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25 November 2019
Buffalo Man Sentenced for Distributing Child PornographyRead 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 Atif Ullah, 30, of Buffalo, NY, who was convicted of distribution of child pornography, was sentenced to serve 144 months in prison and 30 years supervised release, by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Aaron Mango, who handled the case, stated that on March 6, 2018, the defendant distributed a video that he knew constituted child pornography using his cellular telephone.
On August 16, 2018, law enforcement officers executed a federal search warrant at the Ullah’s residence and seized two cellular telephones, each containing images of child pornography. An examination of the telephones revealed a total of 33 images of child pornography. Eight of the images were produced by the defendant between June 22 and August 16, 2018. The minor depicted in the images was seven years old at the time of the production and was related to the defendant.
The sentencing is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
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Black Out Squad Member of the Gangster Disciples Receives Effective 33-Year Sentence for RacketeeringRead the Press Release
Memphis, TN – Gerald Eugene Hampton, 34, a/k/a "G-30" has been sentenced to 240 months in federal prison for conspiracy to participate in racketeering activity. U.S. Attorney D. Michael Dunavant announced the sentence today.
According to information presented in court, the Gangster Disciples is a highly-organized criminal street gang with nationwide reach. In addition to Tennessee, the gang reportedly operates in more than 35 states. The Gangster Disciples were organized into different positions, including board members and governor-of-governors who each controlled geographic regions; governors, assistant governors, chief enforcers and chief of security for each state or regions within the state where the Gangster Disciples were active; and coordinators and leaders within each local group.
Hampton admitted he was a member of the black-out squad/security team. The superseding indictment set out that the black-out squad/security team members were responsible for carrying out acts involving attempted murder, assault, intimidation of witnesses and victims, and physical "disciplines" at the direction of senior Gangster Disciple members.
According to the superseding indictment, the defendants named in the RICO conspiracy committed attempted murders; robberies; assaults; distribution of large quantities of cocaine, crack and marijuana; firearms trafficking; kidnappings; intimidation of witnesses and victims; extortion; obstruction of justice; and other offenses in furtherance of the Gangster Disciples criminal enterprise and to promote and enhance the members’ position within the gang.
On June 13, 2019, Hampton pled guilty to conspiracy to participate in racketeering activity. On November 21, 2019, U.S. District Court Judge John T. Fowlkes Jr. sentenced Hampton to 240 months in federal prison, consecutive to state convictions for which he received a 10-year sentence for aggravated robbery and a 3-year sentence for felony evading arrest and possession of marijuana-3rd offense, both out of Madison County, as well as 3 years of federal supervised release, for an overall effective sentence of 33 years in state and federal custody.
United States 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 in the Gangster Disciples organization. ‘G-30’ will now serve more than 3o years in prison for his violent crimes. The message from this case is clear: No matter what your role is in the conspiracy, or what your position, title, or gang nickname is - if you are a member of a criminal gang, your days are numbered and there will be a reckoning."
This prosecution was brought as part of the Justice Department’s Organized Crime and Drug Enforcement Task Force (OCDETF) program. OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations, and to diminish the violence and other criminal activity associated with the drug trade. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, money laundering, and violent organizations.
This case was investigated by the FBI, ATF, Jackson Police Department Gang Enforcement Team, Memphis Police Department, 28th Judicial District West Tennessee Drug Task force, 26th, 25th, and 30th Judicial District Attorney General Offices, Sheriff's Offices for Shelby, Tipton, DeSoto, Madison, and Fayette Counties, and the Police Departments of Bartlett, Germantown and Columbia, TN.
Assistant U.S. Attorneys Beth Boswell and Annie Christoff of the Western District of Tennessee and Trial Attorney Shauna Hale of the DOJ Criminal Division Organized Crime and Gang Section prosecuted this case on behalf of the government.
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Attorney General Recognizes South Dakota Victim Witness Coordinator for Exceptional Service in Indian CountryRead the Press Release
WASHINGTON, D.C. – Marlys Big Eagle, Victim Witness Coordinator for the United States Attorney’s Office for the District of South Dakota, was one of only 295 department employees nationwide recognized by Attorney General William P. Barr at the 67th Annual Attorney General’s Awards Ceremony, held recently at Constitution Hall in Washington, D.C. The Attorney General’s Award is the most coveted and prestigious national award given to members of the United States Department of Justice. This annual ceremony recognizes employees and other individuals who have demonstrated exceptional achievements, leadership, and service to the Department of Justice and the American people. Big Eagle was recognized by Attorney General Barr for her exceptional service in Indian Country. U.S. Attorney Ron Parsons attended the ceremony at Constitution Hall with Big Eagle.
“Our greatest strength in our fight for justice is our people – the thousands of men and women who have dedicated their careers, often at great personal sacrifice, to working for justice in America,” said Attorney General William P. Barr. “As we reflect on the contributions of each of the individuals we honor today, we should hold them up as examples of excellence that continue to inspire our own commitment, and also as reminders of the professionalism and the qualities exhibited throughout the Department.”
“Our friend and colleague Marlys Big Eagle is incredibly deserving of this prestigious honor,” said U.S. Attorney Parsons. “She is a truly exceptional person and, as this award confirms, one of the brightest lights and most powerful advocates for victim rights and the welfare of those living in Native American communities in the entire Department of Justice.”
Ms. Big Eagle, an enrolled member of the Hunkpati Oyate Crow Creek Sioux (Tribe), has provided victim services for the District of South Dakota since 1998 and is the principal coordinator supervising two additional victim-witness providers. In the coordinator capacity, Ms. Big Eagle supervises all aspects of the office’s victim witness program, including providing services, coordinating trial victims and witnesses, and conducting training for all of the office’s personnel.
Ms. Big Eagle’s leadership has long been recognized by Federal, State, and Tribal prosecutors, law enforcement officers, other victim assistance providers, and Tribal leaders. Her 21-years of service with the Department of Justice has resulted in an exponential improvement in the delivery of crucial services to Indian Country victims. Her unique perspective as an enrolled Tribe member and her wealth of knowledge and experience has made a decisively positive impact in the lives of thousands of Native American women and children who have had to make the complex journey through the Federal criminal justice system.
Separately, as part of the EOUSA Mentorship program, Ms. Big Eagle has provided national instruction, leadership, and services to numerous other districts when called upon to assist with federal prosecutions in Indian Country. Because of her widely acknowledged expertise, she has mentored, trained and started Indian Country victim assistance programs in Nebraska, Alaska, Hawaii, Idaho, Virginia, and Utah. Ms. Big Eagle is regularly called upon by other victim advocates from across the country for guidance on Indian Country victim-witness issues and how these issues interplay with complicated Department of Justice policy and regulations.
Ms. Big Eagle has also developed and produced written and video training material to provide guidance to children and adult victims and witnesses in the criminal justice process. This material includes the “Tell the Truth” children's video and the adult court orientation video “A Journey through the Federal Justice System,” both of which are used extensively by prosecutors to prepare victims for the stressful process of being a witness in a federal trial. In 2018, Ms. Big Eagle volunteered for the Hurricane relief efforts as part of FEMA’s request to the Department Of Justice for Surge Capacity assistance. Most recently, Ms. Big Eagle helped to develop and appears in an educational awareness video addressing sex trafficking in Indian Country. Entitled “REACH to End Sex Trafficking in Native American Communities.” The video was released in February 2019 and is being distributed nationwide.
In addition to her home district responsibilities, Ms. Big Eagle served on the EOUSA’s Rapid Response Victim Assistance Team. In this capacity, she has lent her extraordinary expertise working with victims in several large-scale federal prosecutions nationwide. Those efforts include spending weeks in Charleston, S.C., working with the deceased victims’ surviving family members in the United States v. Dylan Roof federal hate-crime prosecution; working with the deceased victims’ family members in the United States v. Whitey Bulger racketeering and murder prosecution in Boston; and working with elderly victims of a large-scale Jamaican lottery scheme targeting victims across the upper Midwest.
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23 November 2019
Roberts County Man Sentenced to Nearly 5 Years for Aggravated Assault of GirlfriendRead the Press Release
United States Attorney Ron Parsons announced that a Roberts County, South Dakota, man convicted of Assault with a Dangerous Weapon was sentenced on November 18, 2019, by U.S. District Judge Charles B. Kornmann.
John Matthew Pilcher, age 49, was sentenced to 59 months of federal custody, to be followed by 3 years of supervised release. He was ordered to pay $100 to the Federal Crime Victims Fund.
According to court documents, on November 10, 2018, Pilcher assaulted the victim with a dangerous weapon, namely, a knife, with the intent to do bodily harm. Pilcher and the victim were in a dating relationship. At some point on the night of November 10, they got into a verbal disagreement. In the midst of their argument, Pilcher pulled out a knife and stabbed the victim in the neck. Defendant acted with specific intent to assault the victim with the knife.
The victim was transported to the local hospital and then to Sanford Hospital in Fargo, North Dakota, where she underwent surgery to receive critical care for life-threatening trauma caused by the stabbing. The victim’s neck arteries and veins were lacerated, including a very small cut to her jugular vein.
The investigation was conducted by the Federal Bureau of Investigation and the Bureau of Indian Affairs – Office of Justice Services. Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.
Pilcher was remanded to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced to 17.5 Years for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted by virtue of a guilty plea to Conspiracy to Distribute a Controlled Substance was sentenced on November 15, 2019, by Chief Judge Jeffrey L. Viken.
Sebastian Hoff, age 29, was sentenced to 17.5 years in federal prison, followed by 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
From May 2017 through August 2017, co-conspirator Dana Faulkner transported and arranged transportation of 15-45 kilograms of methamphetamine to South Dakota from Colorado. Hoff was one of the multiple sub-distributors who dealt Faulkner’s methamphetamine in the Rapid City area.
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 investigated by the Unified Narcotics Enforcement Team (UNET) and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. UNET is comprised of law enforcement from the Pennington County Sheriff’s Office, the Rapid City Police Department, South Dakota Division of Criminal Investigation, and the South Dakota National Guard. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case. Multiple co-conspirators have already been sentenced and one more remains pending sentencing.
Hoff was immediately turned over to the custody of the U.S. Marshals Service.
Pukwana Man Charged with Abusive Sexual Contact of a ChildRead the Press Release
United States Attorney Ron Parsons announced that a Pukwana, South Dakota, man has been indicted by a federal grand jury for Abusive Sexual Contact of a Child.
Michael Dean Johnson, age 27, was indicted on November 13, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on November 15, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $250,000 fine, a mandatory minimum of 5 years, and up to life, of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between January 2015 and January 2017, Johnson knowingly engaged in and attempted to engage in sexual contact with a child who had not attained the age of 12.
The charge is merely an accusation and Johnson is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Johnson was released on bond pending trial. A trial date has not been set.
Oacoma Man Sentenced for Felon in Possession of a FirearmRead the Press Release
United States Attorney Ron Parsons announced that an Oacoma, South Dakota, man convicted of Felon in Possession of a Firearm was sentenced on November 19, 2019, by U.S. District Judge Roberto A. Lange.
Micah Brown, age 27, was sentenced to 37 months in federal prison, followed by 3 years of supervised release, forfeiture of a firearm, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Brown was indicted by a federal grand jury on September 11, 2018. He pled guilty on August 7, 2019.
The conviction stemmed from an incident on July 1, 2018, when law enforcement responded to a call of an alleged assault occurring in Fort Thompson, South Dakota, involving Brown and his ex-girlfriend. Upon arrival, law enforcement observed a shotgun in the front passenger compartment of Brown’s vehicle. Brown, who has been convicted of a crime punishable by imprisonment for term exceeding one year, is prohibited from being in possession of a firearm.
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 investigated by the Bureau of Indian Affairs, Crow Creek Agency and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Brown was immediately turned over to the custody of the U.S. Marshals Service.
North Dakota Woman Sentenced for TheftRead the Press Release
United States Attorney Ron Parsons announced that a Fort Yates, North Dakota, woman convicted of Theft by an Employee of an Indian Gaming Establishment was sentenced on November 18, 2019, by U.S. District Judge Charles B. Kornmann.
Candace Crow Ghost, age 42, was sentenced to 160 days in federal prison, followed by 24 months of supervised release, restitution in the amount of $5,300.83, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Crow Ghost was indicted by a federal grand jury on March 12, 2019. She pled guilty on August 27, 2019.
Between December 2016 and March 2017, Crow Ghost was the marketing director for the Grand River Casino, located on the Standing Rock Sioux Indian Reservation. Crow Ghost developed a scheme whereby she would obtain prescription pain pills by adjusting points on individual players club rewards cards to pay for the drugs she was receiving. After adjusting the points, Crow Ghost would prepare vouchers and help the individuals redeem their illegally obtained points for cash. Crow Ghost would also comp rooms and meals to the individuals involved in the scheme. During the course of her employment, Crow Ghost added 426,000 points to various players’ accounts and comped over $1,000 in rooms and meals, resulting in a total loss to the Grand River Casino of $5,300.83.
The case was brought as part of The Guardians Project, a federal law enforcement initiative to coordinate efforts between participating agencies, to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those who are responsible for adversely affecting those living in South Dakota’s Indian country communities. The Guardians Project is another step of federal law enforcement’s on-going efforts to increase engagement, coordination, and positive action on behalf of tribal communities.
Led by the U.S. Attorney’s Office, the participating agencies include: Federal Bureau of Investigation; the Offices of Inspector General for the Departments of Interior, Health and Human Services, Social Security Administration, Agriculture, Transportation, Education, Justice, and Housing and Urban Development; Internal Revenue Service, Criminal Investigation Division; U.S. Postal Inspector Service; U.S. Postal Service, Office of Inspector General.
For additional information about The Guardians Project, please contact the U.S. Attorney’s Office at (605) 330-4400. To report a suspected crime, please contact law enforcement at the federal agency’s locally listed telephone number.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Crow Ghost was immediately turned over to the custody of the U.S. Marshals Service.
Fort Thompson Woman Charged with Assault and Evidence TamperingRead the Press Release
United States Attorney Ron Parsons announced that a Fort Thompson, South Dakota, woman has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Evidence Tampering.
Lisa Walking Bull, age 47, was indicted on November 13, 2019. She appeared before U.S. Magistrate Judge Mark A. Moreno on November 22, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 20 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on August 22, 2019, Walking Bull assaulted an individual with a bat with the intent to do bodily harm and then further altered, destroyed, and concealed the bat with the intent to impair its integrity and availability for use in a criminal proceeding.
The charges are merely accusations and Walking Bull is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Walking Bull was released on bond pending trial. A trial date has not been set.
Eagle Butte Man Charged with Assaulting a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer.
Ian Cook, age 35, was indicted on November 13, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on November 15, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 8 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on October 22, 2019, Cook did forcibly assault, resist, oppose, impede, intimidate, and interfere with a federal officer while the officer was in the performance of his official duties and said contact did involve physical contact.
The charge is merely an accusation and Cook is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Cook was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Agency Village Man Sentenced to 3 Years for Aggravated Assault of GirlfriendRead the Press Release
United States Attorney Ron Parsons announced that an Agency Village, South Dakota, man convicted of Assault of a Partner by Strangulation was sentenced on November 18, 2019, by U.S. District Judge Charles B. Kornmann.
Joshua John Max, age 36, was sentenced to 36 months of federal custody, to be followed by 3 years of supervised release. He was ordered to pay $100 to the Federal Crime Victims Fund.
According to court documents, on April 25, 2015, Max unlawfully assaulted an intimate partner and dating partner by strangling and suffocating, and attempting to do so. Max and the victim were in a dating relationship. On April 25, 2015, Max tried to call the victim all morning, but did not reach her. Her doors were locked, but Max entered the house by climbing through a window. Max became angry after looking at her cellular telephone and seeing something on her Facebook account that bothered him. Max grabbed the victim, pushed her down on the bed, and choked her, causing bodily injuries to her neck and throat.
The investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.
Max was remanded to the custody of the U.S. Marshals Service.
22 November 2019
Winter Park Man Sentenced to Life Imprisonment for Distribution of Child Sex Abuse Images and Enticement of A Minor to Produce Child PornographyRead the Press Release
Orlando, Florida – U.S. District Judge Paul E. Byron has sentenced Eric Bales (31, Winter Park) to life imprisonment for the enticement of a minor to produce child pornography and 20 years’ imprisonment for the distribution of child sex abuse imagery, to be served consecutively. Bales had pleaded guilty on May 22, 2019.
According to testimony and court documents in August 2018, the Royal Canadian Mounted Police referred an internet-based case lead to Homeland Security Investigations in Orlando, who then executed a federal search warrant on Bales’s residence. HSI agents arrested Bales the same day. The investigation revealed that Bales was using an internet chat room to arrange a meeting with another minor the same morning that HSI had arrested him.
In 2009, Bales was the subject of a state child enticement investigation. He avoided prosecution but, in 2014, was arrested for lewd and lascivious battery on a 14-year-old child. Bales was convicted of willful child abuse and spent two and a half years in prison. After Bales was released from prison in October 2017, he immediately began viewing and collecting images and videos of children being sexually exploited. Bales collected and distributed the explicit imagery over internet using peer-to-peer applications. He also elicited the production of pornographic images from a 16-year-old girl, and shared those images via messaging applications with other minors.
“This serial child predator used social media to spread vile images across the digital spectrum,” said HSI Orlando Assistant Special Agent in Charge David J. Pezzutti. “This investigation highlights HSI’s authority to work with international and local partners, ultimately making our communities a safer place.”
This case was investigated by Homeland Security Investigations. It was prosecuted by Special Assistant United States Attorney Brandon Bayliss, on assignment from the Office of Principal Legal Advisor, U.S. Immigration and Customs Enforcement.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Wilburton Man Sentenced to 30 Months for Possession of Firearm, AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Danny Joe Patrick, age 51, of Wilburton, Oklahoma, was sentenced to 30 months’ imprisonment and 3 years of supervised release for Felon In Possession Of Firearm & Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). The charges arose from an investigation by the Latimer County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Indictment alleged that on April 5, 2019, in the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, knowingly possessed in and affecting commerce, a firearm and ammunition which had been shipped and transported in interstate commerce.
United States Attorney Brian J. Kuester said, “Enforcement of federal firearms statutes prohibiting felons from possessing firearms and ammunition is one way we help local law enforcement agencies and district attorneys combat violent crime. One of DOJ’s top priorities is combating and reducing violent crime, particularly crimes involving guns. I am thankful we have the opportunity to work alongside our state, local, tribal, and federal partners to make a positive impact in the Eastern District.”
This case is consistent with the principles of Project Guardian, the Department of Justice's signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department's past successful programs to reduce gun violence. A key principle of Project Guardian is enhancing coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes to ensure that federal resources are directed at the criminals posing the greatest threat to our communities. For more information on Project Guardian, see the Attorney General’s memorandum at: https://www.justice.gov/ag/project-guardian-memo-2019/download.
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Dean Burris represented the United States.Westborough Man Arrested for Trafficking in Contraband Smokeless TobaccoRead the Press Release
BOSTON – A Westborough man was arrested today for trafficking in contraband smokeless tobacco.
Muhammad Mushtaq Balaparaya, 58, was charged in an indictment unsealed today with two counts of trafficking in contraband smokeless tobacco. According to the indictment, between December 2014 and October 2016, and again between July 2017 and April 2018, Balaparaya transported more than 500 units of contraband smokeless tobacco in violation of federal law.
The charging statute provides for a sentence of up to five years in prison, three years of supervised release, a fine of $250,000,\ 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; Kelly Brandy, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement. Assistant U.S. Attorneys Greg A. Friedholm and John T. Mulcahy of Lelling’s Worcester Branch Office are prosecuting the case.
Waterbury Man Sentenced to More Than 6 Years in Federal Prison for Distributing HeroinRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that TERRANCE SAUNDERS, 33, of Waterbury, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 79 months of imprisonment, followed by three years of supervised release, for distributing heroin.
This matter stems from a statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on March 23, 2016, the Shelton Police Department and emergency medical personnel responded to a suspected overdose at a Shelton residence. At the residence, medical personnel pronounced a 45-year-old female victim deceased. Investigators collected drug and non-drug evidence, including folds containing suspected heroin, and the victim’s cell phone.
Analysis of the victim’s cell phone revealed numerous contacts, including multiple text messages on March 22, 2016, between the victim and Saunders’ cell phone in which the victim arranged to acquire drugs. Investigators subsequently conducted controlled purchases of heroin and fentanyl from Saunders and his associate, Rashad Johnson, by contacting Saunders’ phone.
Saunders was arrested on a federal criminal complaint on December 27, 2018. On June 24, 2019, he pleaded guilty to one count of possession with intent to distribute, and distribution of, heroin.
Saunders, who was released on a $100,000 bond prior to sentencing, was remanded to the custody of the U.S. Marshal Service to begin serving his sentence.
Johnson, of Waterbury, pleaded guilty on June 19, 2019. On October 15, he was sentenced to 18 months of imprisonment and two years of supervised release.
This investigation was conducted by the Drug Enforcement Administration’s New Haven Task Force and the Shelton, Ansonia and Monroe Police Departments. The case was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Vermont Man Indicted for Hate CrimeRead the Press Release
Stuart Kurt Rollins, 58, was indicted this week for two violations of 42 U.S.C. § 3631 for interfering with housing rights after he repeatedly threatened and intimidated a family because members of the family are Hispanic, announced Assistant Attorney General Eric Dreiband of the Department of Justice’s Civil Rights Division, U.S. Attorney for the District of Vermont Christina E. Nolan, and FBI, Albany Division Special Agent in Charge James N. Hendricks.
According to the two-count indictment, on July 29, 2019, Rollins threatened and intimidated members of a family, including three minors, because of their race and national origin and because they live in a home across the street from Rollins. Rollins shouted derogatory comments about the family’s perceived national origin, told family members to go back to their country, and threatened both to burn down the family’s home and to set family members on fire.
Rollins appeared in the District Court of Vermont in Burlington today. He remains in custody pending a detention hearing scheduled for Wednesday, November 27th.
Each count carries a maximum penalty of 10 years of imprisonment. An indictment is merely an accusation and the defendant is presumed innocent unless proven guilty.
This case was investigated by the FBI Albany Division, Burlington Resident Agency, with the support of the Barre City Police Department. It is being prosecuted by Assistant United States Attorney Julia Torti, Civil Division Chief, District of Vermont and Trial Attorney Olimpia Michel of the Department of Justice’s Civil Rights Division.
Vallejo Man Sentenced to over 3 Years in Prison for Possessing a Machine GunRead the Press Release
SACRAMENTO, Calif. — Jake Edward Howland, 23, of Vallejo, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to three years and 10 months in prison for unlawfully possessing a machine gun, U.S. Attorney McGregor W. Scott announced.
According to court records, in Feb. 2019, Solano County Sheriff’s deputies responded to a call reporting that someone was shooting a fully automatic weapon on the levee in the unincorporated area of Solano County, near Dixon. When deputies arrived, they spoke with a group of witnesses, several of whom saw Howland firing the pistol. When the deputies searched Howland, they found an empty .40-caliber high-capacity magazine in his pocket. They also found a .40‑caliber pistol nearby that had been modified to function as a machine gun. This was the gun Howland was firing moments earlier. Howland pleaded guilty on Aug. 21.
This case was the product of an investigation by the Solano County Sheriff’s Office, with assistance from the FBI’s Solano County Violent Crimes Task Force and the Solano County District Attorney’s Office.
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. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
Two St. Paul Men Charged with Illegal Possession of FirearmsRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment charging DERWIN IDELL MOORE, 33, and KEVIN KAREEM WHITE, 36, with one count each of possession of a firearm by a convicted felon. The defendants will be arraigned on November 26, 2019, before Magistrate Judge Becky R. Thorson in U.S. District Court in St. Paul, Minnesota.
According to the allegations in the indictment, on August 11, 2019, MOORE and WHITE were found to be in possession of firearms. MOORE possessed a Canik model TP9DA 9mm semi-automatic pistol and WHITE possessed a Smith & Wesson model M&P Shield 9mm semi-automatic pistol. Because MOORE and WHITE have prior felony convictions, they are prohibited under federal law from possessing firearms at any time.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Paul Police Department. This case was brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state, and local law enforcement to combat violent crime. This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws.
Assistant U.S. Attorney Thomas Calhoun-Lopez is prosecuting the case.
Defendant Information:
DERWIN IDELL MOORE, 33
St. Paul, Minn.
Charges:
- Felon in possession of a firearm, 1 count
KEVIN KAREEM WHITE, 36
St. Paul, Minn.
Charges:
- Felon in possession of a firearm, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Two Narcotic Smugglers Charged After Being Stopped with 1,355 pounds of Marijuana on VesselRead the Press Release
St. Thomas, USVI – Centeno A. Hansel-Andres and Cristian Valencia-Mendoza were charged with Conspiracy to Possess and Possession of a Controlled Substance with Intent to Distribute on Board a Vessel Subject to the Jurisdiction of the United States, United States Attorney Gretchen C.F. Shappert announced.
The court filings allege that defendants were on board a go-fast style vessel that was intercepted by a United States Coast Guard (USCG) cutter while on routine patrol. The USCG first sighted the go-fast vessel on October 18, 2019, at approximately 45 nautical miles north of Malpelo Island, Columbia. The vessel did not have any display indicating its nationality. The USCG boarded the vessel and successfully seized 21 bales of marijuana, consisting of approximately 1,355 pounds, and arrested the two individuals on board.
This case is being investigated by the United States Coast Guard and the Virgin Islands Drug Enforcement Agency. It is being prosecuted by Assistant United States Attorneys Adam Sleeper and Donna Rainwater.
United States Attorney Shappert reminds the public that an indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty.
Two Charged with Murder of Federal WitnessRead the Press Release
LOUISVILLE, Ky. – Two people have been charged with the murder of a witness aiding a federal investigation, announced United States Attorney Russell Coleman.
Bobby Lee Smith, 46, of Louisville, Kentucky, and Cynthia Allen, 31, of Louisville, Kentucky, were both charged in a three count indictment by a federal Grand Jury sitting in Louisville on Wednesday, November 20, 2019.
“Our system only works when the public shares information with law enforcement,” said U.S. Attorney Russell Coleman “And the rule of law requires that United States protects witnesses to crimes.”
According to the indictment, on or about May 8, 2016, in Jefferson County, Kentucky, the defendants aided and abetted each other, and did kill A.P., with the intent to retaliate for the attendance and testimony given by A.P. to a Grand Jury proceeding on or about October 8, 2014 in the Western District of Kentucky.
The defendants are also charged with tampering with a witness by killing. Smith and Allen aided and abetted each other, killing A.P., with the intent to prevent the attendance and testimony of A.P. in an official proceeding, the trial of case number 3:15-CR-00058, scheduled for November 28, 2016 with the intent to prevent the communication by A.P. to a law enforcement officer or judge of the United States relating to the commission of a federal offense.
The Grand Jury also charged the defendants, with tampering with a witness by killing. On or about May 8, 2016, Smith and Allen aided and abetted each other, killing A.P., a person assisting a federal criminal investigation.
If convicted by a jury, the defendants face no less than life imprisonment or the death penalty.
The case is being prosecuted by Assistant United States Attorneys Lettricea Jefferson-Webb and Robert Bonar. The case is being investigated by the Federal Bureau of Investigation (FBI) and the Louisville Metro Police Department (LMPD).
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Twenty-Four Member Crystal Methamphetamine Distribution Operation Totally DismantledRead the Press Release
The final four traffickers were convicted by a jury after ten days of trial.
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that a 24-member drug trafficking operation has been totally dismantled, following a federal jury’s conviction of the final four defendants yesterday. Darrell Lee-Lamont Summers II, 28, Daryl Kevin Cannon, 27, Timothy Roy Mason, 39, and Tremain Lamar Braxton, 31, all from Benton Harbor, were convicted of conspiring to distribute methamphetamine and related crimes after a ten-day trial before the Honorable Robert J. Jonker, Chief United States District Judge. The men face up to life in prison when they are sentenced next year, and mandatory minimum terms of ten years, except Braxton, who faces a fifteen-year minimum because of a prior drug conviction.
Braxton was arrested in August 2018 during the multijurisdictional takedown of the methamphetamine ring. The other three defendants were added to the case in April 2019. With these last four convictions, all twenty-four defendants have been convicted in the cases charged as a result of the investigation, nineteen by guilty plea and five at trial. Richard Farmer, Sr., was convicted by a jury in May.
The evidence at trial demonstrated that Summers and Cannon brought or sent, in total, hundreds of thousands of dollars to suppliers in California and Arizona, who subsequently shipped hundreds of pounds of methamphetamine back to Michigan through the mail to them and others in the organization, including Raymond Stovall. The cash deliveries and shipments took place between 2016 and 2018. Mason began buying pounds of methamphetamine from Stovall in Kalamazoo and graduated to travelling to Arizona to order methamphetamine directly from a supplier, which he shipped to addresses he controlled in Erie, Pennsylvania. Braxton sold single pounds of methamphetamine for Stovall and drove Stovall and others to drug deals. The organization largely distributed the methamphetamine in southwest Michigan, including in greater Kalamazoo. Law enforcement intercepted three packages during the investigation, which in total contained approximately 14 pounds of crystal methamphetamine, between 96% and 99% pure. At the time of the interceptions, those 14 pounds alone were worth more than $40,000 on the southwest border from which they shipped and nearly $100,000 wholesale in Michigan.
"Crystal methamphetamine has flooded West Michigan," said U.S. Attorney Birge. "Federal, state and local law enforcement agencies are acutely aware of the challenge and working together to respond. With this operation dismantled and the suppliers and local dealers removed from the community, we see the effectiveness of our cooperative efforts. But there is much more work to
be done."
"DEA and law enforcement partners are working together to safeguard Michigan communities against dangerous and lethal drugs," said Keith Martin, Special Agent in Charge of the Detroit Field Division of the DEA. "Organizations whose sole purpose is making a profit by spreading poisons will be dismantled and brought to justice."
"Dismantling drug trafficking organizations like this one is a critical part of the FBI’s mission and is essential to keeping our communities safe from the violence that often accompanies these groups," said Steven M. D’Antuono, Special Agent in Charge of the FBI Detroit Division. "The combined efforts of the FBI, DEA, SWET, and KVET once again demonstrate the importance of combining the strengths, resources and expertise of federal and local agencies to fight these drug-trafficking networks."
This case was investigated by the FBI, the DEA, the U.S. Postal Inspection Service, the Kalamazoo Valley Enforcement Team, and the Southwest Enforcement Team (a component of the Michigan State Police), who were assisted by the U.S. Marshals Service, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Michigan Department of Corrections, the Portage Police Department, the Kalamazoo Department of Public Safety, the Kalamazoo County Sheriff’s Office, the Berrien County Sheriff’s Office, the St. Joseph County Sheriff’s Office, and TSA Investigations – Detroit Field Office. The case was tried by Assistant U.S. Attorneys Justin M. Presant and Jonathan Roth.
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Texas Man Sentenced to 30 Years for Traveling to Engage in Sexual Activity with MinorsRead the Press Release
LEXINGTON, Ky. — Gregory Lee Hruby, 65, of Brazoria, Texas, was sentenced on Friday to 30 years in federal prison, by U.S. District Court Judge Gregory F. Van Tatenhove, for crossing state lines to engage in sexual acts with minors who had not attained the age of 12 and for possessing visual depictions of minors engaging in sexually explicit conduct.
According to trial testimony, Hruby communicated with an undercover law enforcement agent, who responded to a post that Hruby had placed on the Whisper Application. In the communications, the undercover officer portrayed herself as the mother of 9 and 11 year-old daughters, who was willing to permit Hruby to engage in sex with them. Hruby engaged in text and telephone conversations with the undercover officer, indicating his interest in engaging in sexual intercourse with the fictitious minors. Hruby was arrested after law enforcement officers met him at the airport in Lexington, on October 19, 2018, following his arrival on a flight from Houston, Texas. Hruby also had child pornography images on his phone.
Hruby was previously convicted of all three charges in July 2019.
Under federal law, Hruby must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for the remainder of his life.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Steve Igyarto, Special Agent in Charge, Department of Homeland Security – Homeland Security Investigations (DHS-HSI); and Kentucky Attorney General Andy Beshear jointly announced the sentencing.
The investigation was conducted by DHS-HSI and the Cyber Crimes Branch of the Office of the Attorney General of Kentucky. The United States was represented by Assistant U.S. Attorneys David A. Marye and Tashena A. Fannin.
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Texas Man Charged for His Role in Operating Sham Medical Reimbursement Account ProgramRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that that JOSEPH A. BORINO, age 62, a resident of Spring Hill, Texas was charged on November 21, 2019 by a federal grand jury in an eight-count Indictment for his role in the marketing and operation of what claimed to be a Medical Reimbursement Program, Classic 105. In particular, BORINO were charged with conspiracy to defraud the United States and to make false statements and representations in connection with a multiple employer welfare arrangement (MEWA), in violation of Title 18, United States Code, Section 371 (Count 1); making false statements in connection with a MEWA, in violation of Title 29, United States Code, Sections 1131(b) and 1149 (Counts 2-6), and wire fraud, in violation of Title 18, United States Code, Section 1343 (Counts 7-8).
According to the Indictment, The Total Financial Group (TTFG) was a Louisiana business incorporated by Denis and Donna Joachim with the Louisiana Secretary of State on about January 6, 2005, that was most recently located at 406 N. Florida Street, Covington, Louisiana. BORINO was employed as the National Executive Marketing Director for TTFG. In that capacity, BORINO supervised, trained, and instructed TTFG’s regional sales personnel. BORINO also represented himself to be Denis Joachim’s “right hand man” in the operation of TTFG.
TTFG and its owners, with BORINO and others, created and marketed a Medical Reimbursement Account program called “Classic 105.” Classic 105 claimed to be a multiple employer welfare arrangement that was marketed to employers as a supplemental benefits plan for their employees to reimburse them for medical expenses such as co-pays and deductibles; participants in Classic 105 were required to have a primary health insurance plan unrelated to and in addition to Classic 105. Classic 105 claimed to be comprised of several components: a tax-exempt contribution of between $1,000 and $1,600 per month made by an employee (which reduced the employee’s taxable income), a loan from a lender back to the employee to make up for the contribution, an insurance policy payable to the lender at the employee’s death to repay the loan, and fees paid by the employee and the employer directly to TTFG. TTFG told prospective employer-clients that participants would never have to make out-of-pocket payments to repay the loan and that as a result of the tax savings, most participants would receive an increase in their net take home pay. TTFG’s marketing program told prospective employer-clients that the contributions would be stored in a unique account for each employee-participant and that any money not used by the end of each calendar year would revert to TTFG. TTFG also charged employee-participants a fee of between $150 and $250 per month and the employer a fee of five percent of each employee’s contribution amount. At its peak, over 350 employer-clients and 4,400 employee-participants nationwide were enrolled in TTFG’s Classic 105 program.
According to the Indictment, TTFG never obtained a single loan or insurance policy for the Classic 105 program, and participants never made any actual contributions. Moreover, as early as September 2014, BORINO, Denis Joachim, and others all participated in email exchanges that discussed that there were no third-party lenders or insurance policies to fund the loans. Rather, TTFG and its executives, including BORINO, arranged for the contribution, loan, and insurance policy to appear as a series of transactions that, in effect, did nothing more than reduce participants’ taxable wages and employers’ FICA payments improperly, without their knowledge of the impropriety. Consequently, TTFG, BORINO, and the Joachims caused federal FICA taxes and personal income taxes to be underpaid, amounts for which the employer-clients and employee-participants are individually responsible. In at least one instance, a former participant did not qualify for unemployment benefits based on her participation in Classic 105.
If convicted, BORINO faces a maximum term of imprisonment of 95 years, a fine of up to $2,000,000.00, three years supervised release after imprisonment, and a mandatory $100 special assessment (for each count of conviction). He may also be subject to forfeiture.
U.S. Attorney Strasser praised the work of the Internal Revenue Service – Criminal Investigations; Federal Bureau of Investigation; and United States Department of Labor – Office of Inspector General and Employment Benefits Security Administration and expressed appreciation for the support provided by Senior Trial Attorney Rebecca Pyne, Department of Justice, Organized Crime and Gang Section, Labor-Management Racketeering Unit. Assistant United States Attorneys Jordan Ginsberg and Maria Carboni and Department of Justice Trial Attorney Jared Hasten are in charge of the prosecution.
Tahlequah Woman Sentenced to 17 Months for Unlawful Use of Communication FacilityRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jasmine Lea Meikle, age 38, of Tahlequah, Oklahoma, was sentenced to 17 months’ imprisonment and 1 year of supervised release for Unlawful Use Of A Communication Facility, in violation of Title 21, United States Code, Section 843(b). The charges arose from an investigation by the Tahlequah Police Department, the Cherokee County Sheriff’s Office, the Sequoyah County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Information alleged that on or about September 24, 2018, in the Eastern District of Oklahoma, the defendant knowingly and intentionally used a communication facility, a cellular telephone, in facilitating the commission of Possession with Intent to Distribute Methamphetamine, a felony under Title 21, United States Code 841(a)(1).
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Shannon Henson represented the United States.
Tacoma woman charged in 17-count indictment for seven year, $230,000+ benefits fraud schemeRead the Press Release
Seattle – A 39-year-old Tacoma resident was charged today in an indictment alleging wire fraud, theft of public funds, Social Security number misuse, aggravated identity theft, and embezzlement of mail by a postal employee. The indictment alleges ILIGANOA THERESA LAUOFO illegally collected more than $230,000 over the course of a fraud scheme that began in 2011 and continued until 2018. LAUOFO will make her initial appearance on December 5, 2019, at 9:00 a.m. in Seattle.
According to the indictment, LAUOFO lied about her household composition and income, used stolen identities to claim additional benefits and open bank and credit accounts, and stole checks from the mail during a period when she was employed by the U.S. Postal Service. Between April 2011 and December 2018, LAUOFO applied for welfare benefits, including food and income assistance, by claiming her husband did not live with the family. LAUOFO submitted falsified documents to bolster the claim that her husband lived elsewhere. Had her husband’s income been counted, she would not have qualified for the assistance she received. LAUOFO also stole and misused the identity information of minor children who lived in American Samoa, claiming they resided with her when they did not. By claiming these children, she received additional food and childcare benefits. LAUOFO submitted forged letters from doctors and landlords to support her claim that the children resided with her.
Additionally, starting in 2015, LAUOFO used the identity information of two family members residing in California and an acquaintance in American Samoa to receive additional benefits including food assistance, cash assistance, and childcare funds. She claimed still more children—again, actually living in American Samoa—were residing with her under these three false identities and created letters and documents to bolster those claims as well. All told, LAUOFO received more than $220,000 from this scheme to which she was not entitled.
The alleged fraud did not end with stolen benefits. LAUOFO used the identities she stole to open bank and credit accounts. She opened one of those accounts in the name of her ex-husband three years after he died. She deposited worthless checks in the bank account and quickly withdrew cash before the bank realized the fraud. More than $10,000 in loss resulted from that conduct.
Finally, in March 2018, when LAUOFO was employed by the U.S. Postal Service as a letter carrier, she stole and deposited two checks from the mail she was assigned to deliver. She deposited the checks into an account in the name of one of the identities she had stolen in the benefits fraud scheme.
LAUOFO is charged with six counts of wire fraud, four counts of theft of public funds, three counts of Social Security number misuse, three counts of aggravated identity theft and one count of embezzlement of mail by a postal employee.
Wire fraud is punishable by up to 20 years in prison. Theft of public funds is punishable by up to ten years in prison. Social Security number misuse and embezzlement by a postal employee are each punishable by up to five years in prison. Aggravated identity theft is punishable by a mandatory consecutive two-year prison term to follow any punishment imposed on the other counts of conviction.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the Social Security Administration Office of Inspector General (SSA-OIG), Washington State Department of Social and Health Services Office of Fraud and Accountability (DSHS/OFA), and the United States Postal Service Office of Inspector General (USPS-OIG).The case is being prosecuted by Special Assistant United States Attorney Benjamin Diggs. Mr. Diggs is an attorney with the Social Security Administration, specially designated to prosecute fraud cases in federal court.
Sylva Man Is Sentenced to More Than 13 Years in Federal Prison for Trafficking MethamphetamineRead the Press Release
ASHEVILLE, N.C. – Late yesterday, U.S. District Judge Martin Reidinger sentenced Frank Michael Lucas, 33, of Sylva, N.C. to 160 months in prison on drug trafficking charges, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Judge Reidinger also ordered Lucas to serve five years under court supervision and to pay a $10,000 fine.
Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office; Sheriff Chip Hall of the Jackson County Sheriff’s Office; Sheriff Curtis Cochran of the Swain County Sheriff’s Office; Chief Chris Hatton of the Sylva Police Department; and Chief Doug Pheasant of the Cherokee Indian Police Department join U.S. Attorney Murray in making today’s announcement.
According to information contained in filed court documents and yesterday’s sentencing hearing, on June 28, 2018, deputies with the Jackson County Sheriff’s Office were responding to a domestic call at the defendant’s camper located in Sylva. While there, law enforcement observed a firearm inside the camper. Lucas, who was at the time on probation for a state conviction, was prohibited from possessing a firearm. Subsequently, a North Carolina probation officer conducted a warrantless search and recovered from inside the camper several grams of methamphetamine, which Lucas possessed with the intent to distribute, four firearms, one of which was loaded, ammunition, and $7,468 in cash. Court records also show that on October 11, 2018, Lucas was also found to be in possession of a kilogram of methamphetamine with the intent to distribute it to others, and on October 25, 2018, Lucas possessed an additional firearm. In May 2019, Lucas pleaded guilty to possession with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine.
Lucas is currently in custody. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
In making today’s announcement, U.S. Attorney Murray thanked the DEA, the Jackson County Sheriff’s Office, the Swain County Sheriff’s Office, the Sylva Police Department and the Cherokee Indian Police Department for their investigation of this case.
Assistant U.S. Attorney Thomas Kent of the U.S. Attorney’s Office in Asheville prosecuted the case.
Statement from Solicitor General Noel Francisco on the Passing of Former Deputy Solicitor General David ShapiroRead the Press Release
Today, Solicitor General Noel Francisco issued the following statement on the passing of former Deputy Solicitor General David Shapiro:
“We are saddened to learn of the passing earlier this week of Professor David Shapiro. In addition to his tenure at Harvard Law School, David Shapiro was a Deputy Solicitor General in the Department of Justice from 1988 to 1991. He was a highly respected member of the legal profession and gifted appellate advocate on behalf of the United States, arguing ten cases before the Supreme Court. As a scholar, he was a preeminent expert in the field of federal courts and federal jurisdiction. As a colleague, he is remembered by those here at the Department as a rigorous thinker, elegant writer, and warm mentor -- open, straightforward, intellectually engaging, and all with good humor. We are honored to count David Shapiro as an alumnus of the Office of the Solicitor General, we are grateful for his service, and we join others who knew him in mourning his loss.”
St. John Parish Man Pleads Guilty to Methamphetamine ConspiracyRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that DAVID PITTMAN, age 49, of St. John the Baptist Parish, Louisiana, pleaded guilty on November 21, 2019 to conspiring to distribute 50 grams or more of methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(A), and 846.
PITTMAN now faces a mandatory minimum prison sentence of 10 years, a maximum life sentence, a possible fine of $10,000,000, and at least 5 years of supervised release. The Honorable Wendy B. Vitter, United States District Judge, will sentence PITTMAN on February 18, 2020.
U.S. Attorney Strasser praised the work of the Drug Enforcement Administration and St. John the Baptist Parish Sheriff’s Office. Assistant United States Attorney Brandon S. Long is in charge of the prosecution.
St. Croix Man Who Possessed Firearm in School Zone Sentenced to 5 Years Federal ProbationRead the Press Release
St. Croix, USVI – United States Attorney Gretchen C.F. Shappert announced today that Samuel Melendez, age 43, was sentenced on November 21, 2019 after being convicted of Possession of Firearm in a School Zone.
District Court Chief Judge Wilma A. Lewis sentenced Melendez to 5 years of Federal probation, a $1000 fine and ordered Melendez to pay a special assessment of $100.
According to court documents, on or about October 8, 2018, Samuel Melendez possessed a Jimenez Arms .380 Semi-Automatic pistol at the Frederiksted vegetable market, which is within 1000 feet of St. Patrick’s Elementary School. The firearm was tested and found to be operable. The Defendant did not have a valid license to possess a firearm, and the firearm had moved in and affected interstate commerce
The case was investigated by the Virgin Islands Police Department and Homeland Security Investigations. It was prosecuted by Assistant U.S. Attorney Melissa P. Ortiz.
St. Croix Man Arrested on Drug ChargesRead the Press Release
St. Croix, USVI – On November 21, 2019, Keithley Parris, 32, of St. Croix, appeared before Magistrate Judge George W. Cannon for an Initial Appearance after his arrest by Homeland Security Investigations Special Agents on the charges of Conspiracy to Possess Cocaine with Intent to Distribute and Possession of Cocaine with Intent to Distribute. Parris was originally charged by Indictment on September 17, 2019, however, that Indictment was sealed until his arrest on November 21.
At the Initial Appearance, the United States moved to detain Parris. A Detention Hearing and Arraignment is set for November 23, 2019, before Magistrate Judge Cannon.
The case was investigated by Homeland Security Investigations and is being prosecuted by Assistant U.S. Attorneys Daniel H. Huston and Melissa Ortiz.
United States Attorney Gretchen C.F. Shappert reminds the public that an Indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Springfield Man Sentenced to Federal Prison for Drug Trafficking and Gun ChargesRead the Press Release
United States Attorney Brandon J. Fremin announced today that U.S. District Judge Brian A. Jackson sentenced Jimmy Lindsey, age 22, of Springfield, Louisiana, to 132 months in federal prison following his convictions of possession with intent to distribute methamphetamine, marijuana, and oxycodone, and possession of a firearm in furtherance of a drug trafficking crime. The Court further sentenced Lindsey to 4 years of supervised release following his term of imprisonment and ordered that the firearm involved be forfeited.
According to admissions made as part of his guilty plea, Lindsey was on probation for felony narcotics distribution charges in Livingston Parish when agents with the Louisiana Probation and Parole, along with Livingston Parish Sheriff’s Office narcotics detectives, attempted to conduct a compliance check at his residence on July 5, 2018. Agents were aware that Lindsey would be driving a black BMW. While patrolling the area near Lindsey’s residence, detectives encountered a black BMW leaving the area. Detectives initiated a traffic stop after observing the driver of the BMW fail to utilize turn signals on two separate occasions.
As detectives approached the vehicle, they recognized the driver to be Lindsey. They also smelled a strong odor of marijuana emitting from the vehicle. As Lindsey was secured, the deputies found a loaded Smith and Wesson .380 pistol, in his back right pants pocket. The detectives also located methamphetamine and oxycodone pills in his right pants pocket, as well as two zip-lock bags of marijuana in the trunk of the vehicle.
Prior to possessing the firearm, Lindsey pled no contest to possession with intent to distribute marijuana, possession of oxycodone, possession of buprenorphine, and possession with intent to distribute marijuana in February 2017 in Livingston Parish.
U.S. Attorney Fremin stated, “This conviction and sentence is the result of diligent state and local law enforcement working with federal authorities to ensure our streets are safe. The message is clear – we will not tolerate repeat offenders who disregard conditions of felony probation and continue to engage in criminal behavior. I want to thank our prosecutor, the ATF, the Louisiana Probation and Parole Office, and the Livingston Parish Sheriff’s Office for their excellent work on this case.”
Livingston Parish Sheriff Jason Ard stated, “Our goal is to protect our citizens. I am proud of the LPSO Narcotics Division. I appreciate their dedication to Livingston Parish and the working relationship we have with the U.S. Attorney.”
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with critical assistance from the Louisiana Probation and Parole Office and the Livingston Parish Sheriff’s Office, and is being prosecuted by Assistant United States Attorney Eli J. Abad.
Southern Pines Man Sentenced to 44 Months ImprisonmentRead the Press Release
GREENSBORO, N.C. - A previously convicted felon from Southern Pines was sentenced on November 12, 2019, in federal court in Winston-Salem, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina.
CLARK DuVAUL FRYE WADDELL, II, aka “Woody” Waddell, age 26, was sentenced to a 44 month term of imprisonment by Chief United States District Judge Thomas D. Schroeder. In addition to prison time, WADDELL was ordered to serve three years of supervised release and to pay a special assessment of $100.00. WADDELL pleaded guilty on August 8, 2019, to possession with intent to distribute marijuana and knowingly possessing a firearm after previously being convicted of a felony offense punishable by imprisonment for more than one year.
“The United States Attorney’s Office is committed to forging partnerships between federal, state and local law enforcement agencies in order to reduce violent crime and protect the people of the Middle District by identifying and prosecuting offenders like this.” said United States Attorney Martin. “I commend the Southern Pines Police Department, ATF, and AUSA DuPré for their diligence in this case.”
“The Southern Pines Police Department prides itself on developing and maintaining a unified law enforcement/public safety approach to protect our community,” said Chief Bob Temme. “This ever improving shift in organizational culture not only involves the creation of external partnerships, but also citizen involvement, data analysis, intelligence gathering and problem solving. This arrest and conviction highlights many of these successful strategies.”
Court records show that on March 23, 2019, at approximately 2:20 am, officers from the Southern Pines Police Department attempted to stop a vehicle being operated by WADDELL in the area of East Indiana Avenue and Fort Bragg Road in Southern Pines. At this time, WADDELL drove though several residential streets stopping on East Hedgelawn Way, where he exited the vehicle without putting it in park, and fled from officers on foot. The vehicle came to rest after striking a utility box. While being pursued by officers, WADDELL was observed throwing a large bag of marijuana to the ground. As the foot chase continued, WADDELL was observed pulling a firearm from his person and attempted to discard it by throwing it. WADDELL was taken into custody by the pursuing officers. Recovered in this incident was over 57 grams of marijuana, $2,476.00 in U.S. currency, digital scales and a loaded Glock .40 caliber semi-automatic pistol.
WADDELL was previously convicted in Moore County for possession with intent to sell or deliver marijuana, and in Wake County, North Carolina, for possession of a firearm by a convicted felon and prohibited by state and federal law(s) from possessing a firearm. At the time of his arrest, he was out on a $100,000.00 bond following arrest by the Southern Pines Police Department on May 27, 2018, for various drug offenses and for resisting arrest.
The case was investigated by the Southern Pines Police Department and the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). The case was prosecuted by Assistant United States Attorney Nicole R. DuPré.
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Southern Colorado Man Indicted on Federal Hate Crime and Explosives Charges for Plotting to Blow up SynagogueRead the Press Release
Assistant Attorney General Eric Dreiband for the Civil Rights Division and Assistant Attorney General John C. Demers for the National Security Division, U.S. Attorney Jason R. Dunn for the District of Colorado, and Special Agent in Charge Dean Phillips for the FBI Denver Division announced today that Richard Holzer, 27, of Pueblo, has been indicted by a federal grand jury in Denver for attempting to blow up a synagogue in Pueblo, Colorado.
The federal grand jury returned a three-count indictment. Count One charges Holzer with intentionally attempting to obstruct persons in the enjoyment of their free exercise of religious beliefs, through force and the use and attempted use of explosives and fire. This charge is the same as was charged in the original complaint filed on Monday, Nov. 4, 2019. Count Two charges Holzer with attempted arson, and Count Three charges Holzer with using fire or an explosive device to commit a felony offense.
Holzer is currently in federal custody. He is scheduled to appear before a U.S. Magistrate Judge on Monday, Nov. 25 where he will be advised of the charges contained in the indictment, and arraigned on the charges. If convicted, Holzer faces a maximum penalty of 50 years in prison.
Assistant United States Attorney Julia Martinez and Trial Attorney Michael J. Songer of the Civil Rights Division are prosecuting the case, with assistance from Counterterrorism Section Trial Attorney Erin Creegan of the Justice Department’s National Security Division. The FBI conducted the investigation with the assistance of the Pueblo Police Department and Pueblo County Sheriff’s Office.
The charges contained in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty in a court of law.
Shooting Neighbor’s House with More Than 60 Rounds of Ammunition Results in over Seven Years in Federal PrisonRead the Press Release
A Cedar County man who shot his neighbor’s house over 60 times was sentenced today in federal court in Cedar Rapids to more than seven years in prison.
Randolph High, age 62, from Stanwood, Iowa, received the prison term after a May 30, 2019 guilty plea for being a felon in possession of ammunition.
In a plea agreement, High admitted that on January 27, 2019, he shot his neighbor’s house over 60 times. The neighbor’s house, vehicles, and camper sustained dozens of bullet impacts. The Cedar County Sheriff’s Office searched High’s home and found magazines for firearms, numerous .22 caliber rounds of ammunition, and 71 expended shell casings for a .22 caliber firearm.
High was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. High was sentenced to 92 months’ imprisonment. He was ordered to make $34,350 in restitution to his neighbor and their insurance company for the damage he caused to their house, vehicles, and other property. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Patrick J. Reinert and was investigated by the Cedar County Sheriff’s Office, Iowa State Patrol, and the Muscatine County Sheriff’s Office with the assistance of the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-00033.
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Samsung Heavy Industries Company Ltd Agrees to Pay $75 Million in Global Penalties to Resolve Foreign Bribery CaseRead the Press Release
Samsung Heavy Industries Company Limited (Samsung Heavy Industries), a South Korea-based engineering company that provides shipbuilding, offshore platform construction, and other construction and engineering services, has agreed to pay total penalties of more than $75 million to resolve the government’s investigation into violations of the Foreign Corrupt Practices Act (FCPA) arising out of a scheme to pay millions of dollars in bribes to officials in Brazil.
Samsung Heavy Industries entered into a deferred prosecution agreement with the Department in connection with a criminal information filed today in the Eastern District of Virginia charging the company with conspiracy to violate the anti-bribery provisions of the FCPA. The case is assigned to Senior U.S. District Judge T.S. Ellis III of the Eastern District of Virginia. Pursuant to its agreement with the Department, Samsung Heavy Industries has committed to pay a total criminal penalty of $75,481,600 – 50 percent ($37,740,800) of which will be paid to the United States within 10 business days of the deferred prosecution agreement and the remaining 50 percent ($37,740,800) of which will either be paid to Brazilian authorities pursuant to agreements between Samsung Heavy Industries and the Controladoria-Geral da União (CGU), Advogado-Geral da União (AGU) and Ministério Público Federal (MPF), or will be paid to the United States if at least $37,740,800 in payments are not made to the Brazilian authorities on or before Nov. 25, 2020. In related proceedings in Brazil, Samsung Heavy Industries entered into a memorandum of understanding with the CGU and AGU and a complementary agreement for the negotiation of a leniency agreement with the MPF.
“Samsung Heavy Industries paid millions of dollars to a Brazilian intermediary, knowing that some of that money would be used to bribe high-level executives at Petrobras and obtain a lucrative shipbuilding contract,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Today’s resolution is yet one more example of the Department’s continued commitment to root out bribery and to work with our foreign counterparts to investigate schemes spanning multiple international jurisdictions.”
“Samsung Heavy Industries caused millions of dollars in corrupt bribe payments to be paid to foreign officials to win business, upsetting what should have been a level playing field for other companies that followed the rules,” said U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia. “Effective corporate policies and procedures are necessary to ensure that corporations do not engage in foreign bribery. We will continue to hold corporations accountable.”
“The FCPA encourages U.S. companies to fairly compete in an open, global marketplace,” said Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office. “Violations of the FCPA injure the integrity of our free economic system. Our agents work every day to uphold that economic integrity, and we urge anyone who suspects an FCPA violation to contact their local FBI Field Office.”
According to admissions by Samsung Heavy Industries, beginning in 2007 and continuing until 2013, the company conspired with others to violate the FCPA by corruptly providing approximately $20 million in commission payments to a Brazilian intermediary, knowing that portions of the money would be paid as bribes to officials at Petrobras, the Brazilian state-owned oil and state-controlled energy company, in order to secure improper business advantages and to cause Petrobras to enter into a contract to charter a drill ship that Samsung Heavy Industries was selling to a Houston-based offshore oil drilling company, which facilitated Samsung Heavy Industries executing the sale of the drill ship. Samsung Heavy Industries took actions in furtherance of the bribery conspiracy from its branch office located in the United States.
As part of the deferred prosecution agreement, Samsung Heavy Industries has agreed to continue to cooperate with the Department in any ongoing investigations and prosecutions relating to the conduct, including of individuals; to enhance its compliance program; and to report to the Department on the implementation of its enhanced compliance program.
In reaching the resolution with the Department, Samsung Heavy Industries received credit for its cooperation with the Department’s investigation and for taking remedial measures. For example, the company made significant enhancements to its compliance program, including hiring additional compliance staff, implementing enhanced anti-corruption policies and heightened due diligence controls over third party vendors, instituting mandatory anti-corruption training and improving whistleblower policies and procedures. The company did not receive full credit for its cooperation, however, due to its failure to meet reasonable deadlines imposed by the department and delays it caused in reaching a resolution. Accordingly, the total criminal penalty reflects a 20 percent reduction off the bottom of the applicable United States Sentencing Guidelines fine range.
The case is being investigated by the FBI. Trial Attorney Jonathan P. Robell, Acting Assistant Chief Andrew Gentin and Deputy Chief Brian R. Young of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Uzo Asonye of the Eastern District of Virginia are prosecuting the case.
The MPF, CGU and AGU in Brazil provided significant assistance in this matter, as did law enforcement authorities in Monaco and Switzerland. The Criminal Division’s Office of International Affairs provided significant assistance as well.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.
Samsung Heavy Industries Company LTD Agrees to $75 Million Resolution in Foreign Bribery CaseRead the Press Release
ALEXANDRIA – Samsung Heavy Industries Company Limited (Samsung Heavy Industries), a South Korea-based engineering company that provides shipbuilding, offshore platform construction, and other construction and engineering services, has agreed to pay total penalties of more than $75 million to resolve the government’s investigation into violations of the Foreign Corrupt Practices Act (FCPA) arising out of a scheme to pay millions of dollars in bribes to officials in Brazil.
Samsung Heavy Industries entered into a deferred prosecution agreement with the Department in connection with a criminal information filed today in the Eastern District of Virginia charging the company with conspiracy to violate the anti-bribery provisions of the FCPA. The case is assigned to Senior U.S. District Judge T.S. Ellis III of the Eastern District of Virginia. Pursuant to its agreement with the Department, Samsung Heavy Industries has committed to pay a total criminal penalty of $75,481,600 – 50 percent ($37,740,800) of which will be paid to the United States within 10 business days of the deferred prosecution agreement and the remaining 50 percent ($37,740,800) of which will either be paid to Brazilian authorities pursuant to agreements between Samsung Heavy Industries and the Controladoria-Geral da União (CGU), Advogado-Geral da União (AGU) and Ministério Público Federal (MPF), or will be paid to the United States if at least $37,740,800 in payments are not made to the Brazilian authorities on or before Nov. 25, 2020. In related proceedings in Brazil, Samsung Heavy Industries entered into a memorandum of understanding with the CGU and AGU and a complementary agreement for the negotiation of a leniency agreement with the MPF.
“Samsung Heavy Industries caused millions of dollars in corrupt bribe payments to be paid to foreign officials to win business, upsetting what should have been a level playing field for other companies that followed the rules,” said U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia. “Effective corporate policies and procedures are necessary to ensure that corporations do not engage in foreign bribery. We will continue to hold corporations accountable.”
“Samsung Heavy Industries paid millions of dollars to a Brazilian intermediary, knowing that some of that money would be used to bribe high-level executives at Petrobras and obtain a lucrative shipbuilding contract,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Today’s resolution is yet one more example of the Department’s continued commitment to root out bribery and to work with our foreign counterparts to investigate schemes spanning multiple international jurisdictions.”
“The FCPA encourages U.S. companies to fairly compete in an open, global marketplace,” said Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office. “Violations of the FCPA injure the integrity of our free economic system. Our agents work every day to uphold that economic integrity, and we urge anyone who suspects an FCPA violation to contact their local FBI Field Office.”
According to admissions by Samsung Heavy Industries, beginning in 2007 and continuing until 2013, the company conspired with others to violate the FCPA by corruptly providing approximately $20 million in commission payments to a Brazilian intermediary, knowing that portions of the money would be paid as bribes to officials at Petrobras, the Brazilian state-owned oil and state-controlled energy company, in order to secure improper business advantages and to cause Petrobras to enter into a contract to charter a drill ship that Samsung Heavy Industries was selling to a Houston-based offshore oil drilling company, which facilitated Samsung Heavy Industries executing the sale of the drill ship. Samsung Heavy Industries took actions in furtherance of the bribery conspiracy from its branch office located in the United States.
As part of the deferred prosecution agreement, Samsung Heavy Industries has agreed to continue to cooperate with the Department in any ongoing investigations and prosecutions relating to the conduct, including of individuals; to enhance its compliance program; and to report to the Department on the implementation of its enhanced compliance program.
In reaching the resolution with the Department, Samsung Heavy Industries received credit for its cooperation with the Department’s investigation and for taking remedial measures. For example, the company made significant enhancements to its compliance program, including hiring additional compliance staff, implementing enhanced anti-corruption policies and heightened due diligence controls over third party vendors, instituting mandatory anti-corruption training and improving whistleblower policies and procedures. The company did not receive full credit for its cooperation, however, due to its failure to meet reasonable deadlines imposed by the department and delays it caused in reaching a resolution. Accordingly, the total criminal penalty reflects a 20 percent reduction off the bottom of the applicable United States Sentencing Guidelines fine range.
The case is being investigated by the FBI. Trial Attorney Jonathan P. Robell, Acting Assistant Chief Andrew Gentin and Deputy Chief Brian R. Young of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Uzo Asonye of the Eastern District of Virginia are prosecuting the case.
The MPF, CGU and AGU in Brazil provided significant assistance in this matter, as did law enforcement authorities in Monaco and Switzerland. The Criminal Division’s Office of International Affairs provided significant assistance as well.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.
Sacramento Resident Pleads Guilty to Identity Theft Involving a Rancho Cordova Veterinary ClinicRead the Press Release
SACRAMENTO, Calif. — Marie Antoinette Alcanter, 48, of Sacramento, pleaded guilty today to access device fraud and aggravated identity theft, U.S. Attorney McGregor W. Scott announced.
According to court documents, Alcanter obtained victims’ personal and financial information from co-defendant Rose Marie Segale, 41, of San Jose, formerly of Sacramento. Segale had obtained the information through her employment at a veterinary clinic. Alcanter used the information to make purchases and withdrawals using victims’ accounts, as well as to open new accounts using victims’ identities. When Alcanter’s residence was searched by federal agents, they found numerous documents that Segale had provided from the veterinary clinic. One of them was a statement for euthanasia and cremation of a dog, on which Segale had recorded the client’s credit card number. Using victims’ information, Alcanter obtained over $40,000 worth of items and cash between Dec. 2016 and March 2018.
This case is the product of an investigation by the U.S. Postal Inspection Service. Assistant U.S. Attorney Miriam R. Hinman is prosecuting the case.
Alcanter is scheduled to be sentenced on Feb. 21, 2020. Segale previously pleaded guilty and is scheduled to be sentenced on Jan. 17, 2020. Each defendant faces a maximum statutory penalty of 10 years in prison and a $250,000 fine for the access device fraud offense, as well as a mandatory two-year prison term for the aggravated identity theft. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Rochester Man Sentenced for Trafficking Multiple Kilograms of FentanylRead the Press Release
CONCORD - Timothy Lafond, 41, of Rochester, was sentenced in federal court on Thursday, to 198 months for drug trafficking, United States Attorney Scott W. Murray announced.
According to court documents and statements made in court, in August 2018, Lafond made a series of fentanyl transactions with individual who were cooperating with the Drug Enforcement Administration. On September 4, 2018, the DEA conducted a motor vehicle stop of Lafond and arrested him as he left his Rochester apartment. During a search of Lafond, agents found several bags of fentanyl. In addition, agents located a backpack belonging to Lafond that contained 1.96 kilograms of fentanyl. Later that day, the DEA executed a search warrant at a storage unit belonging to Lafond. In the storage unit, an officer found another 1.1 kilograms of fentanyl.
Lafond pleaded guilty to possession of fentanyl with intent to distribute on July 30, 2019.
“Fentanyl is an incredibly deadly substance that is endangering the lives of people throughout New Hampshire,” said U.S. Attorney Murray. “By seizing multiple kilograms of fentanyl from this defendant, the DEA may have prevented countless overdoses and deaths. Fentanyl dealers in New Hampshire should take notice of this lengthy sentence. Continuing to sell this lethal drug, will result in arrest and incarceration in a federal prison for a substantial portion of their lives.”
“Fentanyl is causing great damage to our communities,” said DEA Special Agent in Charge Brian D. Boyle. “The DEA will continue to use every resource available to identify those, like Mr. Lafond, who are contributing to the crisis. Today’s sentence not only holds Mr. Lafond accountable for his crimes but serves as a warning that DEA and its local, state and federal partners will do everything in our power to keep this poison off the streets of New Hampshire.”
This matter was investigated by the Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorneys Seth Aframe and Charles Rombeau.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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Road from Arizona to Kansas Leads to Federal PrisonRead the Press Release
TOPEKA, KAN. - An Arizona man was sentenced today to 15 years in federal prison for trafficking in heroin and fentanyl, U.S. Attorney Stephen McAllister said.
Devonte Jemell Starks, 30, Phoenix, Ariz., was convicted in a jury trial in April 2019 on count of possession with intent to distribute heroin and one count of possession with intent to distribute fentanyl.
During trial, the prosecutor presented evidence that Starks was one of four people in a car that the Kansas Highway Patrol stopped on Sept. 17, 2018, in Shawnee County. Troopers found more than 8 pounds of heroin and 4 pounds of fentanyl in the car.
McAllister commended the Kansas Highway Patrol, the Drug Enforcement Administration and Assistant U.S. Attorney Greg Hough for their work on the case.
Richard Holzer, Pueblo Synagogue Bomb Suspect, Indicted by Federal Grand Jury with Charges AddedRead the Press Release
DENVER – U.S. Attorney Jason R. Dunn for the District of Colorado, Assistant Attorney General Eric Dreiband for the Civil Rights Division, Assistant Attorney General John C. Demers for the National Security Division, and Special Agent in Charge Dean Phillips for the FBI Denver Division announced today that Richard Holzer, age 27, of Pueblo, has been indicted by a federal grand jury in Denver for attempting to blow up a synagogue in Pueblo, Colorado.
The federal grand jury returned a three-count indictment. Count One charges Holzer with intentionally attempting to obstruct persons in the enjoyment of their free exercise of religious beliefs, through force and the use and attempted use of explosives and fire. This charge is the same as was charged in the original complaint filed on Monday, November 4, 2019. Count Two charges Holzer with attempted arson, and Count Three charges Holzer with using fire or an explosive device to commit a felony offense.
Holzer is currently in federal custody. He is scheduled to appear before U.S. Magistrate Judge Scott T. Varholak on Monday, November 25, 2019 at 10:00 a.m., where he will be advised of the charges contained in the indictment, and arraigned on those charges. If convicted, Holzer faces a maximum penalty of 50 years in prison.
Assistant United States Attorney Julia Martinez and Trial Attorney Michael J. Songer of the Civil Rights Division are prosecuting the case on behalf of the government. The FBI conducted the investigation with the assistance of the Pueblo Police Department and Pueblo County Sheriff’s Office.
The charges contained in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty in a court of law.
Real Estate Developer and Property Manager Charged in Ponzi Scheme to Defraud Investors Out of Millions of DollarsRead the Press Release
NEWARK, N.J. – A property developer and manager has been arrested on charges stemming from a scheme to defraud real estate investors, U.S. Attorney Craig Carpenito announced today.
Herbert Whalen a/k/a “Bert Whalen,” 45, of Indianapolis, Indiana, was indicted by a federal grand jury on November 20, 2019, on one count of conspiracy to commit wire fraud and three counts of wire fraud. Whalen was arrested Nov. 21, 2019, and is scheduled to appear this afternoon before U.S. Magistrate Tim A. Baker in Indianapolis, Indiana. His arraignment date in Newark federal court has not yet been scheduled.
According to the indictment:
Between August 2016 and July 2018, Whalen, the owner of Oceanpointe Property Management in Indianapolis, Indiana, engaged in a scheme to obtain money from victim real estate investors by misrepresenting and concealing the poor condition of properties managed by Oceanpointe and by creating fake leases for unoccupied Oceanpointe properties. Employees from Company 1 and Oceanpointe promised investors that, after repairs and rehabilitations were completed, and tenants rented the properties, investors would receive copies of the leases and begin to receive rent payments as their return on investment. In reality, many Oceanpointe properties were not repaired and rehabilitated, and were not ready for occupancy. To conceal this fact from victim investors, Whalen and Coconspirator 1 directed Oceanpointe employees to draft fake leases, making it appear to investors that Oceanpointe properties were rented, when, in fact, the properties remained vacant. Whalen instructed Oceanpointe employees to place fake tenant names on leases to send to Oceanpointe investors.
When investors attempted to view the properties that they had purchased, Whalen directed Oceanpointe employees to cover the windows to make the properties appear to investors as if work was being completed, when, in fact, it was not. Oceanpointe employees did this to conceal the poor condition of the properties and the fact that the properties remained vacant. Whalen, Coconspirator 1, and others commingled tenant rent payments and selected which investors would be paid from the pool of funds in order to silence investors who voiced concerns and evade detection of the fraud. In order to prevent investors from leaving Oceanpointe and exposing the fraudulent conduct, Whalen directed an Oceanpointe employee to create a false identity and falsely claim, on an online real estate message forum, that the Oceanpointe employee was an investor with Oceanpointe and Company 1, and that Oceanpointe had addressed all of the concerns regarding the investment property. These misrepresentations and others led to millions of dollars in losses to investors, which Whalen used to, among other things, fund his and Coconspirator 1’s lifestyle.
The conspiracy count and the three counts of wire fraud with which Whalen is charged each carry a maximum potential punishment of 20 years in prison and a fine of up to $250,000, or twice the gross loss or gain caused by the offense.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to the indictment.
The government is represented by Assistant U.S. Attorney Ari B. Fontecchio of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Real Estate Developer and Loan Officer Plead Guilty to Conspiracy to Make False Statements to BanksRead the Press Release
Tampa, Florida – Mordechai Boaziz (68, Fort Lauderdale) and Jonathan Marmol (41, Odessa) have pleaded guilty to conspiracy to make false statements to financial institutions. Each faces a maximum penalty of 5 years in federal prison. A sentencing date has not yet been set.
According to their plea agreements, beginning around the summer of 2006 and continuing through August 2008, Boaziz and Marmol conspired with others to execute a scheme to influence the credit decisions of financial institutions in connection with the sale of condominium units at The Preserve at Temple Terrace, a 392-unit condominium complex. Boaziz was converting The Preserve from an apartment complex into a condominium complex and hired Marmol to market the units.
In order to recruit and entice otherwise unqualified buyers to purchase units at The Preserve, the conspirators offered to pay the prospective buyers’ down payments (“cash-to-close”). The conspirators then intentionally concealed from the financial institutions the cash-to-close payments made on behalf of the buyers.
In particular, the HUD-1 Settlement Statements submitted to the financial institutions falsely stated that the buyers brought their own cash-to-close funds to purchase the condominium units, which influenced the financial institutions’ mortgage loan approval decisions. In reality, Boaziz funded the buyers’ cash-to-close and routed the payments through Marmol and others. As a result of the conspiracy, the financial institutions that financed the condominium unit purchases at The Preserve sustained a total loss of approximately $5 million.
This case was investigated by the Federal Housing Finance Agency–Office of Inspector General and the Federal Bureau of Investigation. It is being prosecuted by Special Assistant United States Attorney Chris Poor and Assistant United States Attorney Jay L. Hoffer.
Queens Man Convicted of Extortion Conspiracy and Threatening Physical ViolenceRead the Press Release
A federal jury in Brooklyn returned a guilty verdict yesterday against defendant Yuan Li for extortion conspiracy and threatening physical violence in furtherance of an extortion plan. The verdict followed a four-day trial before United States District Judge Brian M. Cogan. When sentenced, Li faces a maximum sentence of 40 years in prison.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, announced the verdict.
“With this verdict, Li now faces punishment for his role in using fear, intimidation and threats of violence to extort a rival who dared to open a gambling parlor on his co-defendant’s turf,” stated United States Attorney Donoghue. Mr. Donoghue expressed his grateful appreciation to the Federal Bureau of Investigation, New York Field Office (FBI), and the New York City Police Department for their work on the case.
The government’s evidence at trial established that Li’s co-defendant, Anthony Pineda, operated numerous gambling parlors from which he distributed large amounts of methamphetamine, in Flushing, Queens. In September 2017, the victim opened a gambling parlor in a building on College Point Boulevard that also housed one of Pineda’s gambling parlors. On September 28, 2019, Li and Pineda demanded that the victim pay 10 percent of his parlor’s profits. When the victim refused, Pineda brandished a gun and Li reiterated his demand for payment, but to no avail. The next day, Li and Pineda again demanded that the victim provide a percentage of his parlor’s profits. Fearing for his safety, the victim contacted the FBI.
The trial was part of a larger prosecution of 11 additional defendants who previously pleaded guilty. On August 14, 2019, lead defendant Anthony Pineda pleaded guilty to conspiracy to distribute 50 grams or more of methamphetamine, possessing a firearm in furtherance of a drug trafficking crime and threatening physical violence in furtherance of an extortion plan. On various dates between April and September 2019, co-defendants Joung Hwa Yun, Yunfeng Goa, Lu Zhai, Marco Rescino, Jing Wang, Ivan Kaleda and Guanghua Shen each pleaded guilty to conspiracy to distribute 50 grams or more of methamphetamine. In June and July 2019, co-defendants Nan Zhang and Ting Li each pleaded guilty to conspiracy to distribute five grams or more of methamphetamine. On May 21, 2019, Si En Li pleaded guilty to operating an illegal gambling business.
The government’s case is being handled by the Office’s Organized Crime & Gangs Section. Assistant United States Attorneys Nadia E. Moore and Drew Rolle are in charge of the prosecution.
Defendant Convicted Yesterday:
YUAN LI (also known as “Mike”)
Age: 38
Queens, New YorkDefendants Awaiting Sentencing:
ANTHONY PINEDA
Age: 37
Queens, New York/San Francisco, CaliforniaYUNFENG GAO
Age: 34
Queens, New YorkIVAN KALEDA
Age: 29
Queens, New YorkSI EN LI
Age: 46
Brooklyn, New YorkTING LI
Age: 31
Queens, New YorkMARCO RESCINO
Age: 23
San Francisco, CaliforniaGUANGHUA SHEN
Age: 45Queens, New York
JIN WANG
Age: 35
Queens, New York
JOUNG HWA YUN
Age: 41
Queens, New YorkLU ZHAI
Age: 31
Queens, New YorkNAN ZHANG
Age: 32E.D.N.Y. Docket No. 18-CR-302 (MKB/BMC)
Providence Man Sentenced to 60 Months in Prison in Drug Trafficking, Firearm ChargesRead the Press Release
PROVIDENCE – A Providence man arrested by Newport Police members of the DEA Drug Task Force in August 2018 as he arrived at a pre-determined location in Newport to deliver heroin he arranged to sell to an undercover Newport Police Department detective was sentenced today to 60 months in federal prison for trafficking heroin, fentanyl, cocaine and crack cocaine, and for being a felon in possession of a firearm.
Franklin Valenzuela, 24, was arrested on August 31, 2018, as he arrived to deliver drugs for the third time in four days to the undercover Newport Police detective. The two previous deliveries tested positive for a mixture of heroin and fentanyl.
During the course of the investigation it was learned that Cranston Police Department detectives were also investigating Valenzuela’s drug trafficking activities.
At the time of his arrest, as he exited his vehicle, several small bags of heroin fell from Valenzuela’s lap. He was also found to be in possession of $1,393 in cash. According to court documents, Valenzuela consented to a search of his Providence residence from which law enforcement seized approximately 53 grams of a mixture of heroin and fentanyl, 90 grams of fentanyl, 70 grams of cocaine, 16 grams of crack cocaine, 412 grams of marijuana, a partly disassembled firearm, and $7,807 in cash.
An additional 22 grams of crack cocaine and 6 grams of fentanyl were found inside a secret compartment in Valenzuela’s vehicle.
On June 25, 2019, Valenzuela pleaded guilty to possession with intent to distribute cocaine base, heroin, cocaine, and fentanyl; distribution of cocaine and fentanyl; and felon in possession of a firearm.
At sentencing today, U.S. District Court Chief Judge William E. Smith sentenced Valenzuela to 60 months in federal prison to be followed by 4 years supervised release.
Valenzuela’s sentence is announced by United States Attorney Aaron L. Weisman, Special Agent in Charge of the DEA’s New England Field Division Brian D. Boyle, Newport Police Chief Gary T. Silva, and Cranston Police Chief Colonel Michael J. Winquist.
The case was prosecuted by Assistant U.S. Attorney Ronald R. Gendron.
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Philadelphia Man Convicted at Trial for Illegal Possession of a Firearm as a FelonRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Yasheam Washington, 31, of Philadelphia, PA was convicted today at trial for being a felon in possession of a firearm.
The evidence at trial showed that in November 2018, while police were patrolling the 1300 block of Chew Avenue in Philadelphia, they observed the defendant sleeping behind the wheel of a running car that was illegally parked. The officers became increasingly concerned for the defendant’s safety and pulled him out of the car, at which point they observed a firearm right underneath him, which they soon learned was loaded with live ammunition. As a previously convicted felon, Washington was prohibited from possessing a firearm.
“This is the second trial conviction secured by my Office this week of a felon illegally possessing a firearm in Philadelphia,” said U.S. Attorney McSwain. “As I have said many times, firearms in the hands of convicted felons undeniably pose a serious threat to public safety. Unlike the District Attorney, my Office and I treat illegal gun possession cases like the serious crimes that they are. That is what is needed in order to combat the City’s epidemic of homicides and shootings. The District Attorney is enabling this epidemic in many ways, not the least of which by routing illegal gun possession cases into diversionary programs designed for low-level, non-violent offenders -- not dangerous criminals and potential murderers.”
“ATF’s top priority is combating violent crime; one of the ways we accomplish that mission is by keeping firearms out of the hands of violent offenders,” said Donald Robinson, Special Agent in Charge, ATF Philadelphia Field Division. “This conviction is a perfect example of the collaborative effort between ATF and our partners at the Philadelphia Police Department and the United States Attorney’s Office in targeting violent offenders and protecting our communities.”
“The arrest and successful prosecution of Yasheam Washington, a recidivist offender, evidences the value of sustained collaboration between law enforcement partner agencies,” said Acting Philadelphia Police Commissioner Christine Coulter. “We anticipate that his conviction and attendant sentence will have an appreciable impact on the safety of the community we serve.”
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.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with substantial assistance from the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorneys Erica Kivitz, Eric Henson, and Daniel Velez.
Peruvian national charged with assaulting and injuring deportation officers aboard Delta airlines flightRead the Press Release
ATLANTA – Jhovany Arias-Herrera has been arraigned on the federal charge of forcibly assaulting Homeland Security Investigation, Enforcement and Removal Operations, officers.
“Herrera, who is an illegal alien, allegedly assaulted and injured federal officers, and disrupted an airlines flight just prior to departure,” said U.S. Attorney Byung J. “BJay” Pak. “This defendant’s conduct caused physical injuries to federal law enforcement officers performing their duties and created havoc and panic for passengers aboard an airline. Our office has zero tolerance for individuals assaulting our law enforcement partners.”
“Every day the brave men and women of ERO face danger while carrying out their duties. I commend the quick reaction of those officers to prevent the situation onboard the aircraft from escalating further,” said acting Special Agent in Charge Robert Hammer, who oversees HSI operations in Georgia and Alabama. “An assault on any member of law enforcement is an assault on all of us and HSI will vigorously seek criminal prosecution on those who do in a court of law.”
According to U.S. Attorney Pak, the charges, and evidence presented at trial: On November 13, 2019, Herrera allegedly assaulted and resisted federal officers who were deporting him from the United States to Lima, Peru, his home country of origin. At the time of the incident, four HSI Enforcement and Removal Operations officers were transporting Herrera on Delta Airline flights from San Diego, California, through Atlanta with Peru as the final destination.
After arriving at Hartsfield-Jackson International Airport in Atlanta, the deportation officers escorted Herrera to the boarding area for the Atlanta flight. After boarding the flight, but before engaging his seatbelt, Herrera suddenly began screaming and demanding to use the bathroom. At the time, airline officials had already ordered passengers to fasten their seatbelts and closed and secured the door of the airplane. All the deportation officers present attempted to calm Herrera, including by allowing him access to the bathroom.
As an officer escorted Herrera to the bathroom, Herrera then punched the airplane wall frightening nearby passengers. Flight attendants responded and tried to calm the passengers as Herrera entered the bathroom. While Herrera was in the bathroom, another officer coordinated with a flight attendant to change Herrera’s seat assignment.
Herrera began yelling again after he left the bathroom and discovered his seat reassignment. The officers then decided to remove Herrera from the airplane. At the time, Herrera was seated in a middle seat, still screaming, and with clenched fists. As two of the officers tried to remove him, Herrera tore off his sweater and threw it at passengers seated in front of him. Two other officers immediately grabbed Herrera’s arms and attempted to escort him off the airplane. Herrera pulled away from the officers, began punching toward the officers’ face and chest areas, and tried to kick the officers’ legs and lower body.
During the struggle Herrera kicked an officer, striking him in the knee, causing bruising to that officer. Herrera repeatedly struck another officer as well. Eventually, the officers removed Herrera from the flight where Atlanta Police officers assisted in detaining him.
Jhovany Arias-Herrera, 27, of Lima, Peru, was arraigned Wednesday November 20, 2019. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the Government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
Homeland Security Investigations is investigating this case, with assistance from the Atlanta Police Department.
Assistant U.S. Attorneys Richard S. Moultrie, Jr., Chief of the office’s Violent Crime and National Security Section, and Radka Nations are handling the prosecution.
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.
Peoria Man Sentenced to 15 Years in Federal Prison for Trafficking MethRead the Press Release
PEORIA, Ill. – David A. Dodd, 45, of Peoria, Ill., has been ordered to serve 15 years in prison for possession of “ice” methamphetamine with the intent to distribute. At sentencing, on Nov. 20, Senior U.S. District Judge Joe Billy McDade further ordered that Dodd remain on supervised release for 10 years following his release from incarceration.
Dodd pleaded guilty on July 17, 2019. According to court documents, on Dec. 21, 2018, agents with the Pekin Police Department and Drug Enforcement Administration executed a search warrant on Dodd and his truck as he drove into Tazewell County on I-155 northbound. Officers recovered approximately five ounces of 100% pure ice methamphetamine from his truck at that time. Dodd admitted to agents that he had been trafficking meth from the St. Louis area for several months and selling it in the Pekin area. Additional methamphetamine and approximately $2600 in cash was found in Dodd’s apartment and seized by law enforcement.
According to public records, Dodd has a 2011 conviction for methamphetamine manufacturing in White County, Illinois, for which he served 10 years in the Illinois Department of Corrections, and four additional drug-related felonies from White County.
Dodd has remained in the custody of the U.S. Marshals Service since his arrest on these charges on Dec. 22, 2018.
Assistant U.S. Attorney Katherine Legge prosecuted the case, which was investigated by the Pekin Police Department and the Drug Enforcement Administration.
Pennsylvania Man Sentenced to 26 Years in Federal Prison for Coercion and Enticement of a Minor to Engage in Illegal Sexual ActivityRead the Press Release
Baltimore, Maryland - U.S. District Judge George L. Russell, III today sentenced Howard Keith Goodson, age 50, of Hatfield, Pennsylvania, to 26 years in federal prison, followed by lifetime supervised release, for coercion and enticement of a minor to engage in illegal sexual activity. Judge Russell also ordered that, upon his release from prison, Goodson must register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge John Eisert of Homeland Security Investigations (HSI) Baltimore; Caroline County Sheriff Randy Bounds; Greensboro Police Chief Eric Lee; and Caroline County State’s Attorney Joe Riley.
According to his guilty plea, in late 2016 or early 2017 Goodson met the victim, who was a 15-year-old girl in ninth grade, on a social media website where the victim hosted a blog. Goodson and the victim began communicating through the social media website, but eventually corresponded through phone calls, text messages, and a smartphone-based messaging application. Goodson knew the victim was a minor. The nature of Goodson’s communication with Jane Doe was consistent with a Bondage, Discipline, Sadism, Masochism (BDSM) relationship in which the dominant partner employs psychological control over the submissive partner.
Between October 2017 and January 2018, Goodson sent a series of sexually explicit messages to the victim, including messages stating his dominance over the victim. Between January and April 2018, Goodson drove from Pennsylvania to Maryland to meet the victim on at least four occasions—at least three of which were to engage in illicit sexual conduct with the victim. Goodson continued to send sexually explicit messages to the victim, including messages discussing punishing the victim and stating that the victim was Goodson’s “property.” During a February 2018 visit to the victim’s residence in Maryland, Goodson produced four images documenting his sexual abuse of the victim.
The victim’s mother saw Goodson leaving the house on April 16, 2018, contacted 911 and followed Goodson while contacting the victim’s father, who blocked the road ahead of where Goodson was driving, forcing Goodson to pull over. Goodson was arrested on federal charges on May 4, 2018, and has been in custody since that time.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Robert K. Hur commended the HSI, the Caroline County Sheriff’s Office, Greensboro Police Department, and the Caroline County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Hur thanked Assistant U.S. Attorneys Jeffrey J. Izant and Judson T. Mihok, who prosecuted the federal case.
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Owner of Long Island Tax Preparation Business Sentenced to Prison for Preparing False ReturnsRead the Press Release
A former tax return preparer was sentenced to 24 months in prison today for aiding in the preparation of a false tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court filings and statements made in court, Mariano Exantus owned and operated Latrex Multi Service, a tax return preparation business located in Uniondale, New York. From at least 2011 through 2016, Exantus prepared and filed fraudulent tax returns for his clients with the Internal Revenue Service (IRS) in which he inflated their refunds, or caused the clients to be issued a refund to which they were not legally entitled. On these returns, Exantus falsified itemized deductions and also claimed false credits, including the American Opportunity Tax Credit. Exantus’s conduct caused a tax loss of more than $250,000 to the United States.
In addition to the prison term, U.S. District Judge Arthur D. Spatt ordered Exantus to serve one year of supervised release, and to pay restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS - Criminal Investigation, who conducted the investigation, and Trial Attorneys Carl Brooker and Sarah Ranney of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Orthopedic Surgeon Sentenced to 2½ Years in Federal Prison for Receiving Kickbacks in Massive Health Care FraudRead the Press Release
SANTA ANA, California – A spinal surgeon was sentenced today to 30 months in federal prison for participating in a long-running health care fraud scheme in which he received at least $5 million in kickbacks for performing hundreds of spinal surgeries. The overall scheme resulted in more than $580 million in fraudulent bills being submitted, mostly to California’s worker compensation system.
Dr. Daniel Capen, 70, of Manhattan Beach, was sentenced by United States District Judge Josephine L. Staton, who also ordered Capen to forfeit $5 million to the United States and pay a $500,000 fine.
Capen, an orthopedic surgeon specializing in spinal surgeries, pleaded guilty in August 2018 to conspiracy to commit honest services fraud, and soliciting and receiving kickbacks for health care referrals.
The kickback scheme centered on Pacific Hospital in Long Beach, which specialized in surgeries, especially spinal and orthopedic procedures. Pacific Hospital’s owner, Michael D. Drobot, conspired with doctors, chiropractors and marketers to pay kickbacks in return for the referral of thousands of patients to Pacific Hospital for spinal surgeries and other medical services paid for primarily through the California workers’ compensation system.
Capen received kickbacks for referring surgeries to Pacific Hospital and also for using medical hardware from a Pacific Hospital-affiliated entity during the spinal surgeries he performed. He also received kickbacks for referring medical services such as urine and drug testing to Pacific Hospital-affiliated entities.
In total, between 1998 and 2013, Capen accounted for approximately $142 million of Pacific Hospital’s claims to insurers, on which the hospital was paid approximately $56 million. Capen admitted to receiving at least $5 million in kickbacks during the course of his crimes.
Drobot is serving a five-year prison sentence for conspiracy and paying illegal kickbacks, and has admitted that he orchestrated a wide-ranging fraudulent kickback scheme where paid more than $50 million in bribes to doctors to steer hundreds of millions of dollars in spinal surgeries to his hospital. Drobot ultimately profited millions of dollars from the scheme. Drobot currently faces additional federal criminal charges for allegedly violating a court forfeiture order by illegally selling his luxury cars.
Seventeen defendants have been charged in connection with the scheme, and 10 of them have been convicted, including Drobot and his son. Another doctor – Timothy James Hunt, 55, of Palos Verdes Estates – was sentenced in late September to two years in federal prison after he admitted taking illegal kickbacks.
The investigation into the spinal surgery kickback scheme was conducted by the FBI; IRS Criminal Investigation; the California Department of Insurance; and the United States Postal Service, Office of Inspector General.
This case is being prosecuted by Assistant United States Attorneys Joseph T. McNally of the Violent and Organized Crime Section, Scott D. Tenley of the Santa Ana Branch Office, Ashwin Janakiram of the Major Frauds Section, and Victor A. Rodgers of the Asset Forfeiture Section.