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Tuesday 22 October 2019
Hamburg Couple Arrested at the Peace Bridge with MarijuanaRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Narriana Gray and Briana Gray, both 19 and of Hamburg, NY, were arrested and charged by criminal complaint with entry of goods by means of false statements, and possession of a controlled substance (marijuana). The charges carry a maximum penalty of two years in prison.
Assistant U.S. Attorney Jeremiah E. Lenihan, who is handling the case, stated that according to the complaint, on Saturday, October 5, 2019, at approximately 9:21 p.m., the defendants attempted to enter the United States from Canada at the Peace Bridge Port of Entry. During primary inspection, the defendants told a Customs and Border Protection officer that they were hanging out at a bar and the casino in Niagara Falls, Ontario and gave a gave a negative declaration for drugs. A CBP officer smelled the odor of marijuana emanating from the vehicle and referred the defendants for secondary inspection. When asked once again if they had any marijuana or drugs on them, the defendants said no, but said they were hanging around people who were smoking at the casino.
The complaint further states that when questioned again by CBP officers, the defendants admitted to having marijuana concealed in their pants, which was purchased at marijuana dispensary in Niagara Falls, Ontario. In total, the defendants had approximately 76 grams of marijuana on them.
The defendants made an initial appearance before U.S. Magistrate Judge H. Kenneth Schroder, Jr and were released.
The complaint is the result of an investigation by Customs and Border protection, under the direction of Director of Field Operations Rose Brophy, and Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Ghanaian National Pleads Guilty for His Role in Romance and Precious Metal Scams Against Older VictimsRead the Press Release
CHARLOTTE, N.C. – Suleman Alhassan, 37, a Ghanaian national residing in Charlotte, appeared before U.S. Magistrate Judge David C. Keesler today and pleaded guilty to wire and mail fraud conspiracy, for perpetrating romance and precious metal scams against older victims, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
David M. McGinnis, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service, and John Eisert, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Charlotte join U.S. Attorney Murray in making today’s announcement.
According to filed plea documents and today’s plea hearing, beginning in or about March 2016, Alhassan and his unindicted co-conspirators operated a romance scheme based, in part, in Ghana and in Charlotte. Using fake identities, Alhassan and his co-conspirators used online dating websites and other methods to target potential fraud victims, who were frequently elderly, with false promises of a romantic relationship. As part of the scheme and in addition to developing fake romantic relationships with the victims, Alhassan and others falsely claimed to own large quantities of gold located in Ghana, and falsely told victims that the victims needed to send money to Alhassan and his co-conspirators to pay for shipping the gold from Ghana to the United States and other countries where it could be sold. As Alhassan admitted in court today, he and his co-conspirators falsely told the victims that they would receive a share of the profits when the gold was sold or brought into the United States.
Alhassan and his co-conspirators further induced victims to send funds under the guise of securing travel documents for the person with whom the victims believed to be in a romantic relationship. To convince victims to send even more money, Alhassand and his co-conspirators used fictitious problems, including problems with travel visas and customs related issues, and continued to call, text, and e-mail the victims and insist that additional money was needed, until the victims either ran out of money or discovered the fraudulent nature of the scheme. The total loss associated with the scheme exceeds $1 million.
Alhassan is currently detained. The mail and wire fraud conspiracy charge carries a maximum prison term of 20 years and a $250,000 fine. A sentencing date has not been set.
USPIS and HSI led the investigation. Assistant United States Attorney Jenny G. Sugar, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
In March 2019, Andrew Murray, U.S. Attorney for the Western District of North Carolina, announced the Office’s Elder Justice Initiative, which aims to combat elder financial exploitation by expanding efforts to investigate and prosecute financial scams that target seniors; educate older adults on how to identify scams and avoid becoming victims of financial fraud; and promote greater coordination with law enforcement partners. For more information please visit: /usao-wdnc/elder-justice-initiative
Gangster Disciples Enforcer Sentenced for Committing Violent Crimes in Aid of Racketeering, Drug and Firearms ViolationsRead the Press Release
Jackson, TN – Dontoreus Douglas, a/k/a "D.T.," 32, was sentenced to 280 months in federal prison for attempted murder in aid of racketeering activity; discharge of a firearm during and in relation to a crime of violence; possession of marijuana with the intent to distribute, and possession of a firearm in furtherance of a drug trafficking crime. U.S. Attorney D. Michael Dunavant announced the sentence today.
According to information presented in court, in 2009, Dontoreus Douglas became a member of the street gang and criminal enterprise known as the Gangster Disciples. The Gangster Disciples enterprise has a highly organized structure with nationwide reach, active in 35 states. In 2012, Douglas committed attempted murders for the purpose of gaining entrance to or maintaining or increasing position within the Gangster Disciples. As a member of the "Blackout Squad," he held the rank of Chief of Security/Enforcer.
On June 12, 2012, officers with the Jackson Police Department were dispatched to a residence in Jackson, Tennessee in response to gun shots. Officers found that a victim had been shot twice and they observed approximately thirty-five bullet holes in a vehicle. Investigators found thirty 7.62 caliber round casings and twenty-six .223 caliber round casings in an area across the street.
On February 27, 2013, investigators received information about narcotics being sold from a residence, known as the "Compound", the Gangster Disciples headquarters. Law enforcement were familiar with this area. Investigators searched the apartment and discovered a loaded AK-style rifle that utilized 7.62 caliber rounds and drugs and gang paraphernalia, as well as receipts belonging to the defendant. Agents with the Alcohol, Tobacco, Firearms and Explosives laboratory determined that the rifle found at the apartment was the same rifle that fired all thirty rounds of 7.62 caliber rounds recovered from the scene of the June 12, 2012 shooting.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) laboratory located in Atlanta, Georgia, did NIBIN testing on the weapon found in Douglas’ possession. NIBIN, or the National Integrated Ballistics Information Network, is an ATF led program that is used to link violent criminals to the violent crimes they commit by using the firearms they possess or use. The NIBIN program allows law enforcement to leverage technology to assist local agencies, such as the Jackson Police Department, to solve violent crimes. NIBIN is not only instrumental in Jackson, Tennessee, but also in other parts of the country where the criminal element uses firearms to commit crimes of violence.
On June 3, 2016, after investigating a suspicious freight container delivered at a local Jackson business, it was picked up by Douglas and contained marijuana. Officers further discovered that the defendant also possessed a loaded pistol and a smaller amount of cocaine and heroin.
On October 18, 2019, U.S. District Court Chief Judge S. Thomas Anderson sentenced Douglas to 280 months in federal prison followed by 4 years supervised release.
U.S. Attorney D. Michael Dunavant said, "Dismantlement of criminal gangs is a top priority of the Department of Justice, and this case represents the collaborative efforts of federal, state, and local law enforcement to target and remove a significant violent participant and leader in the Gangster Disciples organization. ‘D.T.’ will now serve a sentence of over 23 years in federal prison for his violent and drug crimes. We are taking the fight to the gangs in West Tennessee, and we are relentless in our resolve."
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Federal Bureau of Investigation (FBI), Jackson Police Department's Gang Enforcement Unit and the Jackson Madison County Metro Narcotics Unit investigated this case.
Assistant U.S. Attorneys Beth Boswell and Hillary Lawler Parham prosecuted this case on behalf of the government.
Former Senior UAW Official Pleads Guilty to Taking $123,000 in Bribes and KickbacksRead the Press Release
Jeffery Pietrzyk, a former high-level official in the UAW’s General Motors Department, pleaded guilty today to conspiring with other UAW officials to engage in honest services fraud by taking over $123,000 in bribes and kickbacks from UAW vendors and contractors and to conspiring to launder the proceeds of the scheme announced U.S. Attorney Matthew Schneider.
Joining in the announcement were Irene Lindow, Special Agent in Charge of the U.S. Department of Labor – Office of Inspector General, Steven M. D’Antuono, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation, Manny Muriel, Special Agent in Charge of the Detroit, Michigan office of the Internal Revenue Service – Criminal Investigations, and Thomas Murray, District Director, U.S. Department of Labor – Office of Labor-Management Standards.
Jeffery Pietrzyk, 74, of Grand Island, NY, pleaded guilty to conspiring to engage in honest services wire fraud and to conspiring to launder money between 2006 and 2018. During the plea hearing, Pietrzyk admitted that he conspired with two other high-level UAW officials in the UAW’s GM Department to take millions of dollars in bribes and kickbacks from vendors doing business with the joint UAW-GM Center for Human Resources. The Center for Human Resources is supposed to be a center for training UAW workers employed by GM. Pietrzyk and the other UAW officials served on the Executive Board for the Center for Human Resources, and they were responsible for approving contracts with the vendors. Pietrzyk admitted that over the course of the twelve year conspiracy, he and the other two UAW officials demanded and accepted bribes and kickbacks from the vendors in exchange for securing or maintaining contracts with the Center for Human Resources or with the UAW’s GM Department.
Pietrzyk and his co-conspirators took bribes and kickbacks from the vendors in exchange for contracts with the UAW and/or the Center for Human Resources for watches, jackets, and UAW stores at GM manufacturing facilities. For example, in 2011, Pietrzyk and two other UAW officials demanded that a vendor give them a $300,000 kickback on a $6 million contract to purchase 50,000 jackets emblazoned with “Team UAW-GM.” One UAW official collected the $300,000 kickback and delivered the proceeds to Pietrzyk, who in turn delivered the money to another UAW official.
In another corrupted contract, Pietrzyk and his UAW co-conspirators demanded kickbacks on a $3.9 million contract for the Center for Human Resources to buy 58,000 watches for all UAW members employed by GM. The UAW officials demanded over $300,000 in kickbacks on the watch contract to be distributed between 2013 through 2016. Some of the kickbacks were distributed in the form of checks disguised as tens of thousands of dollars in payments for “antique furniture” which were deposited into Pietrzyk’s personal bank account. The majority of the kickbacks were distributed as cash. In 2014, the UAW-GM Center for Human Resources received the 58,000 watches from the vendor. However, the watches were never distributed to UAW members. Instead, the watches have been sitting in storage in a warehouse for over five years.
Besides conspiring with other UAW officials and vendors to the UAW, Pietrzyk also admitted that he conspired to launder the proceeds of the kickback scheme by using various methods to conceal and disguise the bribes and kickbacks through a lengthy and complicated series of financial transactions.
Pietrzyk is the tenth defendant to plead guilty in connection with the ongoing criminal investigation into illegal payoffs to UAW officials by FCA executives and corruption within the UAW itself. The following individuals have already pleaded guilty to their participation in the scheme and have been sentenced: former FCA Vice President for Employee Relations Alphons Iacobelli (66 months in prison), former FCA Financial Analyst Jerome Durden (15 months in prison), former Director of FCA’s Employee Relations Department Michael Brown (12 months in prison), former senior UAW officials Virdell King (60 days in prison), Keith Mickens (12 months in prison), Nancy A. Johnson (12 months in prison), Monica Morgan, the widow of UAW Vice President General Holiefield (18 months in prison), and former UAW Vice President Norwood Jewell (15 months in prison). Michael Grimes has pleaded guilty and is awaiting sentencing.
U.S. Attorney Schneider commended the outstanding work of the Internal Revenue Service – Criminal Investigations, the U.S. Department of Labor – Office of Labor-Management Standards and Office of Inspector General, and the Federal Bureau of Investigation in conducting a comprehensive criminal investigation into labor corruption activities involving a vital sector of the local and national economy.
“The hard-working members of the UAW deserve to be represented by union officials dedicated to providing honest representation free of corruption and greed, and today’s guilty plea is another step in the right direction,” stated US Attorney Schneider.
“Jeffrey Pietrzyk engaged in a fraudulent scheme to deprive the International United Auto Workers Union of his honest services by demanding and accepting over $120,000 in bribes and kickbacks from vendors. Instead of bargaining in the best interests of the UAW members, he chose to personally enrich himself. We will continue to work with our law enforcement partners to protect the financial integrity of labor organizations,” stated Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
“In his official role, Mr. Pietrzyk was charged with protecting the interests of his fellow union employees, but today he admitted to abdicating this responsibility to serve his own interests,” said Steven M. D’Antuono, Special Agent in Charge of the FBI’s Detroit Field Office. “We will continue to work with our law enforcement partners to investigate corruption and ensure the financial integrity of our country's labor unions.”
“Bribes, kickbacks, and money laundering permeated UAW culture for years and years, all at the expense of its membership. Today’s guilty plea is yet another reminder that the Internal Revenue Service – Criminal Investigation and its law enforcement partners are dedicated to uncovering and stopping illegal and corrupt business leaders from taking advantage of not only their employees, but also the American tax payers,” said Special Agent in Charge Muriel, Detroit Field Office, Internal Revenue Service – Criminal Investigations.
“Jeffery Pietrzyk betrayed the trust of the union membership when he used his position to enrich himself and others within the UAW by accepting bribes and kickbacks from UAW vendors and contractors,” said Thomas Murray, District Director, U.S. Department of Labor, Office of Labor-Management Standards. “Protecting members against corruption perpetrated by their union leaders is critical to the mission of OLMS.”
The case is being prosecuted by Assistant U.S. Attorneys Frances Carlson and Eaton Brown.
Former Norwich Pharmacist Admits Forging Prescriptions to Acquire Oxycodone and AlprazolamRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ERIC TINGLEY, 43, formerly of Lebanon, Connecticut, and currently residing in Hopkinton, Rhode Island, pleaded guilty today in Hartford federal court to an offense stemming from his use of forged prescriptions to acquire thousands of oxycodone and alprazolam tablets from the Connecticut pharmacy where he was employed.
According to court documents and statements made in court, Tingley was a licensed pharmacist employed at a pharmacy in Norwich. Between approximately October 2016 and July 2017, Tingley forged approximately 183 prescriptions for oxycodone and approximately 26 prescriptions for alprazolam, and filled the forged prescriptions at the pharmacy where he worked. Through these forged prescriptions, Tingley unlawfully obtained more than 35,000 oxycodone tablets and more than 2,000 alprazolam tablets. He then distributed the drugs for his own benefit.
Tingley was arrested on June 27, 2018.
Tingley pleaded guilty to one count of possession with intent to distribute oxycodone and alprazolam, an offense that carries a maximum term of imprisonment of 20 years. He is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on January 9, 2020.
Tingley is released on a $50,000 bond pending sentencing.
This investigation is being conducted by the Drug Enforcement Administration and is being prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.
Former Honolulu Prosecutor Katherine Kealoha, Former Police Chief Louis Kealoha Plead GuiltyRead the Press Release
Special Attorneys Michael Wheat (619) 546-8437, Joseph Orabona (619) 546-7951, Janaki Gandhi (619) 546-8817 and Colin McDonald (619) 546-9144
NEWS RELEASE SUMMARY – October 22, 2019
HONOLULU, Hawaii – Former Honolulu Deputy Prosecutor Katherine Kealoha pleaded guilty in federal court to bank fraud, aggravated identity theft and drug charges, while her husband, former Honolulu Police Chief Louis Kealoha, pleaded guilty to bank fraud, in separate hearings today.
The pleas resolve all outstanding charges that were pending against the Kealohas following their corruption conviction in another case by a federal jury in June 2019. U.S. District Judge J. Michael Seabright’s acceptance of the guilty pleas means the Kealohas will not face a second trial in January 2020 on the bank fraud charges, and Katherine Kealoha will not face a third trial in May 2020 on the drug charges.
In June 2019, the Kealohas were convicted by a federal jury for abusing their power by conspiring with two police officers to frame Katherine Kealoha’s uncle, Gerard Puana, for a crime he did not commit in a desperate attempt to discredit his claim that the Kealohas stole a substantial amount of money from him and his 100-year-old mother – Katherine’s own grandmother – Florence Puana.
As part of the guilty pleas today, the Kealohas also entered into sentencing agreements in the case where the jury found them guilty of conspiracy to frame the uncle. In the sentencing agreements, the Kealohas agreed to waive their appellate rights. The parties also agreed to recommend that the Court order the Kealohas to pay $289,714.96 in restitution to the victims of their fraud, including $46,261.00 to Gerard Puana and $243,453.9 to Florence Puana.
In her plea agreements today, Katherine Kealoha resolved two cases with admissions that she was involved in an elaborate bank fraud scheme and a drug trafficking conspiracy with her brother, anesthesiologist Rudolph B. Puana, who wrote medically unnecessary prescriptions for controlled substances such as oxycodone and fentanyl in order to resell them. When the brother came under police suspicion, Katherine Kealoha used her law enforcement position to take control of the investigation and ensure that she and her brother were not prosecuted. Moreover, Katherine Kealoha also admitted that she obtained fraudulent loans from several banks and credit unions and stole more than $165,000 inheritance of two children, Ransen Taito and Ariana Taito, for whom she served as financial guardian. In her plea agreement, the parties agreed to recommend that the Court order Katherine Kealoha to pay restitution $165,269.82 to the Taitos and to forfeit $63,476.97 from the sale of the Kealohas’ home.
Both Kealohas admitted in plea agreements that they defrauded banks with elaborate schemes in order to obtain loans to fund their extravagant lifestyle. Louis Kealoha’s plea agreement said the couple spent more than $591,000, which was derived from: (1) stolen proceeds from a reverse mortgage obtained by Florence Puana; (2) stolen funds belonging to the Taito children; and (3) loan proceeds obtained through banks and credit unions. In his plea agreement, Louis Kealoha agreed that the Court order him to pay $165,269.82 to the Taitos and to forfeit $63,476.97 from the sale of the Kealohas’ home.
The Court will reset all of the sentencing hearings at a status hearing scheduled for next week.
DEFENDANTS
Katherine P. Kealoha Age: 49 Honolulu, Hawaii
Louis M. Kealoha Age: 59 Honolulu, Hawaii
SUMMARY OF CHARGES
Katherine Kealoha CR No. 17-00582-JMS-WRP
Conspiracy, in violation of 18 U.S.C. § 371
Maximum Penalty: Five years in prison, $250,000 fine
Obstruction of Official Proceeding, in violation of 18 U.S.C. § 1512(c)(2)
Maximum Penalty: Twenty years in prison per count, $250,000 fine per count
Katherine Kealoha CR No. 18-00068-JMS-WRP
Bank Fraud, in violation of 18 U.S.C. § 1344
Maximum Penalty: Thirty years in prison, $1 million fine
Aggravated Identity Theft, in violation of 18 U.S.C. § 1028A
Maximum Penalty: Mandatory term of imprisonment of two years, to be served consecutive to the sentence imposed for any underlying charge; fine of up to $250,000
Katherine Kealoha CR No. 19-00015 JMS-WRP
Misprision of Felony, in violation of 18 U.S.C. § 4
Maximum Penalty: Three years in prison; fine of up to $250,000;
Louis Kealoha CR No. 17-00582 JMS-WRP
Conspiracy, in violation of 18 U.S.C. § 371
Maximum Penalty: Five years in prison, $250,000 fine
Obstruction of Official Proceeding, in violation of 18 U.S.C. § 1512(c)(2)
Maximum Penalty: Twenty years in prison per count, $250,000 fine per count
Louis Kealoha CR No. 18-00068-JMS-WRP
Bank Fraud, in violation of 18 U.S.C. § 1344
Maximum Penalty: Thirty years in prison, $1 million fine
AGENCY
Federal Bureau of Investigation
Honolulu, Portland, and San Diego Divisions
Florida Man Indicted for Violating Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced that on October 3, 2019, KENNIE SANTOS-PAYANO, age 24, a resident of Kissimmee, Florida, was indicted by the Federal Grand Jury in a one count indictment, charging him with possession with the intent to distribute more than five kilograms of cocaine hydrochloride.
On September 25, 2019, a Louisiana State Police Trooper conducted a traffic stop in Madisonville, St. Tammany Parish, Louisiana, on Interstate 12 eastbound on a vehicle bearing a Florida license plate. The stop was based on a traffic violation. The trooper identified the driver and sole occupant of the vehicle as SANTOS-PAYANO.
Shortly after the traffic stop, troopers deployed a trained and qualified K-9 drug detection dog, and the dog performed a free air sniff test on the exterior of SANTOS-PAYANO’s vehicle. The K-9 alerted to the presence of narcotics in the vehicle. A subsequent search of the vehicle resulted in the discovery of approximately 9.34 kilograms of a white powdery substance that tested positive for the presence of cocaine hydrochloride on the floorboard of the vehicle.
SANTOS-PAYANO, if convicted, faces a mandatory minimum term of imprisonment of 10 years and a maximum of life imprisonment, a fine of up to $10,000,000.00, and at least five years of supervised release following any term of imprisonment.
U.S. Attorney Strasser reiterated that the indictment is merely a charging document and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the Office of Homeland Security Investigations and the Louisiana State Police. Assistant United States Attorney Bayonle Osundare is in charge of the prosecution.
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Financial Adviser Pleads Guilty to Running A Multimillion-Dollar Ponzi SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that JAMES T. BOOTH pled guilty to securities fraud in connection with his years-long scheme to defraud customers of his financial services firm, Booth Financial Associates (“Booth Financial”), of nearly $5 million through a variety of lies and misrepresentations. BOOTH pled guilty before U.S. District Judge John G. Koeltl.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Booth bilked some 40 clients of nearly $5 million by convincing them that he would deliver solid and secure returns on their investments. Instead, Booth delivered lies and deceit. Today, Booth has admitted to his scheme and now faces a prison term for his lies.”
According to the allegations contained in the Indictment:
From 2013 through 2019, BOOTH solicited money from clients of Booth Financial and falsely promised to invest their money in securities offered outside of their ordinary advisory and brokerage accounts. Specifically, BOOTH directed certain of his clients to write checks or wire money to an entity named “Insurance Trends, Inc.” Instead of investing his clients’ funds, BOOTH, who controlled the bank account of Insurance Trends, Inc., subsequently misappropriated his clients’ funds to pay his personal and business expenses.
In total, BOOTH raised approximately $4.9 million from approximately 40 investors. BOOTH lured many of his victims with false promises of safe investments with high returns. For example:
- BOOTH convinced a recently widowed elderly investor (“Investor-1”) to move money she had received from her late husband’s pension into Insurance Trends, Inc. BOOTH falsely promised Investor-1 that she would have $1 million by the time she was 100 years old. As a result of BOOTH’s false assurances, Investor-1 invested more than $600,000 with BOOTH.
- BOOTH similarly convinced another investor (“Investor-2”) to move his money into an investment product that, according to BOOTH, would never lose its principal and would grow with the market. Based on this false representation, Investor-2 moved money he had set aside for his child’s college expenses, at least approximately $60,000, to BOOTH. BOOTH subsequently failed to provide Investor-2 with documentation of his investment or to allow Investor-2 to redeem his investment.
- BOOTH convinced another elderly investor (“Investor-3”) to withdraw money from an annuity established for the care of his disabled sibling, approximately $18,000, and invest that money with BOOTH. Investor-3 gave the money to BOOTH with the understanding that BOOTH would invest that money for the benefit of Investor-3’s sibling’s continued care.
To prevent investors from seeking a return of their money, and to induce additional investments, BOOTH provided investors with fabricated account statements that falsely indicated that BOOTH had purchased certain securities on their behalf and that those investments had generated a profit. BOOTH further concealed the truth from investors by using money obtained from new investors to make redemption payments to previous investors, in a Ponzi-like fashion.
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BOOTH, 74, of Norwalk, Connecticut, pled guilty to one count of securities fraud, which carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
BOOTH is scheduled to be sentenced by Judge Koeltl on February 21, 2020.
Mr. Berman praised the outstanding work of Homeland Security Investigations and also thanked the New York City Police Department, which assisted in the investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Robert L. Boone is in charge of the prosecution.
Felon Charged a Third Time with Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man with two prior federal convictions for illegally possessing firearms was indicted by a federal grand jury today for illegally possessing two more firearms.
Demario A. Eatmon, 35, was charged in a two-count indictment returned by a federal grand jury in Kansas City.
Today’s indictment alleges that Eatmon was in possession of a Sig Sauer 9mm semi-automatic pistol and 35 rounds of ammunition on Nov. 26, 2017. The indictment also alleges that Eatmon was in possession of a Norinco 7.62x39-caliber semi-automatic rifle on Dec. 9, 2017.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Eatmon has two prior federal felony convictions for being a felon in possession of a firearm, two prior felony convictions for tampering with a motor vehicle and resisting arrest, and a prior felony conviction for burglary.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Ashleigh A. Ragner. It was investigated by the Kansas City, Mo., Police Department.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.Federal Jury Convicts Cleveland Man of Stealing Firearms, RobberyRead the Press Release
PITTSBURGH, Pa. – A resident of Cleveland, Ohio, was found guilty after a two-day jury trial of offenses related to the burglary of the store of a federally licensed gun dealer and the robbery of a gas station, in Clarion County, United States Attorney Scott W. Brady announced today.
Reginald Patterson, 23, of Cleveland Ohio., was convicted of conspiracy to commit theft of firearms from a licensed firearms dealer, theft of firearms from a licensed firearms dealer, possession of stolen firearms, interstate transportation of stolen firearms, conspiracy to commit robbery, and robbery.
Reginald Patterson’s brother, Rayshawn Patterson, pleaded guilty to the same offenses in September 2019. According to information provided to the court, the brothers traveled from Cleveland to rural areas of western Pennsylvania in December 2017 to commit these crimes. On December 22, 2017, they robbed a Fastway gas station convenience store, physically assaulting the lone employee working at the time in the process. The following night, they returned to the area and, with a third coconspirator, used a sledgehammer to smash the front door and glass display cases of DSD Sports in Brookville, PA. They stole 16 firearms from the store, including 14 handguns and two assault rifles, which they transported back to Cleveland.
U.S. District Judge Arthur J. Schwab scheduled sentencing for Reginald Patterson on March 3, 2020. The law provides for a maximum sentence of 75 years in prison and a fine of $1,500,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and prior criminal history of the defendant.
The cases are being prosecuted by Assistant U.S. Attorneys Timothy Lanni, Brendan Conway, and Doug Maloney.
U.S. Attorney Brady commended the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Pennsylvania State Police, the Brookville Police Department, and the City of Cleveland Division of Police for the investigation leading to the prosecution of Reginald Patterson.
The case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods (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.
Fairbanks Man Sentenced to 87 Months in Federal Prison on Distribution of “Pure” MethamphetamineRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that 33-year-old Christopher Thomas Howard, a/k/a Indy, of Fairbanks, Alaska, has been sentenced on charges of distributing over 74.9 grams of “pure” methamphetamine (“ice”).
Court records state that Howard distributed large quantities of methamphetamine in Fairbanks while on supervised release from an 87-month sentence (later reduced to 70) that the federal court imposed in 2012 for being a felon in possession of a firearm and attempted distribution of large quantities of cocaine and crack cocaine. Howard was arrested pursuant to a Criminal Complaint and then indicted on April 25, 2019.
According to the indictment, Howard distributed over 5 grams of ice to one individual on Nov. 15, 2018, and again on Dec. 6, 2018. On Jan. 3, 2019, Howard increased his distribution to over 50 grams of ice to the same individual stating “the meth was pure and not cut” and that he would be getting more soon. Lab reports indicate the quantity from the last buy in January was 55.2 grams of 98% pure methamphetamine.
The government argued that even relatively small amounts of meth can have disastrous impacts on Fairbanks and rural communities due to the smaller population and higher rates of drug abuse and addiction. Five grams of meth in Fairbanks harms a disproportionately larger segment of the population and is further amplified when the meth is pure. In fact, in imposing an 87-month sentence, Senior District Court Judge Ralph R. Beistline emphasized that selling pure methamphetamine is nothing to be proud of and recognized Howard’s prior violent criminal history as justifying the sentence.
The Drug Enforcement Administration (DEA), the Alaska State Troopers, and the Fairbanks and North Pole Police Departments conducted the investigation leading to the sentence in this case. The case was prosecuted by Assistant U.S. Attorney Ryan Tansey.
Dubois, PA Man Pleads Guilty to Possessing Child Porn Pictures and VideosRead the Press Release
JOHNSTOWN, Pa. – A Clearfield County resident pleaded guilty in federal court to the charge of possession of child pornography, United States Attorney Scott W. Brady announced today.
Matthew Hutzell, 27, of Dubois, Pa., pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on Oct. 31, 2013, Hutzell knowingly possessed pictures and videos in individual computer graphic files which were produced using prepubescent minors engaging in sexually explicit conduct. The computer graphic files were shipped or transported in interstate or foreign commerce.
Judge Gibson scheduled sentencing for Feb. 25, 2019, at 10:00 a.m. The law provides for a maximum sentence of 20 years in prison and a fine of $250,000 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 Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Pennsylvania State Police Computer Crime Task Force conducted the investigation that led to the prosecution of Hutzell.
District Court Permanently Enjoins 15 Individuals and Companies from Involvement in Elder-Fraud Mail SchemesRead the Press Release
A federal judge in the Eastern District of New York has ordered 15 individuals and companies to permanently cease their involvement with fraudulent mailings. According to a complaint filed by the United States in November 2018, the defendants mailed, or assisted the mailing of, thousands of solicitations stylized as individualized notices, which falsely stated recipients had won large sums of money or valuable prizes, but needed to pay a fee to claim the winnings. Yesterday’s order ends defendants’ involvement in these multi-million dollar mail fraud schemes. These cases are part of the Department of Justice’s Elder Fraud Initiative.
“The Department will vigorously pursue those who peddle false promises of wealth,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “I look forward to the day when American consumers no longer find fraudulent mailings in their mailboxes.”
According to the complaint, the 15 defendants participated in the schemes in a variety of ways, including coordinating the mailings, opening and processing victims’ responses to the fraudulent solicitations, managing lists of recipients and respondents, and processing victim payments. Working together, the defendants mailed thousands of solicitations each week that trumpeted the recipients’ supposed good fortune and gave the false impression that the recipients were approved to receive large cash payments. The solicitations were mailed to victims throughout the world. Victims returned their payments to mailboxes located in the United States, but received nothing of value in return. The complaint alleged that, in the last year, the schemes collectively grossed an estimated $4.8 million in fraudulent proceeds.
“These permanent injunctions stop unscrupulous individuals and companies from conducting fraudulent solicitation schemes that targeted the elderly in our district and throughout the country and the world,” said U. S. Attorney Richard P. Donoghue of the Eastern District of New York. “This office will continue to use all available resources to protect victims of get-rich-quick schemes.”
“The U.S. Postal Inspection Service has a long history of investigating fraud schemes and protecting customers from scammers. These defendants were making misleading promises of easy money,” said Inspector in Charge Delany DeLeon-Colon of the U.S. Postal Inspection Service’s Criminal Investigations Group. “Anyone who engages in deceptive practices like this should know they will not go undetected and will be held accountable, regardless of where they are.”
The enjoined defendants reside in the United States, specifically in New York and Arizona, as well as in Canada and Germany. The complaint alleged that defendants Charles Kafeiti of Scottsdale, Arizona; Anthony Kafeiti of Port Jefferson, New York; and Steven L. Diaz of Mt. Sinai, New York, coordinated the schemes. Drew Wilson, of Vancouver, Canada, provided the Kafeitis and Diaz with logistical support. Dennis Hunsaker, of North Las Vegas, Nevada, and his company, Digital Matrix International Inc., enabled the mailings by providing tools that managed lists of recipients and lists of respondents. Carmine Maietta and Elizabeth Maietta, of Westbury, New York, opened and processed victim returns. A German corporation, SixEvolution GmbH, and its operator, David Anthony, processed victim payments.
The permanent injunctions were issued after the District Court granted the government’s request for a temporary restraining order. The permanent injunctions prohibit defendants from, among other things, sending fraudulent solicitations; receiving, handling, or opening any victim mail responding to solicitations; and using or benefiting from lists of victims who previously responded to solicitations. The defendants are also required to notify the government of any interest or participation in any entity involved in mass-mail marketing and of their use of any U.S.-based mailboxes. The orders also authorize the U.S. Postal Inspection Service to open mail that was detained by law enforcement and return payments to the schemes’ victims.
The government is represented by Trial Attorney Jacqueline Blaesi-Freed of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorneys Seth Eichenholtz and John Vagelatos of the U.S. Attorney’s Office for the Eastern District of New York. The United States Postal Inspection Service provided investigative support.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Eastern District of New York, visit its website at www.justice.gov/usao-edny.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, this past March the Department announced the largest elder fraud enforcement action in American history, charging more than 260 defendants in a nationwide elder fraud sweep. The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act. More information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice.
District Court Enters Permanent Injunctions Against 15 Individuals and Companies Involved in Elder Fraud Mail SchemesRead the Press Release
CENTRAL ISLIP – The United States District Court for the Eastern District of New York entered permanent injunctions against 15 individuals and companies to cease their involvement with fraudulent mailings. According to a complaint filed by the United States in November 2018, the defendants mailed, or assisted the mailing of, thousands of solicitations stylized as individualized notices that falsely stated recipients had won large sums of money or valuable prizes, but had to pay a fee to claim the winnings. Today’s order ends defendants’ involvement in these multi-million dollar mail fraud schemes. These cases are part of the Department of Justice’s Elder Fraud Initiative.
“These permanent injunctions stop unscrupulous individuals and companies from conducting fraudulent solicitation schemes that targeted the elderly in our district and throughout the country and the world,” stated United States Attorney Donoghue. “This Office will continue to use all available resources to protect victims of get-rich- quick schemes.”
“The Department will vigorously pursue those who peddle false promises of wealth,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “I look forward to the day when American consumers no longer find fraudulent mailings in their mailboxes.”
“The U.S. Postal Inspection Service has a long history of investigating fraud schemes and protecting customers from scammers. These defendants were making misleading promises of easy money,” stated Delany De Leon-Colon, Inspector in Charge, U.S. Postal Inspection Service Criminal Investigations Group. “Anyone who engages in deceptive practices like this should know they will not go undetected and will be held accountable, regardless of where they are.”
The 15 defendants participated in the schemes in a variety of ways, including facilitating the mailing of fraudulent solicitations related to three mail fraud schemes that primarily victimized the elderly or vulnerable. The solicitations informed recipients throughout the world that they had won multi-million dollar cash prizes but needed urgently to pay a fee to claim their winnings. Although victims sent in the requested fees by cash, check or credit card, they did not receive large cash prizes in return. The complaint alleged that, in the last year, the schemes collectively grossed an estimated $4.8 million in fraudulent proceeds.
The complaint alleged that defendants Charles Kafeiti of Scottsdale, Arizona; Anthony Kafeiti of Port Jefferson, New York; and Steven L. Diaz of Mt. Sinai, New York, coordinated the schemes. Drew Wilson, a resident of Vancouver, Canada, provided the Kafeitis and Diaz with logistical support. Dennis Hunsaker, a resident of North Las Vegas, Nevada, and his company, Digital Matrix International Inc., provided tools that managed lists of recipients and lists of respondents. Carmine Maietta and Elizabeth Maietta, of Westbury, New York, opened and processed victim returns. A German corporation, SixEvolution GmbH, and its operator, David Anthony, processed victim payments.
The permanent injunctions were issued after the District Court granted the government’s request for a temporary restraining order in November 2018. They prohibit defendants from sending fraudulent solicitations; receiving, handling, or opening any victim mail responding to solicitations; and using or benefiting from lists of victims who previously responded to solicitations. The defendants are required to notify the government of any interest or participation in any entity involved in mass-mail marketing, and of their use of any U.S.-based mailboxes. The injunction also authorizes the U.S. Postal Inspection Service to open mail that was detained by law enforcement and return payments to the victims of the schemes.
This matter is being handled by Assistant U.S. Attorneys Seth Eichenholtz and John Vagelatos of the United States Attorney’s Office for the Eastern District of New York, and Trial Attorney Jacqueline Blaesi-Freed of the Civil Division’s Consumer Protection Branch. The United States Postal Inspection Service provided investigative support.
Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice.
E.D.N.Y. Docket No. 18-CV-6581 (JMA)
Department of Justice awards more than $85.3 million in grants to address school violenceRead the Press Release
ATLANTA – The Department of Justice announced it has awarded more than $85.3 million to bolster school security—including funding to educate and train students and faculty—and support first responders who arrive on the scene of a school shooting or other violent incident.
“Children are precious gifts and deserve to be safe while they are in school,” said U.S. Attorney Byng J. “BJay” Pak. “These grants will provide the resources necessary for enhanced training as well as assistance with developing technology to expedite emergency notifications.”
“These federal resources will help to prevent school violence and give our students the support they need to learn, grow, and thrive,” said Attorney General William P. Barr. “By training faculty, students and first responders, and by improving school security measures, we can make schools and their communities safer.”
The grants award more than $1,050,873 in funding to prevent violence in schools to the Meriwether County Board of Education, Fulton County Board of Education, and Calhoun City School District. In addition, the Georgia Criminal Justice Coordinating Council received $999,554. President Trump signed the STOP School Violence Act into law in March 2018, authorizing grants that are designed to improve threat assessments, train students and faculty to provide tips and leads, and prepare law enforcement officers and emergency professionals to respond to school shootings and other violent incidents. The grant programs are managed by OJP’s Bureau of Justice Assistance and the Justice Department’s Office of Community Oriented Policing Services.
The Bureau of Justice Assistance, within the Department’s Office of Justice Programs, and the Office of Community Oriented Policing Services manage the programs and administer the grants, which include funds to:
• Develop school threat assessment teams and pursue technological solutions to improve reporting of suspicious activity in and around schools;
• Implement or improve school safety measures, including coordination with law enforcement, as well as the use of metal detectors, locks, lighting and other deterrent measures;
• Train law enforcement to help deter student violence against others and themselves;
• Improve notification to first responders through implementation of technology that expedites emergency notifications;
• Develop and operate anonymous reporting systems to encourage safe reporting of potential school threats;
• Train school officials to intervene when mentally ill individuals threaten school safety; and
• Provide training and technical assistance to schools and other awardees in helping implement these programs.
For more details about these individual award programs, as well as listings of individual 2019 awardees, visit https://go.usa.gov/xVJuV
About the Office of Justice Programs: The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal justice system. More information about OJP and its components can be found at www.ojp.gov.
About the Office of Community Oriented Policing Services: The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1994, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of approximately 130,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit www.cops.usdoj.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Department of Justice Awards More Than $85.3 Million in Grants to Address School ViolenceRead the Press Release
SHREVEPORT/ALEXANDRIA/LAFAYETTE/LAKE CHARLES/MONROE - On October 21, 2019, the Department of Justice announced that it awarded more than $85.3 million to bolster school security—including funding to educate and train students and faculty—and support first responders who arrive on the scene of a school shooting or other violent incident.
“These federal resources will help to prevent school violence and give our students the support they need to learn, grow, and thrive,” said Attorney General William P. Barr. “By training faculty, students and first responders, and by improving school security measures, we can make schools and their communities safer.”
“There is no more important cause than protecting our children from harm,” stated Western District of Louisiana U.S. Attorney David C. Joseph. “These grants will give Winn Parish School Board and Caddo Parish School Board the tools to develop better safety measures to help prevent violence in their schools. I want to thank the Department of Justice for making these grants available to provide Louisiana schools with the resources to better identify threats, train crisis teams, and put reporting systems in place. School should always be a safe place for children to learn.”
Winn Parish School Board received $150,000 under Bureau of Justice Assistance (BJA) STOP School Violence Technology and Threat Assessment Solutions for Safer Schools Program. Under BJA’s STOP School Violence Prevention and Mental Health Training Program, Caddo Parish School Board received $250,000. The Louisiana Commission on Law Enforcement received an additional $500,000.
President Trump signed the STOP School Violence Act into law in March 2018, authorizing grants that are designed to improve threat assessments, train students and faculty to provide tips and leads, and prepare law enforcement officers and emergency professionals to respond to school shootings and other violent incidents. The grant programs are managed by OJP’s Bureau of Justice Assistance and the Justice Department’s Office of Community Oriented Policing Services.
The Bureau of Justice Assistance, within the Department’s Office of Justice Programs, and the Office of Community Oriented Policing Services manage the programs and administer the grants, which include funds to:
- Develop school threat assessment teams and pursue technological solutions to improve reporting of suspicious activity in and around schools;
- Implement or improve school safety measures, including coordination with law enforcement, as well as the use of metal detectors, locks, lighting and other deterrent measures;
- Train law enforcement to help deter student violence against others and themselves;
- Improve notification to first responders through implementation of technology that expedites emergency notifications;
- Develop and operate anonymous reporting systems to encourage safe reporting of potential school threats;
- Train school officials to intervene when mentally ill individuals threaten school safety; and
- Provide training and technical assistance to schools and other awardees in helping implement these programs.
For more details about these individual award programs, as well as listings of individual 2019 awardees, visit https://go.usa.gov/xVJuV
About the Office of Justice Programs:
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal justice system. More information about OJP and its components can be found at www.ojp.gov.
About the Office of Community Oriented Policing Services:
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1994, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of approximately 130,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit www.cops.usdoj.gov.# # #
DOJ Awards State Department of Education and Oklahoma City and Norman Schools More Than $2.3 Million for School SecurityRead the Press Release
OKLAHOMA CITY – The Department of Justice has awarded more than $85.3 million to bolster school security—including funding to educate and train students and faculty—and support first responders who arrive on the scene of a school shooting or other violent incident. Including a statewide grant to the Department of Education, more than $2.3 million will go to school security measures in the Western District of Oklahoma.
"These federal resources will help to prevent school violence and give our students the support they need to learn, grow, and thrive," said Attorney General William P. Barr. "By training faculty, students, and first responders, and by improving school security measures, we can make schools and their communities safer."
"Improving public safety by reducing violence is a top priority for this office," said U.S. Attorney Timothy J. Downing of the Western District of Oklahoma. "I am pleased the Department of Justice’s grants can help our state’s educators keep our schools free of violence."
The grants include $600,000 to prevent violence in schools in Norman and Oklahoma City. They also provide more than $1.7 million to the Oklahoma State Department of Education. In particular, DOJ has awarded:
- $250,000 to the State Department of Education and $100,000 to Norman Public Schools to address threats through anonymous reporting technology;
- $996,855 to the State Department of Education to create or enhance a state school safety center;
- $498,997 to the State Department of Education to prevent and respond to mental health crises; and
- $500,000 to Oklahoma City Public Schools for school security measures.
President Trump signed the STOP School Violence Act into law in March 2018, authorizing grants that are designed to improve threat assessments, train students and faculty to provide tips and leads, and prepare law enforcement officers and emergency professionals to respond to school shootings and other violent incidents. The grant programs are managed by OJP’s Bureau of Justice Assistance and the Justice Department’s Office of Community Oriented Policing Services.
The Bureau of Justice Assistance, within the Department’s Office of Justice Programs, and the Office of Community Oriented Policing Services manage the programs and administer the grants, which include funds to:
- Develop school threat assessment teams and pursue technological solutions to improve reporting of suspicious activity in and around schools;
- Implement or improve school safety measures, including coordination with law enforcement, as well as the use of metal detectors, locks, lighting and other deterrent measures;
- Train law enforcement to help deter student violence against others and themselves;
- Improve notification to first responders through implementation of technology that expedites emergency notifications;
- Develop and operate anonymous reporting systems to encourage safe reporting of potential school threats;
- Train school officials to intervene when mentally ill individuals threaten school safety; and
- Provide training and technical assistance to schools and other awardees in helping implement these programs.
About the Office of Justice Programs:
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal justice system. More information about OJP and its components can be found at www.ojp.gov.
About the Office of Community Oriented Policing Services:
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1994, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of approximately 130,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit www.cops.usdoj.gov.
Department of Justice Awards More Than $85.3 Million in Grants to Address School ViolenceRead the Press Release
Eastern District of Wisconsin Awarded $499,996 in Funding
The Department of Justice announced it has awarded more than $85.3 million to bolster school security—including funding to educate and train students and faculty—and support first responders who arrive on the scene of a school shooting or other violent incident.
“These federal resources will help to prevent school violence and give our students the support they need to learn, grow, and thrive,’ said Attorney General William P. Barr. “By training faculty, students and first responders, and by improving school security measures, we can make schools and their communities safer.”
“Our schools should be safe places where students can learn and grow without fear of violence,” said United States Attorney Krueger. “The Justice Department grants being awarded to Wisconsin will help make our schools safer by funding measures to prevent violence before it occurs.”
The grants awarded $499,996 in funding to prevent violence in schools in Eastern District of Wisconsin. President Trump signed the STOP School Violence Act into law in March 2018, authorizing grants that are designed to improve threat assessments, train students and faculty to provide tips and leads, and prepare law enforcement officers and emergency professionals to respond to school shootings and other violent incidents. The grant programs are managed by OJP’s Bureau of Justice Assistance and the Justice Department’s Office of Community Oriented Policing Services.
The Bureau of Justice Assistance, within the Department’s Office of Justice Programs, and the Office of Community Oriented Policing Services manage the programs and administer the grants, which include funds to:
- Develop school threat assessment teams and pursue technological solutions to improve reporting of suspicious activity in and around schools;
- Implement or improve school safety measures, including coordination with law enforcement, as well as the use of metal detectors, locks, lighting and other deterrent measures;
- Train law enforcement to help deter student violence against others and themselves;
- Improve notification to first responders through implementation of technology that expedites emergency notifications;
- Develop and operate anonymous reporting systems to encourage safe reporting of potential school threats;
- Train school officials to intervene when mentally ill individuals threaten school safety; and
- Provide training and technical assistance to schools and other awardees in helping implement these programs.
For more details about these individual award programs, as well as listings of individual 2019 awardees, visit https://go.usa.gov/xVJuV
About the Office of Justice Programs:
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal justice system. More information about OJP and its components can be found at www.ojp.gov
About the Office of Community Oriented Policing Services:
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1994, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of approximately 130,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit www.cops.usdoj.gov.
DEA to accept electronic vaping devices and cartridges as part of National Prescription Drug Take Back Day on SaturdayRead the Press Release
BOSTON – This weekend the U.S. Drug Enforcement Administration will once again conduct one of its most popular community programs: National Prescription Drug Take Back Day. On Saturday October 26 between 10 a.m. and 2 p.m. the public can dispose of their expired, unused, and unwanted prescription medications at 594 collection sites throughout New England, operated by local law enforcement agencies and other community partners. The service is free of charge, no questions asked and most of these collection sites can be found in the lobby of your local Police Department. To find a collection site near you go to: www.DEATakeBack.com
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.
Concerns have been raised across the United States over illnesses and death caused by vaping and the high youth vaping initiation rates. In an effort to support a healthy lifestyle and energetic population, especially amongst America’s youth, DEA is committed to doing all it can to help safely dispose of vaping devices and substances.
This initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. DEA launched its prescription drug take back program when both the Environmental Protection Agency and the Food and Drug Administration advised the public that flushing these drugs down the toilet or throwing them in the trash posed potential safety and health hazards.
“Our take-back events highlight the problems associated to prescription drug abuse and gives our citizens an opportunity to contribute to the solution,” said DEA Special Agent in Charge Brian D. Boyle. “These efforts help remove unwanted, expired and unused prescription pills that can be abused, stolen or resold which helps our continued dedication to combat the prescription pill, fentanyl and heroin epidemic of substance abuse and addiction.
“Everyone should consider participating in National Prescription Drug Take Back Day,” said New Hampshire U.S. Attorney Scott W. Murray. “Although medications are needed to treat illness, we have seen the tragic impact of diverting and abusing prescription drugs. This program is a simple and effective way to protect Granite State families by removing unneeded prescriptions from the home. Properly disposing of these drugs can prevent them from falling into the wrong hands.”
Last April, during its 17th Take Back Day, the DEA New England Field Division participated in the drug take back day and, over the course of four hours, 89,366.3 pounds or over 44 tons of expired, unused, and unwanted prescription drugs we’re collected at 583 collection sites throughout New England.
The following was the breakdown of collected weights for the six New England states:
CT – 8,361.80
MA – 28,117.50
ME – 27,680
NH – 14,180
RI – 4,465
VT – 6,562
Total- 89,366.3
For more information about the harms of youth vaping, please visit: https://www.justthinktwice.gov/facts/vaping-what-you-should-know.
# # #
DEA to Accept Electronic Vaping Devices and Cartridges on National Drug Takeback DayRead the Press Release
BOSTON – This weekend the U.S. Drug Enforcement Administration will once again conduct one of its most popular community programs: National Prescription Drug Take Back Day. On Saturday October 26 between 10 a.m. and 2 p.m. the public can dispose of their expired, unused, and unwanted prescription medications at 594 collection sites throughout New England, operated by local law enforcement agencies and other community partners. The service is free of charge, no questions asked and most of these collection sites can be found in the lobby of your local Police Department. To find a collection site near you go to: www.DEATakeBack.com
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.
Concerns have been raised across the United States over illnesses and death caused by vaping and the high youth vaping initiation rates. In an effort to support a healthy lifestyle and energetic population, especially amongst America’s youth, DEA is committed to doing all it can to help safely dispose of vaping devices and substances.
This initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse, and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. DEA launched its prescription drug take back program when both the Environmental Protection Agency and the Food and Drug Administration advised the public that flushing these drugs down the toilet or throwing them in the trash posed potential safety and health hazards.
“Our take-back events highlight the problems associated to prescription drug abuse and gives our citizens an opportunity to contribute to the solution,” said DEA Special Agent in Charge Brian D. Boyle. “These efforts help remove unwanted, expired and unused prescription pills that can be abused, stolen or resold which helps our continued dedication to combat the prescription pill, fentanyl and heroin epidemic of substance abuse and addiction.”
United States Attorney Aaron L. Weisman added, “The DEA’s Prescription Drug Takeback is an important yet simple step we all can take to ensure that unwanted or unused medications are safely disposed of to prevent them from falling into the hands of individuals who should not have access to them.”
Last April, during its 17th Take Back Day, the DEA New England Field Division participated in the drug take back day and, over the course of four hours, 89,366.3 pounds or over 44 tons of expired, unused, and unwanted prescription drugs we’re collected at 583 collection sites throughout New England.
The following was the breakdown of collected weights for the six New England states:
CT – 8,361.80
MA – 28,117.50
ME – 27,680
NH – 14,180
RI – 4,465
VT – 6,562
Total- 89,366.3
For more information about the harms of youth vaping, please visit: https://www.justthinktwice.gov/facts/vaping-what-you-should-know.
# # #
DEA to Accept Electronic Vaping Devices and Cartridges as Part of National Prescription Drug Take Back Day on SaturdayRead the Press Release
Portland, Maine: U.S. Attorney Halsey B. Frank joined the U.S. Drug Enforcement Administration in announcing that DEA will once again conduct one of its most popular community programs: National Prescription Drug Take Back Day. On Saturday, October 26, between 10 a.m. and 2 p.m., the public can dispose of their expired, unused, and unwanted prescription medications at 594 collection sites throughout New England, operated by local law enforcement agencies and other community partners. The service is free of charge, no questions asked and most of these collection sites can be found in the lobby of your local Police Department. To find a collection site near you go to: www.DEATakeBack.com.
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.
Concerns have been raised across the United States over illnesses and death caused by vaping and the high youth vaping initiation rates. In an effort to support a healthy lifestyle and energetic population, especially among America’s youth, DEA is committed to doing all it can to help safely dispose of vaping devices and substances.
This initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. DEA launched its prescription drug take back program when both the Environmental Protection Agency and the Food and Drug Administration advised the public that flushing these drugs down the toilet or throwing them in the trash posed potential safety and health hazards.
“Our take-back events highlight the problems associated to prescription drug abuse and gives our citizens an opportunity to contribute to the solution,” said DEA Special Agent in Charge Brian D. Boyle. “These efforts help remove unwanted, expired and unused prescription pills that can be abused, stolen or resold which helps our continued dedication to combat the prescription pill, fentanyl and heroin epidemic of substance abuse and addiction.”
“I encourage all Mainers to take advantage of Drug Take Back Day,” said U.S. Attorney Frank. “The Department of Justice and the U.S. Attorney’s Office are deeply committed to combatting the opioid epidemic. Misuse of prescription drugs is a significant contributor to this crisis, and proper disposal of these drugs will ensure that they cannot be abused.”
Last April, during its 17th Take Back Day, DEA’s New England Field Division participated in the drug take back day and, over the course of four hours, 89,366.3 pounds—over 44 tons—of expired, unused and unwanted prescription drugs were collected at 583 collection sites throughout New England.
The following was the breakdown of collected weights for the six New England states:
CT 8,361.8
MA 28,117.5
ME 27,680
NH 14,180
RI 4,465
VT 6,562
TOTAL 89,366.3 pounds
For more information about the harms of youth vaping, please visit: https://www.justthinktwice.gov/facts/vaping-what-you-should-know.
Contractor Pleads Guilty to Filing False Tax ReturnsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Jason Bassett, 43, of Rochester, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to filing a false tax return. The charge carries a maximum penalty of three years in prison and a $250,000 fine.
Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that the defendant owned and operated a paving and sealing company, which provided both personal and commercial sealing and paving services in the Rochester area. After receiving payment for services provided by the business, Bassett failed to deposit all of the income into the business bank account. The defendant would cash some business checks but never place them into the banking system. Also, Bassett did not advise his tax return preparer that he had cashed numerous business checks. As a result, the defendant knowingly caused the preparation of false personal income tax returns, Forms 1040, which failed to report the income that he did not deposit into the business bank account.
For the tax years 2012 through 2015, Bassett failed to report approximately $1,704,873.89 in income on his tax returns, which resulted in the defendant failing to pay approximately $378,331 in taxes to the Internal Revenue Service.
In addition, Bassett failed to withhold taxes from the wages of his employees, did not provide his employees W-2 forms, and did not report this on any other return required to be filed with the Internal Revenue Service.
The plea is the result of an investigation by the Internal Revenue Service, Criminal Investigations Division, under the direction of Special Agent-in-Charge Jonathan D. Larsen, New York Field Office.
Sentencing is scheduled for January 29, 2020, at 3:00 p.m. before Judge Wolford.
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Congolese National with Rape Conviction from the UK Sentenced for Asylum Fraud OffenseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that PATRICK NDAYA KATAMBWA, also known as KASEBA KATAMBWA, 50, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to approximately nine months of imprisonment, time already served, for making a false statement in an immigration document.
According to court documents and statements made in court, Katambwa was born in the Democratic Republic of the Congo (“DRC”). Between approximately 1996 and November 2017, Katambwa resided in the United Kingdom under the assumed identity of Kaseba Katambwa. While in the U.K. using his assumed identity, Katambwa was arrested, prosecuted, convicted and incarcerated for rape, entering into an arrangement to facilitate the acquisition or use of criminal property, and dishonestly retaining a wrongful credit.
In April 2018, Katambwa stated in a U.S. asylum application that his name was “Patrick Ndaya Katambwa,” “Katambwa Patrick Ndaya,” and “Patrick Katambwa Ndaya;” that he had resided in the DRC from February 1969 to January 2018; and that he had been arrested, convicted and sentenced, or imprisoned solely in the DRC, and not in any country other than the U.S.
Katambwa, who most recently resided in Bridgeport, has been detained since his arrest on a federal criminal complaint on February 1, 2019. He pleaded guilty on July 9.
Katambwa was released into the custody of U.S. Immigration and Customs Enforcement for removal proceedings.
This matter was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), and the U.S. Department of State’s Diplomatic Security Service (DSS). The case was prosecuted by Assistant U.S. Attorney Hal Chen.
U.S. Attorney Durham thanked the U.S. Department of Justice’s Office of International Affairs for its assistance in this matter.
Clearfield County Cousins Sentenced for Stealing Mail from an Apartment BuildingRead the Press Release
PITTSBURGH, PA- Two residents of DuBois, PA, have been sentenced in federal court to time served and one year of supervised release on their convictions of conspiracy to commit mail theft and mail theft, United States Attorney Scott W. Brady announced today.
United States District Judge Kim R. Gibson imposed the sentence on both David E. Moore, 27, and Joshua J. Frantz, 26. Both defendants were in custody pending sentencing. Moore served four months in prison and Frantz served seven months in prison.
According to information presented to the court, from in or around February 2016 through in or around March 2016, cousins, Joshua J. Frantz and David E. Moore, Jr., agreed to and did steal mail from mail receptacles located at an apartment complex at 122 West Washington Avenue, DuBois, PA. The court was further advised that on at least 11 occasions, one or both of the defendants were observed on surveillance video either stealing attempting to steal mail from the mail receptacles. Specifically, on March 7, 2016, Frantz and Moore were both observed by way of surveillance footage around 2:21 AM opening mail receptacles and looking into them for mail. Moore was observed taking mail out of a receptacle and placing it inside of his winter jacket. Both defendants were then observed exiting the building. Based upon the statements by the defendants, investigators learned that it was Frantz’s idea to steal the mail; however, Moore continued to steal mail even after Frantz was in custody for another matter. Over 60 individuals had mail stolen from their receptacles as a result of the mail theft conspiracy.
Assistant United States Attorney Rebecca L. Silinski prosecuted this case on behalf of the government.
The United States Postal Inspection Service and the DuBois Police Department conducted the investigation that led to the prosecution of Moore and Frantz.
Charleston Felon Pleads Guilty to Federal Drug and Gun CrimesRead the Press Release
CHARLESTON, W.Va. – A Charleston felon pled guilty to a federal drug and gun crimes today, announced United States Attorney Mike Stuart. Deshaun Thaxton, 24, pled guilty to possession with intent to distribute methamphetamine and possession of firearms in furtherance of a drug trafficking crime.
“A felon with 360 grams of meth and loaded machine guns,” said United States Attorney Mike Stuart. “Drug dealers like Thaxton pose extreme danger to our communities and law enforcement. We are working tirelessly with our law enforcement partners to identify and prosecute gun-toting poison peddlers to put them behind bars,”
Thaxton admitted that he sold methamphetamine on three separate occasions in March and April 2019 to a confidential informant working with law enforcement. On April 5, 2019, officers executed a search warrant at Thaxton’s Dunbar residence and located approximately 360 grams of methamphetamine. Officers also located a CAI Georgiavt AK-47 with a loaded 30 round magazine, an Anderson Manufacturing AR-15 with a loaded 90 round drum, and a Bushmaster AR-15 with a loaded 30 round magazine. Thaxton admitted that he possessed the firearms to protect himself, his drugs, and his drug proceeds. He further admitted that he knew he was prohibited from possessing firearms because he is a convicted felon.
Thaxton faces up to life in prison when sentenced on January 23, 2020.
The Metropolitan Drug Enforcement Network Team (MDENT) conducted the investigation. Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney Monica D. Coleman is handling the prosecution.
This case is being prosecuted as part of the Project Safe Neighborhoods (PSN) program, 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.
Follow us on Twitter: SDWVNews and USAttyStuart
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Carthage Man Sentenced for Federal Firearm OffenseRead the Press Release
Bangor, Maine: A Carthage, Maine man was sentenced today in federal court in Bangor for possessing a firearm after being convicted of a felony, U.S. Attorney Halsey B. Frank announced.
U.S. District Judge Lance E. Walker sentenced Michael Ringer, 55, to 3 years in prison and 3 years of supervised release. Ringer pleaded guilty on March 7, 2019.
According to court records, on August 17, 2018, the Wilton Police Department responded to the scene of a 911 call regarding alleged threats with a firearm and shots fired. Officers learned that Ringer was intoxicated and had gotten into an argument at a social gathering. Several individuals at the gathering had seen him with a handgun. By the time officers arrived, he had left.
The following day, officers found Ringer at his home. A search of his residence resulted in the seizure of a .380 caliber pistol belonging to him. He was prohibited from possessing firearms because of multiple prior felony convictions, including one for possession of a firearm by a felon.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Wilton Police Department.
Campaign Fundraiser Agrees to Plead Guilty to Falsifying Records to Conceal Work as Foreign Agent, Evading Taxes on Income Obtained by Lobbying on Behalf of Foreign Entities, and Illegal Campaign ContributionsRead the Press Release
INFORMATION
PLEA AGREEMENTLOS ANGELES – Federal prosecutors today filed a criminal case charging Imaad Shah Zuberi, a Southern California campaign fundraiser, with falsifying records to conceal his work as a foreign agent while lobbying high-level U.S. government officials. The criminal charges allege that Zuberi engaged in lobbying efforts that earned him millions of dollars, much of which was pilfered from his clients.
In addition to violating the Foreign Agents Registration Act (FARA), Zuberi is charged in a criminal information with tax evasion and making almost $1 million in illegal campaign contributions that included funneling money from foreign entities and individuals to influence U.S. elections.
Zuberi, a 49-year-old resident of Arcadia, California, has agreed to plead guilty to the three counts in the information. A plea agreement also filed today in United States District Court notes that Zuberi faces a statutory maximum sentence of 15 years in federal prison once he pleads guilty to the charges.
Zuberi, who operated a venture capital firm called Avenue Ventures, solicited foreign nationals and representatives of foreign governments with claims he could use his influence in Washington, D.C. to change United States foreign policy and create business opportunities for his clients and himself. According to court documents, clients gave Zuberi money for consulting fees, to make investments, or to fund campaign contributions. As part of his efforts to influence public policy, Zuberi hired lobbyists, retained public relations professionals and made campaign contributions – which gave him access to high-level U.S. officials, some of whom took action in support of his clients. As evidence of his access and influence, Zuberi distributed to his clients photographs of himself discussing policy with elected officials.
While some U.S. officials were willing to take action on issues Zuberi put forward, most of Zuberi’s business efforts were unsuccessful and his clients suffered significant losses. Many of the lobbyists, public relations consultants, and other subcontractors also suffered losses when Zuberi refused to pay them, according to the information.
Zuberi, on the other hand, became wealthy, primarily as the result of fraudulent representations about his background, influence, and the use of client funds, much of which constituted an “outright conversion of client money for defendant Zuberi’s own personal benefit,” the information states.
The information details dozens of illegal campaign contributions – including those paid by Zuberi using the names of other people, “conduit contributions” made by others that Zuberi reimbursed, and contributions to U.S. political campaigns that were financed by foreign entities and individuals.
The information further states that Zuberi accepted money from two foreign companies with promises that the funds would be used to contribute to political campaigns, but Zuberi took the majority of the money – more than $1.1 million – for his own personal use.
“Mr. Zuberi’s multi-faceted scheme allowed him to line his pockets by concealing the fact that he was representing foreign clients, obtaining access for clients by making a long series of illegal contributions, and skimming money paid by his clients,” said United States Attorney Nick Hanna. “Mr. Zuberi circumvented laws designed to insulate U.S. policy and our election process from foreign intervention. This investigation has halted his illegal conduct, will result in several felony convictions, and could send him to prison for a lengthy period of time.”
“American influence is not for sale,” said Paul Delacourt, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Mr. Zuberi lured individuals who were seeking political influence in violation of U.S. law, and in the process, enriched himself by defrauding those with whom he interacted.”
The information details other aspects of Zuberi’s scheme through which he personally profited. Zuberi mounted efforts to convince the government of Bahrain to lift sanctions on a citizen of Bahrain in connection with the development of a large resort in that country. The scheme falsely created the appearance that Avenue Ventures had made a major investment in the Bahrain project. Zuberi lobbied members of Congress to apply political pressure on Bahrain to cease its interference in the project, claiming that it was adversely affecting him as a U.S. investor. In fact, Zuberi designed these efforts to assist the citizen of Bahrain. Zuberi illegally received compensation for these efforts because he failed to register as a foreign agent of the Bahraini citizen.
Zuberi also converted to his own benefit money invested in U.S. Cares, a company established to export humanitarian items to Iran, according to the information. In 2013 and 2014, investors put approximately $7 million into U.S. Cares, but Zuberi used over 90 percent of the investor funds for his personal benefit – to purchase real estate, pay down mortgages, remodel properties, invest in brokerage accounts, donate $250,000 to a non-profit organization established by a former high-ranking elected official, and to pay down personal credit card debt, according to court documents.
In 2014, Zuberi entered into a contract with the government of Sri Lanka to rehabilitate Sri Lanka’s image in the United States, which had suffered as a result of allegations of persecution of the country’s minority Tamil population. Zuberi promised to make substantial expenditures on lobbying efforts, legal expenses and media buys, which prompted Sri Lanka to agree to pay Zuberi a total of $8.5 million over the course of six months in 2014. According to court documents, days after Sri Lanka made an initial payment of $3.5 million, Zuberi transferred $1.6 million into his personal brokerage accounts and used another $1.5 million to purchase real estate.
The information states that Sri Lanka wired a total of $6.5 million pursuant to the contract, and Zuberi directed more than $5.65 million of that money to the benefit of himself and his spouse. Zuberi paid less than $850,000 to lobbyists, public relations firms and law firms, and certain subcontractors did not receive full payment after Zuberi falsely claimed that Sri Lanka had not provided sufficient funds to pay invoices, according to the information.
“This case should deter individuals who seek to provide false statements to the Department and covertly influence our political process on behalf of foreign governments,” said Assistant Attorney General for National Security John C. Demers. “Through misrepresentations in his FARA filing, Mr. Zuberi attempted to deceive our elected officials and the American public on behalf of Sri Lanka. The Department of Justice treats these crimes with the gravity that they deserve and will continue to aggressively identify, investigate and prosecute FARA violations.”
“Mr. Zuberi was the primary organizer of paid political efforts to mold the opinion of political officials, including members of Congress, to benefit Sri Lanka. Instead, he used shell business entities to divert millions of dollars for his own personal use,” stated Special Agent in Charge Ryan L. Korner of IRS Criminal Investigation’s Los Angeles Field Office. “Today's announcement of Mr. Zuberi’s anticipated guilty plea to tax and campaign finance violations demonstrates IRS-CI’s continued commitment to work alongside our federal law enforcement partners to ensure the system remains fair for everyone.”
In relation to the FARA charge in the information, Zuberi agreed to plead guilty to submitting false registration statements in which he concealed his direction of the Sri Lanka lobbying effort, as well as the millions of dollars he received.
In relation to the tax charge in the information, Zuberi agreed to plead guilty to one count of tax evasion for failing to report on his 2014 tax return millions of dollars in income he received from Sri Lanka. While the 2014 income tax return claimed income of $558,233, Zuberi failed to report more than $5.65 million he received in relation to the Sri Lanka lobbying effort. Zuberi admits in his plea agreement that his tax evasion over the course of four years – 2012 through 2015 – caused tax losses of at least $3.5 million and as much as $9.5 million.
In relation to the campaign finance charge, Zuberi agreed to plead guilty to a charge of violating the Federal Election Campaign Act in 2015 by making conduit contributions in the names of other people, reimbursing contributions made by others, and being reimbursed for contributions he made. In his plea agreement, Zuberi admits that over a five-year period – 2012 through 2016 – he made or solicited more than $250,000 in illegal campaign contributions.
Zuberi is expected to make his initial appearance in this case in United States District Court in downtown Los Angeles on October 30.
This matter is being investigated by the FBI and IRS Criminal Investigation.
This case is being prosecuted by Assistant United States Attorneys Daniel J. O’Brien and Elisa Fernandez of the Public Corruption and Civil Rights Section. The National Security Division of the Department of Justice provided assistance to the prosecutors.
Campaign Fundraiser Agrees to Plead Guilty to Falsifying Records to Conceal Work as Foreign Agent, Evading Taxes on Income Obtained by Lobbying on Behalf of Foreign Entities, and Illegal Campaign ContributionsRead the Press Release
Federal prosecutors today filed a criminal case charging Imaad Shah Zuberi, a Southern California campaign fundraiser, with falsifying records to conceal his work as a foreign agent while lobbying high-level U.S. government officials. The criminal charges allege that Zuberi engaged in lobbying efforts that earned him millions of dollars, most of which was pilfered from his clients, and Zuberi has agreed to plead guilty to those charges at a later date, pursuant to a plea agreement.
“This case should deter individuals who seek to provide false statements to the Department and covertly influence our political process on behalf of foreign governments,” said Assistant Attorney General of National Security John C. Demers. “Through misrepresentations in his FARA filing, Mr. Zuberi attempted to deceive our elected officials and the American public on behalf of Sri Lanka. The Department of Justice treats these crimes with the gravity that they deserve and will continue to aggressively identify, investigate and prosecute FARA violations.”
“Mr. Zuberi’s multi-faceted scheme allowed him to line his pockets by concealing the fact that he was representing foreign clients, obtaining access for clients by making a long series of illegal contributions, and skimming money paid by his clients,” said United States Attorney Nick Hanna. “Mr. Zuberi circumvented laws designed to insulate U.S. policy and our election process from foreign intervention. This investigation has halted his illegal conduct, will result in several felony convictions, and could send him to prison for a lengthy period of time.”
“American influence is not for sale,” said Paul Delacourt, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Mr. Zuberi lured individuals who were seeking political influence in violation of U.S. law, and in the process, enriched himself by defrauding those with whom he interacted.”
“Mr. Zuberi was the primary organizer of paid political efforts to mold the opinion of political officials, including members of Congress, to benefit Sri Lanka. Instead, he used shell business entities to divert millions of dollars for his own personal use,” stated Special Agent in Charge Ryan L. Korner of IRS Criminal Investigation’s Los Angeles Field Office. “Today's announcement of Mr. Zuberi’s anticipated guilty plea to tax and campaign finance violations demonstrates IRS-CI’s continued commitment to work alongside our federal law enforcement partners to ensure the system remains fair for everyone.”
In addition to violating the Foreign Agents Registration Act (FARA), Zuberi is charged in a criminal information with tax evasion and making almost $1 million in illegal campaign contributions that included funneling money from foreign entities and individuals to influence U.S. elections.
Zuberi, a 49-year-old resident of Arcadia, California, has agreed to plead guilty to the three counts in the information. A plea agreement also filed today in United States District Court notes that Zuberi faces a statutory maximum sentence of 15 years in federal prison once he pleads guilty to the charges.
Zuberi, who operated a venture capital firm called Avenue Ventures, solicited foreign nationals and representatives of foreign governments with claims he could use his influence in Washington, D.C. to change United States foreign policy and create business opportunities for his clients and himself. According to court documents, clients gave Zuberi money for consulting fees, to make investments, or to fund campaign contributions. As part of his efforts to influence public policy, Zuberi hired lobbyists, retained public relations professionals and made campaign contributions – which gave him access to high-level U.S. officials, some of whom took action in support of his clients. As evidence of his access and influence, Zuberi distributed to his clients photographs of himself discussing policy with elected officials.
While some U.S. officials were willing to take action on issues Zuberi put forward, most of Zuberi’s business efforts were unsuccessful and his clients suffered significant losses. Many of the lobbyists, public relations consultants, and other subcontractors also suffered losses when Zuberi refused to pay them, according to the information. Zuberi, on the other hand, became wealthy, primarily as the result of fraudulent representations about his background, influence, and the use of client funds, much of which constituted an “outright conversion of client money for defendant Zuberi’s own personal benefit,” the information states.
The information details dozens of illegal campaign contributions – including those paid by Zuberi using the names of other people, “conduit contributions” made by others that Zuberi reimbursed, and contributions to U.S. political campaigns that were financed by foreign entities and individuals.
The information further states that Zuberi accepted money from two foreign companies with promises that the funds would be used to contribute to political campaigns, but Zuberi took the vast majority of the money – more than $1.1 million – for his own personal use.
The information details other aspects of Zuberi’s scheme through which he personally profited. Zuberi mounted efforts to convince the government of Bahrain to lift sanctions on a citizen of Bahrain in connection with the development of a large resort in that country. The scheme falsely created the appearance that Avenue Ventures had made a major investment in the Bahrain project. Zuberi lobbied members of Congress to apply political pressure on Bahrain to cease its interference in the project, claiming that it was adversely affecting him as a U.S. investor. In fact, Zuberi designed these efforts to assist the citizen of Bahrain. Zuberi illegally received compensation for these efforts because he failed to register as a foreign agent of the Bahraini citizen.
Zuberi also converted to his own benefit money invested in U.S. Cares, a company established to export humanitarian items to Iran, according to the information. In 2013 and 2014, investors put approximately $7 million into U.S. Cares, but Zuberi used over 90 percent of the investor funds for his personal benefit – to purchase real estate, pay down mortgages, remodel properties, invest in brokerage accounts, donate $250,000 to a non-profit organization established by a former high-ranking elected official, and pay down personal credit card debt, according to court documents.
In 2014, Zuberi entered into a contract with the government of Sri Lanka to rehabilitate Sri Lanka’s image in the United States, which had suffered as a result of allegations of persecution of the country’s minority Tamil population. Zuberi promised to make substantial expenditures on lobbying efforts, legal expenses and media buys, which prompted Sri Lanka to agree to pay Zuberi a total of $8.5 million over the course of six months in 2014. According to court documents, days after Sri Lanka made an initial payment of $3.5 million, Zuberi transferred $1.6 million into his personal brokerage accounts and used another $1.5 million to purchase real estate.
The information alleges that Sri Lanka wired a total of $6.5 million pursuant to the contract, and Zuberi directed more than $5.65 million of that money to the benefit of himself and his spouse. Zuberi paid less than $850,000 to lobbyists, public relations firms and law firms, and certain subcontractors did not receive full payment after Zuberi falsely claimed that Sri Lanka had not provided sufficient funds to pay invoices, according to the information.
In relation to the FARA charge in the information, Zuberi agreed to plead guilty to submitting false registration statements in which he concealed his direction of the Sri Lanka lobbying effort, as well as the millions of dollars he received.
In relation to the tax charge in the information, Zuberi agreed to plead guilty to one count of tax evasion for failing to report on his 2014 tax return millions of dollars in income he received from Sri Lanka. While the 2014 income tax return claimed income of $558,233, Zuberi failed to report more than $5.65 million he received in relation to the Sri Lanka lobbying effort. Zuberi admits in his plea agreement that his tax evasion over the course of four years – 2012 through 2015 – caused tax losses of at least $3.5 million and as much as $9.5 million.
In relation to the campaign finance charge, Zuberi agreed to plead guilty to a charge of violating the Federal Election Campaign Act in 2015 by making conduit contributions in the names of other people, reimbursing contributions made by others, and being reimbursed for contributions he made. In his plea agreement, Zuberi admits that over a five-year period – 2012 through 2016 – he made or solicited more than $250,000 in illegal campaign contributions.
Zuberi is expected to make his initial appearance in this case in United States District Court on October 30.
This matter is being investigated by the FBI and IRS Criminal Investigation.
This case is being prosecuted by Assistant United States Attorneys Daniel J. O’Brien and Elisa Fernandez of the Public Corruption and Civil Rights Section with support from the Counterintelligence and Export Control Section of the National Security Division.
California Man with Lengthy Criminal Record Sentenced to 17 ½ Years in Federal Prison for Iowa Meth and Firearm ConvictionsRead the Press Release
A man who conspired to distribute methamphetamine and illegally possessed a firearm was sentenced October 18, 2019, in federal court in Sioux City.
Robinson Nguyen, 38, from Selma, California, pled guilty on June 3, 2019, to one count of conspiring to distribute methamphetamine; one count of possessing with intent to distribute methamphetamine; and one count of illegally possessing a firearm. Nguyen was previously convicted of at least four felony offenses in California, ranging from thefts to possession of a controlled substance to possession of ammunition by a prohibited person.
At the plea hearing, Nguyen admitted that from about September 2017 through July 2018, he was involved in a conspiracy that distributed at least 500 grams of actual (pure) methamphetamine. Evidence showed that Nguyen transported ½ to ¾ pounds of methamphetamine a number of times from California to Colorado then Sioux City, Iowa for distribution and later had his girlfriend transport ¼ pound of methamphetamine by bus. Nguyen and others in the conspiracy intended to distribute this methamphetamine to another person. Law enforcement later seized a 9mm pistol from a search of the house were Nguyen resided. Nguyen admitted he possessed the firearm for protection.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Nguyen remains in custody of the United States Marshal until he can be transported to a federal prison. Nguyen was sentenced to 210 months’ imprisonment. He must also serve a four year term of supervised release following any imprisonment. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-4089. Follow us on Twitter @USAO_NDIA.
California Man Convicted by A Jury of Cocaine Conspiracy Going to Prison for 27 YearsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Raul Everado Ledesma Abarca, 36, of San Diego, California, who was convicted following a jury trial of: conspiring to possess with intent to distribute and distribute five kilograms or more of cocaine; possessing with intent to distribute five kilograms or more of cocaine; and maintaining a drug-involved premises, was sentenced to serve 324 months in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorneys Michael J. Adler and Jeremiah E. Lenihan, who handled the prosecution of the case, stated that between September 2014 and September 2016, the defendant, along with co-defendant Armando Ernesto Abarca and others, conspired to possess and distribute cocaine. The defendants rented a storage unit in Amherst, NY, to store the cocaine. The unit was rented on the same day that a 104 kilogram shipment of cocaine arrived in Buffalo. A total of 43 kilograms of cocaine were discovered after the unit was purchased at an auction due to delinquent rent payments. The fingerprints of both the defendant and Armando Abarca were discovered on items in the unit.
Prior to the discovery of the cocaine in Amherst, the Abarcas were investigated for cocaine trafficking in Ohio. The Government presented evidence at trial of the seizure of 55 kilograms of cocaine in Dayton, OH, in a vehicle registered to a Buffalo, NY address. Approximately half of the 55 kilograms was intended for the defendant’s distribution operation based out of Columbus, OH.
Armando Ernesto Abarca, 22, of Modesto, California, who was previously convicted of conspiring to possess with intent to distribute and distribute five kilograms or more of cocaine, was previously sentenced to serve 168 months in prison.
“These drug dealers operated a nationwide drug trafficking organization,” noted U.S. Attorney Kennedy. “Dedicated and talented law enforcement professionals working here in Western New York, assisted by law enforcement officers from across the country, were able to build a strong case and see to it that these individuals will not have the opportunity to peddle their poison in Western New Yorkers—or anywhere else in America—for years to come.”
The sentencing is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Internal Revenue Service, Criminal Investigations Division, under the direction of Special Agent-in-Charge Jonathan D. Larsen, New York Field Office; and the Amherst Police Department, under the direction of Chief John Askey. Additional assistance was provided by ICE-HSI in Los Angeles, California; DEA in Columbus, OH; and DEA in Dayton, OH.
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Brooklyn Man Convicted of Home Invasion Armed Robbery ConspiracyRead the Press Release
A federal jury in Brooklyn returned a guilty verdict today against Devone Jefferys for Hobbs Act robbery conspiracy, attempted robbery of heroin and cash and unlawful use and possession of a firearm. The verdict followed a six-day trial before United States District Judge Kiyo A. Matsumoto. When sentenced, Jefferys faces a mandatory minimum sentence of five years in prison and a maximum of life imprisonment.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, announced the verdict.
“For years, the defendant was on the run and in hiding, trying to avoid paying the consequences for the violence and terror he inflicted. But with today’s verdict, justice has caught up to him,” stated United States Attorney Donoghue. Mr. Donoghue thanked the Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Field Division, for their outstanding work in the case.
On July 31, 2015, Jefferys and a co-conspirator, posing as NYPD police officers, entered an apartment in Williamsburg, Brooklyn, to steal heroin and cash from a drug dealer who lived there with his mother. They pointed their guns at those present in the apartment – including a pregnant woman and the drug dealer’s sister – ordered them to lie on the floor and bound them with duct tape. Jefferys then ransacked the apartment searching for drugs and cash, with his and co-conspirator’s guns fixed on the victims’ heads and the pregnant woman’s stomach. When Jefferys learned that the drug dealer’s sister had thrown a bag of drugs out a window, he forcibly took her to an outside alleyway, where he assaulted her after he was unable to locate the heroin. Jefferys was captured on multiple video cameras in the apartment building.
At the trial, Jefferys’ former girlfriend testified that he told her that he was a fugitive from the police, described the robbery and lived in her car to avoid capture.
This case was brought as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorneys’ 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.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Nathan Reilly and Ryan Harris are in charge of the prosecution.
The Defendant:
DEVONE JEFFERYS (also known as “Moneybags”)
Age: 27
Brooklyn, New YorkE.D.N.Y. Docket No. 18-CR-359 (KAM)
Bellows Falls Drug Dealer Sentenced to 102 MONTHSRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Christopher Paige, Jr., 38, of Bellows Falls, was sentenced yesterday to a 102-month prison term following his guilty pleas to one count of possessing with intent to distribute more than 40 grams of a substance containing fentanyl, and one count of being a felon in possession of a firearm. United States District Judge William K. Sessions III also imposed a four-year term of supervised release to follow Paige's incarceration.
Court records show that Paige admitted to distributing a substance containing fentanyl in late 2017 out of his Bellow Falls residence. During a December 2017 search of that residence, police found more than 2,500 individual dosage bags containing fentanyl, as well as a loaded Bushmaster brand assault style rifle within arm's reach of where Paige slept. Paige's criminal history included felony convictions for heroin possession, obstruction of justice, as well as federal firearm offenses.
The case was investigated by the Vermont State Police, the Federal Bureau of Investigation, and the Bellows Falls Police Department. U.S. Attorney Christina E. Nolan commended the collaborative effort of federal, state, and local law enforcement, stating: “Paige, a Bellows Falls recidivist offender, trafficked enough fentanyl to kill thousands of people, while possessing an assault rifle. This egregious conduct will not be tolerated and will be met with serious consequences, as this outcome exemplifies. We remain acutely aware of the recent increase in overdose deaths in areas of southeast Vermont and of the suffering in those communities and across the state. Our charging priorities will so reflect.”
Paige was represented by Michael Desautels and Gregory Mertz. The prosecutor was Assistant United States Attorney Michael Drescher.
Additional Charges Filed Against University Athletic Officials and Others in College Admissions CaseRead the Press Release
BOSTON – A federal grand jury in the District of Massachusetts returned a superseding indictment bringing additional charges against seven university athletic officials and others previously charged in the college admissions case today.
Gordon Ernst, Donna Heinel, Jorge Salcedo, Mikaela Sanford, Jovan Vavic, Niki Williams and William Ferguson have been charged with conspiring to commit mail and wire fraud, and honest services mail and wire fraud, in connection with the previously charged scheme to accept bribes and engage in other forms of fraud to facilitate cheating on standardized admissions tests and to secure the admission of students to elite universities by designating them as purported athletic recruits or members of other favored admissions categories. Six of the defendants—Ernst, Heinel, Salcedo, Sanford, Vavic and Williams—also face substantive wire and honest services wire fraud charges in connection with the scheme.
In addition, three defendants, Ernst, Heinel, and Salcedo, face new charges of conspiring to commit federal programs bribery by soliciting and accepting bribes to facilitate the admission of students to the universities where they worked: Georgetown University, the University of Southern California, and The University of California – Los Angeles. Ernst is also charged with substantive counts of federal programs bribery and money laundering.
The defendants, who were arrested in March 2018, were previously charged with racketeering conspiracy in connection with the scheme.
Arraignment dates have not yet been scheduled. Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
The charge of racketeering conspiracy provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater and restitution. The charge of conspiracy to commit mail and wire fraud and honest services mail and wire fraud provides for a maximum sentence of 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of conspiracy to commit federal programs bribery provides for a sentence of up to five years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of mail and wire fraud and honest services mail and wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater and restitution. The charge of money laundering provides for a sentence of up to 10 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of conspiracy to commit mail fraud and honest services mail fraud and federal programs bribery provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. The Department of Education, Office of Inspector General provided assistance with the investigation. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright and Kristen A. Kearney of Lelling’s Securities and Financial Fraud Unit are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Additional Charges Filed Against Parents in College Admissions CaseRead the Press Release
BOSTON – A grand jury in the District of Massachusetts has returned additional charges against 11 of the 15 parents charged in the college admissions case.
The new charges in the third superseding indictment allege that 11 defendants – Gamal Abdelaziz, Diane Blake, Todd Blake, Mossimo Giannulli, Elisabeth Kimmell, Lori Loughlin, William McGlashan, Jr., Marci Palatella, John Wilson, Homayoun Zadeh, and Robert Zangrillo – conspired to commit federal program bribery by bribing employees of the University of Southern California (USC) to facilitate their children’s admission. In exchange for the bribes, employees of the university allegedly designated the defendants’ children as athletic recruits – with little or no regard for their athletic abilities – or as members of other favored admissions categories.
In addition to the conspiracy count, one defendant, John Wilson of Lynnfield, Mass., is charged with two counts of substantive federal programs bribery in connection with his efforts to use bribes to secure his children’s admission to Harvard University and Stanford University. As alleged in the indictment, USC, Harvard and Stanford all receive more than $10,000 annually in grants, subsidies or other forms of federal assistance.
Today’s indictment also includes additional charges of wire fraud and honest services wire fraud against four defendants—Joey Chen, William McGlashan, Jr., John Wilson and Robert Zangrillo—in connection with the previously charged scheme to use bribery and other forms of fraud to obtain falsified standardized test scores and admission to elite colleges and universities as purported athletic recruits or members of other favored admissions categories.
The defendants, all of whom were arrested in March 2019, were previously charged with conspiring with William “Rick” Singer and others, to bribe SAT and ACT exam administrators to allow a test taker to secretly take college entrance exams in place of their children, or to correct the children’s answers after they had taken the exams. The defendants were also previously charged with conspiring to launder the bribes and other payments in furtherance of the fraud by funneling them through Singer’s purported charity and his for-profit corporation, as well as by transferring money into the United States, from outside the United States, for the purpose of promoting the fraud scheme.
Arraignment dates have not yet been scheduled. Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
The charge of conspiracy to commit mail and wire fraud and honest services mail and wire fraud provides for a maximum sentence of 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of conspiracy to commit federal programs bribery provides for a sentence of up to five years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of conspiracy to commit money laundering provides for a maximum sentence of 20 years in prison, three years of supervised release, and a fine of $500,000 or twice the value of the property involved in the money laundering. The charge of wire fraud and honest services wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of federal programs bribery provides for a sentence of up to 10 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. The Department of Education, Office of Inspector General provided assistance with the investigation. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright and Kristen A. Kearney of Lelling’s Securities and Financial Fraud Unit are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Monday 21 October 2019
Youth safety and support is the focus of four U.S. DOJ grantsRead the Press Release
Seattle – About $2 million in U.S. Department of Justice grant funding will flow into Washington State to bolster youth safety, combat gang activity and reduce racial disparities in the juvenile criminal justice system, announced U.S. Attorney Brian T. Moran.
“These grants support efforts to intervene early and stop youth crime and violence before it damages our community,” said U.S. Attorney Moran. “The grant to Seattle Public Schools may even save lives by stopping school violence before a tragedy happens.”
Seattle Public Schools was awarded $496,945 as part of the STOP School Violence Prevention and Mental Health Training Program. The funding will provide students and teachers with training to recognize and respond quickly to violence and to prevent acts of violence. The district will develop threat assessments and crisis intervention teams and an anonymous reporting system for threats, including those from people with mental health issues.
The Washington State Department of Social and Health Services received $872,897 for its work to reduce racial and ethnic disparities in the Washington State juvenile justice system. DSHS’ Office of Juvenile Justice is partnering with the Center for Study and Advancement of Justice Effectiveness (a joint operation of the University of Washington and Washington State University) and the Washington State Center for Court research. One goal is to build more culturally responsive and effective services into pre-court diversion.
The Children and Youth Justice Center received a $500,000 grant for its program to reduce gang related criminal activity. The grant monies will be used to expand and enhance gang prevention, gang resistance and intervention programs, and to expand community awareness about gang violence and its negative effects.
Finally, King County received $171,026 in funding for the newly constructed Children and Family Justice Center. The funding will focus on recruiting quality juvenile detention officers for the new facility.
For additional information on individual grants, please contact the recipient organizations. A fact sheet from DOJ is attached to this release.
department_of_justice_invests_about_85.pdfYonkers Man Charged with Attempted Murder of A Special Deputy United States MarshalRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), Michael Greco, the United States Marshal for the Southern District of New York (“USMS”), and John Mueller, Commissioner of the Yonkers Police Department (“YPD”), announced charges today against MICHAEL CABON for attempting to murder a federal law enforcement officer. The defendant was presented in White Plains federal court this afternoon before United States Magistrate Judge Lisa Margaret Smith.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, the defendant brazenly used deadly force against law enforcement seeking to effectuate a routine warrant. This incident is a solemn reminder of the dangers our law enforcement partners face each and every day. We will work tirelessly to ensure that those who put them in harm’s way face justice.”
FBI Assistant Director William F. Sweeney Jr. said: “People in this country break the law every day, and as law enforcement we are charged with investigating those crimes and holding those criminal accountable. We assume the physical risks when carrying out court ordered actions, but no one should lose their lives while those actions take place. I’m relieved this situation did not turn deadly which is a credit to the professionalism of the arresting officers and agents who were on scene.”
United States Marshal Michael Greco said: “This incident involving members of the U.S. Marshals NY/NJ Regional Fugitive Task Force, highlights the inherent dangers often facing our deputies and task force officers in the performance of their duties. Nevertheless, these courageous and dedicated law enforcement officers continue to uphold their sworn duty in the pursuit of justice without hesitation.”
Yonkers Police Commissioner John Mueller said: “Every officer knows the risks and dangers inherent to law enforcement work but still goes out every day into the world to do the complex and difficult job of keeping us safe. When an officer is assaulted, it is an attack upon our community, our residents, our society, and will be met with swift justice. I am grateful and relieved that the victim will recover and extremely proud of him and the officers at scene; despite being faced with deadly force, they took the defendant into custody and delivered him into the criminal justice system where he must now answer for his acts.”
As alleged in the Complaint[1]:
On October 18, 2019, a joint operation between the U.S. Marshals New York/New Jersey Regional Fugitive Task Force and local law enforcement sought to arrest CABON on a bench warrant issued by a Yonkers City Court Judge. In the course of that arrest, CABON wielded knives in both hands and attempted to stab arresting officers, including a Special Deputy United States Marshal (“Victim-1”). CABON successfully stabbed Victim-1 before being restrained and arrested by other officers. Victim-1 was immediately rushed to a nearby hospital and treated for his injuries.
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CABON, 29, of Yonkers, New York, is charged with one count of attempting to murder a federal officer and one count of using a deadly weapon to interfere with the performance of a federal officer’s official duties. Each count carries a maximum sentence of 20 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.
Mr. Berman praised the outstanding investigative work of the FBI’s Westchester County Safe Streets Task Force, which comprises Special Agents and Task Force Officers from the FBI, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, U.S. Probation, New York State Police, New York City Police Department, Westchester County Police Department, Westchester County District Attorney’s Office, Yonkers Police Department, Mount Vernon Police Department, Peekskill Police Department, Greenburgh Police Department and New Rochelle Police Department. He also thanked the Westchester County District Attorney’s Office for their assistance.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorney Shiva H. Logarajah is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the descriptions of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Woman imprisoned after attempt to smuggle meth with son in carRead the Press Release
LAREDO, Texas – A 26-year old Mexican native from Monterrey, Nuevo Leon, Mexico, has been ordered to federal prison following her conviction for conspiring with intent to distribute more than 40 kilograms of meth, announced U.S. Attorney Ryan K. Patrick. Claudia Janeth Ozuna-Celaya pleaded guilty July 3.
Today, U.S. District Judge Marina Garcia Marmolejo ordered Ozuna-Celaya to serve 87 months of imprisonment. Not a U.S. citizen, she is expected to face removal proceedings following the sentence. During the hearing, the court heard evidence regarding how the meth was hidden inside her car’s tires which required the use of buzz saws and welding torches to extract the bundles. In handing down the sentence, the court noted Ozuna-Celaya brought poison into the United States and made matters worse by including her child in wrongdoing. Judge Marmolejo admonished her in that there was no excuse or justification for her minor son to be with her when she committed this crime.
On March 15, Ozuna-Celaya drove a white Audi with Nuevo Leon license plates into the inspection area of the Border Patrol (BP) checkpoint near Interstate Highway 35 north of Laredo. At the time, her 4-year-old son was present in the vehicle.
During the immigration inspection, a service K-9 alerted to the possibility of concealed narcotics, and authorities immediately referred her to secondary inspection. There, they scanned the vehicle and discovered several abnormalities in the vehicle’s tires. Authorities subsequently searched the tires where they found multiple bundles totaling approximately 49.5 kilograms of meth with a purity of 99%. It is valued at approximately $871,000.
Upon questioning, she claimed to be the owner of the Audi and travelled regularly to San Antonio to go shopping with her cousin. A further investigation confirmed that cousin was not aware she was coming to visit her.
She has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation with assistance from BP. Assistant U.S. Attorney Francisco J. Rodriguez is prosecuting the case.
Wilkes-Barre Man Sentenced to over Seven Years’ Imprisonment for Drug TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that District Judge Robert D. Mariani sentenced Luis Enrique Martinez-Ortiz, age 27, of Wilkes-Barre, to 87 months’ imprisonment on October 16, 2019, for his role in a heroin, cocaine, and crack trafficking organization.
According to United States Attorney David J. Freed, Martinez-Ortiz, also known as “Chino,” pled guilty to conspiracy to distribute and possess with intent to distribute heroin, powder cocaine, and cocaine base, or “crack.” Martinez-Ortiz admitted responsibility for more than 100 grams of heroin, more than 500 grams of cocaine, and more than 28 grams of crack (100 grams of heroin is the equivalent of approximately 4,000 individual doses of heroin). The sentence was enhanced because the Court found that Martinez-Ortiz was either aware that a co-conspirator possessed a firearm or possessed a firearm himself, and because he maintained a premises, an apartment in Avoca, for the purposes of manufacturing or distributing controlled substances.
This indictment was the result of a year-long investigation, in part driven by multiple wiretaps, conducted by the U.S. Drug Enforcement Administration (DEA), Wilkes-Barre Police Department, and Pennsylvania State Police. Assistant U.S. Attorney Sean A. Camoni prosecuted 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.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Wetzel County woman admits to selling meth near high schoolRead the Press Release
WHEELING, WEST VIRGINIA – Jaclyn Starkey, of New Martinsville, West Virginia, has admitted to selling methamphetamine, U.S. Attorney Bill Powell announced.
Starkey, age 27, pled guilty to one count of “Distribution of Methamphetamine in Proximity to a Protected Location.” Starkey admitted to selling methamphetamine near Magnolia High School in Wetzel County in April 2019.
Starkey faces up to 40 years incarceration and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Robert H. McWilliams, Jr. is prosecuting the case on behalf of the government. The Marshall County Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the West Virginia State Police investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
West Virginian Business Owners Plead Guilty to Failing to Pay Employment Taxes and Individual Income TaxesRead the Press Release
Two West Virginian business owners pleaded guilty today to conspiring to defraud the United States regarding their employment taxes and individual income taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Michael B. Stuart for the Southern District of West Virginia.
According to court documents, Russell and Karen Rucker, a married couple, operated Rucker, Billups and Fowler Inc. (RBF), an insurance agency located in Huntington, West Virginia. Russell Rucker was the president of RBF and since approximately late 2013, Karen Rucker served as a financial officer. Between September 2015 and September 2018, the Ruckers withheld approximately $143,226 in payroll taxes from the wages of RBF’s employees, which they did not pay over to the Internal Revenue Service (IRS) despite their obligation to do so. Instead, the Ruckers diverted portions of the withheld funds for their own personal benefit. For instance, from 2014 through 2016 the Ruckers continued to pay themselves over $500,000 in salary. In response to IRS collection efforts and in an attempt to conceal funds from the IRS, the Ruckers deposited money into the bank account of another individual. The Ruckers also attempted to evade IRS levies by using a series of bank accounts that they did not disclose to the IRS and by paying many of their bills, including their mortgage, in cash.
The Ruckers also attempted to evade payment of $114,911 of Russell Rucker’s 2001, 2002, and 2005 individual income taxes by disguising paychecks issued to Russell Rucker as non-taxable “note proceeds.” Additionally, the Ruckers have failed to file their individual income tax returns and RBF’s corporate returns for 2014 through 2017. The intended tax loss caused to the IRS by their conduct is more than $250,000.
Sentencing has been scheduled for Jan. 27, 2020. The Ruckers each face a statutory maximum sentence of five years in prison. They also face monetary penalties, a period of supervised release, and restitution.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Stuart commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Alexander Effendi and Lauren Archer of the Tax Division, who are prosecuting this case.
United States Attorney Benjamin C. Glassman announces resignationRead the Press Release
CINCINNATI – United States Attorney Benjamin C. Glassman, 44, of Greater Cincinnati, has announced his resignation effective 3pm on Nov. 1.
Glassman, a graduate of Rice University and Harvard Law School, joined the U.S. Attorney’s Office in 2005. After becoming Acting United States Attorney in March 2016, he has served as United States Attorney for the Southern District of Ohio since his appointment to that position by Attorney General Loretta Lynch in October 2016. He previously served as First Assistant United States Attorney, Acting Criminal Chief and Appellate Chief.
The office increased its total productivity every year during Glassman’s tenure. A chart of some of the most significant or noteworthy cases pursued under his leadership is attached.
These include the United States’ first-ever indictment and extradition of an alleged Chinese intelligence officer for attempted economic espionage, a prosecution for racketeering of the Ohio clique of MS-13 that has resulted in a life sentence for its leader, one of only two criminal cases in the nation against an opioid wholesaler and its executives, prosecutions arising out of several of the most significant financial frauds in the history of Ohio and West Virginia, the first-ever federal carfentanil-trafficking case, criminal civil rights prosecutions for hate crimes and other offenses under color of state law, crimes of public corruption, and far-reaching investigations and prosecutions for exploitation of the most vulnerable.
The U.S. Attorney’s Office also devoted increased resources and attention to federal civil rights laws, and has led significant civil litigation to enforce the guarantees of the Fair Housing Act and the Americans with Disabilities Act.
Glassman sought to address the opioid crisis and violent crime not only by devoting resources to those areas but also by building and leveraging partnerships among law enforcement at all levels of government.
The office developed task-force approaches to combatting opioid distribution, appointed prosecutors specifically for enforcement in that area, and partnered with the Criminal Division of the Department of Justice to multiply effectiveness.
Beginning in 2016, the office created violent crime working groups among law enforcement and prosecuting agencies to share intelligence and analytics, and to strategize the most effective ways to address those individuals responsible for a disproportionate share of violence.
Prevention efforts in these areas included outreach to middle and high school populations regarding opioid addiction and the student pledge against gun violence.
The district also completed call-in programs for high-risk probationers in all three seats of court and worked with the United States Probation Office to build programs to improve the reentry of citizens completing prison sentences.
Current data show that both fatal overdoses and violent crime in the district are declining.
During his tenure as United States Attorney, Glassman served on the Terrorism and National Security Subcommittee of the Attorney General’s Advisory Committee, as well as the Department of Justice’s Heroin & Opioid, Health Care Fraud, Domestic Terrorism, and MS-13 Working Groups. He is a member of the interagency Domestic Terrorism Executive Committee and currently chairs the executive board of the Ohio High Intensity Drug Trafficking Area. Glassman also personally litigated cases at both the trial and appellate levels and was the first in the last twenty years to try a criminal case in this district to verdict while serving as U.S. Attorney.
Law enforcement and community partners offered the following statements:
United States Marshal Pete Tobin
“Ben Glassman has a tremendous energy and enthusiasm for his work. He has been quick to publicly recognize the great work of law enforcement personnel in many agencies. He has always taken time to talk with any of us when we needed a word. Always with a smile, always with kindness, always a gentleman, he has created a special atmosphere among all of us in law enforcement within our district. He will be sorely missed by all of us.”
Dayton Police Chief Richard Biehl
“I have known Ben Glassman for nearly two decades and have been impressed with his career progression as an Assistant U.S. Attorney and most recently as the U.S Attorney for the Southern District of Ohio. In the past few years, the Dayton Police Department has worked closely with Ben Glassman and his prosecutorial team on enforcement strategies to address the opioid epidemic crisis in the Miami Valley that involved key arrests and prosecutions, helping to curtail the illicit drug market that had led to the largest number of overdose deaths regionally and nationally that I have witnessed in more than 40 years of law enforcement and community safety service. The recent federal charges filed against nineteen individuals for drug offenses related to the trafficking of fentanyl, cocaine, methamphetamine and heroin involving a regional drug ring is just one example. Also, U.S Attorney Glassman and his staff provided significant investigative support via expedited search warrants to examine digital evidence related to the suspect in the Oregon District mass shooting.
I have always been impressed with Ben’s professionalism, dedication to public service, and support of local, state and federal law enforcement partners in the pursuit of public safety and community justice. We will miss his great skill and dedication that has been of such great service to our community and the Miami Valley region!”
DEA Operational Support Assistant Administrator Tim Plancon
“Mr. Glassman has been a staunch ally of DEA’s efforts as we work to combat drug trafficking in Southern Ohio and the violence and devastation that inevitably follows. He is a tremendous prosecutor who has always focused on public safety and safeguarding Ohians.”
DEA Special Agent in Charge Keith Martin
“Under U.S. Attorney Glassman’s leadership this past summer, we saw the indictment of two executives of a now defunct wholesale drug distributor that was flooding the Appalachian region with millions of units of opioids. This historical step of holding a distributor accountable is just one example of his commitment to justice.”
IRS-CID Special Agent in Charge, Chicago Field Office, Kathy A. Enstrom
“From the moment Ben Glassman became the U.S. Attorney for Southern Ohio, he was dedicated to ensuring the most egregious criminals were investigated and brought to justice. The support that IRS Criminal Investigation received from Ben and his office demonstrated his commitment to ensuring tax and money laundering criminals were brought to justice. It was an honor and pleasure to work alongside Ben during my time as Special Agent in Charge of the Cincinnati Field Office.”
Cincinnati Police Chief Eliot K. Isaac
“U.S. Attorney Benjamin Glassman and the entire staff of the Southern District of Ohio have been amazing partners with the Cincinnati Police Department during Mr. Glassman’s tenure and we greatly appreciate his leadership. Under Attorney Glassman's leadership there have been several critical cases that have led to the successful prosecution of priority offenders who were causing significant harm to our community through gun violence and illicit drug trafficking. It has been a privilege to work with Attorney Glassman and we look forward to our continued collaboration with the Southern District of Ohio.”
Kim Jacobs, former Columbus Police Chief
"U.S. Attorney Ben Glassman epitomizes professionalism and integrity. He put country and community first and ensured that violent criminals were investigated and charged in accordance wih the law and justice. He was humble and effective at the same time."
Washintgon County Sheriff Larry Mincks
"It has been my pleasure to work with Ben for the last several years. Ben was the only U.S. Attorney who frequently visited Washington County and assisted us in criminal investigations. He utilized the assets of his office to prosecute criminals violating federal statutes who otherwise would have gone untouched. It was satisfying to know the federal government had an interest in our small community."
Jackie Congedo, Director, Jewish Community Relations Council of Cincinnati
“U.S. Attorney Glassman has been a true partner in the work of securing all faith communities in southwest Ohio. In the Jewish community, we are particularly grateful for his courageous, thorough, and precedent-setting prosecution of hate crime—sending a strong and urgent message that crime motivated by bias will not be tolerated. During a time when incidents of antisemitism and other forms of hate are on the rise, U.S. Attorney Glassman’s commitment to the cause of justice for targeted communities has been nothing short of critical, and we are truly grateful for his service.”
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Significant casesU.S. Attorney Announced Latest Assistant U.S. Attorney HiresRead the Press Release
Below please find for new Assistant U.S. Attorneys hired and placed in this office. Thank you.
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Brian Dunn came to the office after nearly 11 years as a deputy district attorney at the Denver District Attorney’s Office. Before that, he was in private practice at firms in Chicago and New York. He earned his law degree from the Georgetown University Law Center. Brian is assigned to the office’s Violent Crime and Immigration Enforcement Section of the Criminal Division.
Cyrus Chung came to the office after serving as an Assistant District Attorney in the Middlesex County District Attorney’s Office in Massachusetts. Prior to that he clerked for 1st Circuit Court of Appeals Judge Bruce M. Selya and Judge Richard J. Holwell of the Southern District of New York, and also spent 2 years in private practice. Cyrus earned his law degree from Harvard Law School. He is assigned to the office’s Narcotics Section of the Criminal Division.
R. Josh Player joined the office after 22 years of legal practice. During that time he was a Senior Attorney/Unit Chief for the Salt Lake County District Attorney’s Office, Assistant Attorney General for the State of Utah, a solo practitioner, and clerked for a State District Court Judge. Josh earned his law degree from Seattle University School of Law. He is assigned to the Durango Branch Office and focuses on Indian Country prosecutions and serves as the office’s trial liason.
Laura McNabb came to the office after 3 years in a private practice. She clerked for Colorado Supreme Court Chief Justice Nancy E. Rice and 10th Circuit U.S. Court of Appeals Judge David. M. Ebel. Laura earned her B.A. from the University of Denver and her J.D. from the University of Colorado Law School. Laura is assigned to the office’s Civil Division.
U.S. Attorney Andrew Murray to Testify Before U.S. Senate Judiciary SubcommitteeRead the Press Release
CHARLOTTE, N.C. – On October 22, 2019, United States Attorney Andrew Murray will testify at a hearing before the Senate Judiciary Subcommittee on Sanctuary Jurisdictions: The Impact on Public Safety,” scheduled to begin at 10:00 a.m.
Can be viewed via this link: https://www.judiciary.senate.gov/meetings/sanctuary-jurisdictions-the-impact-on-public-safety-and-victims
Tyler County man sentenced for firearms violationRead the Press Release
WHEELING, WEST VIRGINIA – Michael John Maisey, of Sistersville, West Virginia, was sentenced today to 37 months incarceration for a firearms charge, United States Attorney Bill Powell announced.
Maisey, age 49, pled guilty to one count of “Unlawful Possession of a Firearm” in May 2019. Maisey, being prohibited from possessing a firearm, admitted to having a 9mm caliber pistol in July 2018 in Tyler County.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Martinsville Police Department investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Two Lower Brule Men Sentenced for AssaultRead the Press Release
United States Attorney Ron Parsons announced that two Lower Brule, South Dakota, men convicted of Assault by Striking, Beating, or Wounding were sentenced by U.S. Magistrate Judge Mark A. Moreno.
Carlton Felicia, age 20, was sentenced on October 15, 2019, and Grant Whitney, age 21, previously sentenced on September 9, 2019, were both sentenced to 2 years of probation, and a special assessment to the Federal Crime Victims Fund in the amount of $25.
Felicia and Whitney were indicted by a federal grand jury on February 13, 2019. Felicia pled guilty on October 15, 2019, and Whitney pled guilty on July 19, 2019.
The convictions stemmed from an incident on July 1, 2018, when Felicia and Whitney were socializing with an individual and at some point in the evening, an argument began between the three of them. Felicia and Whitney struck and beat the victim about the head and face.
This case was investigated by the Bureau of Indian Affairs, Lower Brule Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Felicia and Whitney were both released following their sentencing hearings to begin serving their terms of probation.
Trucker Sentenced for Stealing Load of MeatRead the Press Release
KANSAS CITY, KAN. – A California trucker working for a Kansas freight brokerage was sentenced today to 15 months in federal prison for stealing a load of meat valued at more than $160,000, U.S. Attorney Stephen McAllister said.
Gegham Avetisyan, 37, Valley Village, Calif., pleaded guilty to one count of wire fraud. Avetisyan contracted with a trucking freight brokerage business in Olathe to deliver a load of meat to three locations in California. He faxed documents to the company in which he used the name Robert Ivanov. He picked up the meat at a packing plant in Omaha, but never delivered it.
McAllister commended the FBI and Assistant U.S. Attorney Chris Oakley for their work on the case.
Three defendants plead guilty to federal charges in sex trafficking ringRead the Press Release
ALBUQUERQUE, N.M. – Three defendants pleaded guilty on Oct. 15 in federal court to charges of sex trafficking and coercion and enticement to engage in prostitution.
Adonis Baker, 35, of Albuquerque, pleaded guilty to sex trafficking of a child. He admitted meeting “Jane Doe 6,” a teen between the ages of 15 and 18, while in Phoenix between Aug. 15, 2017, and Aug. 17, 2017. Baker convinced “Jane Doe 6” to get into his car by offering her drugs. Baker then drove her to Albuquerque, and took her to his apartment where he told her she was to engage in commercial sex acts. Baker faces a sentence of 14 years in prison based on the terms of his plea agreement.
Inkosi Grandberry, 38, of Albuquerque, pleaded guilty to transportation for prostitution by coercion and enticement. Grandberry admitted in a plea agreement to committing this offense on June 3, 2015. Grandberry aided and abetted Adonis Baker in persuading “Jane Doe 1” to travel by automobile from Phoenix to Albuquerque for prostitution. Grandberry paid for a hotel in Phoenix as part of the offense. Grandberry faces up to 20 years in prison.
Leotha Williams, 58, of Memphis, Tennessee, also pleaded guilty to transportation for prostitution by coercion and enticement. Williams admitted in a plea agreement to approaching “Jane Doe 2” with Adonis Baker at a bus stop in Albuquerque between June 2016 and September 2016. Williams and Baker instructed “Jane Doe 2” to get into a vehicle with them. They then traveled to Colorado Springs, Colorado, where Williams ensured “Jane Doe 2” engaged in prostitution. Williams faces 36 months to 60 months in prison under the terms of the plea agreement. The defendants will be sentenced at a later date to be scheduled by the court.
Homeland Security Investigations investigated this case with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Albuquerque Police Department, and the Bernalillo County Sheriff’s Office. Assistant U.S. Attorneys Letitia Simms and Joseph M. Spindle are prosecuting the case.
Texas Man Who Orchestrated Email Phishing Attack on Los Angeles Superior Court Sentenced to over 12 Years in Federal PrisonRead the Press Release
LOS ANGELES – A Texas man who was found guilty of hacking into the Los Angeles Superior Court (LASC) computer system, using the system to send approximately 2 million malicious phishing emails, and fraudulently obtaining hundreds of credit card numbers was sentenced this afternoon to 145 months in federal prison.
Oriyomi Sadiq Aloba, 33, of Katy, Texas, was sentenced by United States District Judge R. Gary Klausner, who also ordered Aloba to pay $47,479 in restitution.
In July 2017, Aloba and his co-conspirators targeted the LASC for a phishing attack. During the attack, the email account of one court employee was compromised and used to send phishing emails to co-workers purporting to be from the file-hosting service Dropbox. The email contained a link to a bogus website that asked for the users’ LASC email addresses and passwords. Thousands of court employees received the Dropbox email, and hundreds disclosed their email credentials to the attacker. The compromised email accounts then were used to send the roughly 2 million phishing emails.
These additional phishing emails purported to be from American Express, Wells Fargo, and other companies. Hyperlinks in the fraudulent emails led victims to a webpage that asked for their banking login credentials, personal identifying information, and credit card information. The link for the fake American Express website used source code that designated Aloba’s email account as the delivery address for the information that the victims input into the fake website.
After linking Aloba to the attack, investigators executed a search warrant at Aloba’s residence, which revealed a thumb drive in a toilet, a damaged iPhone in a bathroom sink, and a laptop computer with a smashed screen that was smeared with fresh blood. Nearby, agents found a broken mug, which apparently was used to smash the laptop computer, and observed blood on Aloba’s hands.
Following a three-day jury trial in July, Aloba was found guilty of one count of conspiracy to commit wire fraud, 15 counts of wire fraud, one count of attempted wire fraud, one count of unauthorized impairment of a protected computer, five counts of unauthorized access to a protected computer to obtain information, and four counts of aggravated identity theft. Aloba was remanded into custody after the verdicts were read.
Aloba’s targeting of the “largest court system in the world… merits special attention,” prosecutors wrote in a sentencing memorandum filed with the court. Aloba’s “conduct resulted in a substantial disruption to the administration of the LASC, including taking hundreds of employees offline for hours, at a minimum, and possibly days. His conduct diverted substantial resources from the critical tasks LASC personnel undertake daily, resulting in over $45,000 in losses to the LASC. And perhaps most importantly, he compromised the integrity of the LASC, which is a court system that thousands of people rely on to administer justice.”
Aloba was initially charged by the Los Angeles County District Attorney, but the matter was referred to the United States Attorney’s Office for federal prosecution.
A co-defendant, Robert Charles Nicholson, who used the online moniker “Million$Menace” and used stolen credit card information to make purchases, a 28-year-old resident of Brooklyn, New York, pleaded guilty in June to one count of conspiracy to commit wire fraud. Nicholson is scheduled to be sentenced by Judge Klausner on November 4. Three other defendants allegedly hired by Aloba to create the “phishing kits” remain at large outside the United States.
This matter was investigated by the Federal Bureau of Investigation and the Los Angeles County District Attorney’s Office.
This case is being prosecuted by Assistant United States Attorney Ryan White, Chief of the Cyber and Intellectual Property Crimes Section.
Texas Man Sentenced for Possession of Credit Card Counterfeiting DeviceRead the Press Release
CHARLESTON, W.Va. – A Texas man was sentenced to federal prison for possession of credit card counterfeiting devices and altered credit cards, announced United States Attorney Mike Stuart. Defendant Tofyk Ali Oro, 32, was sentenced to 14 months in prison and 3 years supervised release for possession of a device to counterfeit credit cards.
“Oro intended to victimize many individuals,” said United States Attorney Mike Stuart. “As a result of the excellent work of U.S. Postal Inspectors and U.S. Secret Service Agents, Oro will be going to federal prison instead of carrying out his fraudulent plans.”
Oro previously admitted that on November 30, 2018 he shipped 55 credit cards and the device equipment from Austin, Texas to Charleston, West Virginia. He further admitted the intent with the 55 cards was to defraud individuals whose accounts were linked to those cards.
The United States Secret Service and the United States Postal Inspection Service conducted the investigation. United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney Chris Arthur handled the prosecution.
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Staten Island Doctor Pleads Guilty to Illegally Distributing OxycodoneRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that NKANGA NKANGA, a Staten Island physician, pled guilty to illegally distributing oxycodone and other controlled substances. NKANGA pled guilty before United States Magistrate Judge Debra Freeman to narcotics conspiracy and distribution charges. NKANGA will be sentenced by United States District Judge Jesse M. Furman, to whom the case is assigned.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As he admitted today, Nkanga Nkanga violated the law and the oath of his profession by knowingly selling prescriptions for dangerous opioids to people who did not need them. Indeed, he sold prescriptions to people he had reason to believe were addicted to these potentially lethal drugs. Now he awaits sentencing for his role as a drug dealer masquerading as a doctor.”
According to the allegations in the Indictment to which NKANGA pled guilty, public court filings, and statements made in court:
From at least 2013 until late 2018, in exchange for cash payments, NKANGA wrote hundreds of oxycodone and other controlled substances prescriptions for patients he knew had no legitimate medical need for them, some of whom displayed visible signs of drug addiction. NKANGA wrote prescriptions for these highly addictive substances without conducting any physical examination, or seeing patients in an examination room. NKANGA wrote prescriptions in the names of patients who did not even visit his medical office. On one occasion, for instance, NKANGA asked a patient, “[H]ow many people are you representing today,” and then wrote prescriptions in the names of multiple people, even though three were not present. NKANGA regularly prescribed over 100 oxycodone pills per patient per month until mid-2018, when he reduced all patients’ monthly allotment, telling one patient he was “very worried” about scrutiny from law enforcement.
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NKANGA, 66, of Staten Island, New York, pled guilty to one count of conspiracy to distribute controlled substances and four counts of distribution of controlled substances. Each count carries a maximum sentence of 20 years in prison. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Sentencing before Judge Furman is scheduled for January 30, 2020, at 3:30 p.m.
Mr. Berman praised the outstanding investigative work of the Drug Enforcement Administration’s (“DEA”) New York Tactical Diversion Squad, the U.S. Department of Health and Human Services-Office of the Inspector General, and the New York City Police Department (“NYPD”). DEA’s Tactical Diversion Squad (Group TDS-NY) comprises agents and officers from the DEA, the NYPD, the New York State Police, New York State Department of Financial Services, and New York City Department of Investigation.
This case is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Nicolas Roos, Jacob R. Fiddelman, and Cecilia E. Vogel are in charge of the prosecution.