1MDB were allegedly misappropriated by high-level officials of 1MDB and their associates, including Low, through a criminal conspiracy involving international money laundering and bribery. 1MDB was created by the government of Malaysia to promote economic development in Malaysia through global partnerships and foreign direct investment, and its funds were intended to be used for improving the well-being of the Malaysian people.
Under the terms of the settlement, Low, his family members, and FFP, a Cayman Islands entity serving as the trustees overseeing the assets at issue in these forfeiture actions, agreed to forfeit all assets subject to pending forfeiture complaints in which they have a potential interest. The trustees are also required to cooperate and assist the Justice Department in the orderly transfer, management and disposition of the relevant assets. From the assets formerly managed by FFP, the United States will release $15 million to Low’s counsel to pay for legal fees and costs. Under the agreement, none of those fees may be returned to Low or his family members. The assets subject to the settlement agreement include high-end real estate in Beverly Hills, New York and London; a luxury boutique hotel in Beverly Hills; and tens of millions of dollars in business investments that Low allegedly made with funds traceable to misappropriated 1MDB monies.
Low separately faces charges in the Eastern District of New York for conspiring to launder billions of dollars embezzled from 1MDB and for conspiring to violate the Foreign Corrupt Practices Act (FCPA) by paying bribes to various Malaysian and Emirati officials, and in the District of Columbia for conspiring to make and conceal foreign and conduit campaign contributions during the United States presidential election in 2012. The charges in the indictments are merely allegations, and defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. This agreement does not release any entity or individual from filed or potential criminal charges.
The assets being forfeited subject to this settlement are in addition to the nearly $140 million in assets the U.S. previously forfeited in connection with Low’s investment in a business entity related to the Park Lane Hotel in New York, as well as a super-yacht, valued at over $120 million, seized by law enforcement authorities in Indonesia at the request of the Justice Department and recovered by Malaysian authorities directly from Indonesia. Following conclusion of today’s settlement, several civil forfeiture complaints arising out of the 1MDB criminal conspiracy remain pending against assets associated with other alleged co-conspirators.
The FBI’s International Corruption Squads in New York City and Los Angeles and the IRS-CI are investigating the case. Deputy Chief Woo S. Lee and Trial Attorneys Kyle R. Freeny, Joshua L. Sohn, Barbara Levy and Jonathan Baum of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorneys John Kucera, Michael R. Sew Hoy and Steven R. Welk of the Central District of California are prosecuting the case. The Criminal Division’s Office of International Affairs is providing substantial assistance.
The Department also appreciates the significant assistance provided by the Attorney General’s Chambers of Malaysia, the Royal Malaysian Police, the Malaysian Anti-Corruption Commission, the Attorney General’s Chambers of Singapore, the Singapore Police Force-Commercial Affairs Division, the Office of the Attorney General and the Federal Office of Justice of Switzerland, the judicial investigating authority of the Grand Duchy of Luxembourg and the Criminal Investigation Department of the Grand-Ducal Police of Luxembourg.
The Kleptocracy Asset Recovery Initiative is led by a team of dedicated prosecutors in the Criminal Division’s Money Laundering and Asset Recovery Section, in partnership with federal law enforcement agencies, and often with U.S. Attorney’s Offices, to forfeit the proceeds of foreign official corruption and, where appropriate, to use those recovered assets to benefit the people harmed by these acts of corruption and abuse of office. In 2015, the FBI formed International Corruption Squads across the country to address national and international implications of foreign corruption. Individuals with information about possible proceeds of foreign corruption located in or laundered through the U.S. should contact federal law enforcement or send an email to [email protected] (link sends e-mail) or https://tips.fbi.gov/.
A civil forfeiture complaint is merely an allegation that money or property was involved in or represents the proceeds of a crime. These allegations are not proven until a court awards judgment in favor of the United States.
United States Attorney Richard P. Donoghue Announces Project Safe Neighborhoods Achievements on the Two-Year Anniversary of the Revitalization of the ProgramRead the Press Release
Two years ago, the Department of Justice announced the revitalization and enhancement of Project Safe Neighborhoods (PSN), the centerpiece of the Department’s violent crime reduction strategy. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders, and partners with locally based prevention and reentry programs for lasting reductions in crime.
“The revitalized Project Safe Neighborhoods program is a major success,” stated Attorney General William P. Barr. “It packs a powerful punch by combining advanced data with local leadership, further reducing violence in communities across the country and improving overall public safety. U.S. Attorneys continue to focus their enforcement efforts against the most violent criminals and work in partnership with federal, state, local and tribal police. The Justice Department’s relationships across the board have never been stronger.”
“The arrests, guilty pleas and sentencings of more than 60 gang members and associates prosecuted by the Eastern District of New York for violent crimes and drug trafficking have made our neighborhoods safer,” stated United States Attorney Donoghue. “Working closely with our federal and local law enforcement partners, we will continue to target violent street gangs.”
The PSN initiatives in the EDNY over the last year include:
MS-13 Enforcement
MS-13 on Long Island
In October 2019, an MS-13 gang member was sentenced to 25 years in prison for his participation in the fatal attack with machetes and a baseball bat on a man in Brentwood on October 13, 2016.
In September 2019, an MS-13 gang member was sentenced to 50 years in prison for his participation in the murders of four young men with knives, wooden clubs and an axe in a park in Central Islip on April 11, 2017.
In July 2019, an MS-13 member pleaded guilty to racketeering charges for his participation in the murder of a fellow gang member in Brentwood on June 3, 2016 and the attempted murder of a suspected rival outside the Brentwood public library on January 15, 2016.
In June 2019, an MS-13 gang member was sentenced to 55 years in prison for his participation in the murders of four young men with knives, wooden clubs and an axe in a park in Central Islip on April 11, 2017.
In May 2019, an MS-13 gang associate was convicted at trial of racketeering, murder, assault and firearms charges in connection with the January 30, 2017 murder of a man suspected of being a member of a rival gang and the wounding of a female employee in a deli in Central Islip.
In January 2019, an MS-13 gang member was sentenced to 27 years in prison for the June 30, 2015 murder in Central Islip of a teenager suspected of being associated with a rival gang.
The investigations that led to these prosecutions and convictions were conducted by the Federal Bureau of Investigation’s (FBI) Long Island Gang Task Force.
MS-13 in Queens
In September 2019, three MS-13 gang members were charged in a superseding indictment with racketeering offenses, including the murder of a teenager in Alley Pond Park.
In June and July 2019, three MS-13 gang members from Queens and the Bronx pleaded guilty to assault in aid of racketeering charges for beating and stabbing an inmate who they believed was a member of a rival gang inside a pre-trial detention facility.
In May 2019, an MS-13 gang member was sentenced to more than 25 years in prison for shooting a teenager suspected of being a member of the rival 18th Street gang in Jamaica. The victim was left paralyzed.
The investigations that led to these prosecutions and convictions were conducted by the FBI/New York City Police Department (NYPD) Safe Streets Task Force.
Coney Island Gang Enforcement
In September 2019, three members of the West End Enterprise, a Coney Island-based street gang, pleaded guilty to a racketeering conspiracy involving their participation in a murder outside the Mermaid Houses. The victim was shot to death in retaliation for what the defendants believed was his role in setting up the murder of a high-ranking member of the West End Enterprise. The investigation was conducted with the FBI and NYPD.
Bloods Gang Enforcement
In October 2019, six members and associates of the Red Stone Gorillas set of the Bloods street gang on the east end of Long Island were charged in a superseding indictment with racketeering, murder, robberies, narcotics trafficking and firearms offenses. The investigation was conducted with the FBI’s Long Island Gang Task Force, Suffolk County District Attorney’s Office (SCDA) and the Suffolk County East End Drug Task Force.
In September 2019, a member of the Bloods street gang on Long Island was indicted for racketeering and the September 2, 2016 murders of two individuals. The investigation was conducted by the FBI, Homeland Security Investigations and the Suffolk County Police Department (SCPD).
In August 2019, six members of the Bloods street gang on Long Island were indicted for trafficking heroin, fentanyl, fentanyl analogues, cocaine and crack cocaine in and around Babylon. The investigation was conducted by the FBI, the Drug Enforcement Administration, SCDA and SCPD.
In July 2019, 17 members and associates of the Makk Balla Brims set of the Bloods street gang in Jamaica, Queens, were indicted for racketeering, including violent predicate acts related to their participation in a robbery crew. The investigation was conducted by the FBI and NYPD.
Between February and June 2019, 13 members and associates of the Makk Balla Brims set of the Bloods street gang have pleaded guilty to conspiring to distribute crack cocaine and heroin, as participants in a drug-trafficking network that operated in the Bronx, Brooklyn and Maine. The investigation, which initially focused on criminal activity in a New York City Housing Authority complex in East New York, Brooklyn, led to the recovery of two firearms and was conducted by the FBI and NYPD.
In February 2019, a member of the Bloods street gang on Long Island was sentenced to 15 years in prison for the attempted murder of a rival whom the defendant believed was responsible for the murder of a Bloods gang member. The investigation was conducted by the FBI and Nassau County Police Department (NCPD).
In January 2019, a member of the Brooklyn-based Red Lane Gorillas set of the Bloods gang was indicted for racketeering, including a murder and an attempted murder on Long Island. The investigation was conducted by the FBI, NCPD and NYPD.
Other Street Gang Enforcement
In the past eight months, eight defendants charged in connection with the criminal activities of the Bushwick Crew, a Brooklyn-based enterprise comprised of high-level heroin traffickers and members of the Young Gunners street gang, pleaded guilty to various crimes including murder, using and carrying firearms in relation to drug trafficking and crimes of violence, and heroin trafficking. The investigation was conducted by the FBI and NYPD.
In February 2019, a member of the street gang G’z Up, based in Bedford Stuyvesant, Brooklyn, was convicted following a jury trial of two murders. The investigation was conducted by the FBI.
Community Partnerships and Grants
PSN funding provides direct support to local law enforcement agencies as well as prevention, education and awareness programs for at-risk young people and parents. Presentations regarding gang awareness, internet safety and monitoring your child’s electronic devices all provide students and parents with necessary tools to effectively avoid the dangers of violent crime.
In October 2019, a PSN award of $500,447 was granted to Suffolk County to oversee and implement various violent crime reduction strategies in Suffolk County, Nassau County and throughout the district. Resources will be dedicated to enforcement and prevention efforts including funding for prosecutors and police, providing technical training, promoting community outreach efforts and supporting existing gun and gang violence reduction programs.
To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
Union Leader Charged with EmbezzlementRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Brian Arnold, 48, of Elmira, NY, was arrested and charged by criminal complaint with embezzlement and false entries in required union records. The charges carry a maximum penalty of five years in prison and a $10,000 fine.
Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that according to the complaint, the defendant, between September 2015 and August 2018, was the financial secretary of Steelworkers Local Union 104M, which represents approximately 75 workers at Anchor Glass Container Corporation. As financial secretary, Arnold was responsible for collecting dues checks, recording all receipts, maintaining receipts and disbursement records, writing and signing checks, and preparing an accurate account of all money received and paid out to report monthly to the union membership.
Local 104M is funded through union dues collected through employer deduction. Anchor Glass issues a check weekly to the union for the collected dues deducted. All checks are deposited into the union’s Chemung Canal Trust Company checking account, which is used to pay for all the expenses of the local through check or debit card. All of Local 104M's bank statements were sent to the union’s P.O. Box, and the defendant had sole access to the P.O. Box and the statements.
Between April 2016 and August 2018, Arnold embezzled union funds totaling $33,224.15 by: using Local I04M's debit card to make unauthorized purchases totaling $14,639.13 for his own personal benefit at various hotels, restaurants, and sporting goods stores as well as at Verizon Wireless; making 54 unauthorized ATM withdrawals totaling $16,940 from the union's checking account; and writing two unauthorized checks to himself from the union's checking account totaling approximately $1,445. The defendant also falsified records that Local 104M was required maintain.
The defendant made an initial appearance before U.S. Magistrate Judge Marian W. Payson and was released.
The complaint is the result of an investigation by the US Department of Labor, Office of Labor Management Standards (OLMS) Buffalo Office, under the direction of the Boston-Buffalo District Office, District Director Jonathan Russo.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
# # # #
U.S. Reaches Settlement to Recover More Than $700 Million in Assets Allegedly Traceable to Corruption Involving 1MDBRead the Press Release
LOS ANGELES – The Department of Justice has reached a settlement in a series of civil forfeiture cases against assets acquired by Low Taek Jho – a financier best known as Jho Low – and his family using funds allegedly misappropriated from 1Malaysia Development Berhad (1MDB) and laundered through financial institutions in several jurisdictions, including the United States, Switzerland, Singapore and Luxembourg.
The assets involved in settlements filed in 13 asset forfeiture cases are located in the United States, the United Kingdom and Switzerland, and are estimated to be worth more than $700 million. The assets subject to the settlement agreement include high-end real estate in Beverly Hills, New York and London; a luxury boutique hotel in Beverly Hills; and tens of millions of dollars in business investments that Low allegedly made with funds traceable to misappropriated 1MDB monies.
With the settlements being filed today in United States District Court in Los Angeles, coupled with the prior disposition of other 1MDB-related forfeiture cases, the United States will have recovered or assisted in the recovery of more than $1 billion in assets associated with the international money laundering conspiracy related to Malaysia’s investment development fund. This represents the largest civil forfeiture ever concluded by the Justice Department.
“A staggering amount of money embezzled from 1MDB at the expense of the people of Malaysia was laundered through the purchase of big-ticket assets in the U.S. and other nations. Thanks to this settlement, one of the men allegedly at the center of this massive scheme will lose all access to hundreds of millions of dollars,” said United States Attorney Nick Hanna. “The message in this case is simple: the United States is not a safe haven for pilfered funds. Our strict anti-money laundering controls are effective, and we will seize assets used by criminals to conceal ill-gotten gains.”
According to the civil forfeiture complaints, from 2009 through 2015, more than $4.5 billion in funds belonging to 1MDB were misappropriated by high-level officials of 1MDB and their associates, including Low. 1MDB was created by the government of Malaysia to promote economic development in Malaysia through global partnerships and foreign direct investment, and its funds were intended to be used for improving the well-being of the Malaysian people.
Under the terms of the settlement, Low, his family members, and FFP, a Cayman Islands entity serving as the trustees overseeing the assets at issue in these cases, agreed to forfeit all assets subject to pending forfeiture complaints in which they have a potential interest. The trustees are also required to cooperate and assist the Justice Department in the orderly transfer, management and disposition of the relevant assets. From the assets formerly managed by FFP, the United States will release $15 million to Low’s counsel to pay for legal fees and costs. Under the agreement, none of those fees may be returned to Low or his family members.
“As alleged in the complaints, Jho Low and others, including officials in Malaysia and the United Arab Emirates, engaged in a brazen multi-year conspiracy to launder money embezzled or otherwise misappropriated from 1MDB, and he used those funds, among other things, to engage in extravagant spending sprees, acquiring one-of-kind artwork and luxury real estate, gambling freely at casinos, and propping up his lavish lifestyle,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “This settlement agreement forces Low and his family to relinquish hundreds of millions of dollars in ill-gotten gains that were intended to be used for the benefit of the Malaysian people, and it sends a signal that the United States will not be a safe haven for the proceeds of corruption.”
“Today's settlement with Jho Low demonstrates the continued commitment of the FBI to root out the fraud and selfishness of the corrupt individuals who conspired to pay bribes and launder funds which belong to the Malaysian people,” said FBI Assistant Director Terry Wade of the Criminal Investigative Division. “The FBI’s dedicated International Corruption Squads will continue to combat foreign corruption which reaches our shores. We will not allow criminals, foreign or domestic, to use the United States in furtherance of their criminal activities.”
“The action announced today will allow the United States government to deny Mr. Low the use of the assets purchased with this extraordinarily large sum of money allegedly embezzled from 1MDB and the people of Malaysia,” said Chief Don Fort of IRS Criminal Investigations. “Mr. Low allegedly attempted to launder these funds through multiple international jurisdictions and a web of shell corporations, but his greed finally caught up with him. This case is a model for international cooperation in significant cross-border money laundering investigations”
The assets being forfeited subject to this settlement are in addition to the nearly $140 million in assets the U.S. previously forfeited in connection with Low’s investment in a business entity related to the Park Lane Hotel in New York, as well as a super-yacht, valued at over $120 million, seized by law enforcement authorities in Indonesia at the request of the Justice Department and recovered by Malaysian authorities directly from Indonesia. Several civil forfeiture complaints arising out of the 1MDB money laundering conspiracy remain pending against assets associated with other alleged co-conspirators.
Low separately faces criminal charges in the Eastern District of New York and the District of Columbia. This agreement that resolves the asset forfeiture actions does not release any entity or individual from filed or potential criminal charges.
The FBI’s International Corruption Squads in New York City and Los Angeles, as well as IRS Criminal Investigation, are investigating the case.
The settlements being filed today were negotiated by Assistant United States Attorneys John Kucera, Michael R. Sew Hoy and Steven R. Welk of the Asset Forfeiture Section, and Justice Department trial attorneys Woo S. Lee, Kyle R. Freeny, Joshua L. Sohn, Barbara Levy and Jonathan Baum of Money Laundering and Asset Recovery Section. The Office of International Affairs is providing assistance.
The Justice Department appreciates the significant assistance provided by the Attorney General’s Chambers of Malaysia, the Royal Malaysian Police, the Malaysian Anti-Corruption Commission, the Attorney General’s Chambers of Singapore, the Singapore Police Force-Commercial Affairs Division, the Office of the Attorney General and the Federal Office of Justice of Switzerland, the judicial investigating authority of the Grand Duchy of Luxembourg and the Criminal Investigation Department of the Grand-Ducal Police of Luxembourg.
A civil forfeiture complaint is merely an allegation that money or property was involved in or represents the proceeds of a crime. These allegations are not proven until a court awards judgment in favor of the United States.
U.S. Attorney Sherri Lydon to join Solicitors from the 7th, 8th, 10th, and 13th Judicial Circuits and Law Enforcement for a Press Conference Tomorrow in Greenville at 11:00 a.m.Read the Press Release
Columbia, South Carolina --- United States Attorney Sherri A. Lydon announced today that a press conference will be held tomorrow, Thursday, October 31, 2019, at 11:00 a.m., in the lobby of the Greenville County Courthouse, 305 East North Street, Greenville, South Carolina, 29601.
Represented at the press conference will be the U.S. Attorney’s Office for the District of South Carolina, 7th Circuit Solicitor Barry Barnette, 8th Circuit Solicitor David Stumbo, 10th Circuit Solicitor David Wagner, and 13th Circuit Solicitor Walt Wilkins, along with members of law enforcement.
WHEN: Thursday, October 31, 2019, at 11:00 a.m.
WHERE: Greenville County Courthouse
305 East North Street
Greenville, South Carolina 29601
NOTE: Press inquiries regarding logistics should be directed to Lance Crick, 864-282-2105. All media must present a government-issued photo ID (such as a driver’s license). Members of the media wishing to attend the remarks should gather in the first floor lobby of the Courthouse at 10:30 a.m., 30 minutes in advance.
#####
Three Admit Roles in Drug Trafficking OrganizationRead the Press Release
CAMDEN, N.J. – Three members of a drug-trafficking organization have pleaded guilty to their roles in distributing significant amounts of drugs in Camden, U.S. Attorney Craig Carpenito announced.
Ramon Velez, 43, of Camden, pleaded guilty today to an information charging one count of conspiracy to distribute heroin and fentanyl; Naeem Sadler, 19, also of Camden, pleaded guilty today to an information charging one count of conspiracy to distribute heroin within 1,000 feet of a school; Elisa Rivera, 27, of Camden, New Jersey, pleaded guilty on Oct. 29, 2019, to an information charging one count of conspiracy to distribute heroin within 1,000 feet of a school, all before U.S. District Judge Renee Marie Bumb in Camden federal court.
Five other members of the drug-trafficking conspiracy based on the 500 block of Pine Street in Camden – Ronnie Lopez, Nelson Salcedo, Paul Salcedo, Waldemar Garcia, and William Carrillo – previously have pleaded guilty in this case. The charges against 11 other defendants remain pending, and they are presumed innocent unless and until proven guilty.
According to documents filed in this case and statements made in court:
An investigation led by the FBI used surveillance, confidential informants, consensual recordings, over 40 controlled drug purchases, record checks, a GPS vehicle tracker, and several court-authorized wiretaps to uncover the operations of the drug-trafficking organization.
The counts to which Rivera and Sadler pleaded guilty carries a maximum potential penalty of 40 years in prison, and a $2 million fine. The count to which Velez pleaded guilty carries a maximum potential penalty of 40 years in prison, and a $5 million fine. Sentencing for all three defendants is scheduled for Feb. 7, 2020.
U.S. Attorney Craig Carpenito credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael T. Harpster; the Camden County Police Department, under the direction of Chief Joseph Wysocki; the Camden County Prosecutor’s Office, under the direction of Acting Prosecutor Jill S. Mayer; the Camden County Sherriff’s Department, under the direction of Sheriff Gilbert L. Wilson; the Cherry Hill Police Department, under the direction of Chief William P. Monaghan; and the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to the guilty pleas. He also thanked the Drug Enforcement Administration, the U.S. Marshals Service, and the Department of Homeland Security for their assistance.
The government is represented by Assistant U.S. Attorneys Sara A. Aliabadi and Patrick C. Askin of the U.S. Attorney’s Office Criminal Division in Camden.
Third Suspect in “Ghost Mask” Bank Robberies ArrestedRead the Press Release
Orlando, Florida – Daniel Joseph Zirk (23, Spring Hill) has been arrested and charged by a federal criminal complaint with attempted bank robbery and using a firearm during a crime of violence. Zirk made his initial appearance in federal court today and was detained.
Zirk’s alleged co-conspirators, John Armstrong, Jr. (30, North Fort Myers) and Tanya Legg (43, North Fort Myers) were arrested on October 7, 2019, on related charges. On October 16, 2019, a grand jury returned an indictment charging Armstrong with Hobbs Act robbery, attempted bank robbery, bank robbery, three counts of brandishing a firearm during a crime of violence, and possession of a firearm by a convicted felon. The indictment charges Legg with aiding and abetting a bank robbery, aiding and abetting the brandishing of a firearm during a crime of violence, and possession of a firearm by a convicted felon. If convicted, Zirk, Legg, and Armstrong each face up to life in federal prison.
According to allegation in the
complaint against Zirk and indictment against Armstrong and Legg, on June 14, 2019, Armstrong used a firearm to rob a 7-11 store in North Fort Myers. During the robbery, Armstrong struck one of the store employees in the face with his firearm, causing a laceration to the bottom corner of her left eye.On September 25, 2019, Armstrong and Zirk attempted to commit an armed robbery of a PNC Bank in Davenport. Zirk had carjacked a vehicle earlier that morning, holding the victim at gunpoint. Armstrong and Zirk later used the stolen vehicle as a getaway vehicle following the attempted PNC Bank robbery.
On September 26, 2019, Armstrong, Zirk, and Legg robbed a BB&T Bank in Altamonte Springs. Armstrong and Zirk used firearms to force bank employees to open the bank’s safe and then stole approximately $22,000 in cash. Legg assisted in purchasing items used to complete the BB&T robbery and then served as the getaway driver. Zirk and Armstrong wore ghost masks at each of the banks.
A criminal complaint is merely an allegation that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by the Federal Bureau of Investigation, with assistance from the Altamonte Springs Police Department, the Fort Myers Police Department, the Hernando County Sheriff’s Office, the Lee County Sheriff’s Office, the Orange County Sheriff’s Office, the Osceola County Sheriff’s Office, the Pasco Sheriff’s Office, the Punta Gorda Police Department, the Seminole County Sheriff’s Office, and the Tampa Police Department. It is being prosecuted by Assistant United States Attorney Chauncey A. Bratt.
Texas Man Pleads Guilty to Fraud Scheme Involving Fake Letters of Credit and Bank DocumentsRead the Press Release
A Texas man pleaded guilty today to defrauding victims around the United States by selling them fake “standby letters of credit” and other forged and fraudulent bank documents.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Assistant Director in Charge Timothy R. Slater of the FBI’s Washington Field Office made the announcement.
James Pierce, 43, of Spring, Texas, pleaded guilty to a three-count indictment charging him with wire fraud and conspiracy to commit wire fraud before Chief Judge Beryl A. Howell of the District of Columbia. Sentencing is scheduled for Jan. 10, 2020, before Judge Howell.
As part of his guilty plea, Pierce admitted that he and his co-conspirators falsely represented to their victims that they had a relationship with a bank located in the Dominican Republic (“Bank 1”), that they could use to secure financing for the victims’ large commercial transactions. In exchange for six-figure fees paid by the victims, the defendant and his co-conspirators falsely promised that the victims could gain access to credit at Bank 1. They further represented that Bank 1 would issue Society for Worldwide Interbank Financial Telecommunication (SWIFT) inter-bank messages to banks designated by the victims, showing that the victims had access to such credit. In reality, the defendant and his co-conspirators had no such relationship with Bank 1, and provided the victims with fake Bank 1 documentation falsely showing that it had transmitted the promised bank instruments. When the victims did not receive their SWIFT messages, the defendant and his co-conspirators gave the victims excuses and false statements, and in several instances, fraudulently induced the victims to pay additional money to have their bank documentation “re-issued” – which also never happened. Pierce also used a website and email address at jpierceinvestments.com to carry out the fraud.
The FBI investigated the case. Trial Attorney Blake Goebel and Assistant Chief Justin Weitz of the Criminal Division’s Fraud Section are prosecuting the case.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
Staten Island Man Sentenced to 12 Years for Illegally Distributing OxycodoneRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that Vito Gallicchio, 50, a Staten Island resident, was sentenced yesterday to 144 months in prison for conspiring to distribute oxycodone. GALLICCHIO was also ordered to forfeit $2,190,840 in drug proceeds he obtained during the period of the conspiracy. GALLICCHIO pled guilty in Manhattan federal court on October 18, 2018, before United States District Judge Andrew L. Carter, who imposed GALLICCHIO’s sentence.
U.S. Attorney Geoffrey S. Berman said: “Vito Gallicchio sold hundreds of thousands of oxycodone pills on the streets of New York, and masterminded a ring of purported ‘patients’ who faked injuries to get pills. As Gallicchio’s sentence makes clear, those who fuel the opioid epidemic face prosecution and stiff sentences.”
According to allegations in the Indictment and other documents filed in federal court, as well as statements made in public court proceedings:
Oxycodone is a highly addictive, narcotic opioid that is used to treat severe and chronic pain conditions. Oxycodone prescriptions are in high demand and have significant cash value to drug dealers. In fact, oxycodone tablets can be resold on the street for thousands of dollars. For example, 30-milligram oxycodone tablets have a current street value of approximately $30 per tablet in New York City, with street prices even higher in other parts of the country.
From at least approximately January 2012 until his arrest in 2017, GALLICCHIO obtained medically unnecessary oxycodone prescriptions from Dr. David Taylor, who operated a medical clinic in Staten Island, New York, and was subsequently convicted of conspiring to distribute oxycodone. GALLICCHIO traded cash and other gifts, such as liquor, in exchange for Dr. Taylor writing prescriptions for GALLICCHIO and his crew. During approximately the same period, GALLICCHIO filled the medically unnecessary prescriptions at a Staten Island pharmacy, and also purchased wholesale quantities of oxycodone from the pharmacist without prescriptions. GALLICCHIO subsequently sold the oxycodone pills for millions of dollars in profit, which he used to make significant renovations on his home and purchase several expensive cars, including, a Corvette, a Lincoln Navigator, a Lincoln LS, a Jeep Grand Cherokee, and a Bentley.
At the sentencing proceeding, Judge Carter found Gallicchio was responsible for distributing more than 180,000 30-milligram oxycodone pills and that he obstructed justice by seeking to intimidate at least two government witnesses.
* * *
GALLICCHIO’s co-defendant, David Taylor, is scheduled to be sentenced on January 16, 2020.
Mr. Berman praised the investigative work of the DEA Tactical Diversion Squad in New York, which comprises agents and officers from the DEA, the New York City Police Department, the New York State Police, Town of Orangetown Police Department, Rockland County Drug Task Force, Westchester County Police Department, and New York City Department of Investigation. He also acknowledged the assistance of the Department of Health & Human Services.
The case is being prosecuted by the Office’s Narcotics Unit. Assistant U.S. Attorneys Kiersten A. Fletcher, Justin Rodriguez, and Nicolas Roos are in charge of the prosecution.
Statement by the U.S. Attorney’s Office on Domestic Violence Awareness MonthRead the Press Release
By Presidential Proclamation, October is Domestic Violence Awareness Month.
Ending domestic violence – a heinous crime that terrorizes families, shatters homes, and destroys lives – is a top priority for the U.S. Department of Justice. Over the past 30 days, the U.S. Attorney’s Office for the Northern District has reaffirmed its steadfast commitment to empowering survivors and fighting this horrible form of abuse.
We understand that domestic violence is a pervasive problem in Texas – and far too often, abuse escalates from bruises to bloodshed and tragically, loss of life. At least 175 women and 36 men were murdered by an intimate partner in Texas last year, according to the Texas Council on Family Violence. Roughly 60% of the abusers who killed their partners wielded a gun.
In an effort to prevent these tragic homicides, we’ve reached out to state and local law enforcement alerting them that federal firearm laws can be used to prosecute abusers – often without the testimony of victims, who, for obvious reasons, may be reluctant to testify in a court proceeding against their abuser.
The pertinent federal domestic violence crimes fall into two broad categories:
- Crimes under the Gun Control Act, which prevents prohibited persons – including convicted felons, individuals previously convicted of misdemeanor domestic violence offenses, and individuals subject to certain protective orders—from possessing firearms, or from lying to firearms dealers about their status
- Crimes under the Violence Against Women Act, which prohibits interstate stalking, cyber stalking, and using interstate commerce to commit domestic violence or violate protective orders
The U.S. Attorney’s Office has created a comprehensive brochure summarizing the federal statutes that may be charged in the domestic violence context, available at https://www.justice.gov/USAO-NDTX/DV.The Northern District of Texas’ Domestic Violence Initiative Team – Assistant U.S. Attorneys Keith Robinson (Chief of NDTX’s Violent Crimes Section), Damien Diggs, and John Boyle, along with agents from ATF’s Dallas Field Division – have held information sessions for local District Attorney’s Offices; federal, state, local, and county law enforcement; and state judges to maximize referral of these cases to federal prosecutors.
As with all issues of public safety, while we will make as many arrests as we can consistent with the interests of justice, we recognize that enforcement alone will not solve the problem. So, we’re also working closely with our partners in the prevention, education and survivor support communities, like Genesis Women’s Shelter, The Family Place, and others. Earlier this month, we were proud to host the Justice Department’s Office of Violence Against Women, which awarded $16.5 million to support local law enforcement, victim service providers, and shelters fighting domestic and sexual violence in north Texas.
Moreover, U.S. Attorney for the Northern District of Texas Erin Nealy Cox was recently appointed by Attorney General William Barr to lead the Domestic Violence Working Group of the U.S. Attorney General’s Advisory Committee. This group serves to advise the Attorney General and federal law enforcement partners nationwide as to how the USAO community can effectively marshal federal resources to combat domestic violence. She is honored to stand with dedicated U.S. Attorney’s across the country in the fight against domestic violence, and recently spoke at a Domestic Violence Conference hosted by U.S. Attorney for the Northern District of Ohio Justin Herdman.
“As Texans and Americans, we must remain vigilant in our quest to end domestic abuse and promote peace and safety in the home,” says the U.S. Attorney. “While we must recognize and face head-on the existence and tragedy of domestic violence, we should also take heart in knowing that combatting and preventing this crime are top priorities of law enforcement at all levels, and that stakeholders are working closely across disciplines to bring a stop to it.”
South Florida Resident Arrested for Attempting to Illegally Export Controlled Items to LibyaRead the Press Release
Peter Sotis, 55, of Delray Beach, Florida, was arrested yesterday based on an indictment charging him with conspiracy to violate and attempted violation of the International Emergency Economic Powers Act (IEEPA) and the Export Administration Regulations (EAR), as well as smuggling of goods.
John C. Demers, Assistant Attorney General for National Security; Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida; Robert Luzzi, Special Agent in Charge of the Department of Commerce’s Office of Export Enforcement (DOC) Miami Field Office; and Anthony Salisbury, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (ICE-HSI) Miami Field Office, made the announcement.
The indictment alleges Sotis was the owner and principal of Add Helium, a Fort Lauderdale diving company. Sotis was charged with smuggling, conspiracy to violate and attempted violation of the IEEPA and the EAR by transferring dual-use goods, that is, articles that have both civilian and military application, for export to Libya without the required Department of Commerce license.
In particular, court documents indicated that Sotis and a co-defendant at Add Helium transferred four rebreathers, which were controlled under the EAR for national security reasons, to a shipping company for export to Libya after being informed by a Commerce agent that the items could not be exported while a license determination was pending. A rebreather is an apparatus that absorbs the carbon dioxide of a scuba diver's exhaled breath to permit the rebreathing (recycling) of each breath. This technology produces no bubbles, thereby concealing the diver’s activities from those on the surface, and allowing a diver to stay underwater longer compared with normal diving equipment.
Sotis had his initial appearance on the charges today before U.S. Magistrate Judge John J. O'Sullivan. He is scheduled to be arraigned on the charges on Nov. 13, 2019, at 10 a.m. in Miami.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Assistant Attorney General Demers and U.S. Attorney Fajardo Orshan commended the investigative efforts of the DOC and HSI. They also thanked the FBI’s Miami Field Office and U.S. Customs and Border Protection for their assistance.
This case is being prosecuted by Assistant U.S. Attorney Michael Thakur of the Southern District of Florida and Trial Attorney Thea D. R. Kendler of the National Security Division’s Counterintelligence and Export Control Section.
South Florida Resident Arrested for Attempting to Illegally Export Controlled Items to LibyaRead the Press Release
MIAMI - Peter Sotis, 55, of Delray Beach, Florida, was arrested yesterday based on an indictment charging him with conspiracy to violate and attempted violation of the International Emergency Economic Powers Act (IEEPA) and the Export Administration Regulations (EAR), as well as smuggling of goods.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida; John C. Demers, Assistant Attorney General for National Security; Robert Luzzi, Special Agent in Charge of the Department of Commerce’s Office of Export Enforcement (DOC) Miami Field Office; and Anthony Salisbury, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (ICE-HSI) Miami Field Office, made the announcement.
The indictment alleges Sotis was the owner and principal of Add Helium, a Fort Lauderdale diving company. Sotis was charged with smuggling, conspiracy to violate and attempted violation of the IEEPA and the EAR by transferring dual-use goods, that is, articles that have both civilian and military application, for export to Libya without the required Department of Commerce license.
In particular, court documents indicated that Sotis and a co-defendant at Add Helium transferred four rebreathers, which were controlled under the EAR for national security reasons, to a shipping company for export to Libya after being informed by a Commerce agent that the items could not be exported while a license determination was pending. A rebreather is an apparatus that absorbs the carbon dioxide of a scuba diver's exhaled breath to permit the rebreathing (recycling) of each breath. This technology produces no bubbles, thereby concealing the diver’s activities from those on the surface, and allowing a diver to stay underwater longer compared with normal diving equipment.
Sotis had his initial appearance on the charges today before U.S. Magistrate Judge John J. O'Sullivan (Case No. 19cr20693). He is scheduled to be arraigned on the charges on Nov. 13, 2019 at 10 a.m. in Miami.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney Fajardo Orshan and Assistant Attorney General Demers commended the investigative efforts of the DOC and HSI. They thanked the FBI’s Miami Field Office and U.S. Customs and Border Protection for their assistance.
This case is being prosecuted by Assistant U.S. Attorney Michael Thakur of the Southern District of Florida and Trial Attorney Thea D. R. Kendler of the National Security Division’s Counterintelligence and Export Control Section.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Social Security Administration Employee Sentenced to 34 Months in Prison for Falsifying Records and Stealing Social Security BenefitsRead the Press Release
CAMDEN, N.J. – A Social Security Administration employee was sentenced today to 34 months in prison for unlawfully accessing the Social Security accounts of individuals and falsifying their records in order to steal funds for his own use, U.S. Attorney Craig Carpenito announced.
Nicholas Pao, 38, of Egg Harbor Township, New Jersey, previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of theft of government funds and two counts of aggravated identity theft. Judge Rodriguez imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Pao was a 10-year employee of the Social Security Administration who worked as a claims technical expert in the Social Security Administration’s office in Egg Harbor Township. Pao was responsible for determining eligibility and payment amounts, processing difficult cases, assisting in case reviews, and making special payment approvals. From December 2014 to July 2018, Pao used his credentials to access the confidential records of several individuals without their knowledge or authority. He altered their records and made fraudulent changes that caused the Social Security Administration to issue benefits to these individuals. Pao would then intercept these benefits, which were issued by way of a Direct Express account and credit card. Pao depleted the funds issued on the Direct Express accounts without the knowledge or consent of the individuals. Pao stole approximately $100,000 in Social Security funds.
In addition to the prison term, Judge Rodriguez sentenced Pao to three years of supervised release and ordered him to make full restitution to the SSA.
U.S. Attorney Carpenito credited special agents of the Office of the Inspector General, Social Security Administration, under the direction of John F. Grasso with the investigation.
The government is represented by Special Assistant U.S. Attorney Meriah Russell of the U.S. Attorney’s Office Criminal Division in Camden.
Sioux Falls Man Sentenced for Conspiracy to Distribute a Controlled SubstanceRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on October 21, 2019, by U.S. District Judge Karen E. Schreier.
Michael Bernard Goldberg, age 36, was sentenced to 132 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Goldberg was indicted by a federal grand jury on September 5, 2018. He pled guilty on August 8, 2019.
The conviction stemmed from incidents beginning on an unknown date and continuing until approximately September 2018, when Goldberg, along with at least one other person, reached an agreement or came to an understanding to distribute 500 grams or more of a mixture or substance containing methamphetamine in the District of South Dakota.
Goldberg purchased over 500 grams of methamphetamine from co-conspirators to distribute to his own drug customers in Sioux Falls.
This case was investigated by the Drug Enforcement Administration and the Sioux Falls Area Drug Task Force. Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
Goldberg was immediately turned over to the custody of the U.S. Marshals Service.
Sioux Falls Man Convicted on Child Pornography ChargesRead the Press Release
United States Attorney Ron Parsons announced that Kevin Allen Lamm, a/k/a Mike Malone, age 35, of Sioux Falls, South Dakota, was found guilty of Possessing, Distributing, and Producing Child Pornography as a result of a federal jury trial in Sioux Falls, South Dakota.
The charges carry a maximum penalty of 50 years in federal prison and/or a $250,000.00 fine, lifetime of supervised release, and a $300 special assessment to the Federal Crime Victims Fund.
Lamm was indicted by a federal grand jury on May 9, 2017.
The charges stemmed from incidents between January 12, 2017, and April 27, 2017, when Lamm knowingly received and possessed child pornography. The investigation also revealed that Lamm created a fake Facebook account and used it to persuade a 14 year-old girl in another state to send sexually explicit photographs to him using Facebook Messenger. When law enforcement searched his Sioux Falls apartment, they found child pornography on a digital memory card.
This case was investigated by the Department of Homeland Security. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
A presentence investigation was ordered and Lamm is scheduled to be sentenced on January 13, 2020. The defendant was remanded to the custody of the U.S. Marshals Service.