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Newest first across public DOJ and U.S. Attorney press releases.
Wednesday 16 October 2019
Former Director of Human Resources Pleads Guilty to Embezzling over 1.8 Million Dollars from Her EmployerRead the Press Release
St. Louis, MO – Nicole M. Scott, 42, of St. Louis City, Missouri, pleaded guilty to one felony count of wire fraud. Scott appeared in federal court today before U.S. District Judge Henry E. Autrey who accepted her plea and set her sentencing date for January 23, 2020.
According to court documents, from January 2009 until January 2019, Scott embezzled more than $1.8 million from her employer. As part of her scheme, Scott would use her company’s payroll system to access lists of the company’s former employees, change the direct deposit information for certain former employees to her own personal bank account, and then enter fraudulent “negative deduction” transactions thereby causing the company to pay funds to Scott’s personal bank account. In order to conceal her scheme, Scott would then manipulate payroll journal entries related to the fraudulent transactions causing them to be imputed to Scott for tax purposes. Scott used the more than $1.8 million in fraud proceeds for personal gain, including making payments on a mortgage loan, to purchase clothing and accessories, and to pay for living expenses.
“Nicole Scott thought she could get away with her scheme because she oversaw the payroll system and had the ability to alter it,” said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. “Like other white-collar criminals who exploit their positions of trust, she will pay for her greed.”
Scott faces a maximum penalty of 20 years in prison and a $250,000 fine. Restitution is also mandatory. In determining the actual sentence, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The Federal Bureau of Investigation is investigating this case. Assistant U.S. Attorney Kyle T. Bateman is handling the case for the U.S. Attorney’s Office.
First Defendant in Methamphetamine Trafficking Ring Sentenced to 20 Years in Federal PrisonRead the Press Release
SALT LAKE CITY – The lead defendant in a methamphetamine trafficking ring responsible for distributing more than 99 pounds of methamphetamine in Utah, Idaho, and other locations, will spend 20 years in federal prison after pleading guilty to conspiracy to distribute methamphetamine and conspiracy to commit money laundering.
According to documents filed in court, Tiffany Scott Spevak, age 39, of Salt Lake City, agreed that she conspired with others from about January 2014 through October 2016, to procure methamphetamine in Arizona and California and distribute it to customers in Utah, Idaho, and other locations.
She admitted that more than 99 pounds of methamphetamine were distributed during the conspiracy period. Spevak admitted that she directed other individuals to get the methamphetamine and to distribute it during conspiracy period. Investigators involved in the case estimate that the group distributed between 250-500 pounds of methamphetamine.
She also admitted that those involved in the conspiracy engaged in financial transactions, knowing the property involved in the financial transactions represented proceeds of unlawful activity – distribution of methamphetamine in this case – with the intent to continue the unlawful activity.
Acting on information provided by an individual arrested in Washington, special agents with U.S. Department of Homeland Security Investigations interviewed Spevak at her home in January 2016. Agents found $37,000 in case during a search of her residence. A narcotics K-9 alerted on items in the home. Agents found postal express mail envelopes and a small roll of green shrink wrap in a closet. Spevak initially told them the materials were from 2012 and were used by her significant other, Hugo Tapia-Mendoza, who is currently incarcerated in another federal drug case. During a later interview, Spevak told agents that after Tapia was arrested, she began to contact individuals who worked for Tapia who connected her with individuals who sold her methamphetamine.
Cases are pending for four other defendants in the case. Carlos Rafael Cota-Escalante, age 53, of Phoenix, Arizona, is charged with conspiracy to distribute methamphetamine and conspiracy to commit money laundering in the indictment. He is in custody. Stephen Scott Spevak, 62, of Idaho, is charged with conspiracy to distribute methamphetamine, conspiracy to commit money laundering, and three counts of money laundering. He is on pretrial release. An arrest warrant is pending for Carlos Rafael Cota-Llanes, age 31, of Phoenix, who is charged with conspiracy to distribute methamphetamine and conspiracy to commit money laundering. Shanna Walter, age 42, of Salt Lake County, is charged with money laundering and is on pretrial release. (Stephen Scott Spevak is Tiffany Scott Spevak’s father.)
In a related case in Idaho, Ryan Dalley of Pocatello, Idaho, who worked with Tiffany Spevak to get methamphetamine in Los Angeles and Phoenix for distribution in Idaho and Montana, was sentenced to 17 years in federal prison in September. At sentencing, U.S. District Court Judge B. Lynn Winmill noted he has presided over a significant share of the drug sentencings in federal court in Pocatello in the past 24 years, and he believed Dalley’s drug trafficking organization is “one of, if not the largest, drug trafficking operation in Eastern Idaho.”
Federal prosecutors in the U.S. Attorney’s Office in Utah are prosecuting the case. Special agents of the DEA, IRS-Criminal Investigation, and the U.S. Department of Homeland Security Investigations are investigating the case along with the Idaho State Police.
Fayette County Man Sentenced to 72 Months for Illegal Firearm PossessionRead the Press Release
FRANKFORT, Ky. –Adlie Penman, 40, of Lexington, Kentucky, was sentenced to 72 months in federal prison on Wednesday, by United States District Judge Gregory F. Van Tatenhove, after pleading guilty to one count of being a convicted felon in possession of a firearm.
On November 19, 2018, officers with the Lexington Police Department responded to a residential noise complaint. While at the scene, officers observed Penman emerge from a tree line next door. Upon seeing police, Penman immediately tossed a loaded .22 caliber pistol, which was later recovered. Penman was a convicted felon, with multiple prior felony convictions including burglary and drug trafficking.
Under federal law, Penman must serve 85 percent of his 72 month sentence. Upon completion of his sentence, he will be under the supervision of the United States Probation Office for a period of three years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Tommy Estevan, Acting Special Agent in Charge, ATF, Louisville Field Division; and Lawrence Weathers, Chief of Police, Lexington Police Department, jointly made the announcement.
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 PSN program was reinvigorated 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.
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Ex-Dallas Police Officer Pleads Guilty to Falsifying Traffic CitationsRead the Press Release
A former Dallas Police Officer pleaded guilty today to falsifying traffic citations in order to collect overtime pay, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Following an investigation by the Dallas Police Department, Mathew Alan Rushing, 35, pleaded guilty to one count of false statements before Magistrate Judge David Horan Tuesday morning.
According to his plea papers, Mr. Rushing submitted at least 38 fraudulent “Officer’s Daily Grant Activity Reports,” which included citations for fictitious persons and events, over a nine month period from 2018 to 2019.
After Mr. Rushing concluded a traffic stop, he admitted, he sometimes altered the violator’s true identity by changing their name or date of birth, causing arrest warrants to be issued for drivers who didn’t exist. Other times, he admitted, he citied drivers for nonexistent violations after they departed the scene of the incident.
Mr. Rushing admitted he submitted these report with the intention of collecting overtime pay funded by federal grants from the National Highway Traffic Safety Administration (NHTSA) through a program administered by the Texas Department of Transportation and the Dallas Police Department.
Mr. Rushing now faces up to five years in federal prison. Sentencing is set for March 2020.
The Dallas Police Department, Federal Bureau of Investigation Dallas Field Office, and Department of Transportation Office of Inspector General conducted the investigation. Assistant U.S. Attorneys David Jarvis and Andrew Wirmani are prosecuting the case.
Ellenville Man Pleads Guilty to Crack Cocaine ConspiracyRead the Press Release
ALBANY, NEW YORK – Iqwan Mandiville, age 26, of Ellenville, New York, pled guilty today to his involvement in a drug trafficking organization in Ulster County that was dismantled and indicted in March 2019.
The announcement was made by United States Attorney Grant C. Jaquith; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations (HSI), New York; Ulster County Sheriff Juan Figueroa, whose office leads the Ulster Regional Gang Enforcement Narcotics Team (URGENT); Ulster County District Attorney Holley Carnright; New York State Police Superintendent Keith M. Corlett; and Village of Ellenville Police Chief Philip Mattracion.
Mandiville admitted that between May and December 2018, in cooperation with co-conspirators, he sold at least 112 grams of crack cocaine on behalf of the organization in various locations around Ellenville.
Mandiville faces at least 5 years and up to 40 years in prison, a term of supervised release of at least 4 years and up to life, and a maximum fine of $5 million. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors
The following defendants have also pled guilty in connection with the conspiracy, and face the following penalties:
Name
Age
Minimum
Maximum
Luis Curet
34
5 years
40 years
Edwin Jorge
46
None
20 years
Randy Mandiville, aka “B-Murda”
30
None
20 years
The following defendants still face charges in this case, and face the following penalties:
Name
Age
Minimum
Maximum
Antonio Naveo, aka “Gratto,” aka “Green Eyes”
38
10 years
Life
Margaret Vandyke
56
10 years
Life
Jennifer McCombs, aka
“Jennifer Marks”49
5 years
40 years
Naveo is also charged with unlawful possession of a Mossberg shotgun as a felon.
The charges against these defendants are merely accusations. The defendants are presumed innocent unless and until proven guilty.
This case is being investigated by HSI, the Ulster County Sheriff’s Office in conjunction with URGENT, an inter-agency taskforce targeting drug dealers and gang members in Ulster County, and the New York State Police, with assistance from the Village of Ellenville Police and the Ulster County District Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorney Emmet J. O’Hanlon.
Deported Felon Sentenced to 60 Months in PrisonRead the Press Release
FORT WAYNE – Luis Carrera, age 45, of Hammond, Indiana was sentenced before U.S. District Court Judge Holly A. Brady upon his plea of guilty to possession with intent to distribute more than 500 grams of cocaine, announced U.S. Attorney Kirsch.
Carrera was sentenced to 60 months in prison with 4 years of supervised release, however he will be deported upon completion of his federal sentence.
According to documents in this case, Carrera brought a kilogram of cocaine to Fort Wayne from Hammond, Indiana. During a search of the vehicle driven by Mr. Carrera, officers found the cocaine wrapped and concealed in a plastic oil bottle. Mr. Carrera was previously removed from the U.S. for attempted illegal entry and was also on probation in Porter County, Indiana for dealing Marijuana.
The case was investigated by the Drug Enforcement Administration with the assistance of the Fort Wayne Police Department. The case was handled by Assistant United States Attorney Stacey R. Speith.
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Department of Justice Awards More Than $29 Million in Public Safety Funding to Northern District of OhioRead the Press Release
The Department of Justice today announced awards of more than $29 million to support public safety efforts in the Northern District of Ohio. The funding from the Office of Justice Programs (OJP), Office on Violence Against Women (OVW), and the Office of Community Oriented Policing Services (COPS) will support violent crime reduction, opioid/substance abuse reduction efforts, victim services, transitional housing for domestic violence victims, law enforcement activities, justice mental health, and juvenile justice.
“The Department of Justice is proud to announce funding for the Northern District of Ohio to further reduce violent crime, train judges and prosecutors, and serve victims of crime,” said Attorney General William P. Barr. “We applaud U.S. Attorney Justin Herdman for his fine work there, and we are confident that his stewardship of the additional resources will yield tangible results in his community.”
“It was an honor to announce the Department’s awards in and beyond Cleveland today, and to meet with those working on the ground to end domestic and sexual violence,” said Laura L. Rogers, Acting Director of the Office on Violence Against Women. “During Domestic Violence Awareness Month, it is heartening to hear about efforts in Cleveland, including the high risk team’s use of innovative strategies to prevent domestic violence homicides. I am delighted to announce funding for specialized courts, prosecutors, law enforcement, and victims services providers who are working around the clock to protect and bring justice for victims.”
“Community safety and justice is a round-the-clock operation in communities across the country, including the Northern District of Ohio,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General for the Office of Justice Programs. “This is why the Office of Justice Programs is pleased to announce critical grant funding going to the Northern District of Ohio that will support opioid and substance abuse reduction, bolster law enforcement, create specialized courts to handle domestic violence cases, and give over $3 million toward the Sexual Assault Kit Initiative that addresses the growing number of unsubmitted SAKs in law enforcement custody and helps provide resolution for victims when possible.”
OVW Acting Director Rogers made the announcement at the Cuyahoga County Justice Center on Wednesday afternoon along with U.S. Attorney Justin Herdman and Judge Sherrie Miday. Acting Director Rogers also recognized U.S. Attorney Herdman and his work in the Northern District of Ohio. Corresponding with National Domestic Violence Awareness Month, Acting Director Rogers and U.S. Attorney Herdman discussed the Department’s work in bolstering law enforcement and providing services in the District that victims need to find safety, stability, and justice.
“These funds will save lives, whether that is expanding a program that identifies the most dangerous abusers, provides emergency shelter to our most vulnerable victims, allows law enforcement to do a better job tracking and sharing crime data, just to name a few,” U.S. Attorney Justin Herdman said. “These grant awards demonstrate the Justice Department’s commitment to working across the state and country, with jurisdictions large and small, to make our communities safer.”
The awards were made by the three grant-making components of the Department of Justice—OVW, the Office of Community Oriented Policing Services and the Office of Justice Programs.
A full list of COPS awards is available online at https://cops.usdoj.gov/grants. OJP awards, organized under specific grant programs, are available online at https://ojp.gov/funding/Explore/OJPAwardData.htm. For OVW awards, visit https://www.justice.gov/ovw/awards.
About the Office of Community Oriented Policing Services:
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1994, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of approximately 130,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit www.cops.usdoj.gov.
About the Office of Justice Programs:
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal justice system. More information about OJP and its components can be found at www.ojp.gov.
About the Office on Violence Against Women:
The Office on Violence Against Women provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies and practices aimed at ending domestic violence, dating violence, sexual assault and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
Danville Man Charged with Robbing Centralia Bank at GunpointRead the Press Release
Charges have been filed in connection with the September 2018 armed robbery of a federally-insured
bank in Centralia, Illinois. Aaron Moss, 21, of Danville, Illinois, is the only defendant named in
a two-count indictment returned by a federal grand jury earlier this month. The indictment alleges
that Moss and another unnamed person robbed the People’s National Bank in Marion County using a
Glock .40 model 27 firearm.Moss made his initial appearance and was arraigned today in federal district court, pleading not
guilty to both charges. If convicted, he faces up to 25 years in prison on the bank robbery charge
and an additional seven years to life for brandishing a gun during the crime.Trial is scheduled to be held on Dec. 16, 2019, before United States District Judge Staci
M. Yandle at the federal courthouse in Benton, Illinois.The investigation is being conducted by the FBI and the Centralia Police Department.
An indictment is merely a formal charge against a defendant. Under the law, a defendant is presumed
to be innocent of a charge until proven guilty beyond a reasonable doubt to the
satisfaction of a jury.California Entrepreneur Sentenced in College Admissions CaseRead the Press Release
BOSTON – A California woman became the ninth parent to be sentenced in connection with the college admissions case.
Marjorie Klapper, 50, of Menlo Park, Calif., was sentenced by U.S. District Court Judge Indira Talwani to three weeks in prison, one year of supervised release, ordered to complete 250 hours of community service and to pay a fine of $9,500. In May 2019, Klapper pleaded guilty to one count of conspiracy to commit mail fraud and honest services mail fraud.
The government recommended a sentence of four months in prison, one year of supervised release and a fine of $20,000.
“This defendant paid $15,000 to arrange for her son to cheat on the ACT and then falsely claimed on his college applications that he was Black or Latino,” said United States Attorney Andrew E. Lelling. “Ms. Klapper thereby not only corrupted the standardized testing system, but also specifically victimized the real minority applicants already fighting for admission to elite schools. We respectfully disagree that a three-week sentence is a sufficient sanction for this misconduct.”
Beginning in the 2017, Klapper conspired with William “Rick” Singer and others to have her son’s ACT exam corrected, thereby fraudulently inflating the score. As part of the scheme, Klapper took steps to secure extended time for her son to take the ACT and to take the exam at a test center in West Hollywood that Singer “controlled” through the center’s corrupt administrator, Igor Dvorskiy. After Klapper’s son completed the exam on Oct. 28, 2017, co-conspirator Mark Riddell corrected his answers. As a result of the cheating scheme, Klapper’s son received a score of 30 out of 36 on the exam. In November 2017, Klapper made a purported charitable donation of $15,000 to Singer’s sham charity, Key Worldwide Foundation to pay for the fraud.
In addition, Klapper conspired with Singer to falsify her son’s college applications by claiming that he was African-American and of Hispanic/Latino origin in an attempt to further improve his odds of admission by claiming minority status. Klapper also falsely represented that neither she nor her husband had attended college in order to bolster her son’s college prospects.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright and Kristen A. Kearney of Lelling’s Securities and Financial Fraud Unit prosecuted the case.
Brownsville area attorney fined and sent to prisonRead the Press Release
HOUSTON – A 70-year-old Brownsville attorney has been ordered to federal prison following his conviction of failing to file a financial reporting form as required when operating a trade or business, announced U.S. Attorney Ryan K. Patrick. Guillermo Vega Jr. pleaded guilty May 23, 2018.
Today, U.S. District Judge Andrew S. Hanen ordered Vega to serve a total of 13 months in prison immediately followed by three years of supervised release. The court also imposed a $100,000 fine and restitution payable to the IRS for unpaid taxes Vega earned as part of his legal practice. At the hearing, the court heard additional evidence regarding Vega’s attempt to obstruct justice by tampering with a witness. In handing down the sentence, the court found Vega abused the public trust because of his special skill as an attorney. Judge Hanen also noted other government and legal forms he filed in the course of his representation of criminal defendants.
At the time of the plea, the court heard that on March 21, 2011, Vega received $25,000 in cash related to a single sale while operating as a trade or business, namely the Law Office of Guillermo Vega Jr.
The money was intended for the representation of Heriberto Bazan on federal charges of attempting to transport ammunition into Mexico. Vega did not file the appropriate FinCEN Form in relation to the transaction. A FinCEN Form 8300 is a reporting requirement when a trade or business receives cash in excess of $10,000.
As part of the plea agreement, Vega agreed that he will make full restitution on the tax loss, totaling $126,253.
Vega was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
IRS-Criminal Investigation and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorneys Jody Young and Karen Betancourt are prosecuting the case.
Brownsville Man Sentenced on Child Pornography ChargeRead the Press Release
BROWNSVILLE, Texas – A 43-year old U.S. citizen has been ordered to federal prison following his admission that he possessed child pornography, announced U.S. Attorney Ryan K. Patrick. Donavan Lyle Herrera pleaded guilty Feb. 6, 2019.
Today, U.S. District Judge Rolando Olvera Jr. sentenced Herrera to 121 months of federal imprisonment. He will also serve 10 years on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. Herrera will also be ordered to register as a sex offender. A hearing will be held at a later date to determine restitution.
On or about Oct. 19, 2018, law enforcement initiated an investigation of child pornography sharing which led them to Herrera’s address in Brownsville. On Nov. 15, 2018, authorities executed a search warrant at Herrera’s home at which time they seized a computer and other digital devices. A forensic analysis resulted in the discovery of approximately 41 images and 81 videos of child pornography.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) - Rio Grande Valley Child Exploitation Task Force conducted the investigation.
Assistant U.S. Attorney Ana C. Cano prosecuted the case which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Broward County Resident Charged with Six Armed RobberiesRead the Press Release
A Broward County resident has been charged with six armed robberies.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Ari C. Shapira, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, Gregory Tony, Sheriff, Broward Sheriff’s Office (BSO), and Anthony W. Rosa, Chief, Sunrise Police Department, made the announcement.
Dwight Courtney Grinion, 25, of Ft. Lauderdale, Florida, has been charged by indictment with six counts of Hobbs Act robbery, in violation of Title 18, United States Code, Section 1951(a); one count of discharging a firearm in furtherance of a crime of violence, in violation of Title 18, United States Code, Section 924(c)(1)(A)(iii); and five counts of brandishing a firearm in furtherance of a crime of violence, in violation of Title 18, United States Code, Section 924(c)(1)(A)(ii) (Case No. 19-CR-60115-WPD). If convicted of the charged offenses, the defendant faces: 20 years in prison for each Hobbs Act robbery; life in prison for discharging a firearm in furtherance of a crime of violence, with a mandatory consecutive term of 10 years in prison; and life in prison for brandishing a firearm in furtherance of a crime of violence, with a mandatory consecutive term of 7 years in prison.
According to the court record, including allegations contained in the criminal complaint and indictment, Grinion robbed six commercial establishments at gunpoint between March 22, 2019 and April 24, 2019. During the first robbery, on March 22, 2019, at a Subway in Ft. Lauderdale, Grinion discharged a revolver. The last robbery, on April 24, 2019, occurred at Designers Jewelry Collection, a jewelry store at the Sawgrass Mills Mall in Sunrise, Florida, and involved the brandishing of a revolver, the same kind of gun used in the other five robberies. During the last robbery, Grinion is alleged to have pointed a firearm at an employee of the jewelry store and stolen a gold bracelet worth approximately $2,500.
All of the victim companies purchase products in interstate commerce and sell products to customers throughout the United States and abroad.
An indictment and criminal complaint merely contain charging accusations. A defendant is presumed innocent unless and until proven guilty in a court of law.
U.S. Attorney Fajardo Orshan commended the investigative efforts of ATF, the Broward Sheriff’s Office and Sunrise Police Department in this matter. This case is being prosecuted by Assistant U.S. Attorney Robert Juman.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Brookings Man Charged with Distribution and Receipt of Child PornographyRead the Press Release
United States Attorney Ron Parsons announced that a Brookings, South Dakota, man has been indicted by a federal grand jury for Distribution and Receipt of Child Pornography.
Tyler Powers, age 25, was indicted on October 8, 2019. He appeared before U.S. Magistrate Judge Veronica L. Duffy on October 11, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in federal prison and/or a $250,000 fine, life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about May 30, 2019, Powers knowingly received and distributed, and attempted to receive and distribute, child pornography that had been mailed, shipped, and transported in or affecting interstate or foreign commerce, using a computer.
The charge is merely an accusation and Powers is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the South Dakota Division of Criminal Investigation. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Powers was remanded to the custody of the U.S. Marshals Service pending trial, which has been set for December 17, 2019.
Armed drug trafficker/gang member sent to prisonRead the Press Release
CORPUS CHRISTI, Texas - A 39-year-old Corpus Christi resident and Texas Syndicate member has been ordered to federal prison for trafficking cocaine and possessing a firearm, announced U.S. Attorney Ryan K. Patrick. John Mendez aka John Manuel Mendez pleaded guilty May 31.
Today, U.S. District Judge Nelva Gonzales Ramos handed Mendez an 18-month sentence for the drug charges. He also received an additional 60 months for the firearms offense which must be served consecutively for a total sentence of 78 months in federal prison. The sentence will be immediately followed by five years of supervised release. In handing down the sentence, the court noted the defendant’s extensive criminal history.
From approximately May 1 - Aug. 25, 2018, Mendez was involved in a cocaine conspiracy. On June 25, 2018, local law enforcement conducted a routine traffic stop which resulted in the discovery of cocaine and marijuana. They also found two firearms - a .40 caliber rifle in the vehicle’s front seat and a .357 caliber handgun found on the ground near the vehicle.
He was released on bond, during which time another traffic stop led to the discovery that Mendez possessed additional cocaine for distribution. Social media evidence also demonstrated extensive drug trafficking and firearms activity.
Mendez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Corpus Christi Police Department conducted the investigation. Assistant U.S. Attorney Reid Manning is prosecuting the case.
Armed Drug Dealer Sentenced in Federal CourtRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Dylan Kenneth Cox, 24, of Daphne, Alabama, was sentenced this morning in federal court on drug and gun charges. Cox pled guilty to the two charges-- using, carrying and possessing a firearm in furtherance of or in relation to a drug trafficking felony, and possession with intent to distribute marijuana and alprazolam (commonly known as Xanax) – during July of 2019.
United States District Court Judge Jeffrey U. Beaverstock imposed a sentence of one day on the marijuana count, which had resulted in an advisory guideline range of 0 to 6 months imprisonment. On the gun count, Judge Beaverstock imposed a sentence of 60 months, and ordered that it run consecutive to the one-day sentence for the drug charge. The judge also ordered that Cox will serve a total of five years on supervised release following his incarceration, during which he will receive mental health and drug abuse treatment. No fine was imposed, but the judge ordered that the defendant pay the special mandatory assessments of $200.
The case was investigated by the Daphne Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Another Tech Support Fraudster Sentenced to PrisonRead the Press Release
An American citizen who spent over a year running the day-to-day operations of a fraudulent tech
support call center in Costa Rica is heading to prison. Michael Cary Lawing, 34, of Lincolnton,
North Carolina, has been sentenced to serve 18 months behind bars for his role as the CEO of ABC
Repair Tech (ABC) from 2015 to 2016. Lawing pleaded guilty in October 2018 to a one-count felony
information charging him with conspiracy to commit wire fraud.According to court documents, Lawing’s company was affiliated with another fraudulent tech support
business in South Florida known as First Choice Tech Support, which later changed its name to
Client Care Experts (CCE). Both ABC and CCE purchased pop-up advertisements that would appear
suddenly on a person’s computer screen. The pop-ups were made to look like system warnings and
falsely informed the victims that serious problems, such as viruses or malware, had been detected
on their computers. Often, the pop-ups caused the person’s internet browser to freeze up and stop
responding. The pop-ups also typically warned the victims not to shut down their computers or else
they would lose all their data. Instead, the ads directed them to call a toll-free number, where
they were connected to sales representatives who continued the fraud.The sales representatives at ABC and CCE would convince the victims to grant them remote access to
their computers, where normal computer functions and routine processes were highlighted as evidence
of serious computer problems. Victims were never told that the pop-ups that had hijacked their
computers were just advertisements purchased by the tech support company, or that in most instances
they could make the pop-ups go away simply by rebooting their computers. Instead, they were sold
remote “tune-ups” for $250 and anti-virus protection software for another $400. If victims balked
at the steep prices, the sales representatives would offer them a discount for being a senior
citizen or a military veteran or something else.From 2013-2016, the two companies – CCE and ABC – combined to defraud more than 40,000 people.
Victims were located in all 50 States, the District of Columbia, Puerto Rico, several
U.S. territories, all 10 Canadian provinces, the United Kingdom, and several other
foreign countries. At least 57 victims of the scams were residents of the Southern District of Illinois,
representing 22 of the district’s 38 counties, including St. Clair and Madison. All told, the two
companies took in over $25 million.In handing down the 18-month sentence, Chief United States District Judge Nancy J. Rosenstengel
explained that the need to deter other would-be scammers was a “big factor” in her decision. “The
general public needs to see that this kind of crime is taken seriously,” she said.As part of his sentence, Lawing was ordered to pay back over $266,000 in restitution to ABC victims
– a figure that represents ten percent of the roughly $2.6 million in actual losses incurred by
over 10,000 victims during Lawing’s tenure as the company’s top executive. Evidence presented in
court showed that Lawing himself made only about $90,000 from the scam. The bulk of ABC’s
fraudulent earnings were reportedly reinvested in the company.Lawing’s sentence comes just one week after CCE’s Vice President, Grand Clark Wasik, 36, of Oakland
Park, Florida, was sentenced to 125 months in prison and ordered to pay over $10 million in
restitution. Wasik pled guilty to count one of a 14-count superseding indictment earlier this year.
Two former owners of CCE, Michael Austin Seward, 32, of Deerfield Beach, Florida, and Kevin James
McCormick, 46, of Delray Beach, Florida, also pled guilty to their role in the conspiracy and are
due to be sentenced on November 18. The Honorable Joe Billy McDade from the Central District of
Illinois, who presided over Wasik’s case, will also conduct the sentencings of Seward and
McCormick.Since April 2017, 14 other employees of CCE and ABC have also pleaded guilty to federal fraud
violations in the Southern District of Illinois:• Joseph Ralph Aievoli, IV, 26, of Boynton Beach, FL – Salesperson at CCE
• Cory Steven Bachman, 26, of Boynton Beach, FL – Salesperson at CCE
• Andrew Douglas Broad, 27, of Boynton Beach, FL – Director of Training at CCE
• Ryan Stocker Carr, 24, of Mount Laurel, NJ – Team Leader at CCE
• Joshua Dennis Cortez, 38, of Lake Worth, FL – Director of Training at CCE
• Erica Marie Crowell, 30, of Maple Shade, NJ – Salesperson at CCE
• Nicholas James Davidson, 27, of Boynton Beach, FL – Salesperson at CCE
• Patrick M. Dougherty, 36, of Boynton Beach, FL – Salesperson at CCE
• Tatum Elyse Espenshade, 27, of West Palm Beach, FL – Salesperson at CCE
• Eric M. Iannaccone, 33, of Monroe Township, NJ – Sales Manager at CCE
• Anthony Vincent Ludena, 30, of Boca Raton, FL – Salesperson at CCE
• Robert Thomas McCart, 33, of Boynton Beach, FL – Team Leader at CCE
• Timothy James Miller, II, 28, of Schwenksville, PA – Salesperson at CCE
• Jonathan Matthew Richardson, 28, of Lake Worth, FL – Salesperson at CCE
• Kyle Evan Swinson, 27, of Boynton Beach, FL – Team Leader at ABC/CCE
Date Defendant Prison Sentence Restitution Mar. 8, 2018 Ryan Carr 12 months + 1 day $20,384.36 May 7, 2018 Joshua Cortez 18 months $3,034.00 June 8, 2018 Patrick Dougherty 12 months + 1 day $240,966.94 June 14, 2018 Anthony Ludena 12 months + 1 day $176,692.26 June 29, 2018 Nicholas Davidson 5 years probation $181,808.40 July 26, 2018 Timothy Miller 5 years probation + 200 hours
Eleven of these additional defendants have been sentenced already:
community service $127,042.06 Aug. 3, 2018 Tatum Espenshade 1 day + 18 months home detention $132,683.68 Sept. 11, 2018 Andrew Broad 12 months + 1 day $55,238.28 Sept. 20, 2018 Jonathan Richardson 12 months + 1 day $78,638.99 Oct. 4, 2018 Cory Bachman 1 day $156,806.25 Oct. 10, 2019 Joseph Aievoli 1 day $106,355.82
Because the crimes allegedly took place in connection with telemarketing and victimized 10 or more
persons over the age of 55, the maximum punishment in each case is 30 years imprisonment. The
defendants could also be ordered to serve up to five years of supervised release and pay a fine of
up to $250,000. Under federal law, restitution to identified victims is mandatory.These cases are part of an ongoing investigation by the St. Louis Field Office of the Chicago
Division of the United States Postal Inspection Service and are being prosecuted by Assistant
United States Attorneys Nathan D. Stump, Scott A. Verseman, and Ranley R. Killian.The Florida Attorney General’s Office raided CCE in June 2016 and has been cooperating with the
federal investigation, in addition to bringing its own civil enforcement action against CCE under
Florida state law.The Federal Trade Commission has been working for some time to shut down illegal tech support
scams. For more information about the FTC’s “2019 Tech Support Takedown,” please visit
https://www.consumer.ftc.gov/blog/2019/03/ftcs-tech-support-takedown-2019.Some consumers who were victimized by ABC or CCE / First Choice Tech Support have
received additional fraudulent calls. These calls typically come from companies claiming either
(a) that the technical support the victims purchased has been transferred to them and additional
funds are now needed; or (b) that they can help the victims obtain a refund. Victims should be
advised that no companies have been authorized to provide them with any tech support services on
behalf of ABC or CCE / First Choice Tech Support, or to provide them with a refund for any
previous purchases.Aliquippa Felon Sentenced to 10 Years for Illegally Possessing Fentanyl and a Stolen PistolRead the Press Release
PITTSBURGH, Pa. – A former resident of Beaver County, Pennsylvania, has been sentenced in federal court to serve a total sentence of 10 years’ imprisonment on his conviction for violating the federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Joy Flowers Conti imposed the sentence on Landon Alexander Gatta, age 24, formerly of Aliquippa, for the crimes of possession with intent to distribute 40 grams or more of fentanyl, possession of a firearm and ammunition by a convicted felon, and possession of a firearm in furtherance of a drug trafficking crime.
According to information presented to the Court, on November 5, 2018, the Pennsylvania State Police Bureau of Criminal Investigation Unit served a search warrant at the Defendant’s residence located on McLean Street in Aliquippa, Beaver County, Pennsylvania, as part of an ongoing narcotics investigation. There, investigators recovered approximately fifty (50) grams of a fentanyl-heroin mixture, a large sum of U.S. currency, and a loaded, stolen .40 caliber semi-automatic Glock pistol, which Gatta admitted to possessing in furtherance of the charged drug trafficking crime. Federal law prohibits Gatta, a felon previously convicted in the Court of Common Pleas of Allegheny County of the crime of possession with intent to distribute heroin, from possessing a firearm or ammunition.
The Court further ordered that following the Defendant’s release from incarceration, he be placed on a term of supervised release for a period of four years and that certain property be forfeited to the United States, namely the seized .40 caliber Glock pistol, the .40 caliber ammunition, and approximately $70,000 in U.S. Currency that was recovered by the Pennsylvania State Police during the investigation.
Assistant United States Attorney Jerome A. Moschetta prosecuted this case on behalf of the government.
United States Attorney Brady commended the Pennsylvania State Police Bureau of Criminal Investigation Unit for the investigation leading to the successful prosecution of Landon Gatta.
Alabama Man Pleads Guilty to Enticing a Minor for SexRead the Press Release
KANSAS CITY, Mo. – An Alabama man pleaded guilty in federal court today to enticing a 16-year-old victim, whom he met through the “Game of War” application on her cell phone, to engage in illegal sexual activity.
James Reece Vance, 46, of Madison, Ala., pleaded guilty before U.S. Chief District Judge Beth Phillips.
The investigation began when the child victim’s father discovered emails between Vance and his daughter. The emails, from March 7 through May 8, 2017, contained numerous exchanges where she and Vance discussed getting together, having sexual intercourse, and future plans to get married. The child victim told investigators she met Vance through the “Game of War” application on her cell phone. Vance drove to Kansas City twice during April 2017 to meet the child victim for sex.
Under federal statutes, Vance is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."19-year-old sentenced as drug dealer in meth trafficking schemeRead the Press Release
CORPUS CHRISTI, Texas – A 19-year-old Beeville resident has been ordered to federal prison following his conviction of possession with intent to distribute meth, announced U.S. Attorney Ryan K. Patrick.
Margarito Keller pleaded guilty May 30.
Today, U.S. District Judge Nelva Gonzales Ramos sentenced Keller to 120 months in federal prison to be immediately followed by five years of supervised release. At the hearing, the court heard additional testimony that Keller has been involved with using, possessing and distributing drugs since he was 14. In handing down the sentence, the court noted Keller’s age, but that the law demanded the sentence imposed.
On Nov. 15, 2018, authorities took Keller into custody for distributing a controlled substance. During that arrest, law enforcement officers observed a portable safe next to Keller in his vehicle.
Upon inspection, they recovered several baggies containing a total of approximately 55 grams of meth, most of which was considered “pure.” They also recovered a loaded Taurus .38 caliber pistol and a digital scale.
Keller admitted the meth, weapon and scale all belonged to him.
The Drug Enforcement Administration conducted the investigation in conjunction with the Beeville Police Department. Assistant U.S. Attorney Vincent Tang prosecuted the case.
Tuesday 15 October 2019
Wichita Man Sentenced for Threatening Operation Rescue workerRead the Press Release
WICHITA, KAN. – A Wichita man was sentenced today to 12 months and a day in prison for threatening an employee of the pro-life organization Operation Rescue, U.S. Attorney Stephen McAllister said.
Christopher M. Thompson, 22, Wichita, Kan., pleaded guilty of one count of making a threat. In his plea, he admitted making three phone calls to Operation Rescue in one day containing threats against the group’s employees.
McAllister commended the FBI, the Wichita Police Department and Assistant U.S. Attorney Jason Hart for their work on the case.
Wichita Lawyer Pleads GuiltyTo Being Involved in CyberattackRead the Press Release
WICHITA, KAN. – A Wichita lawyer was sentenced today after pleading guilty to being involved in a cyberattack, U.S. Attorney Stephen McAllister said. He was ordered to pay a $375,000 fine and restitution of $55,200.
Bradley A. Pistotnik, 63, Wichita, Kan., pleaded guilty to three counts of being an accessory after the fact to making an extortionate threat over the internet. In his plea, Pistotnik admitted he was contacted by attorneys from the legal firm Jaburg Wilk and Ripoff Report regarding cyberattacks launched against Ripoff Report, Jaburg Wilk and Leagle. He falsely denied knowing anything about the attacks.
In fact, Pistotnik knew co-defendant David Dorsett had initiated a flood of emails against the servers used by Leagle, RipoffReport and Jaburg Wilk. Dorsett had met previously with Pistonik offering web design and reputation management services. Dorsett sent emails demanding the removal of information that reflected badly on Pistotnik from their web sites. In one of the threatening emails, Dorsett said, “… if you don’t remove it we will begin targeting your advertisers…”
McAllister commended the FBI and Assistant U.S. Attorney Jason Hart for their work on the case.
U.S. Attorney Appoints Decorated LMPD Officer as District’s New Law Enforcement CoordinatorRead the Press Release
LOUISVILLE, Ky. – United States Attorney Russell Coleman announced today the appointment of Sergeant Eric Black (Retired), previously of the Louisville Metro Police Department (LMPD), as the U.S. Attorney’s new Law Enforcement Coordinator for the Western District of Kentucky.
“We back the blue, both because our culture seeks to be humble partners with law enforcement and pursuant to one of the very first executive orders from President Trump,” said U.S. Attorney Russell Coleman. “I could not be more pleased that one of Louisville’s Finest, Sgt. Eric Black, will be an important part of furthering our mission of reducing violent crime in this city and helping federal law enforcement to be relevant in all 53 counties of our district.”
Prior to his recent retirement from LMPD, Sgt. Black led a multi-agency High Intensity Drug Trafficking Area (HIDTA) Drug Task Force, which included detectives from LMPD, the Jefferson County Sheriff’s Office, and the Kentucky State Police. To honor his leadership in this role, the four-state Appalachia HIDTA comprised of Kentucky, Tennessee, Virginia, and West Virginia named Sgt. Black its 2018 Task Force Officer of the Year. Black held previous assignments as the commander of LMPD’s Robbery Unit, Commander of an LMPD Narcotics Street Platoon, and a Detective with an LMPD Major Case Unit. Sgt. Black was initially hired as a Police Officer with the Jefferson County Police Department in 1995.
As Law Enforcement Coordinator and part of the U.S Attorney’s leadership team, Sgt. Black’s duties will involve advising the U.S. Attorney on state and local law enforcement issues throughout the 53 counties comprising the Western District of Kentucky which stretches from suburban Louisville to the river counties west of Paducah. Black will also serve as a liaison and conduit for state and local law enforcement agencies to bring cases for possible federal prosecution, with an emphasis on reduction of violent crime.
Previous Western District of Kentucky Law Enforcement Coordinators have included Jeremy Thompson, now Chief of the Elizabethtown (KY) Police Department, and Brett Hightower, now Warren County (KY) Sheriff.
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Two New Jersey Men Sentenced to Prison for Bribing Mail Carriers to Steal Credit CardsRead the Press Release
NEWARK, N.J. – Two New Jersey men were sentenced today to prison terms for their roles in a scheme to bribe mail carriers to steal credit cards from the mail, U.S. Attorney Craig Carpenito announced.
Olagoke Araromi, 22, of Union, New Jersey, was sentenced to 61 months in prison. He previously pleaded guilty before U.S. District Judge Katharine S. Hayden to a three-count information charging him with bribery of U.S. Postal Service (USPS) mail carriers, bank fraud and aggravated identity theft.
Moussa Dagno, 24, of Harrison, New Jersey, was sentenced to 57 months in prison. He previously pleaded guilty before Judge Hayden to an information charging him with one count each of bribery of USPS mail carriers and employees, bank fraud and aggravated identity theft. Judge Hayden imposed both sentences today in Newark federal court.
According to documents filed in the case and statements made in court:
Araromi and Dagno recruited at least a half dozen USPS mail carriers and employees to steal credit cards from the mail in exchange for cash bribes, typically $100 per stolen card. Once Araromi had taken possession of the stolen credit cards and activated them, he and Dagno would use the cards to purchase high-end electronics and clothing at various retail stores throughout New Jersey. In February 2018, law enforcement seized six laptops and a smartphone from the Harrison residence then shared by Araromi and Dagno, all of which had been purchased with the stolen credit cards.
Several USPS employees who accepted bribes from Araromi and Dagno have already pleaded guilty to bribery charges, including: former mail carriers Zenobia Gilmer, Ayesha Troztz and Kyanne Costley, who had delivery routes in Mt. Arlington, East Orange and Elizabeth, New Jersey; and Jennel Williams, who formerly worked as a clerk in the Newark Main Post Office. All four admitted to stealing credit cards from the mail and delivering them to Araromi or Dagno in exchange for payments, and all are awaiting sentencing. A fifth mail carrier from Jersey City, Jacquan Miller, has been charged by complaint for his role in the scheme.
In addition to the prison term, Judge Hayden sentenced Araromi and Dagno to five years of supervised release and ordered restitution of $87,503 for Olagoke and $84,573 for Araromi.
U.S. Attorney Carpenito credited special agents with the USPS Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office, and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn in Newark, with the investigation leading to today’s sentencings.
The government is represented by Assistant U.S. Attorneys Mark J. McCarren and Jihee G. Suh of the U.S. Attorney’s Special Prosecutions Division in Newark.
The charges and allegations against Jacquan Miller are merely accusations, and he is presumed innocent unless and until proven guilty.
Two Men Plead Guilty to Meth DistributionRead the Press Release
HUNTINGTON, W.Va. – Two men pled guilty today to possession with intent to distribute methamphetamine before United States District Judge Robert C. Chambers in Huntington, announced United States Attorney Mike Stuart.
“Law enforcement officers are finding meth dealers in every county in my District,” said United States Attorney Mike Stuart. “And we’re prosecuting them in record numbers.”
Johnny Belcher, Jr., 35, of Huntington, admitted that on July 17, 2019, officers found approximately 24 grams of methamphetamine in his pockets. Belcher told the officers the substance was “ice.” The Huntington Police Department conducted the investigation. Assistant United States Attorney Stephanie S. Taylor is handling the prosecution.
In a separate case, Walter Ray Cavender, age 50, of Mason County, admitted that on May 16, 2018, officers served a search warrant at his home on Evans Road in Leon, Mason County, West Virginia. At the time they served the search warrant, Cavender had approximately 300 grams of methamphetamine in his home which he intended to sell. He also had digital scales and approximately $1300 in cash. The Mason County Sheriff’s Department conducted the investigation. Assistant United States Attorney Greg McVey is handling the prosecution.
Belcher faces up to 20 years in prison and Cavender faces up to 40 years in prison when sentenced on January 21, 2020.
Follow us on Twitter: SDWVNews and USAttyStuart
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Two International Shipping Companies Pay $1.8 Million for Failing to Notify the Coast Guard of a Hazardous Vessel Condition and Concealing Vessel Oil PollutionRead the Press Release
Two shipping companies incorporated in Liberia pled guilty today in federal court in Wilmington, Delaware, to failing to notify the U.S. Coast Guard of a hazardous condition on one if its vessels and to violating the Act to Prevent Pollution from Ships (APPS) by presenting false documents to the Coast Guard that covered up vessel oil pollution.
Jeffrey Bossert Clark, Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division and David C. Weiss, U.S. Attorney for the District of Delaware announced the plea agreement. The agreement includes a $1.8 million dollar criminal penalty.
Defendants Nederland Shipping Company and Chartworld Shipping Company are the owner and operator of the 13,049 gross ton, ocean-going, refrigerated cargo/container vessel called the M/V NEDERLAND REEFER. Large ships like the M/V NEDERLAND REEFER generate oil-contaminated bilge waste when water mixes in the bottom or bilges of the ship with oil that has leaked from the ship’s engines and other areas. This waste must be processed to separate the water from the oil and other wastes by using pollution prevention equipment, including an Oily Water Separator (OWS), before being discharged into the sea. APPS requires that the disposal of the ship’s bilge waste be recorded in the ship’s Oil Record Book (ORB).
The investigation began on Feb. 21, 2019, when the Coast Guard’s Marine Safety Detachment out of Lewes, Delaware, conducted a Port State Control Examination of the M/V NEDERLAND REEFER. During the course of the inspection, the Coast Guard determined that the vessel’s Chief Engineer, Vasileios Mazarakis, had been repeatedly tricking the oil content monitoring device on the vessel’s OWS with fresh water thereby discharging untreated oily bilge water overboard at sea. Mazarakis then falsified the vessel’s ORB to conceal these illegal discharges from the Coast Guard.
On Oct. 2, 2019, Chief Engineer Vasileios Mazarakis pled guilty to a violation of the APPS for his falsification of the ORB. As part of his guilty plea, Mazarakis also admitted that he took various actions to obstruct the Coast Guard’s investigation, including destruction of evidence and witness tampering.
The Coast Guard’s investigation also determined that on Dec. 30, 2018, seawater began entering the vessel below the waterline through a hole in the vessel’s Bilge Holding Tank. This compromise of the hull’s integrity and the temporary repairs thereto, constituted a hazardous condition that Defendants failed to report to the Coast Guard.
Under the plea agreement, the companies will be placed on a four-year term of probation that includes a comprehensive environmental compliance plan to ensure, among other things, that ships operated by Chartworld entering the United States fully comply with all applicable national and international marine environmental protection laws. The compliance plan will be implemented by an independent auditing company and supervised by a court-appointed monitor.
Trial Attorneys David P. Kehoe and Stephen Da Ponte at the Environmental Crimes Section of the Department of Justice and Assistant U.S. Attorney Edmund Falgowski of the District of Delaware prosecuted the case. The case was investigated by the Coast Guard’s Investigative Service.
Two Dominican Nationals Charged with Distributing FentanylRead the Press Release
BOSTON – Two Dominican nationals were indicted today in federal court in Boston with distributing fentanyl.
Jose Guerrero-Soto, 25, and Yokasta Aybar-Soto, 26, both of the Dominican Republic, were indicted on distribution of and possession with intent to distribute 40 grams or more of fentanyl, as well as on conspiracy to distribute and to possess with intent to distribute 40 grams of more of fentanyl. Guerrero-Soto and and Aybar-Soto were initially charged by criminal complaint and have been in custody since Sept. 12, 2019.
The indictments allege that Guerrero-Soto and Aybar-Soto sold over 40 grams of fentanyl to an undercover officer in Lawrence on Sept. 12, 2019.
The charging statutes provide for a mandatory minimum sentence of five years and up to 40 years in prison, at least four years of supervised release, and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; Massachusetts Attorney General Maura Healey; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement. Assistant U.S. Attorney James R. Drabick of Lelling’s Criminal Division is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Chinese Nationals Charged with Stock Spoofing ConspiracyRead the Press Release
BOSTON – Two Chinese nationals were charged today for their alleged participation in a complex market manipulation conspiracy.
Xiaosong Wang, 31, and Jiali Wang, 41, both of the People’s Republic of China, were charged with one count of conspiracy to commit securities fraud. Jiali Wang was arrested yesterday evening at Logan International Airport as he was boarding a flight to Beijing. Xiaosong Wang was arrested at a home he owns in Upton, Mass. Both defendants will appear in U.S. District Court in Boston today at 3:00 p.m.
According to the criminal complaint, Xiaosong Wang, Jiali Wang, and others conspired and engaged in a coordinated stock manipulation scheme that artificially influenced the prices of publicly traded securities by making others in the market believe that there was trading interest and activity in particular stocks. In reality, no such interest or trading activity existed, and the defendants profited from the price movements they caused.
The alleged scheme targeted “thinly-traded” securities, which are securities with a low trading volume that are volatile and highly responsive to buying/selling activity. The defendants are alleged to have placed (or coordinated the placement of) thousands of non-bona fide purchase/sell orders in order to move stock prices up or down. After the prices moved and the defendants purchased/sold the securities at the artificially higher/lower prices, the initial orders were cancelled. Defendants and their co-conspirators are alleged to have profited millions of dollars as a result of the stock price spoofing scheme.
The charge of conspiracy provides for a sentence of up to five years in prison, three years of supervised release, and a fine of $250,000, or twice the gross gain or loss. 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 and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office made the announcement today. Valuable assistance was provided by the Securities and Exchange Commission. Assistant U.S. Attorney Jordi de Llano, Deputy Chief of Lelling’s Securities & Financial Fraud Unit and Assistant U.S. Attorney David D’Addio of Lelling’s Cybercrime Unit are prosecuting the case.
The details contained in charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Cedar Rapids Felons on Way to Shooting Range Sentenced to Federal Prison for Possessing a GunRead the Press Release
Two Cedar Rapids men, responsible for possessing a gun when they were prohibited from doing so, were sentenced October 10, 2019. Jontreyvius Richmond was sentenced to 24 months in prison and Darnell Henderson was sentenced to 31 months in prison.
Jontreyvius Richmond, age 21, from Cedar Rapids, Iowa, and Darnell Henderson, age 23, received the prison sentences after June 10, 2019 guilty pleas to possession of a firearm by a felon.
Information disclosed at sentencing and at their plea hearings showed that
in October 2018, Richmond, Henderson, and another man were travelling to a firing range near Solon, Iowa, to shoot a gun they had in the car. Richmond was driving. Police conducted a traffic stop on the car. Officers could smell marijuana and see marijuana in the car. Officers searched the care and located a .22 caliber rifle and ammunition in the trunk. Richmond admitted that he had recently smoked marijuana and that he and his friends were travelling to the firing range to shoot the rifle. The gun had been in the passenger compartment of the car prior to officers stopping it, but as they were being pulled over, the occupants passed it back to the trunk.
Richmond has a prior carrying weapons conviction. He also has a felony conviction for extortion. Henderson has a prior felony conviction for possession with intent to deliver a controlled substance.
Richmond and Henderson were sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Richmond was sentenced to 24 months’ imprisonment. Henderson was sentenced to 31 months’. Both were ordered to make payment of $100 to the special assessment fund. Both must also serve a 3-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 Ashley Corkery. This case was brought as part of Project Safe Neighborhoods (PSN) through a cooperative effort of the Johnson County Sheriff’s Office, Cedar Rapids Police Department, Federal Bureau of Investigation, and Bureau of Alcohol, Tobacco, and Firearms. 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-00041.
Follow us on Twitter @USAO_NDIA.
Turkish Bank Charged in Manhattan Federal Court for Its Participation in a Multibillion-Dollar Iranian Sanctions Evasion SchemeRead the Press Release
The Department of Justice announced that TÜRKİYE HALK BANKASI A.S., aka “Halkbank,” was charged today in a six-count indictment with fraud, money laundering, and sanctions offenses related to the bank’s participation in a multibillion-dollar scheme to evade U.S. sanctions on Iran. The case is assigned to United States District Judge Richard M. Berman.
“Halkbank, a Turkish state-owned bank, allegedly conspired to undermine the United States Iran sanctions regime by illegally giving Iran access to billions of dollars’ worth of funds, all while deceiving U.S. regulators about the scheme,” said Assistant Attorney General for National Security John C. Demers. “This is one of the most serious Iran sanctions violations we have seen, and no business should profit from evading our laws or risking our national security.”
“The facts that emerged at the full, fair, and public trial of Halkbank’s deputy general manager, which culminated in a jury’s January 2018 guilty verdict against him, illustrated senior Halkbank management’s participation in this brazen scheme to circumvent our nation’s Iran sanctions regime," said U.S. Attorney Geoffrey S. Berman. "As alleged in today’s indictment, Halkbank’s systemic participation in the illicit movement of billions of dollars’ worth of Iranian oil revenue was designed and executed by senior bank officials. The bank’s audacious conduct was supported and protected by high-ranking Turkish government officials, some of whom received millions of dollars in bribes to promote and protect the scheme. Halkbank will now have to answer for its conduct in an American court.”
“As we allege today, Halkbank, a Turkish financial institution whose majority shareholder is the government of Turkey, willfully engaged in deceptive activities designed to evade U.S. sanctions against Iran," said FBI Assistant Director-in-Charge William F. Sweeney Jr. "Halkbank illegally facilitated the illicit transfer of billions of dollars to benefit Iran, and for far too long the bank and its leaders willfully deceived the United States to shield their actions from scrutiny. That deception ends today. The FBI will aggressively pursue those who intentionally violate U.S. sanctions laws and attempt to undercut our national security.”
According to the allegations in the indictment, returned today in Manhattan federal court:
From approximately 2012, up to and including approximately 2016, TÜRKİYE HALK BANKASI A.S. (Halkbank) was a foreign financial institution organized under the laws of and headquartered in Turkey. The majority of Halkbank’s shares are owned by the Government of Turkey. Halkbank and its officers, agents, and co-conspirators directly and indirectly used money service businesses and front companies in Iran, Turkey, the United Arab Emirates, and elsewhere to violate and to evade and avoid prohibitions against Iran’s access to the U.S. financial system, restrictions on the use of proceeds of Iranian oil and gas sales, and restrictions on the supply of gold to the Government of Iran and to Iranian entities and persons. Halkbank knowingly facilitated the scheme, participated in the design of fraudulent transactions intended to deceive U.S. regulators and foreign banks, and lied to U.S. regulators about Halkbank’s involvement.
High-ranking government officials in Iran and Turkey participated in and protected this scheme. Some officials received bribes worth tens of millions of dollars paid from the proceeds of the scheme so that they would promote the scheme, protect the participants, and help to shield the scheme from the scrutiny of U.S. regulators.
The proceeds of Iran’s sale of oil and gas to Turkey’s national oil company and gas company, among others, were deposited at Halkbank, in accounts in the names of the Central Bank of Iran, the National Iranian Oil Company (NIOC), and the National Iranian Gas Company. During the relevant time period, Halkbank was the sole repository of proceeds from the sale of Iranian oil by NIOC to Turkey. Because of U.S. sanctions against Iran and the anti-money laundering policies of U.S. banks, it was difficult for Iran to access these funds in order to transfer them back to Iran or to use them for international financial transfers for the benefit of Iranian government agencies and banks. As of in or about 2012, billions of dollars’ worth of funds had accumulated in NIOC and the Central Bank of Iran’s accounts at Halkbank.
Halkbank participated in several types of illicit transactions for the benefit of Iran that, if discovered, would have exposed the bank to sanctions under U.S. law, including (i) allowing the proceeds of sales of Iranian oil and gas deposited at Halkbank to be used to buy gold for the benefit of the Government of Iran; (ii) allowing the proceeds of sales of Iranian oil and gas deposited at Halkbank to be used to buy gold that was not exported to Iran, in violation of the so-called “bilateral trade” rule; and (iii) facilitating transactions fraudulently designed to appear to be purchases of food and medicine by Iranian customers, in order to appear to fall within the so-called “humanitarian exception” to certain sanctions against the Government of Iran, when in fact no purchases of food or medicine actually occurred. Through these methods, Halkbank illicitly transferred approximately $20 billion worth of otherwise restricted Iranian funds.
Senior Halkbank officers acting within the scope of their employment and for the benefit of Halkbank concealed the true nature of these transactions from officials with the U.S. Department of the Treasury so that Halkbank could supply billions of dollars’ worth of services to the Government of Iran without risking being sanctioned by the United States and losing its ability to hold correspondent accounts with U.S. financial institutions.
The purpose and effect of the scheme in which Halkbank participated was to create a pool of Iranian oil funds in Turkey and the United Arab Emirates held in the names of front companies, which concealed the funds’ Iranian nexus. From there, the funds were used to make international payments on behalf of the Government of Iran and Iranian banks, including transfers in U.S. dollars that passed through the U.S. financial system in violation of U.S. sanctions laws.
Halkbank is charged with (1) conspiracy to defraud the United States, (2) conspiracy to violate the International Emergency Economic Powers Act (IEEPA), (3) bank fraud, (4) conspiracy to commit bank fraud, (5) money laundering, and (6) conspiracy to commit money laundering.
The Department of Justice has previously charged nine individual defendants, including bank employees, the former Turkish Minister of the Economy, and other participants in the scheme. See S4 15 Cr. 867 (RMB). On Oct. 26, 2017, Reza Zarrab pled guilty to the seven counts with which he was charged. On Jan. 3, 2018, a jury convicted former Halkbank deputy general manager Memet Hakkan Atilla of five of the six counts with which he was charged, following a five-week jury trial. The remaining individual defendants are fugitives.
Assistant Attorney General Demers and U.S. Attorney Berman praised the outstanding investigative work of the FBI and its New York Field Office, Counterintelligence Division, and the Department of Justice, National Security Division, Counterintelligence and Export Control Section.
This case is being handled by the Office’s Terrorism and International Narcotics Unit and Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Michael D. Lockard, Sidhardha Kamaraju, David W. Denton Jr., Jonathan Rebold, and Kiersten Fletcher are in charge of the prosecution.
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Turkish Bank Charged in Manhattan Federal Court for Its Participation in A Multibillion-Dollar Iranian Sanctions Evasion SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, John C. Demers, the Assistant Attorney General for National Security, and William F. Sweeney Jr., the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced that TÜRKİYE HALK BANKASI A.S., a/k/a “Halkbank,” was charged today in a six-count Indictment with fraud, money laundering, and sanctions offenses related to the bank’s participation in a multibillion-dollar scheme to evade U.S. sanctions on Iran. The case is assigned to United States District Judge Richard M. Berman.
U.S. Attorney Geoffrey S. Berman stated: “The facts that emerged at the full, fair, and public trial of Halkbank’s deputy general manager, which culminated in a jury’s January 2018 guilty verdict against him, illustrated senior Halkbank management’s participation in this brazen scheme to circumvent our nation’s Iran sanctions regime. As alleged in today’s indictment, Halkbank’s systemic participation in the illicit movement of billions of dollars’ worth of Iranian oil revenue was designed and executed by senior bank officials. The bank’s audacious conduct was supported and protected by high-ranking Turkish government officials, some of whom received millions of dollars in bribes to promote and protect the scheme. Halkbank will now have to answer for its conduct in an American court.”
Assistant Attorney General for National Security John C. Demers said: “Halkbank, a Turkish state-owned bank, allegedly conspired to undermine the United States Iran sanctions regime by illegally giving Iran access to billions of dollars’ worth of funds, all while deceiving U.S. regulators about the scheme. This is one of the most serious Iran sanctions violations we have seen, and no business should profit from evading our laws or risking our national security.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “As we allege today, Halkbank, a Turkish financial institution whose majority shareholder is the government of Turkey, willfully engaged in deceptive activities designed to evade U.S. sanctions against Iran. Halkbank illegally facilitated the illicit transfer of billions of dollars to benefit Iran, and for far too long the bank and its leaders willfully deceived the United States to shield their actions from scrutiny. That deception ends today. The FBI will aggressively pursue those who intentionally violate U.S. sanctions laws and attempt to undercut our national security.”
According to the allegations in the Indictment, returned today in Manhattan federal court[1]:
From approximately 2012, up to and including approximately 2016, TÜRKİYE HALK BANKASI A.S. (“Halkbank”) was a foreign financial institution organized under the laws of and headquartered in Turkey. The majority of Halkbank’s shares are owned by the Government of Turkey. Halkbank and its officers, agents, and co-conspirators directly and indirectly used money service businesses and front companies in Iran, Turkey, the United Arab Emirates, and elsewhere to violate and to evade and avoid prohibitions against Iran’s access to the U.S. financial system, restrictions on the use of proceeds of Iranian oil and gas sales, and restrictions on the supply of gold to the Government of Iran and to Iranian entities and persons. Halkbank knowingly facilitated the scheme, participated in the design of fraudulent transactions intended to deceive U.S. regulators and foreign banks, and lied to U.S. regulators about Halkbank’s involvement.
High-ranking government officials in Iran and Turkey participated in and protected this scheme. Some officials received bribes worth tens of millions of dollars paid from the proceeds of the scheme so that they would promote the scheme, protect the participants, and help to shield the scheme from the scrutiny of U.S. regulators.
The proceeds of Iran’s sale of oil and gas to Turkey’s national oil company and gas company, among others, were deposited at Halkbank, in accounts in the names of the Central Bank of Iran, the National Iranian Oil Company (“NIOC”), and the National Iranian Gas Company. During the relevant time period, Halkbank was the sole repository of proceeds from the sale of Iranian oil by NIOC to Turkey. Because of U.S. sanctions against Iran and the anti-money laundering policies of U.S. banks, it was difficult for Iran to access these funds in order to transfer them back to Iran or to use them for international financial transfers for the benefit of Iranian government agencies and banks. As of in or about 2012, billions of dollars’ worth of funds had accumulated in NIOC and the Central Bank of Iran’s accounts at Halkbank.
Halkbank participated in several types of illicit transactions for the benefit of Iran that, if discovered, would have exposed the bank to sanctions under U.S. law, including (i) allowing the proceeds of sales of Iranian oil and gas deposited at Halkbank to be used to buy gold for the benefit of the Government of Iran; (ii) allowing the proceeds of sales of Iranian oil and gas deposited at Halkbank to be used to buy gold that was not exported to Iran, in violation of the so-called “bilateral trade” rule; and (iii) facilitating transactions fraudulently designed to appear to be purchases of food and medicine by Iranian customers, in order to appear to fall within the so-called “humanitarian exception” to certain sanctions against the Government of Iran, when in fact no purchases of food or medicine actually occurred. Through these methods, Halkbank illicitly transferred approximately $20 billion worth of otherwise restricted Iranian funds.
Senior Halkbank officers, acting within the scope of their employment and for the benefit of Halkbank, concealed the true nature of these transactions from officials with the U.S. Department of the Treasury so that Halkbank could supply billions of dollars’ worth of services to the Government of Iran without risking being sanctioned by the United States and losing its ability to hold correspondent accounts with U.S. financial institutions.
The purpose and effect of the scheme in which Halkbank participated was to create a pool of Iranian oil funds in Turkey and the United Arab Emirates held in the names of front companies, which concealed the funds’ Iranian nexus. From there, the funds were used to make international payments on behalf of the Government of Iran and Iranian banks, including transfers in U.S. dollars that passed through the U.S. financial system in violation of U.S. sanctions laws.
* * *
Halkbank is charged with (1) conspiracy to defraud the United States, (2) conspiracy to violate the International Emergency Economic Powers Act (“IEEPA”), (3) bank fraud, (4) conspiracy to commit bank fraud, (5) money laundering, and (6) conspiracy to commit money laundering.
The Office has previously charged nine individual defendants, including bank employees, the former Turkish Minister of the Economy, and other participants in the scheme. See S4 15 Cr. 867 (RMB). On October 26, 2017, Reza Zarrab pled guilty to the seven counts with which he was charged. On January 3, 2018, a jury convicted former Halkbank deputy general manager Memet Hakkan Atilla of five of the six counts with which he was charged, following a five-week jury trial. The remaining individual defendants are fugitives.
Mr. Berman praised the outstanding investigative work of the FBI and its New York Field Office, Counterintelligence Division, and the Department of Justice, National Security Division, Counterintelligence and Export Control Section.
This case is being handled by the Office’s Terrorism and International Narcotics Unit and Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Michael D. Lockard, Sidhardha Kamaraju, David W. Denton Jr., Jonathan Rebold, and Kiersten Fletcher are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment constitute only allegations, and every fact described should be treated as an allegation.
Students Across South Carolina to Participate in State’s 18th Annual National Day of Concern & Student Pledge Against Gun ViolenceRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon announced today that on Wednesday, October 16, 2019, the United States Attorney’s Office, along their local, state, and federal law enforcement partners, will visit schools across South Carolina to meet with students as a part of South Carolina’s 18th annual Student Pledge Against Gun Violence. With a focus on keeping schools and communities safe, students in middle school and high school are signing a voluntary pledge promising that they will never take a gun to school, will never resolve a dispute with a gun, and will use their influence to prevent friends from using guns to resolve disputes. Elementary school children are pledging that if they see a gun they will not touch it, they will tell a teacher or a trusted adult, and they will assume that any gun they see might be loaded.
The Student Pledge Against Gun Violence is a national program that recognizes the role young people, through their own decisions, can play in reducing gun violence. The program provides a means for beginning the conversation with young people about gun violence and encourages important conversation among students about gun safety and respectful ways to resolve disputes. Students from around the country will join together in pledging to do their part. For additional information concerning the pledge, visit the national Student Pledge website at www.pledge.org.
As it has done since 2002, the U.S. Attorney’s Office reached out to all South Carolina law enforcement agencies and schools to make the pledges available to interested schools. This pledge effort is part Project Safe Neighborhoods (PSN), 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.
The following South Carolina schools and law enforcement agencies are participating in this year’s pledge on October 16. For information on events scheduled for a particular school, please contact the specific school or law enforcement agency.
Participating Law Enforcement Agencies
Beaufort Police Department
Berkeley County Sheriff’s Office
Charleston County Sheriff’s Office
Columbia Police Department
Florence County Sheriff’s Department
Greer Police Department
Hampton County Sheriff’s Office
Hardeeville Police Department
Marion County Sheriff’s Department
Myrtle Beach Police Department
Richland County Sheriff’s Department
Summerville Police Department
Participating Schools
Aiken Scholars Academy - Aiken
Battery Creek High School - Beaufort
Beaufort Middle School – Beaufort
Brunson Elementary School - Hampton
Cheraw Intermediate School - Cheraw
Eau Clair High School - Columbia
Edward E. Taylor Elementary School – Richland
Forest Heights Elementary School – Columbia
Ft. Dorchester High School – Dorchester
Greer High School – Greenville
Greg Mathis Charter High School - Charleston
Hardeeville Elementary School - Ridgeland
Hardeeville-Ridgeland Middle School – Ridgeland
John P. Thomas Elementary School - Richland
Lady’s Island Middle School – Beaufort
Lake City High School – Florence
Limestone Central Elementary School - Gaffney
Macedonia Middle School – Berkeley
McCormick Elementary School – McCormick
McCormick High School - McCormick
Myrtle Beach Middle School – Horry
Myrtle Beach High School – Horry
Northwest Elementary School – Cherokee
Oakbrook Middle School – Charleston
Ocean Drive Elementary School – Horry
St. James – Santee Elementary Middle School - McClellanville
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Staten Island Heroin Dealer Sentenced to 23 Years in Prison for Overdose Death of 26-Year-Old ManRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that PAUL VAN MANEN was sentenced today to 23 years in prison for conspiring to distribute heroin and fentanyl that resulted in the death of Michael Ogno, a 26-year-old man from Staten Island, New York, and the serious bodily injury of another individual. A unanimous jury convicted VAN MANEN in May 2019 after an eight-day trial before United States District Judge Paul A. Crotty.
U.S. Attorney Geoffrey S. Berman said: “Paul Van Manen peddled the fentanyl-laced heroin that caused the death of Michael Ogno. He made that sale fully aware that the same formulation had caused a nonfatal overdose just two months prior. The lengthy sentence should send a message to those who sell lethal drugs like fentanyl.”
According to court documents and the evidence at trial:
From at least in or about 2013 up to and including in or about January 2018, VAN MANEN sold heroin, including heroin laced with fentanyl, to customers on Staten Island and in New Jersey. On October 4, 2017, VAN MANEN drove a co-conspirator (“CC-1”) to Brooklyn, New York, where they both obtained heroin from the conspiracy’s primary supplier, Medin Kosic. The next morning, CC-1 overdosed after using some of the narcotics, which were subsequently found to be laced with fentanyl. Despite knowing about this overdose, VAN MANEN continued to sell heroin – including heroin laced with fentanyl – to members of the Staten Island community. On December 1, 2017, VAN MANEN sold heroin to Michael Ogno, a 26-year-old resident of Staten Island. Ogno used the heroin, which again was laced with fentanyl, and died from an overdose. VAN MANEN continued to sell heroin after Ogno’s death.
* * *
In addition to the prison sentence, PAUL VAN MANEN, 51, of Staten Island and South Amboy, New Jersey, was sentenced to five years of supervised release.
U.S. Attorney Geoffrey S. Berman praised the outstanding work of the New York Drug Enforcement Administration Strike Force, the New York City Police Department, and the Richmond County District Attorney’s Office.
This case is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Catherine Ghosh, Ryan Finkel, Jessica Fender, and Stephanie Lake are in charge of the prosecution.
St. Croix Man Arrested for Allegedly Providing a False Statement and Concealing a Person from a Federal ArrestRead the Press Release
St. Croix, USVI – United States Attorney Gretchen C.F. Shappert announced today that Clintford Joseph, Jr. of St. Croix was arrested October 10, 2019 on a warrant for the charges of Concealing a Person from Arrest and making a False Statement.
According to an Indictment issued by a Federal Grand Jury on October 1, 2019, Joseph is accused of concealing Paul Girard a/k/a "Bogus" from federal investigators from the period between October 23, 2018 through November 4, 2018. Joseph also faces a charge of providing a false statement to law enforcement on or about November 5, 2018 when he advised federal law enforcement investigators that he was unaware that Paul Girard, Jr. was staying in the bedroom located above the garage of an 84 Clairmont, St. Croix residence. Girard and others are charged in a multiple count indictment with operating a conspiracy involved in drug dealing, murders on St. Croix and armed robberies on St. Croix and St. Thomas.
Joseph was arraigned today in federal court.
The case was investigated by the U.S. Drug Enforcement Administration and the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney G.A. Massucco.
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.
Sex Offender Receives Nearly Two-Year Prison Sentence for Violating Megan’s LawRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that George Alexander, 28, of Philadelphia, Pennsylvania, was sentenced to 21 months’ incarceration, 12 months’ home confinement and five years’ supervised release by United States District Judge Jan. E. DuBois for violating Megan’s Law. Under Megan’s Law, also known as the Sex Offender Registration and Notification Act (SORNA), sex offenders are required to register their home, work, and school addresses with state law enforcement, so that individuals can search a database and be aware of convicted sex offenders living, working, or attending school in their neighborhood.
The defendant was convicted of sexual contact with a minor in 2018 and incarcerated. He registered a Philadelphia address upon his release from jail, but then moved away from that address within a month and never listed his new address. He was arrested in May 2019 in Vermont, more than nine months after leaving his registered Philadelphia address.
“The purpose of Megan’s Law is to provide the public with current information about the whereabouts of sex offenders in order to ensure public awareness and safety,” said U.S. Attorney McSwain. “If those offenders do not comply with the registration requirements, we will aggressively prosecute them for this failure so that the public receives the information that it deserves.”
“Parents have the right to know if a predator lives next door,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “Megan’s Law was enacted in order to provide that information to the public and better protect children. Registered sexual offenders are required to keep their information up to date. Those who won’t need to know they’ll be swiftly held accountable.”
The case was investigated by the Federal Bureau of Investigation with the assistance of the United States Marshals Service and the Colchester, VT Police Department, and is being prosecuted by Assistant United States Attorney Nancy Rue.
Semiautomatic Rifles, 100-Round Drum Magazine, Handguns Result in Almost 8 Years in Prison for Convicted FelonRead the Press Release
Jackson, Miss. – Montavious Johnson, 25, of Ridgeland, was sentenced Friday by U.S. District Judge Henry T. Wingate to 94 months in federal prison, followed by 3 years of supervised release, for being a convicted felon in possession of multiple firearms and a 100-round drum magazine, announced U.S. Attorney Mike Hurst, Drug Enforcement Administration (DEA) Special Agent in Charge Brad L. Byerley and Kurt Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Johnson was arrested on September 11, 2018, as part of a joint operation by the Hinds County Sheriff’s Office, the Richland Police Department, the DEA and ATF. After arresting Johnson for the sale of heroin, officers executed a search warrant at the apartment in Jackson where Johnson was staying. Numerous firearms were recovered, including two AR-15 semiautomatic rifles and four pistols. Johnson also had a 100-round high capacity magazine loaded in one of the AR-15’s.
Johnson had previously been convicted of state felony offenses in both Madison and Hinds County, Mississippi. At the time of his arrest, Johnson was on parole from prior state convictions and was wearing an ankle monitor. Johnson pled guilty before Judge Wingate on April 26, 2019.
The case was investigated by the Hinds County Sheriff’s Department, the Richland Police Department, the DEA, and the ATF. The case was prosecuted by Assistant United States Attorney Dave Fulcher.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Justice Expel Crime Together." PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions 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.
San Diego Man Who Posed as a Federal Agent to Defraud Immigrants out of $2.5 Million Sentenced to 91 MonthsRead the Press Release
Assistant U.S. Attorney Andrew Young (619) 546-7981 and Assistant U.S. Attorney Meghan Heesch (619) 546-9442
SAN DIEGO – Hardev Panesar of San Diego was sentenced today in federal court by U.S. District Judge Gonzalo P. Curiel to 91 months in custody for his leadership role in an immigration fraud scheme.
According to his plea agreement, Panesar conspired with others, including Rafael Hastie and Gurdev Singh, to induce unauthorized immigrants to pay money based on false and fraudulent claims that the defendants could secure immigration status for the victims and their families. Panesar misled the victims into believing that he could obtain immigration documents or legal immigration status by pretending to be an agent with the Department of Homeland Security. Panesar wore a DHS jacket and showed purported official credentials to his victims.
The plea agreement outlined several dates in 2016 where Panesar successfully obtained thousands of dollars by pretending to be a DHS official. The money paid by the victims totaled over $2.5 million, which was converted to the personal use and benefit of Panesar and his co-defendants. According to statements made at sentencing, Panesar also lost a significant portion of the money he stole from victims as a victim himself in a Nigerian “advanced fee scheme.” At a prior sentencing hearing, one of the victims testified in court that his family gave Panesar and Gurdev Singh approximately $250,000 with the hopes of receiving green cards—a devastating financial loss that contributed to the depression and eventual suicide of a family member.
Panesar’s sentence includes a six-month custodial sentence for an additional charge of Failure to Appear. On June 21, 2018, while released on bond, Panesar fled to Mexico and failed to appear at a Motion Hearing before Judge Curiel set for June 22, 2018. He was captured in Mexico and deported to the United States approximately six weeks later.
Earlier this year, Panesar’s co-defendants were sentenced by Judge Curiel. Rafael Hastie was sentenced to 46 months in custody and ordered to pay $942,000 in restitution to the victims. Gurdev Singh was sentenced to 27 months in custody and ordered to pay $392,850 in restitution to the victims. The Court ordered Panesar to pay approximately $2.5 million in restitution to his victims.
Additionally, last week, former HSI supervisor Johnny Martin was found guilty by a federal jury in a related case for the false statements he made to the FBI in connection with their investigation into this immigration fraud scheme. Martin will be sentenced on January 17, 2020.
In imposing the sentence, Judge Curiel described Panesar’s scheme as “one of the more serious cases this Court has handled” in recent years. “Mr. Panesar preyed on the most vulnerable…these are people who wanted to live and experience the American dream. . . . Mr. Panesar pretended he could be the one who provided the American dream.” Judge Curiel added, “This offense is serious because of the heartlessness and callousness required to perpetuate this fraud on so many for so long.”
“Pretending to be a legitimate government agent to scam hundreds of individuals of their life savings undermines the crucial trust we bestow upon our law enforcement partners,” said U.S. Attorney Robert S. Brewer, Jr. “When that trust is betrayed for personal enrichment, our office will aggressively prosecute the fraudsters and seek restitution for the victims.”
“Panesar’s fraud scheme was particularly egregious as he attempted to use the veil of a U.S. government official to obtain millions of dollars from those trying to obtain legal status in the United States,” said Scott Brunner, FBI Special Agent in Charge. “Falsely claiming to be a federal official degrades the integrity of the system and therefore has serious consequences. Today, Panesar’s destructive scheme has been shut down, he has a federal conviction, and must serve a prison sentence as a result of his actions.”
DEFENDANTS Case Numbers: 17CR1371-GPC, 18CR3229-GPC
Hardev PANESAR Age: 71 El Cajon, California
Rafael HASTIE Age: 49 Tijuana, Mexico
Gurdev SINGH Age: 58 Bakersfield, California
SUMMARY OF CHARGES
17CR1371-GPC
Count 1: 18 U.S.C. § 1349, Conspiracy to Commit Wire Fraud
Maximum Penalty: Twenty years in prison, $250,000 fine, forfeiture and restitution.
Counts 2-4: 18 U.S.C. § 1343, Wire Fraud;
Maximum Penalty: Twenty years in prison, $250,000 fine, forfeiture and restitution
Counts 5-10: 18 U.S.C. § 912, False Personation of an Officer or Employee of the United States;
Maximum Penalty: Three years in prison, $250,000 fine
Count 11: 31 U.S.C. § 5324(a)(3), Structuring Domestic Financial Institutions;
Maximum Penalty: Ten years in prison, $250,000 fine, forfeiture
18CR3229-GPC
Count 1: 18 U.S.C. § 3146(a)(1), Failure to Appear After Pre-Trial Release;
Maximum Penalty: Ten years in prison, $250,000 fine.
AGENCY
Federal Bureau of Investigation
U.S. Customs and Border Protection - Office of Field Operations
U.S. Customs and Border Protection - Office of Professional Responsibility
Randolph County man admits to methamphetamine distribution and firearms chargeRead the Press Release
ELKINS, WEST VIRGINIA – Joseph William Howell, Jr., of Beverly, West Virginia, has admitted to methamphetamine and firearms charges, U.S. Attorney Bill Powell announced.
Howell, age 28, pled guilty to one count of “Conspiracy to Distribute Methamphetamine” and one count of “Possess Firearm in Furtherance of a Drug Crime.” Howell admitted to working with others to distribute methamphetamine from December 2017 to July 2018 in Randolph County and elsewhere. He also admitted to having a .34 Colt caliber revolver during the drug crime.
Howell faces at least five years and up to 40 years incarceration and a fine of up to $5,000,000 for the conspiracy charge and faces at least five years incarceration and a fine of up to $250,000 for the firearms charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Randolph County Sheriff’s Office investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Providence Woman Admits to Role in Multi-State Fraud SchemeRead the Press Release
PROVIDENCE – A Providence woman appeared in U.S. District Court today and admitted to her role in a far-reaching multi-state fraud scheme that defrauded banks, finance companies, car dealerships, and retailers of more than $1.3 million.
Yenesia Pujols, 47, admitted to the court that beginning in as early as June 2016, she began to work with Octavio Andres Difo-Castro, 28, of Brooklyn, New York, who previously admitted to the Court that he employed several individuals, including Pujols, who, at his direction, opened bank accounts and applied for and received financing for automobiles, clothing, and electronic devices using fraudulent driver’s licenses, Social Security numbers, and other documents he created with stolen information he purchased on the Dark Web.
Difo-Castro admitted that at his direction several individuals opened bank accounts using fraudulent IDs he provided to deposit and withdraw fraudulently obtained funds; to pose as both the seller and the buyer of vehicles in order to fraudulently secure bank and/or credit union financing from financial institutions in several states; and to obtain retail store credit and make purchases at clothing and cellphone retailers in Rhode Island, Massachusetts, Connecticut, and Pennsylvania.
Appearing today before U.S. District Court Judge John J. McConnell, Jr., Pujols admitted that she allowed her photograph to be used to create several counterfeit driver’s licenses in the names of individuals whose personal identifying information had been stolen. Pujols admitted that she used the stolen IDs to gain credit for the purchase of $4,146.22 worth of Apple iPhones from several Massachusetts retailers. Additionally, Pujols admitted that she used stolen identifying information to open bank accounts and defraud various credit unions of $78,500.
In addition to her participation in the fraud schemes, Pujols admitted to the Court that in January 2016, she filed an application with the Social Security Administration and was approved to receive disability benefits. In October 2016, Pujols used a fraudulent driver’s license with her photograph and the stolen name and personal information of another person during the application and hiring process to gain employment with a temporary job placement service. Pujols admitted that while working for the temporary employment service she collected $3,498 in Social Security Disability payments she was not entitled to receive.
Pujols pleaded guilty today to aggravated identity theft, conspiracy to commit wire fraud, wire fraud, conspiracy to commit bank fraud, and Social Security fraud, announced United States Attorney Aaron L. Weisman; Stephen Marks, Special Agent in Charge of the U.S. Secret Service; and Scott E. Antolik, Special Agent in Charge of the Boston Field Office of the Social Security Administration, Office of the Inspector General/Office of Investigations.
Pujols is scheduled to be sentenced on January 14, 2019.
Difo-Castro pleaded guilty on September 19, 2019, to one count each of conspiracy to commit wire fraud and one count of conspiracy to access device fraud, two counts of aggravated identity theft, and nineteen counts of wire fraud. He is scheduled to be sentenced on January 13, 2020.
The cases are being prosecuted by Assistant U.S. Attorney William J. Ferland, with the assistance of Assistant U.S. Attorney Zachary Cunha.
The investigations were led by the U.S. Secret Service, with the assistance of the Social Security Administration, Office of the Inspector General/Office of Investigations.
United States Attorney Aaron L. Weisman acknowledges and thanks the United States Postal Inspection Service; East Providence, Warwick, Seekonk and Mansfield Police Departments; and the Rhode Island State Police for their assistance in the investigation of these matters.
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Pittsburgh Man Sentenced for Random Robbery of Key Bank in DowntownRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, Pennsylvania has been sentenced in federal court to a term of imprisonment of time served (approximately 19 months), to be followed by three years of supervised release on his conviction of bank robbery, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Joy Flowers Conti imposed the sentence on Jonathan Owens-El, age 56.
According to information presented to the court, on March 19, 2018, Owens-El entered Key Bank, Downtown Pittsburgh, with a blue knit scarf around his face and wearing gloves. Owens-El passed the teller a note that said, "No Dye, No Alarm 50’s, 20’s, 10’s". The teller handed him $260 in U.S. Currency along with $40 wrapped around a GPS tracker. Owens-El fled and police used the GPS device to locate him on a PAT bus.
After boarding the bus, the officer noticed Owens-El seated in the back with a blue scarf tucked under his leg. When the officer asked Owens-El to stand up, the officer saw U.S. Currency protruding from his left front pants pocket.
Owens-El agreed to an interview and admitted that he handed the teller a note demanding money. He stated that once he received the cash, he placed the money into a bag then walked towards Smithfield Street and boarded a PAT bus. Owens said he picked Key Bank at random and decided to rob the bank to support his drug addiction.
Assistant United States Attorney Shanicka L. Kennedy prosecuted this case on behalf of the government.
The Federal Bureau of Investigation, and the Pittsburgh Bureau of Police conducted the investigation leading to the prosecution of Owens-El through 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.
Pittsburgh Man Possessed Hundreds of Images and Several Videos Depicting the Sexual Exploitation of MinorsRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to a charge of possession of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
Philip W. Wagner, age 42, of Pittsburgh, Pennsylvania, pleaded guilty to one count before Chief United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that on March 20, 2018, a search warrant was executed at Wagner’s South Side residence y members of the Western Pennsylvania Violent Crimes Against Children Task Force. A forensic review of a hard drive seized from the residence revealed thousands of images and multiple videos. Of these, law enforcement identified at least 600 images and several videos as material depicting the sexual exploitation of minors, some of whom had not yet attained 12 years of age.
Judge Hornak scheduled sentencing for February 13, 2020 at 1:30 p.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Indiana County District Attorney’s Office, and the Western Pennsylvania Violent Crimes Against Children Task Force conducted the investigation that led to the prosecution of Wagner.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Pittsburgh Felon with Voluntary Manslaughter Conviction Pleads Guilty to Illegally Possessing Gun, Ammunition and DrugsRead the Press Release
PITTSBURGH - A resident of Pittsburgh pleaded guilty in federal court to a charge of violating federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
Tyree Jrevae Booker, age 41, pleaded guilty to one count before Senior United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that on December 6, 2018, Booker possessed a Hi-Point pistol and ammunition, knowing that he had previously been convicted of crimes punishable for a term exceeding one year, including an August 14, 1996 conviction for voluntary manslaughter in the Allegheny County Court of Common Pleas. He also possessed quantities of crack cocaine, cocaine and methamphetamine with the intent to distribute those substances.
Judge Fischer scheduled sentencing for April 16, 2020 at 9:00 a.m. The law provides for a total sentence of not more than 30 years in prison, a fine of $1,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco and Firearms and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Booker. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Pittsburgh Felon with Voluntary Manslaughter Conviction Illegally Possessed a Pistol, Ammunition and DrugsRead the Press Release
PITTSBURGH - A resident of Pittsburgh pleaded guilty in federal court to a charge of violating federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
Tyree Jrevae Booker, age 41, pleaded guilty to one count before Senior United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that on December 6, 2018, Booker possessed a Hi-Point pistol and ammunition, knowing that he had previously been convicted of crimes punishable for a term exceeding one year, including an August 14, 1996 conviction for voluntary manslaughter in the Allegheny County Court of Common Pleas. He also possessed quantities of crack cocaine, cocaine and methamphetamine with the intent to distribute those substances.
Judge Fischer scheduled sentencing for April 16, 2020 at 9:00 a.m. The law provides for a total sentence of not more than 30 years in prison, a fine of $1,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco and Firearms and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Booker. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Oil & Gas Office Manager Pleads Guilty to Embezzling over $1.2 MillionRead the Press Release
OKLAHOMA CITY – CHRISTA DAWN JACKSON, of Tuttle, has pleaded guilty to an information that charges her with embezzling more than $1.2 million through wire fraud, announced U.S. Attorney Timothy J. Downing. She has also pleaded guilty to signing a false federal income tax return and admitted that she owes the IRS more than $200,000.
According to federal charges filed on September 26, 2019, Jackson worked as an office manager at AllPoints Pipe Service Inc., where she had access to company checks and accounting systems. The United States alleges that from February 2010 to June 2017, she made company checks out to herself and her husband and forged the signature of the company’s owner on those checks. It also alleges she initiated electronic transfers from company bank accounts to third parties for her own benefit and created false invoices to conceal her embezzlement. In addition to charging wire fraud, the government charged her with signing a false 2014 federal income tax return on which she reported that her income was only $96,496, when she knew her income was substantially higher.
This morning, Jackson pleaded guilty to both crimes. She has entered a plea agreement that requires her to pay restitution to AllPoints Pipe Service in the amount of $1,254,064.09 and to the IRS in the amount of $223,808.00. The plea agreement also provides for a forfeiture money judgment in the amount of the embezzlement.
At sentencing, Jackson faces a maximum penalty of 20 years in prison for wire fraud and three years in prison for signing a false tax return. She could also be required to serve a total of four years of supervised release and to pay a fine of up to $250,000 on each count.
These charges are the result of an investigation by the United States Secret Service, the Internal Revenue Service–Criminal Investigations, and the Federal Bureau of Investigation–Oklahoma City Division, with assistance from the El Reno Police Department. The case is being prosecuted by Assistant U.S. Attorney William E. Farrior.
Reference is made to court filings for further information.
Ohio Doctor Pleads Guilty to Unlawful Distribution of OpioidsRead the Press Release
The owner of a Cincinnati-area medical practice pleaded guilty today for illegally distributing opioids.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Keith Martin of the Drug Enforcement Administration’s (DEA) Detroit Division and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office made the announcement.
Raymond Noschang, M.D., 59, of Cincinnati, Ohio, pleaded guilty to eight counts of unlawful distribution of oxycodone before U.S. District Judge Susan J. Dlott of the Southern District of Ohio. Sentencing has not yet been scheduled.
As part of his guilty plea, Noschang admitted that he prescribed controlled substances to patients in amounts and for lengths of time that were outside the scope of legitimate medical practice. Noschang also admitted that he routinely prescribed controlled substances to patients even though various “red flags” suggested that he should stop writing those prescriptions, change the prescriptions and/or counsel patients accordingly. Further, Noschang admitted that he prescribed dangerous combinations of drugs known to heighten the risk of overdose and death.
As part of his guilty plea, Noschang admitted that the amount of drugs attributable to his conduct is between 400 and 700 kilograms of converted drug weight.
The DEA, HHS-OIG and the Ohio Board of Pharmacy investigated the case. Trial Attorneys Tom Tynan, Leslie Garthwaite and Chris Jason of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the ARPO Strike Force. Since its inception in October 2018, the ARPO Strike Force, which operates in 10 districts, has charged more than 70 defendants who are collectively responsible for distributing more than 40 million pills. The Health Care Fraud Unit, in general, maintains 15 strike forces operating in 24 districts, and has charged nearly 4,200 defendants who have collectively billed the Medicare program for more than $15 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
Northwest Iowa Otolaryngologist Agrees to Pay $1,000,000 to Resolve Medicaid False Claims AllegationsRead the Press Release
Dr. Tracey Wellendorf, an otolaryngologist with a clinic in Carroll, Iowa, agreed to pay $1,000,000 to resolve False Claims Act allegations relating to as many as 115 procedures performed on Iowa Medicaid beneficiaries between October 13, 2014, and November 27, 2015.
The allegations relate to claims for endoscopic sinus surgeries. The United States alleges that the claims submitted for the subject procedures were improper either because they did not meet the applicable medical necessity standard or were otherwise incorrectly coded for payment.
“Medical providers who perform unnecessary procedures or wrongfully code claims violate the public trust,” said Peter E. Deegan, Jr., United States Attorney for the Northern District of Iowa. “This settlement is another indication of our office’s dedication to vigorous enforcement of the False Claims Act and our unyielding effort to protect patients, save taxpayer money, and ensure a fair marketplace for honest practitioners.”
In addition to agreeing to pay the $1,000,000 settlement, Dr. Wellendorf also entered into an Integrity Agreement with the Department of Health and Human Services Office of Inspector General. That agreement requires Dr. Wellendorf to engage in enhanced compliance measures for the next three years.
“Medically unnecessary services pose potential harm to patients and place needless burdens on taxpayers who fund government health programs,” said Curt Muller, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “HHS OIG entered into an integrity agreement requiring Dr. Wellendorf submit to three years of intensive quarterly monitoring by an independent review organization.”
The matter arose from an affirmative investigation. False Claims Act cases can also be brought under the qui tam provisions of the Act, which encourage whistleblowers to bring suit on behalf of the United States and share in any financial recovery.
The case was handled by Assistant United States Attorney Jacob Schunk and investigated by the State of Iowa’s Medicaid Fraud Control Unit and the Department of Health and Human Services Office of Inspector General.
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Northern Kentucky Man Sentenced to 105 Months for Illegal Firearm PossessionRead the Press Release
COVINGTON, Ky. Robert Ramone Poe, 39, a Northern Kentucky man who was convicted of illegally possessing a firearm, was sentenced on Tuesday to 105 months in federal prison, by U.S. District Judge David L. Bunning.
Poe is a convicted felon and, therefore, prohibited under federal law from possessing firearms and ammunition.
In March 2019, Poe was arrested by the Northern Kentucky Drug Strike Force after a search of his Covington residence uncovered a 9 millimeter handgun in his bedroom, along with cocaine. Poe pleaded guilty to the charge in July 2019.
Under federal law, Poe must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the United States Probation Office for three years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Tommy Estevan, Acting Special Agent in Charge of the ATF, jointly announced the sentence.
The investigation was conducted jointly by the Northern Kentucky Drug Strike Force and ATF. The United States was represented by Assistant U.S. Attorney Jennifer K. Weinhold
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NDTX Round-Up October 15, 2019Read the Press Release
GUILTY PLEA – Jose Sanchez
On October 8, Jose Sanchez pled guilty to conspiracy to possess with the intent to distribute cocaine and conspiracy to launder monetary instruments. Sanchez was apprehended by the police and found with 14 kilograms of cocaine, after receiving it from a coconspirator in the parking lot of a Denny’s. Additionally, Sanchez and his coconspirators sent the proceeds from this and other sales of methamphetamine back to Mexico. This case was investigated by the Drug Enforcement Administration and is prosecuted by AUSA George Leal.
GUILTY PLEA – Terry Holley
On October 8, Terry Holley pled guilty to receipt of illegal remuneration. From August 2014 to September 2017, Holley solicited payments in return for providing the personal information of health care patients to a company. The information included doctor’s notes, prescription information, and billing information. Additionally, Holley would forge prescriptions to be sent to the Department of Labor for reimbursement. In return, Holley received payment in cash and a percentage of the corporation’s earnings. This case was investigated by the Office of the Inspector General and is prosecuted by AUSA Jennifer Bray.
GUILTY PLEA – Otis DeWayne McMillan
On October 10, Otis DeWayne McMillan pled guilty to conspiracy to distribute and possess with the intent to distribute marijuana. McMillan flew to Dallas Love Field Airport with his coconspirators and 128.5 pounds of marijuana in a total of ten suitcases. This case is prosecuted by AUSA Rebekah Ricketts.
SENTENCING – Juan Johnson
On October 7, Juan Johnson, 43, was sentenced to 1 year and 9 months in federal custody for conspiracy to pass and utter counterfeit currency. Johnson and his coconspirators obtained counterfeit Federal Reserve Notes, and then traveled to stores in the Northern District of Texas to purchase merchandise and gift cards using these counterfeit Federal Reserve Notes. This case was investigated by the U.S. Secret Service and was prosecuted by AUSA Jay Weimer.
SENTENCING – Manuel Pena
On October 7, Manuel Pena, 27, was sentenced to 12 years in federal custody for the possession of a controlled substance with the intent to distribute. Pena was found in possession of a kilogram of methamphetamine in March of 2019. This case was investigated by the Drug Enforcement Administration High Intensity Drug Trafficking Areas and the Fort Worth Police Department Narcotics. This case was prosecuted by AUSA Shawn Smith.
SENTENCING – Don Wright
On October 7, Don Wright, 40, was sentenced to 3 months in federal custody and ordered to pay $81,405 in restitution for conspiracy to defraud the United States. Wright was a member of the Texas Army National Guard, and used his position to steal fleet cards that are intended to purchase fuel and maintenance for government vehicles. Wright, and his coconspirator used these cards for the upkeep of their own vehicles and replicated these cards to be sold and shared with others. This case was investigated by the General Services Administration Office of Inspector General and the Department of Defense Office of Inspector General. This case was prosecuted by AUSA Robert Boudreau.
Mishawaka, Indiana Man SentencedRead the Press Release
SOUTH BEND - Zachary Adams, age 34, of Mishawaka, Indiana was sentenced before South Bend District Court Judge Robert L. Miller, Jr. for felon in possession, announced U.S. Attorney Kirsch.
Mr. Adams was sentenced to 51 months in prison followed by 2 years of supervised release.
According to documents in this case, Mr. Adams broke in a police officer’s home and stole numerous items, including a 9mm handgun. Five days later, Mr. Adams stole a car and drove to a South Bend business where he tried to commit fraud by using a false (or stolen) Florida driver’s license. Mr. Adams fought responding officers; however, the officers were able to subdue him. Officers found the stolen 9mm handgun in a shoulder holster under Mr. Adams’ shirt. Mr. Adams had been convicted of four felonies and five misdemeanors in the past.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the South Bend Police Department. The case was handled by Assistant U.S. Attorney Joel Gabrielse.
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Mineral County woman admits to methamphetamine distributionRead the Press Release
ELKINS, WEST VIRGINIA – Samantha Jo Guinn, of Keyser, West Virginia, has admitted to a methamphetamine distribution charge, U.S. Attorney Bill Powell announced.
Guinn, age 31, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine.” Guinn admitted to having more than 50 grams of “crystal” methamphetamine, also known as “ice,” in January 2019 n Grant County.
Guinn faces at least 10 years and up to life incarceration and a fine of up to $10,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Potomac Highlands Drug and Violent Crime Drug Task Force, a HIDTA-funded initiative, and the Grant County Sheriff’s Office investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Mexican National Sentenced for Identity Theft, Illegally Reentering the United StatesRead the Press Release
KANSAS CITY, Mo. – A Mexican national who illegally entered the United States at least a dozen times was sentenced in federal court today for illegal reentry and for stealing a deceased person’s identity to obtain employment.
Rigoberto Vasquez-Milan, 37, was sentenced by U.S. District Judge Howard F. Sachs to two years and six months in federal prison without parole.
On April 22, 2019, Vasquez-Milan pleaded guilty to one count of illegally reentering the United States after having been deported and one count of aggravated identity theft.
Vasquez-Milan used another person’s name, Social Security card and lawful permanent resident card to obtain employment at a Kansas City, Missouri, restaurant. Vasquez-Milan came under suspicion when he was accused of raping a female co-worker on Jan. 17, 2018 (no charges were filed). The victim told police that after her shift she gave him a ride home from work. After she reported the incident, police officers called U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) in Kansas City and learned the identity information belonged to a deceased person.
According to court documents, Vasquez-Milan has entered the United States illegally at least a dozen times. He was removed from the United States three times pursuant to an immigration judge’s order and voluntarily returned to Mexico eight times.
This case was prosecuted by Assistant U.S. Attorney Rudolph R. Rhodes IV. It was investigated by the Kansas City, Mo., Police Department and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).