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Wednesday 23 October 2019
Apollo, PA Man Conspired to Distribute More than 100 Pounds of Marijuana He Received from a Source in Denver, ColoradoRead the Press Release
PITTSBURGH - A resident of Apollo, Pennsylvania, pleaded guilty in federal court to a charge of conspiring to distribute more than 50 kilograms of marijuana, United States Attorney Scott W. Brady announced today.
Stephen Michael Lerch, 27, pleaded guilty to one count before United States District Judge William S. Stickman, IV.
In connection with the guilty plea, the court was advised that from May 2018 until October 2, 2018, Lerch received numerous parcels of marijuana and vaping cartridges containing THC from a drug source based in Denver, Colorado. Lerch’s source also delivered bulk amounts of marijuana to locations identified by Lerch in Western Pennsylvania. The conspiracy began to unravel when United States Postal Inspectors searched a parcel Lerch had mailed to his source. The parcel contained $27,500 in United States currency. Afterwards, Postal Inspectors searched the source’s apartment and found large amounts of cash and drug evidence. The Pittsburgh Field Office of the Drug Enforcement Administration was notified of this discovery and initiated an investigation of Lerch. On October 2, 2018, agents and task force officers of the DEA executed a search warrant at Lerch’s residence. The DEA recovered several pounds of marijuana from the residence along with two firearms; a vacuum sealer; a money counter; and $25,161.00 in cash. During the search, the investigators also learned that Lerch maintained accounts at S & T Bank and TD Ameritrade. These contents of these accounts were later seized pursuant to seizure warrants. Under the terms of his plea agreement, Lerch also agreed to the forfeiture of a Subaru Crosstrek and $102,290.79 on the basis that they were obtained from drug trafficking.
Judge scheduled sentencing for March 25, 2020. The law provides for a total sentence of 30 years in prison, a fine of $$2,000,000, 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.
Pending sentencing, the court released Lerch on bond.
Assistant United States Attorney Michael Leo Ivory is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, the United States Postal Inspection Service, and the West Metro Drug Task Force-Sheriff’s Office, Jefferson County, Colorado conducted the investigation that led to the prosecution of Lerch.
Amsterdam Hospital to Pay Civil Penalty for Violations of the Controlled Substances ActRead the Press Release
ALBANY, NEW YORK – St. Mary’s Healthcare in Amsterdam, New York, agreed to pay a $15,000 penalty as a result of its Narcotic Treatment Program’s (NTP) failure to create and maintain records required by the Controlled Substances Act (CSA), announced United States Attorney Grant C. Jaquith.
In March 2019, Drug Enforcement Administration diversion investigators inspected St. Mary’s NTP and noted multiple recordkeeping violations. When St. Mary’s relocated its NTP in October 2018, the NTP failed to conduct the required initial inventory of methadone at the new location. Furthermore, the NTP omitted material information on multiple forms required by DEA, which are used to order and track controlled substances. The forms omitted information such as quantity of packages ordered, date the containers were received, and the correct supplier. The lack of an initial inventory, combined with incomplete forms, made it difficult to determine whether diversion was occurring at the NTP. Diversion occurs when controlled substances are transferred from legitimate distribution channels to illegitimate distribution channels. Since this matter was brought to its attention, St. Mary’s created a new position for a registered nurse to oversee controlled substance dispensing at the NTP and is implementing a policy to enhance its compliance with the CSA recordkeeping requirements.
“Reliable recordkeeping is a cornerstone of the safe distribution of prescribed drugs,” said United States Attorney Grant C. Jaquith. “This settlement demonstrates that medical facilities that do not accurately keep track of addictive drugs will be held accountable. I commend St. Mary’s for promptly taking responsibility and changing its practices to enhance its compliance with the Controlled Substances Act and encourage all medical facilities to examine their own practices and ensure they are in full compliance.”
This case was investigated by the DEA’s Diversion Unit in Latham, New York. The United States was represented by Assistant U.S. Attorney Christopher R. Moran.
Alien Indicted on Illegal and Unlawful Alien in Possession of a FirearmRead the Press Release
WILMINGTON – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Wilmington has returned an indictment charging TELESFORO RENZAURES-JACOME, age 32, of Mexico, with illegal and unlawful alien in possession of a firearm.
If convicted RENZAURES-JACOME, found in Lenoir County, would face maximum penalties of ten years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
Homeland Security Investigations is investigating this case.
Akron man indicted on fentanyl and heroin chargesRead the Press Release
An Akron man was indicted today in federal court for dealing fentanyl and heroin.
Weston D. McDaniels, 34, was indicted on one count each of possession with intent to distribute fentanyl and of possession with intent to distribute heroin.
McDaniels possessed 300 grams or more of heroin and fentanyl on September 13 that was purchased in for distribution elsewhere, according to the indictment.
The Greater Akron Area Safe Streets Task Force, the Akron Police Department, Ohio State Highway Patrol and the Federal Bureau of Investigation investigated the case. It is being prosecuted by Assistant U.S. Attorney Damoun Delaviz.
If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Akron Carfentanil Dealer Sentenced to 120 Months in PrisonRead the Press Release
HUNTINGTON, W.Va. – An Akron, Ohio man was sentenced to federal prison for a drug trafficking crime, announced United States Attorney Mike Stuart. Martel Trayvelle Easton, 21, was sentenced to 120 months in prison for possession with intent to distribute carfentanil. Easton was also ordered to serve a 5 year term of supervised release following completion of his prison sentence. Carfentanil is a form of fentanyl but 100 times more powerful, and 10,000 times more powerful than morphine. It is used as an elephant tranquilizer, and is commonly mixed with heroin and known on the street as “pink heroin.”
“One gram of carfentanil could kill 50,000 people. Easton’s arrest may have saved the lives of nearly 10 million people,” said United States Attorney Mike Stuart. “I commend law enforcement for the perilous work they do every single day to remove dangerous drug dealers from our communities.”
Easton previously pled guilty to possessing with intent to distribute over 196 grams of carfentanil and admitted that on February 7, 2018, the Huntington Violent Crime and Drug Task Force, along with member of the Huntington Police Department, served a search warrant at 1217 10th Avenue in Huntington after seeing drug trafficking activity from that apartment, which was being used a storage house for drugs. Easton was in the apartment when law enforcement entered and ran out the back door while throwing cash. After a brief struggle, Easton was subdued and arrested. Law enforcement also seized a dealer amount of methamphetamine during the search.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Greg McVey handled the prosecution.
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AG William Barr Recognizes Department Employees and Others for Their Service at 67th Annual Attorney General AwardsRead the Press Release
WASHINGTON – Attorney General William P. Barr recognized 295 department employees, including three from the U.S. Attorney’s Office in the Western District of Pennsylvania, for their distinguished public service today at the 67thAnnual Attorney General’s Awards Ceremony. Sixty-two other individuals outside of the department were also honored for their work. This annual ceremony recognizes employees and other individuals who have demonstrated exceptional achievements, leadership, and service to the Department of Justice and the American people.
"Our greatest strength in our fight for justice is our people – the thousands of men and women who have dedicated their careers, often at great personal sacrifice, to working for justice in America," said Attorney General William P. Barr. "As we reflect on the contributions of each of the 357 individuals we honor today, we should hold them up as examples of excellence that continue to inspire our own commitment, and also as reminders of the professionalism and the qualities exhibited throughout the Department."
Assistant U.S. Attorneys Charles A. Eberle IV and Soo C. Song, and Legal Assistant Susan E. Eichhorn, along with personnel from the National Security Division and the Federal Bureau of Investigation, were recognized for their extraordinary efforts in United States v. Aleksei Sergeyevich Morenets, et al. The investigation involved a criminal hacking operation based out of Moscow and the theft and public dissemination of the records of 250 athletes, including U.S. Olympians. In addition to targeting anti-doping agencies, multiple public and private agencies were targeted in retaliation to the ban of Russian athletes.
"This team skillfully facilitated the cooperation of law enforcement worldwide, which led to the indictment in Pittsburgh of seven Russian military hackers, and the successful shutdown of the websites the defendants used to disseminate the private information," said U.S. Attorney Brady. "The deterrent effect of this investigation and the resulting charges have had global implications."
This year’s program honors individuals across the department and our federal, state, local, and tribal partners for their self-less efforts, protecting our national security and our civil rights, addressing rising violent crime in our communities, going after gangs and those trafficking in dangerous narcotics and human beings. The awards also honor the work of civil and environmental litigation, which enforces the rule of law and upholds our Constitution. They also recognize employees whose ideas and efforts save taxpayer dollars and help our government operate more effectively and efficiently, among other contributions to public safety and good governance.
AG Barr recognizes SDTX attorneys for work on hate crime caseRead the Press Release
HOUSTON – Attorney General William P. Barr recognized two Southern District of Texas (SDTX) employees for their distinguished public service at the 67th Annual Attorney General’s Awards Ceremony today.
This annual ceremony, held in Washington D.C., recognizes employees and other individuals who have demonstrated exceptional achievements, leadership and service to the Department of Justice and the American people.
Assistant U.S. Attorneys Sharad Khandelwal and Kate Suh were recognized along with Department of Justice Trial Attorney Saeed Mody for the successful prosecution of Marq Vincent Perez.
On Jan. 28, 2017, Perez burned down a mosque in Victoria.
An investigation revealed Perez had broken into the mosque a week earlier, tried to blow up a car using a homemade bomb, recruited others to “scope out” other mosques and threatened to burn the mosque down if it was rebuilt
The trial commenced for a week and involved testimony from more than 25 witnesses. The federal jury in Victoria returned guilty verdicts July 16, 2018, on all counts as charged. They found Perez responsible for a hate crime in the burning of the mosque, use of fire to commit a felony and for possessing an unregistered destructive device for an incident that occurred Jan. 15, 2017.
Observing that this case struck at the heart of what it means to be an American because it concerned a core right of religious freedom, the district court sentenced Perez to more than 24 years in prison.
“Our greatest strength in our fight for justice is our people – the thousands of men and women who have dedicated their careers, often at great personal sacrifice, to working for justice in America,” said Barr. “As we reflect on the contributions of each of the 357 individuals we honor today, we should hold them up as examples of excellence that continue to inspire our own commitment, and also as reminders of the professionalism and the qualities exhibited throughout the Department.”
This year’s program honored individuals across the department and federal, state, local and tribal partners for their self-less efforts, protecting national security and civil rights, addressing rising violent crime in our communities, going after gangs and those trafficking in dangerous narcotics and human beings. The awards also honor the work of civil and environmental litigation, which enforces the rule of law and upholds our Constitution. They also recognize employees whose ideas and efforts save taxpayer dollars and help our government operate more effectively and efficiently, among other contributions to public safety and good governance.
212 Month Prison Sentence for Convicted Felon Guilty of Possessing Methamphetamine with Intent to Distribute While on Federal Supervised Release, State ParoleRead the Press Release
MACON, Ga.— A Monroe County, Georgia man with a lengthy criminal history was sentenced Tuesday to 212 months in federal prison after admitting he possessed methamphetamine with the intent to distribute it while serving both a federal supervised release sentence and a state parole sentence for drug related crimes, announced Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. U.S. District Judge Tilman E. “Tripp” Self sentenced Chadwick Brown, 38, of Forsyth, Georgia to 188 months in prison followed by 5 years of supervised release for his most recent crime of possession of methamphetamine with intent to distribute. Mr. Brown was further sentenced to 24 months imprisonment for violating the terms of his federal supervised release by possessing the methamphetamine with intent to distribute it, that term of imprisonment to run consecutive, for a total of 212 months in prison. There is no parole in the federal system.
Mr. Brown entered a guilty plea to possession with intent to distribute methamphetamine on May 29, 2019, nearly a year after he ran from two Georgia Department of Community Supervision (DCS) officers attempting to execute a state parole violation. After a foot chase, Mr. Brown was apprehended in possession of methamphetamine, other drugs, a digital scale and cash. Mr. Brown admitted he was attempting to distribute methamphetamine.
“It is critical that released offenders comply with any and all conditions post release from their prison sentence. Failure to do so can lead to prosecution and additional prison time,” said U.S. Attorney Charlie Peeler. “I want to thank the Department of Community Supervision for their efforts ensuring that those returning to society post-prison are in compliance while protecting the safety of our citizens.”
“DCS officers work tirelessly to protect our communities by ensuring those whom we supervise remain in compliance with the conditions of their supervision. We recognize this cannot be done alone and appreciate the support of our fellow partners in law enforcement,” said Brian Tukes, External Affairs Director, Georgia Department of Community Supervision.
Two Georgia DCS officers executed a parole warrant on Mr. Brown on May 9, 2018 at a Forsyth residence. Mr. Brown took off running after being approached by the DCS officers. When he was apprehended in a neighbor’s yard, officers discovered numerous illegal drugs on him, including methamphetamine, a digital scale and $1,579 in cash. Mr. Brown is a career offender with multiple drug related convictions dating back to 2002. Mr. Brown was sentenced in 2012 to 48 months in prison and three years supervised release after pleading guilty in 2011 to one count maintaining drug involved premises in U.S. District Court, Middle District of Georgia. Also in 2012, Mr. Brown was sentenced to 20 years in state prison, with the first eight years in confinement and the balance on probation, for possession with intent to distribute cocaine in Meriwether County Superior Court. Mr. Brown was actively on federal supervised release and state probation at the time of his 2018 arrest in this case.
The case was investigated by the Georgia Department of Community Supervision, the Georgia Bureau of Investigation and the Monroe County Sheriff’s Office. Assistant U.S. Attorney Steven Ouzts prosecuted the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
11 Eastern District of New York Employees and Two Former Assistant U.S. Attorneys Receive Attorney General AwardsRead the Press Release
WASHINGTON – Eight Assistant United States Attorneys (AUSA), three paralegal specialists and two former AUSAs from the Eastern District of New York (EDNY) were among the 295 department employees recognized by Attorney General William P. Barr for their distinguished public service today at the 67th Annual Attorney General’s Awards Ceremony. Sixty-two other individuals outside of the department were also honored for their work. This annual ceremony recognizes employees and other individuals who have demonstrated exceptional achievements, leadership and service to the Department of Justice and the American people.
“Our greatest strength in our fight for Justice is our people – the thousands of men and women who have dedicated their careers, often at great personal sacrifice, to working for Justice in America, said Attorney General William P. Barr. “As we reflect on the contributions of each of 357 individuals we honor today, we should hold them up as examples of excellence that continue to inspire our own commitment, and also as reminders of the professionalism and the qualities exhibited throughout the Department.”
“The EDNY honorees, together with our law enforcement partners, successfully litigated extremely complex cases on a world stage, prosecuting Joaquin “El Chapo” Guzman for his countless crimes against the people of the United States and Mexico as a leader of the Sinaloa drug cartel, uncovering corruption and financial crimes at the French multinational bank Société Générale S.A., and dismantling a transnational human trafficking enterprise responsible for the sexual slavery of women trapped in its clutches,” stated United States Attorney Richard P. Donoghue. “This Office is proud of the far-reaching justice the honorees achieved as a result of their exceptional work.”
This year’s program honors individuals across the department and our federal, state, local and tribal partners for their self-less efforts protecting our national security and civil rights, addressing rising violent crime in our communities, interdicting gangs and those trafficking in dangerous narcotics and human beings. The awards also honor civil and environmental litigation, which enforces the rule of law and upholds our Constitution. They also recognize employees whose ideas and efforts save taxpayer dollars and help our government operate more effectively and efficiently, among other contributions to public safety and good governance.
The Attorney General’s David Margolis Award for Exceptional Service.
United States v. Joaquin "El Chapo" Guzman
The recipients of the Department of Justice’s highest award are Assistant United States Attorneys Gina Parlovecchio, Andrea Goldbarg, Hiral Mehta, Patricia Notopoulos and Michael Robotti; Paralegal Specialists Huda Abouchaer, Melissa Bennett and Eileen Rosado, and the members of their team from the United States Attorney's Office, Southern District of Florida, Department of Justice Criminal Division, Federal Bureau of Investigation, Homeland Security Investigations and Drug Enforcement Administration were also recognized for their exceptional achievements in the investigation and prosecution of Joaquin “El Chapo” Guzman. Guzman was a principal leader of the Sinaloa Cartel, a Mexico-based international drug trafficking organization responsible for importing and distributing staggering quantities – 10s of thousands of tons - of narcotics from Central and South America into the United States over a 25-year period. The cartel controlled significant portions of Mexico and relied upon violence and corruption to maintain its power. Guzman directed his hitmen to kidnap, interrogate, torture and kill members of rival drug organizations, and at times he personally carried out acts of violence. Guzman utilized a sophisticated encrypted communications network to operate the global narcotics trafficking operation. To maintain his grip on parts of Mexico and further the interests of the cartel, Guzman took advantage of a vast network of corrupt government officials, from local law enforcement officers, prison guards and state officials, to high ranking members of the armed forces, as well as politicians. Although indicted in multiple U.S. districts, Guzman was ultimately extradited to EDNY to face the most comprehensive case against him, alleging a 25-year continuing criminal enterprise (CCE), plus multiple substantive international narcotics trafficking and weapons charges. Following a 12-week trial that included testimony from 56 witnesses, l4 cooperating witnesses, narcotics seizures totaling over 130,000 kilograms of cocaine and heroin, weapons, ledgers, text messages, letters, videos and intercepted recordings detailing the drug trafficking activity of Guzman and his co-conspirators, on February 12, 2019, Guzman was convicted of all counts of the superseding indictment. On July 17, 2019, Guzman was sentenced to life imprisonment plus 30 years for his role as a leader of a CCE, a charge that included 26 drug-related violations and one murder conspiracy. The Court also ordered Guzman to pay $12.6 billion in forfeiture. This successful prosecution was the capstone to a decades-long effort to bring Guzman to justice.
The Attorney General’s Award for Distinguished Service
United States v. Société Générale S.A.
The recipients of the Department of Justice’s second highest award are Assistant United States Attorneys David Pitluck and James McDonald, former Assistant United States Attorney Matthew Amatruda and the members of their team from the DOJ Criminal Division, Federal Bureau of Investigation and Internal Revenue Service were recognized for their outstanding work in a multi-year (2012 - 2018) investigation that uncovered significant financial crimes at French multinational bank Société Générale S.A. (“SGA”), and led to a successful criminal prosecution of the bank resulting in penalties of more than $860 million. When combined with regulatory penalties imposed in a parallel Commodity Futures Trading Commission case, the total penalties paid by SGA exceeded $l billion. The team found and reviewed voluminous electronic and documentary material establishing violations of the Foreign Corrupt Practices Act (FCPA), as well as commodities fraud through the manipulation of LIBOR. The investigation required identifying and obtaining foreign bank records and reviewing thousands of audio recordings made by SGA employees. In addition, the team conducted multiple international interviews and coordinated with witnesses and law enforcement authorities from an array of foreign countries to obtain the evidence that led to the successful prosecution. As part of the FCPA case, SGA Société Générale Acceptance N.V, a subsidiary of SGA, pled guilty to conspiracy to violate the FCPA. SGA entered into a deferred prosecution agreement to resolve the FCPA and LIBOR charges. Notably, the FCPA prosecution team provided significant assistance to French criminal authorities to facilitate the first simultaneous resolution of an FCPA case with the French government. These cases demonstrate the value of robust and coordinated criminal enforcement, both within the Department and with its law enforcement partners in the U.S. and abroad, and the Department's commitment to holding accountable large financial institutions that engage in corruption and manipulation in the financial markets.
United States v. Rendon Reyes
Assistant United States Attorney Maggie Lee, former Assistant United States Attorney Taryn Merkl and the members of their team from the Civil Rights Division, Criminal Section, and Homeland Security Investigations were recognized for their outstanding work in dismantling a transnational human trafficking enterprise that operated for over a decade, compelling multiple young women and girls into prostitution through deception, manipulation, sexual assault, physical violence, psychological coercion, forced abortions and threats against the victims, their families and their children. The Rendon-Reyes prosecution team led an extensive investigation, spanning multiple U.S. and Mexican jurisdictions, utilizing victim-centered strategies to identify, stabilize and protect the victims of the trafficking organization. The team of prosecutors, victim specialists, paralegals and special agents coordinated extensively with Mexican anti-trafficking authorities, through the U.S.-Mexico Bilateral Human Trafficking Enforcement Initiative, to execute an enforcement action carried out simultaneously on both sides of the border, resulting in the arrests of all eight members of this notorious human trafficking organization. The team went on to secure rapid extraditions of the defendants apprehended in Mexico, and convictions of all defendants charged in a 27-count indictment with multiple counts of racketeering and racketeering conspiracy, involving predicate acts of sex trafficking, money laundering and related violations. In January 2019, the prosecutions culminated in sentences of 15 to 25 years’ imprisonment for the lead defendants and restored the lives of multiple victims.
Tuesday 22 October 2019
Vapes and Cartridges to be Accepted During National Drug Take Back DayRead the Press Release
KANSAS CITY, KAN. – Vapes and cartridges will be accepted at drop off locations throughout Kansas during National Drug Take Back Day Saturday, Oct. 26, U.S. Attorney Stephen McAllister said.
“The public is welcome to dispose safely of vaping devices and liquids to get these products off our streets and out of the hands of children,” McAllister said.
As usual, the sites participating in the Drug Enforcement Administration-sponsored event also will accept prescription drug tablets, capsules and patches. Sites will be open from 10 a.m. to 2 p.m.
According to the 2018 National Survey on Drug Use and Health, 9.9 million Americans misused controlled prescription drugs. The study showed a majority of those drugs were obtained from family and friends, often from the home medicine cabinet.
During the most recent National Drug Take Back Day in April, 4,969 law enforcement agencies participated at 6,258 sites. They collected more than 468 tons of unused drugs. To find a site near you visit https://takebackday.dea.gov/ and use the collection site locator.
Vallejo Man Sentenced to 12 Years in Prison for Being a Felon in Possession of a FirearmRead the Press Release
SACRAMENTO, Calif. — Sammy Davis Dewitt Morgan, 38, of Vallejo, was sentenced today by U.S. District Judge John A. Mendez to 12 years in prison for being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court records, in Dec. 2017, Morgan led police on a high-speed chase through a residential area in Vallejo at speeds that reached 75 miles per hour. The chase ended when Morgan lost control of his car and crashed into the security fencing at a local business. When Morgan got out of his car, officers detained him in handcuffs. As the officers were doing so, they found a .40-caliber pistol with a 22-round extended magazine in Morgan’s waistband. Afterwards, the officers conducted a parole search at Morgan’s apartment and found ammunition in various calibers. Morgan cannot lawfully possess firearms or ammunition because he has previously been convicted of six felony offenses. Morgan pleaded guilty on Oct. 23, 2018.
This case was the product of an investigation by the Vallejo Police Department with assistance from the FBI’s Solano County Violent Crimes Task Force and the Solano County District Attorney’s Office.
U.S. Marshals Auctioning Collection of 149 Classic, Luxury VehiclesRead the Press Release
Washington, DC – The U.S. Marshals are holding a live auction in Woodland, California, at 9 a.m. PDT Saturday, Oct. 26, for approximately 149 classic, luxury and performance vehicles from a federal civil case involving the owners of the defunct DC Solar company in the Eastern District of California.
The auction will be held at Apple Towing, 550 N. Pioneer Ave., Woodland, CA 95776. The auction will also be simulcast on the web, so people can participate without having to attend in person.
An auction preview will take place from 8 a.m. to 4 p.m. Thursday, Oct. 24, and Friday, Oct. 25, at the same location as the auction. Prebidding is currently underway via the Apple Auctioneering Company website, www.appleauctioneeringco.com.
“It is rare for the U.S. Marshals to hold an auction of such a stunning collection of vehicles,” said Chief Deputy U.S. Marshal Lasha Boyden with the Sacramento office of the U.S. Marshals. “We’ve got classic 1960s Ford Mustangs, 1990s Humvees, a 1960 Austin-Healey, and even a 1978 Pontiac Trans Am that was owned by Burt Reynolds as a memento of the car he drove in the movie ‘Smokey and the Bandit.’”
The vehicles are being sold pursuant to an interlocutory sale order in the federal case United States v. 2011 BMW 328i, et al., case number 19-mc-00053 in the Eastern District of California.
For more information and photos: auction website: www.appleauctioneeringco.com
The Department of Justice Asset Forfeiture Program is a key component of the federal government’s law enforcement efforts to combat major criminal activity by disrupting and dismantling illegal enterprises, depriving criminals of the proceeds of illegal activity, deterring crime and restoring property to victims. The U.S. Marshals Service plays a critical role in identifying and evaluating assets that represent the proceeds of crime as well as efficiently managing and selling assets seized and forfeited by DOJ.
U.S. Department of Justice awards Washington State nearly $5.3 million for testing backlog of sexual assault kitsRead the Press Release
Seattle – U.S. Attorney Brian T. Moran announced today that the Washington State Patrol and the State Attorney General’s Office received four grants totaling nearly $5.3 million to reduce the backlog of untested rape kits and improve the scientific capacity of the state crime labs.
“In my long career as a prosecutor, I saw first-hand the value of DNA evidence to solve crimes and get violent predators off the street,” said U.S. Attorney Moran. “DOJ understands that we cannot leave untested evidence languishing in storage. These funds will help Washington keep up with the scientific advances in DNA that can both identify the guilty and exonerate the innocent.”
The Washington State Attorney General’s Office was awarded two grants: $1.5 million is directed at inventorying, testing and tracking unsubmitted rape kits and an additional $1 million was awarded to expand the collection of DNA from offenders and its submission to the Combined DNA Index System (CODIS).
The Washington State Patrol was awarded two grants totaling more than $2.7 million. The largest grant, $1,857,667 is to increase the capacity of all the WSP crime labs, including equipping a new DNA section in the Vancouver, Washington crime lab. One goal of the grant is to reduce the backlog of cases. The second WSP lab grant for $920,951 is aimed at digitizing and storing some 480,000 case records currently archived in off-site storage so that they can more easily be accessed for investigation.
The grants were awarded by the Bureau of Justice Assistance and the National Institute of Justice.
For additional information on individual grants, please contact the recipient organizations.
U.S. Attorney Announces Statistics on Cases Charged in the Northern District of CaliforniaRead the Press Release
SAN FRANCISCO – U.S. Attorney David L. Anderson released statistics today from the U.S. Department of Justice reporting on the numbers of criminal defendants charged in the Northern District of California during the 2019 fiscal year ended September 30, 2019. Also presented were statistics identifying the numbers of defendants charged in fiscal year 2018.
According to the statistics, the Office of the United States Attorney filed cases against a total of 671 defendants in FY 2019, an increase of more than 24% from the 540 defendants charged the previous year. The increase in criminal case filings includes the highest ever number of defendants charged federally in the Northern District of California in two categories of cases: violent crime (up 35% from 163 defendants in FY 2018 to 220 defendants in FY 2019) and firearms violations (up 19% from 159 defendants in FY 2018 to 187 defendants in FY 2019). Cases filed against defendants in drug cases also increased during FY 2019: in 2018, the Northern District of California charged drug offenses against 145 defendants whereas in FY 2019, the office charged 230 defendants in drug cases, an increase of 53% in the number of defendants charged in drug cases. Immigration filings decreased by 5% from 39 defendants in FY 2018 to 37 in FY 2019. White collar filings increased 8% from 102 defendants in FY 2018 to 111 defendants in FY 2019.
“Our objective is to serve the community, vindicate federal interests, and uphold the rule of law," stated U.S. Attorney Anderson. "Although the most recent statistics reflect a massive acceleration of our practice, the case charging statistics are one but only one of the many ways we use to measure our achievement of that objective.”
“The acceleration of our case charging statistics is equally balanced between expanded outreach and practice improvement.”
“Amidst a background of gun violence and gun debate, our job is to vigorously enforce the gun laws that Congress has passed and the Courts have upheld,” Anderson said.
U.S. Attorney Announces Office Collects over $2.3 MillionRead the Press Release
BOISE – United States Attorney Bart M. Davis announced today that his office’s Financial Litigation Unit collected more than $1.6 million in criminal restitution, fines, and assessments and in civil debts for the fiscal year that ended September 30, 2019. In some cases, the U.S. Attorney’s Office worked in conjunction with litigating components of the U.S. Department of Justice. Of the total collected, approximately $1.3 million were criminal restitution, fines, and/or assessments, and approximately $325,179 were civil debts. In addition, the Asset Forfeiture Unit collected approximately $721,211 in proceeds and instruments of crime in criminal and civil forfeiture actions.
“Our collection and asset forfeiture staff of attorneys, paralegals, analysts, and fiscal agents ensure that those who have caused loss to victims pay those victims back and ensure that those who have profited from committing crimes in the District of Idaho are deprived of the proceeds and tools of their crimes,” said Davis. “These same folks also ensure that those who owe the federal government money, as a result of litigation in this District or as a result of longtime debt, make appropriate payments. This year, all of these dedicated individuals have done outstanding work and served this office, the taxpayers, and this community well.”
Victims of crime receive funds collected in criminal restitution cases. In fiscal year 2019, the U.S. Attorney’s Office, through the Financial Litigation Unit, collected over $1.168 million in criminal restitution that was or will be distributed to victims of crime. Other criminal collections such as fines go into the Crime Victims Fund. From there, funds are distributed to the Idaho Crime Victims Compensation Program, the Idaho Council on Domestic Violence and Victim Assistance, and similar programs across the country. Money recovered from the illegal proceeds of criminal activity through forfeiture is returned to victims, used to offset the costs of operating federal prisons, and shared with local, state, and federal law enforcement agencies to help fight crime. Other recoveries go back to agency creditors.
During the fiscal year, some notable criminal restitution collections include approximately $150,600 paid by the defendant in a child pornography case and over $77,366 and $55,372 recovered from real estate sales and refinances to pay fraud restitution in two separate cases. In addition, over $24,382 was collected from the sale of a home in a child exploitation case to pay restitution. The Treasury Offset Program helped collected almost $200,000 toward restitution and fine debt.
Forfeitures valued at approximately $721,211 included currency, vehicles, and real property related to trafficking in controlled substances, fraud, child exploitation, and other serious crimes. Forfeitures also included approximately 146 firearms used or possessed during criminal activities. Forfeited firearms typically are destroyed, to prevent their use in future crimes. In some cases, the United States shared, or will share, seized money and property with local investigating agencies. In victim cases, the U.S. Attorney’s Office works to direct proceeds of forfeiture to crime victims.
As for civil debts and penalties, the Financial Litigation Unit collects civil penalties for violations of regulations involving, among other things, controlled substances, environmental protection, damage to federal property, and procurement fraud. It also collects civil debts for defaulted loans.
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U.S. Attorney Andrew Murray Testifies Before U.S. Senate Judiciary SubcommitteeRead the Press Release
WASHINGTON, D.C. – On October 22, 2019, United States Attorney Andrew Murray testified at a hearing before the Senate Judiciary Subcommittee on Sanctuary Jurisdictions: The Impact on Public Safety." U.S. Attorney Murray's oral remarks, as prepared, are below:Chairman Graham, Ranking Member Feinstein, and other distinguished Members of the Committee, thank you for the opportunity to speak with you today regarding the challenges faced by law enforcement in jurisdictions with sanctuary policies.
Over the past several decades, lawmakers in a number of states and municipalities have enacted laws intended to limit police involvement in federal immigration enforcement activities. These sanctuary policies protect known criminal aliens who have been arrested for committing crimes unrelated to their immigration status.
I currently serve as the United States Attorney for the Western District of North Carolina which encompasses the City of Charlotte. As U.S. Attorney, and previously as the District Attorney for Charlotte, I’ve witnessed firsthand the devastating impact that sanctuary policies can have on the community. I’ve seen how these policies destroy the lives of innocent victims and their families.
There are two very recent cases in Charlotte that serve as unfortunate examples of the clear threat to public safety that such policies pose. In May, Mr. Pineda-Anchecta was arrested not once, but twice, by local law enforcement for assaulting a female, strangulation, and kidnapping, among other offenses. Each time Pineda-Anchecta was arrested, ICE filed a detainer with the Mecklenburg County Sheriff’s Office requesting that he be held in custody so that immigration officers could have a reasonable period of time to determine his true identity and immigration status. Each time, the federal detainer was ignored by the Sheriff’s office, and Pineda-Anchecta was released without ICE being notified. Prior to his second arrest by the police, Pineda-Anchecta engaged in an hours-long standoff at an apartment complex with a Charlotte police SWAT team, potentially exposing many innocent bystanders and law enforcement officers to serious harm. After Pineda-Anchecta was released from state custody a second time, he allegedly strangled, restrained and kidnapped the same victim from the first crime. He was eventually located and arrested by ICE, following an intensive and exhaustive search. At the time of his arrest by ICE, Pineda-Anchecta and another individual were sitting in a vehicle, with a readily available pistol and ammunition.
A second example is Leonardo Pacheco, a Honduran citizen and a repeat immigration violator, who was arrested in June by local law enforcement, for the alleged first degree rape of an eleven-year-old child. Once again, the Mecklenburg County Sheriff’s Office ignored an ICE detainer and the defendant was released from jail the day after his arrest. Nearly two months later, during a targeted enforcement operation, ICE was able to take the defendant into federal custody. For nearly two months, as a result of the Sheriff’s reckless sanctuarypolicy, the defendant was free to potentially harm other innocent and helpless children.
Over a recent nine-month period, there were at least 23 other foreign nationals who had been released back to the community as a result of the local Sheriff’s refusal to comply with ICE detainers. Among those released are individuals charged with serious criminal offenses, such as sex offenses, serious assaults, kidnappings and attempted murder, to name a few. Some of these individuals are still at-large despite law enforcement’s best efforts to locate and arrest them.
This is just part of a growing list of unlawfully present criminal aliens who could have been arrested and removed from the United States. Yet, current sanctuary policies allow them to remain in this country, at the expense of the safety of our communities and our law enforcement.
Unfortunately, what I have witnessed in North Carolina is not unique - innocent men, women and children are becoming victims of preventable crimes across the country every day due to sanctuary policies.
The American people deserve a lawful immigration system that keeps us safe and serves our national interest. The Department of Justice is committed to supporting all of our nation’s state, local, and tribal law enforcement, and to working with anyone who seeks to protect our communities from violent criminals.
Mr. Chairman, I thank you for holding this hearing on such an important issue. I look forward to answering any questions you may have.
Download remarks in PDF format:
USA Murray 10.22 Sanctuary Hearing Oral RemarksTwo plead guilty to participation in a Ponzi scheme involving $2.5 billion in transactions and $1 billion in lossRead the Press Release
SACRAMENTO, Calif. — Two defendants pleaded guilty today to their participation in a massive fraud scheme involving a solar energy company in Benicia, that defrauded investors of approximately $1 billion, U.S. Attorney McGregor W. Scott announced. Those losses resulted from investment transactions in solar energy hardware valued at approximately $2.5 billion.
According to court documents, between 2011 and 2018, the solar energy company manufactured mobile solar generator units (MSG), solar generators that were mounted on trailers. The company touted the versatility and environmental sustainability of the MSGs and claimed that they were used by cellphone companies to provide emergency power to cell towers in the case of a power failure. They were also claimed to be used to power lights at sporting and other events.
The company solicited investors by claiming that there were very favorable federal tax benefits associated with investments in alternative energy. The company structured the transactions in order to maximize the tax benefits to the investors. Investors would buy the MSGs without ever taking possession of them. They would pay a percentage of the sales price and finance the balance with the company. Then the investors would lease the MSGs back to the company, which in turn leased them to third parties. A portion of the lease revenue would be used to pay the investors’ debts to the company and to the investors. The third‑party leases, however, generated little income and the company paid early investors with funds contributed by later investors.
According to court documents, Ronald J. Roach, 53, of Walnut Creek, a certified public accountant, provided accounting and tax services to the solar energy company. To trick investors, Roach prepared years of financial statements that falsely characterized investments to purchase MSGs as revenue earned from the rental of those MSGs. Roach and his co-conspirators used those fraudulent financial statements to hide from investors the company’s use of later investor payments to pay financial obligations the company made to earlier investors—in a classic, Ponzi-like scheme. Roach also pleaded guilty to securities violations associated with the same investment fraud scheme.
Joseph W. Bayliss, 44, of Martinez, a general contractor and electrician who provided services to the solar energy company, pleaded guilty to conspiring with Roach and others in connection with the same scheme to defraud investors. Bayliss admitted to preparing thousands of false reports certifying the existence and operating specifications of thousands of MSGs sold to investors. Bayliss admitted that, for at least two years, he signed many of those false reports knowing that the MSGs associated with them did not exist, and knowing investors would rely on those false reports. Bayliss also admitted that, at the direction of a co-conspirator, he flew to Las Vegas to destroy evidence after the execution of search warrants at the company’s headquarters and other locations in December 2018.
This case is the product of an investigation by the Federal Bureau of Investigation, IRS‑Criminal Investigation, and the Federal Deposit Insurance Corporation Office of Inspector General. Assistant U.S. Attorneys André M. Espinosa and Kevin C. Khasigian are prosecuting the case.
The investigation is ongoing. Roach and Bayliss are schedule to be sentenced by U.S. District Judge John A. Mendez on Jan. 28, 2020. Roach faces a maximum statutory penalty of 10 years in prison. Bayliss faces a maximum statutory penalty of five years in prison. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Two Texas Women Indicted for Money Laundering SchemeRead the Press Release
TYLER, Texas – U.S. Attorney Joseph D. Brown announced that two Texas women have been indicted on money laundering charges in the Eastern District of Texas.
Pamela Sue Hannan, 66, of Sherman, Texas, and Pamela Sue Jennings, 68, of Houston, Texas, were indicted by a federal grand jury on October 16, 2019. The defendants were both charged with conspiracy to commit money laundering.
According to the indictment, Hannan and Jennings are alleged to have laundered funds received from romance scam victims and from victims of other fraudulent schemes on behalf of their co-conspirators, who were based outside of the United States. In order to facilitate the scheme, Hannan and Jennings opened bank accounts in the names of businesses which purported to provide legitimate services. In reality, these businesses were used to facilitate the money laundering scheme. Together, Hannan and Jennings received more than $880,000 from victims of the scheme. The majority of the funds they received were subsequently transferred overseas to their co-conspirators.
If convicted, Hannan and Jennings each face up to 20 years in federal prison.
This case is being investigated by the U.S. Department of Homeland Security-Homeland Security Investigations with assistance from the U.S. Postal Inspection Service, the Sherman Police Department, and the Appleton (Wisconsin) Police Department. It is being prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld.
A grand jury indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Two Chicago Police Officers Convicted of Fraudulently Obtaining Search Warrants and Obstructing JusticeRead the Press Release
CHICAGO — A federal jury today convicted two Chicago Police officers of fraudulently obtaining search warrants and stealing cash and drugs from properties they searched.
Officers XAVIER ELIZONDO and DAVID SALGADO were assigned to a gang team in the Chicago Police Department’s Tenth District. According to evidence at trial, the officers conspired to submit materially false information to state court judges to fraudulently obtain search warrants that enabled them to enter various properties and seize cash and drugs. The officers would then steal the items and falsify police reports to conceal the thefts.
Elizondo, 47, and Salgado, 39, both of Chicago, were found guilty on all counts against them, including conspiracy to commit theft, deprivation of civil rights, embezzlement, and obstruction of justice. Salgado was also charged and convicted of making a false statement to the FBI. Sentencings were set for Jan. 23, 2020, before U.S. District Judge Matthew F. Kennelly.
The convictions were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI. The Chicago Police Department provided valuable assistance. The government is represented by Assistant U.S. Attorneys Sean J.B. Franzblau and Ankur Srivastava.
Obstruction of justice is punishable by up to 20 years in prison. The embezzlement and civil rights counts each carry a maximum sentence of ten years, while the conspiracy and false statement counts are each punishable by up to five years.
Treasurer of Political Action Committees Pleads Guilty to Filing False Reports with Federal Election CommissionRead the Press Release
ALEXANDRIA, Va. – An Arlington political consultant who served as the treasurer of multiple Political Action Committees (PACs) pleaded guilty today to lying to the Federal Election Commission (FEC) about approximately $32,500 in payments of PAC money that he directed to himself and a close friend.
According to court documents, Scott Buchanan Mackenzie, 66, from 2011 through 2018, in the Eastern District of Virginia and elsewhere, Mackenzie was the treasurer of approximately 52 PACs, including Conservative StrikeForce, Conservative Majority Fund, Tea Party Majority Fund and Conservative Majority SuperFund. In that role, Mackenzie was responsible for complying with campaign finance laws and regulations and for filing accurate disclosure reports with the FEC that detailed the PACs’ true income and expenditures.
Person A was a resident of Winchester, Virginia, who had a personal relationship with Mackenzie and with whom Mackenzie shared a joint bank account. Between October 2011 and June 2014, Mackenzie caused approximately $32,500 in payments to Person A from bank accounts belonging to Conservative StrikeForce, Conservative Majority Fund and Conservative Majority SuperFund. Mackenzie falsely reported to the FEC that Person A received these payments for work that Person A had purportedly provided to Conservative StrikeForce and Conservative Majority Fund. In fact, as Mackenzie knew, Person A—an umbrella retailer with no experience in political fundraising—did not provide any of the purported services to these PACs. The funds were deposited into the bank account that Mackenzie shared with Person A.
In addition, Mackenzie also made false statements to the FEC to conceal the unlawful use of funds raised by Conservative Majority Fund and Tea Party Majority Fund to pay at least $172,200 in legal fees that Conservative StrikeForce and affiliated companies had incurred from a civil lawsuit brought by a former gubernatorial candidate for Virginia.
Finally, Mackenzie admitted that he participated in a scheme to use conduits (also known as straw donors) to make contributions to candidates running for federal public office. Mackenzie used conduits to make these contributions in order to evade limits that federal law placed on individual campaign contributions, as well as prohibitions against corporate contributions.
As part of his guilty plea, Mackenzie agreed to pay $172,200 in restitution to victims of his scheme to illegally funnel money between PACs to pay legal fees.
Mackenzie pleaded guilty to one count of making a false statement to the FEC and faces a maximum penalty of five years in prison when sentenced on Feb. 21, 2020. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division; and Timothy R. Slater, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after U.S. District Judge Liam O’Grady accepted the plea. Assistant U.S. Attorney Kimberly R. Pedersen and Trial Attorneys Bill Gullotta and John Taddei of the Criminal Division’s Public Integrity Section (PIN) are prosecuting the case. Former PIN trial attorney Molly Gaston provided significant assistance in the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-309.
Treasurer of Multiple Political Action Committees Pleads Guilty to Filing False Reports with the FECRead the Press Release
A Virginia political consultant who served as the treasurer of multiple Political Action Committees (PACs) pleaded guilty today to lying to the Federal Election Commission (FEC) about more than $32,000 in payments of PAC money that he directed to himself and a close friend.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia and Assistant Director in Charge Timothy R. Slater of the FBI’s Washington Field Office made the announcement.
Scott Buchanan Mackenzie, 66, of Arlington, Virginia, pleaded guilty to one count of making a false statement to the FEC before U.S. District Judge Liam O’Grady of the Eastern District of Virginia. A sentencing hearing is scheduled for Feb. 21, 2020, before Judge O’Grady.
According to admissions Mackenzie made in connection with his guilty plea, from 2011 through 2018, in the Eastern District of Virginia and elsewhere, Mackenzie was the treasurer of approximately 52 PACs, including Conservative StrikeForce, Conservative Majority Fund, Tea Party Majority Fund and Conservative Majority SuperFund. In that role, Mackenzie was responsible for complying with campaign finance laws and regulations and for filing accurate disclosure reports with the FEC that detailed the PACs’ true income and expenditures.
Person A was a resident of Winchester, Virginia, who had a personal relationship with Mackenzie and with whom Mackenzie shared a joint bank account. Between October 2011 and June 2014, Mackenzie caused approximately $32,500 in payments to Person A from bank accounts belonging to Conservative StrikeForce, Conservative Majority Fund and Conservative Majority SuperFund. Mackenzie falsely reported to the FEC that Person A received these payments for work that Person A had purportedly provided to Conservative StrikeForce and Conservative Majority Fund. In fact, as Mackenzie knew, Person A—an umbrella retailer with no experience in political fundraising—did not provide any of the purported services to these PACs. The funds were deposited into the bank account that Mackenzie shared with Person A.
In addition, Mackenzie also made false statements to the FEC to conceal the unlawful use of funds raised by Conservative Majority Fund and Tea Party Majority Fund to pay at least $172,200 in legal fees that Conservative StrikeForce and affiliated companies had incurred from a civil lawsuit brought by a former gubernatorial candidate for Virginia.
Finally, Mackenzie admitted that he participated in a scheme to use conduits (also known as straw donors) to make contributions to candidates running for federal public office. Mackenzie used conduits to make these contributions in order to evade limits that federal law placed on individual campaign contributions, as well as prohibitions against corporate contributions.
As part of his guilty plea, Mackenzie agreed to pay $172,200 in restitution to victims of his scheme to illegally funnel money between PACs to pay legal fees.
The FBI’s Washington Field Office is investigating the case. Trial Attorneys Bill Gullotta and John Taddei of the Criminal Division’s Public Integrity Section (PIN) and Assistant U.S. Attorney Kimberly Pedersen of the Eastern District of Virginia are prosecuting the case. Former PIN attorney Molly Gaston provided significant assistance in the case.
Six Members of Global Insider Trading Ring Charged in Manhattan Federal CourtRead the Press Release
Audrey Strauss, Attorney for the United States acting under authority conferred by 28 U.S.C. § 515, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of four indictments and the arrests of three members of a wide-ranging international insider trading ring. BRYAN COHEN, an investment banker based in New York, and TELEMAQUE LAVIDAS, the son of a member of the board of directors of Ariad Pharmaceuticals, Inc. (“Ariad”), which, until 2017, was a Boston-based publicly traded company, were both arrested on Friday in Manhattan. JOSEPH EL-KHOURI, a securities trader, was arrested yesterday in the United Kingdom, and the United States Government will be seeking his extradition to the United States. BENJAMIN TAYLOR and DARINA WINDSOR, former investment bankers who worked in London, as well as GEORGIOS NIKAS, a securities trader who also owns various business interests in Europe and the United States, including a chain of Greek restaurants in New York, remain at large.
Deputy U.S. Attorney Audrey Strauss said: “The insider trading charges announced today lay bare a long-running international scheme stretching over the course of years, whose participants earned tens of millions of dollars in illicit profits from illegally trading on stolen inside information. Our Office, along with our law enforcement partners, will vigorously prosecute those who steal such information and the traders who profit off of it.”
FBI Assistant Director William F. Sweeney Jr. said: “As alleged, the indictments announced today detail very deliberate activity by both current and former investment bankers, securities traders, and even the son of a corporate board member to illegally profit from receiving or providing advanced knowledge of nonpublic information about publicly traded companies. When one has access to material, nonpublic information, they’re afforded significant knowledge that could give them a competitive edge in stock and options trading. Exploiting this knowledge is illegal, and the FBI will continue to investigate and prosecute those who cheat the system in this way.”
As alleged in the Indictments unsealed in Manhattan federal court:[1]
The defendants charged were members of a global insider trading ring. As part of the ring’s illicit conduct, insiders at multiple investment banks obtained material, nonpublic information (“MNPI”) about publicly traded companies and provided that information, sometimes through middlemen, to securities traders who paid for that information in order to place timely, profitable securities trades based on that MNPI. Members of this ring took steps to evade detection by law enforcement, including by using unregistered “burner” cellphones and encrypted applications to communicate. In total, the stolen MNPI was used by securities traders to earn tens of millions of dollars in illegal profits. The charges announced today include charges against investment banking insiders, a close relative of a corporate insider, as well as securities traders who traded on the MNPI.
Investment Bankers Benjamin Taylor and Darina Windsor
Between 2012 and 2016, BENJAMIN TAYLOR and DARINA WINDSOR were investment bankers working in the London offices of two global investment banking advisory firms (“Investment Bank A” and “Investment Bank B,” respectively). By virtue of their employment at those firms, they had access to MNPI relating to corporate transactions involving clients of Investment Bank A and Investment Bank B, and were able to access computer files relating both to transactions to which they were assigned, and those to which they were not assigned. Both TAYLOR and WINDSOR were required to keep that MNPI strictly confidential, and they regularly attested that they were complying with their employers’ policies prohibiting insider trading.
Notwithstanding those attestations, TAYLOR and WINDSOR violated their duties of trust and confidence by stealing MNPI from their investment bank employers relating to numerous corporate transactions. Specifically, TAYLOR stole information from Investment Bank A and sold it to middlemen, and WINDSOR stole information from Investment Bank B and provided it to TAYLOR, who sold it to the same middlemen. TAYLOR and WINDSOR knew that the MNPI they had stolen would be sold to securities traders, who would be able to execute profitable securities transactions in advance of the MNPI becoming public. TAYLOR and WINDSOR received from the middlemen over $1 million of benefits, including cash, expensive trips, and luxury watches, for the MNPI they provided.
In total, TAYLOR and WINDSOR provided the middlemen with information about approximately 16 different corporate transactions, all relating to companies whose securities were listed on United States exchanges. The MNPI that TAYLOR and WINDSOR stole, and then sold, yielded tens of millions of dollars of illicit profits, including by securities traders residing in Switzerland and the United Kingdom.
TAYLOR, who passed the MNPI to the middlemen, used encrypted messaging applications and unregistered “burner” cellphones to communicate with other members of the scheme and arrange in-person meetings to discuss their scheme. One of the securities traders who received the MNPI that TAYLOR and WINDSOR stole occasionally purchased the relevant securities and then provided the MNPI to journalists for the purpose of causing them to write news stories relating to the MNPI that could influence a company’s stock price.
The indictment charging TAYLOR and WINDSOR has been assigned to United States District Judge Vernon S. Broderick.
Investment Banker Bryan Cohen
COHEN is an investment banker working in the investment banking division of a global investment banking advisory firm (“Investment Bank C”). By virtue of his employment at Investment Bank C, COHEN had access to MNPI relating to corporate transactions, and was under duties and obligations to keep that MNPI strictly confidential. COHEN previously worked in the London office of Investment Bank C, and later transferred to its New York office.
Notwithstanding his duties to keep the MNPI confidential, between 2015 and 2017, COHEN stole MNPI from Investment Bank C and passed it to a European securities trader in order to trade based on the MNPI. COHEN informed the securities trader both about corporate acquisitions as well as updates about how the deals were progressing over time. Some of the inside information that COHEN provided related to companies whose securities were listed on United States exchanges. The information that COHEN provided ultimately resulted in substantial profits for the traders who received it and traded based on it. In exchange for providing MNPI he stole from Investment Bank C, COHEN received benefits, including cash, from the securities trader.
COHEN took steps to conceal his scheme, including communicating through “burner” cellphones and receiving cash in person and through intermediaries.
The indictment charging COHEN has been assigned to United States District Judge William H. Pauley III.
Securities Trader Joseph El-Khouri
EL-KHOURI is a securities trader who resides in London, England. Between February and October 2015, he provided cash, gifts, and other benefits, including travel and expensive hotel stays, to a middleman, in exchange for obtaining MNPI about corporate transactions that had been stolen by TAYLOR and WINDSOR and provided to the middleman in exchange for cash and gifts, part of which were used to compensate TAYLOR and WINDSOR for providing that information. In total, EL-KHOURI placed trades in the stocks of at least six companies based on the MNPI and prior to the companies announcing their acquisitions to the public, and generated nearly $2 million in illicit profits from those trades.
EL-KHOURI and the middleman regularly communicated both in person and by phone about their scheme, including by using encrypted messaging applications and “burner” phones that they destroyed and replaced on a regular basis, in order to avoid detection by law enforcement.
The indictment charging EL-KHOURI has been assigned to United States District Judge John G. Koeltl.
Securities Trader Georgios Nikas and Telemaque Lavidas
NIKAS’s Trading Based on MNPI Stolen from Investment Banks
NIKAS is a securities trader who also owns various business interests in Europe and the United States, including a chain of Greek restaurants in New York. NIKAS received MNPI concerning acquisitions and potential acquisitions of publicly traded companies from another securities trader in the scheme. NIKAS knew that the MNPI was obtained from insiders at investment banks who breached their duties in stealing and passing on the information.
NIKAS began trading with the other securities trader based on MNPI that had been collected from investment banking insiders in 2010. From December 2012 through 2017, they obtained MNPI from TAYLOR, WINDSOR, and COHEN, all of whom had stolen the MNPI from their respective investment banks. NIKAS then executed securities trades, both in his own name and in a purported hedge fund that he and the other securities trader used to trade based on the stolen MNPI. NIKAS ultimately placed trades in the securities of at least 12 companies, which were listed on United States exchanges, based on stolen MNPI, and reaped millions of dollars in profits.
NIKAS and others involved in the scheme also took numerous steps to conceal their activity, including using multiple “burner” cellphones to communicate with each other. COHEN even picked up the “burner” cellphones that he used to communicate with other members of the scheme from a restaurant owned and operated by NIKAS in New York.
NIKAS’s Trading Based on MNPI Obtained from Lavidas and Stolen from Ariad
NIKAS also obtained MNPI concerning Ariad from LAVIDAS, the relative of a corporate insider. NIKAS and LAVIDAS together engaged in a scheme, beginning in 2013, to steal confidential inside information from Ariad, a biotechnology company headquartered in Boston that was marketing Iclusig, a drug for treatment of leukemia, for their personal use. NIKAS and LAVIDAS were friends, and NIKAS also had a personal relationship with a member of the board of directors of Ariad (“Director-1”), who was LAVIDAS’s father. LAVIDAS used his connection to Director-1 to obtain MNPI about Ariad and then provided that information to NIKAS, who reaped millions of dollars in profits by trading based on that MNPI. NIKAS also provided the MNPI to another securities trader in the scheme, who also reaped substantial profits by trading on the information. During the course of the conspiracy, NIKAS paid LAVIDAS in exchange for the MNPI.
Specifically, on four separate occasions from 2013 through 2015, Director-1 became aware of MNPI relating to Ariad, and disclosed that information to LAVIDAS, who in turn disclosed it to NIKAS so that NIKAS could trade on it. Those four occasions included an announcement that the European Commission was expected to approve the marketing of Iclusig in or about early July 2013; concerns raised by the U.S. Food and Drug Administration (“FDA”) regarding clinical trials for Iclusig in or about September and October 2013; the resumption of marketing and distribution of Iclusig in the United States in or about November and December 2013; and a confidential offer to acquire Ariad by another company in or about the summer of 2015. In each instance, after NIKAS received the MNPI from LAVIDAS, he executed securities trades based on the MNPI, and then profited after the news was publicly announced.
The indictment charging NIKAS and LAVIDAS has been assigned to United States District Judge Denise Cote.
* * *
A chart listing the age, place of residence, and charges for each of the six charged defendants is attached. Various of the defendants are charged with conspiracy to commit securities fraud and fraud in connection with a tender offer, which carries a statutory maximum sentence of five years in prison, conspiracy to commit wire fraud and securities fraud, which carries a statutory maximum sentence of 20 years in prison, securities fraud pursuant to Title 15 of the United States Code, which carries a statutory maximum of 20 years in prison, fraud in connection with a tender offer, which carries a statutory maximum of 20 years in prison, wire fraud, which carries a statutory maximum of 20 years in prison, and securities fraud pursuant to Title 18 of the United States Code, which carries a statutory maximum of 25 years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Ms. Strauss praised the work of the FBI. She further thanked the Securities and Exchange Commission for its cooperation and assistance in this investigation. She added that the FBI’s investigation was ongoing. The Justice Department’s Office of International Affairs of the Department’s Criminal Division assisted in the investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Unit. Assistant U.S. Attorneys Richard Cooper and Daniel Tracer are in charge of the prosecution.
The allegations contained in the Indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
United States v. Benjamin Taylor and Darina Windsor, S7 19 Cr. 184 (VSB)
United States v. Bryan Cohen, 19 Cr. 741 (WHP)
United States v. Joseph El-Khouri, 19 Cr. 652 (JGK)
United States v. Georgios Nikas and Telemaque Lavidas, 19 Cr. 716 (DLC)
Name
Age
Place of residence
Charges
Number of counts
Benjamin Taylor
35
France
18 U.S.C. § 371 (conspiracy to commit securities fraud and fraud in connection with a tender offer)
18 U.S.C. § 1349 (conspiracy to commit wire fraud and securities fraud)
15 U.S.C. §§ 78j(b) and 78ff, 17 C.F.R. § 240.10b-5 (securities fraud)
15 U.S.C. §§ 78n(e) and 78ff, 17 C.F.R. §§ 240.14e-3(a) and 240.14e-3(d) (fraud in connection with a tender offer)
18 U.S.C. § 1343 (wire fraud)
18 U.S.C. § 1348 (securities fraud)
1
1
16
5
16
1
Darina Windsor
32
Thailand
18 U.S.C. § 371 (conspiracy to commit securities fraud and fraud in connection with a tender offer)
18 U.S.C. § 1349 (conspiracy to commit wire fraud and securities fraud)
15 U.S.C. §§ 78j(b) and 78ff, 17 C.F.R. § 240.10b-5 (securities fraud)
15 U.S.C. §§ 78n(e) and 78ff, 17 C.F.R. §§ 240.14e-3(a) and 240.14e-3(d) (fraud in connection with a tender offer)
18 U.S.C. § 1343 (wire fraud)
18 U.S.C. § 1348 (securities fraud)
1
1
13
5
13
1
Bryan Cohen
33
New York, New York
18 U.S.C. § 371 (conspiracy to commit securities fraud)
18 U.S.C. § 1349 (conspiracy to commit wire fraud and securities fraud)
1
1
Joseph El-Khouri
52
London, United Kingdom
18 U.S.C. § 371 (conspiracy to commit securities fraud and fraud in connection with a tender offer)
18 U.S.C. § 1349 (conspiracy to commit wire fraud and securities fraud)
15 U.S.C. §§ 78j(b) and 78ff, 17 C.F.R. § 240.10b-5 (securities fraud)
15 U.S.C. §§ 78n(e) and 78ff, 17 C.F.R. §§ 240.14e-3(a) and 240.14e-3(d) (fraud in connection with a tender offer)
18 U.S.C. § 1343 (wire fraud)
18 U.S.C. § 1348 (securities fraud)
1
1
6
2
6
1
Georgios Nikas,
a/k/a “George Nikas”
54
New York, New York
Greece
18 U.S.C. § 371 (conspiracy to commit securities fraud)
18 U.S.C. § 371 (conspiracy to commit securities fraud and fraud in connection with a tender offer)
18 U.S.C. § 1349 (conspiracy to commit wire fraud and securities fraud)
15 U.S.C. §§ 78j(b) and 78ff, 17 C.F.R. § 240.10b-5 (securities fraud)
15 U.S.C. §§ 78n(e) and 78ff, 17 C.F.R. §§ 240.14e-3(a) and 240.14e-3(d) (fraud in connection with a tender offer)
18 U.S.C. § 1343 (wire fraud)
18 U.S.C. § 1348 (securities fraud)
1
1
2
11
3
11
2
Telemaque Lavidas
38
New York, New York
Greece
18 U.S.C. § 371 (conspiracy to commit securities fraud)
8 U.S.C. § 1349 (conspiracy to commit wire fraud and securities fraud)
15 U.S.C. §§ 78j(b) and 78ff, 17 C.F.R. § 240.10b-5 (securities fraud)
18 U.S.C. § 1343 (wire fraud)
18 U.S.C. § 1348 (securities fraud)
1
1
3
3
1
[1] As the introductory phrase signifies, the entirety of the text of the Indictments, and the description of the Indictments set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Seneca Falls Man Sentenced for Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Matthew A. Urquhart, 33, of Seneca Falls, NY, who was convicted of possession of child pornography, was sentenced to serve to 44 months in prison and 10 years supervised release by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Kyle P. Rossi, who handled the case, stated that FBI Special Agents identified the defendant actively trading child pornography from a trailer residence in Seneca Falls. Subsequently, FBI agents assisted by the Seneca Falls Police Department and Seneca County Sheriff’s Office, searched two residences that Urquhart occupied. Digital items belonging to Urquhart were seized. A forensic analysis determined that the defendant possessed multiple images and videos of child pornography, including images that depicted the sexual abuse of prepubescent minors.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; the Seneca Falls Police Department, under the direction of Chief Stuart W. Peenstra; and the Seneca County Sheriff’s Office, under the direction of Sheriff W. Timothy Luce.
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Sauk Rapids Man Sentenced to 15 Months in Prison for Filing False Tax ReturnsRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of ADAM M. LASHINSKI, 41, to 15 months in prison for filing false tax returns. LASHINSKI, who pleaded guilty on June 25, 2019, was sentenced on October 21, 2019, before Senior Judge Paul A. Magnuson in U.S. District Court in Saint Paul, Minnesota.
According to the defendant’s guilty plea and documents filed in court, LASHINSKI, who falsely claimed to be a certified public accountant, prepared and filed dozens of fraudulent federal and state individual income tax returns for his acquaintances between 2013 and 2015. LASHINSKI admitted to repeatedly filing returns in the names of the taxpayers that omitted taxable income and claimed false adjustments, deductions, and business expenses, which resulted in larger refunds than what the taxpayers were actually entitled to receive. The total tax loss was $208,550.00
This case was the result of an investigation conducted by the Criminal Investigation Division of the IRS, with assistance from the Minnesota Department of Revenue.
Assistant U.S. Attorney Robert M. Lewis prosecuted this case.
Defendant Information:
ADAM M. LASHINSKI, 41
Sauk Rapids, Minn.
Convicted:
- Filing false tax returns, 1 count
Sentenced:
- 15 months in prison
- One year of supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Sacramento Man Sentenced to 10 Years in Prison for Possessing Methamphetamine for DistributionRead the Press Release
SACRAMENTO, Calif. — Andre Ramon Washington, 47, of Sacramento, was sentenced today by U.S. District Judge John A. Mendez to 10 years in prison for possessing methamphetamine for distribution, U.S. Attorney McGregor W. Scott announced.
According to court records, federal agents began investigating Washington based on reports that he was distributing narcotics from his home in Sacramento. In 2017 and 2018, agents identified two of Washington’s suppliers — co-defendants Roland Adrian Jufiar, 44, and David Garcia Romero, 44, both from Sacramento. In March 2018, federal agents executed search warrants at Washington’s, Jufiar’s, and Romero’s homes. At Washington’s home, the agents found approximately 1 pound of powder cocaine, a half-pound of cocaine base (crack cocaine), over 2 pounds of methamphetamine, and a 9 mm pistol. Agents found narcotics and firearms at the co-defendants’ homes as well. Washington pleaded guilty on June 25.
In August, Jufiar and Romero pleaded guilty to separate narcotics offenses. They are scheduled to be sentenced in Nov. 2019.
This case is the product of an investigation by the Drug Enforcement Administration with assistance from the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; the Sacramento County Sheriff’s Department; the Sacramento Police Department; the Citrus Heights Police Department; and the Folsom Police Department.
Rogers Physician Arrested for Over-Prescribing Opiates and for Making A False StatementRead the Press Release
Fayetteville, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas and Justin King, Assistant Special Agent in Charge of the Drug Enforcement Administration, announced today that Dr. Robin Ann Cox was arrested today on federal charges. A federal grand jury in the Western District of Arkansas indicted Dr. Cox on one count of Prescribing Without a Legitimate Medical Purpose Outside the Scope of a Professional Practice and one count of Willfully and Knowingly Making a Material False Statement to Federal Investigators.
According to the Indictment, the Drug Enforcement Administration (DEA), Little Rock District Office (LRDO) Tactical Diversion Squad and Diversion groups along with the DEA Fayetteville Resident Office (FRO) initiated an investigation into the Arkansas Medical Clinic in Rogers, AR in 2019. Investigators received multiple complaints from local pharmacists, residents, and police departments in the Northwest Arkansas area of a suspected “pill mill” located in Rogers, Arkansas. Investigators identified Dr. Cox as the physician associated with the clinic and analyzed prescription drug monitoring data attributed to Dr. Cox’s prescribing habits from the date the clinic opened in May 2018 through the middle of September 2019. This analysis revealed Dr. Cox to be a suspected over-prescriber of opioids, and other evidence in the case revealed that many of Dr. Cox’s opioid prescriptions were not written in the usual course of professional practice. Further, Dr. Cox made false statements to agents of the DEA regarding the legitimacy of prescriptions bearing her signature. In the time period analyzed, Dr. Cox prescribed 214,050 tablets of oxycodone, with a street value of approximately $3,204,765 if diverted. Investigators also discovered that approximately 90% of the patients to whom Dr. Cox prescribed controlled substances during that time received a prescription for at least one opioid.
Other agencies participating in the investigation are the Federal Bureau of Investigation (FBI), Texarkana Police Department, the United States Department of Health and Human Services Office of Inspector General (HHS), the Springdale Police Department and the Rogers Police Department. Special Assistant United States Attorney Anne Gardner is prosecuting the case for the United States.
An Indictment is merely an accusation. An arrest warrant represents a finding of probable cause. A person is presumed innocent unless or until he or she is proven guilty beyond a reasonable doubt in a court of law.
Rochester Man Sentenced for Robbery SpreeRead 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 Tayvon Rosier, 32, of Rochester, NY, who was convicted of four counts of Hobbs Act robbery, was sentenced to serve to 92 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Sean C. Eldridge, who handled the case, stated that Rosier committed a series of armed robberies at Rochester stores in February 2018, including:
• On February 13, 2018, at the Family Dollar Store at 189 Portland Avenue, Rosier displayed what appeared to be a silver handgun, and demanded money from a store employee. Defendant left with approximately $246.48.
• On February 21, 2018, at the Malcho’s Market Sunoco at 480 Plank Road, Rosier displayed what appeared to be a silver handgun, and told an employee to “give me all the money and show me the tray.” The defendant left with approximately $117 from the store.
• Also on February 21, 2018, at the Fast Trac at 4200 West Henrietta Road, Rosier displayed what appeared to be a silver handgun to a store employee and demanded money and cigarettes. The defendant left the store with approximately $207 in cash, and $781.50 in cigarettes.
• On February 25, 2018, at the 7-Eleven at 3995 West Henrietta Road, Rosier displayed what appeared to be a silver handgun, and demanded money and cigarettes from a store employee. Rosier left the store with approximately $45 in cash, and $714 in cigarettes.The sentencing is the result of an investigation by the Rochester Police Department, under the direction of Chief La’Ron Singletary; the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter; and the Federal Bureau of Investigation, Major Crimes Task Force, under the direction of Special Agent-in-Charge Gary Loeffert.
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Rochester Man Pleads Guilty for His Role in Drug ConspiracyRead 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 Ricardo Casado, 31, of Rochester, NY, pleaded guilty to conspiracy to possess with intent to distribute, and distribution of, quantities of fentanyl and cocaine, before Chief U.S. District Judge Frank P. Geraci, Jr. The charge carries a maximum penalty of 20 years in prison, and a $1,000,000 fine.
Assistant U.S. Attorney Matthew T. McGrath, who is handling the case, stated that Casado was a member of a drug trafficking organization led by his brother, co-defendant Jose Casado. Between December of 2017 and May 15, 2019, the organization distributed large quantities of fentanyl, cocaine, and crack cocaine out of drug houses located on Clifford Avenue and Treyer Street in Rochester.
On January 25, 2019, Ricardo Casado sold 80 baggies of fentanyl and 80 baggies of cocaine in exchange for $600, on behalf of the drug trafficking organization.
The plea is the result of an investigation by the Rochester Police Department, under the direction of Chief La’Ron Singletary, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
Sentencing is scheduled for January 10, 2020, at 11:00 a.m. before Judge Geraci.
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Presque Isle Man Pleads Guilty to Federal Firearm OffenseRead the Press Release
Bangor, Maine: A Presque Isle man pleaded guilty today in federal court in Bangor to possession of a firearm by an unlawful user of controlled substances, U.S. Attorney Halsey B. Frank announced.
According to court records, Samual Mathers, 33, was pulled over while riding as a passenger in a vehicle on April 3, 2018. Officers searched him and found a loaded firearm, methamphetamine and a methamphetamine pipe on his person. He admitted to being an addict who had been using daily for over a year. He also admitted to possessing multiple firearms. A subsequent search of his home revealed over a dozen firearms and ammunition.
Mathers faces up to 10 years imprisonment and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; and the Maine Drug Enforcement Agency investigated the case.
Pittsburgh Man Charged with Receiving and Possessing Child PornographyRead the Press Release
PITTSBURGH, Pa. - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh, Pennsylvania, on charges of receipt and possession of material depicting the sexual exploitation of minors, United States Attorney Scott W. Brady announced today.
The two-count Indictment named James Franklin Young, age 36, as the sole defendant.
According to the Indictment, on or before November 14, 2018, through on or about August 28, 2019, Young received material depicting the sexual exploitation of minors, and on August 28, 2019, Young knowingly possessed videos and images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
The law provides for a term of imprisonment of not less than five years, and not more than 20 years, a fine of $250,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation 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.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), 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.
Overland Park Man Sentenced to 8+ Years for 44,000 Images of Child PornRead the Press Release
KANSAS CITY, KAN. – An Overland Park man who admitted he collected more than 44,000 images of child porn and shared some with other computer users was sentenced today to 100 months in federal prison, U.S. Attorney Stephen McAllister said.
Robert A. Weick, 33, Overland Park, Kan., pleaded guilty to one count of distributing child pornography. Weick came under investigation when a task force officer from the FBI used a file-sharing program to download child pornography from Weick’s computer. When investigators served a search warrant at Weick’s home, they discovered approximately 44,000 images and 500 videos containing child pornography.
Weick also was ordered to pay $40,000 in restitution to victims who have been identified by the National Center for Missing and Exploited Children. McAllister commended the FBI and Assistant U.S. Attorney Kim Flannigan for their work on the case.
October 26 Is Prescription Drug Take Back DayRead the Press Release
United States Attorney Peter G. Strasser wants to encourage the public to participate in the Drug Enforcement Administration’s (DEA) 17th National Prescription Drug Takeback Day on Saturday, October 26, 2019. The event is an effort to rid homes of potentially dangerous expired, unused, and unwanted prescription drugs and will be held from 10:00 a.m. to 2:00 p.m., at thousands of collection sites around the country, including several here in the Eastern District of Louisiana.
Rates of prescription drug abuse in the United States continue to be alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. The majority of prescription drug abusers say they get their drugs free from friends and family, including from the home medicine cabinet. Take Back Day is a unique opportunity for Americans to protect their homes and medicine cabinets from theft and abuse.
For the first time, DEA will now accept vaping devices and cartridges at any of its drop off locations during National Prescription Drug Take Back Day. It is important to note that DEA cannot accept devices containing lithium ion batteries. If batteries cannot be removed prior to drop-off, DEA encourages individuals to consult with stores that recycle lithium ion batteries.
“DEA’s National Drug Take Back Initiative is one of the most important tools in combating the prescription drug abuse epidemic, stated U.S. Attorney Peter G. Strasser. “Not only does this program prevent unwanted or expired prescription drugs from flooding our communities and landing in the wrong hands, it protects our environment by offering a safe alternative disposal method.”
“Prescription drugs often end up in the wrong hands, feeding an epidemic that kills more Americans than car accidents. DEA’s Take Back Initiative provides citizens an easy and safe way to dispose of unused and unwanted prescription medications. This year, we are taking it a step further by accepting vaping devices and cartridges as we work with our federal partners to combat this emerging public health threat to the nation’s youth,” said DEA Special Agent in Charge Brad L. Byerley.
Over the past 10 years, DEA has collected a total of nearly 11 million pounds (more than 5,400 tons) of expired, unused, and unwanted prescription medications through its Take Back Day events. This weekend, approximately 6,000 collection sites will be manned by nearly 5,000 partner law enforcement agencies. The service is free and anonymous.
In the New Orleans Field Division, the following amounts were collected last April: Louisiana – 7,046 pounds; Mississippi – 3,753 pounds; Alabama – 6,800 pounds; and Arkansas – 28,073 pounds.
For more information or to locate updated collection sites near you, please go the DEA Prescription Drug Take Back Day web site at https://takebackday.dea.gov/#collection-locator where you can search by zip code, city, or state.
DEA Take Back Day PSA: https://youtu.be/KH5lF8gzm9s
Non-citizen imprisoned on child pornography chargesRead the Press Release
HOUSTON – A 54-year-old man who remained in the United States after his Visa had expired has been ordered to prison for receipt and possession of child pornography, announced U.S. Attorney Ryan K. Patrick. Alberto Bernal Garcia resided in Houston and pleaded guilty April 16.
Today, Chief U.S. District Judge Lee H. Rosenthal sentenced Garcia 120 months for the receipt and possession convictions, respectively. The sentences will run concurrently. The court also considered statements detailing the impact to victims of child pornography. In handing down the sentence, Judge Rosenthal recognized receipt and possession of child pornography as a form of child abuse and a sickness or disorder. Garcia was further ordered to pay $76,000 in restitution to known victims and will serve five years on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender. Not a U.S. citizen, he is expected to face deportation proceedings following the sentence.
On or about May 20, 2018, law enforcement initiated an investigation into child pornography sharing which eventually led them to Garcia’s work address. Authorities executed a search warrant and seized a laptop and external hard drive which Garcia used. A forensic analysis resulted in the discovery of approximately 794 videos and 4,837 images of child pornography including pre-pubescent children, some as young as 3, and bestiality. Garcia collected his child pornography on his personal computer and an external hard drive.
Garcia came to the United States on a Visa in 1997 from Mexico. He did an array of work until he started helping individuals with viruses on their computers. At the time of his arrest, Garcia owned a computer repair shop within a convenience store.
Garcia has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations—Internet Crimes Against Children Task Force conducted this investigation.
Assistant U.S. Attorney Zahra Jivani Fenelon prosecuted the case, which was brought as part of Project Safe Childhood(PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
NDTX Round-Up October 22, 2019Read the Press Release
GUILTY PLEA – Neftali Abonza
On October 15, Neftali Abonza, 30, pled guilty to conspiracy to commit money laundering. Abonza and his codefendants were involved in a conspiracy to distribute methamphetamine in both Texas and Florida. The coconspirators would smuggle cash in bulk and use bank funnel accounts to profit from the proceeds. Abonza was arrested when attempting to deliver two kilograms of methamphetamine. He faces up to 20 years in federal custody. This case was investigated by the Drug Enforcement Administration and is prosecuted by AUSA Myra Boehm.
SENTENCING – Aldo Villanueva
On October 16, Aldo Villanueva, 31, was sentenced to 2 years and 6 months in federal custody for using a communication facility to facilitate a drug felony. Villanueva pled guilty to using a cell phone to coordinate the sale of cocaine in Dallas. He used coded communications with his coconspirators to negotiate drug prices and quantities. This case was investigated by the Drug Enforcement Administration – Strike Force One and was prosecuted by AUSA John Kull.
GUILTY PLEA – Celso Alfonso Morales-Reyes
On October 15, Celso Alfonso Morales-Reyes, 25, pled guilty to possession with the intent to distribute methamphetamine. Morales-Reyes was pulled over for a traffic violation and arrested for failure to have a driver’s license. Dallas Police Department officers searched his car, and found a kilogram of heroin. The Drug Enforcement Agency Strike Force later searched his home with the consent of his paramour, who was sharing the apartment, and found additional kilograms of methamphetamine and heroin. Morales-Reyes faces up to 20 years in federal custody. This case was investigated by the Drug Enforcement Administration and is prosecuted by AUSA Myria Boehm.
GUILTY PLEA – Garibaldi Gutierrez Solorio
On October 17, Garibaldi Gutierrez Solorio, 25, pled guilty to possession with the intent to distribute heroin. In June 2019, federal agents executed a search warrant of a residence, where they found 3 kilograms of heroin, 3 pounds of marijuana, and detained Gutierrez. The defendant told agents that he was instructed to store and deliver the heroin at the instruction of a subject in Mexico. Gutierrez faces up to 20 years in federal custody. This case was investigated by the Drug Enforcement Administration and is prosecuted by AUSA Suzanna Etessam.
SENTENCING – Levar Charles Walker
On October 17, Levar Charles Walker, 40, was sentenced to 3 years in federal custody for the crime of using a communications facility to facilitate a drug felony. Walker used a cell phone to communicate with his codefendant and a Drug Enforcement Administration cooperating defendant to discuss the distribution of a half-kilogram of cocaine. This case was investigated by the Drug Enforcement Administration and was prosecuted by AUSA Suzanna Etessam.
Morris County Man Admits Hacking Scheme That Targeted Two New Jersey CompaniesRead the Press Release
NEWARK, N.J. – A Montville, New Jersey, man today admitted his role in a sophisticated computer hacking scheme that targeted two companies in New Jersey and stole their data, U.S. Attorney Craig Carpenito announced.
Ankur Agarwal, 45, of Montville, New Jersey, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging him with two counts of obtaining information from computers and one count of aggravated identity theft.
According to documents filed in this case and statements made in court:
Agarwal admitted that beginning in February 2017 he physically trespassed onto a company’s premises in New Jersey (Company One) and illegally installed hardware key-logger devices onto the company’s computers. The key-logger devices covertly recorded the keystrokes of the company’s employees and provided Agarwal with their usernames and passwords. Agarwal also surreptitiously installed his personal computer and a hard drive onto the company’s computer network. Using the fraudulently obtained logon credentials, Agarwal hacked into the company’s computer network and targeted various employees, including employees developing an emerging technology. Agarwal admitted that he stole, transferred, and exfiltrated Company One’s data and information, including its emerging technology. Agarwal also created a computer malicious code, which he installed onto the company’s computer systems and used to steal and transfer the date to himself.
Agarwal also admitted that he hacked into, targeted, and stole data and information from a second company in New Jersey (Company Two). Using the same general scheme, Agarwal physically trespassed onto Company Two’s premises, illegally installed hardware key-logger devices onto the company’s computers, installed his personal computer and a hard drive onto the company’s computer network, and stole, transferred, and exfiltrated Company Two’s data and information, including an emerging technology that Company Two was developing.
Agarwal also obtained unauthorized access into an employee’s computer system and then fraudulently created an access badge for himself. This fraudulently obtained access badge, bearing another individual’s name, allowed Agarwal to physically trespass onto Company Two’s premises.
The charges of obtaining information from computers from Company One and Company Two each carry a maximum potential penalty of five years in prison. The charge of aggravated identity theft carries a mandatory term of two years in prison, which must run consecutively to the other term of imprisonment imposed. All three charges are punishable by a fine of $250,000, or twice the gross gain or loss from the offense.
Agarwal also consented to a forfeiture judgment requiring him to forfeit numerous computers, storage devices, and related equipment. Sentencing is scheduled for Jan. 28, 2019.
U.S. Attorney Carpenito credited special agents of the FBI’s Cyber Division, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Matthew Feldman Nikic and Anthony Moscato, Chief of the National Security Unit, in Newark.
Defense counsel: Samuel M. Braverman Esq., New York
Middlesex County Woman Admits $1.7 Million Bank Fraud SchemeRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, woman today admitted to orchestrating a $1.7 million bank fraud scheme that involved writing fraudulent business checks, U.S. Attorney Craig Carpenito announced.
Tammy L. Martinez, 46, of South Amboy pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to an information charging her with one count of bank fraud.
According to documents filed in this case and statements made in court:
From January 2014 through March 2019, Martinez served as an office manager and bookkeeper for a New Jersey based company. Beginning in January of 2014, Martinez used her position at the company to issue fraudulent checks made payable to Martinez or cash and forged the signature of her manager on fraudulent company checks. Martinez converted the fraudulent company checks into cash at bank branches in New Jersey, resulting in more than $1.7 million in losses to the company.
The bank fraud count carries a maximum potential penalty of 30 years in prison and a $1 million fine. Sentencing is scheduled for Feb. 11, 2020.
U.S. Attorney Carpenito credited special agents of the U.S. Attorney’s Office, under the direction of Supervisory Special Agent Thomas Mahoney in Newark, and officers of the Newark Police Department, under the direction of Public Safety Director Anthony Ambrose, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jamel Semper of the U.S. Attorney’s Office Economic Crimes Unit.
Defense counsel: Peter Carter Esq., Assistant Federal Public Defender, Newark
Michigan Biodiesel Dealer Pleads Guilty to Tax FraudRead the Press Release
A Bloomfield, Michigan, biodiesel fuel dealer pleaded guilty today to filing a false income tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Matthew Schneider of the Eastern District of Michigan.
According to plea documents, Chandra Yarlagadda, 54, owned and operated Alpha Bioenergy LLC (Alpha), formerly known as Naturol Bioenergy LLC, which purchased and sold biodiesel fuel. Pursuant to the Clean Air Act and related federal regulations, companies that purchase and sell biodiesel fuel are required to purchase Renewable Identification Numbers (RINs) for any volume of renewable fuel bought or sold. RINs are credits that obligated parties under the Clean Air Act, such as Alpha, to demonstrate compliance with annual standards set forth by the Environmental Protection Agency.
Yarlagadda reported income and expenses associated with Alpha on Schedules C attached to his personal income tax returns. Yarlagadda admitted as part of his plea that on the Schedules C attached to his 2009, 2010, and 2011 tax returns, he substantially overstated expenses associated with the purchase of RINs. For these three years, Yarlagadda falsely reported RIN expenses totaling more than $14.2 million, when, in fact, he was only entitled to claim approximately $80,000 in RIN expenses for those years. By claiming these inflated deductions, Yarlagadda avoided paying an additional $2.3 million in federal income taxes that was due.
U.S. District Judge Gershwin A. Drain set sentencing for March 19, 2020. Yarlagadda faces a maximum term of imprisonment of three years, as well as a term of supervised release and a fine. As part of his plea agreement, Yarlagadda agreed to pay restitution to the Internal Revenue Service (IRS) in the amount of $2,310,948.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Schneider thanked special agents of IRS Criminal Investigation, the U.S. Environmental Protection Agency – Criminal Investigation Division, and Homeland Security Investigations, who conducted the investigation, and Trial Attorneys Melissa S. Siskind and Sarah C. Ranney of the Tax Division who are prosecuting the case, and Assistant United States Attorney Stephen Hiyama of the Eastern District of Michigan who provided substantial assistance in this matter.
Additional information about the Tax Division and its enforcement efforts can be found on the division’s website.
Marijuana User in Possession of Loaded Firearm Sentenced to More Than Three Years in Federal PrisonRead the Press Release
A man who illegally possessed a firearm while a marijuana user was sentenced today to more than three years in federal prison.
Christopher Roby, age 19, from Waterloo, Iowa, received the prison term after a May 10, 2019 guilty plea to possession of a firearm by a drug user.
Evidence during the case showed that Roby was a passenger in a vehicle that police attempted to stop. The vehicle, driven by an associate of Roby’s, refused to stop and led police on a high speed chase, in excess of 80 miles per hour. When police finally stopped the vehicle, officers found a loaded revolver was under the area Roby was seated in. Roby admitted to possessing the gun. Police also found approximately one-half ounce of marijuana on Roby at the time of his arrest.
Roby was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Roby was sentenced to 41 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN 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.
Roby is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Lisa C. Williams and investigated by a Federal Task Force composed of the Waterloo Police Department, Federal Bureau of Investigation, and Bureau of Alcohol Tobacco and Firearms assisted by the Black Hawk County Sheriff’s Office and Cedar Falls Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-cr-2062.
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Man Pleads Guilty to Armed Robbery and Armed Drug TraffickingRead the Press Release
RICHMOND, Va. – A Norfolk man pleaded guilty today to the armed robbery of Sprint store in Colonial Heights and three separate instances of armed drug trafficking in Norfolk.
According to court documents, Tajh Rodgers, 29, admitting to working with an accomplice to commit a violent armed robbery of a Sprint Store in Colonial Heights in January. During the robbery, Rodgers and his co-conspirator ordered two employees to the back of the store at gunpoint, where the robbers forced them to lie on the floor. Due to a time-delay lock on the store’s safe, the robbers had to wait several minutes for the safe to open. While waiting, they attempted to tie up the employees and threatened to kill them if they attempted to notify the police. Soon thereafter, a customer entered the store, and the robbers let one of the employees go to assist the customer, along with a warning that he would be killed if he tried to alert the customer about the crime. Soon after the customer left, the time-delay lock on the safe opened, allowing the robbers to steal a number of new phones and electronics from the store. A total of 72 items valued at approximately $25,000 were stolen from the store.
The investigation led to the identification of Rodgers as a suspect, and his connection to another drug trafficking investigation in Norfolk where he engaged in several armed drug transactions during which he sold fentanyl, crack cocaine, and firearms to cooperating sources. Specifically, on Dec. 13, 2018, Rodgers sold cocaine base, fentanyl, and a .38 caliber Smith & Wesson revolver to cooperating sources. On January 3, he sold two bundles of fentanyl and a 9mm Springfield semi-automatic pistol to cooperating sources. During both drug transactions, Rodgers was armed with the same .40 caliber Ruger semi-automatic pistol that he carried during the armed robbery of the Sprint store. After identifying Rodgers as the robbery suspect, investigators obtained a search warrant for the location he was living at in Norfolk. During the search on January 10, officers recovered the .40 caliber semi-automatic pistol, various items connected to the Sprint store robbery, and a number of items connected to Rodgers’ ongoing drug trafficking, including distribution quantities of fentanyl, marijuana, crack cocaine, and a plastic safe containing a digital scale with suspected narcotics residue and packaging material.
Rodgers pleaded guilty to robbery affecting commerce, using, carrying, and brandishing a firearm during a robbery, and three counts of possession of a firearm in furtherance of drug trafficking. For the robbery offense, he faces a maximum penalty of 20 years in prison. For the firearms charges, he faces a mandatory minimum of 22 years, and a maximum of life in prison when sentenced on Jan. 9, 2020. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; Colonel Jeffrey W. Faries, Chief of Colonial Heights Police; Larry D. Boone, Chief of Norfolk Police, made the announcement after Senior U.S. District Judge Robert E. Payne accepted the plea. Assistant U.S. Attorneys Michael Gill, Kenneth Simon, and William B. Jackson are prosecuting the case.
This 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.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:19-cr-111.
MEDIA ADVISORY: United States Attorney Robert Duncan Jr. holds roundtable discussion with local, state, and federal partners about Red Ribbon WeekRead the Press Release
LEXINGTON, Ky. – United States Attorney Robert M. Duncan Jr., will be joined with federal, state, and local partners to have a roundtable discussion about Red Ribbon Week (October 23-31) and the impact of the week on central Kentucky.
Who: Robert M. Duncan Jr., United States Attorney for the Eastern District of Kentucky
Todd Kuehnlein, Resident Agent in Charge, Drug Enforcement Administration
Major Mike Rogers, Kentucky State Police
Mayor of Lexington, Linda Gorton
Sheriff Kathy Witt, Fayette County Sheriff’s Department
Chief Lawrence Weathers, Lexington Police Department
Where: U.S. Attorney's Office
Eastern District of Kentucky
260 W. Vine Street, Suite 300
Lexington, Kentucky, 40507
When: Thursday, Oct. 24, 2019 at 11 a.m.
Lowell Man Pleads Guilty to Heroin and Fentanyl TraffickingRead the Press Release
BOSTON – A Lowell man pleaded guilty yesterday in federal court in Boston to heroin and fentanyl trafficking charges.
Anderson Daniel Jorge Cruz, 21, pleaded guilty to conspiracy to distribute and possession with intent to distribute one kilogram or more of heroin and fentanyl and other drug trafficking offenses. Cruz has been in custody since his arrest on Jan. 23, 2019, along with co-defendant Joshua Ramos-Rios. Cruz is scheduled to be sentenced before U.S. District Court Judge William G. Young on Jan. 14, 2020.
On Jan. 23, 2019, law enforcement seized over one kilogram of suspected heroin and fentanyl from Cruz’s apartment in Lowell after an undercover operation. At the time, Cruz had an outstanding warrant for homicide in Allentown, Pa.
The charge of conspiracy to distribute and possession with intent to distribute one kilogram or more of heroin and fentanyl provides for a mandatory minimum sentence of 10 years and up to life in prison, a minimum of five years of supervised release and a fine of $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration’s New England Division; Lowell Police Superintendent Raymond Kelly Richardson; and Colonel Kerry Gilpin, Superintendent of the Massachusetts State Police, made the announcement. Assistant U.S. Attorney Philip C. Cheng of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. 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.
Laredoan sentenced for transporting people under mesquite woodRead the Press Release
LAREDO, Texas – A 24-year-old Laredo man has been ordered to federal prison for his role in transporting 17 undocumented aliens inside a hidden compartment, announced U.S. Attorney Ryan K. Patrick.
Andrew Barron pleaded guilty June 28.
Today, U.S. District Judge Marina Garcia Marmolejo handed him a 48-month sentence to be immediately followed by three years of supervised release. At the hearing, the court heard additional evidence that described the reckless disregard Barron demonstrated in transporting the aliens in such a manner.
On April 19, Barron approached the Interstate Highway 35 checkpoint driving Chevy truck towing an open-air trailer with a load of mesquite wood. Authorities referred him to secondary inspection, at which time they searched the trailer and found a hidden compartment under the mesquite wood.
After they unloaded it, they discovered 17 undocumented aliens, including three women and one juvenile male. All were citizens of Mexico.
Barron will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations and Border Patrol conducted the investigation. Assistant U.S. Attorney Anthony J. Evans prosecuted the case.
Kansas Farmer Pleads Guilty to Crop Insurance FraudRead the Press Release
WICHITA, KAN. – A Kansas farmer pleaded guilty Monday to federal charges of crop insurance fraud and bankruptcy fraud, U.S. Attorney Stephen McAllister said.
Kevin W. Struss, 63, Wakeeney, Kan., pleaded guilty to one count of defrauding the U.S. Department of Agriculture’s crop insurance program, which provides government insurance against unavoidable crop losses. He made false statements in which he under-reported his total 2015 corn crop by approximately 23,524 bushels, and his total sorghum/milo crop by 31,208 bushels.
He also pleaded guilty to one count of bankruptcy fraud. He falsely answered “no” to a question in his bankruptcy filing about whether he had transferred property to anyone else recently. In fact he made two transfers of $150,000 and $320,000 to another person in 2018.
Sentencing is set for Jan. 21. He could face a sentence up to 30 years in federal prison and a fine up to $1 million on the crop insurance count. He could face a sentence of up to five years and a fine up to $250,000 on the bankruptcy count.
McAllister commended the U.S. Department of Agriculture and Assistant U.S. Attorney Alan Metzger for their work on the case.
Justice Department to Host Event in Milwaukee Regarding Federal Law that Protects Religious Institutions from Burdensome Land Use RegulationsRead the Press Release
The United States Attorney’s Office for the Eastern District of Wisconsin and the Justice Department’s Civil Rights Division will hold an event on November 7, 2019, to support the Department’s Place to Worship Initiative and raise awareness about federal law’s protection of faith communities in land use and zoning processes, U.S. Attorney Matthew D. Krueger announced. The event, which is free to attend, will be held at the Marquette University Law School from 5:30 p.m. to 7:00 p.m.
The Religious Land Use and Institutionalized Persons Act (RLUIPA) is a federal law that protects religious institutions from unduly burdensome or discriminatory land use regulations. In June 2018, the Justice Department announced its Place to Worship Initiative, which focuses on RLUIPA’s provisions that protect the rights of houses of worship and other religious institutions to worship on their land. More information is available at www.justice.gov/crt/placetoworship.
The event will include a panel discussion to educate religious groups, faith-based and civil rights organizations, local government, land use and civil rights attorneys, and other community groups about RLUIPA, a religious liberty civil rights statute. To attend, RSVP at https://buildingfaithinwisconsin.eventbrite.com.
The Department of Justice, through the U.S. Attorney’s Offices and the Civil Rights Division, enforces RLUIPA and may bring lawsuits where there is reason to believe that a religious institution has been subject to unduly burdensome or discriminatory land use regulations. Persons who believe their rights under RLUIPA have been violated are encouraged to contact the U.S. Attorney’s Office Civil Rights Hotline at (855) 281-3339 or the Civil Rights Division Housing and Civil Enforcement Section at (800) 896-7743. An easily accessible complaint portal and more information about RLUIPA may be found at https://www.justice.gov/crt/rluipa.
Jefferson County Man Guilty in Southeast Texas Arson and Insurance Fraud SchemeRead the Press Release
BEAUMONT, Texas – A 51-year-old Groves, Texas man has been found guilty of charges related to an arson and insurance fraud scheme in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Patrick Wayne Bronnon was found guilty of 40 charges including conspiracy to commit mail fraud and use of a fire in commission of a felony today by a jury following an eight-day trial before U.S. District Judge Marcia A. Crone. The jury deliberated approximately 75 minutes before returning with a guilty verdict.
According to information presented in court, beginning in 2011, Bronnon, and others, began executing a scheme to defraud various insurance companies through fraudulent claims on homes and vehicles. The scheme involved identifying a low value property and purchasing it through a co-defendant straw purchaser. Within a few weeks of a down payment being made, Bronnon or an associate would intentionally damage the home, typically by fire or water, in order to collect insurance proceeds. In total, nine fraudulent fire claims, three fraudulent water damage claims, and two fraudulent theft claims were filed with various insurance companies on nine different addresses, totaling approximately $1.7 million in fraudulent payments. The properties were located in Port Arthur, Port Neches, Beaumont, and Sugarland, Texas.
“This was a scheme motivated by greed,” said U.S. Attorney Joe Brown. “It cost insurance companies certainly, but it also endangered people - emergency personnel, neighbors, and others. And these frauds contribute to higher insurance costs for all of us. We take these things very seriously.”
Under the federal statute, Bronnon faces up to 20 years in federal prison at sentencing for the conspiracy and mail fraud counts and up to 70 years for the use of fire in commission of a felony violations. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by the U.S. Postal Inspection Service, National Insurance Crime Bureau and prosecuted by Assistant U.S. Attorneys Christopher T. Tortorice and K.P. Kennedy Gates.
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Justice Department Awards over $273.4 Million to Improve Public Safety, Serve Crime Victims in American Indian and Alaska Native CommunitiesRead the Press Release
Three Tribes in the Eastern District of Wisconsin were awarded over $2,194,357 in funding.
The Department of Justice announced October 21, 2019 that it has awarded over $273.4 million in grants to improve public safety, serve victims of crime, combat violence against women and support youth programs in American Indian and Alaska Native communities.
“Violent crime and domestic abuse in American Indian and Alaska Native communities remain at unacceptably high levels, and they demand a response that is both clear and comprehensive,” said Attorney General William P. Barr. “We will continue to work closely with our tribal partners to guarantee they have the resources they need to curb violence and bring healing to the victims most profoundly affected by it.”
“American Indian communities in Wisconsin suffer from far too high rates of violent crime and domestic violence,” said United States Attorney Matthew D. Krueger. “The grants being awarded reflect that the Justice Department is committed to reducing violent crime and domestic violence in American Indian communities.”
Nationwide, 236 grants were awarded to 149 American Indian tribes, Alaska Native villages and other tribal designees through the Coordinated Tribal Assistance Solicitation, a streamlined application for tribal-specific grant programs. Of the $118 million awarded via CTAS, just over $62.6 million comes from the Office of Justice Programs, about $33.1 million from the Office on Violence Against Women and more than $23.2 million from the Office of Community Oriented Policing Services.
A portion of the funding will support tribal youth mentoring and intervention services, help native communities implement requirements of the Sex Offender Registration and Notification Act, and provide training and technical assistance to tribal communities.
Another $5.5 million was funded by OJP’s Bureau of Justice Assistance to provide training and technical assistance to CTAS awardees.
The Department also announced awards and other programming totaling $167.2 million in a set-aside program to serve victims of crime. The awards are intended to help tribes develop, expand and improve services to victims by supporting programming and technical assistance. About $25.6 million of these awards were awarded under CTAS and are included in the $118 million detailed above.
CTAS funding helps tribes develop and strengthen their justice systems’ response to crime, while expanding services to meet their communities’ public safety needs. The awards cover 10 purpose areas: public safety and community policing; justice systems planning; alcohol and substance abuse; corrections and correctional alternatives; children’s justice act partnerships; services for victims of crime; violence against women; juvenile justice; violent crime reduction; and tribal youth programs.
The Department also provided $6.1 million to help tribes to comply with federal law on sex offender registration and notification, $1.7 million in separate funding to assist tribal youth and nearly $500,000 to support tribal research on missing and murdered indigenous women and children and other public safety-related topics.
This announcement is part of the Justice Department’s ongoing initiative to increase engagement, coordination and action on public safety in American Indian and Alaska Native communities.
The three Eastern District grantees were:
- Forest County Potawatomi Community: $718,910;
- Oneida Nation: $1,102,747; and
- Stockbridge Munsee Community: $372,700.
A complete listing of announced CTAS awards is available at: https://www.justice.gov/tribal/awards.
A listing of all other announced tribal awards are available at: https://go.usa.gov/xVJuE.
High Society Hit Squad Member Sentenced to PrisonRead the Press Release
RICHMOND, Va. – A member of the criminal street gang H$2X (an acronym for “High Society Hit Squad”) was sentenced today to over 12 years in prison for conspiracy to distribute one kilogram or more of heroin.
“We have taken a stand in Petersburg against the scourge of drug trafficking and related violence,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “We have surged federal investigative and prosecutorial resources to Petersburg to root out criminal activity, and our partnerships with Chief Miller and the Petersburg Police, the ATF, along with other law enforcement entities are critical to this effort. Today’s sentencing of Miles “Buc J” Johnson should serve as a very clear indicator of what happens when you turn your back on your community, choose the easy way out of dealing drugs, and destroy the youth you claim to want to support.”
In 2017, in response to an increased level of violence that was taking place in Petersburg, ATF agents and members of the Petersburg Bureau of Police, began an investigation into the trafficking of firearms and narcotics, as well as other violent criminal activity. A group of individuals, who were later identified as members of H$2X, were suspected of being involved in trafficking narcotics and firearms.
“This investigation highlights ATF's partnership with Petersburg Police and our commitment to making our communities safer,” said Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division. “Firearms trafficking is not a victimless crime. When firearms are diverted to the illicit market, they often become tools of the trade for criminals. If you traffic in firearms or use firearms to commit other crimes, ATF is fully dedicated to bringing you to justice.”
Miles Johnson, aka “Buck J”, 39, is a member of H$2X. According to court documents, between March 2017 and February 2019, the investigation revealed that Johnson had distributed between one and three kilograms of heroin in the Petersburg metropolitan area and elsewhere.
“My top priority is the safety of the citizens of Petersburg and cleaning up our streets,” said Kenneth A. Miller, Director of Public Safety, Petersburg Bureau of Police. “As shown in this case, my department works closely with our law enforcement partners to keep firearms out of the hands of criminals and keep dangerous drugs out of our community. If you violate the law or if you harm our community, the Petersburg Police will use every tool at our disposal to see that you are held accountable.”
In March 2019, one dozen individuals, including Johnson, were indicted on various firearms and drug trafficking charges.
Below is a table containing information on defendants charged in this investigation.
Name, Age
Hometown
Charge(s)
Sentence
Armon Lee, 26
Warfield
Sale or Disposal of a Firearm to a Convicted Felon; Distribution of Cocaine
120 months
Terrell Dean Johnson, 30
Petersburg
Distribution of Cocaine
57 months
Titus Maurice Lee, 44
Petersburg
Distribution of Cocaine; Distribution of Heroin and/or Fentanyl; Possession of a Firearm/Ammunition by a Convicted Felon; Sale or Disposal of a Firearm to a Convicted Felon
192 months
Autrelle Malik Waddell, 22
Petersburg
Distribution of Heroin and/or Fentanyl; Sale or Disposal of a Firearm to a Convicted Felon
108 months
Miles Owanga Johnson, 39
Petersburg
Distribution of Heroin and/or Fentanyl
151 months
Charles Lee Avery, 44
Petersburg
Possession of a Firearm/Ammunition by a Convicted Felon
96 months
Tyrell Jakahree Allen, 26
Prince George
Distribution of Cocaine
36 months
John Pruitte
Chesterfield. VA
Aiding and Abetting the Distribution of Heroin
18 months
This 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, and Kenneth A. Miller, Director of Public Safety, Petersburg Bureau of Police, made the announcement. Assistant U.S. Attorneys Angela Mastandrea-Miller and Kenneth Simon are prosecuting the cases.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:19-cr-36.
Hickory, N.C. Man Is Sentenced to More Than 10 Years for Drug Trafficking and Firearms OffensesRead the Press Release
STATESVILLE, N.C. – U.S. Attorney Andrew Murray announced today that Tevin Jerome Gaither, 29, of Hickory, N.C., was sentenced to 123 months in prison followed by five years of supervised release on drug trafficking and firearms offenses, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Kenneth D. Bell presided over the sentencing hearing.
Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office, and Chief Thurman Whisnant the Hickory Police Department, join U.S. Attorney Murray in making today’s announcement.
According to filed court documents and today’s sentencing hearing, from at least August 2017 until the day of his arrest in March 2019, Gaither was involved in a drug conspiracy operating in Hickory, NC and elsewhere in Catawba County. Gaither sold cocaine and crack cocaine primarily out of his residence in Hickory. Over the course of the investigation, law enforcement executed a search warrant at Gaither’s residence, and seized narcotics, cash, ammunition, and multiple firearms, some of which were loaded.
“Each time an armed drug dealer is sent to prison, it is a win in our fight to keep our communities safe,” said U.S. Attorney Murray. “Thanks to the investigative work and coordination between the DEA and the Hickory Police Department, Gaither will be serving a 10-year prison sentence.”
“Citizens of Catawba County can feel safer knowing that this crack and cocaine trafficker was removed from their community. This defendant dealt illegal drugs and protected his ill-gotten gains with weapons. He will now spend well-deserved time in prison. This investigation was a success because DEA, its law enforcement partners, and the U.S. Attorney’s Office presented a united front to protect and serve,” said Special Agent in Charge Murphy.
"We greatly appreciate the continued partnership with the DEA and the U.S. Attorney's Office to help keep Hickory safe," said Chief Whisnant.
On July 22, 2019, Gaither pleaded guilty to conspiracy to distribute and possession with intent to distribute cocaine and crack cocaine; possession with intent to distribute cocaine and crack cocaine; and possession of a firearm in furtherance of a drug trafficking crime.
Gaither is currently detained and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
In making today’s announcement U.S. Attorney Murray commended the DEA and the Hickory Police Department for their investigation of this case.
Assistant United States Attorney Sanjeev Bhasker, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Heart Butte man sentenced for distributing methamphetamine to minorRead the Press Release
GREAT FALLS—A Heart Butte man who admitted providing a minor with methamphetamine on the Blackfeet Indian Reservation was sentenced today to 33 months in prison and to six years of supervised release, U.S. Attorney Kurt Alme said.
Gary Allen Jimenez, 24, pleaded guilty in July to distribution of a controlled substance to a person under 21 years of age.
U.S. District Judge Brian M. Morris presided.
The prosecution said in court records that in early 2017, FBI agents began investigating allegations that persons on the Blackfeet Indian Reservation were providing meth and other drugs to minors. A juvenile witness told law enforcement that Jimenez had provided her with meth on multiple occasions and that they smoked six or seven ounces together over a period of time. At the time Jimenez gave the juvenile meth, she was between 12 and 14 years of age.
Assistant U.S. Attorney Jeff Starnes prosecuted the case, which was investigated by the FBI and Blackfeet Law Enforcement Services.
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Hartford Man Pleads Guilty to Federal Narcotics ChargeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DAVID RODRIGUEZ, 25, of Hartford, pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to one count of possession with intent to distribute fentanyl and cocaine base (“crack”).
According to court documents and statements made in court, on July 9, 2018, Hartford Police arrested Rodriguez on Goshen Street after they found him in possession of 50 wax sleeves containing fentanyl and approximately two grams of crack cocaine.
At sentencing, which is not scheduled, Rodriguez faces a maximum term of imprisonment of 20 years.
Rodriguez, who had been detained since his arrest, was released pending sentencing.
This matter is being investigated by the FBI’s Northern Connecticut Violent Crimes Gang Task Force and the Hartford Police Department. The case is being prosecuted by First Assistant U.S. Attorney Leonard C. Boyle and Assistant U.S. Attorney Lauren C. Clark.