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21 November 2019
Two Kings County Men Charged with Possessing and Selling Machine GunsRead the Press Release
FRESNO, Calif. — A three-count indictment was unsealed today charging Eric Lopez Mercado, 25, of Lemoore, and Jose Moreno, 24 of Hanford, with illegally possessing and transferring machine guns, U.S. Attorney McGregor W. Scott announced.
The indictment charges Mercado and Moreno with possessing several pistols that had no serial number markings but had conversion devices attached to the rear of the firearms that enabled them to function as fully automatic weapons. Both men are also charged with transferring a machine gun to another person and possessing a device capable of converting a handgun into a machine gun.
This case is the product of a multi-agency investigation into the criminal activities of individuals associated with the Nuestra Familia prison gang. That investigation culminated in the arrests of over 50 individuals on federal and state charges, including Mercado and Moreno. The investigation was led by the Kings County Gang Task Force; Agents of the Special Operations Unit – a team of agents from the California Department of Justice and the California Highway Patrol; California Department of Corrections and Rehabilitation; the FBI; and the Kings County District Attorney's Office. The Drug Enforcement Administration, the Bureau of Alcohol Tobacco and Firearms, the U.S. Marshals Service, and Homeland Security Investigations all assisted with the arrests. Assistant U.S. Attorneys Kimberly Sanchez and Justin Gilio are prosecuting the case.
If convicted, both Mercado and Moreno face a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. 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.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF Program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Two Former Tennessee Correctional Officers Charged with Civil Rights, Conspiracy, and Obstruction Offenses Following Assault of InmateRead the Press Release
Memphis, TN – A federal grand jury returned an indictment charging Jonathan York and Tommy Morris, two former correctional officers at the Northwest Correctional Complex in Tiptonville, Tennessee, with federal civil rights, conspiracy, and obstruction offenses, announced Assistant Attorney General Eric Dreiband of the Department of Justice’s Civil Rights Division, United States Attorney for the Western District of Tennessee D. Michael Dunavant, and FBI-Memphis Special Agent in Charge M.A. Myers.
The indictment alleges that, on Feb. 1, 2019, Correctional Officer Jonathan York and other officers entered the cell of an inmate identified by the initials R.T. York allegedly directed a fellow correctional officer to cover the surveillance camera in the cell and then he repeatedly punched R.T. York allegedly directed another officer to hit R.T. A third officer also punched R.T. As a result of the unjustified use of force by the officers, R.T. suffered bodily injury.
The indictment alleges that Corporal Tommy Morris violated R.T.’s civil rights when Morris knew of the unjustified staff assault on R.T., but failed to intervene to stop the officers. The indictment charges Morris and York with conspiring to cover up the use of unlawful force on R.T. Finally, the indictment charges Morris with obstructing justice by encouraging correctional officers to provide false and misleading information about the circumstances surrounding the injuries R.T suffered.
The defendants face statutory maximum sentences of 10 years for the civil rights count; five years for the conspiracy charge; and 20 years for each obstruction count.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendants are presumed innocent until proven guilty.
Previously, former correctional officers Cadie McAlister, Nathaniel Griffin, Tanner Penwell, and Carl Spurlin, Jr. entered guilty pleas for criminal offenses arising out of the assault of inmate R.T.
This case was investigated by the Memphis Division of the FBI with the support of the Tennessee Department of Corrections, and is being prosecuted by Trial Attorney Rebekah J. Bailey of the Justice Department’s Civil Rights Division and Assistant United States Attorney David Pritchard of the U.S. Attorney’s Office for the Western District of Tennessee.
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Two Former Tennessee Correctional Officers Charged with Civil Rights, Conspiracy, and Obstruction Offenses Following Assault of InmateRead the Press Release
A federal grand jury returned an indictment charging Jonathan York and Tommy Morris, two former correctional officers at the Northwest Correctional Complex in Tiptonville, Tennessee, with federal civil rights, conspiracy, and obstruction offenses, announced Assistant Attorney General Eric Dreiband of the Department of Justice’s Civil Rights Division, United States Attorney for the Western District of Tennessee D. Michael Dunavant, and FBI-Memphis Special Agent in Charge M.A. Myers.
The indictment alleges that, on Feb. 1, 2019, Correctional Officer Jonathan York and other officers entered the cell of an inmate identified by the initials R.T. York allegedly directed a fellow correctional officer to cover the surveillance camera in the cell and then he repeatedly punched R.T. York allegedly directed another officer to hit R.T. A third officer also punched R.T. As a result of the unjustified use of force by the officers, R.T. suffered bodily injury.
The indictment alleges that Corporal Tommy Morris violated R.T.’s civil rights when Morris knew of the unjustified staff assault on R.T., but failed to intervene to stop the officers. The indictment charges Morris and York with conspiring to cover up the use of unlawful force on R.T. Finally, the indictment charges Morris with obstructing justice by encouraging correctional officers to provide false and misleading information about the circumstances surrounding the injuries R.T suffered.
The defendants face statutory maximum sentences of 10 years for the civil rights count; five years for the conspiracy charge; and 20 years for each obstruction count.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendants are presumed innocent until proven guilty.
Former correctional officers Cadie McAlister, Nathaniel Griffin, Tanner Penwell, and Carl Spurlin Jr. entered guilty pleas for criminal offenses arising out of the assault of inmate R.T.
This case was investigated by the Memphis Division of the FBI with the support of the Tennessee Department of Corrections, and is being prosecuted by Trial Attorney Rebekah J. Bailey of the Justice Department’s Civil Rights Division and Assistant United States Attorney David Pritchard of the U.S. Attorney’s Office for the Western District of Tennessee.
Two Doctors Plead Guilty to Conspiracy to Commit Health Care Fraud in Compound Fraud SchemeRead the Press Release
Hattiesburg, Miss. – Shahjahan Sultan, M.D., 37 of Madison, Mississippi and Thomas Edward Sturdavant, M.D., 56, of Kingsport, Tennessee, pled guilty today before Senior U.S. District Judge Keith Starrett to conspiring to commit health care fraud, announced U.S. Attorney Mike Hurst and Special Agent in Charge Michelle Sutphin with the Federal Bureau of Investigation in Mississippi.
“These doctors violated their oaths and harmed our military, our veterans, and every American taxpayer by defrauding TRICARE. I want to commend our law enforcement partners, DOJ trial attorneys, and our federal prosecutors for bringing these criminals to justice. We will continue to aggressively pursue criminals who pilfer our national treasury and do all that we can to protect victims of these crimes,” said U.S. Attorney Hurst.
In May 2014, Sultan entered into a contract with a pharmacy located in Jackson County, Mississippi. Pursuant to the contract, Sultan agreed to prescribe expensive compound medications to individuals in exchange for the pharmacy paying Sultan 35% of the reimbursements it received for the prescriptions. Health care benefit programs, including TRICARE, were billed for the compounded medications.
Sultan employed others who identified individuals in places like Jones County, Mississippi, who had insurance which covered the expensive compounded medications. Sultan met with the insured individuals over telemedicine video-chat sessions. However, during the meetings, he did not perform thorough examinations of the individuals and did not determine the medical necessity of the compounded medications he prescribed. Sultan knew that some of the added ingredients in the compounded medication were not effective and were added solely to increase the reimbursement value. On occasion, Sultan and Sturdavant even called in compounded medications for individuals they had never previously examined.
Sultan hired Sturdavant in September 2014 and agreed to pay him $900,000 annually to perform telemedicine services and to prescribe the compounded medications dispensed by the pharmacy. From May 2014 through October 2014, health care benefit programs, including TRICARE, reimbursed the pharmacy more than $5,000,000 based on claims submitted by the pharmacy in connection with the expensive compounded medications ordered by Sultan and Sturdavant.
Sultan and Sturdavant will be sentenced by Judge Starrett on February 26, 2020 in Hattiesburg. They each face a maximum penalty of 10 years in prison, 3 years of supervised release, and a $250,000 fine.
The case was investigated by the FBI and DCIS. Assistant Chief Dustin M. Davis and Trial Attorney Sara E. Porter of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Kathlyn R. Van Buskirk of the Southern District of Mississippi prosecuted the case.
Two Delaware County Men Charged in $21 Million Insurance Financing Fraud SchemeRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Christopher Hogg, 61, of Bryn Mawr, PA, and Rennie Rodriguez, 52, of Broomall, PA were arrested and charged by complaint with conspiracy to commit wire fraud in a multi-million dollar insurance premium financing fraud scheme. Hogg was arrested in New York City on Tuesday and had his initial appearance before a United States Magistrate Judge yesterday in the Eastern District of Pennsylvania. Rodriguez was arrested earlier this week at his office in Broomall and had his initial appearance on Tuesday in the Eastern District of Pennsylvania.
The complaint alleges that Rodriguez, a licensed insurance broker, and Hogg, a businessman, conducted a scheme involving the issuance of fraudulent insurance premium finance loans, which were originated by an insurance premium finance company and funded by banks. They conducted this scheme with the assistance of a third person who was an employee of the insurance premium finance company. Between at least November 2016 and January 2018, the employee approved approximately 37 premium finance loans, or loan supplements, originated by insurance agencies controlled by Rodriguez, purportedly to purchase policies to insure entities owned or controlled by Hogg and/or Rodriguez, or in a few instances controlled by other individuals. These loans were purportedly for the purpose of financing insurance premiums. However, as Hogg, Rodriguez, and the employee knew, there were no underlying insurance policies, and Hogg and Rodriguez used the proceeds for other purposes. The loans totaled approximately $21,357,645.
Instead of paying insurance premiums (because there were no actual insurance policies), Rodriguez kept some of the proceeds for himself and distributed most of the other proceeds to bank accounts controlled by Hogg, or in a few instances to other individuals/entities. Rodriguez and Hogg used some of the proceeds from newer loans to make loan payments to the premium finance company or to the banks on older loans. Had loan payments not been made on at least some loans, the premium finance company and the banks likely would have become suspicious. Additionally, between approximately October 2016 and December 2017, Hogg made approximately 40 kickback payments, totaling $873,118, to the finance company employee who had approved the fraudulent loans. The employee has admitted to law enforcement that these payments were made to him because he approved the bogus loans.
“Licensed insurance brokers are supposed to act like trusted professionals, not crooks,” said U.S. Attorney McSwain. “The allegations here are particularly disturbing because of the lengths these two defendants allegedly went to in order to perpetuate their fraud and the huge amount of money they were able to steal through this scheme.”
“The ability of IRS Special Agents to follow the money trail is essential for conducting not only tax investigations, but also for proving cases like this”, said Guy Ficco, Special Agent in Charge of IRS-Criminal Investigation. “Those who conduct this type of fraud should know that they will be held accountable by IRS-CI and our law enforcement partners, and they will have to face the consequences of their actions.”
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation Division, and is being prosecuted by Assistant United States Attorney Karen Grigsby.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Charged in Scheme to Impersonate U.S. Officials and Defraud IraqisRead the Press Release
Two U.S. citizens residing in Iraq were charged in two separate indictments yesterday for their alleged participation in schemes to defraud Iraqi companies out of millions of dollars by impersonating U.S. officials.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Stanley Newell of the Defense Criminal Investigative Service’s (DCIS) Transnational Operations Field Office, Special Agent in Charge L. Scott Moreland of the U.S. Army Criminal Investigation Command’s (Army-CI) Mid-Atlantic Fraud Field Office and Resident Agent in Charge John R. Deptula Jr. of Army CI’s Southwest Asia Fraud Office made the announcement.
Riza Mohammad, 40, and Sabah Hasan Sachet, 48, were charged in two indictments returned in the District of Kansas. Mohammad and Sachet were each charged with one count of conspiracy to commit wire fraud, six counts of wire fraud, one count of false impersonation of U.S. officials, and one count of wrongful use of U.S. government seals.
The indictments allege that Mohammad and Sachet, along with their co-conspirators, induced companies doing business in Iraq to enter into fraudulent contracts, under which the victim companies were to provide materials worth millions of dollars to the U.S. government and receive payment in return. However, the purported contracts were false and the victim companies that provided materials and/or made payments to obtain the contracts were never paid. Mohammad, Sachet and their co-conspirators allegedly emailed the victim companies forged contracts and other documents that contained falsified U.S. government seals and impersonated U.S. officials during in-person meetings with the victim companies, all in order to defraud the victim companies by deceiving them into believing they were doing business with the U.S. government. The defendants were collectively responsible for defrauding the victim companies out of items worth millions of dollars, the indictment alleges.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
DCIS and Army-CI investigated the case. Trial Attorneys Michael McCarthy and Katie Rasor of the Criminal Division’s Fraud Section are prosecuting the case. The Criminal Division’s Office of International Affairs is also providing assistance in this matter.
Two Alabama Residents Sentenced for Marijuana DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Lieutenant Skylare Holstick, age 37, of Birmingham, Alabama, was sentenced to 41 months’ imprisonment and 3 years of supervised release, and Shara Tyesha Cumins, age 29, of Opelika, Alabama, was sentenced to 18 months’ imprisonment, and 2 years of supervised release for Possession With Intent To Distribute Marijuana, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(D) and Title 18, United States Code, Section 2. The charges arose from an investigation by the Okmulgee County Sheriff’s Office and the Federal Bureau of Investigation.
The Indictment alleged that on or about December 22, 2018, within the Eastern District of Oklahoma, the defendants Lieutenant Skylare Holstick and Shara Tyesha Cumins knowingly and intentionally possessed with intent to distribute less than 50 kilograms of marijuana, a Schedule I controlled substance.
The investigation was initiated by an Okmulgee County Deputy on I-40 who stopped the defendants’ car due to erratic driving. The odor of Marijuana emanated from the car which was occupied by the defendants and their child. Following additional investigation, 94 bundles containing 95.7 lbs. of Marijuana were located in the trunk.
United States Attorney Brian J. Kuester said, “These defendants were transporting a large quantity of Marijuana to profit from the unlawful distribution of a controlled drug. Because of erratic driving by Ms. Cumins and an alert Okmulgee County Deputy, they were stopped and their venture ended in Okmulgee with an arrest, a federal indictment, and a federal sentence.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearings. Assistant United States Attorney Dean Burris represented the United States.Twenty Defendants Indicted on Drug Trafficking Charges, One Defendant Charged with Unlawfully Possessing 11 FirearmsRead the Press Release
TRENTON, N.J. – Twenty defendants have been indicted on charges relating to the distribution of cocaine and crack cocaine in the Burlington County, New Jersey, area, U.S. Attorney Craig Carpenito announced today.
The defendants indicted today are among 31 people charged by complaint on Sept. 26, 2019. Charges remain pending against the other 11 defendants.
Herbert Mays, Andre Morton, Ronnie Dawson, Teron Huggins, Rufus Williams, Gurnsey Flagg, Roniffe Gaines, John Petrovich, Linford Johnson, Nathaniel McCoy, Anthony Pruitt, Shameke Fowler, Julius Thigpen, III, Andrew Perkins, and Brandon Watts were charged in a superseding indictment with conspiracy to distribute and possess with intent to distribute more than five kilograms of cocaine.
Additionally, Mays, Morton, Dawson, Flagg, Gaines, Petrovich, Johnson, Fowler, Perkins, Craig Moore, Tracy Williams, Samantha Bohlert, Mecca Grant, and April Branson were charged with conspiracy to distribute and possess with intent to distribute more than 280 grams of crack cocaine. Rufus Williams also was charged with possession with the intent to distribute crack cocaine, possession of a firearm in furtherance of a drug-trafficking crime, and being a felon in possession of a firearm.
According to the documents filed in this case and statements made in court:
Between July 2019 and September 2019, the defendants and others engaged in large-scale narcotics conspiracies that operated primarily throughout Burlington County – including Willingboro, Burlington City, Burlington Township, Bordentown Township, Edgewater Park, Mount Laurel, and Westampton – and which sought to profit from the distribution of cocaine and crack cocaine. Through the interception of telephone calls and text messages pursuant to court-authorized wiretap orders, and other investigative techniques, law enforcement learned that defendants obtained regular supplies of cocaine and then redistributed that cocaine, portions of which defendants converted into crack cocaine, to distributors, sub-dealers, and end-users throughout Burlington County and elsewhere.
The counts of conspiracy to distribute at least five kilograms of cocaine and 280 grams or more of crack cocaine, each carry a maximum penalty of life in prison and a fine of $10 million. The count charging Rufus Williams with possession with intent to distribute crack cocaine carries a maximum sentence of 20 years in prison and $1 million fine. The count charging Rufus Williams with possession of a firearm in furtherance of a drug trafficking crime carries a statutory mandatory minimum term of five years in prison and a maximum potential penalty of life in prison, which must be served consecutive to the sentence imposed on the drug trafficking crime. The count charging Rufus Williams with being a felon in possession of a firearm carries a maximum sentence of 10 years in prison. Both firearms counts also carry a maximum fine equal to the greatest of $250,000, twice the gross amount of any pecuniary gain that any persons derived from the offense, or twice the gross amount of any pecuniary loss sustained by any victim of the offense.
U.S. Attorney Carpenito credited special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie; special agents of ATF, under the direction of Special Agent in Charge Charlie J. Patterson; detectives of the Burlington County Prosecutor’s Office, under the direction of Prosecutor Scott Coffina; officers of the Burlington Township Police Department, under the direction of Director of Public Safety Bruce Painter; officers of the Willingboro Police Department, under the direction of Director of Public Safety Kinamo Lomon; officers of the Burlington City Police Department, under the direction of Chief of Police John Fine; officers of the Florence Police Department, under the direction of Chief of Police Brian Boldizar; officers of the Bordentown Township Police Department, under the direction of Chief of Police Brian Pesche; officers of the Edgewater Park Police Department, under the direction of Chief of Police Robert Hess; officers of the Mount Laurel Police Department, under the direction of Chief of Police Stephen Reidener; officers of the Ewing Police Department, under the direction of Chief of Police John Stemler; officers of the Westampton Police Department, under the direction of Chief of Police Stephen Ent; and officers of the Trenton Police Department, under the direction of Director Sheilah Coley, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Martha K. Nye and Ray Mateo of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations contained in the superseding indictment and complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Trying to Obstruct the Justice System to Help Out His Brother Results in Federal Prison Time for Idaho ManRead the Press Release
An Idaho man who agreed to help his brother try to pay off a victim of his brother’s $2.4 million wire fraud and identity theft scheme was sentenced on November 19, 2019, to two months in federal prison.
David Emerson Smith, age 71, from Pocatello, Idaho, received the prison term after a May 6, 2019, guilty plea to one count of conspiracy to obstruct, influence, and impede an official proceeding.
In a plea agreement, David Smith admitted that, from June 2017 through July 2018, he agreed with his brother Darrell Smith to obstruct, influence, and impede Darrell Smith’s federal sentencing hearing in late 2018. While he was in jail awaiting his sentencing hearing in June 2017, Darrell Smith told David Smith in a recorded telephone call that one of the victims of his fraud scheme could “make it really hard” for Darrell Smith if she continued to “complain” to the government. Darrell Smith told David Smith it would be “two extra years” if the victim continued her complaint, but Darrell Smith could get the victim some stock shares within a year. At Darrell Smith’s request, David Smith agreed to contact the victim on the telephone and, in February 2018, David Smith sent a letter to the victim at Darrell Smith’s request. The letter indicated Darrell Smith had $40,000 for the victim, in her children’s names, in accounts at an investment company. The letter also reminded the victim she had “$350,000 in tax credits” and two million shares of an energy company available to her. In truth, the “tax credits” and shares were fraudulent.
Law enforcement officers discovered the scheme to obstruct justice before Darrell Smith’s sentencing. In October 2018, the court found Darrell Smith stole $2.4 million from his investment clients, including $161,800 from the victim whom David Smith contacted at Darrell Smith’s request. The court also found Darrell Smith had obstructed justice and sentenced Darrell Smith to 175 months in federal prison upon his guilty pleas to wire fraud and aggravated identity theft.
David Smith was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. David Smith was sentenced to 2 months’ imprisonment and fined $5,500. He was ordered to make $161,800 in restitution to the victim of his obstruction on a joint and several basis with Darrell Smith. He must also serve a two-year term of supervised release after the prison term. There is no parole in the federal system.
David Smith was released on the bond previously set and is to surrender to the United States Marshal in Boise, Idaho, on January 2, 2020.
The case was prosecuted by Assistant United States Attorney Tim Vavricek and investigated by the Federal Bureau of Investigation and the United States Postal Inspection Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-2071.
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Texas man convicted for role in murder outside parole officeRead the Press Release
HOUSTON – A 52-year-old Houston man has admitted to his participation in the July 2014 murder outside a parole office in Houston, announced U.S. Attorney Ryan K. Patrick and Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.
Clyde Williams admitted to conspiracy to commit murder for hire.
During the hearing today, Williams admitted that in June 2014, he was hired to kill a 43-year-old Houston man. He expected to be paid $20,000 in return.
The victim was to be killed because he was suspected of stealing approximately 50 kilograms of cocaine from a truck driver involved in a drug organization - David Roberts, 44, of Houston. Roberts has also pleaded guilty, admitting to regularly transporting large kilograms of cocaine from Houston to Atlanta and transporting large quantities of cash on behalf of the drug organization’s leader.
In April 2014, Roberts received two duffle bags filled with cocaine in Houston. Soon after the delivery, a lone gunman robbed Roberts of the cocaine. The leader of the drug organization believed the victim and another individual were responsible for the robbery and assembled a plan to kill them.
On April 23, 2014, the other individual was kidnapped, zip-tied and put in the trunk of a car. While being transported, he was able to break free, open the trunk and jump out of the vehicle. A good Samaritan saw him, picked him up and attempted to drive him to safety. However, they were pursued and attacked with gunshots. Both were struck but survived.
Following this failed deadly attack, the second victim was targeted. Williams was hired to conduct the murder and was provided a firearm. Williams admitted he was told the victim would be meeting with his parole officer on July 1, 2014. Following the appointment, the victim returned to his vehicle in the parking lot, at which time Williams fired multiple shots, some at close range, killing the man as he sat in the driver’s seat.
U.S. District Judge Sim Lake accepted the plea today and has set sentencing for Sept. 17, 2020. At that time, Williams faces up to life imprisonment for his participation in this murder for hire scheme.
The charges are the result of the Houston Law Enforcement Violent Crime Initiative created in June 2017 which combines personnel and resources from numerous local, state and federal law enforcement agencies. The goal of the initiative is to proactively fight and reduce violent crime across the Greater Houston area by targeting the region’s most violent offenders, augmenting investigative and prosecutorial efforts, and enhancing training, public awareness and education.
The FBI, Houston Police Department, Texas Department of Criminal Justice, U.S. Bureau of Prisons, U.S. Marshals Service and the Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorneys Steve Mellin and Sebastian Edwards are prosecuting the case along with Trial Attorney Jim Nelson of the Department of Justice’s Capital Case Section.
Texas Man Convicted for Role in Murder Outside Parole OfficeRead the Press Release
A Texas man has admitted to his participation in the July 2014 murder outside a parole office in Houston, Texas, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Ryan K. Patrick for the Southern District of Texas.
Clyde Williams, 52, of Houston, Texas, admitted to conspiracy to commit murder for hire. U.S. District Judge Sim Lake accepted the plea today and has set sentencing for Sept. 17, 2020. At that time, Williams faces up to life imprisonment for his participation in this murder for hire scheme.
During the hearing today, Williams admitted that in June 2014, he was hired to kill a 43-year-old Houston man. He expected to be paid $20,000 in return.
The victim was to be killed because he was suspected of stealing approximately 50 kilograms of cocaine from a truck driver involved in a drug organization – David Roberts, 44, of Houston. Roberts has also pleaded guilty, admitting to regularly transporting large kilograms of cocaine from Houston to Atlanta, Georgia, and transporting large quantities of cash on behalf of the drug organization’s leader.
In April 2014, Roberts received two duffle bags filled with cocaine in Houston. Soon after the delivery, a lone gunman robbed Roberts of the cocaine. The leader of the drug organization believed the victim and another individual were responsible for the robbery and assembled a plan to kill them.
On April 23, 2014, the other individual was kidnapped, zip-tied and put in the trunk of a car. While being transported, he was able to break free, open the trunk and jump out of the vehicle. A good Samaritan saw him, picked him up and attempted to drive him to safety. However, they were pursued and attacked with gunshots. Both were struck but survived.
Following this failed deadly attack, the second victim was targeted. Williams was hired to conduct the murder and was provided a firearm. Williams admitted he was told the victim would be meeting with his parole officer on July 1, 2014. Following the appointment, the victim returned to his vehicle in the parking lot, at which time Williams fired multiple shots, some at close range, killing the man as he sat in the driver’s seat.
The charges are the result of the Houston Law Enforcement Violent Crime Initiative created in June 2017 which combines personnel and resources from numerous local, state and federal law enforcement agencies. The goal of the initiative is to proactively fight and reduce violent crime across the Greater Houston area by targeting the region’s most violent offenders, augmenting investigative and prosecutorial efforts, and enhancing training, public awareness and education.
The FBI, Houston Police Department, Texas Department of Criminal Justice, U.S. Bureau of Prisons, U.S. Marshals Service and the Texas Department of Public Safety conducted the investigation. Trial Attorney Jim Nelson of the Department of Justice’s Capital Case Section and Assistant U.S. Attorneys Steve Mellin and Sebastian Edwards are prosecuting the case.
Tax Return Preparer Pleads Guilty to Obstructing the IRSRead the Press Release
DENVER – Gerardo Herrera, age 63, of Denver, Colorado pled guilty today before U.S. District Court Judge William J. Martinez to corruptly endeavoring to obstruct or impede the due administration of the Internal Revenue Code announced United States Attorney Jason R. Dunn and IRS – Criminal Investigation Special Agent in Charge Andy Tsui. Herrera’s sentencing is scheduled for April 1, 2020.
According to the Information and plea agreement, between January 2011 and May 2017, Herrera operated Lobo Multiservicios (LMS) in the Denver area assisting taxpayers submit personal income tax returns to the IRS. LMS catered primarily to Hispanic taxpayers and used local media to advertise its tax preparation services.
As part of the scheme, Herrera prepared and submitted or instructed other LMS employees to prepare and submit false tax returns electronically using LMS’ unique electronic filer information number (EFIN). On each occasion, Herrera provided the false information submitted to the IRS to ensure the taxpayer(s) would receive a refund from the IRS in an amount higher than they were entitled to claim if the tax return reflected truthful and accurate information.
The IRS obtained a permanent injunction against Herrera and LMS on January 7, 2016 barring Herrera and his businesses from preparing tax returns or assisting others in the preparation of tax returns. Approximately one month after obtaining the injunction, the IRS discovered Herrera had opened a new office and resumed preparing tax returns using new business names, including “Gabby Professional Service”, “Los Lobos Professional”, “FaroMultiservicios LLC” and “Lizeth Professional Service”. Throughout 2015, Herrera or his companies acting at his direction used other electronic filing identification numbers (EFIN) associated with N.V. without N.V.’s knowledge.
This case is being investigated by the Internal Revenue Service – Criminal Investigation. This case is being prosecuted by Assistant United States Attorney Jaime Pena.
Suicidal man admits to deliberately ramming military baseRead the Press Release
CORPUS CHRISTI, Texas – A 47-year-old Beeville man charged with destruction of U.S. government property and possession of a stolen firearm has admitted his guilt, announced U.S. Attorney Ryan K. Patrick.
Brian Dale Robinson pleaded guilty today before U.S. District Judge Nelva Gonzales Ramos.
Robinson admitted he knew the firearm in his possession was stolen and he intentionally damaged federal property. He had hit a barricade located at the North gate entrance of the Naval Air Station (NAS) in Corpus Christi.
On Oct. 7, Robinson was at a gas station in Beeville when he spotted a Dodge Ram 3500 pickup truck with the engine running. He then entered that vehicle without permission and drove straight to Corpus Christi. There, he approached the NAS and attempted to gain unauthorized access to the base by crashing through the gate. However, the vehicle became inoperable after he hit the barricade.
Robinson exited the pickup truck and fled on foot into the base with a handgun he had stolen from the vehicle and hid next to a dumpster. Law enforcement immediately arrested him. Robinson claimed he had suicidal thoughts. However, he opted to drop the weapon so no one else would be hurt. Following his arrest, they located an HS Produkt, model XDM-9, 9mm pistol loaded with a full magazine.
U.S. District Judge Nelva Gonzales Ramos will impose sentencing March 19, 2020. At that time, Robinson faces up to 10 years in federal prison and a possible $250,000 maximum fine.
He has been and will remain in custody pending that hearing.
The Naval Criminal Investigative Service and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
St. Augustine Man Sentenced to More Than 14 Years in Federal Prison for Attempting to Entice Two Young Children for SexRead the Press Release
Jacksonville, Florida – United States District Judge Marcia Morales Howard has sentenced Brian Ray Dunlap (67, St. Augustine) to 14 years and 7 months in federal prison for attempting to entice two young children to engage in sexual activity. Dunlap was also ordered to serve a 10-year term of supervised release and to register as a sex offender.
Dunlap had pleaded guilty on July 25, 2019.
According to court documents, evidence, and testimony, on October 6, 2018, a detective with the St. Johns County Sheriff’s Office, who was posing online as a custodial family member of two children ages 9 and 12, received an email message from Dunlap. Over the next three days, Dunlap and the undercover detective exchanged emails and text messages about Dunlap’s desire to meet the children to engage in sexual activity with them. Dunlap advised that he was an amateur photographer and that he wanted to “[t]ake their pictures naked” and perform oral sex on them. Dunlap provided the undercover detective with graphic details about the sexual acts that he wished to perform on the two children, and he offered to pay the undercover detective $200 for sex with the children. Dunlap told the undercover detective that finding someone that would permit him to have sex with their children was “a dream come true.”
On October 9, 2018, Dunlap traveled to a prearranged location in St. Johns County to meet and have sex with the two children and was arrested.
This case was investigated by the St. Johns County Sheriff’s Office and the Federal Bureau of Investigation in Jacksonville. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case 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.
Service awards presented to retiring members of the Indiana Internet Crimes Against Children Task ForceRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced that the U.S. Attorney’s Office presented service awards to Indiana State Police Captain Charles “Chuck” L. Cohen and Indiana Department of Education Director Catherine “Cathy” J. Danyluk to recognize them for their extraordinary work on behalf of the Indiana Internet Crimes Against Children Task Force.
“The U.S. Attorney’s Office would like to congratulate Chuck Cohen and Cathy Danyluk on their retirement, to thank them for their tireless efforts, and for their exemplary work in protecting children from being sexually exploited by online predators,” said Minkler.
The Internet Crimes Against Children Task Force Program (ICAC) is a national network of 61 coordinated task forces representing more than 4,500 federal, state, and local law enforcement and prosecutorial agencies. These agencies are engaged in both proactive and reactive investigations, forensic examinations, and criminal prosecutions. By helping state and local agencies develop effective, sustainable responses to online child victimization – including responses to child sexual abuse images, the ICAC Program has increased law enforcements capacity to combat technology facilitated crimes against children at every level.
The ICAC Program was developed in response to the increasing number of children and teenagers using the Internet and other technology, the proliferation of child sexual abuse images available electronically, and the heightened online activity by predators seeking unsupervised contact with potential underage victims. Because ICAC Members understand that arrests alone cannot resolve the problem of technology-facilitated child sexual exploitation, the ICAC Program is also dedicated to training law enforcement officers and prosecutors, as well as educating parents and youth about the potential dangers of online activity.
Chuck Cohen, Captain of the Indiana State Police (ISP) and the Commander of Intelligence and Investigative Technologies, will retire in December after having been employed with ISP since 1994. Chuck is also the ICAC Task Force Commander and the Indiana Intelligence Fusion Center Executive Director. Chuck is responsible for the cybercrime, electronic surveillance, technical services, and internet crimes against children units along with overseeing the department’s overt and covert criminal intelligence functions. Chuck speaks internationally on topics including the implications of online social networks in criminal investigations and criminal intelligence gathering, cybercrime, online fraud, money laundering, corruption investigations, and the investigation of skilled criminal offenders. Chuck has trained investigators and analysts on five continents.
Cathy Danyluk, the Director of Student Services and State Attendance Officer for the Indiana Department of Education, has retired after 35 years of service with the department. In that role, Danyluk worked with the Indiana ICAC to provide educational services to teachers, coaches, and other school personnel about online child exploitation. Danyluk and her staff helped the U.S. Attorney’s Office produce videos featuring interviews of convicted sex offenders to help others to understand the offenders’ methods of victim selection and criminal tradecraft. Danyluk also assisted law enforcement in their efforts to identify school aged children in Indiana who had been sexually exploited, but who could not be identified by other methods.
The U.S. Attorney’s Office is proud of Chuck Cohen and Cathy Danyluk and we are grateful for their service in protecting children against internet crimes.
Selma Jury Convicts Man for Illegal Possession of a FirearmRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that a jury at the federal courthouse in Selma, Alabama convicted Jessie James Turner, Jr. of being a Felon in Possession of a Firearm, in violation of Title 18 USC Section 922 (g)(1), on November 14, 2019, after a three day trial. United States District Court Judge Terry F. Moorer presided over the trial. According to testimony at the trial, the case arose after Turner started firing through walls of his apartment and the Selma Police Department was called to the scene. Turner was found in possession of two AR-15 assault rifles and a .40 caliber handgun. Under federal law, Turner is prohibited from possession firearms or ammunition as a result of his previous felony convictions. The jury acquitted Turner of being in possession of a stolen firearm in violation of Title 18 USC Section 922 (j).
The case was tried by Assistant United States Attorney (AUSA) Kasee S. Heisterhagen with the assistance of AUSA George F. May, Deputy Criminal Chief. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Selma Police Department. Turner’s sentencing was set by Judge Moorer for February 27, 2020.
Sanford Man Pleads Guilty to Transferring Obscene Material to a MinorRead the Press Release
Portland, Maine: A Sanford man pleaded guilty today in federal court in Portland to transferring obscene material to a minor, U.S. Attorney Halsey B. Frank announced.
According to court records, in October 2018, Dylan Neill, 38, used a social media application to send a series of videos and images to a minor under 16 years old. Several of the videos depicted Neill repeatedly penetrating the anus of an adult female with his fingers.
Neill faces up to 10 years imprisonment and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The Sanford Police Department and the FBI investigated the case.
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 U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Russian Hacker Who Used NeverQuest Malware to Steal Money from Victims’ Bank Accounts Sentenced in Manhattan Federal Court to Four Years in PrisonRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that STANISLAV VITALIYEVICH LISOV, a/k/a “Black,” a/k/a “Blackf” (“LISOV”), was sentenced to 48 months in prison today for conspiring to deploy and use a type of malicious software known as NeverQuest to infect the computers of unwitting victims, steal their login information for online banking accounts, and use that information to steal money out of the victims’ accounts. NeverQuest has been responsible for millions of dollars’ worth of attempts by hackers to steal money out of victims’ bank accounts. LISOV was sentenced by U.S. District Judge Valerie E. Caproni, who presided over his guilty plea earlier this year.
U.S. Attorney Geoffrey S. Berman stated: “Stanislav Vitaliyevich Lisov, a Russian hacker, used malware to infect victims’ computers, obtain their login credentials for online banking accounts, and steal money from their accounts. This type of cybercrime threatens personal privacy and harms financial institutions. Lisov’s arrest, extradition, conviction, and prison sentence should send an unmistakable message about this Office’s firm commitment to prosecuting hackers – domestic and foreign alike.”
According to the allegations in the Indictment to which LISOV pled guilty, public court filings, and statements made in court:
NeverQuest is a type of malicious software, or malware, known as a banking Trojan. It can be introduced to victims’ computers through social media websites, phishing emails, or file transfers. Once surreptitiously installed on a victim’s computer, NeverQuest is able to identify when a victim attempted to log onto an online banking website and transfer the victim’s login credentials – including his or her username and password – back to a computer server used to administer the NeverQuest malware. Once surreptitiously installed, NeverQuest enables its administrators remotely to control a victim’s computer and log into the victim’s online banking or other financial accounts, transfer money to other accounts, change login credentials, write online checks, and purchase goods from online vendors.
Between June 2012 and January 2015, LISOV was responsible for key aspects of the creation and administration of a network of victim computers known as a “botnet” that was infected with NeverQuest. Among other things, LISOV maintained infrastructure for this criminal enterprise, including by renting and paying for computer servers used to manage the botnet that had been compromised by NeverQuest. Those computer servers contained lists with approximately 1.7 million stolen login credentials – including usernames, passwords, and security questions and answers – for victims’ accounts on banking and other financial websites. LISOV had administrative-level access to those computer servers.
LISOV also personally harvested login information from unwitting victims of NeverQuest malware, including usernames, passwords, and security questions and answers. In addition, LISOV discussed trafficking in stolen login information and personally identifying information of victims.
On January 13, 2017, LISOV was arrested in Spain pursuant to a provisional arrest warrant. On January 19, 2018, LISOV was extradited from Spain to the United States.
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In addition to his prison term, LISOV, 34, a citizen of Russia, was sentenced to three years of supervised release, and was ordered to pay forfeiture of $50,000 and restitution of $481,388.04.
Mr. Berman praised the outstanding investigative efforts of the Federal Bureau of Investigation.
The matter is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Michael D. Neff is in charge of the prosecution.
Rhode Island Man Pleads Guilty to Fraudulently Acquiring Firearms from a Licensed DealerRead the Press Release
Portland, Maine: A Pawtucket, Rhode Island man pleaded guilty today in federal court in Portland to providing false information in connection with the acquisition of firearms from a licensed dealer, U.S. Attorney Halsey B. Frank announced.
According to court records, on five separate occasions between April 2018 and August 2018, Salvador Rodrigues, 22, purchased firearms from Kittery Trading Post. During each of the five purchases, Rodrigues presented an invalid Maine driver’s license and/or falsely claimed in writing that he had not been convicted of a felony offense. In fact, he had been convicted in Rhode Island of felony possession of a pistol without a license and a felony drug offense in May 2018.
Rodrigues faces up to 10 years in prison and a $250,000 fine on each of the five counts to which he pleaded guilty. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The Pawtucket Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case, which was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. For more information about PSN please visit www.justice.gov/psn.
Providence Woman Facing Federal Prison and Deportation After Admitting to Trafficking More Than 3 Kilos of Fentanyl and HeroinRead the Press Release
PROVIDENCE – A Providence woman arrested in November 2018 when federal agents seized more than three kilograms of fentanyl and heroin during a court-authorized search of her home is facing a federal prison sentence and deportation after pleading guilty in federal court today to possession with intent to distribute 400 grams or more of fentanyl.
Marleni Difo, 27, a Dominican national, was arrested on November 2, 2018, when members of the DEA Drug Task Force executed a federally authorized warrant to search her single-family residence and seized plastic bags containing 3.2 kilograms of a mixture of fentanyl and heroin and 403 grams of a mixture containing both heroin and carfentanil.
Also seized were three digital scales and numerous other items used in the packaging and distribution of narcotics, including sealed bottles of lactose powder, a white powder used as a cutting agent for narcotics, including fentanyl and cocaine.
Difo’s guilty plea before U.S. District Court Judge Mary S. McElroy is announced by United States Attorney Aaron L. Weisman and DEA Special Agent in Charge Brian D. Boyle.
Difo is scheduled to be sentenced on February 21, 2020.
The case is being prosecuted by Assistant U.S. Attorneys Milind M. Shah and Paul F. Daly, Jr.
United States Attorney Aaron Weisman and DEA Special Agent in Charge Brian D. Boyle thank the Providence Police Department for their assistance in the investigation of this matter.
The Rhode Island DEA Drug Task Force is comprised of agents and law enforcement officers from the DEA, ATF, IRS, Homeland Security Investigations, Rhode Island State Police and Cranston, East Providence, Pawtucket, Providence, Newport, South Kingstown, Warwick, West Warwick and Woonsocket Police Departments.
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Pataskala couple plead guilty to defrauding federal student loan programs, Medicaid, SNAP, HUD, as well as committing tax fraudRead the Press Release
COLUMBUS, Ohio – A Pataskala couple have pleaded guilty to conspiring to defraud multiple federal programs by committing student-aid fraud, tax-return fraud, and Medicaid and SNAP fraud. One defendant also pleaded guilty to making a false statement to the U.S. Department of Housing and Urban Development and witness tampering, while the other pleaded guilty to committing bank fraud. They caused a total loss of more than half a million dollars.
Damien M. Johnson, 39, pleaded guilty in U.S. District Court this morning before U.S. District Judge Edmund A. Sargus, Jr. to one count of conspiracy to commit student loan fraud and one count of bank fraud. Kisha C. Hollins-Johnson, 41, pleaded guilty in August to one count of conspiring to commit student loan fraud and theft of government funds, committing student loan fraud, making a false statement to HUD, witness tampering and two counts of theft of government money.
According to their pleas, from at least 2011 through 2017, the defendants recruited more than five people to provide their personal information to apply for college admissions at Columbus State Community College.
All of the students fraudulently enrolled in online classes at the college by lying on their financial aid forms. Hollins-Johnson completed coursework for all of the students. The students were enrolled in the same courses and chose the same or similar topics for their papers.
When Johnson was not making satisfactory academic progress, Hollins-Johnson created fake documents, including medical records, for use in an academic appeals process in order for Johnson to remain eligible to receive financial aid. She fabricated a letter purporting to be from a doctor that claimed Johnson had sickle cell anemia. The doctor did not write the note, and in fact was a gynecologist.
In total, the U.S. Department of Education issued nearly $220,000 to Columbus State and as refunds to the defendants. Any amount of student loan above the cost of tuition and fees was given to the defendants.
Johnson also committed bank fraud by obtaining seven checks totaling at least $73,000 from an 87-year-old victim who had dementia. Johnson used the money on a variety of personal transactions, including $7,150 at a pawnshop, $1,798 at Gucci, $1,558 at Louis Vuitton, $1,182 in payments to vehicle dealers and $2,500 at a law firm.
Hollins-Johnson submitted false tax returns by claiming fake defendants and educational credits. Johnson contacted the IRS pretending to be at least one of the other taxpayers and delivered portions of the tax refunds to other individuals.
The couple also fraudulently obtained SNAP food stamp benefits by claiming they were each single when they were married. As part of the conspiracy, Hollins-Johnson submitted false letters verifying Johnson’s employment for food stamp eligibility.
In 2014, Hollins-Johnson submitted an application for a $200,000 home loan insured by the FHA. When she submitted the loan application, she used fabricated employment documents that stated she worked for the State of Ohio. Additionally, she fabricated a form the mortgage company sent to a person they believed was a Human Relations Manager to verify employment.
After investigators searched Hollins-Johnson’s residence, she engaged in witness tampering. She engaged in a scheme that involved creating a fake Facebook account and using an app that allows users to change their caller ID and apply a voice changer feature to call a witness in the case. The scheme led to an in-person meeting, where Hollins-Johnson instructed the witness not to talk with law enforcement.
As part of their pleas, the defendants agree to pay more than $450,000 in restitution.
Bank fraud is punishable by up to 30 years in prison. Witness tampering is punishable by up to 20 years in prison. Theft of government money is punishable by up to 10 years in prison. Congress sets the maximum statutory sentence. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Bryant Johnson, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation; Brad Geary, Special Agent in Charge, U.S. Department of Housing and Urban Development Office of Inspector General; John F. Woolly, Special Agent in Charge, U.S. Department of Education Office of Inspector General; and officials with the Fairfield County Job & Family Services Fraud and Benefit Recovery division announced the plea entered into today before U.S. District Judge U.S. District Judge Edmund A. Sargus, Jr. Assistant United States Attorney Peter K. Glenn-Applegate is representing the United States in this case.
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Owner of Long Island Painting Firm Sentenced to Prison for Tax EvasionRead the Press Release
A Long Island, New York, business owner was sentenced to 12 months and one day in prison today for tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to documents filed in this case and statements made in court, Warren J. Krotz, 62, of Huntington, New York, owned and operated W. Krotz Enterprises Inc. (WKEI), a professional painting business that provided services throughout Long Island. From 2010 through 2016, Krotz evaded both his individual income and employment tax liabilities. During this time, Krotz cashed approximately $6 million in checks at several check-cashing facilities. These checks were gross receipts of WKEI, but Krotz did not report the amounts on WKEI’s corporate income tax returns. Krotz also paid approximately $2 million in cash wages to employees, and did not withhold and pay over to the Internal Revenue Service (IRS) approximately $300,000 in employment taxes that were due.
Additionally, Krotz admitted to receiving approximately $3 million in income that he did not report on his personal tax returns. In total, Krotz admitted to causing a tax loss to the IRS of approximately one million dollars.
In addition to the prison term, U.S. District Judge Denis R. Hurley sentenced Krotz to serve three years of supervised release and to pay restitution of $1,031,633 to the IRS.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Jessica Moran and Kathryn Sparks of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Oregon Securities Broker Charged with Investment Churning and Tax EvasionRead the Press Release
PORTLAND, Ore.—A 13-count indictment was filed in federal court today charging James W. Millegan, 62, a former Oregon securities broker, with investment account churning and tax evasion.
Millegan, who currently resides in McMinnville, Oregon, owned and operated J.W. Millegan, Inc., a commission-based investment advisory business serving clients primarily located in the Portland and Salem, Oregon metropolitan areas.
According to the indictment, beginning in March 2012 and continuing until May 2017, Millegan is alleged to have churned the investment accounts of 12 different clients. Churning occurs when a securities broker engages in excessive buying and selling in a client’s account to generate commissions benefitting the broker with no reasonable expectation the client will benefit from the trading. When accounts are churned, clients are prevented from earning investment profits on the money they pay in excessive fees and commissions.
Millegan’s alleged actions generated more than $2.5 million in trading commissions and cost these 12 investors more than $4.3 million in estimated unrealized investment gains.
Additionally, between July 2006 and September 2016, Millegan is alleged to have willfully evaded payment of more than $3.3 million in personal income taxes. To conceal approximately $3.7 million in commissions from the IRS, Millegan allegedly transferred funds to hidden bank accounts and filed false financial statements.
This case was investigated by the FBI and IRS-Criminal Investigation and is being prosecuted by Seth D. Uram, Assistant U.S. Attorney for the District of Oregon.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Indictment AttachedNew York Man Pleads Guilty to Aggravated Identity Theft and Conspiracy to Commit Bank FraudRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announces the guilty plea of MYLES NICHOLAS, age 32, of Jamaica, New York, to charges of conspiracy to commit bank fraud and aggravated identity theft. NICHOLAS entered his plea on November 20, 2019 before U.S. District Judge Martin L.C. Feldman.
According to court documents, members of the Louisiana Financial Crimes Task Force received information that NICHOLAS and his co-defendant, Terrence Nealy, would be flying to New Orleans from New York on the morning of June 21, 2019. Jefferson Parish Sheriff’s Office deputies and U.S. Secret Service agents initiated surveillance at New Orleans International Airport, where they observed NICHOLAS and Nealy arrive on their flight from New York’s JFK Airport. NICHOLAS and Nealy then rented a car and immediately drove to Baton Rouge. While in Baton Rouge, the defendants attempted to open a fraudulent credit card account at two Best Buy stores using a stolen identity. They then traveled back to New Orleans where they were arrested by state and federal law enforcement.
As to the charge of conspiracy to commit bank fraud, NICHOLAS faces a maximum penalty of 30 years in prison, a $1,000,000.00 fine, and up to five years of supervised release. As to the aggravated identity theft, NICHOLAS must receive a mandatory sentence of two years in prison that must be served consecutively to any other sentence. He may also be fined up to $250,000.00, and he may receive up to one year of supervised release. Sentencing is set for Wednesday, March 18, 2020, before Judge Feldman.
U.S. Attorney Strasser praised the agencies that contributed to this conviction, which represents a coordinated effort of federal and state law enforcement authorities within the Louisiana Financial Crimes Task Force. The Task Force includes representatives from the U.S. Secret Service, the U.S. Postal Inspection Service, Homeland Security Investigations, U.S. State Department, Internal Revenue Service, Social Security Administration-Office of Inspector General, the Defense Criminal Investigative Service, the Louisiana Attorney General’s Office, the Jefferson Parish Sheriff’s Office, the New Orleans Police Department, the Covington Police Department, Hammond Police Department, Kenner Police Department, Louisiana State Police, Mandeville Police Department, Slidell Police Department, St. Bernard Parish Sheriff’s Office, St. John The Baptist Sheriff’s Office, St. Tammany Parish Sheriff’s Office, Tangipahoa Parish Sheriff’s Office, and the St. Tammany Parish District Attorney’s Office. Assistant United States Attorney Matthew R. Payne is in charge of the prosecution.
New Orleans Westbank Man Pleads Guilty to Distributing HeroinRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that BRYAN JOSEPH, age 39, of Harvey, Louisiana, pled guilty on November 20, 2019 to distributing heroin in Jefferson Parish.
According to court documents, on October 14, 2018, deputies with Jefferson Parish Sheriff’s Office were dispatched to a McDonald’s restaurant located in Harvey, Louisiana. When deputies arrived, they were advised that an unresponsive male was found in a bathroom stall. Deputies found an uncapped needle, needle cap, bent spoon and corner of a cellophane bag near the body. Detectives reviewed the store’s video surveillance and saw the victim arrive ae the restaurant on a bicycle and enter the bathroom. The victim never exited the bathroom. Subsequently, Jefferson Parish Sheriff’s Office contacted the Federal Bureau of Investigation who then assisted with the investigation. Through the investigation, agents determined that JOSEPH sold the victim a quantity of heroin prior to the victim’s death. Jefferson Parish Forensic Center conducted an autopsy, which concluded that the victim died as a result of the toxic effects of heroin and fentanyl.
Agents furthered their investigation by purchasing heroin from JOSEPH on October 23, 2018 and October 25, 2018. On October 31, 2018, agents executed a search warrant at JOSEPH’s residence and located approximately 68.8 grams of heroin, approximately 156 grams of marijuana, digital scales and sandwich bags.
JOSEPH faces a maximum sentence of 20 years imprisonment, a possible fine of $1,000,000, and at least 3 years of supervised release. U.S. District Judge Jane Triche Milazzo scheduled JOSEPH to be sentenced on March 20, 2020.
U.S.Attorney Strasser praised the work of the Federal Bureau of Investigation, New Orleans Gang Task Force and Jefferson Parish Sheriff’s Office. Assistant United States Attorney Nolan D. Paige is in charge of the prosecution.
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New Haven Crack Dealer Sentenced to Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that OSVALDO SAEZ, 32, of New Haven, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 24 months of imprisonment, followed by three years of supervised release, for his role in a New Haven drug trafficking ring.
According to court documents and statements made in court, in June 2017, the FBI’s New Haven Safe Streets/Gang Task Force initiated an investigation into a New Haven drug trafficking organization headed by Jermayne Butler. The investigation, which included physical surveillance, 13 controlled purchases of narcotics, and court-authorized wiretaps on multiple phones, revealed that members of the organization were distributing crack cocaine and oxycodone in the New Haven area.
Saez received distribution quantities of crack cocaine from another member of the conspiracy and sold the drug to customers in New Haven.
Saez, Butler and several other members of the organization were arrested on federal criminal complaints on February 6, 2018. On February 8, 2018, a grand jury in New Haven returned a 30-count indictment charging 19 individuals with various offenses.
Saez has been detained since January 16, 2019, when his bond was revoked. On July 30, 2019, he pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, cocaine base. (“crack”).
Butler pleaded guilty to the same offense on August 9, 2019. He awaits sentencing.
This matter is being investigated by the FBI’s New Haven Safe Streets/Gang Task Force, which includes members from the New Haven Police Department, Milford Police Department, West Haven Police Department and Connecticut Department of Correction. The case is being prosecuted by Assistant U.S. Attorneys Patrick F. Caruso and David C. Nelson.
New Charges Filed Against Wake Forest Investment Adviser Including Securities Fraud, Money Laundering and Wire Fraud and Wire FraudRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that a federal grand jury has returned an Indictment charging ANTHONY WAYNE MARCH, 48, of Wake Forest, North Carolina, with one count of Securities Fraud; three counts of Wire Fraud; one count of Bankruptcy Fraud; one count of Obstruction of Bankruptcy Case; three counts of False Oaths; and four counts of Money Laundering.
The Indictment alleges that the defendant, ANTHONY WAYNE MARCH (“MARCH”), operated the non-profit 501(c)(3) entity Asset Trader, located in Rolesville, NC, from in or between 2012 to 2015. Asset Trader was a purported non-profit tax-exempt company formerly known as CGA Exchange or The CGA Exchange, Inc. (herein “Asset Trader”). MARCH represented that Asset Trader offered educational services to professionals and taxpayers in the area of exit planning. Asset Trader’s stated educational mission allowed it to obtain classification as a 28 U.S.C. § 501(c)(3) tax-exempt non-profit organization.
Asset Trader used its §501(c)(3) tax-exempt status to solicit tax-deductible donations in exchange for charitable gift annuities (“CGAs”) and to recruit referral sources to obtain assets from potential donors. Through Asset Trader, MARCH and his co-conspirators engaged and executed what is commonly known as a “Ponzi” scheme to defraud investors by inducing them to invest with Asset Trader.
During the course of the scheme, MARCH solicited at least 22 victims to invest over $8,100,000 in charitable gift annuities and other products offered by Asset Trader. MARCH and Asset Trader sold these securities to victims as retirement or exit planning vehicles classified as donations to MARCH’S § 501(c)(3) tax-exempt non-profit organization. MARCH did not utilize any of the victim’s money for charitable purposes, rather, he spent the money on “Ponzi” payments, his own lavish lifestyle, and expenses of the scheme.
MARCH faces the following penalties on the charged offenses: For Securities Fraud, not more than 20 years imprisonment; for Wire Fraud, not more than 20 years imprisonment on each count; for Bankruptcy Fraud, not more than 5 years imprisonment for each count; for False Bankruptcy Declaration, not more than 5 years imprisonment; for Obstruction of Bankruptcy and Concealing Records, not more than 5 years imprisonment; for False Oaths, not more than 5 years; for Money Laundering, not more than 10 years. MARCH also faces over a $1 Million in fines, as well as further forfeiture of property.
An Indictment is an allegation of a crime. The defendant is presumed under the law to be innocent until proven guilty.
The Internal Revenue Service Criminal Investigation Division (IRS-CI), and the North Carolina Secretary of State, Securities Division conducted the investigation in this matter. The Office of the U.S. Bankruptcy Administrator for the Eastern District of North Carolina provided substantial assistance. Assistant United States Attorney Ethan Ontjes, Special Assistant United States Attorney Brian Behr, and Special Assistant United States Attorney Kevin Harrington represent the United States.
New Britain Resident Admits Possessing Child Pornography, Violating Supervised ReleaseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Jason J. Molina, Acting Special Agent in Charge of Homeland Security Investigations (HSI) in Boston, today announced that BRIAN HERNDON, 45, of New Britain, waived his right to be indicted and pleaded guilty yesterday in New Haven federal court to one count of possession of child pornography. Herndon also admitted that he violated the conditions of his supervised release from a prior federal conviction.
According to court documents and statements made in court, on January 12, 2009, Herndon was sentenced in New Haven federal court to 72 months of imprisonment, followed by five years of supervised release, for possessing child pornography. He was released from federal prison in May 2014. On September 1, 2015, U.S. Probation officers searched Herndon’s residence and seized a laptop. Subsequent forensic examination of the laptop revealed approximately 2,269 images and 74 videos of child pornography.
Herndon is scheduled to be sentenced by U.S. District Judge Michael P. Shea in Hartford on February 24, 2020, at which time Herndon faces a maximum term of imprisonment of 20 years for possessing child pornography, and up to two years in prison for violating the conditions of he supervised release.
Herndon is released on bond and remains under court supervision pending sentencing.
This investigation is being conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). The case is being prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Motorcycle gang member heads to prison for illegally possessing ammunitionRead the Press Release
CORPUS CHRISTI, Texas – A 37-year-old Corpus Christi resident who was involved in a shooting at a local convenience store has been sentenced following his conviction of unlawful ammunition possession, announced U.S. Attorney Ryan K. Patrick.
Billy Boortz, a member of the Homietos outlaw motorcycle gang and former member of the Mexican Mafia gang, pleaded guilty July 24.
Today, U.S. District Judge David S. Morales handed him a 110-month sentence to be immediately followed by three years of supervised release. At the hearing, the court heard additional evidence that Boortz intentionally tried to murder the victim in this case. In handing down the sentence, the court noted Boortz fired his pistol directly at the victim, not in the air or at the ground, and that the offense would have constituted attempted second degree murder.
On May 11, Boortz was engaged in a physical altercation with another man. He then returned to a vehicle, retrieved a weapon and fired several rounds at the victim, hitting the victim’s vehicle and striking the victim in the foot.
Agents were able to identify Boortz using video footage. He had been taken into custody at a local hospital on May 26, where he was treated for a gunshot wound he received after another shooting.
Boortz was previously convicted of multiple felony offenses, including aggravated assault, aggravated assault on a public servant, evading arrest with a vehicle and unlawful possession of a firearm by a felon. He is, therefore, prohibited from possessing firearms or ammunition per federal law.
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.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Corpus Christi Police Department Gang Unit conducted the investigation.
The case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.
Assistant U.S. Attorney David Paxton prosecuted the case.
Monsanto Agrees to Plead Guilty to Illegally Spraying Banned Pesticide at Maui FacilityRead the Press Release
CRIMINAL INFORMATION PLEA AGREEMENT FACTUAL BASIS DPA CONDITIONS OF PROBATIONLOS ANGELES – Monsanto Company has agreed to plead guilty to illegally using a banned pesticide known as Penncap-M on research crops at one of its facilities on the Hawaiian island of Maui.
In court documents filed today in United States District Court in Honolulu, Monsanto agreed to plead guilty to a misdemeanor offense of unlawfully spraying a banned pesticide – specifically methyl parathion, the active ingredient in Penncap-M –which the company used on corn seed and research crops at its Valley Farm facility in Kihei, Hawaii in 2014.
Monsanto admitted in the court documents that it used Penncap-M, even though the company knew its use was prohibited after 2013 pursuant to a “cancellation order” issued by the Environmental Protection Agency. The company further admitted that, after the 2014 spraying, it told employees to re-enter the sprayed fields seven days later – even though Monsanto knew that workers should have been prohibited from entering the area for 31 days.
The documents filed today also include a deferred prosecution agreement related to two felony counts of unlawfully storing an acute hazardous waste. Pursuant to the agreement, Monsanto will pay $10 million – a $6 million criminal fine and $4 million in community service payments to Hawaiian government entities. The government agreed to dismiss the felony charges in two years if Monsanto abides by the agreement, which includes paying a total of $10.2 million, successfully completing a two-year period of compliance with the agreement’s terms, and maintaining a comprehensive environmental compliance program at all of its facilities in Hawaii to ensure compliance with all federal environmental laws.
“The illegal conduct in this case posed a threat to the environment, surrounding communities and Monsanto workers,” said United States Attorney Nick Hanna. “Federal laws and regulations impose a clear duty on every user of regulated and dangerous chemicals to ensure the products are safely stored, transported and used.”
In a statement of facts filed in court today, Monsanto admitted that it knowingly used, transported and stored Penncap-M in violation of federal law. The pesticide “had to be managed as an acute hazardous waste in compliance with the Resource Conservation and Recovery Act (RCRA),” which prohibited the storage or transportation of the pesticide without a permit after 2013.
From March 2013 through August 2014, even though the pesticide was on the company’s lists of chemicals that needed disposal, Monsanto stored 160 pounds of Penncap-M hazardous waste at its Molokai facility, which under RCRA made Monsanto a “Large Quantity Generator” of hazardous waste.
In addition to spraying the banned pesticide at one of its three facilities on Maui, Monsanto also stored a total of 111 gallons of Penncap-M at Valley Farm and sites known as Maalaea and Piilani. Just like on Molokai, the storage of Penncap-M at the three Maui sites made Monsanto a “Large Quantity Generator” of acute hazardous waste at the three locations, according to court documents. Furthermore, when it transported Penncap-M to its Valley Farm site in 2014, the company violated federal law when it failed to use a proper shipping manifest to identify the hazardous material and when it failed to obtain a permit to accept hazardous waste at that site.
“To protect human health and the environment, pesticides must be properly applied and stored,” said Special Agent-in-Charge Jay M. Green of EPA’s criminal enforcement program in Hawaii. “EPA will continue to work in close partnership with our state and local counterparts to bring cases against those who knowingly threaten the health and safety of Hawaiian communities.”
In addition to $6 million criminal fine, Monsanto has agreed to make a total of $4 million in community service payments. The five Hawaiian agencies that each will receive $800,000 are: the Hawaii Department of Agriculture, to create and fund a Pesticide Disposal Program and for training and education purposes; the Hawaii Department of Land and Natural Resources, Maui Division of Aquatic Resources, for use in its marine programs; the Hawaii Department of Health, Hazardous Waste Branch, for use in its training and education programs; the Hawaii Department of Health, Environmental Management Division, for water quality monitoring, water quality improvements, and training and education purposes; and the Kahoolawe Island Reserve Commission, for use in the clean-up of the island of Kahoolawe.
In relation to the criminal count Monsanto to which has agreed to plead guilty, the company has agreed to be on probation for two years and to pay the maximum possible fine of $200,000.
This case is the result of an investigation by the U.S. Environmental Protection Agency, Criminal Investigation Division.
This matter is being prosecuted by Mark A. Williams and Dennis Mitchell, who are special attorneys appointed by the Attorney General pursuant to 28 USC § 515. The United States Attorney’s Office for the District of Hawaii was recused from this investigation.
Mobile County Man Sentenced to 15 Years for Disharging a Firearm in Attemped CarjackingRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Johnothan L. Lavender, 31, of Mobile, Alabama, was sentenced in federal court for discharging a firearm in furtherance of a crime of violence. Lavender pleaded guilty to the charge in August of 2019.
According to court documents filed in connection with his guilty plea, Lavender admitted that on December 26, 2017, he was approached by the victim, who wanted to buy a quantity of marijuana while at a gas station on Cottage Hill Road in Mobile. Lavender agreed to sell the victim marijuana and told the victim to follow him. Lavender got into a vehicle being driven by his co-defendant, Ryan D. Tandy-Ross, 23, of Prichard. The victim followed behind the defendants in his vehicle. Once on Jones Road, Tandy-Ross stopped the vehicle and Lavender stepped out. Lavender told the victim that the marijuana was hidden in the bushes. Lavender and Tandy-Ross then attempted to carjack the victim. In the process, the victim was shot. During the attempted carjacking, Lavender presented a Ruger .40 caliber pistol. The victim, who sped away from the assailants, sustained a gunshot wound that was painful but was not life-threatening.
United States District Court Judge Terry F. Moorer sentenced Lavender to a term of 180 months’ imprisonment. Lavender will serve a term of 5 years on supervised release upon the completion of his sentence, during which time he will undergo substance abuse treatment. Lavender was not ordered to pay a fine, but was ordered to pay a $100 special assessment. For his role in the offense, Tandy-Ross previously had pleaded guilty to a carjacking charge. On October 17, 2019, Judge Moorer sentenced Tandy-Ross to 70 months’ incarceration—a downward departure based on Tandy-Ross’s substantial assistance in the United States’ investigation and prosecution of the matter.
The case was investigated by the Mobile 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 Gina S. Vann.
Mexican citizen sentenced to prison for meth conspiracy schemeRead the Press Release
LAREDO – A 36-year-old Mexican man has been ordered to federal prison for his role in importing approximately 32 kilograms of meth inside hidden compartments of a vehicle, announced U.S. Attorney Ryan K. Patrick. Raul Edrey Manrique Bernal pleaded guilty Aug. 8.
Today, U.S. District Judge Diana Saldana handed Bernal a 51-month sentence to be immediately followed by five years of supervised release. At the hearing, the court heard additional evidence that described Bernal’s involvement in the conspiracy. She noted Bernal was educated and had a career in Mexico, adding that his involvement in drug trafficking was pure madness. The court commented that the desire for easy money caused him to make a bad decision.
On April 15, Bernal attempted to enter into the United States via the Juarez-Lincoln Bridge #1 Port of Entry, at which time a K-9 alerted to the odor of narcotics emitting from the vehicle. Authorities conducted a search and located 63 bundles discreetly hidden in aftermarket compartments in both rear quarter panels and in the bumper. The substance later tested positive for meth with a total weight of 32 kilograms.
The street value of the drugs is approximately $160,000.
Bernal 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 Investiagtions and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Anthony J. Evans prosecuted the case.
Methamphetamine Dealer Sentenced in Federal CourtRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Christopher Aaron Roddenberry, 30, of Milton, Florida, was sentenced to 15 years imprisonment in federal court this morning for his participation in a conspiracy to possess with intent to distribute methamphetamine ice. The indictment alleged that the conspiracy continued during 2016 and involved the distribution of more than 50 grams of methamphetamine, which established that the minimum mandatory sentence in the case would be at least 10 year imprisonment. Roddenberry pled guilty to the conspiracy charge in March of 2019.
At the sentencing hearing, United States District Court Judge Terry F. Moorer imposed the 15 year sentence, and ordered that Roddenberry will serve a term of 5 years of supervised release after he serves his term of imprisonment. The judge ordered that Roddenberry will undergo testing and treatment for drug abuse during his supervision. No fine was imposed, but the judge ordered that Roddenberry would pay a $100 special assessment.
The case was investigated by the Baldwin County Sheriff’s Office, the Bay Minette Police Department, and the Federal Bureau of Investigation. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Members of the 69ers Motorcycle Club Sentenced to Life in Prison for Murdering Chapter President of Rival Outlaws Motorcycle ClubRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Christopher Brian Cosimano, a/k/a “Durty,” (31, Gibsonton) and Michael Dominick Mencher, a/k/a “Pumpkin,” (53, Tarpon Springs) to life in federal prison plus ten years, and life in prison plus five years, respectively, for conspiracy to commit murder in aid of racketeering, murder in aid of racketeering, and related firearms offenses. A federal jury found Cosimano and Mencher guilty on August 12, 2019.
Cosimano and Mencher were indicted, along with three co-defendants who later pleaded guilty, on May 22, 2018.
According to testimony and court documents, Cosimano and Mencher were members of the 69’ers Motorcycle Club, a criminal organization engaged in acts of violence and narcotics distribution.
In 2017, the 69’ers Motorcycle Club was entangled in an increasingly violent feud with the Outlaws Motorcycle Club. The feud escalated, culminating with the murder of Paul Anderson, President of the Cross Bayou Chapter of the Outlaws Motorcycle Club, on December 21, 2017. On that date, Cosimano, Mencher, and their three co-defendants stalked Anderson for several miles down the Suncoast Parkway. Cosimano and Mencher rode their motorcycles with their faces covered and license plates obscured.
After following Anderson for miles, Cosimano and Mencher pulled alongside his truck and shot him repeatedly at the busy intersection of Suncoast Parkway and State Road 54, during rush hour. After the murder, the defendants took steps to cover up the crime, including removing identifying markings from and disassembling their motorcycles.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pasco Sheriff’s Office, the Hillsborough County Sheriff’s Office, the Tampa Police Department, the Pinellas County Sheriff’s Office, the St. Petersburg Police Department, and the State Attorney’s Office for the Sixth Judicial Circuit. It was prosecuted by Assistant United States Attorneys Carlton C. Gammons and Natalie Hirt Adams.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Media Advisory – Dr. Javaid Perwaiz Case UpdatesRead the Press Release
Media Advisory -- Dr. Javaid Perwaiz Case Updates
CASE NAME: United States v. Javaid Perwaiz, Criminal Case No. 2:19-mj-594
COURT: U.S. District Court for the Eastern District of Virginia, Norfolk Division
CASE SUMMARY: On November 7, the U.S. Attorney’s Office for the Eastern District of Virginia filed a criminal complaint charging the defendant, Dr. Javaid Perwaiz, with one count of health care fraud and one count of making false statements relating to healthcare matters for conduct alleged to have occurred between 2010 and October 2019. According to allegations detailed in court documents, for nearly a decade, Dr. Perwaiz performed unnecessary gynecological surgeries on women – including hysterectomies, dilation & curettages, removal of ovaries and fallopian tubes, and others – on unsuspecting patients and submitted materially false, fraudulent, and fictitious claims to two health care benefit programs, seeking reimbursement for these surgeries.
CASE STATUS: The defendant was arrested and made his initial appearance in court on November 8. The court held a detention hearing on November 14, and ordered that the defendant be detained in custody pending further proceedings in the case.
PUBLIC OUTREACH: To ensure that members of the public, including current and former patients of Dr. Perwaiz, are informed of developments in this ongoing case, the U.S. Attorney’s Office has established a page on its website, available at the following link: https://www.justice.gov/usao-edva/united-states-v-javaid-perwaiz. The website currently includes a copy of the criminal complaint and supporting affidavit summarizing the charges filed against the defendant.
In addition, the website includes the following guidance for current or former patients:
FBI TIPS: Current and former patients should contact the Federal Bureau of Investigation at 1-800-CALL-FBI or https://www.fbi.gov/tips if they would like to share information.
MEDICAL RECORDS: Current or former patients seeking a copy of their medical records should email: [email protected] with their full name and dates of service.
Please Note: FBI is not in possession of all medical records maintained by Dr. Perwaiz’s practice.
The public is reminded that a criminal complaint contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
McAllen doctor imprisoned for health care fraud scamRead the Press Release
McALLEN – A 46-year-old local man has been ordered to federal prison following his conviction of health care fraud and aggravated identity theft, announced U.S. Attorney Ryan K. Patrick. Eduardo Carrillo, of McAllen, pleaded guilty Nov. 20, 2015.
Today, U.S. District Judge Randy Crane handed Carrillo a 24-month sentence and ordered he pay $25,955 in restitution. The sentence will also be followed by three years of supervised release.
At the time of plea, Carrillo admitted he caused others to bill Medicare for patients who were actually deceased. Carrillo submitted fraudulent documentation to a billing company, and the company would file claims with Medicare for reimbursement of physician services. Records law enforcement obtained proved the patients were deceased at the time he alleged to have provided services to the patients.
Carrillo also admitted to engaging in a scheme with his co-conspirator and assistant, Martha Uribe Medrano, 52, of Edinburg, to solicit and obtain illegal kickbacks in exchange for patient referrals. Carrillo and Medrano solicited and obtained cash in exchange for referrals of Medicare beneficiaries. He admitted he used the Medicare number and personal information of a patient in the exchange. Medrano pleaded guilty to illegal remunerations and was previously sentenced for her role in the scheme.
Carrillo was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The U.S. Department of Health and Human Services‐Office of Inspector General and the FBI conducted the investigation. Assistant U.S. Attorneys Michael Day and Andrew Swartz are prosecuting the case.
McAlester Man Sentenced to 235 Months for Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Duane Allyn Bundy, age 40, of McAlester, Oklahoma, was sentenced to 235 months’ imprisonment and 5 years of supervised release for Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A). The charges arose from an investigation by the McAlester Police Department, the Oklahoma Bureau of Narcotics and Dangerous Drugs, the Oklahoma District 18 Drug & Violent Crime Task Force, and the Drug Enforcement Administration.
The Superseding Indictment alleged that on or about January 30, 2019, in the Eastern District of Oklahoma, the defendant knowingly and intentionally possessed with intent to distribute 50 grams or more of methamphetamine (actual), a Schedule II controlled substance.
This investigation began on January 30, 2019 when a McAlester police officer attempted to initiate a traffic stop. The defendant refused to stop, fleeing in his car and then running on foot, discarding his jacket as he ran. He was apprehended a short time later and his jacket was found to have methamphetamine in its pockets. He was arrested and indicted in federal court on February 13, 2019.
United States Attorney Brian J. Kuester said, “Methamphetamine has caused the death of countless lives in Oklahoma and across the country. People who choose to play a role in the trafficking of this deadly drug are profiting from addiction, destruction, and death. This investigation and prosecution gave us the opportunity to work with several agencies from different jurisdictions. Together we are able to maximize our efforts to combat drug trafficking and the violent crime that accompanies it.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Special Assistant United States Attorney Courtney Jordan represented the United States.
Maryland Man Pleads Guilty to Murder, Drug Trafficking and Obstruction of JusticeRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Christopher Johnson, age 31, previously residing in Baltimore, Maryland, pleaded guilty before Chief United States District Court Judge Christopher C. Conner to one count of conspiracy to commit Hobbs Act robbery; three counts of use of a firearm during a crime of violence resulting in death; one count of interstate travel to commit a murder for hire; one count of conspiracy to kill a witness to a federal offense to prevent communication to a federal law enforcement officer; three counts of killing a witness to a federal offense to prevent communication to a federal law enforcement officer; and one count of felon in possession of a firearm.
According to United States Attorney David J. Freed, the charges were the result of a two and a half year investigation into three murders that occurred in a barn on June 25, 2016, on a property along Welsh Run Road in Mercersburg, Franklin County. The murders were drug related and one of the victims was providing information regarding several of the defendants and others to federal/state law enforcement drug task forces in Maryland. The individuals involved in the murders also joined with others to obstruct the grand jury’s investigation and to locate and kill an individual believed to be assisting federal investigators with the murder investigation.
Johnson, along with ten coconspirators, were charged in a superseding indictment on December 20, 2018, with murder, drug trafficking, and obstruction of justice.
Charged in the superseding indictment were:
- Kevin Coles, age 34, Hagerstown, Maryland;
- Devin Dickerson, age 31, Hagerstown;
- Torey White, age 30, Waynesboro, Pennsylvania;
- Jerell Adgebesan, age 32, Baltimore, Maryland;
- Kenyatta Corbett, age 38, Hagerstown;
- Michael Buck, age 30, Hagerstown;
- Nicholas Preddy, age 29, Baltimore;
- Johnnie Jenkins-Armstrong, age 22, Baltimore;
- Terrance Lawson, age 31, Baltimore; and
- Tyrone Armstrong, age 30, Baltimore.
Joshua Davis, age 30, previously pled guilty to participating in the conspiracy to locate and kill an individual believed to be cooperating with federal authorities in the investigation of the triple murders. Davis was recently sentenced by United States District Court Judge John E. Jones, III to 100 months’ imprisonment. Several other individuals who were separately indicted on charges of obstructing the federal investigation into the triple murders have also pled guilty and are awaiting sentencing.
The following federal, state and local law enforcement agencies participated in the investigation: Drug Enforcement Administration Harrisburg Resident Office, Pennsylvania State Police, Chambersburg, Pennsylvania State Police, Troop H, Franklin County Drug Task Force, Franklin County Adult Probation, Pennsylvania State Probation and Parole, Hagerstown Police Department Criminal Investigation Division, Drug Enforcement Administration Hagerstown Resident Office, Washington County Narcotics Task Force, Drug Enforcement Administration Baltimore District Office, Strike Force Group 1, Maryland State Police Homicide Unit, Baltimore Police Department Narcotics, Fugitive And Homicide Units, Baltimore County Police Department Narcotics and Gang Unit, Federal Bureau of Investigation Evidence Management Unit, Quantico, VA, US Marshal’s Service Harrisburg, PA and Phoenix, AZ, Franklin County District Attorney’s Office, United States Attorney’s Office, District Of Maryland, and The Washington County State’s Attorney’s Office.
Assistant United States Attorney William A. Behe, Organized Crime Drug Enforcement Task Force, and Senior Litigation Counsel Michael Consiglio are prosecuting the case.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This prosecution is also part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF) identified as “Retribution foe Welsh Run”. OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for several of these offenses is life imprisonment or the possibility of the death penalty, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Maryland Man Found Guilty of Burglarizing Schools throughout the DistrictRead the Press Release
WASHINGTON – Nakym Sheffield, 41, of Germantown, MD was found guilty of burglarizing four separate elementary schools in the District of Columbia between March and May 2018, U.S. Attorney Jessie K. Liu announced.
On November 20, 2019, Sheffield was found guilty of four counts of second-degree burglary, six counts of second-degree theft, and three counts of credit card fraud, following a trial in the Superior Court of the District of Columbia. The Honorable Michael O’Keefe scheduled sentencing for January 28, 2020.
According to the government’s evidence at trial, on March 20, 2018, Sheffield entered Bridges Elementary School located at 100 Gallatin St. NE at dismissal and wandered the halls of the school until finding an empty classroom stealing a teacher’s wallet from inside. The teacher was unaware of the theft until she received an alert from her bank notifying her that her card was being used at a local Safeway store.
On April 11, 2018, Sheffield entered two more elementary schools in the Anacostia area of D.C., Ketcham Elementary School at 1919 15th St SE and D.C. Prep Public Charter School at 1409 V St SE during dismissal. Sheffield wandered the halls of the school until finding empty classrooms and stole credit cards and money from teachers who were assisting students during parent pick up. Sheffield again charged the teachers credit cards for over $500.00 in VISA gift cards and other purchases at local Safeway stores.
On May 3, 2018, Sheffield entered Stanton Elementary School at 2701 Naylor Road SE, at morning drop-off and stole credit cards and cash from a school administrator and a teacher. He then went to a Target Store in District Heights, MD where he attempted to purchase $400.00 in VISA gift cards.
After an extensive investigation by the Metropolitan Police Department, obtaining surveillance video and financial records evidencing the very distinct Modus Operandi, law enforcement identified Nakym Sheffield as the perpetrator of the burglary spree. Sheffield was arrested on a D.C. Superior Court arrest warrant on May 17, 2018, and subsequently charged. After a six-day trial, the jury convicted Sheffield on each count of the indictment.
In announcing the verdict, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department. She also acknowledged the work of those who handled the case at the U.S. Attorney’s Office, including paralegal specialists Crystal Waddy and Allison Daniels, Leif Hickling and Taylor Davis from the Litigation Technology Unit, Assistant U.S. Attorney Chrisellen Kolb from the Appellate Division, Assistant U.S. Attorney’s Emile Thompson and Janani Iyengar who investigated and indicted the case, and Assistant U.S. Attorney’s Nicole McClain and Andrea Coronado who presented the case at trial. Finally, she expressed appreciation to the District of Columbia Public Schools for their cooperation with the case.
Market Logistics, Inc. Executives and Employees Sentenced for Their Roles in a Scheme to Defraud BB&T BankRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that yesterday in federal court, MICHAEL G. CALE, 60, of Simpsonville, South Carolina, MICHAEL J. LANDRY, 56, of Simpsonville, South Carolina, MICHAEL R. BRIGEVICH, 60, of Traveler’s Rest, South Carolina, and EDWIN PENA, 61, of Fort Pierce, Florida, were sentenced for their involvement in a scheme to defraud Branch Bank and Trust Company out of more than $5,000,000.00. United States District Judge Timothy M. Cain sentenced CALE to 42 months imprisonment. LANDRY was sentenced to 30 months imprisonment. BRIGEVICH and PENA each received a time-served sentence followed by 5 years of supervised release.
The defendants were executives and employees of Market Logistics, Inc. (MLI), a Greenville, South Carolina-based corporation involved in the arbitrage business. MLI was owned by CALE, who served as the Chief Executive Officer. LANDRY served as the Vice President of Sales, BRIGEVICH served as the Chief Financial Officer, and PENA served as the Accounts Payable Manager.
The evidence at sentencing established that MLI entered into a lending relationship with BB&T. The loan was structured as an asset-backed revolving line of credit, with MLI’s accounts receivable serving as collateral for the loan. Pursuant to the loan agreement, BB&T would loan MLI a maximum amount equal to 85% of MLI’s eligible accounts receivable. MLI was required to prepare and submit reports to BB&T reflecting the accounts receivable balance that qualified as collateral under the loan agreement.
The Defendants concocted and participated in a scheme and artifice to defraud whereby they falsified their accounts receivable balances to increase the amount of funds available through the line of credit. They employed several nefarious accounting methods, including a “lapping scheme,” whereby invoices for sales transactions were listed as accounts receivable and not paid, when in fact they had already been paid. The defendants then misapplied the payments to older invoices. The defendants also created fraudulent sales invoices for sales that never occurred, and listed those false sales as accounts receivable. When the fraud was discovered in August of 2015, MLI’s reported accounts receivable balance was $7.8 million, when in fact only ten invoices totaling approximately $436,324.69 were actually outstanding.
BB&T’s loss exceeded $5 million dollars. Prior to sentencing, the defendants made payments to BB&T totaling $1,412,000. They were ordered to pay restitution for the remaining loss amount of $3,610,260.57.
The Federal Bureau of Investigation conducted the investigation of this case. Assistant United States Attorney Toby W. Lathan represented the United States.
Man Pleads Guilty to Federal Gun OffenseRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced today that OLIN D. GRANT, JR., a resident of Jefferson Parish, pled guilty on November 20, 2019 to Counts 2 and 3 of a four-count indictment, pursuant to a plea agreement with the Government. GRANT was indicted by a Federal Grand Jury on June 20, 2019 for Count 1, Possession with the Intent to Distribute Marijuana; Count 2, Possession of a Firearm in Furtherance of a Drug Trafficking Crime; Count 3, Possession of a Machine gun; and Count 4, Possession of a Non-Registered Firearm.
Today, OLIN D. GRANT, JR. pled guilty as charged to Count 2, Possession of a Firearm in Furtherance of a Drug Trafficking Crime, in violation of 18 U.S.C. § 924(c)(1)(A). At sentencing for this count, OLIN D. GRANT, JR. faces a mandatory minimum sentence of 5 years up to life imprisonment, along with a $250,000 fine and up to 5 years supervised release following any term of imprisonment. This sentence must run consecutively to all other sentences imposed upon the defendant. GRANT also pled guilty as charged to Count 3, Possession of a Machine gun, in violation of 18 U.S.C. § 922(o). At sentencing for this count, OLIN D. GRANT, JR. faces a maximum term of imprisonment of 10 years, along with a $250,000 fine and up to 3 years supervised release.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safe for everyone. Former Attorney General Jeff Sessions made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, then Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN was launched in 2001.
The case was investigated by the Jefferson Parish Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorneys
Melissa Bücher and Brittany Reed of the Violent Crime/Strike Force Unit of the U.S. Attorney’s Office.
Man Charged with Defrauding Retiree Out of Her Retirement SavingsRead the Press Release
U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office announced that Michael Jerome Atkins, 60, was arraigned today by U.S. Magistrate Judge Patrick M. Hunt, in Fort Lauderdale, on mail fraud and aggravated identity theft charges.
According to allegations in the indictment, between July 2015 and October 2015, Atkins devised a scheme to defraud the victim of her entire retirement savings, totaling over $400,000. Atkins promised the victim that if she loaned him her retirement savings he would use it for his business, All Points Aviation and Associates, LLC and would repay her the money within two months. The disbursement checks were made jointly payable to Atkins’ business All Points Aviation and Associates LLC and the victim, who was to cosign the checks. The funds were disbursed in three installments. With respect to the third installment check, which was the largest, and was drawn in the amount of $317,916.02, the indictment alleges that Atkins forged the victim’s signature and deposited the funds into his business account - which he controlled. The indictment further alleges that Atkins used the funds for his personal benefit and did not repay the funds to the victim.
An indictment is a charging instrument containing accusations. A defendant is presumed innocent unless proven guilty, beyond a reasonable double, in a court of law.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI in this matter. The case is being prosecuted by Assistant U.S. Attorney Lois Foster-Steers.
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.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, this past March the Department announced the largest elder fraud enforcement action in American history, charging more than 260 defendants in a nationwide elder fraud sweep. The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
Madera County Residents Indicted for Dealing Heroin that Caused Overdose DeathRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Georgia Nicole Dean, 36, and Ashley Michelle Hill, 32, both of Coarsegold, charging them with selling heroin that resulted in the overdose death of another Coarsegold resident, U.S. Attorney McGregor W. Scott announced. Dean and Hill are also charged with conspiring to distribute the heroin that resulted in the victim’s death.
According to court documents, on Aug. 22, Dean and Hill drove to the victim’s residence and sold heroin to him. It is alleged that the victim’s death resulted from the use of the mixture or substance containing heroin.
This case is the product of an investigation by the Madera County Sheriff’s Office, the Fresno Police Department, and the Drug Enforcement Administration. Assistant U.S. Attorneys Kathleen A. Servatius and Justin J. Gilio are prosecuting the case.
If convicted, the drug distribution resulting in death charge and the conspiracy to distribute drugs resulting in death charge both carry a mandatory minimum statutory penalty of 20 years in prison up to life in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Local rapper heads to prison for meth traffickingRead the Press Release
HOUSTON – A 43-year-old Houston man has been ordered to federal prison following his conviction of possession with intent to distribute meth, announced U.S. Attorney Ryan K. Patrick. Mack Biggers pleaded guilty Sept. 6.
Today, U.S. District Judge Alfred Bennett handed Biggers a 180-month sentence to be immediately followed by five years of supervised release. The sentence includes an upward variance due to Biggers extensive criminal history. At the hearing, the court heard additional information, including a presentation detailing how Biggers committed his narcotics offenses.
For several months in 2017 and 2018, Biggers acquired and sold various narcotics including meth and illegally possessed firearms. Biggers also produced and starred in rap videos that glamorized his illegal activities.
On Feb. 21, 2018, authorities conducted surveillance and subsequent arrest of Biggers as he attempted to flee from police at an apartment complex located on the 14700 block of West Oaks Plaza Drive in Houston. He had thrown bags down as he fled. Law enforcement recovered them, which were found to contain hundreds of pills made from various substances including meth and heroin.
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.
The Houston Police Department and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney John Michael Lewis is prosecuting the case.
Lincoln Man Sentenced for Possession of MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that on November 20, 2019, Senior United States District Court Judge Richard G. Kopf sentenced Jeremy Deen, 34, of Lincoln, Nebraska, to 120 months’ imprisonment for possession of methamphetamine with intent to distribute. Following the prison term, Deen will serve five years on supervised release.
Investigators were conducting surveillance at an apartment complex in Lincoln, Nebraska. During their surveillance on August 31, 2018, investigators observed Deen walking near a detached garage. Deen had active warrants for his arrest, so investigators contacted him. Investigators located more than 55 grams of methamphetamine inside the backpack Deen was wearing, in addition to other drug paraphernalia. A search warrant was later served of the detached garage. Investigators found a stolen motorcycle, ammunition, and another 1.6 grams of methamphetamine.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Lexington Man Sentenced to 60 Months for Trafficking AcetylfentanylRead the Press Release
LEXINGTON, Ky.— Aaron Antonio Evans, 29, of Lexington, was sentenced to 60 months in federal prison on Thursday, by United States District Judge Karen K. Caldwell, after pleading guilty to trafficking more than 10 grams of acetylfentanyl.
According to Evans’ plea agreement, he admitted to trafficking more than 10 grams of acetylfentanyl on February 6, 2019. Acetylfentanyl is an extremely powerful analogue of the opioid fentanyl.
Evans pleaded guilty in June 2019.
Under federal law, Evans must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for four years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Tommy Estevan, Special Agent in Charge for ATF; and Lawrence Weathers, Chief of the Lexington Police Department, jointly announced the sentence.
The investigation was conducted by the ATF and Lexington Police Department. The United States was represented by Assistant U.S. Attorney David C. Kiebler.
This case was prosecuted as part of the Organized Crime and Drug Enforcement Task Force’s (OCDETF) Operation Synthetic Opioid Surge (SOS), a Department of Justice initiative designed to target trafficking of dangerous synthetic opioids.
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Lexington Man Pleads Guilty to Firearm and Drug ChargesRead the Press Release
LEXINGTON, Ky. - Tevye T. Jones, 21, of Lexington, pleaded guilty Thursday to illegal possession of a firearm and cocaine, before U.S. District Judge Karen K. Caldwell.
Jones admitted to possessing a Glock .357 caliber pistol, during a traffic stop. According to his plea agreement, Jones also admitted that during the stop officers found a small bag of cocaine.
Jones was indicted on the charges in May 2019. In 2017, Jones was previously convicted of the felony Robbery Second Degree, in the Fayette Circuit Court.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Tommy Estevan, Acting Special Agent in Charge for ATF; and Lawrence Weathers, Chief of the Lexington Police Department, jointly announced the guilty plea.
The investigation was conducted by the ATF and Lexington Police Department. The United States was represented by Cynthia T. Rieker.
Jones is scheduled to be sentenced on Feb. 18, 2020. He faces up to 10 years in prison and a maximum fine of $250,000. However, any sentence will be imposed by the Court after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
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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Lewiston Man Pleads Guilty to Conspiracy to Cultivate and Distribute MarijuanaRead the Press Release
Portland, Maine: A Lewiston man pleaded guilty today in federal court in Portland to conspiring to manufacture 100 or more marijuana plants and to distribute 100 or more kilograms of marijuana, U.S. Attorney Halsey B. Frank announced.
According to court records, Richard Daniels, 54, actively participated in a drug trafficking organization that operated in Androscoggin County and elsewhere between 2015 and February 2018. Members of the conspiracy cultivated and distributed large quantities of marijuana in violation of federal law, and under the cover of—but in violation of—Maine’s Medical Use of Marijuana program. The organization cultivated marijuana at numerous locations in Androscoggin County and distributed marijuana to people who were not participants in the medical marijuana program, including out-of-state customers. Daniels was involved with the distribution of bulk quantities of marijuana to the conspiracy’s customers, including those from outside of Maine.
On February 27, 2018, law enforcement officers searched Daniels’ residence and an adjacent garage. During the search, agents seized distributable quantities of marijuana, hash oil, approximately 41 sheets of butane hash oil, a money counter and other indicia of drug trafficking.
Daniels faces at least 5 years and up to 40 years in prison and a fine of up to $5,000,000. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The U.S. Drug Enforcement Administration and the IRS Criminal Investigation Division investigated the case.
The prosecution is a result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) Program, a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate and prosecute high-level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
Leader of Violent Drug Trafficking Gang from North Philadelphia Sentenced to 30 Years in PrisonRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that Juan Jarmon, 32, of Philadelphia, Pennsylvania, was sentenced to thirty years’ imprisonment and six years’ supervised release by United States District Judge Paul S. Diamond for crimes committed while he was the leader of a violent drug trafficking group operating out of the Norman Blumberg Apartments public housing facility in North Philadelphia.
Following a jury trial in March 2019, the defendant was convicted on 23 counts, including conspiracy to distribute 280 grams or more of crack cocaine and distribution of crack cocaine within 1,000 feet of public housing (a drug-free zone). Jarmon controlled drug sales in various areas of the Blumberg Apartments in 2013 and 2014. Throughout the period that the drug trafficking conspiracy operated, Jarmon and other members of his gang were responsible for distributing thousands of grams of crack cocaine throughout this community.
Jarmon’s group obtained bulk crack and cocaine; cooked and packaged crack cocaine into bundles; hired, fired, and supervised shift sellers and lookouts; levied taxes on members and customers; and provided protection from other drug trafficking groups. The shift sellers were the daily workers employed by the leaders to sell crack cocaine in the locations controlled by the group, while the lookouts assisted other members of the group by alerting them to the presence of law enforcement and directing customers to the shift sellers. In order to ensure around-the-clock sales of crack cocaine, Jarmon threatened rivals who disrupted his drug trafficking business, and physically assaulted shift sellers. In one instance, the defendant violently attacked a female drug dealer in order to obtain drug proceeds, cracking her head against a table, requiring hospitalization.
“To anyone engaged in drug trafficking and violence, I say this: find another line of work. Because if you don’t, you will face federal prosecution and considerable jail time for your efforts,” said U.S. Attorney McSwain. “Here, Jarmon and his co-defendants used firearms, robbed rival drug dealers, and used intimidation, threats, and violence to further their ‘business’ of moving poison on our streets. Philadelphia residents can rest easier knowing that Jarmon is behind bars and his drug gang has been destroyed.”
“We are privileged to have collaborated with our law enforcement partners in the investigation, arrest, and successful prosecution of Juan Jarmon,” said Acting Philadelphia Police Commissioner Christine Coulter. “With his conviction and attendant sentencing, this violent recidivist offender will be unable to continue inflicting harm upon the residents of the Blumberg Apartments and the surrounding community.”
“Jarmon coordinated a vast network of drug dealers selling crack cocaine 24 hours a day in the former Norman Blumberg Apartment Complex. Jarmon was responsible for the distribution of thousands of grams of crack cocaine throughout his community, and used violence and intimidation to further his drug trafficking activities,” said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “For the drug-traffickers like Jarmon that prey on the most vulnerable members of our society, the federal criminal penalties are severe.”
“For years, Juan Jarmon and his drug crew used intimidation and violence to maintain control of the Blumberg Apartments complex and surrounding area,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “The FBI and our law enforcement partners are determined to help free our communities from the stranglehold of narcotics traffickers. The city of Philadelphia is safer with Jarmon behind bars.”
This case was investigated by the United States Attorney’s Office, Federal Bureau of Investigation, and Drug Enforcement Administration in collaboration with the Philadelphia Police Department and Philadelphia District Attorney’s Office. It is being prosecuted by Assistant United States Attorneys Jerome Maiatico and Yvonne Osirim.
Las Vegas Woman Indicted for Sending Threatening Letters to Her Mother's Former Supervisor and LawyersRead the Press Release
LAS VEGAS, Nev. – A federal grand jury returned an indictment charging Latonia Smith, 25, of Las Vegas, with five counts of sending threatening communications through the U.S. Mail, U.S. Attorney Nicholas A. Trutanich for the District of Nevada announced.
According to court filings, Smith is alleged to have sent anonymous threatening letters between September 30, 2018, and October 1, 2019 to her mother’s former supervisor and to attorneys and staff defending a lawsuit filed against her mother’s former employer. As an example, one of the letters threatened: “your throat will be slit you will be recorded as the blood spills from your neck and just as you gasp to take your final undeserving breath three bullets will be placed right through your skull.”
Smith was arrested on November 1, 2019, in connection with the charges and is presently detained awaiting arraignment.
This case was the product of an investigation by the U.S. Postal Inspection Service with assistance from the Las Vegas Metropolitan Police Department and the Reno Police Department. The case is being prosecuted by Assistant United States Attorney Steven Myhre.
Smith faces a maximum sentence of 25 years, if convicted on all counts. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
An indictment is an accusation by a federal grand jury and is not evidence of guilt. The defendant should be presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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