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4 December 2019
Great Falls drug trafficker sentenced to 15 years in prison for meth, firearmsRead the Press Release
GREAT FALLS—A Great Falls man who admitted drug trafficking and firearms crimes after law enforcement officers responded to a report of drug activity at a local hotel was sentenced today to 15 years in prison and five years of supervised release, U.S. Attorney Kurt Alme said.
Gregory George Denny, 47, pleaded guilty in August to possession with intent to distribute meth and to possession of a firearm in furtherance of a drug trafficking crime.
U.S. District Judge Brian M. Morris presided.
Law enforcement officers responded on Jan. 21, 2018 to a report of potential drug activity at two rooms at a Great Falls hotel and found Denny in one of the rooms. An officer felt a suspected meth pipe in a jacket he was handing to Denny. After getting a search warrant, officers found baggies of meth in the coat, a plastic vial with marijuana and a glass pipe with white residue. Officers also found additional bags of meth, two cellular phones, $900 in cash, a scale, a knife and a hand grenade. And officers found four firearms and numerous rounds of ammunition on the bed. A search of Denny’s phones determined there were extensive communications involving drug distribution, including messages where Denny was negotiating multi-pound meth deals. Other messages indicated Denny negotiated selling meth for firearms and vice versa.
Witnesses told law enforcement that Denny had been dealing meth since at least 2017 and typically possessed firearms.
Assistant U.S. Attorney Jessica Betley prosecuted the case, which was investigated by the Great Falls Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Homeland Security Investigations.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Grand Jury Returns Indictments Charging Gun CrimesRead the Press Release
MADISON, WIS. -- A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Three Madison Residents Charged in Separate Indictments With Related Gun Crimes; Fourth Individual Pleads Guilty
In separate, but related indictments, three individuals have been charged with crimes including being a felon in possession of a firearm and false statements to a federally licensed firearms dealer.
Lidia Guadalupe Molina, 21, Madison, Wisconsin, is charged with three counts of making false statements to federally licensed firearms dealers when purchasing firearms. The indictment alleges that she certified that she was the actual buyer of the firearms when she was not. The indictment charges that she made such false statements when purchasing or attempting to purchase a 9mm pistol on July 12, 2019, a .380 caliber pistol on August 9, 2019, and a 9mm pistol on November 12, 2019.
Molina was previously charged with these offenses in a complaint filed in U.S. District Court in Madison on November 21. She was arrested on November 24, appeared in federal court on November 25, and was released following a hearing on November 26 with the condition that she not associate with the other defendants. Her arraignment hearing is scheduled for tomorrow at 9:00 a.m.
The complaint and affidavit alleged that Molina purchased a 9mm pistol on July 12, 2019, and on the form required by federal law, she indicated the she was the actual buyer of the firearm. The affidavit alleged that this pistol was found on August 10 in a car driven by Jamohn Barney. Barney, 34, also of Madison, is charged in an indictment returned today with being a felon in possession of a loaded firearm.
The complaint and affidavit charging Molina also alleged that she purchased a .380 caliber pistol on August 9, and on the form required by federal law, she indicated the she was the actual buyer of the firearm. The affidavit alleged that this pistol was found in a car belonging to Sean Okray on August 23, 2019. Okray, 48, also of Madison, pleaded guilty yesterday in U.S. District Court in Madison to being a felon in possession of a firearm. Okray was convicted of second degree intentional homicide while armed in Milwaukee County in 1993. His sentencing is scheduled for February 13, 2020. He faces a maximum penalty of 10 years in federal prison.
Francisco Anglin, 22, also of Madison, is charged with being a felon in possession of a firearm and with aiding and abetting an individual to make an illegal purchase of a firearm. The indictment charging him alleges that he possessed a rifle on November 12, 2019, and that on that same day, he aided and abetted Lidia Molina to make a false statement to a federally licensed firearms dealer in order to purchase a firearm. The indictment alleges that he aided and abetted Molina to certify that she was the actual buyer of a 9mm pistol when she knew she was not. According to the affidavit filed with the complaint charging Molina, the firearms dealer believed that Molina was engaged in purchasing the firearm for someone other than herself, commonly referred to as a “straw purchase,” and refused to transfer the firearm to her.
If convicted, these individuals face the following penalties:
- Molina – a maximum penalty of five years on each of the three charges;
- Anglin - a maximum penalty of 10 years on the felon in possession charge and five years on the aiding and abetting charge; and
- Barney – a maximum penalty of 10 years.
The charges against Molina, Anglin, and Barney are the result of investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Sun Prairie Police Department, and the Monona Police Department. The charge against Okray was the result of an investigation by the Madison Police Department, Dane County Sheriff’s Office, U.S. Marshals Service, and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Rita M. Rumbelow is handling the prosecution of Molina, Barney, and Okray, and Assistant U.S. Attorney Corey C. Stephan is handling the prosecution of Anglin.
Onalaska Man Charged with Being a Felon In Possession of a Firearm and Ammunition
Curtis Green, 39, Onalaska, Wisconsin, is charged with being a felon in possession of a firearm and ammunition. The indictment alleges that on October 30, 2019, he possessed a .40 caliber pistol and ammunition.
If convicted, Green faces a maximum penalty of 10 years in federal prison. The charge against him is the result of an investigation by the West Salem Police Department, La Crosse County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Taylor L. Kraus is handling the prosecution.
These indictments returned today have been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition, and violent crimes and drug crimes that involve the use of firearms.
Grand Jury Charges Man in Bank Robbery SpreeRead the Press Release
OKLAHOMA CITY – DWAYNE EDWARD RASMUSSEN, 55, has been indicted on four counts of bank robbery, announced U.S. Attorney Timothy J. Downing.
According to a superseding indictment returned by a federal grand jury today, Rasmussen robbed four banks in the course of two months: the Weokie Credit Union at 2727 Southwest 15th Street in Oklahoma City on March 5, 2019; the Bank of the West at 1600 Southwest 89th Street in Oklahoma City on March 18, 2019; RCB Bank at 800 Garth Brooks Boulevard in Yukon on April 5, 2019; and Community Bank of Oklahoma at 1227 West Grand Avenue in Chickasha on April 30, 2019.
An affidavit in support of a criminal complaint filed on May 6, 2019, explains in connection with the final robbery that Rasmussen entered the Chickasha branch of Community Bank of Oklahoma at approximately 9:15 a.m. on April 30, 2019, and told a bank employee: "Give me all your 50’s and 100’s." After the employee complied, he allegedly said: "That’s not enough. Give me all your money." He is alleged to have taken virtually all the money from the three tellers’ drawers, for a total reported loss of $10,474. The affidavit states that while he did this, he brandished what appeared to be a pistol with a green grip.
Rasmussen was arrested on May 6 in downtown Oklahoma City and has been in the custody of the U.S. Marshals Service since that time.
If found guilty, Rasmussen faces a maximum potential penalty on each of the four counts of twenty years in prison, three years of supervised release, a fine of $250,000, and mandatory restitution. If, however, the court determines his criminal history includes two or more serious violent felonies, he could be subject to mandatory life in prison.
This case is the result of an investigation by the FBI—Oklahoma City Field Office, the Oklahoma City Police Department, the Yukon Police Department, and the Chickasha Police Department. Assistant U.S. Attorneys Wilson D. McGarry and Mary E. Walters are prosecuting the case.
The public is reminded that these charges are merely allegations and that Rasmussen is presumed innocent unless and until proven guilty beyond a reasonable doubt. Reference is made to public filings for more information.
Gloucester Man Sentenced for Bank RobberyRead the Press Release
BOSTON - A Gloucester man was sentenced today in federal court in Boston for bank robbery.
Michael Robinson, 40, was sentenced by U.S. District Court Judge William G. Young to six years in prison and three years of supervised release. In June 2019, Robinson pleaded guilty to one count of bank robbery.
On Nov. 19, 2018, a man, later identified as Robinson, entered the Institution for Savings Bank in Gloucester, walked up to the teller counter, passed a handwritten note, and stole $2,650. Within minutes of the robbery, local police responded to the bank where they reviewed bank surveillance footage and recognized Robinson as the robber. Police also matched bank surveillance footage of Robinson to a recent Facebook photograph Robinson posted the previous weekend. In that Facebook photo, Robinson was wearing the same clothing he wore when he robbed the bank. Only a few hours after the robbery, police apprehended Robinson on a bus in another city.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Gloucester Police Chief Edward G. Conley made the announcement. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit prosecuted the case.
Genovese Crime Family Member Convicted of Racketeering and Extortion OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that FRANK GIOVINCO was convicted yesterday of conspiring to commit extortion and racketeering offenses with members and associates of the Genovese Crime Family of La Cosa Nostra following a six-day jury trial before U.S. District Judge Jed S. Rakoff. The jury found the defendant responsible for acts involving extortion, honest services fraud, and unlawful kickback payments related to the Genovese Crime Family’s control of two local chapters of a labor union.
U.S. Attorney Geoffrey S. Berman said: “For years, Frank Giovinco, as a member of the Genovese Crime Family, instilled fear in victims and propagated kickback schemes to tighten the Family’s stranglehold over two labor unions. Now, a jury has held Giovinco accountable for his crimes.”
According to the Indictment, documents previously filed in the case, and evidence introduced at trial:
La Cosa Nostra, also known as the “Mob” or the “Mafia,” operates through entities known as “Families.” The largest of the families operating in the New York City area is the Genovese Crime Family. In the early 1990s, GIOVINCO was inserted by the Genovese Crime Family into a scheme to control the waste carting industry in New York City, and as far back as the late-1990s, GIOVINCO was a member of the Genovese Crime Family.
In more recent years, and continuing until 2017, GIOVINCO conspired with other members and associates of the Genovese Crime Family to commit a wide range of crimes to enrich themselves and the Genovese Crime Family, including multiple acts of extortion, honest services fraud, and bribery. GIOVINCO’s activity for the Genovese Crime Family was centered on two local chapters (the “Unions”) of a labor union. GIOVINCO participated in a host of schemes designed to manipulate and siphon money from the Unions for the benefit of the Genovese Crime Family. Among other things, GIOVINCO extorted a financial adviser (the “Adviser”) and a labor union official (“Official-1”) for a cut of commissions made from union investments. Audio recordings captured GIOVINCO planning to “rattle the cage” of a victim, and to have another victim’s “feet held to the fire.” When Official-1 failed to pay the commissions demanded by GIOVINCO and other members of the Genovese Crime Family, Official-1’s life was threatened by GIOVINCO and his co-conspirators. GIOVINCO further plotted to profit from union investments by paying kickbacks to Official-1 and others, in exchange for a cut of future commissions. GIOVINCO also participated in the long-running extortion of a union president (“Official-2”) for annual tribute payments of more than $10,000, and sought a job at the union for the purpose of exerting control over Official-1 on the Genovese Crime Family’s behalf, and threatening to replace Official-1.
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GIOVINCO, 52, of Syosset, New York, was convicted of one count of racketeering conspiracy, which carries a maximum potential sentence of 20 years in prison, and one count of conspiracy to commit extortion, which also carries a maximum potential sentence of 20 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as the sentencing of the defendant will be determined by the judge. Sentencing before Judge Rakoff is scheduled for March 11, 2020.
Mr. Berman praised the outstanding investigative work of the FBI, the U.S. Department of Labor’s Office of Inspector General and Office of Labor-Management Standards, the New York City Police Department, and the Special Agents of the United States Attorney’s Office for the Southern District of New York.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Kimberly J. Ravener, Jason A. Richman, and Justin V. Rodriguez are in charge of the prosecution, assisted by Paralegal Specialist Hannah Harney.
GBK Gang Member Admits Guilt in Heroin Distribution SchemeRead the Press Release
PITTSBURGH - A resident of Pittsburgh, PA, pleaded guilty in federal court to a charge of conspiracy to distribute heroin, United States Attorney Scott W. Brady announced today.
Mark Givens, age 30, 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 in 2017, the Federal Bureau of Investigation and the Drug Enforcement Administration initiated a wiretap investigation, primarily targeting the Greenway Boy Killas (GBK) street gang and drug trafficking in and around an area known as the Greenway Projects, located in the West End of the City of Pittsburgh. The wiretap investigation revealed that from in and around November 2017 through in and around June 2018, GBK gang member Mark Givens and his co-conspirators conspired to distribute quantities of heroin.
Judge Schwab scheduled sentencing for April 30, 2020 at 11:00 a.m. The law provides for a total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Pending sentencing, the court continued the defendant’s detention.
Assistant United States Attorneys Tonya Sulia Goodman and Yvonne M. Saadi are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Drug Enforcement Administration jointly led the multi-agency investigation, which also included the Pittsburgh Bureau of Police, Allegheny County Sheriff’s Office, Pennsylvania State Police, Robinson Township Police Department, Stowe Township Police Department, Pennsylvania Attorney General’s Office, Wilkinsburg Borough Police Department, and the McKees Rocks Police Department, that led to the prosecution of Mark Givens.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Former UAW Vice President Pleads Guilty to Taking $250,000 in Bribes and KickbacksRead the Press Release
Joseph Ashton, former Vice President of the UAW’s General Motors Department, pleaded guilty today to conspiring with other UAW officials to engage in honest services fraud by taking $250,000 in bribes and kickbacks from a UAW vendor and to conspiring to launder the proceeds of the scheme announced U.S. Attorney Matthew Schneider.
Joining in the announcement were Irene Lindow, Special Agent in Charge of the U.S. Department of Labor – Office of Inspector General, Steven M. D’Antuono, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation, Manny Muriel, Special Agent in Charge of the Detroit, Michigan office of the Internal Revenue Service – Criminal Investigations, and Thomas Murray, District Director, U.S. Department of Labor – Office of Labor-Management Standards.
Joseph Ashton, 71, of Ocean View, NJ, pleaded guilty to conspiring to engage in honest services wire fraud and to conspiring to launder money between 2012 and 2016. During the plea hearing, Ashton admitted that he conspired with Michael Grimes and Jeffery Pietrzyk, two former high-level UAW officials in the UAW’s GM Department who previously pled guilty to the same crimes, to take hundreds of thousands of dollars in bribes and kickbacks from vendors doing business with the joint UAW-GM Center for Human Resources. The Center for Human Resources is supposed to be a center for training UAW workers employed by GM. Ashton was the co-director of the Center for Human Resources. Ashton, Pietrzyk and Grimes also served on the Executive Board for the Center for Human Resources and they were responsible for approving contracts with the vendors. Ashton admitted that over the course of the conspiracy, he and the other two UAW officials demanded and accepted bribes and kickbacks from a vendor based in Philadelphia, PA, in exchange for securing or maintaining a contract to provide custom watches to the Center for Human Resources.
Ashton and his UAW co-conspirators demanded kickbacks on the $3.9 million contract for the Center for Human Resources to buy 58,000 watches for all UAW members employed by GM. The UAW officials demanded over $250,000 in kickbacks on the watch contract to be distributed between 2013 through 2016. Some of the kickbacks were distributed in the form of checks payable to Ashton which were deposited into his personal bank account. The majority of the kickbacks were distributed as cash. In 2014, the UAW-GM Center for Human Resources received the 58,000 watches from the vendor. However, the watches were never distributed to UAW members. Instead, the watches have been sitting in storage in a warehouse for over five years.
Besides conspiring with other UAW officials and vendors to the UAW, Ashton also admitted that he conspired to launder the proceeds of the kickback scheme by using various methods to conceal and disguise the bribes and kickbacks through a lengthy and complicated series of financial transactions.
Ashton is the eleventh defendant to plead guilty in connection with the ongoing criminal investigation into illegal payoffs to UAW officials by FCA executives and corruption within the UAW itself. The following individuals have already pleaded guilty to their participation in the scheme and have been sentenced: former FCA Vice President for Employee Relations Alphons Iacobelli (66 months in prison), former FCA Financial Analyst Jerome Durden (15 months in prison), former Director of FCA’s Employee Relations Department Michael Brown (12 months in prison), former senior UAW officials Virdell King (60 days in prison), Keith Mickens (12 months in prison), Nancy A. Johnson (12 months in prison), Monica Morgan, the widow of UAW Vice President General Holiefield (18 months in prison), and former UAW Vice President Norwood Jewell (15 months in prison). Jeffery Pietrzyk and Michael Grimes have pleaded guilty and are awaiting sentencing.
U.S. Attorney Schneider commended the outstanding work of the Internal Revenue Service – Criminal Investigations, the U.S. Department of Labor – Office of Labor-Management Standards and Office of Inspector General, and the Federal Bureau of Investigation in conducting a comprehensive criminal investigation into labor corruption activities involving a vital sector of the local and national economy.
“The hard-working members of the UAW deserve to be represented by union officials dedicated to providing honest representation free of corruption and greed, and today’s guilty plea is another step in the right direction,” stated US Attorney Schneider.
“Joseph Ashton abused the power of his position in the UAW to brazenly demand kickbacks from a vendor. His actions deprived union members of the honest services they expect and deserve from those who are elected to make decisions in the union's best interest,” said SAC D’Antuono. “The FBI is committed to fighting such corruption, which does real and lasting damage to the trust union members should have in their elected leadership."
“Joseph Ashton was elected to represent and bargain in the best interests of the UAW members, but instead he used his position to enrich himself and others within the UAW” said Thomas Murray, District Director, U.S. Department of Labor, Office of Labor-Management Standards. “Protecting members against corruption perpetrated by their union leaders is critical to the mission of OLMS.”
“Joseph Ashton engaged in a fraudulent scheme to deprive the International United Auto Workers Union of his honest services by demanding and accepting over $250,000 in kickbacks from a vendor. Instead of bargaining in the best interests of the UAW members, he chose to personally enrich himself. We will continue to work with our law enforcement partners to protect the financial integrity of labor organizations,” stated Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
The case is being prosecuted by Assistant U.S. Attorneys Frances Carlson and Eaton Brown.
Former U.S. Navy Contractor and its President Sentenced for Scheme Related to Transfer of U.S. Navy Submarine Rescue TechnologyRead the Press Release
WASHINGTON – Former U.S. Navy Contractor, Canada-based OceanWorks International Cooperation (“OceanWorks”) was sentenced on December 2, 2019, for a scheme to falsify facts in a disclosure to the Department of Commerce and the company’s president, Glen Omer Viau, 52, of British Columbia, Canada, was sentenced for unauthorized use of government property.
U.S. Attorney Jessie K. Liu, Perrye K. Turner, Special Agent in Charge, FBI Houston, and Douglas R. Hassebrock, Acting Assistant Secretary for Export Enforcement, U.S. Department of Commerce made the announcement.
On September 10, 2019, OceanWorks pled guilty to a one-count information charging it with knowingly and willfully falsifying, concealing, and covering up a material fact, in violation of Title 18, United States Code, Section 1001, in the U.S. District Court for the District of Columbia. OceanWorks’ President, Glen Omer Viau, pleaded guilty to conveying, without authority, U.S. Navy technical data to an unauthorized party. The Honorable Colleen Kollar-Kotelly sentenced OceanWorks to a fine of $84,000 and Viau to time served and a $25,000 fine.
According to the government’s evidence, the OceanWorks scheme, which started in 2016, involved misrepresenting to and concealing from, the Office of Export Enforcement within the Department of Commerce, the true nature and extent of the transfer of U.S. Navy technical data to China. The scheme was performed in connection with a proposal by OceanWorks and an unindicted company based in China (“the Chinese Company”) to the People’s Liberation Army (PLA) Navy for the design and construction of remotely-operated submarine rescue vehicles.
OceanWorks was the prime contractor for the U.S. Navy’s Submarine Rescue Diving and Recompression System (“SRDRS”). One component of the SRDRS was the submarine rescue system, a tethered, remotely-operated vehicle that included a Pressurized Rescue Module (“PRM”). The Department of Commerce issued a formal determination that the PRM and its technical data could not be exported to China without a license and were controlled under U.S. regulations.
In 2016, OceanWorks was sold to the Chinese Company. Viau was hired as President of OceanWorks soon thereafter.
After Viau was hired as President, from approximately November 2016 to February 2017, OceanWorks sent U.S. Navy technical data, including multi-page technical drawings, on the PRM, a component of the U.S. Navy’s submarine rescue system, to an employee of OceanWorks and the Chinese Company. OceanWorks transferred this data to assist with a proposal to develop a similar submarine rescue vehicle system for the PLA Navy. At least one of the multi-page technical drawings was export-controlled and required a license before being sent to China.
In 2017, the Canadian Government ordered the divestiture of the OceanWorks acquisition. Following the divesture, in March 2018, OceanWorks filed with the Department of Commerce’s Office of Export Enforcement a Voluntary Self Disclosure (“VSD”) identifying export violations that had occurred before Viau became President of OceanWorks. However, in the VSD, OceanWorks omitted that the Chinese Company sought to enter the same industry as the U.S. Navy and that OceanWorks worked on a proposal to design a submarine rescue system for the PLA Navy.
In announcing the sentence, U.S. Attorney Liu, Special Agent in Charge Turner, and Assistant Secretary Hassebrock acknowledged the work of those who investigated the case from the FBI’s Houston Field Office, Commerce’s Office of Export Enforcement, and the Internal Revenue Service Criminal Investigation. They also praised the work of Assistant U.S. Attorneys Jeff Pearlman, Jolie F. Zimmerman, and Thomas Gillice of the District of Columbia, and Trial Attorney David Recker of the National Security Division’s Counterintelligence and Export Control Section, who investigated and prosecuted the case.
Former Penn Hills Resident Pleads Guilty to Narcotics TraffickingRead the Press Release
PITTSBURGH, PA- A former resident of Penn Hills, Pennsylvania, pleaded guilty in federal court to a charge of narcotics trafficking, United States Attorney Scott W. Brady announced today.
Joseph McCoullum, aka Steele, 36, pleaded guilty to one count possession with intent to distribute heroin before United States District Judge J. Nicholas Ranjan.
In connection with the guilty plea, the court was advised that in May of 2018, the Western Pennsylvania Opioid Task Force (WPAOTF) identified McCoullum as a heroin dealer operating in the Penn Hills and Shaler areas. On May 10, 2018, with the assistance of the Sharpsburg, Etna, Hampton, and Shaler police departments, WPAOTF conducted a consent search at a residence where the defendant had been observed by law enforcement spending a significant amount of time. McCoullum was found inside the residence, and upon searching his person, law enforcement seized four bricks and two bundles of suspected heroin.
Judge Ranjan scheduled sentencing for April 6, 2020 at 11:00 a.m. The law provides for a total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. McCoullum remains under detention pending the sentencing hearing.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the prosecution of McCoullum with the assistance of the Sharpsburg, Etna, Hampton, and Shaler police departments.
Former Managing Director of Investment Bank Sentenced to 2 Years in Prison for Insider Trading SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that SEAN STEWART, a former senior investment banker at two different New York-based investment banks, was sentenced yesterday to 24 months in prison by U.S. District Judge Jed S. Rakoff for illegally tipping his father and co-defendant Robert Stewart with inside information about five health care company acquisitions before they were publicly announced. SEAN STEWART was convicted by a jury after a retrial that ended on September 23, 2019.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As two separate juries have now found, Sean Stewart abused his positions at two investment banks, betrayed his employers by stealing his clients’ valuable secrets, and gave his father inside information to illegally profit in the stock market. To cover his tracks, Sean Stewart committed numerous acts of deception, including lying to bank compliance officials about his father’s trading activities in response to an inquiry from a financial regulator. Yesterday’s sentence, which requires Sean Stewart to return to prison for his insider trading crimes, is a reminder that no one is above the law and that serious breaches of trust and confidence like Sean Stewart’s will be met with serious punishment.”
According to the allegations contained in the Superseding Indictment and evidence presented at trial:
In early 2011, SEAN STEWART, who at the time held the position of vice president in the Healthcare Investment Banking Group of a global bank headquartered in Manhattan (“Investment Bank A”), began tipping his father, Robert Stewart, with nonpublic information about upcoming mergers and acquisitions. The first of these tips related to the acquisition of Kendle International Inc. by INC Research, LLC, which was announced publicly on May 4, 2011. SEAN STEWART represented Kendle in the confidential negotiations that led to the deal announcement. Based on inside information from SEAN STEWART, Robert Stewart purchased Kendle stock and passed the information to another individual to trade on his behalf, and earned several thousand dollars in profits after the acquisition of Kendle was publicly announced.
The second deal about which SEAN STEWART tipped Robert Stewart was the acquisition of Kinetic Concepts, Inc. (“KCI”), by Apax Partners, announced on July 13, 2011. Robert Stewart passed the inside information to another co-conspirator, Richard Cunniffe, to trade on Robert’s behalf. Robert Stewart and Cunniffe earned more than $100,000 in profits after the acquisition was publicly announced.
In the summer of 2011, SEAN STEWART learned that the Financial Industry Regulatory Authority (“FINRA”) was conducting an inquiry into suspicious trading in Kendle securities, including trading by Robert Stewart. SEAN STEWART at first falsely claimed to compliance officials at Investment Bank A that he did not recognize his father’s name on a list of individuals who traded prior to the public announcement of Kendle’s acquisition. After FINRA and compliance officials at Investment Bank A recognized the connection between SEAN STEWART and his father, SEAN STEWART told a series of lies to those compliance officials, to make it seem as if Robert Stewart had decided on his own initiative to invest in Kendle without the benefit of inside information.
In October 2011, SEAN STEWART joined an investment banking advisory firm headquartered in Manhattan (“Investment Bank B”) and was later promoted to managing director. During his tenure with Investment Bank B, SEAN STEWART provided his father with tips concerning nonpublic acquisition negotiations involving three more public companies: (1) the acquisition of Gen-Probe Inc. by Hologic, Inc., announced on April 30, 2012; (2) the acquisition, by tender offer, of Lincare Holdings Inc. by Linde AG, announced on July 1, 2012; and (3) the acquisition of CareFusion Corp. by Becton, Dickinson & Co. (“Becton”), announced October 4, 2014. Investment Bank B represented Hologic in connection with its acquisition of Gen-Probe, Linde in connection with its acquisition of Lincare, and CareFusion in connection with its acquisition by Becton. As before, Robert Stewart passed the information to Cunniffe in order to place trades for the two of them.
During the course of the scheme, SEAN STEWART became aware that his father was having financial problems. Rather than loan his father money, SEAN STEWART gave his father stock tips so that his father could profit from the information that STEWART stole from Investment Bank A and Investment Bank B and their clients. In total, with respect to all five deals, Robert Stewart and Cunniffe earned profits of more than $1.1 million.
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In addition to his prison sentence, SEAN STEWART, 38, of North Merrick, New York, was sentenced to three years of supervised release. SEAN STEWART was ordered to report to prison on January 14, 2020.
Robert Stewart pled guilty on August 12, 2015, to one count of conspiracy to commit securities fraud and tender offer fraud and was sentenced to four years’ probation, with the first year to be served in home detention, and $150,000 in forfeiture.
Richard Cunniffe pled guilty on May 12, 2015, to one count of conspiracy to commit securities fraud and tender offer fraud, one count of conspiracy to commit wire fraud, three counts of substantive securities fraud, and one count of substantive tender offer fraud, and was sentenced to one year of probation, and $900,000 in forfeiture.
Mr. Berman praised the investigative work of the Federal Bureau of Investigation and also thanked the SEC, which has brought a civil action against SEAN STEWART.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Richard Cooper and Samson Enzer are in charge of the prosecution.
Former Chief Financial Officer Sentenced to 12 Months in Federal Prison for Tax EvasionRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that William Keith Jones, age 59, of Spokane, Washington, was sentenced today after having pleaded guilty on January 23, 2019, to four counts of income tax evasion. Senior United States District Judge Wm Fremming Nielsen sentenced Jones to a 12-month and one day term of imprisonment, to be followed by 3 years of court supervision after he is released from federal prison, and to pay $403,187 in restitution to the IRS and another victim of his conduct.
According to information disclosed during court proceedings, Jones abused his executive position at Fasteners Inc. and his specialized accounting knowledge to fraudulently divert company funds to pay for a variety of his personal expenses, including purchase of a Harley Davidson motorcycle, remodeling work at his residence and college tuition for his children. Jones misused the company’s internal accounting software to falsely code his payment of personal expenses with company funds in a manner that avoided detection by his employer and the IRS.
United States Attorney Hyslop said, “Corporate executives, such as Jones, have a duty to not abuse their position of trust. They cannot divert monies from the corporation for their personal use and benefit and cannot manipulate the corporation’s internal books to conceal their actions. The vast majority of Americans file honest tax returns and pay their fair share of taxes every year. Those who may intentionally conceal their income from the IRS and evade taxes will be prosecuted and risk imprisonment, as reflected by Jones’ sentence. I commend the outstanding work of the IRS Criminal Investigation and the FBI agents who investigated this case.”
“Mr. Jones spent years stealing from Fasteners Inc. by disguising his personal purchases as legitimate business expenses. His concealment efforts were acts taken to intentionally evade his personal income tax obligation,” said IRS-Criminal Investigation Special Agent in Charge Justin Campbell. “IRS-Criminal Investigation will continue to hold accountable executives who abuse their position of power and steal from the community and the U.S. tax system.”
This case was investigated by the Internal Revenue Service - Criminal Investigation and the Federal Bureau of Investigation. This case was prosecuted by George J.C. Jacobs, III, Assistant United States Attorney for the Eastern District of Washington.
Former California State Assemblyman Pleads Guilty to Money Laundering in Fraud Scheme Involving BART Coffee ShopsRead the Press Release
OAKLAND – Terrence Patrick Goggin pleaded guilty in federal court in San Francisco today to money laundering, announced United States Attorney David L. Anderson, Federal Bureau of Investigation Special Agent in Charge John F. Bennett, and Internal Revenue Service, Criminal Investigation (IRS-CI), Special Agent in Charge Kareem Carter. The plea was accepted by the Honorable James Donato, U.S. District Judge.
Goggin, 78, of San Francisco, is a former California State Assemblyman and current California-licensed attorney. According to his guilty plea, he admitted that, in 2013 and 2014, he was the founder and CEO of Metropolitan Coffee and Concession Company, LLC (“MC2”). From July 2007 to February 26, 2014, Goggin solicited investor money to build Peet’s Coffee retail centers, including two future centers that he claimed he would build at the Civic Center and Balboa Park BART stations. The investors for the MC2 projects included a group of four private equity investors who provided financing in September 2013 of $585,000 for the Civic Center project and an individual who invested $100,000 in September 2013 for the Balboa Park project. Goggin falsely represented to those investors that their money would be used to build out those specific future Peet’s Coffee retail centers, when, in truth, he planned to use the funds for other purposes. Goggin further admitted that he also failed to provide the investors with accurate information about the relationship between MC2 and BART and about the state of MC2’s finances. In addition, Goggin admitted that in September 2013 he diverted, and directed his employees to divert, nearly all of the $685,000 in investment funds to other business bank accounts associated with business ventures into which the investors had not agreed, or intended, to invest. Among other transfers, on September 12, 2013, the same day MC2 received $585,000 from the private equity investors, Goggin knowingly directed the transfer of $15,000 from the MC2 bank account to the business bank account of Aegis Atlantic LLC, a Delaware company of which Goggin was also CEO. That money was never used for the agreed-upon BART projects and was instead spent on other purposes.
On September 13, 2018, a federal grand jury returned a superseding indictment charging Goggin with four counts of wire fraud, in violation of 18 U.S.C. § 1343, and nine counts of money laundering, in violation of 18 U.S.C. § 1957. Under the plea agreement, Goggin pleaded guilty to one count of money laundering and agreed to pay restitution of at least $685,000.
Goggin remains free on bond, pending sentencing. Judge Donato scheduled Goggin’s sentencing hearing for April 1, 2020. Goggin faces a maximum statutory penalty of ten years in prison and a fine of $250,000, plus restitution, for the money laundering conviction. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Katherine Lloyd-Lovett is prosecuting the case with the assistance of Rebecca Shelton. The prosecution is the result of an investigation by the FBI and the IRS-CI.
Former CVS Employee Sentenced for Stealing over $2 Million Worth of Diabetic Test StripsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Antonio Rivera, 36, of Williamsville, NY, who was convicted of wire fraud, was sentenced to serve 30 months in prison by U.S. District Judge Elizabeth A. Wolford. The defendant was also ordered to pay $2,500,000 in restitution to CVS Pharmacy.
Assistant U.S. Attorney Melissa Marangola, who handled the case, stated that the defendant was employed as a Senior Assistant Purchasing Associate for CVS Pharmacy. This position required Rivera to order a variety of retail products sold by CVS, including diabetic test strips.
In July, 2018, CVS's internal systems red flagged the purchasing of diabetic test strips at a CVS located in Rochester, NY. A package located in the store’s shipping area did not have a CVS label, included Rivera’s return address, and came from a company with which CVS does not do business. A subsequent internal investigation by CVS determined that Rivera routinely purchased diabetic test strips in excessive amounts, well over the need for that CVS location. The audit could not account for 20,203 boxes purchased by Rivera, for a total financial loss of approximately $2,535,307.62.
The defendant ordered surplus diabetic test strips and then intercepted the shipments once they arrived. He then sold the stolen product to a third party located in the State of Florida. A forensic accounting of Rivera’s bank accounts identified deposits which represented payments for the fraudulently obtained diabetic test strips that he sold.
The sentencing is the result of an investigation by the Rochester Office of the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, and the New York State Department of Financial Services, under the direction of Superintendent Linda Lacewell.
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Final rip crew members ordered to federal prisonRead the Press Release
HOUSTON – Three Houston men have been sentenced for their participation in a rip crew, with the leader receiving a significant 30-year-term, announced U.S. Attorney Ryan Patrick.
Mike Piedra, 36, pleaded guilty Aug. 9, 2018, while Efrain Delgado, 33, and Jesse Perez, 45, admitted their guilt March 5, 2018. The men acknowledged their roles in a conspiracy with intent to distribute cocaine and conspiracy to use, carry or possess a firearm during and in relation to a drug trafficking crime.
Today, Chief U.S. District Chief Judge Lee H. Rosenthal sentenced Delgado and Perez to serve 150 and 160 months, respectively. On Nov. 6, Piedra was ordered to serve 360 months for his role as the leader of the group.
At Piedra’s sentencing, the court heard evidence and testimony regarding Piedra’s extensive efforts to obstruct justice in this case. He had an elaborate scheme to persuade his fellow crew members to take the fall for him. If that failed, he wanted them to take their cases to trial so he could cooperate, testify against them and potentially earn a reduced sentence. His efforts failed.
In imposing the sentence, Chief Rosenthal described Piedra’s crime as a “sinister plot” and noted he had earned every month of his 30-year sentence.
A drug rip crew targets stash houses cartel members use to store drugs for further distribution in the United States.
Authorities investigated Piedra’s rip crew, whose members were already gang members with extensive experience in violent robberies. The undercover operation involved the supposed robbery of a stash house where 20 kilograms of cocaine was allegedly being stored. The crew members outlined in detail the violence they would use to carry out the robbery and boasted about their prior and violent experience committing similar crimes.
Piedra was the mastermind behind the robbery crew. He would not be present at the actual robbery, but would organize it from behind the scenes. He also provided the weapons and manpower to commit the crime. Delgado and Perez committed the robbery itself and engaged in the violence necessary to rob the stash house and steal the drugs.
There was no actual stash house. On July 23, 2015, a combined law enforcement operation resulted in the arrests of all three men without risk to the community.
They have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Houston Police Department conducted the joint investigation. Assistant U.S. Attorney Sharad S. Khandelwal prosecuted the case.
Easthampton Attorney Pleads Guilty to Financial Fraud ChargesRead the Press Release
BOSTON – An Easthampton attorney pleaded guilty yesterday in federal court in Springfield to numerous financial fraud charges.
Phillip R. Williams, pleaded guilty to 15 counts of wire fraud, two counts of engaging in financial transactions greater than $10,000 of proceeds derived from criminal activity, six counts of money laundering and two counts of tax fraud. Judge Mark G. Mastroianni scheduled sentencing for March 26, 2019.
As a licensed attorney, Williams maintained various bank accounts, including Lawyers’ Trust Accounts, and was required to hold funds with the care required of a professional fiduciary, for the exclusive benefit of his clients.
In 2014, Williams engaged in numerous personal transactions with $453,695 belonging to two individuals who had transferred the funds into one of Williams’s Lawyer’s Trust Accounts for purposes of obtaining a bank loan. In April 2015, Williams failed to report the stolen money on his 2014 individual federal income tax return, and then again failed to report it on his amended return.
Between April 14, 2015 and Nov. 1, 2017, Williams received $230,500 from a client in three checks to purchase land. Williams deposited these funds into his bank accounts, but he did not use the funds to purchase land for the client, and instead engaged in various personal transactions with the money. In 2018, Williams sent e-mails to the client that falsely indicated that he had used the money to purchase land.
Between June 2, 2017 and October 17, 2018, Williams fraudulently obtained loans in the name of the client and his company from two commercial lenders. For the loans, Williams falsely witnessed or notarized the forged signature of the client, who did not authorize or even know about the fraudulent loan applications. As a result, one of the lenders lent a total of $340,000, and the other lent a total of $334,000. Williams received four wire transfers of loan proceeds to his bank accounts totaling $379,888, which he spent for his own personal use. In February 2019, after one of the commercial lenders sought repayment of its loans, Williams sent fraudulent e-mails attaching a mortgage on his home that bore the falsely notarized and forged signature of his ex-wife, a false pre-approval letter for a loan to his mother that bore the forged signature of a bank officer, and a false power of attorney that bore the forged signature of the client.
In addition, between Feb. 1, 2019 and March 31, 2019, Williams defrauded a private investment firm of approximately $1.1 million, and attempted to defraud another private investment firm of approximately $1.2 million, both concerning his purchase of a property in Saint Petersburg, Fla.
Lastly, between Jan. 16, 2019 and March 2, 2019, Williams attempted to defraud three other commercial lenders by obtaining loans (in the amounts of $1.365 million, $1.35 million, and $1.7 million), either on behalf of his client or himself, to purchase a property in Boston.
The charges of wire fraud and money laundering provide for a sentence of up to 20 years in prison, five years of supervised release and a fine of $250,000. The charges of engaging in financial transactions greater than $10,000 provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. The charges of tax fraud provide for a sentence of up to three years in prison, three years of supervised release and a fine of $100,000. Sentences are imposed based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kristina O’Connell, Special Agent In Charge of the Internal Revenue Service, Criminal Investigation, New England Field Division; and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Steven H. Breslow of Lelling’s Springfield Branch Office is prosecuting the case.
Detroit Man Sentenced to Two Years in Prison for Impersonating Deceased Relatives and Stealing More than $800,000 in Government BenefitsRead the Press Release
A Detroit man was sentenced yesterday to twenty-four months in prison for stealing more than eight hundred thousand dollars from the federal government U.S. Attorney Matthew Schneider announced.
Schneider was joined in the announcement by Thomas W. South, Deputy Assistant Inspector General for Investigations, Office of Personnel Management’s Office of the Inspector General; and Special Agent in Charge Gregg Hirstein, Department Veterans Affairs Office of the Inspector General.
Kendrick Allen Gills, 64, was sentenced by U.S. District Judge Arthur J. Tarnow in Detroit, Michigan. After the conclusion of his prison term, Gills must also spend three years on supervised release. The Court further ordered Gills to pay full restitution to the government.
Gill’s relative Jack Farmer passed away sometime in 2004. At that time, Farmer was receiving a federal pension from the Office of Personnel Management (OPM) and because OPM was unaware of his death, OPM continued to issue monthly Treasury checks in Farmer’s name. The erroneous payments continued for approximately 14 years—$566,547.00 in total. Gills unlawfully converted these payments to his own use, primarily making electronic withdrawals from their joint bank account, but also forging Farmer’s signature on at least one check. Significantly, Gills concealed Farmer’s death by submitting multiple forms to the Office of Personnel Management on Farmer’s behalf, making it look as though Farmer was still alive and living with Gills.
During the same period, Gills also unlawfully retained $245,969.24 in payments made to another deceased relative by the Department of Veterans Affairs.
This case was investigated by special agents from OPM-OIG, with the assistance of special agents from VA-OIG, and was prosecuted by Assistant U.S. Attorney Ryan A. Particka.
Department of Justice Awards More than $376 Million in Grants to Promote Public SafetyRead the Press Release
Portland, Maine: The Department of Justice today announced that it has awarded more than $376 million in grant funding to enhance state, local and tribal law enforcement operations and reinforce public safety efforts in jurisdictions across the United States. Over $1.2 million will support public safety activities in the District of Maine. The awards were made by the Department’s Office of Justice Programs (OJP).
“Crime and violence hold families, friends and neighborhoods hostage, and they rip communities apart,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “These programs help restore the health and safety of crime-ravaged communities by supporting prevention activities, aiding in the apprehension and prosecution of perpetrators, facilitating appropriate sentencing and adjudication, and providing communities and their residents the means for recovery and healing.”
The awards announced today support an array of crime-fighting initiatives, including the quarter-billion dollar Edward Byrne Justice Assistance Grants Program, which funds public safety efforts in 929 state, local and tribal jurisdictions. Funding also supports sex offender registration and notification, law enforcement-based victim services, the testing of sexual assault kits, and programs designed to address youth with sexual behavioral problems. Other awards will focus on wrongful convictions, intellectual property enforcement, innovative prosecution strategies and the safety and effectiveness of corrections systems.
“I’m proud of the long-standing partnerships the Department of Justice has with state and local law enforcement agencies in Maine,” U.S. Attorney Halsey B. Frank said. “The grants announced today will help keep the people of Maine safe and ensure that those who commit crimes in our state are brought to justice.”
The following awards were made to jurisdictions in Maine:
Awardee
Amount of Award
State of Maine
$977,989
City of Portland
$96,898
City of Biddeford
$59,006
City of Lewiston
$38,577
City of Augusta
$36,865
Lincoln County
$10,728
For more information about the programs and awards announced today, visit the OJP Awards Data webpage.
OJP, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training and technical assistance, and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
Defense Contractor Agrees to Pay $45 Million to Resolve Criminal Obstruction Charges and Civil False Claims Act AllegationsRead the Press Release
WASHINGTON – Unitrans International Inc. (Unitrans), a privately held Virginia defense contracting company, has agreed to pay $45 million to resolve criminal obstruction charges and civil False Claims Act allegations relating to the illegal transportation of goods across Iran in connection with a contract to provide material and logistical support to U.S. troops in Afghanistan.
Assistant Attorney General Brian Benczkowski of the Justice Department’s Criminal Division, Assistant Attorney General Jody Hunt of the Justice Department’s Civil Division, U.S. Attorney Zachary Terwilliger of the Eastern District of Virginia, Special Agent in Charge Raymond Villanueva of U.S. Immigrations and Customs Enforcement’s Homeland Security Investigations’ (HSI) Washington, D.C. Field Office, Special Inspector General for Afghanistan Reconstruction (SIGAR) John F. Sopko, and Special Agent in Charge Robert E. Craig Jr. of the Defense Criminal Investigative Service - Mid-Atlantic Field Office (DCIS) made the announcement.
As part of the global resolution, Unitrans entered into a non-prosecution agreement (NPA) with the Department of Justice and agreed to pay $31.5 million as a combined criminal monetary penalty and victim compensation payment amount in this matter.
In connection with the NPA, Unitrans admitted that certain of its officers, as well as officers of Anham FZCO (Anham), an associated Dubai Free Zone company incorporated under the laws of the United Arab Emirates, obstructed proceedings pending before the U.S. Defense Logistics Agency (DLA). In June 2012, the DLA awarded Anham a contract to provide material and logistical support to U.S. troops in Afghanistan. This contract required Anham to certify that it would comply with all executive orders, proclamations and statutes that prohibit U.S. persons and companies from shipping materials through Iran.
Between November 2011 and May 2012, officers of Unitrans, which provided logistical services to Anham, facilitated the transportation of construction materials to Afghanistan through Iran. These materials were used in the construction of a warehouse that Anham used to assist in the performance of the troop support contract that Anham had with the DLA. At the time of the shipments, high level officers at Unitrans and Anham were aware of the activity and took no action to stop the conduct, Unitrans admitted.
According to the factual statement agreed to as part of the NPA, on Sept. 23, 2013, Anham’s then-CEO, who was also an indirect and partial owner of Unitrans, sent an email to a representative of DLA about the shipments to Afghanistan through Iran. The email stated: “At no time did Anham acquire any goods in, or from, Iran. The senior team at Anham had no knowledge of these shipments and upon learning of this possibility made a voluntary disclosure to the U.S. government that Anham was investigating whether any violations had in fact occurred.”
The Department of Justice has separately entered into non-prosecution agreements with three individuals who were previously indicted in relation to the scheme.
To resolve a related civil matter, Unitrans also has agreed to pay $27 million to resolve allegations under the False Claims Act that it, along with Anham fraudulently induced DLA and the Army to award wartime contracts for food and trucks by knowingly and falsely certifying compliance with United States sanctions against Iran. The civil agreement also resolves allegations that Anham FZCO knowingly and falsely represented construction progress on its Bagram warehouse to induce DLA to award the prime vendor contract to provide food to U.S. troops in Afghanistan. The civil settlement will credit $13.5 million of Unitrans’ payment under the NPA, and require an additional payment by Unitrans of $13.5 million. The defendants did not admit liability as a result of the Civil Agreement. The allegations resolved by the civil settlement were brought in a lawsuit filed under the qui tam or whistleblower provisions of the False Claims Act by Rory Maxwell, John Bush, and Supreme Foodservice GmbH. The Act permits private parties to sue on behalf of the government for false claims and receive a share of any recovery. Under the Act, the United States may intervene in such a suit or, as it did in this case, allow the private party to pursue the action.
HSI–Washington, D.C., DCIS, and investigators from SIGAR investigated the criminal case. Trial Attorneys James Gelber and Danny Nguyen of the Criminal Division’s Fraud Section prosecuted the case. Trial Attorney Art Coulter of the Civil Division’s Fraud Section and Assistant U.S. Attorney Krista Anderson of the Eastern District of Virginia handled the civil litigation supported by the Defense Contract Audit Agency.
The qui tam case is captioned U.S. ex rel. Maxwell, et al. v. Anham, USA, et al., 1:14-CV-0156 (E.D.VA). There has been no determination of liability in the civil case.
Credit Card Skimming in Kansas Sends Florida Man to Federal PrisonRead the Press Release
KANSAS CITY, KAN. - A Florida man who planted credit card skimming devices on ATMs in Kansas was sentenced today to 24 months in federal prison, U.S. Attorney Stephen McAllister said.
Carlos Alberto Campos Rojas, 29, Summerfield, Fla., pleaded guilty to one count of access device fraud. In his plea, he admitted placing skimming devices and pinhole cameras on ATMs in Overland Park and Olathe. A corporate security officer notified local police, who did surveillance to identify a rental car that visited the ATMs on a daily basis. They followed the car back to a hotel in Kansas City, Mo.
McAllister commended the Overland Park and Olathe police departments, the U.S. Secret Service and Assistant U.S. Attorney Chris Oakley for their work on the case.
Concord Man Pleads Guilty to Being a Felon in Possession of a Firearm and AmmunitionRead the Press Release
CONCORD - David Weekly, 23, of Concord, pleaded guilty in federal court to unlawfully possessing a firearm and ammunition, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on January 2, 2019, a Manchester police officer stopped a vehicle for not having its lights turned on. The officer approached the vehicle and recognized Weekly from previous contacts.
When Weekly opened the side window, the officer noted a strong smell of freshly burnt marijuana. The officer also noted a bulge in Weekly’s waistband and asked Weekly to step out of the vehicle. As soon as Weekly stepped out of the vehicle, Weekly admitted that he had a gun in his waist. The officer found a handgun and a loaded extended 31-round magazine in Weekly’s possession. Weekly is a felon and prohibited from possessing a firearm or ammunition.
The firearm had been reported stolen on August 23, 2018 in Manchester.
Weekly is scheduled to be sentenced on March 26, 2020.
“In order to reduce violent crime, it is vital to keep guns out of the hands of criminals,” said U.S. Attorney Murray. “To this end, federal law prohibits convicted felons from possessing firearms. In conjunction with our law enforcement partners, we will vigorously enforce this law by identifying and prosecuting criminals who use or possess firearms.”
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Manchester Police Department. The case is being prosecuted by Assistant U.S. Attorney Debra M Walsh.
The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes.
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Citizen of Peru Sentenced to Prison for Illegally Reentering U.S. after Being DeportedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that CESAR RUBEN YLLESCAS, 45, a citizen of Peru last residing in Hartford, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 10 months of imprisonment for illegally reentering the U.S. after being deported.
According to court documents and statements made in court, on August 1, 2014, Yllescas was arrested by Hartford Police for possession of narcotics. On December 21, 2015, he pleaded guilty in state court to the drug offense and to a charge of failing to appear for a related court appearance. Yllescas served approximately six months of imprisonment and was removed to Peru in June 2016.
Yllescas was arrested on May 8, 2019, in Hartford, and has been detained since his arrest. On September 11, he pleaded guilty to illegal reentry.
This matter was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement. The case was prosecuted by Assistant U.S. Attorney Margaret M. Donovan.
Chicago Man Sentenced to More Than 16 Years in Prison for Shooting ATF AgentRead the Press Release
CHICAGO — A federal judge today sentenced a Chicago man to more than 16 years in prison for shooting an agent from the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives.
ERNESTO GODINEZ shot the agent on May 4, 2018, in the Back of the Yards neighborhood of Chicago. At the time of the early morning shooting, the agent and several law enforcement officers were conducting a covert investigation in the 4300 block of South Hermitage Avenue. The agent was wounded in the head but survived.
A federal jury earlier this year convicted Godinez, 29, of both counts against him, including one count of assault of a federal officer, and one count of discharging a firearm during a crime of violence. U.S. District Judge Harry D. Leinenweber imposed a sentence of 16 years and eight months in prison.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, and Timothy Jones, Special Agent-in-Charge of the Chicago Field Division of ATF. Substantial assistance was provided by the Chicago Police Department, FBI, U.S. Marshals Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Drug Enforcement Administration, and Illinois State Police.
“The depravity of the defendant’s crime is remarkable,” Assistant U.S. Attorneys Kavitha J. Babu and Nicholas J. Eichenseer argued in the government’s sentencing memorandum. “This was indiscriminate, deadly violence by a recidivist shooter. It is critical that assaults on law enforcement be met with serious punishment.”
“The primary goal of our violent crime prosecutions is to ensure public safety,” said U.S. Attorney Lausch. “To that end, we will continue to aggressively prosecute repeat violent offenders like Defendant Godinez in order to hold them accountable for their reprehensible conduct and to deter others from committing similar crimes. I commend the AUSAs, agents, and officers involved in this case for their outstanding work to seek justice. Our office will continue to use every available federal law enforcement tool to investigate, prosecute, and seek stiff prison sentences for those offenders who illegally use, possess, or transfer firearms.”
“This experience emboldens us to continue in our efforts to reduce gun violence in the city of Chicago,” said ATF SAC Jones. “We stand together with the families of all victims of violence in our city as they seek the closure we found today. We commit all of ATF’s resources to investigate violent crimes in partnership with the Chicago Police Department to ensure that offenders are prosecuted to the fullest extent of the law.”
Chicago Man Sentenced to More Than 16 Years in Federal Prison for Shooting ATF AgentRead the Press Release
CHICAGO — A federal judge today sentenced a Chicago man to more than 16 years in prison for shooting an agent from the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives.
ERNESTO GODINEZ shot the agent on May 4, 2018, in the Back of the Yards neighborhood of Chicago. At the time of the early morning shooting, the agent and several law enforcement officers were conducting a covert investigation in the 4300 block of South Hermitage Avenue. The agent was wounded in the head but survived.
A federal jury earlier this year convicted Godinez, 29, of both counts against him, including one count of assault of a federal officer, and one count of discharging a firearm during a crime of violence. U.S. District Judge Harry D. Leinenweber imposed a sentence of 16 years and eight months in prison.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, and Timothy Jones, Special Agent-in-Charge of the Chicago Field Division of ATF. Substantial assistance was provided by the Chicago Police Department, FBI, U.S. Marshals Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Drug Enforcement Administration, and Illinois State Police.
“The depravity of the defendant’s crime is remarkable,” Assistant U.S. Attorneys Kavitha J. Babu and Nicholas J. Eichenseer argued in the government’s sentencing memorandum. “This was indiscriminate, deadly violence by a recidivist shooter. It is critical that assaults on law enforcement be met with serious punishment.”
“The primary goal of our violent crime prosecutions is to ensure public safety,” said U.S. Attorney Lausch. “To that end, we will continue to aggressively prosecute repeat violent offenders like Defendant Godinez in order to hold them accountable for their reprehensible conduct and to deter others from committing similar crimes. I commend the AUSAs, agents, and officers involved in this case for their outstanding work to seek justice. Our office will continue to use every available federal law enforcement tool to investigate, prosecute, and seek stiff prison sentences for those offenders who illegally use, possess, or transfer firearms.”
“This experience emboldens us to continue in our efforts to reduce gun violence in the city of Chicago,” said ATF SAC Jones. “We stand together with the families of all victims of violence in our city as they seek the closure we found today. We commit all of ATF’s resources to investigate violent crimes in partnership with the Chicago Police Department to ensure that offenders are prosecuted to the fullest extent of the law.”
Camden County Man Charged with Being Felon in Possession of Weapon, Unlawfully Possessing Fake Law Enforcement CredentialsRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man previously convicted of multiple felony offenses, including robbery, burglary, and aggravated assault, was indicted today for unlawful possession of a handgun and possessing fake law enforcement officer credentials, U.S. Attorney Craig Carpenito announced.
Warren E. Shelton, 53, of Chesilhurst, New Jersey, is charged with one count of unlawful possession of imitation badges, identification cards, and other insignia prescribed for use by officers of a department or agency of the United States, and one count of possession of a firearm by a convicted felon. He will be arraigned at a later date.
According to documents filed in this case and statements made in court:
Law enforcement authorities learned Shelton had designed and acquired counterfeit Department of Homeland Security, Federal Protective Service (FPS), credentials and business identification cards, falsely representing that he was employed as a special agent with FPS.
During a court-authorized search of Shelton’s home in May 2018, investigators located and seized counterfeit FPS credentials, business identification cards, and a badge falsely representing that Shelton was employed as a special agent and authorized to carry a weapon and enforce federal laws. They also located a Colt .45 caliber handgun and ammunition along with two blank guns that resembled real firearms. As a previously convicted felon, Shelton is prohibited from possessing a firearm. Shelton was charged by criminal complaint on May 7, 2018 with being a felon in possession of a firearm and has been detained since.
Shelton faces a maximum potential penalty of 10 years in prison and a fine of up to $250,000 for the firearm offense. He also faces up to six months in prison and fine of up to $5,000 for possession of the counterfeit FPS credentials and badge.
U.S. Attorney Carpenito credited special agents of the Department of Homeland Security (DHS), Office of Inspector General (OIG), under the direction of Acting Special Agent in Charge Karen Jordan; special agents of the Department of Homeland Security, Federal Protective Services (FPS), under the direction of Supervisory Special Agent Anthony Fuscellaro; special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael; special agents of the U.S. Secret Service, Philadelphia Field Office, under the direction of Special Agent in Charge James Henry; special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge Charlie J. Patterson; and the Camden County Police Department, under the direction of Chief Joseph Wysocki.
The government is represented by Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office Criminal Division in Camden.
The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Thomas Young Esq., Camden
California Woman Sentenced on Drug and Money Laundering ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Sonia Hernandez, 44, of Norwalk, CA, who was convicted of conspiracy to possess with intent to distribute heroin, fentanyl, and cocaine, and money laundering conspiracy, was sentenced to serve 72 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Meghan A. Tokash, who handled the case, stated that in November 2007, the defendant was hired by a staffing agency in Los Angeles, CA, owned by co-defendant Herman Aguirre. In 2011, Aguirre closed most of the legitimate business operations but retained the defendant to work for him. Operations continued out of a warehouse in Montebello, CA, and Hernandez continued to provide secretarial support for the business. At some point between 2011 and 2013, the business transitioned to the illegal trafficking of narcotics and the defendant continued to assist Aguirre in that venture. From January 2013 to September 2015, Hernandez sold quantities of fentanyl, cocaine, and heroin.
In furtherance of the drug trafficking conspiracy, the defendant on two occasions transported shipments of cocaine and heroin to the Western District of New York. On May 23-26, 2014, Hernandez drove in a rental vehicle with co-defendant Martha Aguirre from Los Angeles to Buffalo. Eight kilograms of cocaine were hidden inside the rental vehicle. Additionally, on June 21, 2014, a Nebraska State Patrol officer stopped the defendant while she was driving a rental car on Interstate 80 in Seward County, Nebraska. Inside the rental vehicle were seven kilograms of cocaine and 10 kilograms of heroin. All 17 kilograms were destined for the Western District of New York to be distributed.
In addition, Herman Aguirre used “front” companies to launder over $12,000,000 in drug proceeds from Buffalo to Los Angeles, including Triton Foods, Inc. and Kamora Investment Enterprises, Inc., which were located in the State of California. Another fictitious company, Corral Seafoods, LLC, registered in the State of New York, was allegedly located in Cheektowaga, NY, but proved to be completely fake. Defendant Hernandez created fake invoices for the sale of sea cucumbers by these companies to the Western District of New York. Those invoices were intended to conceal the true source of these assets, which were the sale of cocaine, heroin, and fentanyl. The defendant also admitted to receiving cash totaling $1,997,174.07 that had been withdrawn from banks in the Central District of California and to providing that currency to Herman Aguirre for purposes of facilitating the unlawful activities organization.
On May 10, 2016, while under oath and testifying in a proceeding before a Federal Grand Jury, Hernandez made false material declarations regarding her participation in this conspiracy. The defendant falsely claimed before the Grand Jury that she had no knowledge of any drugs in the rental vehicles driven to the Western District of New York.
Hernandez is one of 17 defendants convicted in this case.
Sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; Homeland Security Investigations, under the direction of Special-Agent-in Charge Kevin Kelly; the Internal Revenue Service, Criminal Investigation Division, under the direction of Jonathan Larson; the Niagara County Drug Task Force, under the direction of Sheriff James Voutour; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the Lockport Police Department, under the direction of Acting Chief Steven Preisch; the Montebello, California Police Department; the Nebraska State Patrol; and the DEA, Los Angeles.
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California Man Guilty of Heroin TraffickingRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Saul Carrasco, age 35, of Simi Valley, California, pleaded guilty on December 3, 2019, before U.S. District Court Judge Malachy E. Mannion, to conspiracy to distribute and possess with intent to distribute more than a kilogram of heroin.
According to United States Attorney David J. Freed, Carrasco admitted to participating in the conspiracy during July through November 2018. Carrasco also admitted that he agreed with others to transport the heroin from California to Carbon County, Pennsylvania. A kilogram of heroin is approximately equivalent to 40,000 retail bags of heroin.
Judge Mannion ordered a pre-sentence investigation to be completed. Sentencing will be scheduled at a later date.
Carrasco was indicted by a grand jury in November 2018, as a result of an investigation by the Drug Enforcement Administration, the Pennsylvania State Police and the Illinois State Police. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
The maximum penalty under federal law for this offenses is life imprisonment, a term of supervised release following imprisonment, and a fine. There is also a mandatory minimum sentence of 10 years’ imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Baton Rouge Man Sentenced to Federal Prison for Illegally Possessing a FirearmRead the Press Release
United States Attorney Brandon J. Fremin announced that U.S. District Judge John W. deGravelles sentenced Demarcus Davis, age 26, of Baton Rouge, Louisiana, to 75 months in federal prison following his conviction of possessing a firearm by a convicted felon. The Court further sentenced Davis to 3 years of supervised release following his term of imprisonment and ordered that the firearm involved be forfeited.
According to admissions made as part of the guilty plea, on August 18, 2018, the Livingston Parish Sheriff’s Office was conducting a sobriety checkpoint on Highway 42. Davis’ vehicle was swerving as it entered the screening line, almost striking a metal guard rail, and Davis was seen reaching toward the floorboard upon entering the screening line.
Davis’ speech was rambling, his hands were shaking, and his travel plans did not make sense. Detectives observed a pineapple Fanta soft drink in the console that appeared to contain a controlled substance. Davis did not have a driver's license and admitted to being on probation for possession of codeine syrup.
After Davis provided verbal consent to search the vehicle, deputies noticed a plastic panel on the driver-side, lower-middle console that appeared to be broken or loose. Upon removing the plastic piece, a loaded FN, Model Five-Seven, 5.7mm handgun was located.
Prior to possessing the firearm, Davis was convicted in East Baton Rouge Parish in March 2017 of possession of codeine and November 2014 of simple robbery.
U.S. Attorney Fremin stated, “This conviction and sentence is the result of keen law enforcement and prosecution to ensure our district is free from convicted felons who illegally possess firearms. I want to thank our prosecutor, the Livingston Parish Sheriff’s Office, and the ATF for their excellent work in removing this defendant from the streets of Livingston Parish.”
Livingston Parish Sheriff Jason Ard stated, “I am proud of those at the LPSO and those in our LPSO Narcotics Division. Experience helped to break this case. The working relationship we have with our law enforcement partners and the U.S. Attorney’s Office helped to make a solid case for prosecution.’
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Bureau of Alcohol, Tobacco, Firearms and Explosives, with substantial assistance from the Livingston Parish Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney William Morris.
Batavia Man Pleads Guilty to EnticementRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Guillermo Torres-Acevedo, 23, of Batavia, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to enticing a minor to travel to engage in criminal sexual activity. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Meghan A. Tokash, who is handling the case, stated that on November 25, 2018, the defendant, then a 22 year old man, had sexual relations with Victim 1, a 14 year old girl. Torres-Acevedo was arrested the following day for, among other charges, rape in violation of New York Penal Law.
Following his arrest, the defendant persuaded Victim 1 to travel with him out of state to continue their relationship. On November 29, 2018, Torres-Acevedo picked up Victim 1 from school in Genesee County, NY, and drove her to Pennsylvania, where they had sexual intercourse. Under Pennsylvania law, that constituted the crime of statutory sexual assault.
The plea is the result of an investigation by the Genesee County Sheriff’s Office, under the direction of Sheriff William A. Sheron, Jr.; the New York State Police, under the direction of Major Eric Laughton; the Pennsylvania State Police, under the direction of Commissioner Lieutenant Colonel Robert Evanchick; and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
Sentencing is scheduled for February 13, 2020, before Judge Geraci.# # # #
Antioch Man Sentenced to 41 Months for Possession of AmmunitionRead the Press Release
OAKLAND – David Leigh Cook was sentenced today to 41 months in prison for being a felon in possession of ammunition, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The sentence was handed down by the Honorable James Donato, U.S. District Judge.
Cook, 51, of Antioch, Calif., pleaded guilty to the charge on July 17, 2019. According to the plea agreement, Cook admitted that at approximately 3:45 p.m. on Super Bowl Sunday, February 3, 2019, he was in possession of a firearm and ammunition in Antioch, Calif., when he became involved in a dispute with another person. The dispute escalated, and the defendant fired his gun at the other man, striking him at least once. The defendant walked away, returned to his vehicle, and drove off. The defendant was arrested the next day. At the time of his arrest, the defendant did not possess a firearm; the firearm used in the Super Bowl Sunday shooting has never been recovered. The defendant acknowledged that at the time of the Super Bowl Sunday shooting, he knew he previously had been convicted of felonies in 2008, 2010, 2011, 2012, and 2014, and therefore was not eligible to possess a firearm or ammunition.
A federal grand jury indicted Cook on April 11, 2019. He was charged with being a felon in possession of ammunition, in violation of 18 U.S.C. § 922(g)(1).
The investigation began when emergency medical personnel responded to the scene of the Super Bowl Sunday shooting and rendered emergency medical treatment to stem the victim’s life-threatening blood loss. Emergency medical personnel and responding law enforcement officers observed spent ammunition casings in close proximity to the victim’s location.
In addition to the prison term, Judge Donato sentenced the defendant to a three-year period of supervised release. After today’s sentencing hearing, the defendant was returned to state custody where he faces additional charges.
Assistant U.S. Attorney Jonathan U. Lee is prosecuting the case with the assistance of Jessica Rodriguez Gonzalez and Kathleen Turner. The prosecution is the result of an investigation by the Federal Bureau of Investigation and the Antioch Police Department.
Agencies throughout the Southern District awarded grants from U.S. Department of JusticeRead the Press Release
SAVANNAH, GA: A series of grants awarded by the U.S. Department of Justice will fund a broad variety of crime-fighting initiatives in communities across the Southern District of Georgia.
Part of more than $376 million in nationwide grants from the Department of Justice Office of Justice Programs (OJP), the grants range from $11,013 for the city of Hinesville, Ga., to a $399,998 grant to Chatham County, Ga., Altogether, eight grants to six agencies or government entities in the Southern District total more than $634,176, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia.
“Crime and violence hold families, friends and neighborhoods hostage, and they rip communities apart,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “These programs help restore the health and safety of crime-ravaged communities by supporting prevention activities, aiding in the apprehension and prosecution of perpetrators, facilitating appropriate sentencing and adjudication, and providing communities and their residents the means for recovery and healing.”
“These grants represent a significant boost to our law enforcement partners throughout the Southern District,” said U.S. Attorney Christine. “Whether large or small, this additional funding will provide a wide range of assistance for continuing efforts to improve safety and security in our communities.”
Those receiving awards include:
- Chatham County, receiving a $399,998 grant from the Bureau of Justice Assistance to improve responses and outcomes for individuals with mental illnesses or substance abuse who come in contact with the justice system;
- The city of Savannah, receiving a $111,462 Edward Byrne Memorial Justice Assistance Grant from the Bureau of Justice Assistance to support a broad range of activities to prevent and control crime based on local needs and conditions;
- Augusta-Richmond County, receiving a $31,826 Edward Byrne Memorial Justice Assistance Grant from the Bureau of Justice Assistance to support a broad range of activities to prevent and control crime based on local needs and conditions; and, a $19,400 grant from the Bureau of Justice Statistics to assist in transitioning crime statistic reporting to the FBI’s National Incident-Based Reporting System (NIBRS);
- The city of Hinesville, receiving an $18,000 grant from the Bureau of Justice Assistance to support the implementation of body-worn cameras for police officers, and an $11,013 Edward Byrne Memorial Justice Assistance Grant from the Bureau of Justice Assistance to support a broad range of activities to prevent and control crime based on local needs and conditions;
- The city of Hazlehurst, receiving a $26,000 grant from the Bureau of Justice Assistance to support the implementation of body-worn cameras for police officers; and,
- Glynn County, receiving a $16,477 Edward Byrne Memorial Justice Assistance Grant from the Bureau of Justice Assistance to support a broad range of activities to prevent and control crime based on local needs and conditions.
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training and technical assistance, and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
10 Individuals Charged with Social Security Fraud in Operation Dead RingerRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the filing of federal charges against 10 individuals in Operation Dead Ringer. The individuals are charged in 10 separate cases with cumulatively stealing more than $500,000 by collecting benefits from the Social Security Administration on behalf of beneficiaries who were actually deceased. The maximum penalty for stealing federal benefits is 10 years in federal prison per count.
Those charged include:
Shayontay Johnson (32, Belleair) was charged with theft of government funds. According to her plea agreement, from February 2016 through July 2018, Johnson fraudulently collected more than $22,300 of her mother’s Social Security benefits following her mother’s death on February 6, 2016.
Robert Miller (53, Valrico) has been charged with theft of government funds. According to the indictment, from December 2009 through June 2019, Miller fraudulently collected approximately $75,000 of his mother’s Social Security benefits following her death in December 2009.
Santos Flores (62, Lakeland) has been charged with theft of government funds. According to the indictment, from August 2013 through June 2019, Flores fraudulently collected approximately $82,900 of his sister’s Social Security benefits after her death in August 2013.
Susan Hatfield (45, Brooksville) has been charged with theft of government funds. According to the indictment, from May 2013 through May 2019, Hatfield fraudulently collected approximately $61,000 of her father’s Social Security benefits after his death in May 2013.
Peggy Etheridge (56, Brooksville) has been charged with theft of government funds. According to the indictment, from January 2015 through June 2019, Etheridge fraudulently collected approximately $49,000 of her mother’s Social Security benefits after her mother had died in December 2014.
Dina Salem (64, Tampa) has been charged with theft of government funds. According to the indictment, from August 2013 through February 2017, Salem fraudulently collected approximately $59,500 of her former partner’s Social Security benefits after his death in August 2013.
Deborah Leonhardt (60, Sebastian) has been charged with theft of government funds. According to the indictment, from October 2013 through April 2019, Leonhardt fraudulently collected approximately $82,000 of her partner’s Social Security benefits after his death in October 2013.
Sondra Luke (45, Cocoa) has been charged with theft of government funds. According to the indictment, from August 2013 through March 2019, Luke fraudulently collected approximately $83,000 of her mother’s Social Security benefits after her death in August 2013.
Alex Keith (34, Ormond Beach) has been charged with theft of government funds. According to the indictment, from December 2014 though May 2019, Keith fraudulently collected approximately $50,800 of his mother’s Social Security benefits after her death in December 2014.
James Heide (37, Summerfield) has been charged with theft of government funds. According to the indictment, from November 2013 through July 2019, Heide fraudulently collected approximately $84,900 of his mother’s Social Security benefits after her death in November 2013.
Operation Dead Ringer, initiated in the Middle District of Florida, aggressively targets those individuals who steal Social Security benefits inadvertently paid to deceased beneficiaries.
“Theft of government program dollars will not be tolerated,” said United States Attorney Maria Chapa Lopez. “Those who steal Social Security benefits threaten the integrity of the program and divert vital resources away from those who have earned them and need them most.”
“We will continue to work closely with the Social Security Administration and other agencies to identify beneficiary deaths and pursue those who misuse those payments after someone dies,” said Gail S. Ennis, Inspector General for the Social Security Administration. “I want to thank the United States Attorney’s Office for its support of our investigations and its efforts to bring these individuals to justice and recover funds for Social Security.”
The cases are being investigated by the Social Security Administration – Office of the Inspector General, with assistance from other federal and local law enforcement agencies. Special Assistant United States Attorney Suzanne Huyler is coordinating the Operation. She, along with Assistant United States Attorney Michael Felicetta, will be prosecuting the above cases.
An information and an indictment are merely formal charges that a defendant has committed a violation of federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
3 December 2019
“SCO” Gang Member Pleads Guilty in Drug Trafficking ConspiracyRead the Press Release
PITTSBURGH, PA – A former resident of the Pittsburgh area pleaded guilty in federal court to a charge of narcotics trafficking, United States Attorney Scott W. Brady announced today.
Rand Wolford, 31, formerly of Braddock PA, pleaded guilty to one count of conspiracy to distribute 28 grams or more of cocaine base, in the form commonly known as crack, before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that the Greater Pittsburgh Safe Streets Task Force conducted a long-term investigation of drug trafficking occurring in and around the Braddock section of Pittsburgh. Wolford and other individuals were identified as members or associates of a neighborhood based street gang, self-titled "SCO", which illegally distributed controlled substances in the Greater Pittsburgh Region. In January of 2019, investigators obtained authorization to conduct a federal wire investigation, which continued through May of 2019.
As to Wolford, the Court was informed that intercepted communications confirmed that Wolford was conspiring with others to possess with intent to distribute and distribute controlled substances. Wolford admitted, in conjunction with his guilty plea, that he is a member of "SCO." The Court was further informed that in conjunction with intercepted communications, law enforcement observed Wolford meeting with other members of the conspiracy at a location in Braddock where members of the conspiracy processed cocaine into cocaine base. Wolford accepted responsibility for obtaining multiple ounce quantities of cocaine base that he then distributed.
Judge Schwab scheduled sentencing for Wolford on April 30, 2020, at 10:00 AM. As to Wolford, the law provides for a sentence of not less than 5 years and not more than 40 years in prison, a fine of not more than $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. Wolford remains detained pending sentencing.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Drug Enforcement Administration, Bureau of Alcohol Tobacco Firearms and Explosives, United States Marshals Fugitive Task Force, Allegheny County Sheriff’s Office, Allegheny County Police Department, Pennsylvania State Police, Pennsylvania Attorney General’s Office Bureau of Narcotics, and the Pittsburgh Bureau of Police. Other assisting agencies include the Monroeville Police Department, Penn Hills Police Department, Wilkinsburg Police Department, and Allegheny County Adult Probation.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Ymer Shahini Sentenced to 18 Months in Connection with Scheme to Defraud Investors and ShareholdersRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that YMER SHAHINI was sentenced to 18 months in prison by United States District Judge P. Kevin Castel in connection with his role in a scheme to defraud shareholders of a publicly traded company and the investing public. SHAHINI pled guilty to one count of conspiracy to commit securities fraud on September 10, 2019.
U.S. Attorney Geoffrey S. Berman said: “Ymer Shahini played a strategic role in a multimillion-dollar fraud. He wittingly and willingly served as a straw man to conceal beneficial ownership of stock, which facilitated a fraudulent scheme that reaped tens of millions in illegal profits. Now Shahini has been sentenced to prison for his role in this massive fraud.”
According to the allegations contained in the Indictment:
From 2009 to 2011, YMER SHAHINI, along with co-defendants Jason Galanis, John Galanis, Derek Galanis, Gary Hirst, and Gavin Hamels, engaged in a scheme to defraud the shareholders of a publicly traded company called Gerova Financial Group, Ltd. (“Gerova”), and the investing public, by obtaining secret control over millions of shares of Gerova stock and then manipulating the market for the stock as the defendants caused their secretly held shares to be sold. As part of the scheme, the defendants fraudulently generated demand for Gerova stock by bribing investment advisers to purchase for client accounts the Gerova stock that was sold by the defendants, thereby enabling the defendants to cash out from the scheme and make millions in illegal profits.
As a part of the scheme to defraud, Jason Galanis obtained such control over Gerova so as to be able to cause Gerova to enter into transactions of his design, and for his benefit, including the issuance of Gerova stock. Jason Galanis obtained this control without identifying himself as an officer or director of Gerova to avoid the SEC-imposed bar that prohibited him from holding such positions at publicly traded companies. Among other means and methods, Jason Galanis, with the assistance of Gary Hirst, caused more than 5,000,000 shares of Gerova stock, which represented nearly half the company’s public float and which were intended for Jason Galanis’s ultimate benefit, to be issued to and held in the name of YMER SHAHINI, who knowingly served as a foreign nominee for Jason Galanis. SHAHINI, Jason Galanis, John Galanis, Derek Galanis, and Hirst understood that the purpose of the stock grant to SHAHINI was to disguise Jason Galanis’s ownership interest in the stock, and to evade the SEC’s regulations for issuing unregistered shares of stock.
At the same time, and as a further part of the scheme to defraud, John Galanis and Derek Galanis, among others, with the knowledge and approval of YMER SHAHINI and Jason Galanis, opened and managed brokerage accounts in the name of SHAHINI (the “SHAHINI Accounts”), effected the sale of Gerova stock from the SHAHINI Accounts, and received and concealed the proceeds, knowing that this activity was designed to conceal from the investing public Jason Galanis’s ownership of and control over the Gerova stock.
Jason Galanis also fraudulently induced investment advisers, including Gavin Hamels and others, to purchase shares of Gerova stock in the investment advisers’ client accounts by offering compensation and/or other benefits to the respective investment adviser. By causing the purchase of Gerova stock at the time, quantity, and/or price of their choosing, Jason Galanis was able to, among other things, effectuate the sale of large quantities of Gerova stock from the SHAHINI Accounts that Jason Galanis controlled, while artificially maintaining the price of Gerova stock through coordinated match trading. Such coordinated trading served to manipulate the market for Gerova stock and deceive the investing public. As a result, Jason Galanis and his co-conspirators reaped nearly $20 million in profits.
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SHAHINI, 49, a citizen of Kosovo, was the first defendant extradited to the United States pursuant to the extradition treaty between the United States and the Republic of Kosovo, which went into effect on June 13, 2019. In addition to his term of imprisonment, SHAHINI was sentenced to two years of supervised release, and was ordered to forfeit $310,000.
Mr. Berman praised the work of the United States Postal Inspection Service and the Federal Bureau of Investigation, and thanked the U.S. Securities and Exchange Commission for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Brian Blais and Rebecca Mermelstein are in charge of the prosecution.
Wabasha County Brothers Sentenced to Prison for Violent Home Invasion Robberies, One Resulting in Victim’s DeathRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of LENNIE DWAYNE BROOKS, 34, RANDY LORENZO BROOKS, 24, and AUTUMN MARIE NICHOLS, 21, to prison for their roles in a string of violent home invasion robberies. Senior Judge David S. Doty sentenced LENNIE BROOKS to 365 months in prison, RANDY BROOKS to 240 months in prison, and NICHOLS to 120 months in prison. On November 5, 2019, co-defendant ESPERANZA CARDENAS, 30, was sentenced to 50 months in prison.
United States Attorney Erica MacDonald stated, “Lennie and Randy Brooks carefully planned and carried out multiple violent home invasion robberies, one resulting in the death of a victim. Although nothing can replace the lost sense of safety and security of one’s home or the loss of a loved one, today’s sentencings offer some measure of justice for the victims.”
“After more than a year of investigation and court proceedings, the Brooks brothers’ victims have justice,” said Special Agent in Charge William Terry Henderson, of the ATF Saint Paul Field Division. “ATF has worked closely with the victims in this case to provide status updates, resources, and support to help recover from the traumatic experiences resulting from the brothers’ violent crime spree. No one deserves what these people went through, and our hope is that peace can be found in the finality of this sentencing. We are grateful to our many law enforcement partners whose efforts led to the apprehension of those responsible for these crimes and ultimately for the success of this case.”
According to the defendants’ guilty pleas and documents filed in court, LENNIE and RANDY BROOKS, on three separate occasions that are chargeable under the Hobbs Act, committed violent home invasion robberies and, in one incident, caused the death of a robbery victim. On October 6, 2018, LENNIE and RANDY BROOKS broke into a private residence located in Eden Prairie, Minnesota while NICHOLS waited in the getaway car. RANDY BROOKS held two victims at gunpoint while LENNIE BROOKS searched the house for money and valuables. During that time, one of the victims went into cardiac arrest, however neither defendant called for medical help nor did they allow the second victim to call for help. The defendants stole approximately $50,000 in cash, which was the business proceeds of the Shuang Hur Asian Markets located in Minneapolis and St. Paul, Minnesota. The defendants admitted that the victim who went into cardiac arrest died as a direct result of the home invasion.
On September 23, 2018, LENNIE and RANDY BROOKS broke into a private residence located in Ellendale, Minnesota while CARDENAS waited in the getaway car. RANDY BROOKS held two victims at gunpoint while LENNIE BROOKS searched the house for money and valuables. The defendants stole approximately $40,000 in cash, which was the business proceeds of the Holland Auction Company located in Ellendale, Minnesota.
On August 16, 2018, LENNIE and RANDY BROOKS broke into a private residence located in Waite Park, Minnesota. RANDY BROOKS held two victims at gunpoint while LENNIE BROOKS searched the house for money and valuables. The defendants stole approximately $180,000 in jewelry and gemstones, which belonged to Trisko Jewelry located in Waite Park, Minnesota.
The Hobbs Act, passed by Congress in 1946, prohibits actual or attempted robbery affecting interstate or foreign commerce “in any way or degree.”
This case was the result of a multi-jurisdictional investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), Eden Prairie Police Department, Steele County Sheriff’s Office, Woodbury Police Department, Cottage Grove Police Department, St. Paul Police Department, Minneapolis Police Department, Winona Police Department, Wabasha Police Department, Prior Lake Police Department, Southeast Minnesota Violent Crime Enforcement Team, St. Croix County Sheriff’s Office, Wabasha County Sheriff’s Office, Washington County Sheriff’s Office, Olmstead County Sheriff’s Office, Winona County Sheriff’s Office, Waite Park Police Department, Owatonna Police Department, Nisswa Police Department, Goodhue County Sheriff’s Office, Red Wing Police Department, Mason City Police Department, Freeborn County Sheriff’s Office, and the Albert Lea Police Department. This case was brought as part of Project Safe Neighborhoods (“PSN”), an initiative that brings together federal, state and local law enforcement to combat violent crime and make neighborhoods safer for everyone.
Assistant United States Attorney Jeffrey S. Paulsen prosecuted the case.
Defendant Information:
LENNIE DWAYNE BROOKS, 34
Zumbro Falls, Minn.
Convicted:
- Aiding and abetting interference with commerce by robbery (Hobbs Act), 3 counts
Sentenced:
- 365 months in prison
- Three years of supervised release
- $288,483.72 in restitution to victims
RANDY LORENZO BROOKS, 24
Wabasha, Minn.
Convicted:
- Aiding and abetting interference with commerce by robbery (Hobbs Act), 3 counts
Sentenced:
- 240 months in prison
- Three years of supervised release
- $288,483.72 in restitution to victims
AUTUMN MARIE NICHOLS, 21
St. Paul, Minn.
Convicted:
- Aiding and abetting interference with commerce by robbery (Hobbs Act), 1 count
Sentenced:
- 120 months in prison
- Three years of supervised release
- $50,000 in restitution to victims
ESPERANZA CARDENAS, 30
Conger, Minn.
Convicted:
- Aiding and abetting interference with commerce by robbery (Hobbs Act), 1 count
Sentenced:
- 50 months in prison
- Three years of supervised release
- $238,483.72 in restitution to victims
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
U.S. Attorney Mike Hurst Announces Significant Progress in Making our Communities Safer through Project EJECTRead the Press Release
Two years ago, the Department of Justice announced the revitalization and enhancement of Project Safe Neighborhoods (PSN), the centerpiece of the department’s violent crime reduction strategy. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally-based prevention and reentry programs for lasting reductions in crime.
Throughout the past two years, the U.S. Attorney’s Office has partnered with all levels of law enforcement, local organizations, and members of the community to reduce violent crime and make our neighborhoods safer for everyone. According to FBI’s Uniform Crime Report released this week, the violent crime rate nationally decreased for the second consecutive year, down 3.9 percent from the 2017 numbers.
“The revitalized Project Safe Neighborhoods program is a major success,” said Attorney General William P. Barr. “It packs a powerful punch by combining advanced data with local leadership, further reducing violence in communities across the country and improving overall public safety. U.S. Attorneys continue to focus their enforcement efforts against the most violent criminals and work in partnership with federal, state, local, and tribal police. The Justice Department’s relationships across the board have never been stronger.”
“We have been successful this past year because of the hard work of our prosecutors and staff, and the strong partnerships and trust we have developed among our law enforcement, our citizens, and our communities. Under Project EJECT, we have removed violent criminals from our communities, taken illegal guns off our streets, educated our young people, empowered our citizens, and helped offenders reenter society. We are committed to continuing this good work, protecting the public, supporting our law enforcement, and making our neighborhoods safer for everyone,” said U.S. Attorney Hurst.
For Fiscal Year 2019, the U.S. Attorney’s Office for the Southern District of Mississippi was ranked the top medium-sized office in the country for number of indictments, outpacing the other 24 medium-sized U.S. Attorney’s Offices throughout the nation. That is an outstanding improvement in just three years, where the Southern District was ranked 19 out of 25 medium-sized districts in Fiscal Year 2016. Since FY16, the U.S. Attorney’s Office has almost tripled the number of federal criminal indictments throughout the Southern District of Mississippi, charging more defendants with federal crimes than has ever been charged before in the history of the State of Mississippi.
In December 2018, the U.S. Attorney’s Office’s Project EJECT was recognized and awarded Outstanding Overall Partnership/Task Force by the U.S. Department of Justice among all 94 U.S. Attorney’s Offices throughout the entire country. [link]
As we celebrate the two-year anniversary of the revitalized PSN program, here are some of the highlights of our PSN actions over the past year:
Enforcement Actions
In Fiscal Year 2019, the U.S. Attorney’s Office began its second year of Project EJECT in the City of Jackson, and expanded Project EJECT into other areas of the Southern District, including Hattiesburg, Meridian, Natchez and Moss Point.
For the first time in its history, the U.S. Attorney’s Office assigned a full-time federal prosecutor to each of these areas with responsibility to carry out Project EJECT and reduce violent crime.
I. City of Jackson
- 88 individuals indicted for federal crimes
- 77% of them detained awaiting trial
- 85 illegal guns taken off the streets
Significant Cases
- Illegal Alien Who Shot Unarmed Individual in Convenience Store Found Guilty by Federal Jury of Illegally Possessing Firearm [link]
- Felon Who Almost Ran Over Police Officer Sentenced to 16 Years for Illegally Possessing Firearm [link]
- Carjacker Who Held Woman at Gunpoint Sentenced to Over 12 Years in Prison [link]
- Armed Career Criminal, with Prior Convictions for Armed Robbery and Selling Crack Cocaine Near School Multiple Times, Sentenced to 15 Years in Prison [link]
- Jackson Murder Suspect Sentenced to Over 12 Years in Federal Prison for Carjacking and Discharging a Firearm During the Crime While on Bond by Local Judge [link]
- Jackson Man Sentenced to 9 Years in Federal Prison for Armed Robbery of Local Business [link]
- Jackson Man Sentenced to 7 Years in Federal Prison for Armed Robbery of Dollar General Store, Including Multiple Shoppers and Employees [link]
- Jackson Man Sentenced to 13 Years in Prison for Armed Carjacking Using Military Style Rifle [link]
- Georgia Man Sentenced to Almost 30 Years in Federal Prison for Carjacking and Multiple Robberies [link]
II. City of Hattiesburg
- Expanded Project EJECT to City of Hattiesburg on February 5, 2019 [link]
- 19 individuals indicted for federal crimes
- 40 illegal guns taken off the streets
Significant Cases
- Hattiesburg Man with Multiple Felony Convictions in High Speed Car Chase Pleads Guilty under Project EJECT to Illegally Possessing Firearm [link]
- Hattiesburg Man Previously Convicted of Armey Robbery Pleads Guilty under Project EJECT to Illegally Possessing Firearm [link]
III. City of Meridian
- Expanded Project EJECT to City of Meridian on February 26, 2019 [link]
- 10 individuals indicted for federal crimes
- 54 illegal guns taken off the streets
Significant Cases
- Meridian Man with Multiple Prior Felony Convictions Sentenced to 3 Years in Federal Prison for Possessing Five Illegal Firearms [link]
IV. City of Natchez
- Expanded Project EJECT to City of Natchez on February 27, 2019 [link]
- 6 individuals indicted for federal crimes
- 8 illegal guns taken off the streets
Significant Cases
- Natchez Man Pleads Guilty under Project EJECT to Stealing a Firearm from a Licensed Firearms Dealer [link]
- Natchez Man Pleads Guilty under Project EJECT to Receiving a Firearm While Under Felony Indictment
V. City of Moss Point
- Expanded Project EJECT to City of Moss Point on February 21, 2019 [link]
Significant Cases
- Moss Point Man Sentenced to Over 12 Years in Federal Prison for Illegal Gun and Methamphetamine Trafficking [link]
- Moss Point Man Pleads Guilty to Gun Charges
- Jackson County Man Sentenced to 10 Years in Federal Prison for Possession of Firearm by a Felon [link]
- Moss Point Man Sentenced to Over 5 years in Prison for Illegally Possessing Firearm
COMMUNITY PARTNERSHIPS
Project EJECT is not only focused on prosecutions, but also prevention, reentry and awareness. Throughout the year, our office has participated with our communities, our law enforcement, our schools, our faith-based organizations, and many others in the following activities:
Prevention
- Presentation of the L.E.A.D. Program to Kids and Adults in Meridian [link]
- AUSA Trains Kids on L.E.A.D. Program at Boys and Girls Clubs in Jackson [link]
- AUSA Presents L.E.A.D. Program to Adams County Sheriff’s Youth Group [link]
- AUSAs Sponsor High School Mock Trial Team in Jackson [link]
- AUSAs Present L.E.A.D. Program to Osceola McCarty Youth Development Summer Camp and the Hattiesburg Parks and Summer Camp at N.R. Burger Middle School
- L.E.A.D. Program presented by AUSAs at Hattiesburg YMCA Summer Camp and the Hattiesburg Police Department P.A.L.S. program
Reentry
- United States Attorney’s Office Hosts Re-entry Services Fair in Meridian [link]
- United States Attorney’s Office to Host Re-entry Services Fair in Jackson [link]
- United States Attorney’s Office to Host Re-entry Services and Jobs Fair in Natchez [link]
- U.S. Attorney Participates in MDOC Second Annual Reentry Symposium [link]
Awareness
- Training Recruits with Jackson Police Department on Federal Crimes [link]
- U.S. Attorney’s Office Attends Coffee with a Copy in Hattiesburg [link]
- Project EJECT Awards to Law Enforcement, Community, Local Heroes [link]
- Public Awareness Campaign with Billboards Placed Around Southern District of Mississippi
Project EJECT is an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). Project EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Justice Expel Crime Together." PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
U.S. Attorney DeVillers announces management teamRead the Press Release
COLUMBUS, Ohio – David M. DeVillers, United States Attorney for the Southern District of Ohio, today announced the following appointments to his executive and supervisory staff.
Vipal J. Patel will continue as First Assistant U.S. Attorney. This position is the number two position in the U.S. Attorney's Office and is responsible for overseeing the day-to-day operations of the office. Patel has been an Assistant U.S. Attorney since 2000, first in the Central District of California in Los Angeles, and since 2005, in the Southern District of Ohio in Dayton. Patel served as the district Criminal Chief in 2010. Prior to that, he served as Deputy Criminal Chief in the Dayton office since 2006. He spent his 2011 on a one-year detail to Afghanistan, where he served as an advisor to the Afghan Ministry of Justice and other governmental and educational institutions, as part of the U.S. Department of Justice’s Rule of Law program. Patel received his law degree from George Washington University Law School in 1991. Prior to becoming a federal prosecutor, Patel was a litigation associate and then partner with the law firm of Hancock Rothert & Bunshoft LLP (currently, Duane Morris LLP), in Los Angeles. Patel also serves as an Adjunct Professor at the University of Dayton Law School, where he has taught International Law and teaches courses in Cybercrime and Criminal Procedure. He is a Board Member (Immediate Past President) of the Dayton Chapter of the Federal Bar Association and a former Board Member for the Boonshoft Museum of Discovery in Dayton.
Mark D'Alessandro will continue as Executive Assistant U.S. Attorney and District Civil Chief. The Executive Assistant is primarily responsible for personnel and facilities issues, Department of Justice reporting requirements, special projects, and other responsibilities. D’Alessandro served as the First Assistant U.S. Attorney from 2010 to January 2016. He has been Civil Chief since 2009 and was Deputy Civil Chief - Columbus from 2001-2009. Before that, he served as a criminal Assistant U.S. Attorney for Health Care Fraud from 1997 until 2001, and was the Affirmative Civil Enforcement (ACE) Assistant U.S. Attorney from 1995 until 1997. D'Alessandro is a 1975 graduate of Boston College and a 1979 graduate of the Capital University Law School. He also served as an Assistant Attorney General for the State of Ohio from 1979 until 1995.
D’Alessandro will be assisted in his Civil Chief duties by Matthew Horwitz, who will continue to serve as Deputy Civil Chief. Horwitz was first named to the post in 2014. He has been an Assistant U.S. Attorney in Cincinnati since 2012. Horwitz graduated from the Ohio State University and received his J.D., with honors, from the Ohio State University Moritz College of Law. He previously practiced at Frost Brown Todd in Cincinnati.
Karl P. Kadon was named as the District’s Criminal Chief. Kadon most recently served as the District’s OCDETF Chief. Kadon joined the U.S. Attorney’s Office in 2006, after serving as a Special Assistant United States Attorney in Cincinnati from 2005 to 2006. Kadon was the Chief Assistant Hamilton County Prosecutor from 1999 to 2005. His prior experience also includes: Deputy Cincinnati City Solicitor, (1992-1999); Senior Assistant Cincinnati City Solicitor (1987-1992); Assistant Hamilton County Prosecutor (1984-1987) United States Army Reserve, Lieutenant Colonel, Director of Legal Services, 9th Legal Support Organization.
Kadon will be assisted in his Criminal Chief duties by four Deputy Criminal Chiefs and three Assistant Deputy Criminal Chiefs. They are:
- Christy L. Muncy, Deputy Criminal Chief (OCDETF). Muncy will oversee the Organized Crime and Drug Enforcement Task Force. She has served as an Assistant United States Attorney for the Southern District of Ohio since 2007. Muncy was the District’s Project Safe Childhood Coordinator from 2008 to 2009 and Violent Crimes Coordinator from 2015 until 2018. Her prior experience includes serving as the First Assistant Commonwealth’s Attorney from 2005 to 2007 and as an Assistant Commonwealth’s Attorney from 2002 to 2005 in Kenton County, Ky.
- Brian J. Martinez, Deputy Criminal Chief (Columbus). Martinez is the former Chief of Staff for the Associate Attorney General of the United States (2012-2014) and Chief of Staff of the Department of Justice’s Civil Division (2009-2012). He was also an Associate at Morrison & Foerster LLP from 2003 to 2009 and clerked for the United States District Court for the Northern District of California from 2002 until 2003. He joined the U.S. Attorney’s Office as a Special Assistant United States Attorney in 2014 and has served as an Assistant United States Attorney since 2015.
- Gary L. Spartis, Assistant Deputy Criminal Chief (Columbus). Spartis most recently served as a Deputy Criminal Chief in the Columbus office since 2001. Prior to that, he served as an Assistant U.S. Attorney beginning in 1987. Spartis graduated from Grove City College (PA) in 1976 and the Capital University Law School in 1979. He served as an Assistant Franklin County Prosecutor from 1981 until 1987.
- Emily N. Glatfelter, Deputy Criminal Chief (Cincinnati). Glatfelter has served as a Deputy Criminal Chief in the Cincinnati office since 2015. She joined the U.S. Attorney’s Office in Cincinnati in 2012, primarily handling financial crimes matters. She previously served in the criminal division of the U.S. Attorney’s Office District of Maryland, beginning in 2006. She earned her bachelor’s degree from Butler University in 1999 and her law degree from the University of Indiana in 2002 before working for Arnold & Porter LLP in Washington D.C. She also clerked for the Hon. David F. Hamilton while he served as U.S. District Judge for the Southern District of Indiana.
- Timothy S. Mangan, Assistant Deputy Criminal Chief (Cincinnati). Mangan has been as Assistant United States Attorney for the District since 2009. Prior to joining the U.S. Attorney’s Office, he was an Associate and Partner at Dinsmore & Shohl LLP (1997-2004, 2006-2009); Senior Counsel at Cinergy Corporation (2005-2006) and Associate at Bassford Lockhart Truesdell & Briggs (1995-1997).
- Dominick S. Gerace, Deputy Criminal Chief (Dayton). Gerace has been an Assistant United States Attorney for the Southern District of Ohio since 2016. Prior to joining the criminal division in Dayton, he was an AUSA in the Eastern District of Virginia from 2012 to 2016. He earned his bachelor’s degree from the United States Military Academy and his law degree from Georgetown University. Gerace’s other work experience includes: Associate, Taft, Stettinius and Hollister LLP (2008-2012); Clerk to the Hon. John M. Rogers, U.S. Court of Appeals for the Sixth Circuit (2007-2008); Armor Officer, United States Army (1999-2004).
- Laura I. Clemmens, Assistant Deputy Criminal Chief (Dayton). Clemmens most recently served as a Deputy Criminal Chief in the Dayton office since 2009. She began her service as an Assistant U.S. Attorney, Dayton criminal division, in 2002. She earned her Bachelor’s degree from The College of Wooster, and received a certificate in Environmental Management from the School of Public Administration at the University of Southern California. She earned her law degree from the University of Oregon. Prior to earning her law degree, Clemmens worked as a scientist at the Denver regional office of the U.S. Environmental Protection Agency.
Douglas W. Squires will continue as Senior Litigation Counsel. Doug Squires has served as the District’s Senior Litigation Counsel (“SLC”) since 2014. As the SLC, Squires is responsible for legal training and development. For nearly 20 years, Squires has been an Assistant U.S. Attorney in Columbus and has focused on the prosecution of complex cases involving white-collar crime, corruption, terrorism and espionage. Squires also serves as the office’s Professional Responsibility Officer and Criminal Discovery Coordinator. In 2016, Squires was honored with the Exceptional Service Award from the National Association of Former U.S. Attorneys. In 2009, he received the U.S. Department of Justice Distinguished Service Award. In 2001, he was the recipient of the U.S. Department of Health and Human Services Inspector General’s Integrity Award. From 1994 to 2000, Squires was a state prosecutor in California prosecuting violent crimes and drug offenses, and served as Interim Supervising District Attorney. He is also an Adjunct Professor at the Ohio State University Moritz College of Law where he teaches white collar crime and criminal procedure. He has authored several published materials on fraud and corruption, including a chapter entitled "Forensic Accounting" in Scientific Evidence in Civil and Criminal Cases, 6th Ed., 2013, Foundation Press, a legal textbook on scientific and technical evidence. Squires received a B.A. from Miami University, Oxford, Ohio and his law degree from the University of San Francisco School of Law.
Mary Beth Young will continue as Appellate Chief, a position she has held since 2016, with supervisory responsibility for criminal and civil filings in the Court of Appeals and coordination of the District’s appellate practice with other divisions of the Department of Justice. Young became an Assistant United States Attorney in 2012 in Columbus after serving two years as a Special AUSA. Prior to joining the District, Young was in private practice in Columbus and served as a Visiting Assistant Professor at the Moritz College of Law, where she currently serves as an Adjunct Professor. Young received her B.S. from the University of Kentucky, her M.S. from Georgia Tech, and her J.D. from the University of Chicago. Following law school, Young served as law clerk to Judge David Sentelle of the United States Court of Appeals for the D.C. Circuit, then to Justice Antonin Scalia of the United States Supreme Court.
The U.S. Attorney’s Office, with a staff of 115, represents more than five million people in 48 of Ohio’s 88 counties. The Southern District of Ohio includes the metropolitan areas of Cincinnati, Columbus and Dayton.
DeVillers was nominated by the President in September 2019 to become the United States Attorney for the Southern District of Ohio, and after he was confirmed by the United States Senate in late October, DeVillers was sworn into office on Nov. 1, 2019.
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Two Massachusetts Law Enforcement Officers Receive Attorney General’s Award for Distinguished Service in PolicingRead the Press Release
BOSTON – Two Cohasset Police Officers were among the 19 law enforcement officers honored today by Attorney General William P. Barr for distinguished service in policing.
Officers Aaron Bates and Alexander Stotik, of the Cohasset Police Department, were honored at the Third Annual Attorney General’s Award for Distinguished Service in Policing for their courageous actions that saved the life of a woman who was being brutally attacked.
The officers were dispatched to a home where neighbors complained of loud noises and a fight. After investigating, the officers heard a muffled scream, kicked in a locked door, and saw what they described as an “attempted murder in progress.” After a heated struggle, the officers were able to subdue the suspect, place him under arrest, and get medical attention for the victim. The officers exhibited extraordinary valor, bravery, courage, and professionalism in the face of extreme danger that would no doubt have resulted in the murder of the victim.
“Officers Bates and Stotik represent the very best of the law enforcement officers who protect and serve the people of Massachusetts every day,” said United States Attorney Andrew E. Lelling. “Their commitment to protecting the lives of others – at great personal risk – should be a model for the rest of us. I congratulate Officers Bates and Stotik on this tremendous honor.”
“Honoring and supporting the work of law enforcement officers and deputies is a top priority for the Trump Administration, and today is an opportunity for me to personally express my gratitude and commitment to those who risk their lives daily to protect our communities,” said Attorney General Barr. “The Attorney General’s Award for Distinguished Service in Policing honors exceptional police officers and the vital public service they provide. The brave men and women in law enforcement are engaged in an unrelenting and often unacknowledged fight to keep our communities safe each and every day. It is an honor to thank them for their service.”
The Attorney General’s Award recognizes individual state, local, and tribal sworn rank-and-file police officers and deputies for exceptional efforts in policing. The awarded officers and deputies have demonstrated active engagement with the community in one of three areas: criminal investigations, field operations or innovations in community policing. The Department received 199 nominations for 414 individuals ranging from state police departments, to local police, to campus public safety agencies. This award highlights the work that troopers, officers and deputies do to prevent, intervene in, and respond to crime and public safety issues.
Two Florida Brothers Sentenced to Prison for Identity Theft and Credit Card Scam at BelkRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, GUSTAVO TEIXEIRA MENDES DE ALMEIDA (GUSTAVO ALMEIDA), 35, of Coral Springs, Florida, and HENRIQUE TEIXEIRA MENDES DE ALMEIDA (HENRIQUE ALMEIDA), 30, of Coral Springs, Florida, were both sentenced to 30 months imprisonment and 3 years of supervised release on charges of Conspiracy to Commit Access Device Fraud and Aggravated Identity Theft. Additionally, the court ordered restitution for $54,806 payable to Belk and forfeiture of the proceeds of the offense.
United States Attorney Robert J. Higdon stated, “Credit card fraud and identity theft crimes can place an enormous mental strain upon victims. Often times, victims are left trying to convince merchants, law enforcement and reporting agencies that they were not responsible for the offenses. These crimes also drive up costs for all law-abiding citizens. This office will continue to bring to justice those who seek to commit crimes using the identities of others.”
The investigation showed that in December of 2018, security personnel for Belk Department Sores became aware of a scheme whereby two men would enter one of various Belk store locations in North and South Carolina and purchase gift cards in $300 increments using credit card numbers associated with foreign banks. The men presented identification in the form of passports from Brazil and Portugal. The men would then travel to other Belk locations and use the previously acquired gift cards to purchase large quantities of merchandise. Among other items, the purchased merchandise frequently consisted of computer gaming equipment or NEST cameras. On or about December 10, 2018, Belk security personnel in Charlotte issued a “be on the lookout” alert with respect to the two men due to the suspicious activity.
On December 18, 2018, the two men were seen by Belk security personnel at the Belk store at the Independence Mall in Wilmington, North Carolina, purchasing $300 Belk gift cards and several NEST products. The Belk representatives at Independence Mall contacted fellow Belk security personnel at Belk’s store located near Wrightsville Beach (Belk Mayfaire) and advised them that the two suspects were in the Wilmington market.
Belk security personnel then observed one of the two suspects over Belk Mayfaire’s closed circuit television. The individual was in possession of a shopping cart filled with NEST products on the store’s second floor. A Belk store manager spoke to the individual during the checkout process. At that time, the suspect stated that he was planning to sell the merchandise in Brazil due to the large markup on the items. After the transaction, the suspect exited the building, but was monitored by Belk security personnel, who had already contacted the Wilmington Police Department.
Outside of the store, Belk security personnel caught up to and stopped the two suspects, both of whom matched the photographs of the subjects under investigation from prior video surveillance. Shortly thereafter, officers with the Wilmington Police Department arrived and questioned the men, which turned out to be HENRIQUE ALMEIDA and GUSTAVO ALMEIDA. Both men were found to be in possession of counterfeit identification cards. Additionally, a search of the vehicle driven by the brothers revealed large quantities of merchandise and receipts pertaining to known prior purchases by the two men. Officers also found evidence that the men had been shipping the stolen equipment to their home in Coral Springs Florida. A search in Florida resulted in the recovery $17,000 in currency, several suspected counterfeit passports, and numerous items previously purchased at Belk stores in North Carolina.
The ALMEIDA brothers were indicted in December of 2018, and both pled guilty on September 9, 2019.
This case was investigated by the United States Secret Service, Wilmington Police Department and the Kure Beach Police Department. Assistant United States Attorney William M. Gilmore represents the United States.
Two Florence Residents Plead Guilty in Federal Court to Committing Tax Fraud While Operating a Tax Preparer BusinessRead the Press Release
Florence, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Donna Faye Shird, age 41, and Felicia Renee Shird, age 42, both of Florence, pleaded guilty in federal court to conspiracy to aid in the preparation and filing of false federal income tax returns. Chief United States District Judge R. Bryan Harwell of Florence accepted the pleas and will impose sentence after he has received and reviewed sentencing reports prepared by the United States Probation Office.
The evidence presented at the guilty plea hearing established that Donna and Felicia Shird operated a business known as Donna’s Income Tax Service, which provided tax preparation and filing services for customers. During the period from 2012 and 2017, both Donna and Felicia began routinely adding fictitious information to the personal tax returns of customers to artificially increase the amount of tax refund the customers would receive from the IRS. Investigators discovered that customers of Donna’s Income Tax Service provided correct tax related information to Donna or Felicia with the expectation that they would accurately prepare and file the returns for the customers. Instead, the Shirds would create returns which falsely claimed deductions, credits, exemptions, and other tax benefits to which the taxpayers were not entitled. Falsely claimed items included child and dependent care credits, business profits and losses, education credits, residential energy credits, and earned income credits. As a result, customers received fraudulently inflated tax refunds and Donna’s Income Tax Service attracted more customers based on their reputation for producing such large refunds. The illegal operations of Donna’s Income Tax Service, and the fraudulent conduct by Donna and Felicia Shird, resulted in a significant loss of tax revenue for the United States Government.
Donna and Felicia Shird a subject to a maximum sentence of five years in federal prison and a fine of $250,000.00.
The case was investigated by agents of the Internal Revenue Service. Assistant United States Attorney A. Bradley Parham of the Florence office is prosecuting the case.
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Two Associates of Nuestra Familia Prison Gang Plead Guilty to Federal Rico ConspiracyRead the Press Release
SAN JOSE- Juan Alvarez, a/k/a Chucky, and Ramon Montoya, a/k/a Little Ray, pleaded guilty today to racketeering conspiracy charges for their respective roles as associates of the Nuestra Familia prison gang, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The guilty pleas were accepted by the Honorable Beth L. Freeman, United States District Judge.
“Defendants Juan Alvarez and Ramon Montoya admitted that they have committed heinous crimes for the purpose of enhancing their membership in the Norteño prison gang,” said U.S. Attorney Anderson. “This case should serve as yet another reminder to people tempted by the allure of gang membership that gangs provide no benefits for their members other than long prison terms and lives of unpredictable violence.”
“Violent street gangs are a plague to our society,” said FBI San Francisco Special Agent in Charge John F. Bennett. “They prey on and terrorize our citizens and lay waste to our communities. These guilty pleas stand as a step towards ensuring justice is served and as a reminder that such behavior will not be tolerated.”
According to the plea agreements, between December 2, 2012, and April 14, 2014, Alvarez, 39, and Montoya, 36, both were members of the Nuestra Familia/Salinas Norteños Enterprise. The Enterprise consisted of members and associates of the Nuestra Familia prison gang as well as Norteño street gangs in Salinas, Calif., and the surrounding areas. Members and associates of the Enterprise agreed to commit crimes such as murder, narcotics trafficking, and other acts of violence through a pattern of racketeering activity. Norteño gang members pledge their allegiance and loyalty to Nuestra Familia and are instructed on its rules, rituals, and obligations. Gang rules and discipline are maintained by assaulting and threatening those individuals who violate the rules or pose a threat to the organization; inside prisons and local jails, all members and associates of Nuestra Familia and Norteños work together to maintain the structure and follow the rules of the Enterprise.
In their plea agreements, Alvarez and Montoya admit to participating in the distribution of narcotics to other inmates at Monterey County Jail. Also, the plea agreements describe the roles of the defendants in “removals” as a means of violently enforcing the most important of the gang’s rules while they were in the jail. The term “removal” refers to a violent attack designed to remove (from both the custodial housing unit and the gang itself) a member of the gang who committed a serious violation of the gang’s rules. A removal is accomplished by having one or more “hitters” stab the victim and then having at least two “bombers” assault the target by punching and kicking the victim without weapons. The purpose of the subsequent beating is to inflict upon the victim maximum damage while giving the hitters time to wash themselves and get rid of weapons.
Montoya and Alvarez both admitted that they participated in the October 23, 2013, removal of a victim from one of the housing units at the Monterey County Jail. Montoya admitted that he transmitted the order from the Norteño leadership that the removal was authorized. Alvarez admitted that he was a hitter in the attack and that he used a weapon made out of plexiglass to stab the victim in the neck. Both Montoya and Alvarez acknowledged that immediately after the victim was stabbed, two bombers began punching and kicking the victim to allow Alvarez to escape being caught by guards with the stabbing weapon. Montoya also admitted being a bomber on the November 13, 2013, removal of a victim. Montoya punched and kicked the victim after a hitter stabbed the victim approximately ten times. The victim was stabbed in the head, torso, and arms before Montoya began punching and kicking the victim to inflict the maximum damage possible.
On September 27, 2018, a federal grand jury indicted Alvarez, Montoya, and several other defendants with racketeering conspiracy, in violation of 18 U.S.C. § 1962(d). Both Alvarez and Montoya also were charged with conspiracy to commit murder in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(5), and conspiracy to commit assault with a dangerous weapon in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(6). Both defendants pleaded guilty to the racketeering conspiracy charge, wherein they admitted that murder was an object of the conspiracy. If they comply with their plea agreements, the additional charges will be dismissed at sentencing.
Judge Freeman scheduled the sentencing hearings for both defendants for March 31, 2020. The defendants face a maximum statutory sentence of life in prison, five years of supervised release, and a fine of $250,000. Pursuant to the terms of their plea agreements, both Montoya and Alvarez have agreed that a reasonable and appropriate disposition of their respective cases would include a term of imprisonment of 10 years. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Claudia A. Quiroz and Stephen Meyer are prosecuting the case. The prosecution is the result of an investigation by the FBI with assistance from the Salinas Police Department, the Monterey County Sheriff’s Office, the California Highway Patrol, and the California Department of Corrections and Rehabilitation.
Texas Man Sentenced in Kansas for Methamphetamine TraffickingRead the Press Release
KANSAS CITY, KAN. - A man from Houston was sentenced today to four years in federal prison for driving a load of methamphetamine to Kansas, U.S. Attorney Stephen McAllister said.
Osiel Armando Siquerios, 28, El Paso, Texas, pleaded guilty to one count of possession with intent to distribute methamphetamine. In his plea, he admitted police in Lawrence, Kan., stopped his car Feb. 26, 2017, on the Kansas Turnpike in Douglas County. Officers found approximately 12 pounds of methamphetamine in a compartment hidden beneath the back seat of the car. Siqueiros was taking the drugs to Kansas City.
McAllister commended the Lawrence Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Terra Morehead for their work on the case.
Suburban Chicago Man Sentenced to a Year and a Half in Prison for Conspiring to Straw Purchase HandgunsRead the Press Release
CHICAGO — A suburban Chicago man was sentenced today to a year and a half in federal prison for conspiring to straw purchase handguns on behalf of a woman who allegedly tried to smuggle the firearms into Egypt.
OMRAN ISMAIL purchased four handguns in November 2013 from a licensed firearms dealer in Tinley Park, and then immediately transferred the guns to co-defendant OLA SAYED so that Sayed could bring them to Egypt. The guns were discovered in Sayed’s checked luggage at O’Hare International Airport in Chicago as she attempted to board a flight to Cairo, via London.
A federal jury in Chicago earlier this year convicted Ismail, 53, of Burbank, of both firearm counts against him. U.S. District Judge Sara L. Ellis imposed the 18-month sentence after a hearing in federal court.
Sayed, of Palos Park, was charged in the conspiracy but fled and is considered a fugitive.
Ismail’s sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and James M. Gibbons, Special Agent-in-Charge of the Chicago office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Valuable assistance was provided by the Chicago Police Department and U.S. Customs and Border Protection.
“Unlawfully purchasing and transferring firearms is an incredibly serious offense,” Assistant U.S. Attorneys Abigail L. Peluso and Katie M. Durick argued in the government’s sentencing memorandum. “Ismail’s conduct was deliberate and reckless, and it could have resulted in additional unlawful activity had the guns been successfully smuggled to Egypt.”
According to evidence presented at Ismail’s trial, Ismail purchased four 9mm firearms from the dealer on Nov. 18, 2013. When he purchased the firearms, Ismail completed a federal form falsely certifying that he was the actual buyer. Ismail picked up the guns from the dealer five days later, at which time he confirmed that all of his answers on the form were “still true, correct, and complete.” Ismail then immediately transferred all four firearms to Sayed, so that Sayed could take the firearms with her to Egypt.
Sayed purchased two other 9mm firearms, and then took all six guns with her to O’Hare Airport on Dec. 23, 2013, according to the charges pending against her. Authorities at the airport discovered the guns in Sayed’s checked luggage as she waited to board her flight, the charges against Sayed allege.
St. Louis County Woman Pleads Guilty to Making False Statements to the Social Security Administration and Defrauding Meredes BenzRead the Press Release
St. Louis, MO – Tayon Hutchins Fowler, 42, of Florissant, MO, pled guilty to one count of making a false statement to the Social Security Administration and one count of wire fraud regarding a scheme to defraud Mercedes Benz. Hutchins Fowler appeared today before U.S. District Judge Ronnie L. White who accepted her plea and set sentencing for March 11, 2020.
According to the plea agreement, Hutchins Fowler submitted an application to the U.S. Social Security Administration (“SSA”) for disability payments in which she claimed to be disabled and unable to work because of major depression and other conditions. In reliance on her representations, SSA paid Hutchins Fowler periodic disability payments from November 2012 through March 2019. These SSA payments totaled approximately $200,000.
During 2012-17, Hutchins Fowler owned a home health care business and annually received over $100,000 in income from this business during 2014, 2015, 2016, and 2017. In 2018, Ms. Hutchins Fowler made a series of false statements to SSA in order to continue to receive disability payments from SSA, telling the agency that she had not worked, had not received income from working, and had difficulty with shopping, driving, understanding directions, remembering, and getting along with people.
Hutchins Fowler also pled guilty to committing wire fraud. During December 2017, Ms. Hutchins Fowler purchased a 2018 Mercedes Benz GLC 43 automobile at a dealership located in St. Louis, Missouri, using falsified monthly bank statements, checks, corporate records, and tax materials to fraudulently obtain financing for the vehicle.
The false statement charges carry a maximum possible penalty of five years imprisonment, a fine of $250,000 or both imprisonment and a fine. The wire fraud charges carry a maximum possible penalty of twenty years imprisonment, a fine of $250,000, or both imprisonment and a fine. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Office of Inspector General for the Social Security Administration and the Federal Bureau of Investigation, with assistance from the Medicaid Fraud Control Unit of the Missouri Attorney General’s Office.
St. Louis County Man Sentenced to 16 years in Prison for Four Armed RobberiesRead the Press Release
St. Louis, MO –Carlos Robinson, 28, of St. Louis, was sentenced to 192 months in prison for four separate armed store robberies committed in early 2017 and ordered to pay $1,077.24 in restitution. Robinson appeared today before U.S. District Judge Henry E. Autrey.
According to court documents, on February 6, 2017, at approximately 5:00 p.m., Robinson entered the Conoco Gas Station located at 3600 Big Bend Boulevard in St. Louis County. He pulled a bandana over his mouth and pointed a silver firearm at the clerk. Robinson instructed the clerk to open the cash register and demanded money before exiting the service station.
On February 10, 2017, at approximately 10:00 a.m., Robinson entered the Mobil on the Run gas station located at 9371 Olive Boulevard, also in St. Louis County. He pointed a small silver firearm at the clerk, told her to open the cash register drawer and give him the money.
On February 13, 2017, at approximately 1:39 p.m., Robinson entered the BP gas station located at 7003 Manchester Avenue, St. Louis City. He entered the store wearing sunglasses and asked to use the bathroom key, which the cashier provided. Robinson returned the key, walked inside the Plexiglas partition and revealed a firearm to the cashier, demanding money. The cashier was able to physically push Robison out of the secure cashier area, close the door, and push the alarm.
On February 15, 2017, at approximately 7:01 p.m., Robinson entered the Family Dollar located at 4344 Dr. Martin Luther King, Jr. Drive, also in St. Louis City. He approached the register and asked for a pack of Newport cigarettes. Robinson displayed a firearm, demanded money, and threatened to hurt the cashier if she did not comply.
The Federal Bureau of Investigation, the Maplewood Police Department, the Olivette Police Department, and the St. Louis Metropolitan Police Department investigated this case, with assistance from the Bureau of Alcohol, Tobacco, Firearms & Explosives.
Settlement with Lehigh Cement Company and Lehigh White Cement Company to Reduce Thousands of Tons of Air EmissionsRead the Press Release
In a settlement to resolve alleged violations of the Clean Air Act, Lehigh Cement Company LLC (Lehigh) and Lehigh White Cement Company, LLC (Lehigh White) have agreed to invest approximately $12 million in pollution control technology at their 11 portland cement manufacturing plants, announced the Department of Justice and the U.S. Environmental Protection Agency (EPA). Today’s settlement will reduce more than 4,555 tons of harmful nitrogen oxides (NOx) and 989 tons of sulfur dioxide (SO2) pollution each year.
“This settlement with Lehigh and Lehigh White will significantly reduce harmful air emissions at their cement plants nationwide,” said Bruce Gelber, Deputy Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “The settlement is a product of the federal government’s close work with state and local agencies who all share the goal of improving air quality in their regions in compliance with state and federal laws.”
“Today’s settlement will require these cement manufacturers to improve their operations to reduce harmful air pollutants,” said Assistant Administrator of the Office of Enforcement and Compliance Assurance Susan Bodine. “The upgrades at these facilities will improve air quality for the surrounding communities.”
Under this settlement, the companies will install and operate equipment to control NOx and meet emission limits that are consistent with controls at comparable cement kilns across the country. This settlement also requires the companies to operate existing pollution controls at four kilns and meet more stringent emission limits. For controlling SO2, Lehigh will install and operate pollution control equipment at several kilns, and will meet low SO2 emission limits at all kilns.
Lehigh has agreed to mitigate the effects of past excess emissions from its facilities by replacing old diesel truck engines at its facilities in Union Bridge, MD, and Mason City, IA, at an estimated cost of approximately $650,000, which is expected to reduce smog-forming NOx by approximately 25 tons per year. Lehigh will also pay a civil penalty of $1.3 million to resolve Clean Air Act violations.
The settlement is the 12th settlement to address harmful air pollution from Portland cement manufacturing facilities. Sulfur dioxide and nitrogen oxides, two key pollutants emitted from cement plants, can harm human health and are significant contributors to acid rain, smog, and haze. These pollutants are converted in the air into fine particles that can cause severe respiratory and cardiovascular impacts and premature death. Reducing these harmful air pollutants will benefit communities located near the Lehigh plants, particularly communities disproportionately impacted by environmental risks and vulnerable populations, including children.
The Lehigh cement plants covered by the settlement are located in Leeds, AL.; Cupertino, Redding, and Tehachapi, CA.; Mason City, IA; Mitchell, IN; Union Bridge, MD; Glens Falls, NY, and Fleetwood, PA. Lehigh White’s facilities are located in York, PA and Woodway, TX. Seven state and state or regional agencies have joined the United States in the settlement, consisting of Indiana, Iowa, Maryland, New York, the Pennsylvania Department of Environmental Protection, Jefferson County Board of Health (Alabama), and Bay Area Air Quality Management District (California). The states and state and regional agencies will share in the civil penalty.
The settlement was lodged today in the U.S. District Court for the Eastern District of Pennsylvania and is subject to a 30-day public comment period and final court approval. It will be available for viewing at www.justice.gov/enrd/Consent_Decrees.html.
More information about this settlement:
https://www.epa.gov/enforcement/lehigh-cement-company-llc-and-lehigh-white-cement-company-llc-clean-air-act-settlement
More about EPA’s National Enforcement Initiatives:
https://www.epa.gov/enforcement/cement-manufacturing-enforcement-initiative
Second Pharmaceutical Company Admits to Price Fixing, Resolves Related False Claims Act ViolationsRead the Press Release
Rising Pharmaceuticals Inc. (Rising), a generic pharmaceutical company headquartered in New Jersey, was charged for conspiring to fix prices and allocate customers for a generic hypertension drug, the Department of Justice announced today.
According to a one-count felony charge filed today in the United States District Court for the Eastern District of Pennsylvania in Philadelphia, from about April 2014 until at least September 2015, Rising participated in a criminal antitrust conspiracy with a competing manufacturer of generic drugs and its executives to fix prices and allocate customers for Benazepril HCTZ, a medicine used to treat hypertension. This charge is the fourth in the Department of Justice’s Antitrust Division’s ongoing criminal investigation in the generic pharmaceuticals industry; previously, two executives were charged and pleaded guilty to criminal antitrust violations, and a corporation, Heritage Pharmaceuticals Inc., was charged and entered into a deferred prosecution agreement with the Antitrust Division.
Today, the Antitrust Division also announced a deferred prosecution agreement resolving the charge against Rising, under which the company admits that it conspired to fix prices and allocate customers for Benazepril HCTZ. Under the deferred prosecution agreement, Rising agrees that $1,543,207 is the appropriate amount of restitution it owes to victims of the charged conduct. To account for Rising’s separate agreement with the Department’s Civil Division, which requires Rising to pay approximately $1.1 million in civil damages for False Claims Act violations predicated on Rising’s antitrust conduct, the deferred prosecution agreement calls for an offset of Rising’s restitution, to $438,066. The agreement also requires Rising to pay a $1.5 million monetary penalty, reduced from the fine of approximately $3.6 million called for under the U.S. Sentencing Guidelines, due to Rising’s financial condition and liquidation. Both the deferred prosecution agreement and civil settlement agreement require approval in the bankruptcy court. Once approved, the deferred prosecution agreement will be filed in district court.
In addition, under the deferred prosecution agreement, Rising has agreed to cooperate fully with Antitrust Division’s ongoing criminal investigation. To allow Rising to comply with the agreement’s terms, the United States will defer prosecuting Rising for three years, or until its ongoing bankruptcy proceedings become final, whichever comes first. The agreement will not be final until accepted by the court.
“Today’s charge, like the previous corporate and individual charges announced in this investigation, publicly affirms the Antitrust Division’s steadfast commitment to prosecuting the companies and executives who fixed prices of generic pharmaceuticals,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “Rising and its co-conspirators exploited patients that rely on Benazepril HCTZ as a low-cost alternative to brand-name medications to treat high blood pressure. The deferred prosecution agreement is an important step in restoring integrity to the generics industry. It will require from Rising not only an admission of guilt, a criminal penalty and cooperation in the ongoing investigation, but also restitution to the direct purchasers that bought Benazepril HCTZ at artificially inflated prices.”
“The U.S. Postal Service Office of Inspector General appreciates the opportunity to assist in these critical generics industry antitrust investigations,” said Special Agent in Charge Scott Pierce. “Aggressively pursuing those companies and executives who foster behavior related to price fixing, bid rigging and market allocation helps to ensure an open process by which generic pharmaceuticals can be competitively priced and sold. Working closely with the Department of Justice and our counterparts at the Federal Bureau of Investigation, the U.S. Postal Service Office of Inspector General stands ready to support these vital efforts going forward.”
“The FBI is proud to join our partners in this effort to uncover companies and individuals who attempt to exploit necessary medicines to cheat the economic system and illegally amass wealth,” said Timothy R. Slater, Assistant Director in Charge of the FBI’s Washington Field Office. “Today’s announcement shows the FBI’s level of commitment to investigating allegations of antitrust violations and illuminating criminal behavior so that the perpetrators can be held accountable.”
The Antitrust Division entered into this deferred prosecution agreement with Rising based on the individual facts and circumstances of this case. Among those facts and circumstances, the agreement specifically identifies the company’s substantial and ongoing cooperation with the investigation to date, including its disclosure of information regarding criminal antitrust violations involving drugs other than those identified in the criminal charge and the agreement. According to the agreement, this cooperation has allowed the United States to advance its investigation into criminal antitrust conspiracies among other manufacturers of generic pharmaceuticals. Other facts and circumstances identified in the agreement include Rising’s agreement to pay restitution, and the fact that a conviction (including a guilty plea) would result in substantial delay to Rising’s ongoing bankruptcy proceeding and liquidation. The agreement can ensure that Rising is held accountable for its criminal conduct and preserves the United States’ ability to prosecute it should material breaches occur.
In a separate civil resolution, Rising has agreed to pay $1.1 million to resolve allegations under the False Claims Act related to the price-fixing conspiracy. The government alleged that between 2013 and 2016, Rising paid and received remuneration through arrangements on price, supply, and allocation of customers with another pharmaceutical manufacturer for certain generic drugs in violation of the Anti-Kickback Statute, and that its sale of these drugs resulted in claims submitted to the Medicare and Medicaid programs.
“My Office is proud to announce the next civil healthcare fraud settlement with the Antitrust Division and the Civil Division,” said William M. McSwain, U.S. Attorney for the Eastern District of Pennsylvania. “We remain focused on price-fixing and market allocation in generic drugs and addressing the impact on federal healthcare programs like Medicare and Medicaid. This resolution with Rising is another important accomplishment in that area, which will only serve to accelerate our ongoing investigation.”
“Hypertension medicines are vital for patient health, and engaging in schemes to price fix these generic medicines is illegal and could potentially be dangerous, as some patients may have an inability to pay for the medicines they need,” said Maureen R. Dixon, Special Agent in Charge of the Philadelphia Regional Office of the Inspector General, Department of Health and Human Services. “HHS-OIG will continue to work with our law enforcement partners to investigate allegations of companies engaging in actions that put the public and the Medicare program at risk.”
The criminal charge is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the generic pharmaceutical industry, which is being conducted by the Antitrust Division with the assistance of the United States Postal Service Office of Inspector General, the FBI’s Washington Field Office and the U.S. Attorney’s Office for the Eastern District of Pennsylvania. Anyone with information on market allocation, price fixing, bid rigging and other anticompetitive conduct related to the generic pharmaceutical industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
The civil settlement was handled by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the Eastern District of Pennsylvania with support from the Department of Health and Human Services Office of the Inspector General. Except for those facts admitted to in the deferred prosecution agreement, the claims resolved by the civil settlement are allegations only, and there has been no determination of liability.
Second NJ-Based Pharmaceutical Company Admits to Price Fixing, Resolves Related False Claims Act ViolationsRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain and the Department of Justice announced that Rising Pharmaceuticals Inc. (Rising), a generic pharmaceutical company headquartered in New Jersey, was criminally charged for conspiring to fix prices and allocate customers for a generic hypertension drug, and in a related enforcement action, reached a civil settlement for violations of the False Claims Act, subject to bankruptcy court approval.
According to a one-count felony charge filed today in the United States District Court for the Eastern District of Pennsylvania, from about April 2014 until at least September 2015, Rising participated in a criminal antitrust conspiracy with a competing manufacturer of generic drugs and its executives to fix prices and allocate customers for Benazepril HCTZ, a medicine used to treat hypertension. This charge is the fourth in the Department of Justice’s Antitrust Division’s ongoing criminal investigation into the generic pharmaceuticals industry; previously, two executives were charged and pleaded guilty to criminal antitrust violations, and a corporation, Heritage Pharmaceuticals Inc., was charged and entered into a deferred prosecution agreement with the Antitrust Division in May 2019.
U.S. Attorney McSwain and the Antitrust Division also announced a deferred prosecution agreement resolving the charge against Rising, under which the company admits that it conspired to fix prices and allocate customers for Benazepril HCTZ. Under the deferred prosecution agreement, Rising agrees that $1,543,207 is the appropriate amount of restitution it owes to victims of the Benazepril HCTZ conspiracy. To account for Rising’s separate agreement with the Department of Justice’s Civil Division, which requires Rising to pay approximately $1.1 million in civil damages for False Claims Act violations predicated on Rising’s antitrust conduct, the deferred prosecution agreement calls for an offset of Rising’s restitution, to $438,066. The deferred prosecution agreement also requires Rising to pay a $1.5 million criminal penalty, reduced from the fine of approximately $3.6 million called for under the U.S. Sentencing Guidelines, as a result of Rising’s inability to pay a larger fine without impeding its ability to pay restitution and in light of its ongoing bankruptcy proceedings that will result in liquidation. Both the deferred prosecution agreement and civil settlement agreement are pending approval in the bankruptcy court. Once approved, the deferred prosecution agreement will be filed in district court.
In addition, under the deferred prosecution agreement, Rising has agreed to cooperate fully with the Antitrust Division’s ongoing criminal investigation. To allow Rising to comply with the agreement’s terms, the United States will defer prosecuting Rising for three years, or until its ongoing bankruptcy proceedings become final, whichever comes first. The agreement will not be final until accepted by the court.
The Antitrust Division entered into this deferred prosecution agreement with Rising based on the individual facts and circumstances of this case. Among those facts and circumstances, the agreement specifically identifies the company’s substantial and ongoing cooperation with the investigation to date, including its disclosure of information regarding criminal antitrust violations involving drugs other than those identified in the criminal charge and the agreement. According to the agreement, this cooperation has allowed the United States to advance its investigation into criminal antitrust conspiracies among other manufacturers of generic pharmaceuticals. Other facts and circumstances identified in the agreement include Rising’s agreement to pay restitution, and the fact that a conviction (including a guilty plea) would result in substantial delay to Rising’s ongoing bankruptcy proceeding and liquidation. The agreement ensures that Rising is held accountable for its criminal conduct and preserves the United States’ ability to prosecute the company should material breaches occur.
In the separate civil resolution, Rising has agreed to pay $1.1 million to resolve allegations under the False Claims Act related to the price-fixing conspiracy, subject to bankruptcy court approval. The government alleged that between 2013 and 2016, Rising paid and received remuneration through arrangements on price, supply, and allocation of customers with another pharmaceutical manufacturer for certain generic drugs in violation of the Anti-Kickback Statute, and that its sale of these drugs resulted in claims submitted to the Medicare and Medicaid programs.
“My Office is proud to announce our next round of enforcement actions in this criminal and civil investigation with the Antitrust Division and the Civil Division,” said U.S. Attorney McSwain. “We and our partners at the Antitrust and Civil Divisions remain heavily focused on price-fixing and market allocation in generic drugs and addressing the impact on federal healthcare programs like Medicare and Medicaid. These criminal and civil resolutions with Rising, if approved by the bankruptcy court, are yet another important accomplishment in that area.”
“Hypertension medicines are vital for patient health, and engaging in schemes to price fix these generic medicines is illegal and could potentially be dangerous, as some patients may have an inability to pay for the medicines they need,” said Maureen R. Dixon, Special Agent in Charge of the Philadelphia Regional Office of the Inspector General, Department of Health and Human Services. “HHS-OIG will continue to work with our law enforcement partners to investigate allegations of companies engaging in actions that put the public and the Medicare program at risk.”
“Today’s charge, like the previous corporate and individual charges announced in this investigation, publicly affirms the Antitrust Division’s steadfast commitment to prosecuting the companies and executives who fixed prices of generic pharmaceuticals,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “Rising and its co-conspirators exploited patients that rely on Benazepril HCTZ as a low-cost alternative to brand-name medications to treat high blood pressure. The deferred prosecution agreement is an important step in restoring integrity to the generics industry. It will require from Rising not only an admission of guilt, a criminal penalty and cooperation in the ongoing investigation, but also restitution to the direct purchasers that bought Benazepril HCTZ at artificially inflated prices.”
“The U.S. Postal Service Office of Inspector General appreciates the opportunity to assist in these critical generics industry antitrust investigations,” said Special Agent in Charge Scott Pierce. “Aggressively pursuing those companies and executives who foster behavior related to price fixing, bid rigging and market allocation helps to ensure an open process by which generic pharmaceuticals can be competitively priced and sold. Working closely with the Department of Justice and our counterparts at the Federal Bureau of Investigation, the U.S. Postal Service Office of Inspector General stands ready to support these vital efforts going forward.”
“The FBI is proud to join our partners in this effort to uncover companies and individuals who attempt to exploit necessary medicines to cheat the economic system and illegally amass wealth,” said Timothy R. Slater, Assistant Director in Charge of the FBI’s Washington Field Office. “Today’s announcement shows the FBI’s level of commitment to investigating allegations of antitrust violations and illuminating criminal behavior so that the perpetrators can be held accountable.”
The criminal charge is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the generic pharmaceutical industry, which is being conducted by the Antitrust Division with the assistance of the United States Postal Service Office of Inspector General, the FBI’s Washington Field Office and the U.S. Attorney’s Office for the Eastern District of Pennsylvania. Anyone with information on market allocation, price fixing, bid rigging and other anticompetitive conduct related to the generic pharmaceutical industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
The civil settlement was handled by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the Eastern District of Pennsylvania with support from the Department of Health and Human Services Office of the Inspector General. Except for those facts admitted to in the deferred prosecution agreement, the claims resolved by the civil settlement are allegations only, and there has been no determination of liability.
Previously Convicted Sex Offender Sentenced to 10 Years in Federal Prison for Possession of Child PornographyRead the Press Release
Baltimore and Greenbelt, Maryland - U.S. District Judge Ellen L. Hollander sentenced Mark Steven Bartles, age 55, of Hagerstown, Maryland, to 10 years in federal prison, followed by lifetime supervised release, for possession of child pornography. Judge Hollander also sentenced Bartles to 10 months in prison for violating his supervised release for a previous federal conviction for receipt and possession of child pornography, concurrent to his 10 year sentence. In addition, Judge Hollander ordered Bartles to pay $5,000 restitution to one of the children depicted in the images.
In a separate case, U.S. District Judge George J. Hazel ordered Kevin Patrick Wilson, age 58, of Bowie, Maryland, to serve 20 months in federal prison, followed by lifetime supervised release, for failure to register as a sex offender.
Both sentences were imposed on December 2, 2019.
Judges Hollander and Hazel also ordered that, upon their release from prison, defendants Bartles and Wilson must continue to register as sex offenders in the places where they reside, where they are employees, and where they are students, under the Sex Offender Registration and Notification Act (SORNA).
The sentences were announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office U.S. Marshal Johnny Hughes; and Washington County Sheriff Douglas W. Mullendore.
According to Bartles’s guilty plea, in 2007 he was convicted federally for receipt and possession of child pornography, and in 2015 Bartles was convicted in Washington County, Maryland for possession of child pornography. As a condition of his state probation, Bartles was prohibited from accessing the internet or possessing internet-capable devices. In September 2018, state probation agents received information from a family member that Bartles possessed an internet capable smart phone in a green case, which he used on a regular basis to access free wireless internet to view and download child pornography. The probation agents then went to the motel room where Bartles resided and asked for his phone. Bartles provided a ZTE phone that was lying on the bed. The agents then asked Bartles for the phone in the green case, which Bartles retrieved from the nightstand. The phone was forensically examined by the FBI and determined to contain over 40 images of child pornography, including images documenting the sexual abuse of prepubescent minors by adult men. FBI special agents also located evidence that the phone had accessed WiFi networks at the motel and a local convenience store.
According to Wilson’s guilty plea, he was convicted in March 2000, and again in August 2008, in Magnolia County West Virginia of two counts of first degree sexual abuse. On October 13, 2004, when Wilson was released from prison after his first conviction, and again on August 17, 2017, after his release from prison on his second conviction, Wilson completed the sex offender registration and verification form with the West Virginia State Police, as required under West Virginia state law. On August 17, 2017, Wilson advised that he was moving out of state to an address in Annapolis, Maryland.
In late 2017 or early 2018, the U.S. Marshals Service (USMS) received information that Wilson was living unregistered in West Virginia. A USMS inspector went to the address of the homeless shelter in Annapolis where Wilson had represented he would be living following his release from prison, but officials there had no record of contact with him and Wilson had never registered as a sex offender in Maryland. On February 5, 2018, Wilson was arrested in West Virginia for failing to register as a sex offender. Wilson subsequently provided law enforcement with addresses in Bowie and in Crofton, Maryland, but investigators found that Wilson had never lived at either address. In February 2019, USMS investigators discovered that Wilson had not registered as a sex offender in any jurisdiction. U.S. Marshals subsequently located and arrested Wilson at an address in Bowie on April 25, 2019. The investigation revealed that Wilson had lived in Maryland since October 16, 2018, but had failed to register as a sex offender.
These cases were brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Robert K. Hur commended the FBI and Washington County Sheriff’s Office for their work in the Bartles investigation, and the U.S. Marshals Service for its work in the Wilson investigation. Mr. Hur thanked Special Assistant U.S. Attorney Michael Davio, who prosecuted the Bartles case, and Assistant U.S. Attorney Dana J. Brusca, who prosecuted the Wilson case.
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Pottsville Woman Sentenced to 5+ Years in Prison for Perpetrating Elder Financial Fraud Known as “Grandparents Scheme”Read the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Yahaira Diaz, 33, of Pottsville, PA was sentenced to 65 months’ imprisonment and ordered to pay more than $165,000 in restitution by United States District Judge Jeffrey Schmehl for her leadership of an elder fraud scheme commonly known as the “Grandparents Scheme.” The defendant was immediately taken into custody after the hearing today.
The scheme operated as follows: an individual called an elderly victim posing as the grandchild of the victim, or posing as an attorney representing the grandchild. The caller claimed that the grandchild was in a vehicular accident and was arrested for driving under the influence (or some type of legal trouble). The caller then said that the grandchild needed money for bail or legal representation, and persuaded the victim to send thousands of dollars in cash via overnight delivery service to an address where the schemers retrieved the package. The schemers then continued to call the victim and demanded more money until the victim realized that he or she had been defrauded and stopped sending money.
Diaz played a leadership role in this scheme, which was based in Allentown and Bethlehem, Pennsylvania. For example, she identified and arranged for access to residential locations where her co-schemers instructed victims to send the fraud proceeds. Diaz recruited and controlled additional participants in the scheme who allowed her to use their residences for the receipt of proceeds, and who helped retrieve the packages and shared the proceeds with other co-schemers. Diaz engaged in numerous incidents of the Grandparents Scheme, as well as credit card fraud. In the Grandparents Scheme, Diaz and her co-schemers defrauded at least 10 elderly victims of at least $158,800 and attempted to defraud those victims of at least an additional $69,000.
“Diaz’s actions here were despicable: she callously preyed upon vulnerable seniors by exploiting their concern for their loved ones. And she played a leadership role, which makes her actions even more deserving of condemnation,” said U.S. Attorney McSwain. “Today, Diaz got what she deserved. My Office will continue to prioritize prosecuting criminals who prey upon our elderly residents.”
“Yahaira Diaz played a central role in this scam,” said Michael T. Harpster, Special Agent in Charge of the FBI's Philadelphia Division. “She had no compunction about swindling elderly victims out of their money, or playing on their emotions to do so. The FBI will never stop working to shut down elder fraud schemes like this, to protect older folks from those who would take advantage of them.”
The case was investigated by the Federal Bureau of Investigation, the United States Postal Service, the Bethlehem Police Department, and the Northampton County District Attorney’s Office, and is being prosecuted by Deputy United States Attorney Louis D. Lappen.
The Department of Justice is committed to combating elder fraud. The Department’s historic 2018 and 2019 Elder Fraud Sweeps collectively brought criminal and civil actions against more than 500 defendants responsible for defrauding more than $1.5 billion from at least 3 million victims.
Postal Employee Charged with Stealing Cash from MailRead the Press Release
PITTSBURGH - A Westmoreland County woman has been indicted by a federal grand jury in Pittsburgh on a charge of theft of mail by a postal employee, United States Attorney Scott W. Brady announced today.
The one-count Indictment named Dorothy Petrick, 56, of New Kensington, PA.
According to the Indictment, on or about December 22, 2018, Petrick was an employee of the United States Postal Service and stole $60 in United States currency that was intended to be conveyed by mail.
The law provides for a maximum total sentence of not more than five years in prison, a fine of $250,000 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. Bond of $5,000 unsecured has been requested.
Assistant United States Attorney Brian M. Czarnecki is prosecuting this case on behalf of the government.
The U.S. Postal Service-Office of Inspector General and the Lower Burrell Police Department conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.