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20 November 2019
Man Illegally Residing in the United States Convicted of Attempting to Entice a Minor on Social MediaRead the Press Release
A man illegally residing in the United States was found guilty Wednesday in federal court of attempting to persuade an 11-year-old online to engage in sexual activity. Two years earlier, the defendant had also molested the child while she stayed at a friend’s house.
A jury convicted Agustin Nieto Regalado, 47, of Tulsa, for attempted coercion and enticement of a minor and for possession of a false lawful permanent resident card.
In April 2019, the victim’s mother grew suspicious of a Facebook message her daughter received from a man she knew as “Marcos Diaz.” The mother conversed with Diaz, pretending to be her daughter. Diaz acknowledged the child’s age and described sexual acts he wanted to engage in with the victim. He further offered to pay for the sex acts, asked for explicit pictures and described how he had previously molested the child. Marcos Diaz, who was really Agustin Nieto Regalado, also took sexually explicit photos of himself and sent them to “the girl.” The mother reported the encounter to authorities.
“The defendant, an illegal alien in our country, chose to proceed to jury trial, a right afforded him in the United States Constitution. Today, a jury delivered justice in the form of guilty verdicts,” said U.S. Attorney Trent Shores of the Northern District of Oklahoma. “Mr. Regalado came into our country illegally and then enticed, coerced and sexually molested children. Despicable.”
“Homeland Security Investigations special agents don’t initiate criminal investigations based on someone’s citizenship, we do so because of the alleged criminal activity and we will never relent in our efforts to protect children from anyone that attempts to exploit them,” said Ryan L. Spradlin, special agent in charge of HSI Dallas. “HSI’s Operation Predator program is designed to target anyone who sexually exploits children.”
“Our ERO officers are specifically trained and dedicated to locating and removing criminal aliens in the United States,” said Marc J. Moore, ERO Dallas field office director. “Once this convicted criminal completes whatever prison sentence is imposed, we will ensure he’s removed to his country of origin.”
During the trial, Lieutenant Jeremy Noland of the Tulsa Police Department’s Cyber Crimes Unit explained that detectives took over the girl’s Facebook account once the mother reported Regalado. He described how Regalado continued to message the girl, not knowing that he was actually messaging detectives. A meeting location was set by the parties. When Regalado arrived at the location, he was taken into custody by detectives. The defendant was found in possession of a forged permanent resident card with the alias of Marcos Diaz and immigration documents with the name Agustin Nieto Regalado.
During the trial, testimony was heard that Regalado was also caught several times engaging in suspicious activity with other children.
In closing, Assistant U.S. Attorney Christopher Nassar shared with the jury how the victim and her family, who are immigrants, came to the United States in search of opportunities and a better life. He described a country that promises justice for all who come. He asked the jury to deliver justice for the victim and find Regalado guilty of all charges.
U.S. District Judge Claire V. Eagan presided over the trial and set sentencing for Feb. 24. Regalado faces 10 years to life in federal prison and a $250,000 fine for the enticement charge.
The Tulsa Police Department’s Cyber Crimes and Child Crisis Units and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) and Enforcement and Removal Operations (ICE-ERO) are the investigative agencies. Assistant U.S. Attorneys Christopher Nassar and Edward Snow prosecuted the case.
This case was prosecuted 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, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
MEDIA ADVISORY - U.S. Attorney and FBI Leadership Brief Family of Olivia Lone Bear on Death InvestigationRead the Press Release
BISMARCK – United States Attorney Drew H. Wrigley and FBI Assistant Special Agent in Charge Robert Perry traveled to New Town, ND, today and met with family members of Ms. Olivia Lone Bear for the purpose of briefing them on the status of the death investigation. The federal law enforcement delegation then provided a similar briefing to Mr. Roger White Owl, Chief Executive Officer for Chairman Mark Fox of the Mandan Hidatsa and Arikara Nation, and Three Affiliated Tribes Police Chief, Nelson Heart and senior leadership.
On October 27, 2017, Ms. Olivia Lone Bear, age 32, was reported missing to the Three Affiliated Tribes Police Department, two days since the last time she had been seen by her father, Harley “Tex” Lone Bear, who made the missing person report. Over the ensuing days, the Three Affiliated Tribes Police Department, the Bureau of Indian Affairs, and other state and local law enforcement agencies investigated Ms. Lone Bear’s disappearance. In early November 2017, the Federal Bureau of Investigation (FBI) was invited into a supporting role for the existing investigation.
During the week of July 23 through July 27, 2018, a civilian searcher using a small boat equipped with sonar located what the searcher suspected was a truck submerged in Lake Sakakawea near Sanish Bay, in New Town, ND, on the Fort Berthold Indian Reservation. The searcher took photographs of the sonar produced images and provided the images to the Three Affiliated Tribes law enforcement. On July 31, 2018, a law enforcement diver investigated the site and discovered a truck submerged in approximately 21 feet of water, 400 feet from the shore, and located approximately 1-1/2 miles from Ms. Lone Bear’s residence.
The truck was towed out of the lake, and law enforcement discovered the presence of a human body in the passenger seat, with the seat belt still securing the body in place. Forensic examination of the body later confirmed it to be that of Ms. Olivia Lone Bear. Medical personnel conducted an autopsy of Ms. Lone Bear and the cause of death was ruled undetermined. Additionally, medical personnel noted that they did not find definitive traumatic, natural, or toxicological causes for her death. Once law enforcement located Ms. Lone Bear’s body, the applicable laws and protocols enabled the FBI to take the lead on the investigation into both the cause of Ms. Lone Bear’s disappearance and her death.
The FBI and the United States Attorney’s Office remain fully committed to this investigation. To date, the FBI, in conjunction with the United States Attorney’s Office, has issued multiple investigative subpoenas and search warrants. FBI Special Agents have interviewed dozens of witnesses, conducted multiple forensic examinations, and enlisted the support of several specialized law enforcement teams for their insight and expertise regarding this matter.
“Olivia's family and members of her community want to know what happened to her and so do we," said Minneapolis FBI Special Agent in Charge Jill Sanborn. "We share the desire to bring closure to this case and peace to Olivia's family and fully understand the frustration a lengthy investigation can cause. Our primary goal is to uncover the facts surrounding her death in order to get a clear picture of what actually occurred," added Sanborn.
“We remain resolute in our commitment to work closely with federal, state, tribal, and local law enforcement as we pursue all emerging evidence in this investigation,” said United States Attorney Drew Wrigley, “and we will continue to pursue all leads and pathways on the road to the truth. That’s our pledge to Olivia, and to those who knew and loved her.”
The search warrants for this investigation have been unsealed, Case Numbers: 1:18-mj-00245; 1:18-mj-00292; and 1:19-mj-0040.
Following today’s meeting, it was announced that the FBI is seeking more information in this case and is offering a reward of up to $10,000 for actionable information that leads to the identification of those responsible for Ms. Lone Bear’s disappearance. Anyone with information is urged to call 1-800-CALLFBI (1-800-225-5324) or file tips at https://tips.fbi.gov.
Little Rock Man Sentenced to 33 Months in Prison After Lying on Loan Applications, Costing Lenders $3.3 MillionRead the Press Release
LITTLE ROCK— A Little Rock man was sentenced to prison today after making false statements on loan applications, costing banks and lenders over $3.3 million. Marcus Shane Sweetin, 46, was sentenced to 33 months in prison. Cody Hiland, United States Attorney for the Eastern District of Arkansas, and Diane Upchurch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation, announced today’s sentence.
Sweetin operated Sweetin Farms LLC, which farmed two parcels of land in Arkansas County and Prairie County. In April 2013, Sweetin applied for a loan from AgHeritage Farm Credit Services that sought to recoup money his company allegedly spent acquiring a Case 290 Magnum Tractor. The tractor itself was to serve as collateral, and in support of the loan, Sweetin gave AgHeritage an invoice from an equipment dealer reflecting the tractor had been purchased outright and a copy of the company check that had supposedly been used to pay.
The tractor had not been purchased outright but had actually been financed through another lender. The real tractor bore a different serial number, and the check and invoice Sweetin provided in support of the loan were both fabricated. During his plea hearing, Sweetin acknowledged this was only one of several instances where he lied to lenders in order to secure loans for his farming operation. At various points, he sought purchase money for farming equipment financed elsewhere using fictitious serial numbers and invoices, he overstated farmable acreage and understated debt to secure crop loans, and he double pledged collateral. All told, these false statements secured loans that occasioned over $3.3 million in losses to AgHeritage, BancorpSouth, and Regions Bank.
Sweetin pleaded guilty in May to an Information charging him with one count of making a false statement on a loan application. He was sentenced by United States District Judge James M. Moody. In addition to prison, Sweetin was sentenced to five years of supervised release and ordered to pay over $3.2 million in restitution, the number having been lowered from $3.3 million to account for recent payments to victims since his guilty plea. The case was investigated by the FBI and prosecuted by Assistant United States Attorney Alexander D. Morgan.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Lexington Man Pleads Guilty to CarjackingRead the Press Release
LEXINGTON, Ky. - Jody Shipman, 28, of Lexington, pleaded guilty Wednesday to carjacking, with the intent to inflict serious bodily harm or death, before Chief U.S. District Judge Danny C. Reeves.
Shipman admitted to two, separate carjackings, in Lexington, in January and February 2019. According to his plea agreement, in January 2019, Shipman approached a woman at her apartment, demanded her vehicle, phone, and wallet, and threatened her with force. Shipman also admitted to approaching a second female victim, at St. Joseph Hospital in February, forcing her inside her vehicle and driving her to an ATM machine, to withdraw money from her account.
Shipman was indicted in August 2019.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Tommy Estevan, Acting Special Agent in Charge, ATF Louisville Field Division; and Lawrence Weathers, Chief, Lexington Police Department, jointly announced the guilty plea.
The investigation was conducted by the Lexington Police Department and ATF. The United States was represented by Assistant U.S. Attorney Cynthia T. Rieker.
Shipman is scheduled to be sentenced on Feb. 21, 2020. He faces up to 15 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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Lexington Man Pleads Guilty to Armed Drug TraffickingRead the Press Release
LEXINGTON, Ky. - Rakim Moberly, 29, of Lexington, pleaded guilty Wednesday to possession of a firearm by a convicted felon, trafficking in fentanyl, and possession of a firearm in furtherance of drug trafficking, before Chief U.S. District Judge Danny C. Reeves.
Moberly admitted to illegally possessing a stolen firearm. According to his plea agreement, officers arrested Moberly for possessing the firearm and took him to the Fayette County Detention Center. While at the detention center, Moberly discarded drugs that were on his person. Later, officers the drugs where Moberly had been seated..
Moberly was indicted in August 2019. Moberly was previously convicted of Robbery Second Degree, Wanton Endangerment First Degree, and Criminal Mischief First Degree, by the Fayette Circuit Court, in 2016.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Tommy Estevan, Acting Special Agent in Charge, ATF Louisville Field Division; and Lawrence Weathers, Chief, Lexington Police Department, jointly announced the guilty plea.
The investigation was conducted by the Lexington Police Department and ATF. The United States was represented by Assistant U.S. Attorney Cynthia T. Rieker.
Moberly is scheduled to be sentenced on Feb. 28, 2020. He faces up to 35 years in prison and a maximum fine of $1.5 million. 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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Lawrenceburg Man Convicted of Receipt, Distribution, and Possession of Child PornographyRead the Press Release
FRANKFORT, Ky. - A Lawrenceburg, Kentucky man was convicted Wednesday by a federal jury in Frankfort for receiving, distributing, and possessing child pornography.
After deliberating for an hour, following a two-day trial, the jury convicted 48-year old William Richard Smith of seven counts of receipt, one count of distribution, and one count of possession of visual depictions involving minors engaged in sexually explicit conduct.
According to testimony at trial, Smith distributed 25 child pornographic videos to an investigator with the Kentucky Office of Attorney General (OAG), Cyber Crimes Branch, who was performing an undercover investigation using an online peer-to-peer network. After identifying Smith as the individual who distributed these images, a search warrant was executed on Smith’s residence, during which several electronic devices were seized. Evidence from the forensic examination of those devices revealed that, in addition to distributing child pornography, Smith possessed 1,622 sexually explicit visual depictions of minors as of the date of the search warrant and had been receiving those visual depictions using a peer-to-peer network since May 2016.
Smith was indicted in February 2019.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, John Condon, Special Agent in Charge of Homeland Security Investigations (HSI), and Andy Beshear, Kentucky Attorney General, jointly announced the conviction.
The investigation was conducted by the Kentucky OAG Cyber Crimes Branch and HSI. The U.S. Attorney’s Office was represented in the case by Assistant U.S. Attorneys David Marye and Mary Melton.
Smith will appear for sentencing on April 1, 2020. He faces a maximum of 20 years in prison for each count. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing a sentence.
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Lancaster County Farm Enjoined from Continued Misbranding of Meat/Poultry Products and Evasion of Food Safety LawsRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that the District Court for the Eastern District of Pennsylvania has entered an injunction ordering Miller’s Organic Farm (Miller’s) of Bird-in-Hand, Pennsylvania, and its owner, Amos Miller, to cease violating federal food safety laws. After suing Miller’s in April 2019 for civil injunctive relief, the government moved for summary judgment. In granting that motion, the district court entered judgment against Mr. Miller and the farm and enjoined them from continued selling of non-federally-inspected, misbranded meat and poultry products to nationwide consumers, and from continued obstruction of federal health and safety oversight.
The United States brought the action on behalf of the Food Safety and Inspection Service (FSIS) of the U.S. Department of Agriculture. FSIS is responsible for ensuring that commercially sold meat, poultry and egg products are safe, wholesome, and correctly labeled and packaged. FSIS fulfills its mission by inspecting meat and poultry products before they reach consumers. For years, Miller’s has been illegally slaughtering and processing livestock and poultry, and commercially selling substantial quantities of the resulting products for human consumption, all without a USDA-FSIS Federal Grant of Inspection. Meanwhile, the products’ labeling has misled consumers by failing to disclose that the products have not been federally inspected and may not be sold commercially.
The suit is part of the United States’ continuing efforts to bring Miller’s into compliance with federal food safety laws. In late 2015, for example, the Food and Drug Administration, which regulates milk, isolated and identified Listeria monocytogenes (L. mono) bacteria in Miller’s raw milk samples. Through whole genome sequencing, the FDA found genetic similarity between that bacteria and other L. mono in two individuals who had developed listeriosis after consuming raw milk. The FDA named Miller’s as the “likely source” of infections in those persons, one of whom died.
FSIS sought to assess whether L. mono might be contaminating Miller’s meat and poultry products. But Mr. Miller refused to grant FSIS entry to the farm’s meat and poultry-related facilities, even after the agency served him with a subpoena. The United States then sued Miller’s to enforce the subpoena and USDA’s access rights. See United States v. Miller’s Organic Farm and Amos Miller, EDPA No. 16-cv-2731. Even after the court enforced the subpoena, and even after FSIS cited Miller’s with misbranding and other violations, the violations continued. Further, Miller’s continued to obstruct FSIS’ access to Miller’s facilities, records, and inventory.
Although Miller’s Organic Farm is a sole proprietorship, Mr. Miller organized Miller’s sales operations into a so-called “private membership association” (PMA) food buyer’s club. Mr. Miller based his non-compliance on assertions that PMAs are exempt from regulatory laws. This is false: PMAs are not exempt from federal food safety and other health and safety laws. The United States’ injunction action, United States of America v. Miller’s Organic Farm and Amos Miller, EDPA No. 19-cv-1435, is the first-ever suit of its kind where FSIS obtained an injunction against such a PMA farm business.
The civil injunction requires Miller’s to cease commercial sales of non-federally-inspected, misbranded, non-exempt meat and poultry products. Miller’s also must maintain relevant business transaction records, cooperate with FSIS inspections and oversight, and otherwise comply with federal food safety laws. Miller’s is subject to financial sanctions if it violates the injunction.
“As I stated when my Office filed this suit and as the injunction shows, food establishments in this District must follow federal food safety laws that protect the public,” said U.S. Attorney McSwain. “Congress enacted such generally applicable laws to ensure that the nation’s food supply is safe for consumption. We will continue to take enforcement action whenever commercial sellers ignore the rule of law, make up their own sets of rules, or otherwise attempt to hide behind a business structure to thwart congressionally-mandated federal oversight. Today’s injunction is necessary to effect Miller’s compliance and to ensure that, with FSIS’ oversight and assistance, compliance will continue in coming years.”
“At FSIS, we will continue to use our regulatory authority to ensure that meat, poultry, and processed egg products facilities comply with federal food safety laws,” said FSIS Administrator Carmen Rottenberg. “Inspection is the cornerstone of our food safety regulatory system – enabling consumers to purchase and prepare meat and poultry with confidence in the safety of these products.”
This case is being handled by AUSA Gerald Sullivan for the United States Attorney’s Office, which received assistance from Investigator Paul J. Flanagan of FSIS’ Compliance and Investigations Division, Philadelphia Regional Office; Attorney Advisor Tracey Manoff of USDA’s Office of the General Counsel; and Team Lead Troy Hambright of FSIS’ Enforcement and Litigation Division, Office of Investigation, Enforcement and Audit.
Kentucky Trio Facing Federal Charges for Mail TheftRead the Press Release
NASHVILLE, Tenn. – November 20, 2019 – An 11-count indictment returned last week charged three individuals from Trenton, Kentucky with conspiracy to commit mail fraud and theft of mail, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Adam Perrelli, 41, Kaitlin Patterson, 30, and Natasha Pargellis, 35, were indicted on November 13, 2019, after a lengthy investigation into mail thefts in and around the Clarksville, Tennessee area.
According to the indictment, the defendants obtained a master key that allowed them to open mail receptacles such as street collection boxes and panels of apartment house mailboxes. During the period of March 2018 through September 2018, the trio drove with each other and other individuals to various mail receptacles and took large amounts of mail. They then sorted through the mail looking for documents to use for their personal benefit, including checks, money orders, credit cards and personal identifying information. The documents were then altered and made payable to another participant in the conspiracy and approximately $32,000 in altered checks and money orders were cashed or deposited. The investigation uncovered an additional $540,000 in stolen checks and money orders which they intended to alter.
If convicted, the defendants face up to 20 years in prison.
This case was investigated by the U.S. Postal Inspection Service and the Clarksville Police Department and is being prosecuted by Assistant U.S. Attorney Robert Levine.
An indictment is merely an accusation. The defendants are presumed innocent until proven guilty in a court of law.
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Kentucky Hospital to Pay over $10 Million to Resolve False Claims Act AllegationsRead the Press Release
Jewish Hospital & St. Mary’s Healthcare Inc., doing business as Pharmacy Plus and Pharmacy Plus Specialty (collectively, Jewish Hospital), of Louisville, Kentucky, have agreed to pay $10,101,132 to resolve False Claims Act allegations that they knowingly submitted false claims to the Medicare program, the Department of Justice has announced.
“Healthcare providers will be held accountable when then knowingly submit false claims for prescription drugs that do not meet requirements to establish medical necessity,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “We take appropriate steps to protect Medicare funds and the integrity of our federal healthcare programs.”
The settlement announced today resolves allegations that Jewish Hospital knowingly submitted claims to Medicare for prescription drugs that did not meet Medicare coverage requirements, including the need to obtain the treating physician’s signature on the order establishing medical necessity, to confirm that refills were reasonable and necessary, and to document that the medications were in fact delivered. The settlement also resolves allegations that Jewish Hospital submitted claims to Medicare that resulted from improper remuneration provided to Medicare beneficiaries in the form of free blood glucose testing supplies and waiver of co-payments and deductibles for insulin, in violation of the Anti-Kickback Statute, 42 U.S.C. § 1320a-7b(b), which prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally-funded programs.
“Paying for medically unnecessary drugs robs vital government health programs of precious resources and can violate the law,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We will continue working with our law enforcement partners to protect beneficiaries and taxpayers.”
The settlement resolves allegations originally brought in a lawsuit filed by Robert Stone, a pharmacist, under the whistleblower or qui tam provision of the False Claims Act, which allows private parties to bring suit on behalf of the government and to share in any recovery. Mr. Stone will receive $1.85 million.
The settlement was the result of an investigation by the Department of Justice’s Civil Division, Commercial Litigation Branch, the U.S. Attorney’s Office for the Western District of Kentucky, and the Office of Inspector General at the U.S. Department of Health and Human Services.
The lawsuit is captioned United States ex rel. Stone v. Jewish Hosp. & St. Mary’s Healthcare, Inc., et al., Civil Action No. 3:17-294 (W.D. Ky.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Jackson Man Sentenced to 2 Years in Federal Prison under Project EJECT for Illegally Possessing a FirearmRead the Press Release
Jackson, Miss. – Andrew Rollins, 28, of Jackson, was sentenced today by U.S. District Judge Carlton W. Reeves to 24 months in federal prison, followed by 3 years of supervised release, for being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Michelle A. Sutphin with the Federal Bureau of Investigation in Mississippi.
Rollins had previously been convicted of felonious house burglary in Hinds County in 2013. On August 22, 2018, in Hinds County, Rollins discharged a firearm multiple times at another person. The shooting occurred within 1,000 feet of an elementary school. At the time of this offense, Rollins was still on Hinds County probation and his state probation has since been revoked.
Rollins was originally indicted for this offense on January 25, 2019. He pled guilty before Judge Reeves on March 26, 2019 to being a felon in possession.
The Federal Bureau of Investigation and Jackson Police Department investigated the case. The case was prosecuted by Assistant United States Attorney Andrew W. Eichner.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Indianapolis Woman Indicted for Illegal Purchase of 36 Firearms on Eight Separate Occasions from Indianapolis Area Gun StoresRead the Press Release
INDIANAPOLIS – United States Attorney Josh J. Minkler announced today that Iva Patrick, 30, of Indianapolis, was indicted by a grand jury for charges of unlawfully providing false information in connection with a purchase of a firearm.
"If you choose to lie on the federal forms when purchasing a firearm, you must face the consequences," said Minkler. "Firearms purchased illegally, or for other people, are often purchased for no other reason, but to commit crimes. The Department of Justice and the U.S. Attorney’s Office is committed to reducing gun violence and enforcing federal firearm laws through Project Guardian."
In July of 2019, investigators from the Indianapolis Crime Gun Intelligence Center (CGIC) initiated an investigation into the suspected firearms trafficking activities of Iva Patrick. Investigators were able to confirm that Patrick purchased at least 36 firearms from federal firearms licensees (FFLs) in the Indianapolis area on at least eight separate occasions between June 15, 2019 and August 9, 2019.
Patrick’s then boyfriend, Jeremy Evans, who is a convicted felon and the father of her three children, instructed Patrick to purchase all of the firearms. Evans was unable to purchase the firearms himself, due to numerous previous felony convictions, and he directed Patrick to purchase the guns for him. Patrick completed the required paperwork for each gun purchase, indicating that the guns were for her, when in fact the guns were being purchased for Evans.
Evans was present in the parking lot of the FFLs during several of the firearms purchases and he specifically told Patrick which firearms to purchase. Once Patrick secured the firearms purchases from the FFLs, the firearms were initially stored at an Indianapolis residence. On August 21, 2019, CGIC investigators executed a search warrant at the Indianapolis residence, where receipts for numerous firearms purchased by Patrick were located and numerous empty firearms boxes, including one firearms box belonging to one of the firearms purchased by Patrick were found. However, no actual firearms purchased by Patrick were recovered during the search at the Indianapolis residence.
Following the search warrant, nine firearms purchased by Patrick were recovered in Chicago, Illinois. Of those nine recovered firearms, it was determined by the National Integrated Ballistic Information Network (NIBIN) that one of the guns purchased by Patrick was used in an unrelated homicide in Chicago where at least four persons were shot and one person died from a gunshot wound. Several firearms purchased by Patrick were recovered in connection with a carjacking, narcotics dealings, other shootings, and in the hands of convicted felons. Investigators are actively working to recover all firearms purchased by Patrick.
Evans was charged by criminal complaint on October 21, 2019, for his participation in a home invasion robbery, which occurred on August 19, 2019. Firearms were stolen from the robbery victim’s residence. Evans was also charged with brandishing a firearm during a crime of violence.
Last week, Attorney General Barr announced Project Guardian, an initiative that focuses on reducing gun violence and enforcing federal firearm laws. This case is a prime example of the Project Guardian initiative at work in the Southern District of Indiana. Law enforcement utilized crime gun intelligence to investigate this case and utilized various investigative resources including the ATF National Tracing Center to run a trace on all recovered guns.
For more information on Project Guardian, see the Attorney General’s memorandum at: https://www.justice.gov/ag/project-guardian-memo-2019/download.
This case was investigated by CGIC which is comprised of investigators from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Indianapolis Metropolitan Police Department (IMPD).
"This indictment should make clear that those who knowingly put firearms in the hands of prohibited persons are also responsible for how those firearms are used," stated Jonathan McPherson, Special Agent in Charge of ATF’s Columbus Field Division. "ATF will continue to work with our law enforcement partners to stop the flow of guns from legal possession into illegal commerce."
According to Assistant U.S. Attorney Jeremy A. Morris, who is prosecuting the case for the government, Patrick faces up to 10 years in prison, if convicted.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the office’s firm commitment to partner with federal and local law enforcement agencies to prosecute individuals committing violent crimes involving firearms. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 2.3.
Honduran National Sentenced to Fifteen Months for Illegal ReentryRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza today sentenced Ever Jose Diaz-Lara (30, Honduras) to 15 months in federal prison for illegal reentry after deportation. Diaz-Lara had pleaded guilty on September 6, 2019.
According to testimony and court documents, since 2009, Diaz-Lara has been arrested at least five times for violent domestic assaults. The Department of Homeland Security removed Diaz-Lara to Honduras in 2010, 2014, and 2015. Immigration and Customs Enforcement (ICE) most recently encountered Diaz-Lara following his July 17, 2019, domestic battery arrest in Orlando.
“Thanks to the hard work of our Enforcement and Removal Operations (ERO) team, this violent criminal illegal alien is out of our communities,” said Miami ERO Field Office Director Michael W. Meade.
This case was investigated by U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE-ERO). It was prosecuted by Special Assistant United States Attorney Brandon Bayliss, on assignment from the Office of Principal Legal Advisor, ICE, in the Middle District of Florida.
Homeworth man indicted for illegally buying and selling firearms without a licenseRead the Press Release
William Draher, 71, was indicted on one count of engaging in the business of selling firearms without a license between January 2013 and July 2018.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
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Hardy County man admits to heroin and firearms chargesRead the Press Release
ELKINS, WEST VIRGINIA – Timothy Juston Wimer, of Old Fields, West Virginia, has admitted to drug distribution and firearms charges, U.S. Attorney Bill Powell announced.
Wimer, age 35, pled guilty to one count of “Possession with Intent to Distribute Heroin” and one count of “Possession of a Firearm in Furtherance of a Drug Crime.” Wimer admitted to distributing heroin in January 2019 and admitted to having a .32 caliber pistol in February 2019. The crimes occurred in Hardy and Hampshire Counties.
Wimer faces up to 20 years incarceration and a fine of up to $1,000,000 for heroin charge. He faces at least five years incarceration and a fine of up to $250,000 for the firearms charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The West Virginia State Police investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Grand Jury Returns IndictmentsRead the Press Release
MADISON, WIS. -- A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Beloit Man Charged with Armed Robberies of Businesses
Nicholas K. Murn, 26, Beloit, Wisconsin, is charged with five counts of armed robbery of businesses that were engaged in interstate commerce. The businesses were located in Rock County, Wisconsin. The indictment alleges that he robbed the following businesses:
- Tex’s Grocery on Saint Lawrence Avenue in Beloit on October 17, 2019;
- Casey’s General Store on South John Paul Road in Milton, Wisconsin, on October 23, 2019;
- Stop N’ Go on East Milwaukee Street in Janesville, Wisconsin, on October 24, 2019;
- Mulligans BP Convenience on Milton Avenue in Janesville on October 26, 2019; and;
- Rollette Oil Gas Station on Madison Road in Beloit on October 30, 2019.
The indictment further alleges that Murn brandished a firearm during each of these robberies.
If convicted, Murn faces a maximum penalty of 20 years in federal prison on each robbery count. Each charge of brandishing a firearm during a crime of violence has a mandatory minimum penalty of seven years in prison, to be served consecutive to any sentence imposed for the robbery. The charges against Murn are the result of an investigation by the Beloit, Janesville, and Milton Police Departments, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Rita M. Rumbelow is handling the prosecution.
Madison Man Charged with Armed Bank Robbery
Stanley Griffin, 26, Madison, Wisconsin, is charged with the armed robbery of US Bank on Cottage Grove Road in Madison on July 9, 2019. The indictment also charges him with brandishing a firearm during the robbery.
If convicted, Griffin faces a maximum penalty of 25 years in federal prison on the armed bank robbery charge, and a mandatory minimum penalty of seven years in federal prison on the charge of brandishing a firearm during a crime of violence. Federal law requires that the sentence for brandishing a firearm be served consecutive to any sentence imposed on the bank robbery charge.
The charges against Griffin are the result of an investigation by the Madison Police Department and the Federal Bureau of Investigation. Assistant U.S. Attorney Rita M. Rumbelow is handling the prosecution.
Two Charged with Madison Robberies
Ramon Howard, 36, and Antonio Rowe, 30, both of Madison, Wisconsin, are charged with robbing financial institutions in Madison. The indictment alleges that:
- Rowe robbed the BMO Harris Bank on Sherman Avenue on September 10, 2019;
- Howard and Rowe robbed the Associated Bank on East Towne Boulevard on September 13, 2019;
- Howard robbed the Summit Credit Union on Thierer Road on September 16, 2019; and
- Howard and Rowe robbed the UW Credit Union on Northport Drive on September 26, 2019.
If convicted, Howard and Rowe face a maximum penalty of 20 years in federal prison for each robbery they are alleged to have committed. The charges against them are the result of an investigation by the Madison Police Department and Federal Bureau of Investigation. Assistant U.S. Attorney Corey C. Stephan is handling the prosecution.
The indictments against Murn, Griffin, Howard, and Rowe have been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition, and violent crimes and drug crimes that involve the use of firearms.
Onalaska Man Charged with Drug Crime
Eric Sobek, 47, Onalaska, Wisconsin, is charged with possessing 50 grams or more of methamphetamine with the intent to distribute. The indictment alleges that he possessed the methamphetamine on September 17, 2019.
If convicted, Sobek faces a mandatory minimum sentence of five years and a maximum of 40 years in federal prison. The charge against him is the result of an investigation by the La Crosse and Onalaska Police Departments. Assistant U.S. Attorney Chadwick M. Elgersma is handling the prosecution.
Madison Man Charged with Distributing Heroin
James Britton, 31, Madison, Wisconsin, is charged with three counts of distributing heroin and one count of possessing heroin with the intent to distribute. The indictment alleges that he distributed heroin on October 30, November 4, and November 6, 2019, and that he possessed heroin with the intent to distribute on November 14, 2019.
If convicted, Britton faces a maximum penalty of 20 years in federal prison on each count. The charges against him are the result of an investigation by the Drug Enforcement Administration. Assistant U.S. Attorney Taylor L. Kraus is handling the prosecution.
Madison Man Charged with Distributing Cocaine
Matthew Guirlando, 34, Madison, Wisconsin, is charged with four counts of distributing cocaine and one count of possessing cocaine with the intent to distribute. The indictment alleges that he distributed cocaine on May 2, July 9, July 25, and September 19, 2019, and that he possessed cocaine with the intent to distribute on October 7, 2019.
If convicted, Guirlando faces a maximum penalty of 20 years in federal prison on each count. The charges against him are the result of an investigation by the Drug Enforcement Administration. Assistant U.S. Attorney Aaron D. Wegner is handling the prosecution.
Grain Valley Business Owner Pleads Guilty to Failing to Pay $1.5 Million in Payroll TaxesRead the Press Release
KANSAS CITY, Mo. – A Grain Valley, Missouri, business owner pleaded guilty in federal court today to failing to pay more than $1.5 million in federal and state payroll taxes collected from his employees.
Jeremy Hull, 43, pleaded guilty before U.S. District Judge Gary A. Fenner to failing to account for and pay over to the Internal Revenue Service the federal employment taxes withheld for the fourth quarter of the tax year 2013.
Hull owned and operated Hullmark, LLC, a construction company, from December 2010 to December 2016. Hull withheld $707,029 in federal income taxes and FICA (Federal Insurance Contributions Act) taxes from his employees’ wages from 2013 through 2014. Hull also withheld $866,337 in state taxes from his employees’ wages. By pleading guilty today, Hull admitted that he failed to account for and pay over those taxes to the IRS and the Missouri Department of Revenue.
Under the terms of today’s plea agreement, Hull must pay $707,029 in restitution to the federal government and $866,337 in restitution to the Missouri Department of Revenue, for a total of $1,573,366 in restitution.
Under federal statutes, Hull is subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Tom Larson and Leigh Farmakidis. It was investigated by IRS-Criminal Investigation and the Missouri Department of Revenue.
Goines Indicted on Federal Civil Rights ChargeRead the Press Release
HOUSTON - Three people, including two former officers, are now in custody in relation to the fatal events that occurred in January 2019 on Harding Street in Houston, announced U.S. Attorney Ryan K. Patrick along with Assistant Attorney General Eric Dreiband of the Department of Justice’s Civil Rights Division and Special Agent in Charge Perrye K. Turner of the FBI.
A federal grand jury returned the nine-count indictment Nov. 14 against Gerald M. Goines, 55, and Steven M. Bryant, 46, both former Houston Police Department (HPD) officers. Also charged is Patricia Ann Garcia, 53. All are residents of Houston. The indictment was unsealed this morning as authorities took all three into custody. They are expected to make their initial appearances before U.S. Magistrate Judge Dena H. Palermo at 2 .m. today.
The federal indictment stems from the Jan. 28 narcotics raid HPD conducted on the 7800 block of Harding Street in Houston. The enforcement action resulted in the deaths of two residents at that location.
Goines is charged with two counts of depriving the victims’ constitutional right to be secure against unreasonable searches. The indictment alleges Goines made numerous materially false statements in the state search warrant he obtained for their residence. The execution of that warrant containing these false statements resulted in the death of the two individuals as well as injuries to four other persons, according to the indictment.
Goines and Bryant are charged with obstructing justice by falsifying records. Goines allegedly made several false statements in his tactical plan and offense report prepared in connection with that search warrant. The indictment alleges Bryant falsely claimed in a supplemental case report he had previously assisted Goines in the Harding Street investigation. Bryant allegedly identified a brown powdery substance (heroin) he retrieved from Goines’ vehicle as narcotics purchased from the Harding Street residence Jan. 27.
Goines is further charged with three separate counts of obstructing an official proceeding. The federal grand jury alleged Goines falsely stated Jan. 30 that someone had purchased narcotics at the Harding Street location three days prior. He also falsely stated Jan. 31 that another individual purchased narcotics at that residence that day, according to the charges. On Feb. 13, he also falsely claimed he had purchased narcotics at that residence on that day. The indictment alleges none of these statements were true.
The charges against Garcia allege she conveyed false information by making several fake 911 calls. Specifically, on Jan. 8, she allegedly made several calls claiming her daughter was inside the Harding Street location. According to the indictment, Garcia added that the residents of the home were addicts and drug dealers and that they had guns – including machine guns – inside the home, according to the indictment. The charges allege none of Garcia’s claims were true.
If convicted of the civil rights charges, Goines faces up to life in prison. Each obstruction count carries a potential 20-year sentence, while Garcia faces a five-year term of imprisonment for conveying false information.
The FBI is conducting the investigation. Assistant U.S. Attorneys Alamdar S. Hamdani, Arthur R. Jones and Sharad S. Khandelwal are prosecuting the case along with Special Litigation Counsel Jared Fishman of the department’s Civil Rights Division.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Georgia Man Apprehended at the Peace Bridge Sentenced on Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Ibrahim Dirweesh, 35, of Atlanta, Georgia, who was convicted of possession of child pornography involving a prepubescent minor, was sentenced by Senior U.S. District Judge William M. Skretny to serve 24 months in prison.
Assistant U.S. Attorney Elizabeth R. Moellering, who handled the case, stated that on August 22, 2018, following a secondary inspection, the defendant was detained by Customs and Border Protection officers at the Peace Bridge Port of Entry. During that secondary inspection, images and videos of child pornography were discovered on Dirweesh’s cell phone. The videos were sexual in nature involving pre-pubescent children as young as two years-old.
The sentencing is the result of an investigation by U.S. Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy, and Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
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Gary, Indiana Woman SentencedRead the Press Release
HAMMOND – Ethel Shelton, age 74, of Gary, Indiana, was sentenced by Judge Joseph Van Bokkelen to one year of probation, announced United States Attorney Thomas L. Kirsch, II.
Shelton was convicted of conspiracy to commit wire fraud and conspiracy to commit honest services wire fraud on April 17, 2018, after a 10-day jury trial. According to records in the case, Shelton was employed by the Calumet Township Trustee’s Office from 2003 to 2014, and served as Executive Secretary for Trustee Mary Elgin. During this time, Shelton and other Township employees diverted the resources of the Trustee’s Office by doing private campaign work for Elgin at work, using public facilities and equipment, and while being paid with public funds. Shelton also participated in a scheme to solicit and pressure Township employees to repay a portion of their wages to support Elgin’s reelection efforts in exchange for continued job security. Elgin and her son, Steven Hunter, previously pled guilty and have been sentenced. Alex Wheeler, who was also charged in this case, was acquitted at trial.
In addition to living under court-imposed conditions for one year, Shelton is required to pay restitution in the amount of $15,000 jointly and severally with Elgin and Hunter, in addition to a $2,000 fine.
This case was investigated by the Federal Bureau of Investigation with the assistance of the Internal Revenue Service. The case was prosecuted by Assistant United States Attorneys Maria Lerner, Abizer Zanzi and Philip Benson.
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Fugitive Sentenced for Fleeing to Avoid Serving Tax Fraud Prison SentenceRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Remijio Rafael Hau Chi, age 45, formerly of Littleton, Colorado was sentenced yesterday by Senior U.S. District Court Judge John L. Kane to serve 18 months in federal prison for fleeing the U.S. to avoid a jail sentence imposed in a previous tax fraud case. The 18 months’ imprisonment is consecutive to the tax fraud sentence.
According to the indictment and plea agreement in the previous tax fraud case, Hau Chi, along with his spouse, Wilma Hau, were sentenced by Judge Krieger on February 20, 2014 for conspiracy to make false and fraudulent claims to the government. As part of this conspiracy, Hau Chi participated in a scheme in which stolen taxpayer identifying information was used to submit fraudulent tax returns to the IRS claiming tax refunds. The investigation concluded that 138 false federal income tax returns were submitted to the IRS resulting in the issuance of $430,753 in fraudulent tax refunds. Chi used a significant portion of the refund proceeds for his personal benefit, including the purchase of a residence in Littleton and paying off the mortgage for said residence.
After Hau Chi was sentenced to 22 months in federal prison in the tax fraud case, the court allowed him to remain free on bond and report to the Federal Bureau of Prisons to serve his imprisonment once his wife completed her prison sentence. The Judgment entered against Hau Chi at the time of his sentence ordered that Hau Chi was required to notify the United States Attorney of any change of residence or mailing address within 30 days of his moving until he completed paying restitution as ordered by the court. Despite that condition, Hau Chi left his Littleton residence in March 2014 without notifying the United States Attorney, and absconded from supervision by the United States Probation Office, becoming a fugitive believed to be in Mexico. He was arrested in July 2018, when he traveled from Mexico to Canada, and was subsequently extradited back to the United States for service of his previously imposed tax fraud sentence and to face the new contempt charge that led to yesterday’s sentencing.
“Contempt is a serious crime, as you can see from this sentence,” said U.S. Attorney Jason Dunn. “Fleeing the country doesn’t work, it just prolongs the inevitable. The message is simple – if you’re wanted, turn yourself in.”
“Remigio Hau Chi thought he figured out a clever scheme to thwart the IRS, undermine the integrity of the U.S. legal system and steal from American taxpayers,” said IRS – Criminal Investigation Special Agent in Charge Andy Tsui. “This sentence highlights the seriousness of the defendant’s conduct and IRS – Criminal Investigation’s continued vigilance investigating and bringing to justice individuals who attempt to line their pockets with other people’s money.”
This case was investigated by Internal Revenue Service – Criminal Investigation.
This case is being prosecuted by Assistant United States Attorney Patricia Davies.
Friend of Dayton mass shooter pleads guilty to illegally possessing firearm, lying on federal firearms formRead the Press Release
DAYTON – Ethan Kollie, 24, of Kettering, a friend of the Dayton mass shooter Connor Betts, pleaded guilty in U.S. District Court today to illegally possessing firearms and lying on federal firearms form 4473.
As part of his guilty plea, Kollie acknowledged lying on a United States Bureau of Alcohol, Tabacco, Firearms and Explosives (ATF) Form 4473 when purchasing a micro Draco pistol, specifically while answering question 11e that asks, “Are you an unlawful user of, or addicted to, marijuana or any depressant, stimulant, narcotic drug, or any other controlled substance?”
Kollie checked the “no” box, when in fact he knew he was an unlawful user of marijuana and psychedelic mushrooms. Kollie answered falsely because he knew he would not be able to obtain the micro Draco pistol if he answered truthfully.
During searches of Kollie and his residence following the Aug. 4 shooting, law enforcement officers recovered the micro Draco pistol, which was loaded with 30 rounds of ammunition, marijuana, psychedelic mushrooms, additional weapons, ammunition, drug paraphernalia and psychedelic mushroom grow equipment.
Kollie illegally possessed at various times four firearms in total, namely, the micro Draco pistol, a 9mm handgun, a 38 Special revolver, and an AR-15 rifle. The micro Draco pistol and the AR-15 are both semi-automatic weapons and could accept more than 15 rounds of ammunition.
Possessing a firearm as an unlawful user of a controlled substance is a federal crime punishable by up to 10 years in prison. Making a false statement regarding firearms carries a potential maximum sentence of up to five years’ imprisonment. 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.
Sentencing is scheduled for Feb. 20.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Joseph M. Deters, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Jonathan McPherson, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); and Dayton Police Chief Richard S. Biehl, announced the plea entered into today before Senior U.S. District Judge Thomas M. Rose. First Assistant United States Attorney Vipal J. Patel and Deputy Criminal Chief Dominick S. Gerace are representing the United States in this case.
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Fourth Former Tennessee Correctional Officer Pleads Guilty Following Assault of InmateRead the Press Release
Memphis, TN – Cadie McAlister, 21, pleaded guilty to a federal offense and admitted concealing other correctional officers’ assault of an inmate while McAlister was serving as an officer with the Tennessee Department of Corrections.
"Correctional officers who conceal unlawful actions of other officers erode public trust and will not be tolerated by the Department of Justice," said Assistant Attorney General Eric Dreiband of the Civil Rights Division. "The Department of Justice will continue to hold correctional officers accountable for their actions."
"Correctional officers must abide by and adhere to the same laws they take an oath to uphold and enforce. Instead of serving and protecting the public, this officer actively participated to conceal the use of physical force by other officers to violate the civil rights of an individual. As a result, she will now be held accountable, vividly illustrating that no one is above the law," said U.S. Attorney D. Michael Dunavant for the Western District of Tennessee.
"When a law enforcement officer violates the civil rights of another, she brings shame on the badge and all law enforcement officers," said Special Agent in Charge M.A. Myers of the FBI Memphis Field Office. "This plea should send a clear message that the FBI makes it a priority to bring any law enforcement officer who violates the constitution and the trust of the people to justice."
With her guilty plea, McAlister admitted that, on Feb. 1, 2019, she and other correctional officers at the Northwest County Correctional Complex in Tiptonville, Tennessee went to the cell of R.T., an inmate in the mental health unit. Other officers entered the cell while McAlister stood in the doorway. McAlister heard someone ask for the surveillance camera to be covered and saw a correctional officer cover the camera with his hand.
After the camera was covered, McAlister saw an officer repeatedly hit R.T. without any lawful justification. While the officer was hitting R.T., another officer asked McAlister to get paper towels. She brought paper towels back to the cell and provided them to an officer who wet them. She then saw the officer covering the camera put the wet paper towels over the camera.
McAlister was responsible for regularly updating the logbook in the mental health unit during her shift. However, she failed to document: the arrival of additional officers into the unit; the entry of five officers into R.T.’s cell; that an officer repeatedly hit R.T.; that the camera was covered while the officers were in the cell; that she provided paper towels which were used to cover the camera; or that R.T. remained in his cell bleeding after the correctional officers left.
With today’s guilty plea, McAlister admitted that she violated 18 U.S.C. § 4 by knowing of a federal felony, failing to notify authorities of the felony, and taking an affirmative step to conceal the felony. The maximum penalty for this offense is three years of imprisonment.
Previously, former correctional officers 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 is being 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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Fourth Former Tennessee Correctional Officer Pleads Guilty Following Assault of InmateRead the Press Release
Cadie McAlister, 21, pleaded guilty to a federal offense and admitted concealing other correctional officers’ assault of an inmate while McAlister was serving as an officer with the Tennessee Department of Corrections.
“Correctional officers who conceal unlawful actions of other officers erode public trust and will not be tolerated by the Department of Justice,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Department of Justice will continue to hold correctional officers accountable for their actions.”
"Correctional officers must abide by and adhere to the same laws they take an oath to uphold and enforce. Instead of serving and protecting the public, this officer actively participated to conceal the use of physical force by other officers to violate the civil rights of an individual. As a result, she will now be held accountable, vividly illustrating that no one is above the law," said U.S. Attorney D. Michael Dunavant for the Western District of Tennessee.
"When a law enforcement officer violates the civil rights of another, she brings shame on the badge and all law enforcement officers," said Special Agent in Charge M.A. Myers of the FBI Memphis Field Office. "This plea should send a clear message that the FBI makes it a priority to bring any law enforcement officer who violates the constitution and the trust of the people to justice."
With her guilty plea, McAlister admitted that, on Feb. 1, 2019, she and other correctional officers at the Northwest County Correctional Complex in Tiptonville, Tennessee went to the cell of R.T., an inmate in the mental health unit. Other officers entered the cell while McAlister stood in the doorway. McAlister heard someone ask for the surveillance camera to be covered and saw a correctional officer cover the camera with his hand.
After the camera was covered, McAlister saw an officer repeatedly hit R.T. without any lawful justification. While the officer was hitting R.T., another officer asked McAlister to get paper towels. She brought paper towels back to the cell and provided them to an officer who wet them. She then saw the officer covering the camera put the wet paper towels over the camera.
McAlister was responsible for regularly updating the logbook in the mental health unit during her shift. However, she failed to document: the arrival of additional officers into the unit; the entry of five officers into R.T.’s cell; that an officer repeatedly hit R.T.; that the camera was covered while the officers were in the cell; that she provided paper towels which were used to cover the camera; or that R.T. remained in his cell bleeding after the correctional officers left.
With today’s guilty plea, McAlister admitted that she violated 18 U.S.C. § 4 by knowing of a federal felony, failing to notify authorities of the felony, and taking an affirmative step to conceal the felony. The maximum penalty for this offense is three years of imprisonment.
Previously, former correctional officers 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 is being 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.
Four BVI Foreign Nationals Apprehended in Coral Bay, St. John, Charged with Illegal Entry into the United StatesRead the Press Release
St. Thomas, USVI – Mohammed Singh, a citizen of Guyana, and Jaisel Yroveles Del Jesus, Shadrach Thompson, and Tereim Grant, all citizens of the British Virgin Islands, were charged with knowingly and willfully entering or attempting to enter the United States at a time and place other than as designated by Immigration Officers. The four individuals made their initial appearances before U.S. Magistrate Judge Ruth Miller on Friday. After preliminary and detention hearings on Monday, Judge Miller released Mohammed Singh, Jaisel Yroveles Del Jesus, and Shadrach Thompson on their own recognizance.
The complaint alleges that CBP Air and Marine agents observed a vessel operating without navigational lights enter and depart Coral Bay, St. John. The CBP agents energized their lights and sirens in an attempt to stop the vessel, but the vessel did not comply. CBP agents observed several of the occupants of the vessel jettisoning items into the water. CBP then disabled and boarded the vessel. After boarding the vessel, agents identified the four individuals on board as foreign nationals. Multiple individuals on board the vessel admitted that the vessel had travelled from the British Virgin Islands.
This case is being investigated by Homeland Security Investigations and CBP Air and Marine, and is being prosecuted by Assistant United States Attorney Adam Sleeper.
United States Attorney Shappert reminds the public that a complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty.
Former Trader for Major Multinational Bank Convicted for Price Fixing and Bid Rigging in FX MarketRead the Press Release
A former currency trader was convicted today in New York for his participation in an antitrust conspiracy to manipulate prices for emerging market currencies in the global foreign currency exchange (FX) market, the Justice Department announced today.
Following a three-week trial in the U.S. District Court for the Southern District of New York, a jury convicted Akshay Aiyer (former Executive Director at a major multinational bank) of conspiring to fix prices and rig bids in Central and Eastern European, Middle Eastern and African (CEEMEA) currencies, which were generally traded against the U.S. dollar and the euro, from at least October 2010 through at least January 2013.
“Today, a jury of citizens held the defendant accountable for fixing prices and rigging bids for emerging market currencies traded in the United States and elsewhere,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “This conviction serves as a reminder of our commitment to hold individuals responsible for their involvement in complex financial schemes which violate the integrity of the global financial markets.”
“Today’s verdict holds the defendant accountable for manipulating the foreign currency market for his own benefit at the expense of free and open competition,” said Federal Deposit Insurance Corporation (FDIC) Inspector General Jay N. Lerner. “We are dedicated to working with our law enforcement partners to investigate such complex crimes which undermine the integrity of financial markets, and to bring bank insiders to justice.”
According to evidence presented at trial, the defendant engaged in near-daily communications with his co-conspirators by phone, text and through an exclusive electronic chat room to coordinate their trades of the CEEMEA currencies in the FX spot market. The jury heard evidence that the defendant and his co-conspirators manipulated exchange rates by agreeing to withhold bids or offers to avoid moving the exchange rate in a direction adverse to open positions held by co-conspirators and by coordinating their trading to manipulate the rates in an effort to increase their profits. By agreeing not to buy or sell at certain times, the conspiring traders protected each other’s trading positions by withholding supply of or demand for currency and suppressing competition in the FX spot market for emerging market currencies. They also heard evidence that the defendant and his co-conspirators took steps to conceal their actions by, among other steps, using code names, communicating on personal cell phones during work hours and meeting in person to discuss particular customers and trading strategies.
The Antitrust Division has charged five companies and six individuals in its investigation of collusion in the FX spot market. On May 20, 2015, four major banks – Citicorp, JPMorgan Chase & Co., Barclays PLC and The Royal Bank of Scotland plc – pleaded guilty and agreed to pay collectively more than $2.5 billion in criminal fines for their participation in an antitrust conspiracy in the euro-U.S. dollar FX spot market. On Jan. 25, 2018, BNP Paribas USA Inc. pleaded guilty and agreed to pay a $90 million criminal fine for its participation in an antitrust conspiracy involving emerging market FX prices. On Jan. 4, 2017 and Jan. 12, 2017, plea agreements were announced for two former traders in connection with an antitrust conspiracy involving emerging market FX prices.
The Antitrust Division’s investigation of collusion in the financial markets is ongoing. The investigation in today’s case is being conducted by the FDIC Office of Inspector General and the FBI’s Washington Field Office, and the prosecution is being handled by the Antitrust Division’s New York Office. The Criminal Division’s Fraud Section also provided substantial assistance in this matter. Anyone with information on price fixing, bid rigging or other anticompetitive conduct in the financial markets should contact the Antitrust Division’s New York Office at 212-335-8000 or visit www.justice.gov/atr/contact/newcase.html.
Former San Francisco Deputy Sheriff Sentenced to 14 Months Imprisonment for Scheme to Defraud Insurance CompanyRead the Press Release
SAN FRANCISCO – Former San Francisco Deputy Sheriff April Myres was sentenced to 14 months in prison for committing mail and wire fraud, announced United States Attorney David L. Anderson and Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett. The sentence was handed down by the Honorable Richard Seeborg, U.S. District Judge.
The sentence follows an eight-day trial that resulted in a jury convicting Myres, 55, of San Francisco, of the two crimes on June 26, 2019. The evidence at trial demonstrated that Myres reported a burglary of her home to the San Francisco Police Department on March 25, 2016. As part of her report to the police, she claimed numerous items were stolen, including the firearm, her San Francisco Sheriff’s Department (SFSD)-issued radio, and numerous luxury goods. After making the report, Myres repeatedly refused to cooperate with the investigation. Then, in May 2016, Myres filed an insurance claim under her homeowner’s policy. In her claim, Myres stated that the SFSD-issued firearm, the SFSD-issued radio, and the luxury goods had been stolen. Myres asserted in her insurance claim that she was entitled to over $67,000 in reimbursement for all of the items stolen.
An investigation by the FBI revealed that Myres made numerous false statements in her insurance claim. For example, Myres told the insurance company she had no suspects in the burglary and no estranged boyfriends who might have been responsible. Nevertheless, the evidence showed that while she had been working at the San Francisco County Jail, Myres had carried on a romantic relationship with an inmate, Antoine Fowler. Immediately after Fowler was released from custody in January 2016, he went to Myres’ house where he lived until March 24, 2016, the morning of the claimed burglary, when he moved out after a late-night dispute with Myres.
In addition, the evidence demonstrated Myres made numerous false statements in the insurance claim about the items she claimed had been stolen. For example, she falsely claimed she owned the SFSD-issued firearm and SFSD-issued radio that she said had been stolen, and provided false details about the purchase prices and locations to bolster her claim. She also made false statements about items that had been stolen, including claiming that three items – a Louis Vuitton purse, Gucci boots, and a fox fur vest – were stolen; all three of these items were located in her house when the FBI conducted a search in February 2017.
Following its investigation into Myres and Fowler, the FBI arrested Myres and Fowler on February 2, 2017, and found Myres’ SFSD-issued firearm in Fowler’s possession.
On April 11, 2017, a federal grand jury indicted Myres and Fowler. The grand jury charged Myres with one count each of mail fraud, in violation of 18 U.S.C. § 1341, and wire fraud, in violation of 18 U.S.C. § 1343. The grand jury also charged Myres with misprision of a felony, in violation of 18 U.S.C. § 4, for deliberately concealing from law enforcement that Fowler had her firearm. The trial jury found Myres guilty of the wire fraud and mail fraud counts and acquitted her of the misprision of a felony charge.
In addition to the prison term, Judge Seeborg ordered Myres to serve 14 months of supervised release to begin after the prison term is concluded. Judge Seeborg described Myres’ conduct as “shameful” and agreed with a court document assessing Myres’ role in the offenses—the document contained the following assessment: “when those sworn to uphold the law become the very ones who break the law, the entire criminal justice system is undermined.”
Judge Seeborg ordered Myres released on a $1,000,000 secured bond until she surrenders to the Bureau of Prisons to begin serving her prison term. Judge Seeborg ordered Myres to surrender on or before January 28, 2020.
For his part in the events, Fowler pleaded guilty on May 14, 2019, to one count of being a felon in possession of a firearm, in violation of 18 U.S.C. § 922(g)(1). Fowler was released on a $50,000 bond and remains out of custody pending sentencing. Judge Seeborg scheduled Fowler’s sentencing for January 7, 2020. The maximum statutory penalty for felon in possession of a firearm, in violation of 18 U.S.C. § 922(g)(1), is 10 years imprisonment, three years of supervised release, and a fine of $250,000. However, any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Laura Vartain and Nicholas Walsh are prosecuting the case with the assistance of Helen Yee, Kimberly Richardson, Margoth Turcios, Sutton Pierce, and Ian Meader. The prosecution is the result of an investigation by the FBI and the San Francisco Police Department.
Former Lynn Haven City Manager, Community Services Director, and Three Business Executives Indicted for $5 Million Hurricane Michael Cleanup Fraud ConspiracyRead the Press Release
PANAMA CITY, FLORIDA – Two former ranking City of Lynn Haven officials, including the city manager, have been indicted by a federal grand jury for conspiring with three local business executives to process some $5 million in fraudulent invoices for Hurricane Michael cleanup work that was not performed. Lawrence Keefe, United States Attorney for the Northern District of Florida, announced the indictments of former Lynn Haven City Manager Michael Edward White, 46; Lynn Haven Community
Services Director David Wayne Horton, 55; Erosion Control Specialists (ECS) owner David Mitchelle
White, 38; Greenleaf Lawn Care of Bay County owner Joshua Daniel Anderson, 43; and Shannon Delores
Rodriguez, a/k/a Shannon Delores Harris, 37, all of Panama City.The 35-count indictment charges the defendants with conspiring to commit wire fraud, substantive counts of wire fraud, and conspiracy to commit money laundering. Michael White and Horton are also charged with substantive counts of theft concerning programs receiving Federal funds and honest services fraud. Michael White and David White are also charged with filing false claims to the
Federal Emergency Management Agency (FEMA). Horton is also charged with mail fraud concerning the defrauding of an insurance company.“The greatest cost of public corruption is the potential widespread loss of public trust in our government. It is a dangerous virus that threatens to infect public service and public trust in it, and we are committed to stop the spread of that virus of corruption,” said Keefe, who last week announced indictments in an unrelated public corruption case. “Preventing, pursuing, prosecuting and punishing public corruption is among our highest priorities. The common thread in today’s case and in last week’s case is simply this: an egregious abuse of power and position by people in public service who betrayed their sacred duties – and those who sought to illegally scheme and conspire with them – to breach the public’s trust.”
“Abusing one's position for personal gain – especially in a time of crisis – is a blatant disregard to the oath that every government official takes,” said Rachel L. Rojas, Special Agent in Charge of the FBI Jacksonville Division. “Federal assistance programs are established to help individuals, families, and businesses that have suffered tremendous loss, and abusing these programs is egregious. The FBI is committed to protecting these programs from fraud to ensure that honest citizens can receive the assistance they deserve when they need a helping hand the most."
“The Bay County Sheriff's Office will stand firm against corruption, and will continue to work with our partners in the FBI and the U.S. Attorney’s Office to hold those who would tarnish the reputation of Bay County accountable for their actions," Sheriff Tommy Ford said. "As Sheriff of
Bay County, I remain unwavering in my commitment to dedicate the resources needed to continue this fight against corruption."The five defendants were arrested by agents and deputies of the Bay County Sherriff’s Office this morning. Michael White was arrested in Albertville, Alabama. The remaining defendants were arrested in Bay County.
The indictment alleges that after Hurricane Michael, on October 16, 2018, the City of Lynn Haven adopted a local state of emergency for post-disaster relief and planning and approved a resolution waiving the procedures and formalities otherwise required under Florida law to take action to ensure the safety, welfare, and health of the citizens of Lynn Haven. This included entering into contracts, incurring obligations, and expending public funds. The resolution delegated emergency powers to the mayor of Lynn Haven, or her designee City Manager Michael White, to discharge the duties and exercise powers for the post-hurricane activities. The emergency declaration was ended by Lynn Haven two weeks later. City Manager White entered into an emergency agreement with David
White and ECS to perform services for Lynn Haven related to post-hurricane assistance, with the understanding that invoices submitted for payment to Lynn Haven would be submitted to FEMA for reimbursement.The indictment alleges that David White used ECS and Anderson used Greenleaf as a means to fraudulently obtain money from Lynn Haven by submitting invoices requesting payment for services allegedly provided by ECS and Greenleaf to the city, but which were false and fraudulent as to a number of material matters. City Manager White approved all ECS and Greenleaf invoices and directed city employees to immediately pay ECS and Greenleaf for those invoices. Horton also approved payment of these invoices and approved timesheets of employees that were submitted in support of
ECS and Greenleaf invoices to Lynn Haven and were then provided to FEMA. Horton also falsely verified the attendance of ECS employees at various claimed work locations in Lynn Haven. Lynn
Haven was defrauded of approximately $5 million.The indictment also alleges that when ECS invoices were being assembled for submission to FEMA by
Lynn Haven for reimbursement, it was discovered that most of the ECS invoices that had been paid provided no details in support of the requested payments. When directed to provide supporting documentation for the monies requested and already paid, David White submitted false time sheets prepared by Rodriguez. The time sheets were false and fraudulent in that they included names of individuals who had not worked at the claimed location(s), were off that day, worked at other projects outside Lynn Haven, or had never worked for ECS at the time of the timesheet.
Additionally, in many invoices, the specific Lynn Haven locations of work claimed to have been done by ECS were false. Horton approved and falsely verified the timesheets claiming attendance of ECS workers at various Lynn Haven locations.The indictment also alleges that David White billed Lynn Haven for clean-up activities by individuals who were Greenleaf employees, working out of ECS. Anderson simultaneously submitted a false invoice to Lynn Haven for $50,004 for alleged debris cleanup at the same Lynn Haven locations. Michael White approved the payment to Anderson and issued a handwritten Lynn Haven check to Greenleaf totaling $66,402.58, which included $16,398.58 for alleged lawn services provided by Greenleaf after the hurricane.
The indictment alleges that ECS invoices were submitted to Lynn Haven for payment of services that were not authorized under the emergency contract and were for personal residences of some Lynn
Haven officials. These officials included Michael White and Horton. The performance of ECS post-hurricane debris removal and repairs at the residences of some Lynn Haven officials was concealed and not disclosed in the ECS invoices submitted by David White and approved by Michael
White, who caused Lynn Haven to pay the invoices.The indictment also alleges that Michael White and Horton located numerous projects for ECS to handle that were outside the activities described in the Emergency Agreement. City Manager White and Horton had ECS employees wrap Christmas gifts, prepare locations for a Halloween party, and other miscellaneous acts that were not authorized under any agreement with Lynn Haven. Then, David
White submitted invoices that did not describe the actual activities performed, but instead falsely claimed the work was debris removal or cleaning activities in Lynn Haven. David White billed Lynn
Haven for a minimum of $35.00 per hour for ECS employees plus an ECS supervisor at $90 per hour for these unauthorized activities. Michael White approved these false invoices.According to the charges, after the initial declaration of an emergency by Lynn Haven had been revoked and expired, Michael White and Horton sought to locate additional Lynn Haven projects that could provide money to David White and Anderson. One project was for ECS to conduct trash pickup, using a pickup truck and a trailer, at a cost of $300 per hour per crew throughout Lynn Haven. This action was implemented despite the ability of Lynn Haven waste trucks to pick up large amounts of household trash and deposit large amounts of trash at the dump at no increased cost to Lynn Haven.
False invoices were submitted by ECS for claimed trash pickup. For example, the indictment charges that a false invoice for hurricane cleanup in the amount of $332,387.76 was submitted to Lynn Haven by David White that falsely claimed trash pickup was conducted by ECS during a 14-day period starting on October 18, 2018. No documentation was submitted in support of this invoice. The claimed trash pickup did not occur, and there was no record of any trash being dumped at the Bay
County refuse location, City Manager White had not obtained approval from Bay County for ECS to use the account of Lynn Haven to dump items at the Bay County facility until at least October 31, 2018.Another example of the fraud concerning trash pickups charged in the indictment came three months after Hurricane Michael, when a false invoice for hurricane cleanup in the amount of
$479,020.68 was submitted to Lynn Haven by David White that falsely claimed trash pickup was conducted by ECS during a 13-day period starting the day after New Year’s Day. The invoice also falsely claimed that between 11 and 13 crews were used to collect trash daily. The invoice falsely claimed trash pickup during this period totaling $32,278.68 per day for five days, $38,878.44 per day for seven days, and $45,478.20 for the last day. City Manager White approved and caused the payment of this invoice.The indictment further alleges that while David White and ECS were providing services to Lynn
Haven, Michael White received things of value from David White, including repairs to, and debris removal from, the City Manager’s residence in Lynn Haven and his farm located outside Lynn Haven in
Bay County, and $300,000 for the purchase of Michael White’s farm and an automobile. The repairs to, and debris removal from, the residence and farm of Michael White were billed to Lynn Haven with false invoices submitted by David White to Lynn Haven that falsely stated the work had been performed at locations in Lynn Haven. Michael White directed City employees to pay the invoices. Also, during the sale of Michael White’s farm to David White, Michael White solicited David White to provide bids for projects at specific prices for work at City parks, and to provide additional false bids, which David White did.Similarly, the indictment alleges that while David White and ECS were providing services to Lynn
Haven, Horton received things of value from David White, including repairs to, and debris removal from, Horton’s residence in Lynn Haven. Additionally, Horton accepted payment of some of his travel, lodging, meals, entertainment, and food from David White on multiple occasions while David
White was providing services to Lynn Haven, and Horton was approving the invoices for payment and falsely verifying ECS timesheets claiming attendance of workers at City locations. Additionally, Horton sent a text message to David White requesting an invoice from ECS for work done at Horton’s residence after the hurricane, and instructed the invoice to be at least $3,500, if not more. David
White then provided to Horton an ECS invoice for $9,600 that was falsely marked, “Paid in Full.”
Horton submitted this invoice to an insurance company in support of his insurance claim for $9,600.
Horton had not paid ECS or David White any money at the time that Horton submitted the invoice as proof of his claim to an insurance company. The City had unwittingly paid ECS for the work on
Horton’s house through a false invoice.The Federal Bureau of Investigation and Bay County Sheriff’s Office conducted the investigation.
The case is being prosecuted by Assistant U.S. Attorney Stephen M. Kunz.The maximum terms of imprisonment for the offenses are as follows: - Conspiracy to Commit Wire Fraud, Wire Fraud, Honest Services Fraud, Mail Fraud, and Conspiracy to
Commit Money Laundering: 20 years
- Theft Concerning Programs Receiving Federal Funds: 10 years
- Filing False Claims To Agency of the United States: 5 yearsAn indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of
Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.Former Chief Executive Officer of a Brazilian Petrochemical Company Charged for His Role in a Scheme to Pay Bribes to Brazilian Officials and to Falsify Company Books and RecordsRead the Press Release
An indictment was unsealed today charging a former chief executive officer (CEO) of Braskem S.A. (Braskem), a publicly traded Brazilian petrochemical company, for his role in a massive bribery and money laundering scheme involving Braskem and its parent company, Odebrecht S.A. (Odebrecht), that resulted in the diversion of hundreds of millions of dollars from Braskem into a secret slush fund that was used, in part, to pay bribes to government officials, political parties and others in Brazil to obtain and retain business.
Jose Carlos Grubisich, 62, a citizen of Brazil who served as the CEO and a member of the board of directors of Braskem, as well as in various capacities for Odebrecht, was charged with one count of conspiracy to violate the anti-bribery provision of the Foreign Corrupt Practices Act (FCPA), one count of conspiracy to violate the books and records provision of the FCPA and to fail as a corporate officer to certify financial reports and one count of conspiracy to commit international money laundering. Grubisich was arrested this morning, and is scheduled to be arraigned this afternoon before U.S. District Judge Raymond J. Dearie of the Eastern District of New York.
“Grubisich and other senior executives at Braskem and Odebrecht allegedly engaged in a massive and sophisticated international bribery and money laundering scheme, employing secret slush funds, shell companies, and false accounting,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “As demonstrated by the charges unsealed today, the Department continues to work closely with our domestic and international partners to root out and prosecute corporate fraud and corruption at the highest levels.”
“As alleged in the indictment, Jose Carlos Grubisich used his position as CEO of a major publicly traded petrochemical company to funnel hundreds of millions of dollars through offshore accounts to bribe power brokers and serve the interests of his company,” said U.S. Attorney Richard P. Donoghue for the Eastern District of New York. “Today’s indictment once again demonstrates the commitment of the U.S. Department of Justice to investigate and prosecute those who take advantage of the United States financial system to further their financial crimes.”
As alleged in the indictment, between approximately 2002 and 2014, Grubisich, together with other co-conspirators, including certain former Braskem and Odebrecht employees, engaged in a widespread bribery and money laundering scheme that resulted in the diversion of approximately $250 million of Braskem’s funds into a secret slush fund, which was used, in part, to pay bribes to government officials, political parties and others in Brazil to obtain and retain business and certain business advantages for Braskem. The slush fund was allegedly generated by payments from Braskem’s bank accounts in Brazil, New York and Florida pursuant to fraudulent contracts with offshore shell companies that were secretly controlled by Braskem. These shell companies funneled the slush funds to a department within Odebrecht responsible for making bribe payments, which ultimately made corrupt payments on Braskem’s behalf, the indictment alleges.
Additionally, as alleged in the indictment, while CEO of Braskem, Grubisich was involved in negotiating and approving bribes to government officials using money from the slush fund. These included alleged payments made to ensure that Braskem could retain a contract for a significant petrochemical project in Brazil, and to ensure that Braskem could obtain favorable pricing in contract negotiations with Petroleo Brasileiro S.A. – Petrobras, Brazil’s state-owned and state-controlled oil company. Grubisich regularly discussed the bribe payments with other co-conspirators, and was kept informed about bribe payments made on behalf of Braskem, the indictment alleges. Certain of the bribe payments that were allegedly negotiated and authorized by Grubisich were ultimately paid after Grubisich left his position as CEO of Braskem in 2008, but while he continued to serve in other capacities at Odebrecht and Braskem, and while he was a stockholder of Braskem.
Furthermore, as alleged in the indictment, while CEO of Braskem, Grubisich agreed to falsify Braskem’s books and records by causing Braskem to falsely record the payments to the offshore shell companies controlled by Braskem as “commissions.” Grubisich also signed false certifications submitted to the SEC that, among other things, attested that Braskem’s annual reports fairly and accurately represented Braskem’s financial condition, and that Grubisich, as Braskem’s principal officer, had disclosed all fraudulent conduct by Braskem’s management and other employees with control over Braskem’s financial reporting, the indictment alleges.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
Braskem and Odebrecht have each pleaded guilty in the Eastern District of New York to one-count criminal informations separately charging each with conspiracy to violate the anti-bribery provisions of the FCPA for their involvement in the widespread bribery and money laundering scheme. The cases are also assigned to Judge Dearie.
The FBI’s International Corruption squad in New York investigated this case. Assistant Chief Lorinda Laryea and Trial Attorney Leila Babaeva of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Alixandra Smith and Julia Nestor of the Eastern District of New York are prosecuting the case.
The Criminal Division’s Office of International Affairs also provided substantial assistance. The U.S. Securities and Exchange Commission, the Brazilian Ministerio Publico Federal, the Brazilian Departamento de Polícia Federal and the Office of the Attorney General of Switzerland provided significant cooperation.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
To learn more about the government’s FCPA enforcement efforts, go to www.justice.gov/criminal/fraud/fcpa.
Former CEO of Braskem Indicted for His Role in Bribery SchemeRead the Press Release
An indictment was unsealed today in federal court in Brooklyn charging Jose Carlos Grubisich, the former Chief Executive Officer (CEO) of Braskem S.A. (Braskem), a publicly traded Brazil-based petrochemical company, for his role in a massive bribery and money laundering scheme involving Braskem and its parent company, Odebrecht S.A. (Odebrecht). The scheme allegedly resulted in the diversion of hundreds of millions of dollars from Braskem to a secret slush fund used, in part, to pay bribes to government officials, political parties and others in Brazil to obtain and retain business. Grubisich, who also served as a member of the Board of Directors of Braskem, and in various capacities for Odebrecht, was charged with one count of conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA), one count of conspiracy to violate the books and records provisions of the FCPA and one count of conspiracy to commit money laundering.
Grubisich was arrested this morning, and will be arraigned this afternoon before United States District Judge Raymond J. Dearie.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.
“As alleged in the indictment, Jose Carlos Grubisich used his position as CEO of a major publicly traded petrochemical company to funnel hundreds of millions of dollars through offshore accounts to bribe power brokers and serve the interests of his company,” stated United States Attorney Donoghue. “Today’s indictment once again demonstrates the commitment of the U.S. Department of Justice to investigate and prosecute those who take advantage of the United States financial system to further their financial crimes.”
“Grubisich and other senior executives at Braskem and Odebrecht allegedly engaged in a massive and sophisticated international bribery and money laundering scheme, employing secret slush funds, shell companies, and false accounting,” stated Assistant Attorney General Benczkowski. “As demonstrated by the charges unsealed today, the Department continues to work closely with our domestic and international partners to root out and prosecute corporate fraud and corruption at the highest levels.”
As alleged in the indictment, between approximately 2002 and 2014, Grubisich and his co-conspirators created a slush fund by making payments from Braskem’s bank accounts in Brazil, New York and Florida pursuant to fraudulent contracts with offshore shell companies secretly controlled by Braskem. The shell companies then funneled the slush funds to a department within Odebrecht that was responsible for making bribe payments on Braskem’s behalf.
As CEO of Braskem, Grubisich participated in negotiating and approving the bribes to government officials, including the payments made to ensure that Braskem retained a contract for a significant petrochemical project in Brazil and to ensure that Braskem could obtain favorable pricing in contract negotiations with Petroleo Brasileiro S.A. – Petrobras, Brazil’s state-owned and state-controlled oil company. Grubisich regularly discussed the bribe payments with his co-conspirators and was informed of bribe payments made on behalf of Braskem. Various bribe payments that were negotiated and authorized by Grubisich were ultimately paid after Grubisich left his position as CEO in 2008, but while he continued to serve in other capacities at Odebrecht and Braskem, and while he was a stockholder of Braskem.
Also while serving as CEO of Braskem, Grubisich agreed to falsify Braskem’s books and records by causing Braskem to record the payments to the offshore shell companies controlled by Braskem as “commissions.” He also signed false certifications submitted by Braskem to the United States Securities and Exchange Commission that attested to the fairness and accuracy of Braskem’s annual reports and financial condition, and to the disclosure of any fraudulent conduct by Braskem’s management and other employees with control over Braskem’s financial reporting.
On December 21, 2016, Braskem and Odebrecht pleaded guilty in the Eastern District of New York to criminal informations separately charging each with conspiracy to violate anti-bribery provisions of the FCPA for their involvement in the bribery and money laundering scheme.
The charges in the indictment announced today are allegations, and the defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant United States Attorneys Alixandra Smith and Julia Nestor of the Office’s Business and Securities Fraud Section, and Criminal Division Fraud Section FCPA Assistant Chief Lorinda Laryea and Fraud Section Trial Attorney Leila Babaeva. The FBI’s International Corruption squad in New York investigated this case.
The Criminal Division’s Office of International Affairs also provided substantial assistance. The Securities and Exchange Commission, the Brazilian Ministerio Publico Federal and Departamento de Polícia Federal, and the Office of the Attorney General in Switzerland provided significant cooperation.
The Defendant:
JOSE CARLOS GRUBISICH
Age: 62
Sao Paulo, BrazilE.D.N.Y. Docket No. 19-CR-102 (RJD)
Former Beaufort Securities Investment Manager Pleads Guilty to Conspiracies to Commit Securities Fraud and to Defraud the United States by Failing to Comply with Foreign Account Tax Compliance ActRead the Press Release
Earlier today, in federal court in Brooklyn, Panayiotis Kyriacou, a former investment manager at Beaufort Securities Limited, a brokerage firm in London, pleaded guilty to conspiring to commit securities fraud and to defraud the United States by failing to comply with the Foreign Account Tax Compliance Act (FATCA). FATCA is a federal law that requires foreign financial institutions to identify their U.S. customers and report information about financial accounts held by U.S. taxpayers, either directly or through a foreign entity (FATCA Information). FATCA’s primary aim is to prevent U.S. taxpayers from using foreign accounts to facilitate the commission of federal tax offenses. The guilty plea was entered before United States District Judge Kiyo A. Matsumoto. When he is sentenced, Kyriacou faces a maximum of 10 years’ imprisonment.
Richard P. Donoghue, United States Attorney for the Eastern District of New York; Richard E. Zuckerman, Principal Deputy Assistant Attorney General of the Justice Department’s Tax Division; William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Jonathan D. Larsen, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI), announced the guilty plea.
In announcing the guilty plea, Mr. Donoghue thanked the U.S. Securities and Exchange Commission’s (SEC) New York Regional Office and the Washington, D.C. Office, the City of London Police, the U.K.’s Financial Conduct Authority and the Hungarian National Bureau of Investigation for their significant cooperation and assistance during the investigation.
In the fall of 2016, an Undercover Agent contacted Kyriacou and stated that he was a U.S. citizen interested in opening brokerage accounts at Beaufort Securities to execute trades in several multi-million dollar stock manipulation deals in stocks traded on U.S. over-the-counter markets. In furtherance of the scheme, Kyriacou and Beaufort Securities opened six brokerage accounts. Notwithstanding that a U.S. citizen would be the beneficial owner of each of the accounts, at no time did Kyriacou request FATCA Information from the Undercover Agent. The brokerage accounts were opened for the Undercover Agent in the names of various international business corporations based in Belize, with Belizean nominees listed as the beneficial owners.
In January 2018, Kyriacou facilitated the manipulation of trading in the stock of HD View 360, Inc., a publicly traded U.S. company that traded under the ticker symbol HDVW, by executing a match trade of HDVW stock. In addition, Kyriacou agreed to launder what the Undercover Agent represented to be the proceeds of securities fraud through the purchase and sale of artworks.
The case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Jacquelyn M. Kasulis, David Gopstein and Michael T. Keilty are in charge of the prosecution.
The Defendant:
PETER KYRIACOU
Age: 28
London, EnglandE.D.N.Y. Docket No. 18-CR-102 (S-1) (KAM)
Former Baltimore Mayor Catherine Pugh Facing 11-Count Federal Indictment for Wire Fraud and Tax-Related ChargesRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Catherine Elizabeth Pugh, age 69, of Baltimore, Maryland, on the federal charges of conspiracy to commit wire fraud, seven counts of wire fraud, conspiracy to defraud the United States, and two counts of tax evasion. The indictment was returned on November 14, 2019, and was unsealed today. Catherine Pugh is scheduled for an initial appearance and arraignment in U.S. District Court in Baltimore before U.S. District Judge Deborah K. Chasanow on November 21, 2019 at 1:00 p.m. Pugh is expected to self-surrender to the U.S. Marshals prior to the hearing on November 21st.
The guilty pleas of former Baltimore City employees Gary Brown, Jr., age 38, of Baltimore, and Roslyn Wedington, age 50, of Rosedale, Maryland, were also unsealed today. On November 13, 2019, Brown pleaded guilty to conspiracy to commit wire fraud, to two counts of conspiracy to defraud the United States, and to filing a false tax return. That same day, Wedington pleaded guilty to conspiracy to defraud the United States and to five counts of filing a false tax return.
The indictment and guilty pleas were announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
“Our elected officials must place the interests of the citizens above their own,” said United States Attorney Robert K. Hur. “Corrupt public employees rip off the taxpayers and undermine everyone’s faith in government. The U.S. Attorney’s Office and our law enforcement partners will zealously pursue those who abuse the taxpayers’ trust and bring them to justice.”
“The people of Maryland expect elected officials to make decisions based on the public's best interests, not to abuse their office for personal gain,” said Special Agent in Charge Jennifer Boone of the FBI's Baltimore Division. “The indictment alleges that Catherine Pugh betrayed the public's trust. The FBI will continue to diligently work to detect fraud and corruption and hold those who violate this trust accountable.”
“Public officials should be a role model for the citizens they serve - adhering to the highest of standards,” said IRS-CI SAC Kelly Jackson. “These individuals chose to evade payment of their fair share of taxes instead, actions for which they must be held accountable in order to preserve public trust and confidence.”
According to Pugh’s 11-count indictment, from approximately 2007 through 2016 Pugh served in the Maryland State Senate, where she served on various legislative committees, including the Senate Health Committee. In 2011, Pugh ran an unsuccessful campaign to be mayor of Baltimore. In September 2015, Pugh again ran for mayor of Baltimore, and won, becoming Mayor on December 6, 2016. Pugh owned Healthy Holly, LLC, a company formed in Maryland on January 14, 2011, and used to publish and sell children’s books she had written. Pugh also owned Catherine E. Pugh and Company, Inc., a marketing and public relations consulting company organized in Maryland in 1997. The principal address for both companies was Pugh’s residence in Baltimore. Pugh was also the sole signatory on the Healthy Holly and Pugh Company bank accounts. Pugh did not maintain a personal bank account, using her business bank accounts for personal and business finances.
As stated in the indictment, between June 2011 and August 2017, four Healthy Holly books were published, with each book listing “Catherine Pugh” as author. The vast majority of books published by Healthy Holly were marketed and sold directly to non-profit organizations and foundations, many of whom did business or attempted to do business with the Maryland and Baltimore City governments.
Wire Fraud Allegations
The indictment alleges that from November 2011 until March 2019, Pugh conspired with Gary Brown to defraud purchasers of Healthy Holly books in order to enrich themselves, promote Pugh’s political career, and fund her campaign for mayor. The indictment alleges that the conspirators employed several methods to defraud, including: not delivering books after accepting payments for the books; accepting payments for books to be delivered to a third party on behalf of a purchaser, then converting some or all of the purchased books to their own use without the purchaser’s or third party’s knowledge; and by double-selling books without either purchaser’s knowledge or consent. Pugh allegedly stored quantities of fraudulently obtained Healthy Holly books at various locations, including Pugh’s residence, her state legislative offices, her mayoral office, and a public storage locker used by Pugh’s mayoral campaign. The indictment alleges that Pugh used the proceeds of the sale of fraudulently obtained Healthy Holly books for her own purposes, including: to fund straw donations to Pugh’s mayoral election campaign; and to fund the purchase and renovation of a house in Baltimore City.
Conspiracy to Defraud the United States/Tax Evasion
Further, the indictment alleges that Pugh issued Healthy Holly checks payable to Brown, for the purpose of funding straw donations to the Committee to Elect Catherine Pugh. The indictment alleges that Brown cashed the checks and used the untraceable cash to fund money orders, debit cards, and personal checks in the names of straw donors totaling approximately $35,800. The straw donations purchased with the cash were allegedly then deposited into the bank account of the Committee to Elect Catherine Pugh. The indictment alleges that Pugh wrote additional Healthy Holly checks to Brown totaling $26,300, which he cashed and gave the cash to Pugh. On January 11, 2017, Brown was charged with, and ultimately convicted of, violating Maryland’s election laws for funneling $18,000 of the straw donations to Pugh’s campaign. The Committee to Elect Catherine Pugh issued five checks in the names of three of the straw donors, with a notation in the memo line on each check stating “returned contribution.” The indictment alleges that none of the straw donors received any of the returned money, and instead, at Pugh’s direction, Brown used the money to pay for his legal defense.
In addition, the indictment alleges that Pugh conspired to evade taxes on the income received from the sales of Healthy Holly books. The indictment alleges that to accomplish this, Pugh concealed from the IRS the fact that she created false business expenses to offset the income she received from the sale of books by issuing Healthy Holly checks to Brown for services and/or products purportedly supplied by his company. Pugh allegedly filed false income tax returns for 2016 and 2015, in which she underreported her income. For example, the indictment alleges that for tax year 2016 Pugh claimed her taxable income was $31,020 and the tax due was $4,168, when in fact, Pugh’s taxable income was $322,365, with an income tax due of approximately $102,444.
If convicted, Pugh faces a maximum sentence of 20 years in federal prison for the wire fraud conspiracy and for each of the seven counts of wire fraud; five years in federal prison for conspiracy to defraud the United States; and five years in federal prison for each of the two counts of tax evasion. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Brown Wire Fraud Conspiracy
According to Gary Brown’s plea agreement, from November 2011 until March 2019, he conspired with Catherine Pugh to fraudulently sell and distribute tens of thousands of Healthy Holly books. Brown admitted that over that period they executed the scheme in three ways: by selling the books, keeping the money and not delivering the books; provided books to purchasers, but later converted them to their own use at campaign events and government functions; and resold books that had previously been purchased and donated to the Baltimore City Public Schools.
Brown Conspiracy with Pugh to Defraud the United States
Further, as detailed in his plea agreement, Brown cashed checks Pugh wrote to him from the Healthy Holly account, then used the cash to fund money orders, debit cards, and personal checks in the names of straw donors, which were then submitted to the Committee to Elect Catherine Pugh. Brown also admitted that he cashed some of the Healthy Holly checks and gave the cash to Pugh. To conceal the straw-donation scheme and avoid paying taxes that might result from the scheme, Pugh and Brown provided false information to the IRS regarding the purpose of the Healthy Holly checks.
Brown and Wedington Conspiracy to Defraud the United States/Filing False Tax Returns
Brown and Wedington both admitted that they conspired to avoid tax withholdings from Wedington’s payroll checks while Wedington was the Executive Director of the Maryland Center for Adult Training (MCAT) and Brown was the Chairman of the Board of Directors. Specifically, in 2013, Wedington’s salary was garnished due to outstanding student loan debt and medical bills. In order to avoid further garnishments, Wedington asked Brown to take her “off payroll,” which meant that MCAT would no longer submit her name to the payroll service provider for the purpose of calculating taxes to be withheld from her salary. Brown agreed to the arrangement and had MCAT make electronic deposits into his personal bank account in an amount that exceeded the annual salary owed to Wedington, creating the pretense that he was doing work for MCAT as an independent contractor. Brown then wrote checks to Wedington and/or gave her cash equal to or greater than her salary, which was more than $80,000 per year. No taxes were withheld from the funds Brown paid to Wedington, nor did her salary go through Wedington’s bank account, where it could be garnished. In addition, Brown prepared fraudulent tax returns for Wedington for tax years 2013 through 2017, which did not report Wedington’s MCAT income and made a variety of false entries, resulting in refunds to which Wedington was not entitled and avoiding over $121,000 in total taxes due and owing. Brown also filed a false individual income tax return for tax year 2016 for himself, which falsely listed the $64,325 of Healthy Holly payments as business income. In addition, from 2016 through 2018, Brown worked part-time as a freelance tax preparer and charged a fee to prepare dozens of tax returns that he filed on behalf of his family, friends, and associates. Brown included false information in all of those tax returns in order to obtain larger refunds for his customers. The fraudulently obtained refunds totaled more than $100,000.
Brown faces a maximum of 20 years in federal prison for the wire fraud conspiracy. Brown and Wedington each face a maximum sentence of five years in federal prison for each count of conspiracy to defraud the United States, and three years in prison for each count of filing a false tax return. Judge Chasanow has not yet scheduled sentencing for Brown or Wedington.
United States Attorney Robert K. Hur commended the FBI and the IRS Criminal Investigation for their work in the investigation and thanked the U.S. Department of Labor - Office of Inspector General, Office of Investigations - Labor Racketeering and Fraud, the Maryland State Prosecutor’s Office, and the Baltimore City Office of Inspector General for their assistance. Mr. Hur thanked Assistant U.S. Attorneys Martin J. Clarke and Leo J. Wise, who are prosecuting the case.
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Fitchburg Woman Pleads Guilty to Drug TraffickingRead the Press Release
CONCORD - Mallory Nooks, 31, of Fitchburg, pleaded guilty in federal court to possession and distribution of cocaine, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on April 14, 2018, Nooks possessed 14 baggies of crack cocaine that she intended to distribute, after she had already distributed crack cocaine to another individual. She also possessed a Ruger LCR 38 Special, .38 caliber pistol, loaded with five rounds of ammunition in her purse.
Nooks is scheduled to be sentenced on February 25, 2019.
“Drug traffickers endanger the lives and safety of their customers as well as the general public,” said U.S. Attorney Murray. “The threat is compounded when the drug dealer is armed with a firearm. In order to maintain the safety of our citizens, we will not hesitate to pursue federal charges against drug dealers who possess or use firearms.”
"Every day, law enforcement sees the lives destroyed and families torn apart by the worst drug crisis in our country's history. All Mallory Nooks saw was a chance to make a buck," said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. "The FBI has said more often than we'd like that drugs threaten fatal consequences for all who cross their path. It is a good day for law enforcement when one less armed trafficker is free to capitalize on our communities.”
This matter was investigated by the Federal Bureau of Investigation and the Nashua Police Department. The case is being prosecuted by Assistant U.S. Attorneys Georgiana Konesky and Anna Krasinski.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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Fifteen West Side Loma Gang Members and Associates Indicted in Federal CourtRead the Press Release
BOISE – A federal grand jury indicted fifteen members and associates of the West Side Loma gang for drug trafficking and firearms crimes, U.S. Attorney Bart M. Davis announced today. The charges stem from an investigation by the Treasure Valley Metro Violent Crimes Task Force.
The charged defendants are Kristina Alvarado, 38, of Nampa; Marvin Arredondo, 30, of Parma; Vanessa Campos, 31, of Caldwell; Brooks Case, 32, of Star; Javier Deluna, 29, of Nampa; Alfredo Esparza, Jr., 48, of Nampa; Leno Esparza, 28, of Nampa; Elisa Mata, 34, of Nampa; Arturo Fuentes, 41, of Caldwell; Alex Ibarra, 21, of Homedale; Stephen Janoushek, 66, of Meridian; Lorensa Muniz, 32, of Caldwell; Miriam Murillo, 33, of Nampa; Harley Ogburn, 27, of Nampa; and Breanna Stell, 28, of Parma. All were indicted on November 13, 2019.
All fifteen defendants are charged with distribution of methamphetamine with most charged for distributing more pure amounts of methamphetamine. Arredondo is also charged with unlawful possession of a firearm and possession of an unregistered firearm. Alvarado, Case, and Stell were already in custody at Canyon County Jail. Ibarra, Mata, Murillo, and Ogburn were already in custody at Idaho Department of Correction. Arredondo, Campos, Deluna, Alfredo Esparza, Jr., Fuentes, Janoushek, and Muniz were arrested earlier this week. Leno Esparza remains at large.
Federal methamphetamine distribution charges are generally punishable by up to twenty years in prison, a fine up to $1 million, and at least three years of supervised release. Defendants charged with distributing more than five grams of pure methamphetamine face a minimum term of five years and up to forty years in prison, a fine up to $5 million, and a minimum of four years supervised release. Defendants charged with distributing more than fifty grams of pure methamphetamine face a minimum term of ten years and up to life in prison, a fine up to $10 million, and a minimum of five years supervised release.
The charges of unlawful possession of a firearm and possession of an unregistered firearm are punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release.
The Treasure Valley Metro Violent Crimes Task Force was created in 2005 and is comprised of federal, state, and local law enforcement agencies including Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Ada County Sheriff’s Office; Boise Police Department; Caldwell Police Department; Canyon County Sheriff’s Office; Meridian Police Department; Nampa Police Department; and Idaho Department of Correction. The Task Force conducts complex, long-term investigations of criminal gangs.
These cases are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership, the Canyon County Prosecuting Attorney’s Office, and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration in creating coherent regional growth. For more information, visit treasurevalleypartners.org.
An indictment is a means of charging a person with criminal activity. It is not evidence. A person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Felon Sent Back to Prison for Four More Years After Possessing Firearm Three Weeks After Being Paroled from State CustodyRead the Press Release
A man who illegally possessed a firearm was sentenced today to four years in federal prison.
Christopher Forbes, age 27, from Cedar Rapids, Iowa, received the prison term after a June 13, 2019, guilty plea to being a felon in possession of a firearm.
Evidence during the case showed police located a firearm in Forbes’ vehicle after conducting a traffic stop. Forbes was on parole at the time, having been convicted of first degree burglary, assault on a peace officer with a dangerous weapon, eluding, and domestic abuse assault.
Forbes was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Forbes was sentenced to 48 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Forbes is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case is being prosecuted by Assistant United States Attorney Lisa C. Williams and investigated by the Cedar Rapids Safe Streets Task Force. The task force is composed of representatives from the Federal Bureau of Investigation and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-0012.
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Federal Indictment Charges Former Vice Chancellor of City Colleges of Chicago with Devising Procurement Fraud SchemeRead the Press Release
CHICAGO — A former vice chancellor for City Colleges of Chicago obtained payments, some in the form of kickbacks, from vendors in exchange for steering them contracts for community canvassing and flyer distribution services, according to an indictment returned in federal court in Chicago.
SHAROD GORDON, 45, of Oak Park, is charged with 16 counts of wire fraud. Gordon was employed by City Colleges of Chicago as District Director of Community Affairs, then as Associate Vice Chancellor of Community Relations and Student Recruitment, and most recently as Vice Chancellor of Legislative and Community Affairs.
The indictment alleges that some of the vendor-companies were formed by City Colleges employees or associates of Gordon for the purpose of applying for the contracts. In some instances, the work was never performed even though invoices were submitted and City Colleges paid them, the charges allege. Upon receipt of the payments, representatives of several vendor-companies gave a portion of the payments to Gordon, directly or indirectly, and some of those payments were in the form of kickbacks, the charges allege. The indictment seeks forfeiture of approximately $349,500 in criminally derived proceeds from Gordon and seven co-defendants.
The indictment was returned Tuesday in U.S. District Court in Chicago. Arraignments have not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI. The Office of Inspector General for the City Colleges of Chicago provided substantial assistance in the investigation. The government is represented by Assistant U.S. Attorneys Georgia N. Alexakis and Timothy J. Storino.
In addition to Gordon, the indictment charges seven other defendants with participating in the scheme:
- ANGELIQUE ORR, 47, of Berwyn, is charged with five counts of wire fraud. Orr was married to Gordon from 1998 to 2013, the indictment states.
- KRYSTAL STOKES, 39, of North Bay Village, Fla., is charged with two counts of wire fraud and one count of making a false statement to the FBI. Stokes previously worked at City Colleges as a community outreach worker.
- MARVA SMITH, 37, of Chicago, is charged with two counts of wire fraud. Smith worked at City Colleges as a liaison to governmental agencies.
- TIFFANY MCQUEEN, 43, of Naperville, is charged with two counts of wire fraud and one count of making a false statement to the FBI. McQueen was an alleged associate of Gordon.
- NANCY VAZQUEZ, 48, of Chicago, is charged with two counts of wire fraud. Vazquez was a lobbyist who operated a lobbying and consulting firm.
- MARQUITA PAYNE, 38, of Frisco, Texas, is charged with two counts of wire fraud. Payne was an alleged associate of Gordon and the registered agent of a consulting company.
- TIFFANY CAPEL, 35, of Detroit, Mich., is charged with one count of wire fraud. Capel was an alleged associate of Gordon who operated a marketing, branding, and apparel design company.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count of wire fraud is punishable by up to 20 years in prison, while the maximum sentence for each false statement count is five years. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
Fayette County Man Indicted on Multiple Counts of Robbing a Lexington PharmacyRead the Press Release
LEXINGTON, Ky. – Michael R. McReynolds Jr., 32, of Lexington, was indicted on Wednesday by a federal grand jury, on charges related to two separate robberies of the same Lexington pharmacy, in September and October 2019.
The five-count indictment against McReynolds charges him with two counts of interference with commerce by robbery, two counts of carrying and using a firearm during a crime of violence, and one count of possession of oxycodone with the intent to distribute.
The indictment alleges that on September 27 and October 18, 2019, McReynolds stole money and controlled substances from Hubbard and Curry Pharmacy, by means of actual and threatened force, violence, and fear of injury. During each robbery, the defendant is alleged to have also brandished, carried, and used a firearm. The indictment further alleges that on October 21, 2019, the defendant possessed oxycodone with the intent to distribute.
The investigation into these offenses was conducted by agents with the DEA, in conjunction with the Lexington Police Department.
A date for McReynolds to appear in Court on the charges has not yet been scheduled. For each count of robbery, McReynolds faces a maximum sentence of 20 years and a $250,000 fine. For each count involving the firearm, McReynolds faces a maximum sentence of life and a $250,000 fine. However, any sentence following a conviction would be imposed by the Court after its consideration of the United States Sentencing Guidelines and applicable federal sentencing statutes.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Dan Dodds, Special Agent in Charge of the DEA; and Lawrence Weathers, Chief of the Lexington Police Department, jointly made the announcement.
Any indictment is an accusation only. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
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Essex County Man Charged with Distributing and Possessing Child PornographyRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was indicted today on a charge of distributing and possessing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Keith Voolgaris, 62, of Newark, is charged by indictment with one count of distributing child pornography and one count of possessing child pornography. Voolgaris was initially charged by complaint in September 2019.
According to documents filed in this case and statements made in court:
Between July 21, 2017, and Sept. 8, 2017, Voolgaris distributed and possessed at least 50 videos depicting the sexual abuse of minors, including prepubescent children. He used a “chat” website to send numerous messages to another child pornography distributor in Minnesota. Many of those messages contained links to Dropbox files that were found to contain images of child sexual abuse. A subsequent search of Voolgaris’ email accounts revealed numerous additional videos and images of child sexual abuse.
Voolgaris has prior convictions for receiving or distributing child pornography and for possession of child pornography. Accordingly, the charge of distribution of child pornography by a repeat offender carries a mandatory minimum penalty of 15 years in prison, a maximum potential penalty of 40 years in prison and a $250,000 fine. The charge of possession of child pornography depicting prepubescent children by a repeat offender carries a mandatory minimum penalty of 10 years in prison, a maximum penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Sarah A. Sulkowski of the U.S. Attorney’s Office Cybercrime Unit in Newark.
The charge and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Chester Keller Esq., Assistant Federal Public Defender, Newark
Eight Members of Fraudulent Prescription Ring in St. John the Baptist Parish SentencedRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that SHALLON DAVIS DUNMILES, together with LASHONDA MELANCON, DANYELLE TUCO, ANDREA STALKS, EBONY STEWART, CORTAZ WILLIAMS, DANIELLE ANDERSON, and WILFRED PERRILLOUX have all been sentenced after pleading guilty to charges stemming from their arrest in St. John the Baptist Parish last year for fraudulently obtaining and distributing prescription drugs using a physician’s prescription pad.
According to Court documents, DUNMILES, a former employee at a medical clinic in Laplace, and MELANCON were sentenced by District Court Judge Lance M. Africk on November 20, 2019 and October 23, 2019, respectively. DUNMILES was sentenced to 18 months of imprisonment, followed by three years of supervised release. MELANCON was sentenced to 12 months and 1 day of imprisonment, followed by three years of supervised release. Both women were sentenced after pleading guilty to conspiracy to possess and possess with the intent to distribute illicitly obtained prescription medications, including dextroamphetamine/Adderall, a Schedule II drug controlled substance, and promethazine with codeine, a Schedule V drug controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1) and 846. The investigation revealed that during the course of the conspiracy, DUNMILES wrote approximately 148 fraudulent prescriptions using her former employer’s prescription pad. Together with MELANCON, DUNMILES distributed the prescriptions, often in exchange for money.
PERRILLOUX, STALKS, STEWART, TUCO, WILLIAMS, and ANDERSON were all sentenced previously after pleading guilty to conspiracy to acquire or obtain possession of the prescription medication by misrepresentation, fraud, forgery, deception, or subterfuge, in violation of Title 21, United States Code, Sections 843(a) and 846. The investigation revealed that these individuals were all involved with obtaining the fraudulent prescriptions from DUNMILES and MELANCON. PERRILLOUX was sentenced to 10 months imprisonment, followed by a one-year term of supervised release. STALKS, STEWART, TUCO, WILLIAMS, and ANDERSON were all sentenced to a three-year term of probation.
U.S. Attorney Peter G. Strasser also praised the work of the St. John the Baptist Parish Sheriff’s Office Special Operations Division and the Drug Enforcement Administration’s Tactical Diversion Squad (TDS) in investigating this matter. Assistant United States Attorney Shirin Hakimzadeh is in charge of the prosecution.
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Eight Defendants Charged as a Result of Joint Federal and State Investigation of a Drug Trafficking Organization in BurlingtonRead the Press Release
DAVENPORT, Iowa – Eight defendants are facing federal criminal charges as part of a multi-year joint federal and state investigation of a large drug trafficking organization that operated out of Burlington, Iowa. Five of the federal defendants were arrested yesterday, November 19, 2019. Those arrested will make their initial appearance in federal court at the United States Courthouse, in Davenport, on Wednesday, November 20, 2019.
The charges were announced by Marc Krickbaum, United States Attorney for the Southern District of Iowa; Kristi Johnson, Special Agent-in-Charge of the Omaha Field Office of the Federal Bureau of Investigation; Lisa Schaefer, Des Moines County, Iowa, Attorney; Dennis Kramer, Chief of Police of the Burlington, Iowa, Police Department; and Robert Copley, Chief of Police of the Quincy, Illinois, Police Department.
The charges stem from a long-term investigation conducted by numerous federal, state, and local law enforcement agencies including: the Federal Bureau of Investigation; Southeast Iowa Narcotics Taskforce; Burlington, Iowa, Police Department; Des Moines County, Iowa, Sheriff’s Office; West Central Illinois Taskforce; Quincy, Illinois, Police Department; Drug Enforcement Administration; Iowa Division of Narcotics Enforcement; Henry County, Iowa, Sheriff’s Office; Mt. Pleasant, Iowa, Police Department; West Burlington, Iowa, Police Department; Keokuk, Iowa, Police Department; Ft. Madison, Iowa, Police Department; Lee County, Iowa, Sheriff’s Office; Iowa City, Iowa, Police Department; Johnson County, Iowa, Sheriff’s Office; North Liberty, Iowa, Police Department; Coralville, Iowa, Police Department; Muscatine County, Iowa, Sheriff’s Office; Louisa County, Iowa, Sheriff’s Office; Washington County, Iowa, Sheriff’s Office; Bettendorf, Iowa, Police Department; Illinois State Police; Monmouth, Illinois, Police Department; Macomb, Illinois, Police Department; Galesburg, Illinois, Police Department; Adams County, Illinois, Sheriff’s Office; and Fulton County, Illinois, Sheriff’s Office.
Eight defendants were charged by complaint in the United States District Court for the Southern District of Iowa, stemming from a years-long investigation of this drug trafficking organization. Those arrested include KENDRICK PAGE, BREON RAQUON ARMSTRONG, LAMAR HARRIS, TRISTAN DAVIS, and JAMES LEWIS MILES, Jr. The identities of those who have not yet been arrested remain sealed at this time. Additionally, search warrants were executed at multiple locations in the Southern District of Iowa, Northern District of Illinois, and Northern District of Texas. Others involved in this drug trafficking organization have previously been arrested in both the Southern District of Iowa, and the Central District of Illinois.
The charges in the complaints carry maximum penalties of between 40 years and life imprisonment. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines. There is no parole in the federal court system.
The public is reminded that charges contain only accusations and are not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
These cases are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
ADDENDUM
In addition to the defendants arrested this week, the United States Attorney’s Office for the Southern District of Iowa has indicted 18 individuals in the last year from the Burlington, Iowa, area. To date, 16 defendants have been arrested and the names, case numbers, charges and penalties are outlined below. The other cases remain sealed pending arrest.
1. John Patrick Auwaerter Case Number 3:18-cr-101
Title 21, U.S.C. § 846 – Conspiracy to Distribute Controlled Substances
Maximum Penalty is life imprisonment; mandatory minimum of 10 yearsTitle 21, U.S.C. § 841(a)(1), 841(b)(1)(B) – Possession of Methamphetamine with Intent to Distribute
Maximum Penalty is 40 years; mandatory minimum of 5 yearsTitle 21, U.S.C. § 841(a)(1), 841(b)(1)(A) – Possession of Methamphetamine with Intent to Distribute
Maximum Penalty is life imprisonment; mandatory minimum of 10 yearsTitle 18, U.S.C. § 924(c)(1)(A) – Carry a Firearm During and In Relation to a Drug Trafficking Crime
Maximum Penalty is life imprisonment; mandatory minimum of 5 yearsTitle 18, U.S.C. § 922(g)(1) – Felon in Possession of a Firearm and Ammunition
Maximum Penalty is 10 years in custodyOn September 4, 2019, the Honorable Michael J. Melloy, Senior United States 8th Circuit Judge, sentenced Auwaerter to 180 months of imprisonment and five years of supervised release.
2. Michael Lee Davis Case Number 3:18-cr-102
Title 21, U.S.C. § 841(a)(1), 841(b)(1)(A) – Possession of Methamphetamine With Intent to Deliver
Maximum Penalty is life imprisonment; mandatory minimum of 10 yearsTitle 18, U.S.C. § 924(c)(1)(A) – Carry a Firearm During and In Relation to a Drug Trafficking Crime
Maximum Penalty is life imprisonment; mandatory minimum of 5 yearsTitle 18, U.S.C. § 922(g)(1) – Felon in Possession of a Firearm
Maximum Penalty is 10 years in custodyOn September 25, 2019, the Honorable John A. Jarvey, Chief United States District Court, sentenced Davis to 120 months of imprisonment and 5 years of supervised release.
3. Rachel Marie Horn Case Number 3:19-cr-6
Title 21, U.S.C. § 841(a)(1), 841(b)(1)(B) – Distribution of a Controlled Substance
Maximum Penalty is 40 years in custody; mandatory minimum of 5 yearsTitle 21, U.S.C. § 841(a)(1), 841(b)(1)(A) – Possession with Intent to Distribute a Controlled Substance
Maximum Penalty is life imprisonment; mandatory minimum of 10 yearsTitle 18, U.S.C. § 922(g)(1) – Felon in Possession of a Firearm
Maximum Penalty is 10 years in custodyOn November 14, 2019, the Honorable John A. Jarvey, Chief United States District Court, sentenced Horn to 240 months of imprisonment and 5 years of supervised release.
4. Tyreon Leseanjea Woodard Case Number 3:19-cr-10
Title 18, U.S.C. § 922(g)(1) – Felon in Possession of a Firearm
Maximum Penalty is 10 years in custodyOn September 25, 2019, the Honorable John A. Jarvey, Chief United States District Court, sentenced Woodard to 70 months of imprisonment and 3 years of supervised release.
5. Gerald Victor Terry Case Number 3:19-cr-19
Title 21, U.S.C. § 841(a)(1), 841(b)(1)(A) – Distribution of a Controlled Substance
Maximum Penalty is life imprisonment; mandatory minimum of 10 years6. Pamela Sue Hester Case Number 3:19-cr-41
Title 21, U.S.C. § 841(a)(1), 841(b)(1)(C) – Distribution of a Controlled Substance
Maximum Penalty is 40 years in custody; 5 year mandatory minimumTitle 21, U.S.C. § 841(a)(1), 841(b)(1)(A) – Possession With Intent to Distribute a Controlled Substance
Maximum Penalty is life imprisonment; mandatory minimum of 10 years7. Michael Antonio Davison Case Number 3:19-cr-43
Title 21, U.S.C. § 846 – Conspiracy to Distribute a Controlled Substance
Maximum Penalty is life in custody; mandatory minimum of 10 yearsTitle 21, U.S.C. § 841(a)(1), 841(b)(1)(A) – Possession With Intent to Distribute a Controlled Substance
Maximum Penalty is life in custody; mandatory minimum of 10 years8. Norris Davison Case Number 3:19-cr-43
Title 21, U.S.C. § 846 – Conspiracy to Distribute a Controlled Substance
Maximum Penalty is life in custody; mandatory minimum of 10 yearsTitle 21, U.S.C. § 841(a)(1), 841(b)(1)(A) –Distribution of a Controlled Substance
Maximum Penalty is life in custody; mandatory minimum of 10 years9. Wilbert James Bowers Case Number 3:19-cr-43
Title 21, U.S.C. § 846 – Conspiracy to Distribute a Controlled Substance
Maximum Penalty is life in custody; mandatory minimum of 10 years10. Justin Harold Love Case Number 3:19-cr-43
Title 21, U.S.C. § 846 – Conspiracy to Distribute a Controlled Substance
Maximum Penalty is life in custody; mandatory minimum of 10 years11. Anthony Collins Case Number 3:19-cr-46
Title 21, U.S.C. § 841(a)(1), 841(b)(1)(A) – Distribution of a Controlled Substance (three counts)
Maximum Penalty is life in custody; mandatory minimum of 10 years12. Demetrius Ernest Alexander Case Number 3:19-cr-66
Title 18, U.S.C. § 922(g)(1), 922(g)(3) – Prohibited Person in Possession of a Firearm
Maximum Penalty is 10 years in custodyTitle 21, U.S.C. § 844(a) – Possession of a Controlled Substance
Maximum Penalty is 1 year in custody13. Charles Lester Warner Case Number 3:19-cr-87
Title 18, U.S.C. § 841(a)(1), 841(b)(1)(A) – Possession With Intent to Distribute a Controlled Substance
Maximum Penalty is life imprisonment; mandatory minimum of 10 years14. Lloyd Davenport Case Number 3:19-cr-91
Title 21, U.S.C. § 841(a)(1), 841(b)(1)(A) – Distribution of a Controlled Substance
Maximum Penalty is life imprisonment; mandatory minimum of 10 yearsTitle 21, U.S.C. § 841(a)(1), 841(b)(1)(A) – Possession with Intent to Distribute a Controlled Substance
Maximum Penalty is life imprisonment; mandatory minimum of 10 years15. Johnathan Keith Sneed Case Number 3:19-cr-99
Title 18, U.S.C. § 922(g)(1) – Felon in Possession of a Firearm
Maximum Penalty is 10 years in custody16. Allen Julian Fields, Jr. Case Number 3:19-cr-117
Title 18, U.S.C. § 841(a)(1), 841(b)(1)(A) – Possession With Intent to Distribute a Controlled Substance
Maximum Penalty is life imprisonment; mandatory minimum of 10 yearsDorchester, Massachusetts Man Pleads Guilty to Transportation of a Minor for the Purpose of Sexual ActivityRead the Press Release
CONCORD - Dagoberto Duarte, 22, of Dorchester, Massachusetts pleaded guilty in federal court on Tuesday to transportation of a minor for the purpose of sexual activity, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on June 10, 2018, the Londonderry Police Department was informed that a 13-year-old female was missing. Officers responded to her residence to investigate. During the investigation, the Londonderry officers were told that the minor female had been communicating with a man online and that they had made plans to meet.
The mother of the minor female received a call from Duarte telling her that he had taken her daughter to Boston. A law enforcement officer spoke with Duarte who said the minor female had been dropped off at a bus station. Boston police officers were notified and officers were able to locate the minor female.
On July 3, 2018, Duarte was arrested by police officers in Boston. Duarte later admitted that he had picked up the minor female in New Hampshire and driven her to Massachusetts, where they engaged in sexual activity.
Duarte is scheduled to be sentenced on February 26, 2020. A native of Honduras, Duarte faces likely removal from the United States as a result of this conviction.
“The internet has made it possible for predators to target children in their own homes,” said U.S. Attorney Murray. “Protecting young people against this type of victimization is a top priority for law enforcement. When predators seek to take advantage of innocent children, we will not hesitate to bring federal charges against them. I commend the work of the law enforcement officers in this case for their quick response to this situation and their efforts to bring this predator to justice.”
“It is incomprehensible that anyone would seek to take advantage of a child’s vulnerability like Duarte has done in this case,” said Jason J. Molina, acting special agent in charge for HSI Boston. “HSI and our law enforcement partners are committed to arresting anyone who preys on the innocence of a child and those predators will face justice for their abhorrent criminal acts.”
This matter was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Londonderry Police Department, and the Boston Police Department. The case is being prosecuted by Assistant U.S. Attorney Georgiana Konesky.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Dominican National Involved in Drug Importation Schemes Sentenced to 12 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ARRINSON DE LA CRUZ, 40, a citizen of the Dominican Republic, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to 144 months of imprisonment for his role in the large-scale importation of cocaine and other controlled substances into the U.S.
According to court documents and statements made in court, in 2016, De La Cruz, who was residing in Wolcott, Connecticut, on a tourist visa, conspired with others to transport approximately 1600 kilograms of cocaine from South America to the U.S. On August 6, 2016, a private jet, which was registered in the U.S., flew from the Dominican Republic to Venezuela where the cocaine was to be loaded onto the jet. From there, the jet was to fly Honduras where the cocaine would be loaded onto trucks for transport through Mexico into the U.S. De La Cruz had worked at an airport in the Dominican Republic and helped to coordinate the travel of the jet through the airport uninterrupted. A fake flight plan filed with Dominican authorities reported that the plane was traveling to Brazil. Ultimately, the plane crash-landed in Venezuela, the crew evaded capture by Venezuelan authorities, and the cocaine was diverted back to Colombia.
After the collapse of the cocaine importation scheme, De La Cruz attempted to coordinate additional shipments of drugs into the U.S, and also contacted others in and around Connecticut to sell heroin, cocaine and 2C-B, a synthetic psychedelic drug.
On September 18, 2016, De La Cruz was arrested in Milford, Connecticut, after a search of a car he was traveling in revealed 2C-B that De La Cruz intended to distribute in Massachusetts.
In November 2016 and December 2017, while he was released on bond, De La Cruz continued to conspire to distribute cocaine. He has been detained since his arrest on December 20, 2017.
On March 27, 2019, De La Cruz pleaded guilty to one count of conspiracy to possess with intent to distribute, on board an aircraft registered in the U.S., five kilograms or more of cocaine; one count of possession with intent to distribute 2C-B, and one count of conspiracy to possess with intent to distribute 500 grams or more of cocaine.
This investigation was conducted by the Drug Enforcement Administration New Haven Task Force and the Wolcott Police Department. The DEA New Haven Task Force includes participants from the U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia, Meriden, Derby, Middletown, Naugatuck and Waterbury Police Departments.
The case was prosecuted by Assistant U.S. Attorney Rahul Kale.
Dixon Man Sentenced to Prison for Federal Drug and Gun ViolationsRead the Press Release
DAVENPORT, Iowa - United States Attorney Marc Krickbaum announced on November 19, 2019, Jamie Allen Fulton, age 51, was sentenced by United States District Court Judge Stephanie M. Rose for Conspiracy to Deliver Methamphetamine and Felon in Possession of a Firearm. Fulton was sentenced to 72 months in prison, to be followed by a term of supervised release of four years. Fulton was also ordered to pay $200 to the Crime Victims’ Fund.
Fulton pleaded guilty to the offenses on July 26, 2019, and admitted that he conspired with others from at least January 2017 and continuing until October 24, 2018, to distribute methamphetamine. As part of the conspiracy Fulton sold methamphetamine twice during an undercover operation. A search warrant was executed at Fulton’s residence, and Fulton was found in possession of distribution amounts of methamphetamine and a loaded Kel-Tec, nine-millimeter pistol. Fulton has prior federal felony convictions for Conspiracy to Manufacture Methamphetamine and Possession of a Sawed-Off Shotgun, both of which caused Fulton to be prohibited from legally possessing firearms.
This matter was investigated by the Scott County Sheriff’s Office - Special Operations Unit and the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
District Man Pleads Guilty to Armed KidnappingRead the Press Release
WASHINGTON – Andre Allen, 21, of Washington, D.C., pled guilty today for his role in an armed kidnapping and robbery that began in the District of Columbia and continued into Maryland, announced U.S. Attorney Jessie K. Liu, Timothy M. Dunham, Special Agent in Charge, Criminal Division, FBI Washington Field Office, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Allen pled guilty before the Honorable Dabney L. Friedrich in the U.S. District Court for the District of Columbia, to one count of kidnapping. He faces a sentence of up to life in prison and is scheduled to be sentenced by Judge Friedrich on March 13, 2020.
The government’s evidence established that just before midnight on June 3, 2018, the victims were standing on a sidewalk located just south of Lincoln Park in Capitol Hill when the defendant, wearing a mask covering the lower half of his face, approached the victims brandishing a firearm. Allen demanded money from the victims and searched the victims and their luggage before forcing them at gunpoint into a stolen black Audi sedan.
After the victims were forced into the stolen Audi, Allen then drove into Maryland and forced them to withdraw money from an ATM located in Clinton, Maryland, in the early hours of June 4, 2018. After the victims had provided money to the defendant, he dropped them off in a dimly-lit area where they were able to run to a nearby laundromat and call for help.
Shortly after dropping the victims off, Allen then attempted to use one of the victim’s ATM cards at a gas station in Temple Hills, Maryland. Allen later contacted an electronics resale store attempting to sell a laptop belonging to one of the victims.
This case was investigated by the Metropolitan Police Department, the Washington Field Office’s Violent Crime Safe Streets Task Force and the Prince George’s County Police. The Violent Crime Task Force is charged with investigating and bringing to justice the most egregious violent criminal actors within the District of Columbia and is composed of FBI Agents working cooperatively with MPD and other Capital Region law enforcement agencies.
In announcing the plea, U.S. Attorney Liu, Special Agent in Charge Dunham, and Chief Newsham, commended the work of the FBI Agents, MPD officers, and Prince George’s County police officers who investigated the armed kidnapping. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Laura Crane, Paralegal Specialist Rommel, and Legal Assistant Peter Gaboton.
Defendant Forfeits $97,600 and Pleads Guilty to Gambling ChargeRead the Press Release
WICHITA, KAN. - A Wichita man pleaded guilty today to a federal gambling charged and agreed to forfeit $97,600 derived from gambling proceeds, U.S. Attorney Stephen McAllister said. He was sentenced today to 12 months on supervised federal probation.
Johnny Steven, 41, Wichita, Kan., pleaded guilty to being an accessory after the fact to the unlawful transmission of wagering information. In his plea, Steven admitted he acted in cooperation with co-defendant Daven Flax, who was conducting illegal private poker games in Wichita.
Participants were notified via text messaging about the games. The texts also contained information about payments or collections of money. After games, Steven concealed the involvement of Flax and others by hiding handwritten ledgers or computerized records detailing gambling credits, earnings and obligations of the gambling business.
McAllister commended the FBI, the Wichita Police Department, the Internal Revenue Service, Assistant U.S. Attorney Mona Furst and Assistant U.S. Attorney Aaron Smith for their work on the case.
Daytona Beach Member of Cocaine Trafficking Conspiracy Sentenced to More Than Nine YearsRead the Press Release
Orlando, Florida – U.S. District Judge G. Kendall Sharp today sentenced Benjamin Green Robinson (32, Daytona Beach) to nine years and two months in federal prison for conspiracy to possess with the intent to distribute more than 500 grams of cocaine. A federal jury found Robinson guilty on August 9, 2019.
According to testimony and evidence presented at trial, in January 2016, Robinson and three co-conspirators arranged for multiple shipments of cocaine to be sent through the U.S. Postal Service (USPS) from California. During the investigation, the FBI and the USPS seized three of the packages, each containing two kilograms of cocaine hidden inside tubs of protein powder. Law enforcement also identified five additional shipments that the conspirators had successfully shipped through the mail. In 2016, during the month of January, Robinson and his conspirators were responsible shipping 14 kilograms of cocaine through mail, estimated to be worth a total of $490,000.
Two of Robinson’s co-conspirators, Dondi Kentrail Freeney and Telvin Williams, previously pleaded guilty for their roles in the conspiracy. They were sentenced to seven years and six months in federal prison and five years in federal prison, respectively. Legal proceedings against a fourth individual, Antonio Chandler, are ongoing.
This case was investigated by the Federal Bureau of Investigation, with assistance from the U.S. Postal Inspection Service, the Lake County Sherriff’s Office, and the Volusia Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Dana E. Hill.
Colorado Business Owner Convicted in $7 Million Biodiesel Tax Credit Fraud SchemeRead the Press Release
A federal jury in Denver, Colorado, found Martin Fields guilty yesterday of conspiracy to defraud the United States, conspiracy to commit money laundering, making false claims against the United States, and money laundering, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to the evidence presented at trial, Fields, along with Matthew Taylor, Calvin Glover, and others, filed false claims for tax credits under a federal program that encourages the production and use of renewable fuels. To accomplish the scheme, Fields and his coconspirators created a fake company, Shintan Inc., that purported to be in the business of creating renewable biodiesel fuel. From 2010 to 2013, Fields and his coconspirators filed documents with the Internal Revenue Service (IRS) claiming more than $7.2 million in tax credits for production of renewable fuel. In fact, however, Shintan produced no qualifying renewable fuel, and the documents filed with the IRS were false. To avoid detection, Fields and his coconspirators laundered the fraudulently obtained funds through bank accounts belonging to Shintan and other shell companies. As a result of the scheme, Fields personally received at least $1.8 million.
Fields’s co-conspirators, Taylor and Glover, previously pleaded guilty – Taylor to money laundering and money laundering conspiracy and Glover to conspiracy to defraud the IRS.
Sentencing is scheduled for Feb. 7, 2020. Fields faces a maximum sentence of five years in prison for conspiracy to defraud the government and for each false claim count, and 10 years in prison for money laundering conspiracy and each money laundering count. He also faces a period of supervised release, restitution and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS-Criminal Investigation and EPA Criminal Investigation Division, who conducted the investigation, and Tax Division Trial Attorneys Sarah A. Kiewlicz, and Stephen K. Moulton, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
CEO of Security Company Charged with Multimillion-Dollar Stock and Carbon Credit FraudRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Jonathan D. Larsen, the Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today the unsealing of an indictment charging ROGER RALSTON – the CEO of DirectView, Inc., a video surveillance and security company based in Florida – with wire fraud and money laundering charges relating to his role in a telemarketing scheme involving the fraudulent sale of DirectView stock and carbon credits to victims in the United Kingdom. RALSTON was arrested this morning in Orlando, Florida, and will be presented in Magistrate Court in the Middle District of Florida later today. The case is assigned to United States District Judge Jesse M. Furman.
U.S. Attorney Geoffrey S. Berman said: “As alleged, Roger Ralston preyed on retirees in the United Kingdom with promises of safe, environmentally friendly investments with big returns. The victims allegedly received nothing but worthless paper certificates in exchange for their life savings, while Ralston and his criminal associates hid the proceeds in the United States and overseas. After today, there is no more hiding for Ralston, who now faces many years in prison for his alleged crimes.”
IRS-CI Special Agent in Charge Jonathan D. Larsen said: “The elderly members of society are too often the victims of financial fraud. As alleged, Mr. Ralston defrauded these victims and then laundered the ill-gotten gains through domestic and foreign bank accounts. IRS-CI special agents will continue to follow the money around the world and prosecute those individuals who prey on the elderly.”
According to the allegations in the Indictment unsealed today in Manhattan federal court and statements made during court proceedings:[1]
At all times relevant to the charges in the Indictment, RALSTON was the CEO of DirectView Holdings, Inc. (“DirectView”), a Florida-based corporation.
From in or about 2009 up to and including in or about 2015, RALSTON and other co-conspirators engaged in a scheme to defraud victims in the United Kingdom through the sale of false, fraudulent, and materially misleading investments, and to launder the proceeds through bank accounts in the United States and foreign countries. RALSTON used the services of telemarketing call centers to identify and cold-call potential victims, who were primarily individuals residing in the United Kingdom. Many of the victims were elderly or retired. Over a series of telephone calls, the telemarketers persuaded victims to invest money under various false and misleading pretenses, including the promise of short-term, high-yield, no-risk returns, when in fact the investments were high-risk, illiquid, and in some instances, entirely fictitious. Many victims were persuaded to make additional investments under the false pretense that they would not be permitted to sell their holdings until they purchased more. In reliance on the false representations and promises, the victims wired funds to various bank accounts in the United States, including in the Southern District of New York, in the names of corporate entities controlled by RALSTON. RALSTON then mailed and emailed documents related to the fraudulent investments, including purchase contracts and investment certificates, to the victims. Victims who tried to sell their investments found they were unable to do so. The victims never received a refund on their principal or any return on their investments. In total, RALSTON’s accounts received approximately $9 million from victims.
In order to conceal the nature, location, source, ownership, and control of the proceeds of the fraudulent scheme, RALSTON regularly transferred a substantial portion of the fraud proceeds from bank accounts in the United States, including in the Southern District of New York, to overseas bank accounts, including accounts in Cyprus, Switzerland, and the United Kingdom, in the names of various shell companies.
The nature of the particular fraudulent investment vehicles being marketed to the victims changed over time. From in or about 2009 until in or about 2011, RALSTON and his co-conspirators sold DirectView stock to the victims based on telemarketers’ false representations and promises that the shares were a no-risk, short-term investment in a debt-free company, and that the shares were likely to increase over 100 percent in value in a short period of time. In contrast to what RALSTON represented to victims, DirectView’s annual report filed with the United States Securities and Exchange Commission (“SEC”) for the year ending December 31, 2010, contained dire warnings about the poor fiscal health of DirectView and the risk attendant in purchasing stock, including that the company “may be forced to cease operations” due to losses and cash flow problems, and purchasers “may find it extremely difficult or impossible to resell our shares.”
From in or about 2011 until in or about 2015, RALSTON and his co-conspirators engaged in the sale of fraudulent “carbon credits.” “Carbon credits,” which are issued as part of governmental and voluntary regulatory regimes, are permits representing the right to emit a certain number of tons of carbon dioxide into the atmosphere. “Carbon offsets,” which are tied to particular carbon dioxide emissions-reducing projects, represent a reduction in carbon dioxide emissions, and can be purchased by individuals and companies to “offset” their or third parties’ “carbon-footprints.” The victims were falsely promised that the carbon-related investments they purchased could be easily sold, carried no risk, and would yield a significant, short-term return. In fact, the carbon credits and offsets that were sold to the victims were fake, and did not represent any actual carbon credits or offsets.
* * *
RALSTON, 51, of Riviera Beach, Florida, is charged with conspiracy to commit mail and wire fraud, substantive mail fraud, and substantive wire fraud, with a penalty enhancement for telemarketing, each of which carries a maximum sentence of 30 years; conspiracy to commit money laundering and two counts of money laundering, each of which carries a maximum sentence of 20 years; and one count of engaging in monetary transactions in property derived from specified unlawful activity, which carries a maximum sentence of 10 years.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding investigative work of IRS Criminal Investigation in this case.
This case is being prosecuted by the Office’s Money Laundering and Transnational Criminal Enterprises and Complex Frauds and Cybercrime Units. Assistant U.S. Attorneys Jessica Feinstein and Olga I. Zverovich are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Bryant Man Sentenced to 25 Years in Prison for Child PornographyRead the Press Release
LITTLE ROCK—A Bryant man was sentenced today on charges of receiving and attempting to distribute images of child pornography as well as advertising and possessing those images. United States District Court Judge James M. Moody sentenced Joseph Keck, Jr., 62, to 25 years in federal prison. Cody Hiland, the United States Attorney for the Eastern District of Arkansas, and Diane Upchurch, Special Agent in Charge of the FBI Little Rock Field Office, announced today’s sentencing.
Keck was convicted following a jury trial in April of this year. In 2016, the FBI learned that someone was sharing child pornography over the internet from a residence in Bryant, Arkansas. Investigation revealed that Keck stayed at this residence when not working as a truck driver. On May 9, 2016, the defendant arrived at the residence in a white Astro van, and the FBI obtained his two laptop computers, his external hard drive, and his cell phone. Forensic examination revealed tens of thousands of pictures and videos of child pornography. Those devices also contained evidence that Keck had downloaded child pornography and saved it to his computer.
Trial testimony also indicated that Keck used a file sharing program called Gigatribe to exchange images and videos with other users. Through his twelve Gigatribe accounts, the defendant downloaded and shared tens of thousands of videos and images of child pornography. He also advertised the contents of his child pornography collection by offering his password to other Gigatribe users. Evidence at trial included Keck’s Gigatribe chat logs, in which he told other users his name was Joe, he was a truck driver, and he liked young boys ages 12-16.
“This defendant collected thousands upon thousands of videos and images of children being sexually abused,” said U.S. Attorney Hiland. “Today’s lengthy sentence means this defendant is no longer creating a market for such deplorable images that victimize the most vulnerable among us. Our office will continue to aggressively investigate and prosecute those who seek to victimize children.”
“I sincerely appreciate the time and effort our agents and Assistant United States Attorneys dedicate to investigating and prosecuting child pornography cases and protecting the children of our country,” said Special Agent in Charge Upchurch. “Keck’s sentencing demonstrates our dedication to investigating and prosecuting those who prey on our most vulnerable population.”
In addition to the prison term, Keck was sentenced to five years of supervised release following his imprisonment. The investigation was conducted by the FBI, and the case was prosecuted by Assistant United States Attorneys Kristin Bryant and Michael Gordon.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
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Appleton Sex Offender Sentenced for Possession of Child PornographyRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on November 19, 2019, Brandon T. Daul (age: 37) of Appleton, Wisconsin, was sentenced to 10 years in federal prison for possession of child pornography by District Judge William C. Griesbach.
Daul, a registered sexual offender in the State of Wisconsin based on an Outagamie County Circuit Court conviction for possession of child pornography in 2011, possessed numerous digital images and videos of child pornography, many depicting infants and toddlers.
In handing down the sentence, Judge Griesbach noted the defendant’s prior record involving crimes against children and emphasized the serious nature of the charge. He further stated his belief that a 10-year sentence served the interests of justice in this particular case. Following his release from prison, Daul will spend 10 years on supervised release. He will continue to register as a sexual offender.
This case was investigated by the U.S. Department of Homeland Security, the Wisconsin Department of Justice, Division of Criminal Investigation’s Internet Crimes Against Children (ICAC) Task Force, and the Appleton Police Department. It was prosecuted by Assistant United States Attorney Daniel R. Humble.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For Additional Information Contact:
Public Information Officer Kenneth Gales 414-297-1700
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Anchorage Brothers and Repeat Offenders Sentenced to Federal Prison for Drug TraffickingRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that Anchorage brothers and repeat drug trafficking offenders Dwayne Dollison, Jr., 37, and Kenneth Martin Douglas, 35, were each sentenced to 15-year prison sentences by U.S. District Judge Sharon L. Gleason for a drug trafficking conspiracy involving firearms. Dollison was sentenced to an additional 7 months for violating the supervised release conditions of a previous drug trafficking offense.
This case originated from a late-night traffic stop by an Alaska State Trooper (AST) in September of 2017. The stop involved two caravanning vehicles that were speeding inbound on the Parks Highway near Fairbanks. One of the vehicles belonged to Douglas and was occupied by Douglas and Dollison, and the other had been rented by the brothers and was occupied by their female companions. After finding a small amount of heroin in the passenger compartment of the rental car, AST obtained a search warrant and searched the rental car’s trunk. They found approximately 154 grams of cocaine, 44 grams of crack, 27 grams of methamphetamine, and 12 grams of heroin located in and around duffle bags that also contained two Smith & Wesson 9 mm handguns. The guns and duffle bags were subsequently tied to Dollison and Douglas by, among other things, DNA and fingerprints. One of the guns had been stolen in Wasilla.
Investigation revealed that Dollison and Douglas orchestrated the drug trafficking operation to maximize the possibility that, if caught running the drugs to Fairbanks, their female companions would be prosecuted rather than them. After the September 2017 traffic stop, Dollison also tracked down one of the woman and offered her money to claim the drugs found in the trunk of the rental car were hers.
This is Douglas’ third drug trafficking conviction and Dollison’s second. The brothers were convicted of trafficking drugs together in 2009 and were released from federal custody in 2015, following retroactive sentencing reductions.
The Alaska State Troopers (AST) with the assistance of the Federal Bureau of Investigation (FBI) and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) conducted the investigation leading to the successful prosecution of this case, which was prosecuted by Assistant U.S. Attorneys Kim Sayers-Fay and Allison O’Leary.