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Monday 28 October 2019
Owner of New Jersey Tax Return Preparation Business Sentenced to Prison for Tax FraudRead the Press Release
A Keasbey, New Jersey, tax return preparer was sentenced to 29 months in prison today for filing false tax returns on behalf of clients and failing to file his own tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Craig Carpenito of the District of New Jersey.
According to documents filed in this case and statements made in court, David Patterson, 38, owned and operated D&D Tax Service LLC, a tax preparation business. Through the firm, he prepared fraudulent tax returns for tax year 2012 in which he knowingly falsified his clients’ medical and dental expenses, gifts to charity, and unreimbursed employee expenses. At times, he took portions of his clients’ tax refunds and deposited them without authorization into bank accounts he maintained or controlled. Patterson also failed to file individual income tax returns for himself, and to pay federal income taxes, for 2013 through 2015.
In addition to the prison term, Judge Salas sentenced Patterson to one year of supervised release and ordered restitution of $290,321 to be paid to the IRS.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Carpenito thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorney Eric Powers and Assistant U.S. Attorney Jonathan M. Peck, who prosecuted this case.
Additional information about the Tax Division and its enforcement efforts can be found on the division’s website.
Operation Free Market Update: Huntington Woman Pleads Guilty to Federal Drug ConspiracyRead the Press Release
HUNTINGTON, W.Va. – A Huntington woman pled guilty today to a federal drug conspiracy charge, announced United States Attorney Mike Stuart. Maechelle Relf, 27, entered a guilty plea to an indictment charging her with conspiracy to distribute heroin and fentanyl.
“Relf is one of seven defendants charged in Operation Free Market,” said United States Attorney Mike Stuart. “During the investigation of this drug network operating between Detroit and Huntington, law enforcement seized approximately 130 grams of fentanyl and 120 grams of heroin.”
Relf admitted that between December 2018 and May 2019 she conspired with other individuals to distribute heroin and fentanyl in Huntington, West Virginia. Relf admitted that she would travel to Detroit, Michigan to obtain heroin for George Lockhart for him to sell in Huntington.
Relf faces up to twenty years in federal prison when she is sentenced on February 3, 2020.
Operation Free Market was a long-term drug investigation in the Huntington area. The investigation was the result of a joint effort by the Drug Enforcement Administration and the Violent Crime and Drug Task Force West.
The plea hearing was held before United States District Judge Robert C. Chambers. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
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Officials from the U.S., Canada and Mexico Participate in 2019 Trilateral Meeting in Ottawa to Discuss Antitrust EnforcementRead the Press Release
Assistant Attorney General Makan Delrahim of the U.S. Department of Justice Antitrust Division, President Alejandra Palacios of the Mexican Federal Economic Competition Commission, Federal Trade Commission Chairman Joseph J. Simons and Canadian Commissioner of Competition Matthew Boswell.The heads of the antitrust agencies of the United States, Canada and Mexico met today in Ottawa, Canada, to hold an annual dialogue on antitrust enforcement and policy priorities.
The meeting included Assistant Attorney General Makan Delrahim of the U.S. Department of Justice Antitrust Division, Federal Trade Commission Chairman Joseph J. Simons, Canadian Commissioner of Competition Matthew Boswell and President Alejandra Palacios of the Mexican Federal Economic Competition Commission.
The discussions covered a range of topics including enforcement and collaboration involving digital markets, updates on agency developments, international cooperation and challenges to antitrust enforcement faced by each agency.
“International collaboration is a vital part of the work of the Antitrust Division and it is especially important for us to maintain close relationships with our enforcement partners next door,” said Assistant Attorney General Delrahim. “Our shared tradition of cross-border collaboration helps ensure a competitive marketplace for consumers throughout North America.”
“As the economies of the U.S., Canada, and Mexico become increasingly interconnected, it is vital that we cooperate closely with our Canadian and Mexican counterparts on emerging digital economy competition matters and other issues of mutual concern,” said FTC Chairman Simons. “As today’s meeting demonstrates, our close cooperation can serve as a model for the world.”
The meetings build on the foundations built by the 1995 cooperation agreement between the United States and Canada, the 2000 agreement between the United States and Mexico and the 2001 agreement between Canada and Mexico. The agreements commit the antitrust agencies to cooperate and coordinate with each other to make their antitrust policies and enforcement as consistent and effective as possible.
Newport Beach Man Gets Federal Prison Time for Stealing Endangered Ring-Tailed Lemur from Santa Ana ZooRead the Press Release
SANTA ANA, California – An Orange County man was sentenced today to three months in federal prison for breaking into the Santa Ana Zoo after hours and stealing North America’s oldest ring-tailed lemur in captivity to keep the endangered animal as his pet.
Aquinas Kasbar, 19, of Newport Beach, was given the 90-day prison sentence by United States District Judge Andrew J. Guilford, who also ordered him to pay $8,486 in restitution to the zoo.
Kasbar pleaded guilty on July 8 to one misdemeanor count of unlawfully taking an endangered species. He broke into the Santa Ana Zoo on July 27, 2018 after it had closed for the day. He then used bolt cutters to cut a hole in the zoo’s enclosures for lemurs and capuchin monkeys, which enabled several of the animals to escape, though they were later recovered.
While inside the zoo, Kasbar stole Isaac, a 32-year-old, ring-tailed lemur (lemur catta) and the oldest such lemur in captivity in North America. (Isaac turned 33 years old in July; a lemur’s lifespan typically is between 20 years and 25 years.) The ring-tailed lemur is native to Madagascar and is on a list of the 25 most endangered primates, according to court documents. Ring-tailed lemurs are endangered, in part, because of the illegal pet trade, court papers state.
Kasbar then placed Isaac in a plastic drawer that lacked ventilation holes, court papers state. The next day, Kasbar abandoned the animal in front of a Newport Beach hotel, leaving him in the same plastic drawer with two notes placed on it, which read, “Lemur (with tracker)” and “This belongs to the Santa Ana Zoo it was taken last night please bring it to police,” according to court documents. Kasbar’s actions resulted in a loss to the Santa Ana Zoo of approximately $8,486. Isaac later was returned unharmed to the zoo.
his case was investigated by the FBI, the U.S. Fish and Wildlife Service, the Newport Beach Police Department, and the Santa Ana Police Department.
This matter was prosecuted by Assistant United States Attorneys Daniel H. Ahn of the Santa Ana Branch Office and Erik M. Silber of the Environmental and Community Safety Crimes Section.
New Haven Man Pleads Guilty to Heroin Trafficking Charge, Faces 10 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that BRIAN K. BACKMAN, also known as “B,” “NYB” and “New York B,” 54, of New Haven, pleaded guilty today in New Haven federal court to a heroin trafficking offense.
This matter stems from an investigation headed by the FBI’s New Haven Safe Streets/Gang Task Force and New Haven Police Department that targeted drug trafficking and related acts of violence by members, former members and associates of the “Island Brothers” street gang in New Haven. The investigation, which included court-authorized wiretaps and controlled purchases of narcotics, also revealed that the drug trafficking organization had established a base of operation in Fitchburg, Massachusetts. The investigation subsequently identified a second drug trafficking network that involved the large-scale distribution of heroin.
During the investigation, Backman was identified as a supplier of heroin to members of the New Haven drug trafficking organization. Backman was intercepted over multiple wiretaps discussing the acquisition of heroin from a supplier in New York for redistribution in and around New Haven. On June 16, 2019, Backman sent a courier to pick up approximately 10,000 bags of heroin from a New York supplier. The courier and another co-conspirator were arrested after the courier arrived with the drugs at a Hamden parking lot.
On July 9, 2019, a grand jury in New Haven returned a 15-count indictment charging Backman and 24 other individuals with various offenses. Backman has been detained since his arrest on July 10, 2019.
Backman pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute one kilogram or more of heroin, and offense that carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life. He is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on January 13, 2020, in Hartford.
This matter is being investigated by the FBI’s New Haven Safe Streets/Gang Task Force, New Haven Police Department, Milford Police Department, Hamden Police Department, East Haven Police Department, Connecticut State Police, Connecticut Department of Correction and the U.S. Drug Enforcement Administration.
This case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan, Peter D. Markle and Elena L. Coronado.
Missouri Man Sentenced to Nearly Two Years in Prison for His Role in “Field of Schemes” Organic Grain Fraud Involving More than $120 Million in Total Fraudulent SalesRead the Press Release
A Missouri man who assisted in perpetrating the largest organic grain fraud scheme in United States history was sentenced today to nearly two years in federal prison. Another Missouri man and three farmers from Nebraska were previously sentenced to federal prison for their roles in a scheme to defraud customers across the country.
John Burton, age 52, from Clarksdale, Missouri, received the prison term after a May 10, 2019 guilty plea to one count of conspiracy to commit wire fraud. Evidence at sentencing showed that Burton grew grain that was not organic and sold it to Randy Constant, knowing that Constant was going to market and sell the grain as organic. By selling his grain to Constant, Burton was able to receive a premium, selling the grain for more than he could have on the open market. Burton also worked for Constant, raising grain on farm fields that Constant either owned or rented. While doing this work, Burton often sprayed Constant’s fields with chemicals and fertilizers, even though he knew those substances were not allowed on organic fields. Burton either sold or raised over $5,000,000 in crops for Constant. Overall, Constant’s scheme involved at least $142,433,475 in grain sales, and the vast majority of those sales were fraudulent in that the grain he sold was not organic even though it was marketed as organic.
Burton was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Burton was sentenced to 22 months’ imprisonment. He was also ordered to forfeit over $1,000,000 in proceeds from his crime and was ordered to pay a $100,000 fine.
The case was prosecuted by Assistant United States Attorneys Jacob Schunk and Anthony Morfitt and investigated by the United States Department of Agriculture – Office of Inspector General and the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number are 19-CR-2025.
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Mississippi Man Sentenced to Federal Prison for Defrauding Baton Rouge BusinessesRead the Press Release
United States Attorney Brandon J. Fremin announced today that U.S. Chief Judge Shelly D. Dick sentenced Bruce Aaron Boulton, age 49, of Woodville, Mississippi, to 51 months in federal prison following his conviction for mail fraud and wire fraud. The Court further sentenced Boulton to three years of supervised release following his term of imprisonment, and ordered him to pay restitution in the amount of $584,142.70.
According to admissions made during his guilty plea, Boulton was employed by Kleinpeter Farms Dairy, LLC, as a safety and fleet manager from 2013 to 2015. During the course of his employment with Kleinpeter, Boulton created false and fictitious companies for the purpose of defrauding Kleinpeter. He then created fraudulent invoices from these companies which he used to bill Kleinpeter, and which reflected repairs on Kleinpeter vehicles that were not actually performed. This caused Kleinpeter to issue checks to Boulton’s fictitious companies which were then deposited into a bank account he controlled. This scheme caused Kleinpeter to pay him approximately $305,373 to which he was not entitled.
Boulton then continued his scheme with Angelle Concrete Group, LLC (“Angelle”), one of the largest producers of ready-mix concrete in the greater Baton Rouge area. At Angelle, Boulton was employed as an Assistant Fleet Manager from June of 2015 until January of 2018. While at Angelle, Boulton again created fictitious companies for the purpose of defrauding Angelle. As part of his scheme, Boulton created and submitted fraudulent invoices and monthly expense reports. These fraudulent billings caused Angelle to pay Boulton for work his fictitious companies never actually performed on Angelle’s vehicles and equipment. Boulton’s scheme caused Angelle and its insurance company to suffer a loss of $278,769.56.
U.S. Attorney Fremin stated, “My office will continue to aggressively pursue those who use their positions of trust to steal from their employers. Such betrayal often risks the financial livelihoods of their co-workers and may threaten the financial integrity of their employers. I am proud of our prosecutors and the special agents from the United States Secret Service who worked on this very important matter.”
Tara McLeese, Resident Agent in Charge of the United States Secret Service in Baton Rouge praised the efforts of investigators and the talented prosecutors from the United States Attorney’s Office for bringing Boulton to justice. McLeese said, “Financial crimes are not victimless crimes and have real impact on our community. Today’s sentencing reflects the aggressive efforts of the United States Secret Service and our partners, to combat financial based crimes in the Middle District of Louisiana.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the United States Secret Service and prosecuted by Assistant United States Attorney Peter J. Smyczek.
Minot Air Force Base Man Sentenced on Charges of Distribution of Child PornographyRead the Press Release
Bismarck – U.S. Attorney Drew H. Wrigley announced that Chief Federal District Court Judge Daniel L. Hovland today sentenced Carl Deshawn Dean, age 21, Minot Air Force Base, ND to serve 7 years in prison, followed by 10 years of supervised release, after Dean plead guilty to Distribution of Images Depicting the Sexual Exploitation of a Minor. The defendant was also ordered to pay $3,000 in restitution and $100 in special assessments to the Crime Victim’s Fund.
Between December 2016 and March 2, 2018, while serving as an Airman at the Minot Air Force Base, Dean solicited, received, and distributed child pornography. As part of his illicit efforts, Dean created a fake female persona, and communicated with numerous individuals around the world in order to receive images of child pornography. The Air Force Office of Special Investigations (AFOSI) investigation determined, through its investigation, that Dean sought out multiple individuals who had access to children and asked if these individuals would be willing to take nude photographs of or participate in sexual acts with these children.
AFOSI reviewed Dean’s electronic media and determined that he possessed 878 images and 42 videos of apparent child pornography; of which 693 unique images and 15 unique videos matched known child pornography images. Dean used social networking and instant messaging applications, including Gmail, Facebook, Google Hangouts, Snapchat, and WhatsApp to solicit child pornography. Additionally, Dean shared images and videos of child pornography between 200 to 300 times. Finally, on approximately 15 occasions, Dean used messaging applications to create or record files from children he coerced to send him sexual images.
“The defendant deviously utilized electronic and social media platforms to illegally trade in vile images of sex crimes committed against children,” said U.S. Attorney Drew Wrigley, “we commend the investigators in this case, as we work together to aggressively prioritize protecting children and someday eradicating the child pornography industry.”
On July 31, 2019, Dean pleaded guilty to distribution of child pornography.
This case was investigated by the United States Air Force Office of Special Investigations and the Minot Police Department.
Assistant United States Attorney Jonathan J. O’Konek prosecuted the case.
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Middlesex County Tax Preparer Sentenced to 29 Months in Prison for FraudRead the Press Release
NEWARK, N.J. – A Keasbey, New Jersey, tax preparer was sentenced today to 29 months in prison for filing a false tax return for two clients and failing to file a tax return, U.S. Attorney Craig Carpenito announced.
David Patterson, 38, previously pleaded before U.S. District Judge Esther Salas to one count of aiding and assisting in the preparation of a false tax return and one count of willfully failing to file his own tax return. Judge Salas imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Patterson owned and operated D&D Tax Service LLC, a tax preparation business located in Keasbey. He admitted to preparing a fraudulent tax return on behalf of two clients for tax year 2012 in which he knowingly falsified the clients’ medical and dental expenses, gifts to charity, and unreimbursed employee expenses. Patterson admitted that at times he split portions of his clients’ tax refunds into bank accounts he maintained or controlled. He also admitted that he failed to file an individual income tax return for himself, and pay federal income taxes, for calendar year 2013.
In addition to the prison term, Judge Salas sentenced Patterson to one year of supervised release and ordered him to pay restitution of $290,321 to the United States. He is also not permitted to run a tax preparation business until the end of his supervised release.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur in Newark and special agents of the U.S. Attorney’s Office, District of New Jersey, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jonathan M. Peck of the U.S. Attorney’s Office and Trial Attorney Eric B. Powers of the Department of Justice Tax Division.
Defense counsel: James Friedman Esq., New Brunswick, New Jersey
Manhattan Man Pleads Guilty to Sex TraffickingRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that WILLIAM BAZEMORE pled guilty today to sex trafficking of a female victim by force, fraud, or coercion. BAZEMORE pled guilty before U.S. District Judge Analisa Torres.
U.S. Attorney Geoffrey S. Berman said: “William Bazemore used violence and coercion to force a woman to engage in commercial sex for his own profit. With Bazemore’s guilty plea today, we seek to deliver justice for a victim of sex trafficking and exploitation, and to deter others from engaging in this heinous criminal conduct.”
According to the Indictment, as well as statements made during BAZEMORE’s plea proceeding:
In or about 2017, BAZEMORE was the leader of a criminal enterprise (the “Organization”) involved in various criminal acts, including drug distribution and sex trafficking, in and around New York City, Maine, and Connecticut. Members and associates of the Organization transported heroin and crack cocaine between New York, Connecticut, and Maine, at times using women suffering from drug addiction as drug couriers to secrete drugs on their persons and transport drugs and drug proceeds in vehicles controlled by the Organization. In addition, BAZEMORE and other members and associates of the Organization used force and coercion to cause a female drug customer (“Victim-1”) to engage in commercial sex for their financial gain, and took actions to prevent Victim-1 and others from cooperating with law enforcement against the Organization.
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BAZEMORE, 39, of New York, New York, was arrested on March 3, 2019, while in state custody in Maine, and has been in federal custody since. BAZEMORE pled guilty to one count of sex trafficking by force, fraud, or coercion, which carries a maximum sentence of life in prison and a mandatory minimum sentence of 15 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
BAZEMORE is scheduled to be sentenced by Judge Torres on March 12, 2020.
BAZEMORE’s co-defendant, Warren Bryant, is scheduled for trial on December 9, 2019.
Mr. Berman praised the outstanding investigative work of the Federal Bureau of Investigation, the New York City Police Department, and the Special Agents of the U.S. Attorney’s Office for the Southern District of New York.
This case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Jacqueline Kelly, Danielle Sassoon, and Lauren Schorr Potter are in charge of the prosecution.
Man Pleads Guilty to Escape from A Correctional Facility, Bank Robbery and CarjackingRead the Press Release
LAS VEGAS, Nev. — William Etheridge, 56, pleaded guilty today to 11 counts of bank robbery, carjacking, and escape, U.S. Attorney Nicholas A. Trutanich announced.
According to court documents, on May 18, 2017, Etheridge escaped from the Northwest Regional Reentry Center, a contracted correctional facility of the Federal Bureau of Prisons in Oregon, where he was in custody for a federal bank robbery conviction. Shortly after his escape, between June 2, 2017 and July 19, 2017, Etheridge robbed nine banks in Oregon and Washington, and attempted to rob another bank in Oregon.
On July 25, 2017, Etheridge, armed with a black pellet gun, stole $18,120 from a WestStar Credit Union in Las Vegas. He then demanded a ride in one of the victim tellers’ cars. When none of the tellers volunteered to provide him with a ride, he told one of the tellers to leave the bank with him. Upon leaving the bank, Etheridge used force and violence to carjack a vehicle with two victims inside. At Etheridge’s request, the victims dropped him off at a motorcycle dealership in Las Vegas to purchase a motorcycle for use as a getaway vehicle. Shortly thereafter, law enforcement arrested Etheridge at the dealership.
This case was the product of an investigation by the FBI and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Nicholas Dickinson is prosecuting the case.
Etheridge was investigated in three federal jurisdictions for his crimes, including the District of Nevada, the Western District of Washington, and the District of Oregon.
Etheridge is scheduled to be sentenced by U.S. District Judge Jennifer A. Dorsey on January 27, 2020. Etheridge faces a maximum statutory penalty of 20 years in prison and a $250 fine for the bank robbery charge; 15 years in prison and a $250,000 fine for the carjacking charge; and five years in prison and a $250,000 fine for the escape charge. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
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Lengthy Prison Sentences Handed Down in Continuing Violent Crime Investigations in Public Housing AreasRead the Press Release
NASHVILLE, Tenn. – October 28, 2019 – Four Nashville men received lengthy prison sentences last week for a series of violent crimes connected to investigations in or near the J.C. Napier and Tony Sudekum public housing developments, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Rodrecus M. Smith, aka, Lil Rod, 31, was sentenced on Thursday to 34 years in prison in connection with the October 2013 murder of Mario McKnight, during the robbery of another person. On that day, Smith had gone to a home in the Edgehill community of Nashville to rob a drug dealer during a high stakes dice game. Armed with a Mac/Tek style firearm with an extended magazine, Smith robbed the drug dealer of $5,000 and pointed the weapon at others, threatening to shoot anyone who interfered.
During the robbery, Mario McKnight was in the immediate area picking up laundry from a dry cleaning van and in an attempt to escape the violence, he jumped into the back of the van and urged the driver to leave the area. As the van drove past, Smith fired into the van, striking McKnight and killing him. Smith was then driven away from the area by Martez Parham, who conspired with Smith to commit the robbery. Smith was subsequently indicted on state charges but remained a fugitive until June 2014, when he was arrested by the U.S. Marshals Fugitive Task Force. Smith was indicted by a federal grand jury in June 2016. While in custody and awaiting trial, Smith made numerous attempts to prevent witnesses from testifying against him. During the third day of a jury trial in December 2018, Smith abruptly pleaded guilty to all charges, including conspiracy to commit robbery affecting commerce; carrying, brandishing and discharging a firearm resulting in death; possession of ammunition by a convicted felon; and two counts of witness tampering.
Darryl Starks, 35, was sentenced on Thursday to 15 years in prison. Starks was charged in connection with four shootings, all of which occurred in or adjacent to the J.C. Napier neighborhood, three of which were precipitated by Starks’ belief that Martez Parham had been involved in the robbery and murder in the Edgehill incident described above, which resulted in the death of Starks’ friend, Mario McKnight. Starks pleaded guilty to the charges in April 2017.
Starks participated in the shooting of Joshua Woods on October 16, 2014, whom he believed to have sided with Parham during a physical altercation between Starks and Parham. Woods was shot multiple times but survived.
On March 23, 2015, Starks shot into a vehicle with a 12-gauge shotgun, after becoming involved in another physical altercation during a dice game. No one was injured during that incident.
On July 16, 2015, Starks drove another person through the J.C. Napier neighborhood looking for Martez Parham and Ernest Eddie. That person was armed with a semi-automatic handgun and intended to shoot them. Upon seeing them, the individual fired at them and missed, but struck a woman who was holding a young child in her arms. The bullet struck the woman in the head and caused life-threatening injuries.
A few hours later, during the early morning hours of July 17, 2015, Starks returned to the J.C. Napier neighborhood with Terrance Kimbrough, armed with a rifle and a shotgun. Starks and Kimbrough engaged in a shootout with the brother of the female victim shot earlier. Two other innocent women were struck by gunfire during this incident and received medical treatment. Starks and Kimbrough were taken into custody on July 28, 2015, after an extensive manhunt by law enforcement. Kimbrough was previously sentenced in March to 42 years in prison.
Ernest Eddie, 30, was sentenced on Wednesday, to 61 months in prison. Eddie was indicted in August 2015, with being a convicted felon in possession of a firearm, in connection with the shooting incident on July 16, 2015. Through witness interviews and social media posts, investigators determined that Eddie, and Martez Parham, had been in possession of a .45 caliber handgun during this incident. Eddie pleaded guilty in September 2015.
Martez Parham, 27, was also sentenced on Wednesday to 27 years in prison for the robbery and conspiracy; witness tampering; and being a convicted felon in possession of firearms. Parham pleaded guilty in May 2017.
These cases were investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Metropolitan Nashville Police Department and prosecuted by Assistant U.S. Attorneys Sunny A.M. Koshy and Philip H. Wehby. This is part of an on-going effort to curb violent crime in the public housing areas of Nashville and investigations are continuing.
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Leader of the Castro Enterprise Involved in Armed Home Invasions that Targeted Victims of Indian and Asian Ancestry Sentenced to PrisonRead the Press Release
A Texas woman was sentenced to 37 years in prison for her role as the leader of several robbery crews that traveled across the United States in order to conduct armed home invasions of families of Indian and Asian descent. Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Agent in Charge Steven M. D’Antuono of the FBI’s Detroit Field office made the announcement.
Chaka Castro, 44, of Houston, Texas, was sentenced by U.S. District Court Judge Laurie J. Michelson of the Eastern District of Michigan, who presided over the trial. After a five-week trial, Castro was convicted of one count of Racketeer Influenced and Corrupt Organizations (RICO) conspiracy, four counts of assault with a dangerous weapon in aid of racketeering and four counts of use of a firearm during and in relation to a crime of violence.
According to evidence presented at trial, from 2011 to 2014, Castro and her robbery crews committed a string of home invasions in Georgia, New York, Ohio, Michigan and Texas. The leader of the robbery crews was Castro, who would generate lists of robbery targets in various states around the county, specifically families of Asian and Indian ancestry, and then assign crews to carry out the armed robberies of these families within their homes. Once Castro assigned a crew to a particular area, members of the group would travel to that location, conduct surveillance and execute the robberies. The crews utilized a particular modus operandi in each of the robberies. They disguised their appearance with clothing and bandanas so that victims of their robberies would have difficulty identifying them. They would openly carry and brandish firearms to gain control of the victims and then immediately corral the victims, including children, into one location in the home. At least one robber would then restrain the victims with duct tape and threats of violence, as another partner would ransack the home in search of cash, jewelry and electronics to steal. The group organized their trips to involve multiple home invasion robberies over a series of days.
The FBI’s Ann Arbor Office investigated the case with the assistance of federal agencies including U.S. Immigrations and Customs Enforcement’s Homeland Security Investigations, U.S. Secret Service and local law enforcement agencies in Michigan, including Washtenaw County Sherriff’s Office, Ann Arbor Police Department and Canton Police Department; local law enforcement agencies in Ohio, including Beachwood Police Department; local law enforcement agencies in Georgia, including the Cobb County District Attorney’s Office, Cobb County Police Department, Gwinnett County Police Department, Duluth Police Department and Milton Police Department; local law enforcement agencies in New York, including Nassau County Police Department; the Tennessee Highway Patrol and local law enforcement agencies in Texas including Allen Police Department, Coppell Police Department, Flower Mound Police Department, Carrollton Police Department, Lewisville Police Department and Southlake Police Department.
Trial Attorneys Marianne Shelvey and Beth Lipman of the Criminal Division’s Organized Crime and Gang Section prosecuted the case.
Law Enforcement Authorities to Host 11th Annual Cybercrime Prevention Symposium for Educators, Parents and StudentsRead the Press Release
LOS ANGELES – The United States Attorney’s Office, the FBI, and a coalition of law enforcement agencies and community organizations today are hosting the 11th Annual Cybercrime Prevention Symposium at the California Endowment in downtown Los Angeles. The day-long seminar for more than 400 educators, parents, and middle and high school students will present a wide array of information on cyber safety, technology crime and digital reputation.
This year’s Symposium will address a wide range of cybercrime topics with law enforcement and community speakers conducting age-appropriate interactive discussions on issues including smartphone safety, online behavior, online exploitation, harassment and peer pressure of children and teens, digital reputation, cyberbullying, internet dangers, and sextortion.
Highlights of today’s Symposium will include a collaborative presentation by students from the Theatre Department at California State University, Northridge called “Improvising Online,” and the traditional lunchtime appearance of surprise celebrity guests from Disney television programs.
“Cyberspace has become a dangerous place for adults and children alike. It is incumbent on law enforcement to provide the community with the necessary skills to stay safe in this online world,” said United States Attorney Nick Hanna. “This important Symposium plays a vital role in presenting a variety of relevant approaches and tactics that will guide children and adults to safer online behavior.”
“Say ‘no’ to anyone who pressures you online for sexual images or information about yourself, and say something to a trusted adult if your information has been compromised,” said Paul Delacourt, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “We urge parents to monitor their child’s activity online, discuss the speed with which information spreads on the Internet, and ensure awareness of the life-altering consequences of making the wrong choices. Our annual Cyber Symposium in Los Angeles provides us an opportunity to teach hundreds of kids about the latest dangers targeting them online so that they can serve as ambassadors in their communities and help us prevent the ability of sexual predators to operate in cyberspace.”
Cybercrime Safety Challenge 2018-2019 awards will be presented at the Symposium to the winning schools from last year’s contest. The Technology and Research Award will be presented to Our Lady of Refuge School in Long Beach. The Impact Award will be given to St. Charles Borromeo School in North Hollywood, and the Creativity Award will be awarded to St. Thomas More School in Alhambra.
“The Archdiocese of L.A. is proud to be a partner in this ongoing and collaborative effort to keep young people safe online – we are especially grateful that students in our schools are taking what they learn at the symposium and transforming that knowledge into creative and impactful programs they then deliver at their parishes and schools,” said Heather T. Banis, Victims Assistance Ministry Coordinator for the Archdiocese of Los Angeles.
Student teams from each of the schools attending this year’s Symposium will be invited to participate in the 9th Annual Cyber safety Challenge. This contest asks students to develop a cyber safety program at their respective schools to educate the entire student body on the various risks associated with cybercrime. The contest promotes good cyber etiquette by challenging students to engage in creating the cyber safety programs. Students participating in this challenge will have their contest entries judged by a panel of experts, and the winning school will be announced in June 2020.
“With the ever emerging new frontiers of technology can also come peril,” said Los Angeles City Attorney Mike Feuer. “My office and our law enforcement partners continue to work tirelessly to keep our kids safe when they are online.”
Coming together under the umbrella of the Inter-Agency Council on Child Abuse and Neglect (ICAN), law enforcement agencies participating in this year’s Symposium include the United States Attorney’s Office, the FBI, the Los Angeles City Attorney’s Office, the Los Angeles County District Attorney’s Office, the Los Angeles County Sheriff’s Department and the Los Angeles Police Department - Internet Crimes Against Children Task Force (ICAC).
“Children growing up in this high tech age are being targeted by online predators at an alarmingly high rate,” said Deanne Tilton Durfee, Executive Director for the ICAN. “Each year, this Symposium provides participants with resources and tools to help children learn how to protect themselves and be safe in the cyber world, while enjoying all of the benefits of the fast-growing technologies.”
The Cybercrime Prevention Symposium is hosted this year by the Archdiocese of Los Angeles. The planning committee also includes representatives from Santa Monica-UCLA Medical Center, the Anti-Defamation League, Fox Entertainment Group, The Walt Disney Co., and Warner Bros. Entertainment.
Justice Department Welcomes Colorado Joining T-Mobile/Sprint SettlementRead the Press Release
Colorado is seeking to join the United States, Florida, Kansas, Louisiana, Nebraska, Ohio, Oklahoma and South Dakota in settling claims relating to the proposed merger of T-Mobile and Sprint, the Department of Justice announced today. The settlement requires a substantial divestiture package in order to enable a viable facilities-based competitor to enter the market. Further, the settlement will facilitate the expeditious deployment of multiple high-quality 5G networks for the benefit of American consumers and entrepreneurs.
“We are pleased that Colorado has left the New York and California litigation and is seeking to join our settlement,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “The merger, with the divestitures, will benefit Coloradoans and American consumers nationwide.”
The Department’s Antitrust Division and now eight co-plaintiff states have sued to block this transaction, and have agreed to settle the lawsuit based on the proposed settlement. That settlement, if approved by the court, would resolve the Justice Department’s and the co-plaintiff states’ competitive concerns.
Under the terms of the proposed settlement, T-Mobile and Sprint must divest Sprint’s prepaid business, including Boost Mobile, Virgin Mobile and Sprint prepaid, to Dish Network Corp., a Colorado-based satellite television provider. The proposed settlement also provides for the divestiture of certain spectrum assets to Dish. Additionally, T-Mobile and Sprint must make available to Dish at least 20,000 cell sites and hundreds of retail locations. T-Mobile must also provide Dish with robust access to the T-Mobile network for a period of seven years while Dish builds out its own 5G network.
T-Mobile US Inc. is a Delaware corporation headquartered in Bellevue, Washington. In 2018, T-Mobile posted revenues of more than $43 billion. Deutsche Telekom AG, a German corporation headquartered in Bonn, Germany, is the controlling shareholder of T-Mobile US Inc.
Sprint Corporation is a Delaware corporation headquartered in Overland Park, Kansas. In 2018, its posted revenue was over $32 billion. Sprint is controlled by SoftBank Group Corp., a Japanese Corporation headquartered in Tokyo, Japan.
Jennifer Dwyer Pleads Guilty to Embezzling over $2 Million from EmployerRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Jennifer Dwyer, 49, of St. Johnsbury, Vermont, pled guilty today in federal court to one count of wire fraud involving the embezzlement of approximately $2.2 million over a ten-year period from her Lyndonville employer, Northeast Agriculture Sales, Inc. (“NEAG”). U.S. District Judge Christina Reiss accepted Dwyer’s guilty plea and ordered her released pending sentencing. Sentencing is scheduled for February 11, 2020. At sentencing, Dwyer faces a maximum possible penalty of 20 years in prison. However, the sentence will be determined by the court with reference to the advisory U.S. Sentencing Guidelines.
According to the Indictment, NEAG is a family business established in 1987 with locations in Lyndonville, Vermont and Maine. Dwyer was NEAG’s bookkeeper from approximately 1998 to 2017. As bookkeeper, her responsibilities included customer billing, handling company accounts, and managing NEAG’s payroll system. By pleading guilty, Dwyer admitted that between 2007 and 2017, she embezzled approximately $2,221,079.47 from NEAG through unauthorized electronic transfers of funds from NEAG’s payroll account to her personal checking account. Dwyer used the misappropriated funds on on-line gambling and to pay personal debts and expenses.
As part of her plea agreement with the government, Dwyer stipulated that she embezzled $2.2 million dollars from NEAG, and that in doing so she abused a position of trust that allowed her to commit and conceal the embezzlement. The plea agreement obligates Dwyer to pay restitution of approximately $2.2 million to NEAG, and to make specified lump-sum restitution payments prior to sentencing. The plea agreement provides that should Dwyer fail to make those payments by the time of sentencing, specified items of personal property will be subject to forfeiture. As part of her agreement with the government, Dwyer has consented to the repossession and sale of a camper that she partially paid for with embezzled funds. She has further agreed to restitution payments equaling the value of her interest in two pick-up trucks and a tractor. Finally, Dwyer has agreed to pay restitution corresponding to the value of her interest in her home and land in St. Johnsbury.
The government previously forfeited Dwyer’s 2015 GMC Sierra 2500 truck as proceeds of the embezzlement. By agreement with the government, Dwyer also sold a 2016 Sea-Doo watercraft and trailer. The proceeds of the sale will be applied to restitution at the time of sentencing.
United States Attorney Christina E. Nolan noted: “Embezzlement by its very nature is a betrayal of trust. This family-owned Northeast Kingdom small business suffered a devastating loss and deception by a person it had employed for years. The U.S. Attorney’s Office is committed to rectifying such egregious wrongs and combatting large-scale frauds.”
“Plain and simple, this case is about greed and mistrust,” said James Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation. “Jennifer Dwyer chose to steal from the very people who gave her the opportunity to be a part of their family business. The FBI takes our responsibility very seriously to investigate and pursue those who commit fraud for personal gain and we will continue to work with our partners to hold them accountable.”
The Federal Bureau of Investigation conducted the investigation in this matter, with assistance from the Lyndonville Police Department.
This prosecution is being handled by First Assistant U.S. Attorney Kevin J. Doyle. Jennifer Dwyer is represented by Natasha Sen, Esq. of Brandon.
Ishpeming Woman Sentenced for CyberstalkingRead the Press Release
GRAND RAPIDS, MICHIGAN - Theresa Louise Harris, 56, of Champion, Michigan, was sentenced to serve 24 months in the Federal Bureau of Prisons for cyberstalking numerous victims in and around Marquette, Michigan. Chief U.S. District Judge Robert J. Jonker also imposed a two-year period of supervised release and a $10,000 fine.
From 2014 through August 2018, Harris continued a stream of harassment towards a former boyfriend and his family and friends consisting of thousands of unwanted contacts through spoofed phone calls, text messages, multiple fake Facebook accounts as well as many unsigned cards, letters and notes sent to the victim. Harris aided her harassment by hacking into multiple cell phone accounts and by creating fake social media accounts in the names of the victims and others. She collected personal information on the victims, including their social security numbers, dates of birth, and banking information. At sentencing, Harris apologized to the victim and his family and friends and acknowledged the harm that she had inflicted. Judge Jonker denied Harris’s request for leniency and observed that the persistent and pervasive conduct did not support a lesser sentence. As part of the sentence, Judge Jonker also ordered a mental health assessment and treatment for Harris.
U.S. Attorney Andrew Birge noted that October is Domestic Violence Awareness Month. “Cyberstalking is another form of mental and emotional abuse. The trauma inflicted can outlast physical scars. My Office is dedicated to protecting victims of domestic abuse, whether it manifests as physical assault or cyberstalking.”
The case was investigated by the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorneys Maarten Vermaat and Daniel Y. Mekaru.
END
Iowa Man Cannot Run Away from Prison Time for Dealing DrugsRead the Press Release
A man who trafficked meth in Iowa and had numerous prior criminal convictions was sentenced October 23, 2019, to 14 years in federal prison.
Chase Kincaid Secrist, age 26, from Mechanicsville, Iowa, received the prison term after a May 6, 2019, guilty plea to conspiracy to distribute controlled meth.
In a plea agreement, Secrist admitted he was part of a conspiracy to sell methamphetamine in Iowa in 2018. In September 2018, officers attempted to stop Secrist while he was driving. Secrist refused to stop and then led officers on a high-speed chase. The chase lasted 23 minutes. During the chase, Secrist threw a gun and meth from his car.
Secrist’s criminal history includes a felony child endangerment conviction and a felony burglary conviction. Secrist has also been convicted multiple times for operating cars without owners consent, trespass, public intoxication, voluntary absence, possession of marijuana, disorderly conduct, criminal mischief, leaving the scene of an accident, and absence from custody
Secrist was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Secrist was sentenced to 168 months’ imprisonment. Secrist must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Secrist is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and investigated by, the Tipton Police Department, Cedar County Sheriff’s Office, Muscatine County Drug Taskforce, and the University of Iowa Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-cr-122.
Follow us on Twitter @USAO_NDIA.
Informational Seminar Held in Asheville Aims to Educate Veterans and Those Who Serve About Scams and Financial FraudRead the Press Release
ASHEVILLE, N.C. – The U.S. Attorney’s Office for the Western District of North Carolina and the FBI, in partnership with the AARP NC in the Mountain Region, the Buncombe County Sheriff’s Office and the Land of Sky Regional Council, hosted an informational seminar today in Asheville, to educate veterans and those who serve about financial scams and how to prevent becoming victims of fraud, announced U.S. Attorney Andrew Murray.
Scammers are targeting veterans at an alarming rate. According to a 2017 study conducted by the AARP, U.S. military veterans are twice as likely as nonveterans to fall victims of financial fraud. Of those surveyed, 80 percent of veterans reported being the target of a scam related to their military service.
Examples of financial fraud targeting veterans which were discussed during this morning’s informational session are:
- Benefits fraud and scams promoting secret” government benefits programs.
- Scams related to military records.
- Fundraising for fake military/veterans charities.
- Scams involving Veterans Affairs (VA) loans.
- Bogus investment schemes targeting older veterans to help “boost” their pensions.
- Identity theft.
“As a Coast Guard veteran, I am enraged that scammers are looking to get rich at the expense of our veterans and those currently serving our country. We have a responsibility to protect our brave servicemen and women and their families from financial exploitation and financial peril caused by scam artists. I want to thank the FBI, the AARP, the Buncombe County Sheriff’s Office, and Land of Sky Regional Council for partnering with us in this important mission. It’s time to take action and stop the fraud,” said U.S. Attorney Murray.
“AARP has a long history of safeguarding Americans’ financial security. We are proud to work with partners to empower those who have protected our country with the knowledge that they can use to protect themselves from frauds and scams that target veterans and their loved ones from their guaranteed benefits,” said Rebecca Chaplin, Associate State Director with AARP.
“The Area Agency on Aging at Land of Sky Regional Council was happy to partner with the Department of Justice/U.S. Attorney’s Office for the Western District of North Carolina, the FBI, and AARP to host this event. One of our goals is to reduce the criminal victimization of older adults and caregivers, including veterans. We want to decrease unwarranted fear and crime and improve the safety and quality of life for all. We do this through outreach opportunities as education is the key to prevention,” said LeeAnne Tucker, Director of the Area Agency on Aging.
Below are some tips shared with participants during the seminar on how to avoid falling victim to a financial scam:
- Don’t share personal information such as your social security number, with anyone you don’t know.
- Don’t pay a fee for obtaining your military records.
- Don’t be lured by “special deals” available only to veterans.
- Delete phishing emails and ignore harassing phone calls.
- Don’t give cash upfront in exchange for future pension payments.
- Don’t fall for a high-pressure sales pitch or a lucrative business deal.
- If a scammer approaches you, take the time to talk to other service members, or a family
member.
- Keep in mind that if you send money once, you’ll be a target for life.
- A good rule of thumb is, if it’s too good to be true, it’s likely a scam.
* * *
In March 2019, the U.S. Attorney’s Office and the FBI announced the Western District’s Elder Justice Initiative, which aims to combat elder financial exploitation by expanding efforts to investigate and prosecute financial scams that target seniors; educate older adults on how to identify scams and avoid getting ripped off by scammers; and promote greater coordination with law enforcement partners.
U.S. Attorney Murray thanked the FBI, the AARP, the Buncombe County Sheriff’s Office, and the Land of Sky Regional Council for their assistance in organizing today’s seminar.
For more information about the U.S. Attorney’s Office Elder Justice Initiative, please visit: https://www.justice.gov/usao-wdnc/elder-justice-initiative.
To view our Public Service Announcement, please visit: https://youtu.be/qBGGAA7Mxbo
Indictments Unsealed Alleging Pay-To-Play Bribery Scheme by Manager, Trucking Companies at Utah FedEx Ground HubRead the Press Release
SALT LAKE CITY – Four indictments unsealed in U.S. District Court Monday afternoon allege several trucking companies in Utah paid more than $1 million in bribes to the Utah FedEx Ground hub manager as a part of a scheme to exploit the employee’s position within FedEx Ground (FXG) to make the trucking businesses as lucrative as possible. Ten individuals are charged in the indictments.
Announcing the indictments today are U.S. Attorney for Utah John W. Huber, Special Agent in Charge Paul Haertel of the FBI’s Salt Lake City Field Office, Special Agent in Charge Tara Sullivan of IRS-Criminal Investigation, Special Agent in Charge Jeffrey Dubsick of the U.S. Department of Transportation Office of Inspector General, and Michael Mentavlos, Special Agent in Charge of the Defense Criminal Investigative Service’s Southwest Field Office.
According to charging documents, FXG operates approximately 39 hubs or distribution centers to move packages around the country. One of the hubs is located in North Salt Lake City in Utah. FXG contracts with local trucking companies to transport packages on behalf of the company. Ryan Lee Mower, age 47, of Bountiful, was FXG’s highest-ranking employee in Utah from at least 2008 to October 2019. His primary responsibilities included overseeing the FXG contract service providers and ensuring that each local trucking company complied with FXG policies and regulations.
One of the four indictments, for example, alleges that by fraudulently obtaining runs, allowing unauthorized runs to continue, boosting miles and receiving payment for “ghost runs,” falsely reporting accidents, and falsely reporting miles to gain income – among other things, five co-conspirators received approximately $150 million in FedEx Ground revenue and paid $300,000 in bribes to Mower.
“Fair play, honest dealings, and transparency are core values in the American business landscape. Bribery and corrupt practices are not,” said U.S. Attorney John W. Huber. “The conduct alleged in the indictment not only runs counter to societal expectations for American business, it runs afoul of the laws of the United States. The alleged unjust enrichment comes at the expense of those who play by the rules in the market place.”
"These individuals allegedly exchanged bribes for business opportunities, and, as a result, lined their pockets with hundreds of millions of dollars spent on property, luxury cars, and other extravagances," said Paul Haertel, Special Agent in Charge of the FBI's Salt Lake City Field Office. "The FBI will never turn a blind eye to those who operate fraudulently because legitimate businesses should be allowed to compete on fair and level playing fields. The FBI is thankful for the collaboration of our law enforcement partners and the cooperation of FedEx to secure these indictments and arrests."
Tara Sullivan, Special Agent in Charge for IRS-Criminal Investigation said, “Ryan Mower allegedly received more than $1million in illegal income, which he did not claim on his tax returns, by taking bribes to provide an unfair advantage to other trucking companies. IRS Criminal Investigation is proud to assist its law enforcement partners in utilizing our unique financial investigative experience.”
“Maintaining public safety on our nation’s highways is paramount to protecting our families our economy and our way of life,” stated Jeffrey Dubsick, regional Special Agent-in-Charge of the U.S. Department of Transportation Office of Inspector General. “Motorists expect and deserve the highest standards of safety from trucking companies whose business is transporting goods on taxpayer-funded roads. The arrests in this case demonstrate our commitment to protecting the traveling public from commercial operators allegedly content with placing profit over public safety through actions that undermine important DOT regulations.”
"The Defense Criminal Investigative Service (DCIS) will aggressively pursue allegations of fraud and corruption impacting the Department of Defense (DoD)," stated Michael Mentavlos, Special Agent in Charge, Southwest Field Office. "Along with our Law Enforcement partners, DCIS is committed to safeguarding the integrity of precious taxpayer resources and will exhaust all appropriate criminal, civil and administrative actions against those individuals that choose to defraud the government and the DoD."
U.S. v Tuchinsky, Mower, et al
Six individuals are charged in one indictment with 16-counts of wire fraud conspiracy, promotional money laundering, and money laundering in connection with a 10-year conspiracy the indictment alleges started in 2009.
Charged in this indictment are Yevgeny Felix Tuchinsky, age 59, who has resides in Salt Lake City and San Diego, Alexsander Vasiliyevich Barsukov, age 52, of Salt Lake City, Konstantin Mikhaylovich Tomilin, age 50, who has homes in Salt Lake City and Pennsylvania, Leonid Isaakovich Teyf, age 58, of Raleigh, North Carolina, Felix Tsipelzon, age 48, of South Jordan, and Mower.
Five of the defendants were involved in some way with Salt Lake Trucking Group (SLTG). SLTG Ground is comprised of several trucking companies that contract to carry packages for FedEx Ground.
The indictment alleges the co-conspirators used Mower’s position to game FXG’s process governing the awarding of new runs and that Mower helped the co-conspirators grow their business larger than FXG allowed by submitting false information to FXG. Using Mower’s position, the co-conspirators falsified mileage reports and, on occasion, Mower would inflate or boost the number of weekly miles driven by one or more of the co-conspirators’ companies. Additionally, the trucking companies received payments from FXG for “ghost routes” never actually run by a trucking company, the indictment alleges.
The Salt Lake Trucking Group received about $150 million in FXG revenue during the approximate 10-year period of the conspiracy. During that same period, the indictment alleges the co-conspirators paid approximately $300,000 in bribes to Mower.
US v Ugarte and Mower
Hubert Ivan Ugarte, age, 52, of Draper and Mower are charged with four counts of wire fraud and six counts of money laundering in connection with the alleged bribery scheme. Ugarte owned and operated several trucking companies.
The indictment alleges that by fraudulently obtaining assigned runs, obscuring business ownership and growth, covering up failed contractual performances, and falsely reporting miles to gain unearned income, Ugarte’s companies received approximately $90 million in FXG revenue over the past eight years and paid Mower at least $490,000 in bribes, according to the indictment.
US v Kovacevic, Mower, et al
Davor Kovacevic, age 41, and Zlate Balulovski, age, 41, of West Jordan and Mower are charged with seven counts of wire fraud and three counts of money laundering in an indictment alleging that around April 2012, Kovacevic and Balulovski began bribing Mower. In exchange, Kovacevic and Balulovski asked for and received favors, preferential treatment, and assistance in defrauding FXG.
Kovacevic and Balulovski own and operate several trucking companies in Utah.
According to the indictment, the defendants used Mower’s position to game FXG’s process governing the awarding of new truck routes to FXG contract service providers, to falsify or boost mileage reports so that FXG paid the defendants’ companies more than they were entitled to, and to receive payments for “ghost routes” or runs never actually run by a trucking company.
As a result of the fraud, the indictment alleges the defendants’ companies received approximately $21,373,873 in FXG net revenue over the past seven and a half years and paid Mower approximately $165,000 in bribe payments.
US v Murdock and Mower
William Shayne Murdock, age 42, of Providence, Utah, and Mower are charged in a 10-count indictment with wire fraud, promotional money laundering, concealment money laundering, and money laundering. Murdock owns several trucking companies in Utah. Sometime around February 2014, Murdock began paying Mower bribes. In exchange, Murdock asked for and received favors and assistance in defrauding FXG, according to the indictment.
Fox example, at some time in 2014, one of Murdock’s trucking companies was awarded a FedEx freight run from Salt Lake City to Pennsylvania to Memphis. The indictment alleges Mower determined that based on FXG policies, he should have posted this run as an assigned run so that other contracted service providers could compete for the run. Mower did not post the run. He allowed Murdock trucking companies to operate the unauthorized assigned run for about five years.
By fraudulently obtaining assigned runs, obscuring business ownership and growth, and falsely reporting miles to gain unearned income, Murdock’s companies received about $19 million in FXG revenue over the past five years. During that period, Murdock paid bribes to Mower of at least $50,000.
US v Mower
Mower is charged with five counts of filing false tax returns in a Felony Information unsealed Monday. The charges allege Mower failed to include income in individual income tax returns he filed for several tax years. For example, in February 2016, he filed a return stating that his adjustable gross income for the 2015 tax year was $112,113, knowing he had received at least $223,088.54 in additional income. In a return for tax year 2016, he reported income of $111,835 when he knew that he had received at least $348,877.85 in additional income.
Seizures
In addition to the criminal charges, the United States obtained seizure warrants to deprive the defendants of the profits of their alleged criminal conduct by seizing 25 pieces of real property, 60 bank accounts, investments, cars, boats, snowmobiles, motorcycles, ATVs, trailers, jewelry and firearms. Items seized during a case are held while the case is litigated. The process is finalized with a forfeiture order signed by the Court.
Arrests/court hearings
Balulovski, Kovacevic, Barsukov, Tsipelzon, Tomilin and Murdock were arrested Friday and have initial appearances Monday afternoon in federal court. An arrest warrant has been issued for Ugarte. Mower has been issued a summons for an initial appearance Wednesday. Tuchinsky was arrested in San Diego Friday. A detention hearing has been set for Tuesday at 9:45 a.m. in San Diego. Teyf is in federal custody in North Carolina in an unrelated case.
The potential maximum penalty for wire fraud conspiracy/wire fraud is 20 years in prison. Promotional money laundering and concealment of money laundering counts each have potential 20-year sentences. The potential sentence for money laundering is up to 10 years in prison. Filing a false tax return has a potential maximum sentence of three years per count.
Indictments are not findings of guilt. Defendants charged in indictments are presumed innocent unless or until proven guilty in court.
Illinois State Representative Charged with Offering Bribe to Fellow Lawmaker in Return for Support of LegislationRead the Press Release
CHICAGO — Illinois State Rep. LUIS ARROYO has been charged in federal court with offering a bribe to a fellow state lawmaker in an effort to influence and reward the lawmaker for supporting legislation that would benefit Arroyo’s private lobbying client.
Arroyo, 65, of Chicago, is charged with one count of federal program bribery, according to a criminal complaint and affidavit filed in U.S. District Court in Chicago. Arroyo made an initial court appearance this morning before U.S. Magistrate Judge Maria Valdez and was ordered released on a personal recognizance bond. The next court date was not immediately set.
The complaint was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI; and Kathy A. Enstrom, Special Agent-in-Charge of the Chicago office of the IRS Criminal Investigation Division. The government is represented by Assistant U.S. Attorneys Christopher Stetler and James Durkin.
Arroyo has represented the 3rd District in the Illinois House of Representatives since 2006. He has also managed Spartacus 3 LLC, a private lobbying firm in Chicago.
According to the complaint, on Aug. 2, 2019, Arroyo offered to pay $2,500 per month to an Illinois state senator in return for the senator’s support of sweepstakes-related legislation that would benefit one of Arroyo’s lobbying clients. On Aug. 22, 2019, Arroyo met with the senator at a restaurant in Skokie and provided him a check for $2,500 as an initial payment, with the expectation that additional payments would be made for the next six to 12 months, the complaint states. The check was made payable to a nominee of the senator for the purpose of concealing the illicit payment, the complaint states.
Federal program bribery is punishable by up to ten years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines. The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Illegal Alien Pleads Guilty to Unlawful Return After RemovalRead the Press Release
Gulfport, Miss. – Benjamin Sanchez-Perez, 28, an illegal alien from Mexico, pled guilty today before U.S. District Judge Louis Guirola, Jr., to unlawful return of an alien after removal, announced U.S. Attorney Mike Hurst, Jere T. Miles, Special Agent in Charge of U.S. Immigration & Customs Enforcement's Homeland Security Investigations (HSI) in New Orleans, and Gregory K. Bovino, Chief Patrol Agent of the Border Patrol’s New Orleans Sector.
Sanchez-Perez will be sentenced by Judge Guirola on January 28, 2020, at 10:00 a.m. He faces a maximum penalty of two years in prison and a $250,000 fine, as well as Department of Homeland Security removal proceedings.
On September 12, 2019, an agent with the Harrison County Sheriff’s Department Interdiction Unit conducted a traffic stop on Interstate 10. Indicators of illegal alien smuggling were detected and a Border Patrol Agent was called to assist. Agents made contact with the driver of the vehicle and the front seat passenger, who was the driver’s husband. Among the passengers in the vehicle were three men, including Sanchez-Perez, who were determined to be illegal aliens to the United States who had returned after being formally removed. All vehicle occupants were transported to the Border Patrol Station in Gulfport, for further processing and investigation.
An HSI Special Agent and an HSI Task Force Agent arrived at the station to assist with the investigation. Sanchez-Perez was determined to have entered the United States through Nuevo Laredo, Mexico, about four days before his arrest in Mississippi. Further investigation revealed that Sanchez-Perez had been previously removed from the United States on March 28, 2019, through Miami, Florida. At the time of his removal, Sanchez-Perez was prohibited from entering, attempting to enter, being in the United States, or applying for admission to the United States, for at least five years.
U.S. Attorney Hurst praised the cooperation exhibited by the U.S. Department of Homeland Security, Homeland Security Investigations, the U.S. Border Patrol, and the Harrison County Sheriff’s Department. Assistant U.S. Attorney Stan Harris is the prosecutor for the case.
Houston man heads to prison for committing two bank robberiesRead the Press Release
HOUSTON – A 34-year-old man has been ordered to federal prison following his conviction of robbing two banks in the Houston area, announced U.S. Attorney Ryan K. Patrick. William Jeffery Ellis pleaded guilty July 29.
Today, U.S. District Judge Andrew S. Hanen ordered him to prison for 46 months as to each count to run concurrently and to be immediately followed by three years of supervised release.
Authorities identified Ellis as the perpetrator of two robberies – Smart Financial on E FM 1960 in April 2019 and Comerica Bank on W FM 1960 the previous month.
In each of the robberies, an unarmed Ellis demanded money using a threatening note taped to his backpack. The employees complied because they were frightened.
The FBI and Harris County Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Jennie Basile is prosecuting the case.
This is an example of coordination between law enforcement who are part of the Houston Law Enforcement Violent Crime Initiative which combines personnel and resources from numerous federal, state and local agencies. The goal is to proactively fight and reduce violent crime across the Greater Houston area by targeting the region’s most violent offenders, augmenting investigative and prosecutorial efforts, and enhancing training, public awareness and education.
The case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.
Harrison County man sentenced to 10 years for methamphetamine distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Rex Allen Rowan, II, of Clarksburg, West Virginia, was sentenced today to 120 months incarceration for distributing methamphetamine, U.S. Attorney Bill Powell announced.
Rowan, age 31, pled guilty to one count of “Possession with the Intent to Distribute Methamphetamine” in May 2019. Rowan admitted to distributing more than 50 grams of crystal methamphetamine in September 2018 in Harrison County.
Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and explosives and the Clarksburg Police Department investigated.
U.S. District Judge Thomas S. Kleeh presided.
Greensburg Physician Pleads Guilty to Drug Distribution, Health Care Fraud and Money LaunderingRead the Press Release
PITTSBURGH – A Greensburg physician pleaded guilty in federal to three counts of distribution of buprenorphine, a Schedule III controlled substance, outside the usual course of professional practice; one count of health care fraud; and one count of money laundering, United States Attorney Scott W. Brady announced today.
Nabil Jabbour, 68, a physician who previously operated an addiction-medicine practice out of offices in Greensburg and Connellsville, Pennsylvania, pleaded guilty before United States District Judge Arthur J. Schwab.
During his plea hearing, Jabbour admitted that on three occasions between July 2016 and December 2016 he unlawfully prescribed buprenorphine to undercover law enforcement officers. Buprenorphine is commonly used in the treatment of patients suffering from opioid addiction, and it is sold under the trade names Suboxone, Subutex, or Zubsolv. As Jabbour acknowledged, none of the undercover officers to whom he prescribed buprenorphine suffered from opioid use disorder. Jabbour further admitted that he did not accept insurance from his patients, requiring instead that they pay him in cash—typically $100 for an initial office visit and $80 for each subsequent visit. Although Jabbour did not accept insurance, he admitted that he caused Medicare and Medicaid, two government-funded health benefit programs, to cover the costs of fraudulent buprenorphine prescriptions that he wrote for his patients. Finally, Jabbour pleaded guilty to one count of money laundering based on a transaction he initiated at the Meadows Casino in July 2016 involving $13,960 in cash derived from his unlawful distribution of buprenorphine.
Pursuant to a written plea agreement, the defendant also accepted responsibility for unlawfully distributing buprenorphine on fourteen additional occasions, maintaining his office locations in Greensburg and Connellsville as drug-involved premises, and laundering cash from his buprenorphine practice, in the form of cash transactions exceeding $10,000, at the Meadows Casino during four additional trips to the casino. The defendant also agreed that he was responsible for between 10,000 and 20,000 doses of unlawful buprenorphine prescriptions, and that he caused losses to Medicare and Medicaid of up to $40,000.
Sentencing has been set for March 2, 2020, at 10 a.m.
Jabbour faces a maximum sentence of ten years’ imprisonment and a fine of $500,000 for each distribution count, a maximum sentence of 10 years’ imprisonment and a fine of $250,000 for the health care fraud charge, and a maximum sentence of 10 years’ imprisonment and a fine of $250,000 for the money laundering charge. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Eric G. Olshan is prosecuting this case on behalf of the government.
The investigation leading to the filing of charges in this case was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit, which combines personnel and resources from multiple federal and state agencies to combat the growing prescription opioid epidemic, including the Drug Enforcement Administration, Pennsylvania Office of Attorney General – Medicaid Fraud Control Unit, Internal Revenue Service – Criminal Investigation, and U.S. Department of Health and Human Services – Office of Inspector General. The Pennsylvania State Police, the Pennsylvania Office of the Attorney General – Narcotics Unit, Greensburg City Police, South Greensburg Police, and Westmoreland County Sheriff’s Office also provided assistance during the investigation and prosecution of Jabbour.
Fort Wayne Man Sentenced To15 Years in PrisonRead the Press Release
FORT WAYNE – Scott Trischler, age 25, of Fort Wayne, Indiana was sentenced before U.S. District Court Judge Holly A. Brady upon his plea of guilty of sexual exploitation of a minor, announced U.S. Attorney Kirsch.
Trischler was sentenced to 180 months in prison followed by 5 years of supervised release, and a special assessment of $5,100 was also imposed.
According to documents in this case, Trischler communicated with a victim who was 12 years of age while he was playing with her as an administrator of an online game. He continued to communicate with the victim after finding out his/her age and after the victim’s parents attempted to stop the communication. He encouraged the victim to communicate with him on other online platforms and began engaging in sexually explicit communications. He was also able to convince the victim to send digital still and video images that were sexually explicit which he saved to his phone and eventually transferred to his computer.
The initial charges were filed and handled by the US Attorney’s office in the Eastern District of California, Fresno Office, and the defendant was arrested and pled guilty here in the Northern District of Indiana. The case was investigated by FBI in the Sacramento California Division, along with the Madera County Sheriff’s Department, and these law enforcement entities received assistance from the Fort Wayne Resident Office of the FBI, including members of its Violent Crimes Against Children (VCAC) Task Force Officers. The case was handled by Assistant United States Attorney Stacey R. Speith.
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Fort Wayne Man Sentenced to 78 Months in PrisonRead the Press Release
FORT WAYNE – Shea Smith, age 48, of Fort Wayne, Indiana was sentenced before U.S. District Court Judge Holly A. Brady upon his plea of guilty of receipt of material depicting the sexual exploitation of minors, announced U.S. Attorney Kirsch.
Smith was sentenced to 78 months in prison followed by 5 years of supervised release and was ordered to forfeit the items involved in the commission of the offense.
According to documents in this case, from approximately July 2014 through July 2017, Smith received materials depicting the sexual exploitation of minors. In his plea agreement, Smith agreed to forfeit the following items: desktop computers, laptop computers, a camera and a hard drive.
The case was investigated by FBI’s Violent Crimes Against Children (VCAC) Task Force. The case was handled by Assistant United States Attorney Lesley J. Miller Lowery.
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Former Postal Service Employee Sentenced to 11 Years in Prison for Scheme in Which USPS Trucks Were Robbed at GunpointRead the Press Release
LOS ANGELES – A former United States Postal Service employee was sentenced today to 132 months in federal prison for participating in two armed robberies and one theft of USPS trucks carrying cash – incidents that caused nearly a quarter million dollars in losses and significant trauma to one of its victims who later took his own life.
William Crosby IV, 33, of Inglewood, was sentenced this morning by United States District Judge S. James Otero, who also ordered Crosby to pay $238,457 in restitution.
On July 31, Crosby pleaded guilty to one count of robbery of United States property and one count of brandishing a firearm in furtherance of a violent crime.
Between August 2017 and March 2018, while a USPS employee, Crosby conspired with others to plan two armed robberies and a theft of USPS trucks carrying cash. The armed robberies and theft caused cash losses of $238,457, Crosby admitted in his plea agreement.
“These violent episodes left lasting impressions on the (victim) USPS drivers, including one, who according to his loved ones and his supervisor, suffered extreme emotional trauma after the robbery before he apparently tragically took his own life,” prosecutors wrote in the government’s sentencing memorandum.
Crosby is a former acting USPS supervisor and knew when the agency transported cash generated from the sale of money orders and USPS merchandise – information that is not known to all of its employees, according to court documents.
On August 1, 2017, Crosby signaled to his co-conspirators that a USPS truck carrying a large amount of cash was on the loading dock at the Dockweiler Post Office in South Los Angeles. A co-conspirator wearing a USPS shirt walked onto the loading dock and stole a container inside the truck that contained approximately $128,236 in cash.
On February 1, 2018, Crosby – who then was assigned to the Wagner Post Office in Los Angeles near the city boundary with Inglewood -- provided information to co-conspirators that a USPS truck carrying cash was leaving the facility. During the robbery, in which Crosby acted as a lookout, a minivan blocked the USPS truck just outside the Wagner Post Office, the robber threatened the truck driver at gunpoint, and the robber stole $37,658 in cash.
On March 1, 2018, while Crosby was taking sick leave without pay from his job at the Wagner Post Office, he again conspired to rob a post office, this time the Dockweiler Post Office, where he previously worked. Less than one hour before the robbery, Crosby parked at a grocery store parking lot across the street from the Dockweiler Post Office in a spot where he could see the post office’s loading dock area.
After the USPS truck left the facility, Crosby, along with his co-conspirators, followed the truck, according to the plea agreement. Crosby’s co-defendant -- his half-brother, Myron Crosby, 28, of Athens -- used a rented a Mercedes-Benz SUV to box in the USPS truck as it exited the southbound 110 Freeway at Slauson Avenue. At that time, another co-conspirator exited another vehicle, brandished a gun to control the USPS driver, and stole $72,563 in cash.
Myron Crosby pleaded guilty on August 19 to one count of robbery of United States property. Myron Crosby’s sentencing hearing is scheduled for November 25, at which time he will face a statutory maximum sentence of 25 years in federal prison.
This matter was investigated by the United States Postal Inspection Service and the United States Secret Service.
The case is being prosecuted by Assistant United States Attorneys Thomas F. Rybarczyk of the Public Corruption and Civil Rights Section and Jeffrey M. Chemerinsky of the Violent and Organized Crime Section.
Former Pittsburgh Man Pleads in Conspiracy to Traffic Heroin, Fentanyl and Fentanyl AnalogRead the Press Release
PITTSBURGH, PENNSYLVANIA – A former resident of Pittsburgh, Pennsylvania has pleaded guilty to charges of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
Daniel Espy, age 35, pleaded guilty to conspiracy to possess with the intent to distribute heroin, possession with intent to distribute heroin, furanyl fentanyl, and fentanyl, and possession with the intent to distribute heroin before United States District Judge Marilyn S. Horan. Judge Horan scheduled sentencing for February 18, 2020. The defendant was detained after his initial appearance in federal court and will remain detained pending sentencing.
According to information presented to the court, from November 2016 to April 2017, Espy conspired with other individuals to acquire heroin to distribute in Allegheny County. On March 3, 2017, during an investigation by City of Pittsburgh Bureau of Police Narcotics and Vice Division and the DEA, investigators stopped Espy in a car in which a mixture of fentanyl and fentanyl analogues was recovered. On April 4, 2017, investigators recovered a large amount of heroin from a stash location used by Espy and other co-conspirators in the City of Pittsburgh. Laboratory testing revealed that the packaging for that heroin contained Espy’s fingerprints.
Espy faces a maximum total sentence of not more than 30 years in prison, a fine of not more than $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case on behalf of the government.
City of Pittsburgh Bureau of Police – Narcotics and Vice Division, the Drug Enforcement Agency, and the Pennsylvania Attorney General’s Office conducted the investigation leading to the plea in this case.
Former Monessen School Bus Driver Pleads Guilty to Possessing Videos Showing the Sexual Exploitation of ChildrenRead the Press Release
PITTSBURGH - A resident of Monessen, Pennsylvania, pleaded guilty in federal court to a charge of possession of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
Jack Brian LaForte, age 55, pleaded guilty to one count before Senior United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that the investigation into LaForte began when Homeland Security Investigations received information about an upload of a child pornographic material from an IP address that resolved to LaForte’s Monessen residence. On or about June 14, 2019, law enforcement seized various electronics during the execution of a search warrant at the residence, including a laptop computer. A forensic review the laptop revealed videos depicting the sexual exploitation of minors, including of prepubescent minors who had not attained 12 years of age. The videos discovered by law enforcement included depictions of the lewd and lascivious display of the minors’ genitals; the penetration of minors by adults; and minors engaging in oral sex with adults.
Judge Schwab scheduled sentencing for March 17, 2019. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued defendant on bond.
Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government.
Homeland Security Investigations conducted the investigation that led to the prosecution of LaForte.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former City of Pittsburgh Police Officer Sentenced for Making False Statements to Federal AgentsRead the Press Release
PITTSBURGH, PA – A former City of Pittsburgh Police Officer and resident of Allegheny County was sentenced in federal court to one year of probation with 90 days of home detention for his conviction on two counts of making false statements to government agents, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Arthur J. Schwab imposed the sentence on Antoine Cain, age 50. According to information presented to the Court, Mr. Cain, who was a 25-year veteran police officer for the City of Pittsburgh at the time, provided false information on two occasions to federal agents in the course of a federal investigation into an armed bank robbery that occurred in January of 2018 at the Citizens Bank in Crafton, PA.
Despite knowing the identity of the individual who had robbed the bank – that is, Brent Richards, who is the son of Melissa Kane, the woman with whom Mr. Cain was in a relationship – on two separate occasions in July of 2018, when questioned by federal agents, Cain denied knowing who had robbed the bank. It was not until he was confronted a third time by federal agents, in September of 2018, and informed by those agents that they had information that he did know the identity of the bank robber, that Cain admitted that he knew Brent Richards had robbed the bank and failed to tell federal agents on the two previous occasions that he had spoken with them. Specifically, Cain admitted that Brent Richards told him that he had "hit" a bank, which Cain understood to mean that Brent Richards had committed a bank robbery, and Melissa Kane told him that Brent Richards had robbed the Citizens Bank, wearing a mask and using a bb gun and that Brent Richards had been covered up so law enforcement could not prove that it was Brent Richards who had robbed the bank.
Both Ms. Kane and Mr. Richards have plead guilty in federal court in their respective cases and are awaiting sentencing.
Assistant United States Attorneys Rebecca L. Silinski and Eric G. Olshan prosecuted this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Antoine Cain.
Drug Felon on Federal Supervised Release Will Spend 3+ Years in Prison for Illegally Possessing and Handgun and AmmunitionRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to three years and one month (37 months) in prison and three years supervised release on his conviction of violating the federal narcotics laws, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Arthur J. Schwab imposed the sentence on Kedren Broadus, age 36, of Pittsburgh, Pennsylvania.
According to information presented to the court, on or about November 13, 2017, Pittsburgh Bureau of Police Officers pulled over a vehicle in which Broadus was a passenger. Broadus is individual with a prior felony conviction for Possession with Intent to Distribute Cocaine Base, and he was on federal supervised release at the time of this offense. At the traffic stop, Broadus fled on foot, and he dropped a.40 caliber Glock 23 handgun during the chase. When the police eventually apprehended Broadus, he had additional ammunition in the backpack he was carrying. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm or ammunition.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
United States Attorney Brady commended the Pittsburgh Bureau of Police and the Federal Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation leading to the successful prosecution of Broadus. This case was prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
Detroit Man Pleads Guilty to Federal Drug ConspiracyRead the Press Release
HUNTINGTON, W.Va. – A Detroit, Michigan man pled guilty today to a federal drug conspiracy charge, announced United States Attorney Mike Stuart. Gerald Robinson, 26, entered a guilty plea to an indictment charging him with conspiracy to possession with intent to distribute oxycodone and Xanax.
“Too many pill peddlers have traveled to West Virginia from Detroit,” said United States Attorney Mike Stuart. “We are working with law enforcement partners across jurisdictional borders to identify and prosecute out-of-state drug dealers that bring drugs into our communities.”
Robinson admitted that in April 2017 he came to Huntington, West Virginia with the intent to distribute oxycodone and Xanax. Officers conducted a traffic stop on the vehicle Robinson was a passenger in on Interstate 64. Officer located over 200 oxycodone pills and 53 Xanax pills.
Robinson faces up to twenty years in federal prison when he is sentenced on February 3, 2020.
The investigation was conducted by the Violent Crime and Drug Task Force West.
The plea hearing was held before United States District Judge Robert C. Chambers. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
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Detroit Home Health Owner Sentenced to Prison for Role in $1.5 Million Medicare Kickback SchemeRead the Press Release
The owner of a Michigan home health agency was sentenced today to 60 months in prison for his role in a scheme involving approximately $1.5 million in Medicare claims for home health services that were procured through the payment of illegal kickbacks.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Matthew Schneider of the Eastern District of Michigan, Special Agent in Charge Steven M. D'Antuono of the FBI’s Detroit Division and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office made the announcement.
Atheir Amarrah, 44, of West Bloomfield, Michigan, the owner of Prompt Care Home Health Services Inc. of West Bloomfield, Michigan, was sentenced by U.S. District Judge Judith E. Levy of the Eastern District of Michigan, who also ordered him to pay approximately $1 million in restitution, jointly and severally with his co-conspirators. In May 2018, Amarrah pleaded guilty to one count of conspiracy to defraud the United States and pay and receive health care kickbacks in connection with a federal health care program and to four counts of paying health care kickbacks.
As part of his guilty plea, Amarrah admitted that he paid illegal kickbacks to recruiters in exchange for Medicare beneficiary referrals and billed Medicare for claims procured through these illegal kickbacks. According to court documents, Amarrah caused a loss of over $1 million to the Medicare program by submitting claims to Medicare from 2013 through 2017 related to Medicare beneficiary information that he obtained by paying illegal kickbacks.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. Trial Attorneys Howard Locker and Jay McCormack, Assistant Chief Jacob Foster, and Counsel to the Chief of the Health Care Fraud Unit Amy Markopoulos of the Fraud Section prosecuted the case. Assistant U.S. Attorney Paul Kuebler of the Eastern District of Michigan handled the asset forfeiture proceedings.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Departments of Justice and Housing and Urban Development Sign Interagency Memorandum on the Application of the False Claims ActRead the Press Release
Attorney General William P. Barr and Housing and Urban Development (HUD) Secretary Ben Carson today issued a Memorandum of Understanding (MOU) between the two agencies that sets prudential guidance on the appropriate use of the False Claims Act (FCA) for violations by Federal Housing Administration (FHA) lenders.
“This MOU sets forth a robust and collaborative process for deciding when to pursue False Claims Act cases to remedy material and knowing FHA violations,” said Attorney General Barr. “DOJ and HUD will work together to determine when HUD’s administrative remedies are sufficient, or other recourse is appropriate, to address harm to the borrower, the taxpayer, or the government. Importantly, this MOU is the product of the excellent working relationship that has developed between our two agencies in our shared pursuit of greater clarity and fairness.”
“This agreement clearly outlines our FHA mortgage program requirements, so they do not impede or discourage lenders from offering affordable FHA-insured loans to credit-worthy borrowers,” said Secretary Carson. “In taking these steps, we are fulfilling an important element our Housing Finance Reform Plan and making clear to all responsible lenders that FHA’s mortgage program is a program they should participate in. At the same time, HUD will not tolerate irresponsible or fraudulent lenders who defraud borrowers and taxpayers. We are thankful for the excellent relationship we have with our colleagues at the Department of Justice who have worked diligently with us on this effort and share our goal of advancing affordable housing finance while protecting the interests of taxpayers.”
As the MOU makes clear, HUD expects that FHA requirements will be enforced primarily through HUD’s administrative proceedings, but the MOU specifically addresses how HUD and DOJ, including the U.S. Attorneys’ Offices, will consult with each other regarding use of the FCA in connection with defects on mortgage loans insured by FHA. HUD will utilize the Mortgagee Review Board (MRB), which was created by statute and empowered to take certain actions for non-compliance by FHA lenders, to review and refer FCA claims. The MOU prescribes the standards for when HUD, through the MRB, may refer a matter to DOJ for pursuit of FCA claims, and also sets forth how DOJ and HUD will cooperate during the investigative, litigation, and settlement phases of FCA matters when DOJ receives a referral from a third party, such as in qui tam cases. The MOU also recognizes that application of the FCA requires, among other elements of proof, a material violation of HUD requirements, and DOJ attorneys will solicit HUD’s views to determine whether the elements of the FCA can be established.
This interagency understanding is intended to address concerns that uncertain and unanticipated FCA liability for regulatory defects led to many well-capitalized lenders, including many banks and credit unions statutorily required to help meet the credit needs of the communities in which they do business, to largely withdraw from FHA lending. For decades, FHA has been the hallmark product for the nation’s first time homebuyers. This important segment of the market currently constitutes over 80 percent of FHAs loans. Additionally, a third of FHA loans are made to minority borrowers. This has dramatically shifted FHA’s lender base during the last decade. Today, depository institutions originate less than 14 percent of FHA-insured mortgages, down significantly from approximately 45 percent in 2010.
The MOU is part of a comprehensive plan to bring greater clarity to regulatory expectations within the FHA program, and fulfills a key component of the HUD Housing Finance Reform Plan. In addition to the MOU, FHA is simplifying the certifications that lenders make in connection with the FHA program. The certifications will better track statutory requirements and address materiality and culpability considerations. FHA is also refining its defect taxonomy that it uses to assess the appropriate remedies for identified loan underwriting defects. Together, these new and revised components are intended to make affordable FHA-insured mortgages more accessible to qualified borrowers, reduce risks within the FHA program, and preserve appropriately tailored remedies.
Department of Justice Announces Pilot Program for Use of Body-Worn Cameras by Federally Deputized Task Force OfficersRead the Press Release
Today, the Department of Justice has announced a pilot program that will allow – for the first time – federally deputized task force officers to use body-worn cameras while serving arrest warrants, or other planned arrest operations, and during the execution of search warrants. The Department of Justice, through its law enforcement agencies, partners with state, local and tribal law enforcement on hundreds of federal task forces throughout the nation. Together, these task forces work to combat violent crime, stem the flow of illegal narcotics and arrest dangerous fugitives. Several of the Department’s partner state and local agencies require their officers to wear body-worn cameras and have requested their officers wear these cameras on federal task forces when the use of force is possible.
“I am pleased that this pilot program takes into account the interests and priorities of all the law enforcement agencies involved in federal task forces,” said Attorney General William P. Barr. “These are some of the most dangerous jobs in law enforcement, and I am grateful for the sacrifice of those who serve. The Department of Justice has no higher priority than ensuring the safety and security of the American people and this pilot program will continue to help us fulfill that mission.”
“ATF’s partnerships with local and state law enforcement are crucial to protecting our communities from those who commit violent crimes involving firearms, explosives, and arson; we continually strive to be the best possible partner,” said Acting Director Regina Lombardo of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “ATF’s commitment to our partners includes adopting the appropriate use of technology to enhance effectiveness and accountability. ATF, FBI, DEA and the U.S. Marshals have worked closely with the Attorney General and leadership from local law enforcement agencies in the development of a pilot policy for the use of body-worn cameras by local officers participating in federal task forces. I look forward to implementation of this pilot as ATF continues to work with local and state law enforcement to remove the most violent offenders from our communities.”
“The Drug Enforcement Administration values its partnerships with state and local law enforcement agencies throughout the country, and we look forward to continued collaboration,” said Acting Administrator Uttam Dhillon of the Drug Enforcement Administration (DEA). “Task force officers working alongside DEA special agents play a critical role in safeguarding our communities from violent criminals, drug traffickers, and dangerous cartels, and their local knowledge and expertise are vital to making our streets safer.”
“We appreciate the Attorney General’s intentions to improve accountability through DOJ’s new body worn camera pilot policy,” said FBI Director Christopher Wray. “The FBI’s very mission is to protect the American public and uphold the Constitution. We value the continued support of our task force officers as our close collaboration is a vital part of that mission. It’s our hope this program will help us to fulfill our mission and build trust within our communities – a common goal among all of our task force partners.”
“The U.S. Marshals Service has long-standing and extremely successful partnerships with state and local law enforcement agencies throughout the country. These partnerships result in the arrest of nearly 100,000 violent fugitives each year, bringing immediate relief to communities and protecting the most vulnerable populations,” said United States Marshals Service (USMS) Director Donald Washington. “The USMS remains committed to assisting our task force partners in performance of the critical fugitive apprehension mission that contributes to the safety of our communities.”
The Department of Justice’s pilot program will go into effect in select cities on Nov. 1, 2019. The Department would like to thank ATF, the DEA, the FBI and the USMS, as well as all of the state and local law enforcement leaders that have provided input and guidance.
Defendant Sentenced in Connection with Conspiracy to Distribute and Possess with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that Sonia K. Frear, 48, of Norfolk, Nebraska, was sentenced today to 92 months in prison by Senior United States District Court Judge Laurie Smith Camp for possession with intent to distribute methamphetamine. There is no parole in the federal system. In addition to her prison term, Frear will serve 5 years of supervised release following her release from prison.
On April 17, 2018, law enforcement conducted a probation check on Frear. Frear had 42 grams of methamphetamine on her, and a safe with 280 grams of methamphetamine was also located in her residence. Frear admitted to her involvement in distributing methamphetamine.
The Nebraska State Patrol and the SNARE Drug Task Force were the investigating agencies.
Defendant Sentenced in Connection with Conspiracy to Distribute and Possess with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that Harley A. McGraw, 26, of Norfolk, Nebraska, was sentenced on October 25, 2019, to 188 months in prison by United States District Court Judge Robert R. Rossiter, Jr. for conspiracy to distribute and possess with intent to distribute methamphetamine. There is no parole in the federal system. In addition to his prison term, McGraw will serve 5 years of supervised release following his release from prison.
On October 8, 2017, law enforcement conducted a traffic stop on McGraw, who had 12.4 grams of methamphetamine in his possession. In addition, several witnesses provided information implicating McGraw as a distributor of methamphetamine in the Norfolk, Nebraska, area. The evidence showed that McGraw distributed at least 5 kilograms but not more than 15 kilograms of methamphetamine from at least December 2017 until he was arrested in October 2018.
The Nebraska State Patrol and the SNARE Drug Task Force were the investigating agencies.
Community Threat Awareness Conference CallRead the Press Release
U.S. Attorney Byung (BJay) Pak invites you to participate in the next community threat awareness conference call sponsored by the US Attorney’s Office for the Northern District of Georgia, scheduled for Wednesday, October 30th, at 2:00 PM. The guest speakers will be Assistant U.S. Attorney Jolee Porter and Special Assistant U.S. Attorney Valerie Verduce. AUSA Porter leads the Elder Fraud Strike Force in Atlanta, and SAUSA Verduce is an attorney from the Federal Trade Commission attached to our office. They will be speaking on elder fraud and scams conducted in Northern Georgia and around the nation. The call is scheduled for an hour.
As space is limited to 200 participants, we ask that you register for the call at the link provided below – first come, first served. Once your registration is received, the call-in number and activation pin will be emailed to you. Once we reach capacity, you will be placed on a waiting list. The registration link will also allow you to submit questions for consideration prior to the call.
We hope to expand this capacity using commercial tools available at a later date. We also plan to conduct these calls multiple times throughout the year, on different topics, with different audiences.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Choctaw County Man Pleads Guilty to Gun and Drug ChargesRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announces that Colby Roy Austin pled guilty to a two count indictment for 21 USC 841(a)(1) and 18 USC 922(g)(1), Possession with Intent to Distribute Methamphetamine and Possession of a Firearm by a Prohibited Person (Felon). Austin faces a statutory penalty of five to forty years on count one and up to ten years on count two. The sentencing date is set for January 31, 2020.
Austin admitted to the following facts at his plea hearing. On February 18, 2019, deputies from Choctaw County, Alabama received a call for a car accident. When the deputies arrived the driver, later identified as Austin, was slouched over the steering wheel and unresponsive. Deputies used a baton to break the passenger window. When this happened, Austin woke up and was asked to get out of the car. When Austin opened the door a firearm was visible in the driver side door. Austin had previously been convicted of a felony offense and admitted he knew he was not allowed to possess a firearm. Austin was placed into custody. In a brown bag hanging from the rear view mirror was a bag containing approximately 10 grams of ice/methamphetamine. Other items recovered from the vehicle included a pipe for smoking drugs, digital scales, and clear plastic bags. All these items are used for drug distribution.
The Choctaw County Sheriff’s Office and the Department of Homeland Security, Homeland Security Investigations investigated this case and Assistant United States Attorneys Michael Anderson and Alex Lankford prosecuted the case.
Centralia Man Charged with Drugs, GunRead the Press Release
A federal grand jury for the Southern District of Illinois has returned an indictment charging
Stephen Kristopher Martin, a.k.a. “Mo” Martin, 26, of Centralia, Illinois, with distribution of
methamphetamine and unlawful possession of a firearm.An indictment is merely a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
If convicted, Martin faces up to 20 years imprisonment, a $1 million fine, and at least 3 years
supervised release on each of three methamphetamine distribution charges. The gun charge is
punishable by as much as 10 years imprisonment, a $250,000 fine, and 3 years supervised release.The indictment is the result of an investigation conducted by members of an FBI Task Force,
including the Centralia Police Department, the Carlyle Police Department, and the Marion,
Clinton and Washington County Sheriffs’ Offices. The trial date has not been set.
Bluefield Woman Indicted on Federal Tax Charges, Wire Fraud, Lying to Federal AgentsRead the Press Release
Abingdon, VIRGINIA – A Federal grand jury sitting in United States District Court for the Western District of Virginia in Abingdon charged a Bluefield, Va., woman last week with close to 10 federal crimes related to her failure to collect taxes, wire fraud, and making false statements, United States Attorney Thomas T. Cullen announced.
In an indictment returned under seal Tuesday, October 22 and unsealed last week following her arrest, the grand jury charged Teresa Blankenship Barringer, 58, with four counts of willfully failing to collect or pay taxes, two counts of wire fraud, and three counts of making a false statements to a federal agent.
The investigation of the case was conducted by Federal Bureau of Investigation, Internal Revenue Service, and Virginia State Police. Assistant United States Attorneys S. Cagle Juhan and Randy Ramseyer will prosecute the case for the United States.
A Grand Jury Indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Biotech Company CEO Convicted of Securities Fraud and ObstructionRead the Press Release
BOSTON – The chief executive officer of PixarBio Corp., a Boston-based biotech company, was convicted today of defrauding the company’s investors and obstructing an SEC investigation.
Frank Reynolds, 57, of Newton, was convicted of by a federal jury, following a three-week trial, of one count of securities fraud and three counts of obstructing an agency proceeding. Senior United States District Judge Douglas P. Woodlock scheduled sentencing for Feb. 6, 2020.
The jury convicted Reynolds of defrauding PixarBio investors through manipulative trading of the company’s shares and false and misleading statements about the company’s finances, the timeline for FDA approval of its key drug, and Reynolds’s own background, which he claimed included curing his own paralysis. In fact, the evidence at trial showed that Reynolds was never paralyzed.
Among the false and misleading statements introduced into evidence was a December 2015 email and private placement memorandum, in which Reynolds promised investors that PixarBio’s drug, NeuroRelease, would end “thousands of years of morphine and opiate addiction.” In fact, the evidence at trial demonstrated that the drug would not end opioid addiction, and was simply an existing drug for which PixarBio claimed to have developed an additional means of delivery in a time-release form for post-operative pain.
In August 2016, Reynolds caused PixarBio to issue a press release announcing that a private securities offering underway at the time was oversubscribed, and that the maximum offering amount would be increased from $20 million to $30 million. Two months later, Reynolds caused PixarBio to issue another press release announcing that, due to oversubscription, the maximum offering amount would be increased again from $30 million to $40 million. In fact, the evidence at trial showed that the securities offering was never fully subscribed and had raised less than $10 million.
Reynolds also misrepresented the timeline to FDA approval for NeuroRelease. In a November 2016 securities filing that Reynolds signed as PixarBio’s CEO, the company stated that clinical trials were expected to begin “in late 2017 and US FDA approvals for the NeuroRelease 14-day product are expected in 2018,” despite the fact that PixarBio managers had told Reynolds that this timeline was not achievable.
Reynolds also directed two co-conspirators, Kenneth Stromsland and Jay Herod, to engage in manipulative trading in PixarBio shares that artificially pushed up the stock’s trading price. The evidence demonstrated that Herod shared the proceeds of his trading with Reynolds and PixarBio. Reynolds then misled the SEC about the trading and his prior misstatements in sworn testimony, during which he introduced a backdated document as purported evidence that $300,000 in trading proceeds Herod had given him was actually an investment unrelated to Herod’s trading. Reynolds also induced Herod and Stromsland to mislead the SEC in their own sworn testimony. Herod and Stromsland previously pleaded guilty to securities fraud and obstruction charges and testified at the trial.
The charge of securities fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $5 million. Each count of obstruction carries a maximum sentence of five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Carl W. Hoecker, Inspector General of the U.S. Securities and Exchange Commission Office of Inspector General, made the announcement today. Assistant U.S. Attorneys Sara Miron Bloom and Leslie A. Wright of Lelling’s Securities and Financial Fraud Unit are prosecuting the case.
Alleged Five Guys shooter facing federal chargesRead the Press Release
HOUSTON – A 25-year-old Houston resident is set to appear in federal court today to answer allegations he robbed a Five Guys restaurant and shot an off-duty law enforcement officer, announced U.S. Attorney Ryan K. Patrick.
Keith Thomas is expected to appear before U.S. Magistrate Judge Bryan at 10:00 am today. He is charged with interference with commerce by robbery and discharging a firearm during or in relation to that robbery.
The criminal complaint, filed Oct. 25, 2019 alleges Thomas entered the Five Guys restaurant located at 2902 Shepherd Drive in Houston with a firearm Oct. 16. There, Thomas allegedly pointed the firearm at customers and employees and demanded money. The charges allege he was able to steal cash from the cash register and from patrons.
Prior to exiting the restaurant, Thomas allegedly discharged his firearm, striking a constable who was approaching the door. The constable was off official duty with Harris County Precinct 5, but working security at the location. Thomas then fled the location, according to the complaint.
The charges allege officers found a cell phone they believed to belonged to the suspect and traced is back to Thomas. Thomas was arrested and transferred to federal custody.
If convicted, Thomas faces up to 20 years in prison for interference with commerce by robbery and a consecutive mandatory minimum of 10 years up to life in prison for firearm charge.
The Houston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Jill Stotts is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.14 Defendants Charged, 200 Pounds of Meth SeizedRead the Press Release
WICHITA, KAN. – A prosecutor said in court today that federal agents seized more than 220 pounds of methamphetamine in a drug trafficking case in the Kansas City, Kan., metro area.
U.S. Attorney Stephen McAllister said 14 defendants are charged in the case.
“Opioids are often in the news,” McAllister said. “But methamphetamine remains our biggest drug problem in the Midwest.”
Investigators found the methamphetamine when they served a search warrant at a house in Kansas City, Kan., where one of the defendants lives.
The 33-count indictment, which was based on more than a year of investigation by the Drug Enforcement Administration, contains charges including conspiracy, distribution, possession with intent to distribute and interstate communications in furtherance of drug trafficking. Many of the charges carry potential penalties of 10 years or more in federal prison
The following defendants have been charged:
Luis Martinez-Carrango, 57, Kansas City, Mo., conspiracy, interstate communications in furtherance of drug trafficking, possession with intent to distribute methamphetamine.
Alfredo Rey, 34, Kansas City, Kan., conspiracy, possession with intent to distribute methamphetamine.
Antonio Edder Calderson-Reyes, 31, conspiracy, distribution of methamphetamine, interstate communication in furtherance of drug trafficking.
Raul Gutierrez-Zamaripa, 31, conspiracy.
Jose Rosa-Pacheco, 34, Kansas City, Kan., conspiracy, distribution of methamphetamine, possession with intent to distribute methamphetamine.
Carlos Rosa-Artia, 35: Kansas City, Kan., conspiracy.
Enrique Rodriguez, 42, conspiracy, possession with intent to distribute methamphetamine.
Rusbein Galicia-Lopez, 31, conspiracy, distribution of methamphetamine, possession with intent to distribute methamphetamine, interstate communication in furtherance of drug trafficking.
Abraham Gutierrez-Ojeda, 36, conspiracy, distributing methamphetamine, possession with intent to distribute methamphetamine, interstate communication in furtherance of drug trafficking,
Jerry Taylor, 44, conspiracy, interstate communication in furtherance of drug trafficking, distributing methamphetamine.
Yader Arita, 30, conspiracy, possession with intent to distribute methamphetamine.
Manuel Leyva-Quijada, 43, Kansas City, Kan., conspiracy.
Mary Cain, 38, Kansas City, Kan., conspiracy, possession with intent to distribute methamphetamine.
Christopher Hite, 36, conspiracy, possession with intent to distribute methamphetamine.
If convicted, the defendants could face the following penalties:
Conspiracy: Not less than 10 years in federal prison and a fine up to $10 million.
Distribution: Not less than 10 years in federal prison and a fine up to $10 million.
Possession with intent to distribute: Not less than 10 years in federal prison and a fine up to $10 million.
Interstate communication: Not more than four years in federal prison and a fine up to $250,000.The Drug Enforcement Administration and the Kansas City Metro Strike Force investigated. Assistant U.S. Attorney David Lind is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Sunday 27 October 2019
Yankton Woman Sentenced for Theft of Government FundsRead the Press Release
United States Attorney Ron Parsons announced that a Yankton, South Dakota, woman convicted of Theft of Government Funds was sentenced on October 21, 2019, by U.S. District Judge Karen E. Schreier.
Whitney Lynn Clark, age 37, was sentenced to 2 years of probation, $78,775.33 in restitution, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Clark was indicted by a federal grand jury on December 4, 2018. She pled guilty on July 25, 2019.
The conviction stemmed from false claims Clark made on applications for Social Security benefits on behalf of her children between August 2014 and November 2017. On the applications, Clark failed to disclose her husband's income. This omission led to an overpayment of $78,775.33 in Social Security, Supplemental Nutrition Assistance Program (SNAP) benefits, and Medicaid payments.
This case was investigated by the Social Security Administration. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
St. Francis Man Sentenced for LarcenyRead the Press Release
United States Attorney Ron Parsons announced that a St. Francis, South Dakota, man convicted of Larceny was sentenced on October 21, 2019, by U.S. District Judge Roberto A. Lange.
Joseph Abraham Mack, a/k/a Joseph Mack, Jr., age 27, was sentenced to 15 months in federal prison, followed by 2 years of supervised release, $1,250 in restitution, and a special assessment to the Federal Crime Victims Fund in the amount of $100. Additional restitution may apply.
Mack was indicted by a federal grand jury on March 13, 2018. He pled guilty on July 31, 2019.
The conviction stemmed from an incident that occurred in the early morning hours of January 14, 2018. On that date, Mack unlawfully entered a residence in Mission, South Dakota. While inside, Mack stole a silver belt buckle and the keys to a pickup truck that was parked outside. Mack then stole the pickup truck and drove away. He wrecked the pickup near Rosebud, South Dakota, and abandoned it in the middle of the roadway. Mack then walked to a nearby residence, stole another pickup, and then drove to a residence in St. Francis, where he was apprehended a short time later.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Mack was immediately turned over to the custody of the U.S. Marshals Service.
Sioux Falls Woman Sentenced for Misuse by a Representative PayeeRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, woman convicted of Misuse by a Representative Payee was sentenced on October 21, 2019, by U.S. District Judge Karen E. Schreier.
Pamela Ann Olson, age 47, was sentenced to 6 months of probation, $113,227.53 in restitution, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Olson was indicted by a federal grand jury on December 4, 2018. She pled guilty on August 12, 2019.
The conviction stemmed from incidents between November 2009 and December 2017, in the District of South Dakota and elsewhere, when Olson, who was her father’s representative payee, willfully and knowingly converted Title II program benefits payments made to her father, which are administered by the U.S. Social Security Administration, to a use other than for the benefit of her father. Olson received her father’s Social Security benefits payments, and then stole and misused those benefits payments.
This case was investigated by the Social Security Administration, Office of the Inspector General. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
Sex Offender Sentenced to 12 Months of Imprisonment for Failing to RegisterRead the Press Release
United States Attorney Ron Parsons announced that a Marty, South Dakota, man convicted of failure to register as a sex offender was sentenced on October 21, 2019, by U.S. District Judge Karen E. Schreier.
Raymond Jandreau, age 61, was sentenced to 12 months and 1 day in federal prison, to be followed by 5 years of supervised release. He was also ordered to pay $100 to the Federal Crime Victims Fund.
According to court documents, Jandreau was convicted of attempted first-degree rape in South Dakota state court. This conviction requires him to register for life as a sex offender. Since July 1, 2016, Jandreau’s whereabouts were unknown until his arrest in May 2019. His last known address was in Farmington, New Mexico, but that residence was vacated with no sign of Jandreau. His last known address in South Dakota was in Marty. Jandreau knew of the requirement to update his sex offender registration, but he knowingly failed to do so.
The investigation was conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.
Jandreau was remanded to the custody of the U.S. Marshals Service.
Rosebud Man Indicted on Firearm ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for Possession of a Firearm by a Prohibited Person and False Statements During Purchase of a Firearm.
John Larvie, age 29, was indicted on October 16, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on October 24, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on July 22, 2019, Larvie, having been convicted of a misdemeanor crime of domestic violence, did knowingly make false and fictitious written statements in an effort to purchase and possess a firearm.
The charges are merely accusations and Larvie is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, and Firearms. Assistant U.S. Attorney Michael Elmore is prosecuting the case.
Larvie was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set