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Tuesday 8 October 2019
Clayton Man Sentenced to 37 Months for Illegally Possessing a FirearmRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, United States District Judge James C. Dever III sentenced SERGIO EZEQUIEL ALVEAR, 23, of Clayton, NC to 37 months’ imprisonment, followed by 3 years of supervised release.
ALVEAR was named in an indictment filed on March 6, 2019, charging him with Possession of a Firearm by a Felon and Possession with Intent to Distribute a Quantity of Heroin on December 30, 2018. On July 20, 2019, ALVEAR, with a written plea agreement, pled guilty to count one that charged Possession of a Firearm by a Felon.
According to the investigation, on December 30, 2018, deputies with the Johnston County Sheriff’s Office in Smithfield, North Carolina, attempted to conduct a traffic stop of a vehicle operated by SERGIO EZEQUIEL ALVEAR; however, ALVEAR did not pull over. ALVEAR began traveling at a high rate of speed, crossed over the center lane into the left lane, went around three vehicles, lost control of the vehicle, ran off the left side of the road into an open field, struck a fence and crashed the vehicle into a guide wire of a nearby telephone pole. Following the crash, deputies detained ALVEAR. ALVEAR informed the arresting deputies that there was a loaded firearm in the car.
A search of ALVEAR and his vehicle resulted in the seizure of a .380 caliber pistol, 7 rounds of ammunition, 7.2 grams of marijuana, 1 Xanax pill, and 19 bindles (0.38 gram) of heroin.
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. Since 2017, the United States Department of Justice has reinvigorated the PSN program and has targeted 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.
That effort has been implemented through the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement. For more information about this initiative click here: https://www.justice.gov/usao-ednc/tbnc.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Johnston County Sheriff’s Office investigated this case. Assistant United States Attorney Daniel W. Smith prosecuted the case for the government.
Chiropractor and Related Practice to Pay Nearly $100,000 to Resolve False Claims Act Liability Arising from Billing of Stivax DevicesRead the Press Release
PHILADELPHIA, PA – First Assistant United States Attorney Jennifer Arbittier Williams announced that chiropractor Ron Siscoe and his practice, Ovation Center of Integrative Medicine (“Ovation”), have agreed to pay $98,497.62 to resolve liability under the False Claims Act for the alleged improper billing of electro-acupuncture devices called Stivax and/or P-Stim. This is the second electro-acupuncture device settlement announced in this District, as part of a U.S. Attorney’s Office ongoing investigation. (The first involved Dr. Richard Frey and Physicians Alliance Ltd., and was announced on September 17, 2019).
From July 13, 2016 through August 21, 2017, Siscoe and Ovation billed Medicare for the implantation of neurostimulator electrodes, a surgical procedure usually necessitating an operating room for which Medicare reimburses thousands of dollars. However, Siscoe was not conducting that surgery. Instead, a nurse practitioner was applying a Stivax device in an office setting without surgery or anesthesia. In addition, for many of the claims at issue, Siscoe and Ovation billed the procedure using the National Provider Identification number of a physician who did not actually perform or supervise the procedure.
Stivax is an electric acupuncture device that, pursuant to manufacturer’s instructions, is affixed behind a patient’s ear using an adhesive. Needles are inserted into the patient’s ear and affixed using another adhesive. Once activated, the device provides intermittent stimulation by electrical pulses. It is a single-use, battery-powered device designed to be worn for several days until its battery runs out, at which time the device is thrown away. Medicare does not reimburse for acupuncture or for acupuncture devices such as Stivax, nor does Medicare reimburse for it as a neurostimulator or as implantation of neurostimulator electrodes. Other brand names for this device include P-Stim, NeuroStim, ANSiStim, E-Pulse, and NSS-2 Bridge.
On May, 17, 2018, SafeGuard Services LLC, the Northeastern Unified Program Integrity Contractor (“UPIC”) of Medicare, provided Ovation with notice that it was initiating a post-payment medical review of certain of Ovation’s claims for Stivax services. In response, Ovation conceded that the Stivax claims were inappropriate and thus agreed to make voluntary repayment to Medicare for those claims the UPIC had identified.
“We said it in September and say it again now: acupuncture devices may not be billed as surgically implanted neurostimulators,” said First Assistant U.S. Attorney Williams. “Medicare paid thousands of dollars because of the alleged improper billing alleged here, which harms American taxpayers. We appreciate Ovation’s willingness to promptly negotiate a resolution in this matter.”
Williams continued, “We would encourage anyone who may have been involved in P-Stim false billing to come forward voluntarily and self-disclose the misconduct. As this second P-Stim settlement in just the last month shows, we are continuing to work closely with our partners at CMS’s Center for Program Integrity, the Department of Health and Human Services Office of Inspector General, and sister U.S. Attorney’s Offices around the country to hold accountable any other providers who inappropriately billed this device and any product distributors or marketers who may have architected or carried out such a billing scheme.”
“Every dollar saved is critical to the sustainability of our Medicare program and the needs of our beneficiaries,” said Centers for Medicare and Medicaid Services Administrator Seema Verma. “We thank our partners at the Department of Justice and Department of Health and Human Services Office of Inspector General for working hard with us to identify, investigate, and eliminate waste, fraud and abuse in our federal healthcare programs.”
“Accurately billing for services provided to Medicare beneficiaries is required of all health care providers,” said Maureen R. Dixon, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of the Inspector General. “HHS-OIG, CMS’s Center for Program Integrity, and the U.S. Attorney’s Office will continue to evaluate and pursue inaccurate billings of P-Stim and similar devices.”
The settled civil claims are allegations only. There has been no determination of civil liability. This case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General. It was handled by Assistant U.S. Attorney Matthew E. K. Howatt, Civil Chief Gregory B. David, and Auditor Dawn Wiggins.
Charles City Man with Multiple Previous Drug Offenses Sentenced to Federal Prison for Selling MethamphetamineRead the Press Release
Alonzo Henderson, age 45, from Charles City, Iowa, was sentenced to 25 years in federal prison on October 4, 2019, after an April 19, 2019, guilty plea to conspiracy to distribute a controlled substance.
In Henderson’s plea agreement, he admitted that on December 1, 2017, he was in possession of a total of $65,500 in cash proceeds recovered from his backpack and his residence and over 500 grams of methamphetamine. Henderson admitted that on May 17, 2018, officers searched his residence again and recovered $106,572 in drug proceeds and over 5.5 kilograms of (pure) methamphetamine. Henderson had previously been convicted in five felony drug trafficking cases in state court. Henderson also has multiple assault convictions.
Henderson was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Henderson was sentenced to 300 months’ imprisonment. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system. Henderson is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorneys Emily K. Nydle and Justin Lightfoot and was investigated by the Federal Bureau of Investigation, the Iowa Division of Narcotics Enforcement, the Tri-County Drug Enforcement Task Force, the Waterloo Police Department, and the Black Hawk County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-cr-2066.
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Centralia, Missouri Police Officer Charged with Engaging in Illicit Sexual Conduct with a MinorRead the Press Release
St. Louis – Clint Baer, 41, of Centralia, Missouri, was charged in a federal complaint with using interstate commerce for the purpose of engaging in illicit sexual conduct with a minor.
According to the complaint, Clint Baer is employed as a police officer with the Centralia Police Department located in Centralia, Missouri.
In March 2019, Baer contacted an individual he believed was the mother of a 14-year-old girl through the social networking site FetLife. FetLife is a website with an app that serves people interested in sexual fetishes. This site allows users to create a profile, search a directory of fetishes, join various fetish-themed groups, and conduct private chats with other users. Baer contacted the individual he believed was the mother of the 14-year-old girl in the FetLife incest group. In reality, Baer was speaking with an undercover FBI agent.
Over the course of months, Baer exchanged sexually detailed and explicit text messages and phone calls, via FetLife and Kik messenger, with the undercover agent. In Baer’s sexually explicit messages, he expressed his desire to engage in sexual activity with the 14-year old girl as well as the mother.
On October 1, 2019, Baer contacted the undercover agent, believing he was speaking with the mother of the 14-year-old girl, and set up a time and location to have sexual activity with the mother of the child and the 14-year-old girl. On October 7, 2019, Baer travelled from Centralia, Missouri, to Wentzville, Missouri, for the purpose of engaging in sexual activity with both. Baer was arrested in Wentzville. Baer is currently in federal custody.
Charges set forth in the Complaint are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The Federal Bureau of Investigation and the Saint Charles Police Department are investigating this case. Assistant United States Attorney Dianna Collins is prosecuting the case.
California Real Estate Developer Convicted of Making Conduit Contributions in Two U.S. Congressional CampaignsRead the Press Release
Today, a federal jury found an Oakland-area real estate developer guilty for funneling tens of thousands of dollars through straw donors into two consecutive congressional campaigns for a member of the U.S. House of Representatives.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, United States Attorney David L. Anderson for the Northern District of California and Special Agent in Charge John F. Bennett of the FBI’s San Francisco Field Office made the announcement.
After a 10-day trial, James Tong, 74, of Fremont, California, was found guilty of two counts of making conduit contributions. According to the evidence presented at trial, in 2012 and 2013 Tong used two primary straw donors as recruiters for his conduit scheme. Tong leveraged financial obligations and the implied loss of business opportunities to induce these individuals to distribute cash in the community to be donated to the initial and reelection campaigns of a candidate who was running for office in the U.S. House of Representatives. The network of straw donors included dozens of conduits who agreed to write checks in exchange for a commensurate amount of cash sourced from Tong. Tong provided envelopes of cash to the two intermediaries and directed them to reimburse individuals for their contributions. Tong also directed an intermediary to conceal the scheme by instructing the conduits not to deposit the cash and later directed the intermediary to withhold information from the FBI after he was interviewed.
Sentencing has been scheduled for Dec. 13.
The FBI conducted the investigation. Trial Attorneys Amanda R. Vaughn and Rebecca G. Ross of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney S. Waqar Hasib of the Northern District of California prosecuted the case.
California Real Estate Developer Convicted of Making Conduit Contributions in Two U.S. Congressional CampaignsRead the Press Release
OAKLAND – A federal jury found Oakland area real estate developer James Tong guilty for funneling tens of thousands of dollars through straw donors into two consecutive congressional campaigns for a member of the U.S. House of Representatives, announced United States Attorney David L. Anderson, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, and Special Agent in Charge John F. Bennett of the FBI’s San Francisco Field Office. The verdict came down today after an 8-day trial before the Hon. Jon S. Tigar, United States District Judge.
Tong, 74, of Fremont, Calif., was found guilty of two counts of making contributions to a federal campaign in the name of other individuals. According to the evidence presented at trial, in 2012 and 2013 Tong used two primary straw donors as recruiters for his scheme. Tong gave thousands of dollars in cash to his chosen middlemen and instructed them to recruit straw donors to write checks to a candidate who was running for office in the U.S. House of Representatives. Tong induced the individuals to distribute cash in the community to be donated to the initial and reelection campaigns of the candidate. The network of straw donors included dozens of conduits who agreed to write checks in exchange for a commensurate amount of cash sourced from Tong. Tong provided envelopes of cash to the two intermediaries and directed them to reimburse individuals for their contributions. Tong also directed an intermediary to conceal the scheme by instructing the conduits not to deposit the cash and later directed the intermediary to withhold information from the FBI after he was interviewed. Evidence at trial demonstrated that members of the campaign, including the candidate, were unaware of the defendant’s illegal contribution scheme.
On August 31, 2017, a federal grand jury indicted Tong charging him with two counts of making and causing campaign contributions in the name of another, in violation of 52 U.S.C. §§ 30122 and 30109(d)(1)(D). The jury found Tong guilty of both counts.
Judge Tigar scheduled Tong’s sentencing for Dec. 13. Tong faces a maximum statutory penalty of two years in prison and 1000% of the amount involved in the violation for each count.
The FBI conducted the investigation. Trial Attorneys Amanda R. Vaughn and Rebecca G. Ross of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney S. Waqar Hasib of the Northern District of California prosecuted the case.
Belgian National Pleads Guilty to Scam Targeting Charities and Law FirmsRead the Press Release
BOSTON – A Belgian man pleaded guilty today in federal court in Boston to charges that he participated in an e-mail scam that used counterfeit cashier’s checks to defraud charities and law firms.
Aref Zokita Said, 37, of Belgium, pleaded guilty to eight counts of wire fraud and conspiracy to commit wire fraud. U.S. District Court Judge Douglas P. Woodlock scheduled sentencing for Jan. 10, 2019.
Beginning no later than August 2013, Said and his co-conspirators defrauded law firms and non-profits, including charities, by sending them fraudulent cashier’s checks and convincing them to wire money to members of the scheme, with the false assurance that the fake checks would cover the expense. Once the checks were discovered to be fraudulent—after the victims’ bank accounts were debited—the victims were left with thousands of dollars in losses, having unwittingly forwarded their own money to a member of the conspiracy.
The charging statutes provides a sentence of up to 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss involved in the scam, and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Joseph W. Cronin, Special Agent in Charge for the U.S. Postal Inspection Service made the announcement today. Assistant U.S. Attorneys Kristen Kearney and Brian A. Pérez-Daple of Lelling’s Criminal Division prosecuted the case.
Asheville Man Is Sentenced to 10 Years for Enticement of A MinorRead the Press Release
ASHEVILLE, N.C. – Jonathan Cody Alexander, 31, of Asheville, was sentenced today to 120 months in prison for enticement of a minor, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, U.S. District Judge Max O. Cogburn Jr. also ordered Alexander to serve a lifetime of supervised release and to register as a sex offender.
According to court documents and today’s court proceedings, from March 24 to April 10, 2017, Alexander engaged in multiple communications with a Homeland Security Investigations special agent posing as a 14-year-old female. During the exchanges, Alexander discussed his interest in engaging in sexual contact with the “minor,” and repeatedly requested suggestive pictures of the minor. Court records show that after the minor told Alexander she would not be able to send pictures, Alexander began urging her to meet him at a motel, to engage in sexual activities with him. When the minor seemed reluctant, Alexander promised money if she agreed to engage in sex with him and another woman. On April 6, 2017, Alexander made arrangements to meet the minor at a restaurant in Hendersonville. On April 10, 2017, law enforcement arrested Alexander when he arrived to meet the minor at the agreed-upon location for the purpose of engaging in sexual activities. Alexander pleaded guilty in May 2019 to one count of enticement of a minor.
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In a separate case, Judge Cogburn sentenced Christopher Patrick Tanfield, 46, of Asheville, to 72 months in prison and a lifetime of supervised release for receiving child pornography. Court records in this case show that on Oct. 8, 2016, Tanfield used a peer-to-peer network to access and download child pornography. A forensic analysis of Tanfield’s electronic devices revealed that he possessed more than 3,182 images and videos of prepubescent minors engaging in sexually explicit conduct. On March 26, 2019, Tanfield pleaded guilty to receipt of child pornography.
Both Alexander and Tanfield are currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
Alexander’s case was investigated by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Hendersonville and the Hendersonville Police Department. The North Carolina State Bureau of Investigations led the investigation into Tanfield.
Special Assistant United States Attorney (SAUSA) Alexis Solheim prosecuted both cases. Ms. Solheim is a state prosecutor with the office of the 30th Prosecutorial District, and was assigned by District Attorney Ashley Welch to serve as a SAUSA with the U.S. Attorney’s Office in Asheville. Ms. Solheim is duly sworn in both state and federal courts. The SAUSA position is a reflection of the partnership between the office of the 30th Prosecutorial District and the United States Attorney’s Office. The SAUSA position helps ensure the effective and vigorous prosecution of federal court cases that impact the counties within the 30th Prosecutorial District.
Both cases were 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 Department of Justice. Led by the U.S. Attorney’s Office and the Criminal Division’s 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.
Albion Man Pleads Guilty to Possessing Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Andrew Campbell, 33, of Albion, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to possession of child pornography. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Elizabeth R. Moellering, who is handling the case, stated in July 2018, an individual contacted the Orleans County Sheriff's Office after discovering a disturbing video on a desktop computer that belonged to the defendant. The witness and Campbell lived together on and off and Campbell left the computer at the residence when he was made to vacate the residence by the witness in June 2018. In addition to the desktop computer, Witness 1 also turned over a laptop computer and hard drive.
A forensic analysis of the desktop, laptop, and hard drive revealed more than 65 image files and more than 20 videos containing child pornography. Some of the images depicted the sexual abuse or exploitation of an infant or toddler, and other depictions of violence.
The plea is a result of an investigation by the Orleans County Sheriff's Office, under the direction of Sheriff Randy Bower, and the Federal Bureau of Investigation, Buffalo Office, under the direction of Special Agent-in-Charge Gary Loeffert.
Sentencing is scheduled for January 29, 2020, at 1:00 p.m. before Judge Arcara.
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Monday 7 October 2019
Windsor Locks Man Pleads Guilty to Child Pornography OffenseRead the Press Release
John H. Durham. United States Attorney for the District of Connecticut, announced that BRIAN GREGAN, 33, of Windsor Locks, waived his right to be indicted and pleaded guilty today in New Haven federal court to one count of receipt of child pornography.
According to court documents and statements made in court, in June 2017, Gregan and a 13-year-old boy were communicating through the Kik messaging application. After the boy informed Gregan that he was 14 years old, they engaged in sexually explicit communications during which the boy sent sexually explicit pictures and video of himself to Gregan. In addition, Gregan possessed on his Apple iPad a video of another girl, who was under the age of 18, engaged in a sexual act.
Gregan was arrested on related state charges on April 6, 2018.
Gregan is scheduled to be sentenced by U.S. District Judge Janet C. Hall on January 2, 2020, at which time Gregan faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 20 years.
Following today’s court proceeding, Gregan was released on a $50,000 bond with internet and location monitoring conditions.
This matter is being investigated by the Federal Bureau of Investigation and the Manchester Police Department. The case is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
United States Attorney’s Office to Host Re-entry Services and Jobs Fair in Natchez Under Project EJECTRead the Press Release
Jackson, Miss. – United States Attorney Mike Hurst announced today that the United States Attorney’s Office for the Southern District of Mississippi will host a Re-entry Services and Job Fair in Natchez under Project EJECT in order to provide vital services, information, and assistance to previously incarcerated individuals who are re-entering society.
The Re-entry Services Fair will be held on Wednesday, October 9, 2019, from 9:00 a.m. to 2:00 p.m. at the Louis J. Gunning Community Safe Room, 323 Liberty Rd., in Natchez.
“In order to reduce violent crime, we must help offenders get back on their feet and become productive citizens. That is why reentry is an integral part of Project EJECT. We must do all that we can to empower these individuals with the tools they need to be law-abiding and successful citizens. I want to personally thank Sheriff Patton, Chief Armstrong, and all of our partners for coming together in order to help these individuals, as this will make our neighborhoods safer and more secure for everyone,” said U.S. Attorney Hurst.
“I am pleased to see that we are hosting re-entry services and job fairs in different parts of the state,” said Commissioner Pelicia E. Hall. “It is important that we help as many individuals as we can, because the more people we help, the more we help our communities and ultimately our state. I thank U.S. Attorney Hurst and all our other partners for such a great team effort.”
The goal of the fair is to help previously incarcerated individuals overcome obstacles often faced by those who are trying to re-enter society. Participating agencies will set up booths at the Fair to provide resources in a variety of areas such as assistance with obtaining personal identification documents, housing information, educational assistance, legal information, and guidance for seeking and obtaining employment.
Agencies participating in the Re-entry Services Fair include the Mississippi Department of Public Safety, Mississippi Department of Human Services, Mississippi Department of Corrections, U.S. Probation Office, Mississippi Community College Board, and the Governor’s Job Fair Network of Mississippi.
This event 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, reentry 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.
United States Attorney Matthew Krueger Announces Progress in Making Communities Safer through Project Safe NeighborhoodsRead the Press Release
Two years ago, the Department of Justice announced the revitalization and enhancement of Project Safe Neighborhoods (PSN), the centerpiece of the department’s violent crime reduction strategy. 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.
Throughout the past two years, the Department of Justice has partnered with all levels of law enforcement, local organizations, and members of the community to reduce violent crime and make our neighborhoods safer for everyone. According to FBI’s 2018 Crime in the United States Report released recently, the violent crime rate decreased for the second consecutive year, down 3.9 percent from the 2017 numbers.
“The revitalized Project Safe Neighborhoods program is a major success,” said Attorney General William P. Barr. “It packs a powerful punch by combining advanced data with local leadership, further reducing violence in communities across the country and improving overall public safety. U.S. Attorneys continue to focus their enforcement efforts against the most violent criminals and work in partnership with federal, state, local, and tribal police. The Justice Department’s relationships across the board have never been stronger.”
United States Attorney Matthew D. Krueger explained that throughout the past year, the United States Attorney’s Office for the Eastern District of Wisconsin has continued to prioritize reducing violent crime through partnerships with law enforcement, local organizations and community members, especially in its PSN focus area of Milwaukee. Remarkable progress has been made in the City of Milwaukee. As of September 30, 2019, compared to the same time in 2017, homicides are down 22% and non-fatal shootings are down 30% in the City of Milwaukee.
“Project Safe Neighborhoods reflects a widespread commitment by stakeholders—law enforcement, local organizations, and community members—to provide the security necessary for our neighborhoods to flourish,” said United States Attorney Krueger. “We are working together to focus enforcement efforts on the most violent individuals who cause most of the problems. Federal law enforcement agencies like the FBI, DEA, and ATF are working closely with local law enforcement to bring impactful prosecutions.
Particular credit is owed to Chief Alfonso Morales of the Milwaukee Police Department for adopting cutting-edge practices like the Shoot Review process. We know enforcement efforts alone cannot solve the problem, so PSN also promotes prevention and reentry efforts. We are on the right track: Milwaukee has seen a dramatic decrease in violent crime since 2017.”
United States Attorney Krueger also highlighted some of the District’s PSN actions over the past year:
Representative Enforcement Actions in PSN Focus Area of Milwaukee
On February 4, 2019, Deon Batton was sentenced to 12½ years in prison after he pled guilty to committing five armed robberies in Milwaukee and one count of discharging a firearm during a crime of violence. His co-defendant, Laura Walton, was previously sentenced to 10 years in prison after she pled guilty to committing five armed robberies and one count of brandishing a firearm during a crime of violence. This case was investigated by the FBI’s Milwaukee Area Violent Crimes Task Force, the Milwaukee Police Department, and the Milwaukee County District Attorney Investigator’s Office. https://go.usa.gov/xV7zR
- On February 26, 2019, Lamont Walker was sentenced to 10 years in prison followed by three years of supervised release after Walker pled guilty to attempting to rob a Walgreens store and brandishing a gun during the attempted robbery. This case was investigated by the FBI’s Milwaukee Area Violent Crimes Task Force and the Milwaukee Police Department. https://go.usa.gov/xV7zM
- On June 5, 2019, Jonathan C. Copeland was indicted for possession with intent to distribute at least 100 grams of heroin, at least 40 grams of fentanyl, cocaine, and marijuana. He was also charged with possessing firearms in furtherance of his drug trafficking crime and possessing firearms after having been convicted of multiple felonies. The investigation of this case was conducted by the Federal Bureau of Investigation (FBI) Southeastern Wisconsin Regional Gang Task Force, which includes Task Force Officers from the Milwaukee Police Department. https://go.usa.gov/xV7ts
- On July 16, 2019, Jimmy D. Bates and 14 other defendants with conspiracy to distribute heroin and cocaine in Milwaukee. Certain defendants were also charged with possession of firearms in furtherance of the conspiracy; unlawful possession of firearms by a felon; and conspiracy to commit robberies of others who possessed drugs. The case was investigated by the Drug Enforcement Administration, North Central High Intensity Drug Trafficking Area, Milwaukee Police Department, and Homeland Security Investigations (HSI). https://go.usa.gov/xV7uN
Representative Enforcement Actions in Other Parts of the Eastern District of Wisconsin
- On June 24, 2019, Tou W. Vang, a/k/a “Meng Vang” was sentenced to 15 years for possessing a firearm in furtherance of a drug trafficking crime, and for possessing with the intent to distribute over 50 grams of pure methamphetamine. The case was investigated by the Appleton Police Department and the Wisconsin Department of Justice, Division of Criminal Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). https://go.usa.gov/xV7zr
- On September 12, 2019, Justin S. Smith and William D. Balgie, were charged with committing three armed bank robberies in Allenton, Wisconsin; Menomonee Falls, Wisconsin; and Glenbeulah, Wisconsin. If convicted, each defendant faces up to 25 years in prison for each robbery. The case was investigated by the FBI’s Milwaukee Area Violent Crimes Task Force, the Milwaukee District Attorney’s Investigator’s Office, the Menomonee Falls Police Department, the Washington County Sheriff’s Office, the Waupun Police Department, the Sheboygan County Sheriff’s Office, the Slinger Police Department, the Plymouth Police Department, the Beaver Dam Police Department, and the District Attorney’s Offices in Sheboygan, Washington, and Waukesha Counties. https://go.usa.gov/xVFEk
- On September 30, 2019, Nicholas O. Nelson was sentenced to 5 years in prison, followed by 36 months on supervised release, for the illegal possession of a firearm. Fox Crossing Police Department investigated the case with assistance from the Wisconsin State Crime Laboratory. https://go.usa.gov/xVGJC
- On October 2, 2019, Joshua J. Klein of Fond du Lac was sentenced to 18 years, 9 months for possessing with the intent to distribute heroin and marijuana, and for possessing two firearms in furtherance of the drug trafficking. Klein previously had been convicted of multiple felonies, including unlawful firearm possession and drug trafficking. The case was investigated by the Lake Winnebago Area Metro Drug Unit, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Fond du Lac Police Department. https://go.usa.gov/xVFEX
Community Partnerships
In addition to efforts to prosecute the violent offenders, district-based police and prosecutor teams work with community organizations to restore properties to their highest quality, assist residents and business owners in creating and enforcing positive neighborhood norms, and create neighborhood crime-reduction plans focused on prevention of gun violence.
PSN includes federal grants to promote crime-reduction strategies. As was recently announced, a PSN grant has been awarded to the Milwaukee County District Attorney’s Office and the City of Milwaukee to help create a Community Victim Witness Program that will provide services to victims of firearm-related violence.
https://www.justice.gov/usao-edwi/pr/milwaukee-awarded-us-department-justice-project-safe-neighborhoods-grant-combat-firearm
PSN is also focused on positive prisoner reentry, which consists of regular face-to-face call-ins of individuals aged sixteen to twenty-six who recently were released from local, state, or federal correctional institutions. Notification sessions are organized and facilitated by community-based agencies that provide trauma-informed and healing-focused care to those involved in the criminal justice system. The program ensures connections to critical assistance and support to the returning offenders and community resources and services. Additionally, “Employment Expos” were organized in Milwaukee and Racine in order to introduce agencies that work with reentering individuals to employers who may be interested in hiring such individuals.
Improvements to Community Safety
- The FBI’s official crime data for 2018 reflects for the second consecutive year, the estimated number of violent crimes in the nation decreased when compared with the previous year’s statistics. In 2018, violent crime was down 3.3 percent from the 2017 number. Property crimes also dropped 6.3 percent, marking the 16th consecutive year the collective estimates for these offenses declined.
- The preliminary information we have for 2019 gives us reason for optimism that our efforts are continuing to pay off. It shows that violent crime continues to decrease from 2018.
- In the City of Milwaukee, since 2017, homicides have decreased 22% as of September 30, 2019.
- In the City of Milwaukee, since 2017, non-fatal shootings have decreased 30% as of September 30, 2019.
These enforcement actions and partnerships 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, in 2017, as part renewed its 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. Learn more about Project Safe Neighborhoods.
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- On February 26, 2019, Lamont Walker was sentenced to 10 years in prison followed by three years of supervised release after Walker pled guilty to attempting to rob a Walgreens store and brandishing a gun during the attempted robbery. This case was investigated by the FBI’s Milwaukee Area Violent Crimes Task Force and the Milwaukee Police Department. https://go.usa.gov/xV7zM
U.S. DOJ awards nearly $10 million in grants to state, local and tribal entities to support services for victims of domestic violence and sexual assaultRead the Press Release
The U.S. Department of Justice has awarded grants totaling more than $9.8 million to support victims of domestic violence and sexual assault in Western Washington, announced U.S. Attorney Brian T. Moran. The grants run for the next one to three years, and some are supporting services in Tribal and Latino communities, as well as in rural areas.
“October is domestic violence awareness month, and an appropriate time to highlight the good work being done in our state to assist victims of domestic and sexual violence,” said U.S. Attorney Brian T. Moran. “In successfully competing for these grant dollars, these programs are demonstrating leadership on making a difference in their communities.”
The grants awarded over the last month include:
- $500,000 to the City of Longview, Wash., to improve criminal justice services to victims of domestic violence and sexual assault. The funding will pay for a domestic violence detective for Longview Police, as well as a domestic violence advocate and special training for prosecutors on domestic violence cases;
- $285,500 for Consejo Counseling and Referral Services of Seattle to provide culturally appropriate services to the Latino community;
- $285,500 to the Seattle Indian Health Board to provide culturally appropriate services to Urban Native survivors of violence and sexual assault;
- $450,000 to the Crisis Support Network in Raymond, Wash., to provide 30 housing units to survivors of domestic violence and sexual assault; and
- $437,192 to Turning Pointe Survivor Advocacy Center in Shelton, Wash., to work with the Shelton Police Department and Mason County Prosecutor’s Office to provide assistance to children exposed to domestic violence.
Five Indian Tribes received grants to strengthen their criminal justice programs for dealing with domestic violence and for providing support and resources for victims. Two tribal coalitions based in Western Washington also received grants. These include:
- $826,017 to the Confederated Tribes of the Chehalis Reservation;
- $450,000 to the Lummi Indian Nation;
- $302,979 to the Suquamish Indian Tribe of the Port Madison Reservation;
- $450,000 for the Nooksack Indian Tribe;
- $900,000 for the Cowlitz Indian Tribe;
- $323,007 to Washington State Native American Coalition Against Domestic Violence in Silverdale, Wash.; and
- $500,000 to Alliance of Tribal Coalitions to End Violence in Silverdale, Wash.
Finally, a number of local organizations will be supported with grant money that is funneled through the state and coalitions of nonprofit organizations:
- $90,975 to Washington State Coalition Against Domestic Violence;
- $151,242 to Washington Coalition of Sexual Assault programs; and
- $3.9 million be distributed through the Washington Department of Commerce to programs that encourage cooperation between law enforcement, prosecutors, courts and victim services to support victims of domestic violence and sexual assault. Some of these funds also support rape crisis centers and non-profits working with victims.
All of the grants were awarded by DOJ’s Office of Violence Against Women. For additional information on individual grants, please contact the recipient organizations.
U.S. Attorney Dunavant Announces Progress in Making our Communities Safer Through Project Safe NeighborhoodsRead the Press Release
Memphis, TN – Two years ago, the Department of Justice announced the revitalization and enhancement of Project Safe Neighborhoods (PSN), the centerpiece of the department’s violent crime reduction strategy. 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.
Throughout the past two years, we have partnered with all levels of law enforcement, local organizations, and members of the community to reduce violent crime and make our neighborhoods safer for everyone. According to FBI’s Uniform Crime Report released this week, the violent crime rate decreased for the second consecutive year, down 3.9 percent from the 2017 numbers.
"The revitalized Project Safe Neighborhoods program is a major success," said Attorney General William P. Barr. "It packs a powerful punch by combining advanced data with local leadership, further reducing violence in communities across the country and improving overall public safety. U.S. Attorneys continue to focus their enforcement efforts against the most violent criminals and work in partnership with federal, state, local, and tribal police. The Justice Department’s relationships across the board have never been stronger."
U.S. Attorney D. Michael Dunavant said, "Project Safe Neighborhoods (PSN) is a proven violent crime reduction strategy that works, and is now reinvigorated with additional resources and commitment from our law enforcement partners. Our job is to get better at reducing violent crime by smart, aggressive enforcement and effective prosecution that removes the worst of the worst from our communities. Putting the right people in prison
incapacitates the most violent offenders, upholds the rule of law, deters criminal conduct with a strong message of significant consequences, and makes us all safer. Under the DOJ flagship violence reduction initiative of PSN, we will continue to focus on the real drivers of violent crime: guns, gangs and drugs."
PSN Task Force
Currently, the 13-member PSN Task Force, which is the investigative component of the local PSN initiative, is comprised of personnel from the Bureau of Alcohol, Tobacco, Firearms and Explosives, Memphis Police Department, the Shelby County Sheriff’s Office and Shelby County District Attorney’s Office. The success of this collaborative law enforcement effort is recognized nationally, with other local, state and federal law enforcement agencies from Alabama, Mississippi, the District of Columbia and Tennessee frequently visiting the task force to adopt its practices.
The Task Force not only investigates firearm possession by prohibited persons; it also investigates individuals buying and selling firearms to/from convicted felons. The Task Force engages in proactive and reactive investigations of convicted felons suspected of possessing firearms, as well as firearm suppliers that are conducting illegal transactions.
As we celebrate the two-year anniversary of the revitalized PSN program, here are some highlights of our PSN actions over the past year:
• On October 1, 2018, Antonio White, 38, was a convicted felon sentenced to 120 months in federal prison after a child was found sitting on loaded firearm and 7.4 grams of cocaine. https://www.justice.gov/usao-wdtn/pr/convicted-felon-sentenced-120-months-federal-prison-after-child-found-sitting-loaded
• On November 29, 2018, the PSN Task Force arrested and indicted 19 Individuals for various Federal Drug and Firearms Offenses, including seven documented gang members, in "Operation Gun Done." https://www.justice.gov/usao-wdtn/pr/psn-task-force-indicts-and-arrests-19-individuals-various-federal-drug-and-firearms
• On February 28, 2019, Marlon Pruitt a/k/a "Big Putt," was sentenced as an Armed Career Criminal to 188 months in federal prison for being a convicted felon in possession of a firearm and drugs. https://www.justice.gov/usao-wdtn/pr/armed-career-criminal-sentenced-188-months-prison-illegally-possessing-firearms-and
• On, June 6, 2019, Everette Alexander, 48, was sentenced to federal prison for making false statements on an ATF Federal Background Check Form while attempting to purchase a firearm, and for being a convicted felon in possession of a firearm. https://www.justice.gov/usao-wdtn/pr/judge-sentences-convicted-felon-making-false-statements-federal-background-check-form
• On July 19, 2019, Nathaniel Hall, 54, was sentenced as an Armed Career Criminal to 188 months in federal prison for possession of firearm by a convicted felon, after he used a gun to chase and shoot a victim in the leg. Hall has previously been convicted on three separate occasions for burglary, and also had a prior conviction for robbery with a deadly weapon. https://www.justice.gov/usao-wdtn/pr/armed-career-criminal-sentenced-188-months-federal-prison
• On August 12, 2019, James Nelson, 48, an Armed Career Criminal, was sentenced to 405 months in federal prison for being a felon in possession of a firearm. Nelson was previously convicted for several felony charges involving drugs, guns, and violent crimes, including a 1996 conviction for voluntary manslaughter, where he shot and killed his sister. https://www.justice.gov/usao-wdtn/pr/armed-career-criminal-sentenced-405-months-federal-prison
• On September 5, 2019, Edward Drummer, 36, was sentenced to 92 months in federal prison for being a convicted felon in possession of a firearm, which he used to hold a female victim and her 12-year old son at gunpoint during a domestic violence incident. https://www.justice.gov/usao-wdtn/pr/convicted-felon-sentenced-92-months-illegally-possessing-firearm-during-domestic
Community Partnerships
Reentry education and assistance is an important part of the PSN initiative and vital to ensuring communities are safer when those incarcerated return home. Since 2011, the U.S. Attorney’s Office and the Office of U.S. Probation continues to participate in monthly Reentry Court sessions. In addition, staff also meets monthly to discuss issues with clients at a halfway house prior to their transitioning back into the Western District of Tennessee. Through these reentry services, we further our commitment to providing individuals with the necessary tools to make a permanent lifestyle change that will benefit themselves and the community.
Members of the United States Department of Justice, Federal Reentry Council, meet monthly to discuss and develop solutions to assist reentrants, such as collaborating with the Tennessee Department of Motor Vehicles to reinstate driver’s licenses.
On June 13, 2019, the United States Department of Justice, Federal Reentry Council held its first annual Recognition Awards Program. Certificates were presented to business and community leaders who participated in the reentry court program throughout the year. During the ceremony, the Director of the Tennessee Driver Services Division was presented with a Certificate of Recognition for his invaluable dedication and contribution affecting re-entrants.
On October 1, 2019, leaders of the Shelby County Child Protection Investigation Team (CPIT) gathered to sign an updated protocol formalizing our collaboration. This partnership helps victimized children get help faster and renews our commitment to Shelby County’s kids.
Improvements to Community Safety
• For the second consecutive year, the estimated number of violent crimes in the nation decreased when compared with the previous year’s statistics, according to FBI figures released today. In 2018, the number of violent crimes was down 3.3 percent from the 2017 number.
• The 2018 statistics also show the estimated rate of violent crime was 368.9 offenses per 100,000 inhabitants. The violent crime rate fell 3.9 percent when compared with the 2017 rate.
• Here in Memphis, FBI data shows that the number of rapes reported to police fell by 17 percent, and the number of robberies decreased by 12 percent in 2018. And although aggravated assaults increased by 1 percent and homicides were up 3 percent in 2018 as compared to 2017, the overall number of violent crimes reported to police fell 3 percent in the City of Memphis during that period.
• More recent year-to-date numbers at the end of September, 2019, show a decreased rate of 7.8 percent in overall violent crime in all major categories in Memphis, including a 23.8 percent decrease in business robberies and a 13.8 percent decrease in carjackings.
• From 2017 to 2018, federal firearms and violent crime prosecutions increased by 39 percent in the Western District of Tennessee, including an increase of 120 percent in the number of federal prosecutions of domestic violence offenders in possession of firearms. As a result of these dramatic increases in federal gun prosecutions, the percentage of defendants found guilty for such offenses has increased by 43.7 percent over the last year.
These enforcement actions and partnerships 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. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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U.S. Attorney Downing Announces Progress in Making Our Communities Safer Through Project Safe NeighborhoodsRead the Press Release
Two years ago, the Department of Justice announced the revitalization and enhancement of Project Safe Neighborhoods ("PSN"), the centerpiece of the Department’s strategy to reduce violent crime. Since that announcement, the U.S. Attorney’s Office for the Western District of Oklahoma has partnered with all levels of law enforcement, local organizations, and members of the community to reduce violent crime and make our neighborhoods safer for everyone. According to the FBI’s Uniform Crime Report released last week, the violent crime rate decreased for the second consecutive year, down 3.9 percent from the 2017 numbers. And according to the Oklahoma State Bureau of Investigation, Oklahoma has seen fewer murders and robberies over the last two years.
"The revitalized Project Safe Neighborhoods program is a major success," said Attorney General William P. Barr. "It packs a powerful punch by combining advanced data with local leadership, further reducing violence in communities across the country and improving overall public safety. U.S. Attorneys continue to focus their enforcement efforts against the most violent criminals and work in partnership with federal, state, local, and tribal police. The Justice Department’s relationships across the board have never been stronger."
"Reducing violence in the Western District of Oklahoma is a top priority of my work as U.S. Attorney and of the dedicated Assistant U.S. Attorneys and staff in the office," said U.S. Attorney Downing. "It is gratifying to know we have a role to play in assisting our state, local, and tribal law enforcement partners in bringing down crime rates and improving the lives of citizens who may be vulnerable to violent actors."
As we celebrate the two-year anniversary of the revitalized PSN program, these are some of the highlights of PSN in the Western District of Oklahoma over the past year:
Enforcement Actions
In addition to charging felons in possession of firearms, the U.S. Attorney’s Office has focused on the prosecution of perpetrators of domestic violence, particularly those who possess firearms in violation of federal criminal law. The following are some examples of the office’s enforcement actions under the PSN banner, including "Operation 922," which focuses on gun crimes tied to domestic violence:
- On May 17, 2019, a jury convicted Chad Wayne Kaspereit of possessing a firearm while subject to a victim protective order and lying on a federal form to purchase firearms. Sentencing is pending. See https://www.justice.gov/usao-wdok/pr/jury-convicts-man-subject-victim-protective-orders-possessing-firearms.
- In May 2019, four defendants received lengthy prison sentences within the course of a week in separate gun cases connected to domestic violence. See https://www.justice.gov/usao-wdok/pr/operation-922.
- During the last year, numerous members of the Universal Aryan Brotherhood have been sentenced to long prison sentences for gun and drug offenses. See, for example, https://www.justice.gov/usao-wdok/pr/universal-aryan-brotherhood-members-sentenced-decades-prison.
- On August 13, 2019, Brandon Sherod Ramsey was sentenced to the statutory maximum of 120 months in prison for being a felon in possession of a firearm. In imposing this sentence, the court considered Ramsey’s connections to gun crimes, such as his having pointed a firearm at another driver while traveling on the interstate, as well as his possession of two high-capacity magazines.
- On September 12, 2019, Jervares Damora Davis was sentenced to 100 months in prison for being a felon in possession of a firearm. Davis was involved in an attempted drive-by shooting involving rival gang members that resulted in serious injuries to his girlfriend.
- On September 20, 2019, James Dean Lamar LaFountain was sentenced to 60 months in prison for assaulting his wife with a knife in Indian Country. See https://www.justice.gov/usao-wdok/pr/seiling-man-sentenced-five-years-domestic-violence-indian-country.
Community Partnerships
- The U.S. Attorney’s Office has worked with Palomar, Oklahoma City’s Family Justice Center, to bring to justice individuals who commit domestic violence and are in violation of federal criminal gun laws. The district has received national recognition for its efforts to supplement local efforts to combat domestic violence, including its work with Palomar. See https://www.justice.gov/usao-wdok/pr/department-justice-highlights-western-district-oklahoma-its-focus-firearms-offenses.
- The office spearheads the Probationer and Parolee Reentry Program (PPREP), which since March 2011 has coordinated with state prosecutors and federal and state law enforcement to inform thousands of recently released state parolees and probationers about social services available to them and also about the consequences of further criminal activity, including the illegal possession of firearms. For more information, visit https://www.justice.gov/usao-wdok/pr/assistant-us-attorney-ashley-l-altshuler-receives-award-attorney-general-reentry.
Improvements to Community Safety
- For the second consecutive year, the estimated number of violent crimes in the nation decreased when compared with the previous year’s statistics, according to FBI figures released last week. In 2018, the number of violent crimes was down 3.3 percent from the 2017 number.
- The 2018 statistics also show the estimated rate of violent crime was 368.9 offenses per 100,000 inhabitants. The violent crime rate fell 3.9 percent when compared with the 2017 rate.
- According to OSBI’s 2018 crime statistics, murders in Oklahoma were down almost 15% between 2017 (246) and 2018 (210). That trend holds true in Oklahoma County, where murders went from 94 to 60 in that same timeframe. Robberies are in decline over a two-year period, from 3,135 state-wide in 2016 to 2,765 state-wide in 2018, and from 1,305 in Oklahoma County in 2016 to 1,208 in Oklahoma County in 2018. For more information, visit https://osbi.ok.gov/publications/crime-statistics.
To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
U.S. Attorney Announces Progress in Making Community Safer Through Project Safe NeighborhoodsRead the Press Release
Two years ago, the Department of Justice announced the revitalization and enhancement of Project Safe Neighborhoods (PSN), the centerpiece of the department’s violent crime reduction strategy. 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.
Throughout the past two years, we have partnered with all levels of law enforcement, local organizations, and members of the community to reduce violent crime and make our neighborhoods safer for everyone. According to FBI’s Uniform Crime Report released this week, the violent crime rate decreased for the second consecutive year, down 3.9 percent from the 2017 numbers.
“The revitalized Project Safe Neighborhoods program is a major success,” said Attorney General William P. Barr. “It packs a powerful punch by combining advanced data with local leadership, further reducing violence in communities across the country and improving overall public safety. U.S. Attorneys continue to focus their enforcement efforts against the most violent criminals and work in partnership with federal, state, local, and tribal police. The Justice Department’s relationships across the board have never been stronger.”
“The goal of PSN is to decrease violent crime and victimization in Oregon. It remains a key focus of the U.S. Attorney’s Office and the entire federal law enforcement community,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “With the assistance of our federal, state, local and tribal law enforcement partners, we have made significant progress toward this goal throughout the state. We look forward to continuing our efforts over the coming year.”
As we celebrate the two-year anniversary of the revitalized PSN program, here are some of the highlights of our PSN actions over the past year:
The U.S. Attorney’s Office for the District of Oregon works in partnership with federal, state, local and tribal law enforcement agencies to investigate and prosecute the district’s most violent offenders under the PSN program. Recent prosecutions include:
U.S. v. Wilson
In December 2018, Gregory Rex Wilson, 52, of Portland, was sentenced to 84 months in federal prison and five years’ supervised release for distributing heroin and illegally possessing a firearm.
According to court documents, Wilson was part of a drug trafficking organization that transported heroin from El Monte, California to the Portland metropolitan area. The investigation revealed that Wilson was being supplied with heroin by “Chino Antrax,” later identified as co-defendant Pablo Flores. Flores had actively been trafficking heroin to Portland for more than a year. At the time of his arrest on December 12, 2016 in Portland, Wilson had 880 grams of heroin, 100 Xanax pills and a loaded Ruger 9mm pistol in his vehicle. Four additional firearms were later found in a second vehicle owned by Wilson, including one with an obliterated serial number.
The case was investigated by the Clackamas County Interagency Task Force (CCITF), FBI, Homeland Security Investigations (HSI), the U.S. Drug Enforcement Administration (DEA), and the Portland Police Bureau. It was prosecuted by Matthew J. Semritc, Special Assistant U.S. Attorney for the District of Oregon.
U.S. Dencklau et al.
In January 2019, a federal grand jury returned a five-count superseding indictment charging six members and associates of the Gypsy Joker Outlaw Motorcycle Club (GJOMC) for racketeering, kidnapping and murder.
GJOMC National President Kenneth Earl Hause, 61, of Aumsville, Oregon; Mark Leroy Dencklau, 58, of Woodburn, Oregon; Earl Deverle Fisher, 48, of Gresham, Oregon; Ryan Anthony Negrinelli, 36, of Gresham; Joseph Duane Folkerts, 61, of Battleground, Washington; and a sixth unnamed defendant were charged, as members and associates of the GJOMC, with conspiring to conduct and participate in the activities of a racketeering enterprise.
Additionally, Dencklau, Fisher, Negrinelli, Folkerts and the unnamed defendant were charged with murder in aid of racketeering; kidnapping in aid of racketeering, resulting in death; kidnapping resulting in death; and conspiracy to commit kidnapping, resulting in death for the June 30 to July 1, 2015 kidnapping and murder of Robert Huggins, a former GJOMC member and resident of southeast Portland, for the purpose of maintaining and increasing their positions in the GJOMC criminal enterprise.
Dencklau, Fisher and Tiler Evan Pribbernow, 37, of Portland were first charged in a four-count indictment unsealed in July 2018. Pribbernow pleaded guilty to a single count of conspiring to conduct and participate in the activities of a racketeering enterprise on November 7, 2018. Dencklau and Fisher are detained pending trial.
This case was investigated by the PPB and ATF, with assistance from the U.S. Marshals Service, IRS-Criminal Investigation, Clark County, Washington Sheriff’s Office, the Oregon State Police, and the Oregon and Washington State Crime Labs. Leah K. Bolstad and Steven T. Mygrant, Assistant U.S. Attorneys for the District of Oregon, are prosecuting the case with Rebecca A. Staton, Trial Attorney for the Criminal Division’s Organized Crime and Gang Section.
U.S. v. Ochoa
In April 2019, Jonathan Alan Ochoa, 31, of Talent, Oregon, was sentenced to 120 months in federal prison and five years’ supervised release for conspiring to distribute and possess with intent to distribute cocaine and possessing a firearm in furtherance of a drug trafficking crime.
According to court documents, between July and August 2017, Ochoa agreed and conspired with co-defendants Gonzalo Manzo, Jr. and Rodolfo Quevedo to send more than 500 grams of cocaine from California to Oregon to sell and distribute to others. During this time, Ochoa and Manzo negotiated a sale of cocaine with an undercover agent from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) in exchange for multiple firearms.
On August 17, 2017, at Manzo’s request, Quevedo transported approximately 1000 grams of cocaine from California and delivered it to Ochoa in the Medford area. The firearms and cash were intended to be transported back to California but agents arrested Ochoa and his co-conspirators and the firearms were seized by law enforcement.
This case was investigated by ATF and is being prosecuted by Nathan J. Lichvarcik and Adam E. Delph, Assistant U.S. Attorneys for the District of Oregon.
U.S. v. Lara
In April 2019, Edwin Enoc Lara, 34, a former campus safety officer at Central Oregon Community College and resident of Bend, Oregon, was sentenced to life in federal prison for kidnapping and carjacking.
According to court documents, between July 24 and July 26, 2016, Lara went on a violent crime spree that left multiple victims and their families in its wake. Early on the morning of July 24, 2016, Lara brutally murdered 23-year-old Bend resident Kaylee Sawyer, a crime for which he would later receive a life sentence in Deschutes County Circuit Court.
After the murder, on July 25, 2016, Lara fled to Salem, Oregon where he carjacked and kidnapped a young woman at gun point. Lara told his victim he was a police officer and showed her news reports about what he had done to Kaylee Sawyer. He then forced her to travel with him to California. Along the way, Lara decided to stop at a hotel in Cottage Grove, Oregon. Inside the hotel room, Lara handcuffed his victim, forced her to take sleeping pills, and made a series of physical advances leading her to believe he might sexually assault her.
A short while later, after receiving a phone call and growing concerned that law enforcement was nearing his location, Lara left the hotel with his victim and continued traveling toward California. At some point during the drive, Lara sought to change vehicles to avoid detection and stopped at two rest areas looking for another vehicle to steal.
In the early morning hours on July 26, 2016, Lara stopped at a motel in Yreka, California where he spotted an elderly man near his vehicle. Lara parked, grabbed his victim by the hand and approached the man. With his gun visible, Lara told the man that he needed his vehicle. When the man wouldn’t comply, Lara shot him in the abdomen. At this point, Lara’s victim pleaded with him to let her go, but he again grabbed her hand and forced her to flee with him by foot to a nearby gas station.
At the gas station, Lara found his next victims, two young men and their elderly grandmother, sitting inside a vehicle. After threatening to shoot them, Lara entered their vehicle with his Oregon victim and forced them to drive off. During the drive, Lara confessed to his victims that he had an “urge to kill” and had already murdered a young woman in Bend and shot a man in Yreka. Lara eventually dropped his three California victims on the side of the road, again threatened to kill them and continued driving southbound with his Oregon victim. Soon after, California law enforcement caught up with Lara and arrested him.
This case was investigated by the Redmond Police Department, Bend Police Department, Deschutes County Sheriff’s Office, Oregon State Police and other local law enforcement agencies in California with the assistance of the FBI. It was prosecuted by Nathan J. Lichvarcik, Assistant U.S. Attorney for the District of Oregon.
U.S. v. Crane
In April 2019, Shawn Terrell Crane, 39, of Portland, was sentenced to 168 months in federal prison and three years’ supervised release for conspiring to distribute oxycodone and laundering drug proceeds.
The case against Crane was the result of a lengthy FBI and Portland Police Bureau investigation of a Portland-area drug trafficking organization that included a three-month wiretap of Crane’s cell phones. Crane was the leader of a criminal conspiracy that sourced oxycodone pills from Fresno, California and transported them to Oregon by vehicle and U.S. mail for distribution in and around the Portland metropolitan area.
During the course of the conspiracy, Crane was responsible for distributing more than 30,000 oxycodone pills and arranging for hundreds of thousands of dollars in cash to be deposited into third-party bank accounts to conceal its source. He used violence and the threat of violence to bolster his position of authority within the drug trafficking organization, intimidate competition and achieve his objectives. On one occasion, Crane videotaped himself assaulting and robbing a drug customer while armed with a gun. Crane then sent the video to others, boasting of his willingness to engage in violence without backup from his associates.
The FBI and Portland Police Bureau investigated this case. It was prosecuted by Leah K. Bolstad and Peter D. Sax, Assistant U.S. Attorneys for the District of Oregon.
U.S. v. Soares
In May 2019, Christopher Michael Soares, 35, of Southern Oregon, was sentenced to 160 months in federal prison and five years’ supervised release for possessing with the intent to distribute methamphetamine in Bend, Oregon.
According to court documents, on June 28, 2016, police officers in Bend stopped Soares while he was driving a vehicle with two other occupants. When officers searched Soares’ person, they found 99 grams of methamphetamine, 56 grams of heroin and a 9mm firearm. Soares was later arrested on three separate occasions in Jackson County for additional drug and firearms offenses.
In September 2016, Soares was charged by federal criminal complaint for the June 2018 incident in Bend. He later pleaded guilty to one count of possession with intent to distribute 50 grams or more of methamphetamine. Facing state and federal charges, the parties, including state prosecutors in Jackson County, agreed to a global resolution to resolve all of Soares’ pending criminal cases.
This case was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Bend Police Department, Medford Police Department and Deschutes County Sheriff’s Office. It was prosecuted by Nathan J. Lichvarcik, Assistant U.S. Attorney for the District of Oregon.
U.S. v. Alston
In July 2019, Dannie Kay Alston, 67, was sentenced to 110 months in federal prison and three years’ supervised release for robbing four Oregon and Southwest Washington banks in a four-week period beginning in August 2017.
On February 21, 2019, Alston pleaded guilty in federal court to the following bank robberies:
- August 7, 2017; Chase Bank in Vancouver, Washington; collecting $2,300
- August 15, 2017; Wells Fargo Bank in Medford, Oregon; collecting $4,690
- August 24, 2017; Wells Fargo Bank in Salem, Oregon; collecting $1,317
- September 9, 2017; First Interstate Bank in Roseburg, Oregon; collecting $3,441
In each of his robberies, Alston attempted to disguise his identity by wearing sunglasses and some type of ball or ski cap. He communicated with the targeted bank tellers primarily through handwritten notes or signs. At his last robbery, in Roseburg, witnesses were able to provide a description of Alston’s getaway vehicle, leading to his quick arrest by the Oregon State Police. Police recovered the note used in the Roseburg robbery, a starter’s pistol with loaded caps, a Taser, sunglasses, wig and $3,441 cash from Alston’s person and vehicle.
Alston is a career offender with a criminal history spanning five decades and four states. He has previous burglary convictions in California and Texas, robbery convictions in California, Florida and Oregon, as well as assault, theft and narcotics convictions.
This case was investigated by the FBI, Clark County Washington Sheriff’s Office, Medford Police Department, Oregon State Police and Roseburg Police Department. It was prosecuted by Pamela Paaso, Assistant U.S. Attorney for the District of Oregon.
U.S. v. Caro-Gonzalez
In August 2019, Rodrigo Caro-Gonzalez, 35, a noted drug trafficker residing in Eagle Point, Oregon, was sentenced to 120 months in federal prison and five years’ supervised release for conspiring to distribute methamphetamine and illegally possessing a firearm.
According to court documents, the U.S. Drug Enforcement Administration (DEA) began investigating Caro-Gonzalez in May 2016. A few months later, based on a tip, the Oregon State Police (OSP) stopped a car driven by one of Caro-Gonzalez’s associates carrying more than 30 pounds of methamphetamine. The investigation of Caro-Gonzalez continued when, in March 2017, a person believed to have obtained methamphetamine from Caro-Gonzalez was stopped with approximately 16 pounds of methamphetamine.
Later in March 2017, a confidential source met with Caro-Gonzalez and a third associate. The group arranged a drug deal. The deal never occurred, but the associate was arrested a few days later with more than five pounds of methamphetamine. The DEA then executed a search warrant at Caro-Gonzalez’s Eagle Point residence and seized $9,585, an AK-style firearm, a thirty-round magazine, a pistol and ammunition. Caro-Gonzalez admitted to being in the U.S. illegally, making his possession of the weapons unlawful.
This case was investigated by DEA, the Springfield Police Department, INET and OSP and prosecuted by Jeffrey Sweet, Assistant U.S. Attorney for the District of Oregon.
U.S. v. Friesen
In August 2019, Michael James Friesen, 33, of Prineville, Oregon, was sentenced to 18 months in federal prison and three years’ supervised release for conspiracy to transfer and unlawful possession of a machine gun.
According to court documents, between May and June 2018, Friesen agreed to broker the sale of a Guide Lamp, Model M3A1, .45 ACP caliber machine gun for co-defendant John Widener Jordan, 38, also of Prineville. Between May 30 and June 5, Friesen discussed the sale price of the firearm with an undercover agent from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) posing as a potential purchaser. Friesen confirmed for the agent that he had seen the firearm function as a machine gun.
On June 6, Friesen met the undercover agent in a motel room in Prineville. Shortly thereafter, Jordan brought the firearm to the motel room and completed the transaction in exchange for $3,000 in cash. Jordan in turn paid Friesen for arranging the sale.
This case was investigated by the ATF and is being prosecuted by Nathan J. Lichvarcik, Assistant U.S. Attorney for the District of Oregon.
U.S. v. Walsh
In September 2019, Jon Michael Walsh, 46, of Neskowin, Oregon, was sentenced to 20 years in federal prison and 10 years’ supervised release for possessing with intent to distribute methamphetamine and heroin and illegally possessing a firearm as a convicted felon.
According to court documents, in February 2018, Walsh was on post-prison supervision for a 2015 federal firearms conviction, when probation officers conducted a routine search of his vehicle outside a community center and found a stolen loaded pistol and concealed packages of methamphetamine and heroin.
During a subsequent search of Walsh’s Neskowin residence, officers found additional distribution quantities of methamphetamine and heroin. Walsh later admitted to buying and selling methamphetamine and heroin in Lincoln and surrounding coastal counties to support his own methamphetamine addiction.
Walsh previously served nine years in federal prison for distributing methamphetamine while in possession of a firearm after being sentenced in June 1998.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Oregon State Police, Tillamook County Sheriff’s Office and the Lincoln City Police Department. It was prosecuted by Frank R. Papagni, Jr., Assistant U.S. Attorney for the District of Oregon, and Michelle Branam, Lincoln County District Attorney.
U.S. v. Fuller
In September 2019, Tyler Wayne Fuller, 30, of Madras, Oregon, was sentenced to 10 years in federal prison and three years’ supervised release for his role in a Central Oregon methamphetamine distribution conspiracy and for robbing a Madras bank.
According to court documents, Fuller is the son of career criminal and known drug dealer Ronald Wayne Thrasher, 49, also of Madras. By age 28, Fuller had his own extensive criminal history and had spent the majority of his adulthood incarcerated. In December 2016, after Fuller was released from federal prison, Thrasher began giving his son methamphetamine to sell. Within a month, Thrasher was supplying and Fuller was distributing quarter and half-pound quantities of methamphetamine throughout Central Oregon.
In February 2017, Fuller’s volatile relationship with his father led to a confrontation. Armed with a pistol, Fuller unsuccessfully attempted to rob his father of his methamphetamine supply. The resulting estrangement left Fuller without a supplier and illicit income. Now homeless, he continued selling drugs obtained from his father’s customers. In August 2017, Fuller robbed a U.S. Bank in Madras, collecting $517 in cash.
Thrasher was convicted at trial in August 2019 for purchasing and transporting methamphetamine for distribution and being a felon in possession of a firearm. He will be sentenced on February 4, 2020. Fuller is the first of 11 defendants to be sentenced for their involvement in his father’s drug trafficking conspiracy.
This case was investigated by Central Oregon Drug Enforcement (CODE), the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Oregon State Police. It was prosecuted Frank R. Papagni Jr. and Judi Harper, Assistant U.S. Attorneys for the District of Oregon, with the assistance of the Jefferson, Crook and Deschutes County District Attorney’s Offices.
U.S. v. Rhodes et al.
In September 2019, the U.S. Attorney’s Office announced the indictment of two Hoover Criminal Gang members for the 2015 murder of Portland resident Kyle Polk.
The indictment alleges that on December 16, 2015, Javier Fernando Hernandez, 23, and Ronald Clayton Rhodes, 34, both of Portland, murdered Kyle Polk for the purpose of maintaining and increasing their positions in the Hoover Criminal Gang, a criminal enterprise engaged in racketeering in California, Oregon, Washington and elsewhere.
Hernandez and Rhodes are both charged with murder in aid of racketeering, using and carrying a firearm during a crime of violence, and causing the death of Polk through the use of a firearm and will stand trial together. Murder in aid of racketeering carries a maximum sentence of death or life in prison.
This case was investigated by the FBI, the Portland Police Bureau, Multnomah County Sheriff’s Office and Homeland Security Investigations and is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
These enforcement actions and partnerships 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. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
Twenty Defendants Indicted in Drug-Trafficking ConspiracyRead the Press Release
KANSAS CITY, Mo. – Twenty defendants, primarily residents of Kansas City, Missouri, have been indicted for their roles in a drug-trafficking conspiracy. Most of the defendants were arrested during a law enforcement operation last week that resulted in seizures of firearms, heroin and other illegal drugs, and large amounts of cash.
Ladele D. Smith, also known as “Dellio” and “Dog,” 32, Roy O. Franklin Jr., 29, David J. Duncan IV, also known as “Deei” or “DJ,” 30, Terrance R. Garner, also known as “T-Dot,” 34, Joshua D. Marchbanks, 29, Cory Tremaine Brown, also known as “Twin,” 39, Carleeon D. Lockett, also known as “Tone,” 27, Gary Othniel Toombs, 39, Errick Eugene Martin Jr., also known as “Dough Boy,” 28, Kenneth Dewayne Scott, also known as “Kenny,” 23, Cordell D. Edwards, also known as “Duke,” 31, Victor Gonzalez, also known as “Lil Vic” and “El Chavo,” 30, Michael E. Sims, also known as “Mikey,” 33, Cordarrel Lamonte Scott, also known as “DOB,” 33, Marco Rashon Maddox, 35, and Herman Graham Bell Jr., 64, all of Kansas City, Mo.; Cornelius Phelps, also known as “Tim Tim,” 33, of Lee’s Summit, Mo.; Sirrico L. Franklin, also known as “Chico” and “Rico,” 28, of Raytown, Mo.; Lencorya Tiko Montrel Grady, also known as “Thick,” 44, of Springfield, Mo.; and Martin Christopher Garner, also known as “Looch” and “Lu Lu,” 32, of St. Louis, Mo., were charged in a two-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Tuesday, Oct. 1.
The federal indictment was unsealed following a law enforcement operation on Wednesday, Oct. 2, in which 16 of the 20 defendants were arrested. Approximately 200 federal agents and local law enforcement officers were involved in the operation, which also resulted in the arrests of two additional individuals who have been charged with being felons in possession of firearms in separate cases related to the underlying investigation of this case.
According to court documents, investigators seized 23 firearms, approximately 350 grams of heroin, cocaine, marijuana, $75,000 in cash, scales, an apparent drug ledger, and drug packaging materials during the course of the arrest operation and accompanying search warrants. Smith, Duncan, Martin, Garner, Gonzalez, Scott, Phelps, and Bell were arrested with firearms either on their person, in their vehicle, or in their residence.
The indictment alleges that all 20 of the defendants participated in a conspiracy to distribute at least a kilogram of heroin, as well as cocaine, crack cocaine, oxycodone, codeine, and marijuana, from Jan. 1, 2011, to Oct. 1, 2019.
In addition to the drug-trafficking conspiracy, Smith, Roy Franklin, Sirrico Franklin, and Toombs are charged with maintaining a residence for the purpose of manufacturing, distributing, and using controlled substances.
Officers executed a search warrant at a residence maintained by Smith, Roy Franklin, Sirrico Franklin, and Toombs during the Oct. 2 operation and seized approximately 350 grams of suspected heroin, a digital scale, packaging material, two Glock handguns, two Mico Draco AK-47 pistols, a Century Arms AK-47 pistol, and an apparent bullet proof vest. According to court documents, officers also found a stolen Jeep, riddled with bullet holes and missing the back window, that allegedly had been used by conspirators in a shoot-out on Sept. 9, 2019, in the area of 35th Street and Woodland. Investigators also recovered live ammunition and shell casings inside the vehicle.
Duncan was among those arrested in his apartment during the Oct. 2 operation. According to court documents, officers located three firearms under his mattress: a Zastava M92PV, a Glock Model 19, and a Norinco MAK90 AK-47. Investigators also seized approximately $7,100 in cash, an apparent drug ledger on the nightstand listing nicknames and dollar amounts, and Duncan’s Dodge Charger.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorneys Adam Caine, Ashleigh Ragner, and Stacey Perkins Rock. It was investigated by the FBI, the Kansas City, Mo., Police Department, and IRS-Criminal Investigation, with support from the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Kansas City, Kansas, Police Department, the Lee’s Summit, Mo., Police Department, the Missouri State Highway Patrol, the U.S. Marshals Service, the Jackson County Drug Task Force, and the Independence, Mo., Police Department.
OCDETF
This case is part of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program. The OCDETF program is the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s illicit drug supply.Trenton Man Sentenced for Federal Firearm OffenseRead the Press Release
Bangor, Maine: A Trenton, Maine man was sentenced today in federal court in Bangor for possessing a firearm after being convicted of a felony, U.S. Attorney Halsey B. Frank announced.
U.S. District Judge Lance E. Walker sentenced Timothy Levesque, 53, to one year and one day in prison and two years of supervised release. Levesque pleaded guilty on December 18, 2018.
According to court records, on the evening of May 12, 2018, the U.S. Coast Guard boarded Levesque’s boat off the coast of Lamoine, Maine, while conducting a routine maritime safety and law enforcement patrol. The boat was registered solely to Levesque and he was the only person on board. While searching the boat, Coast Guard personnel found four firearms within four feet of where Levesque had been sitting in the pilot house. Levesque has two prior felony drug convictions and was aware that the firearms were on his boat.
The U.S. Coast Guard Investigative Service; the Maine Marine Patrol; and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
Three Members of “Central Divisadero Players” Gang Sentenced to 22 Years or More in Prison for Racketeering and MurderRead the Press Release
SAN FRANCISCO – Alfonzo Williams (a/k/a “Fonz” or “Relly”), Antonio Gilton (a/k/a “TG” or “Tone”), and Reginald Elmore (a/k/a “Fat Reg”), were each sentenced to 22 or more years in prison for their respective roles in a racketeering conspiracy, announced United States Attorney David L. Anderson and FBI Special Agent in Charge John F. Bennett. Williams was sentenced to 25 years in prison, Gilton was sentenced to 22 years, and Elmore was sentenced to 22 years. The sentences were handed down by the Honorable William H. Orrick, U.S. District Judge, in a case in which a total of eleven defendants have been charged for crimes committed by a San Francisco gang known as Central Divisadero Players, aka “Central Divis Playas,” aka “CDP.”
The eleven-defendant, 22-count second superseding indictment filed on August 14, 2014, in this case described CDP as a racketeering organization that worked collectively with other gangs in the Western Addition of San Francisco to preserve and protect power, territory, reputation, and profits of the enterprise through the use of intimidation, violence, assaults, and murder.
The three defendants sentenced today pleaded guilty in May 2019. As part of their guilty pleas, Williams, 42, and Gilton, 33, admitted that they were active members of CDP from at least 2000 through July 2012, when they were arrested for murder. They belonged to CDP knowing that its members and associates committed numerous crimes, including murder, attempted murder, pimping, robbery, firearms offenses, witness intimidation, drug trafficking, and the enticement of individuals to travel in interstate commerce for prostitution.
In addition, Williams and Gilton admitted their involvement in the murder of Calvin Sneed. Sneed, 22 at the time of his death, was a resident of Los Angeles who visited San Francisco in June 2012. Williams and Gilton had plotted with others in advance to kill Sneed. In the early morning hours of June 4, 2012, they found Sneed driving near the intersection of Le Conte and Meade Avenues in San Francisco. One of them shot Sneed. Sneed died from his gunshot wounds. Williams and Gilton admitted that a substantial purpose of this murder was to maintain and increase their position in CDP.
Elmore, 30, admitted that he, too, was a member of CDP, and that he joined CDP understanding that its members engaged in acts of racketeering, including murder. Elmore also admitted that he was liable, through principles of co-conspirator liability, for the use of a firearm in the double-homicide of Andre Helton and Isiah Turner that took place by the University of San Francisco on August 14, 2008.
Williams, Gilton, and Elmore were each convicted of conspiring to conduct the affairs of an enterprise through a pattern of racketeering activity, in violation of 18 U.S.C. § 1962(d), and using and possessing a firearm in murder, in violation of 18 U.S.C. § 924(j).
In addition to the prison terms, Judge Orrick sentenced Williams, Gilton, and Elmore each to serve five years of supervised release following their terms of incarceration.
The defendants are already in custody and will begin serving their sentences immediately.
Six defendants have previously been convicted and sentenced in this case. Charles Heard (a/k/a “Cheese”) was sentenced to four life sentences. Jaquain Young (a/k/a “Loc”) was sentenced to four life sentences, plus additional terms of years. Adrian Gordon (a/k/a “Tit”) was sentenced to 27 years in prison. Esau Ferdinand (a/k/a “Sauce”) was sentenced to 20 years in prison. Monzell Harding, Jr. was sentenced to 12 years in prison. Paul Robeson (a/k/a “P World”) was sentenced to six years in prison.
Two defendants, Barry Gilton (a/k/a “Prell”) and Lupe Mercado, remain in the case. They have pleaded not guilty and are set to stand trial beginning on February 3, 2020. They are presumed innocent until proven guilty beyond a reasonable doubt.
The prosecution is the result of joint investigation by the Federal Bureau of Investigation; the San Francisco Police Department’s Gang Task Force, Homicide Detail, Robbery Detail, Special Victims Unit, and the Northern, Park, and Bayview Stations; the San Francisco District Attorney’s Office; and the San Pablo Police Department.
Texas Physician Convicted in $16 Million Medicare Fraud SchemeRead the Press Release
A federal jury in Texas found a physician who was the owner and operator of a medical clinic in Houston, Texas, guilty today of participating in a $16 million Medicare fraud scheme in which she signed false and fraudulent “plans of care” and other medical documents for purported home health services.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan Patrick of the Southern District of Texas, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office and Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of the Inspector General’s (HHS-OIG) Dallas Regional Office made the announcement.
Following a six-day trial, Yolanda Hamilton, M.D., 56, of Harris County, Texas, the owner and operator of HMS Health and Wellness Center, PLLC, was convicted of one count of conspiracy to commit health care fraud, one count of conspiracy to solicit and receive health care kickbacks and two counts of false statements relating to health care matters. Hamilton is expected to be sentenced before U.S. District Judge Keith P. Ellison of the Southern District of Texas, who presided over the trial. A sentencing date has not yet been set.
According to the evidence presented at trial, from January 2012 to August 2016, Hamilton and others conspired to defraud Medicare by signing false and fraudulent plans of care and other medical documents, and submitting fraudulent claims to Medicare to make it falsely appear that the patients of Hamilton and her co-conspirators qualified and received home-health services under Medicare. In fact, Hamilton and her co-conspirators paid the patients to sign-up and recertify for home health services when those services were often not medically necessary, not provided or both. The evidence also showed that Hamilton charged home health agencies an illegal kickback in the form of a patient “fee” for certifying and recertifying patients for home-health services that the home health agencies, not the patients, would pay. The scheme resulted in approximately $16 million in false and fraudulent claims for home-health services to Medicare, the evidence showed.
To date, several others have pleaded guilty or been found guilty at trial based on their roles in a larger fraudulent scheme that included Hamilton. Several others who purchased plans of care and other signed medical documents from Hamilton have been charged, found guilty or pleaded guilty to conspiracy to commit health care fraud and/or pay or receive kickbacks.
All defendants are presumed innocent until convicted beyond a reasonable doubt in a court of law.
The FBI and HHS investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas. Trial Attorneys Catherine Wagner, Thomas Tynan and Carlos Lopez of the Fraud Section are prosecuting the case. Trial Attorney Scott Armstrong indicted the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for almost $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Stanislaus County Man Admits to Defrauding Concert Promoters and InvestorsRead the Press Release
SACRAMENTO, Calif. — A Patterson man pleaded guilty today to defrauding concert promoters and investors of $550,000 by claiming to be able to secure well-known artists to perform concerts, U.S. Attorney McGregor W. Scott announced.
Jordan Mouton, aka Big Cheeze, 39, pleaded guilty to wire fraud and aggravated identity theft for falsely representing his ability to arrange concerts featuring well-known entertainment artists. Mouton also pleaded guilty to engaging in monetary transactions involving criminally derived property.
According to court documents, Mouton held himself out as a person of substantial reputation in the entertainment industry who could secure the services of entertainment artists to perform concerts in Asia and elsewhere, including the services of artists known as Snoop Dogg, Maroon 5, and Rihanna, among others. Mouton provided concert promoters and investors numerous fraudulent documents, including documents containing forged signatures of entertainment artists and their managers. For example, Mouton gave one victim an “Artist Management Agreement” containing a forged signature of Snoop Dogg. The agreement purportedly appointed Mouton to serve as Snoop Dogg’s “[m]anager, adviser and representative throughout China and greater Asia.” Mouton provided the same victim with counterfeit passports purportedly belonging to members of Maroon 5. Additionally, Mouton admitted that he gave another victim letters containing forged signatures that purportedly authorized Mouton to book and organize performances by Rihanna and another artist on what Mouton and others referred to as the “Asia Monster Tour” or “Asian Monster Tour.”
This case is the product of an investigation by the Federal Bureau of Investigation with assistance from the U.S. Department of State’s Diplomatic Security Service (DSS). Assistant U.S. Attorney Matthew Thuesen is prosecuting the case.
U.S. District Judge Kimberly J. Mueller is scheduled to sentence Mouton on March 16, 2020. Mouton faces maximum statutory penalties of 20 years in prison and a fine of up to $250,000 or twice the gross gain or loss on the wire fraud charge. For engaging in transactions involving criminally derived property, Mouton faces maximum statutory penalties of 10 years in prison and a fine of up to $250,000 or twice the amount of property involved in the transaction. Finally, the statutory maximum penalties for aggravated identity theft are a mandatory term of two years in prison and a fine of up to $250,000 or twice the gross gain or loss. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
St. Louis Man Sentenced for Tax Refund SchemeRead the Press Release
St. Louis MO --- Tyron F. Kemp, 30, of St. Louis and Riverview, Florida, was sentenced to six months in prison for filing false claims with the Internal Revenue Service as part of a bogus tax refund scheme. Kemp appeared before United States District Judge Audrey F. Fleissig.
In court papers, Kemp admitted to electronically filing 37 false tax returns with the IRS from October 2013 through March 2015. A total of $155,775.00 in refunds were claimed on those returns and funds totaling $54,390.00 were paid out by the IRS which the court ordered him to pay back in restitution. Kemp admitted that he caused those refunds to be paid out to prepaid cards, which he controlled, and that he spent the money, most of it in St. Louis. He electronically filed most of the returns from a location in the 3000 block of Delmar in the City of St. Louis.
Kemp spent most of his adolescent years, including high school, in Tucson AZ. He moved back to St. Louis in 2013 and began filing the false tax returns using names and personal identifiers of persons he knew in Tucson---all without their permission. In addition to compromising names and social security numbers, Kemp made unauthorized use of the names of minor children in claiming dependent exemptions on the returns. He also prepared and submitted W-2 forms with the returns falsely showing wage amounts and taxes withheld in amounts designed to generate refunds. He often showed APAC Customer Services, Inc., one of his former employers in Tucson, as the employer business on those false W-2 forms.
In May, Kemp pled guilty to two false claim charges in which he included the names of individuals he was familiar with in Tucson. Both returns included addresses with which those persons were not associated and W-2 forms falsely showing APAC as the employer. The refunds claimed on those returns were $5,277.20 and $5,044.00, respectively.
The case was investigated by the IRS Criminal Investigation offices in Tucson and St. Louis.
Six people pleaded guilty to crimes related to a health care fraud conspiracy in which Medicaid was billed $48 million for drug and alcohol recovery services, many of which were not provided, not medically necessary, lacked proper documentationRead the Press Release
Six people from Ohio pleaded guilty in federal court to crimes related to a health care fraud conspiracy in which Medicaid was billed $48 million for drug and alcohol recovery services, many of which were not provided, not medically necessary, lacked proper documentation, or had other issues that made them ineligible for reimbursement.
Ryan P. Sheridan, 39, of Leetonia; Jennifer M. Sheridan, 41, of Austintown; Kortney L. Gherardi, 30, of Girard; Lisa M. Pertee, 51, of Sunbury; Thomas Bailey, 45, of Poland, and Arthur H. Smith, 55, of Austintown, are expected to be sentenced in January 2020. All six pleaded guilty to crimes related to their work at Braking Point Recovery Center, which operated drug and alcohol rehabilitation facilities in Austintown and Whitehall, Ohio.
According to the court documents:
Ryan Sheridan was the sole owner of Braking Point Recovery Center, which operated drug and alcohol rehabilitation centers in Austintown and Whitehall, Ohio, that provided detox, intensive outpatient treatment, day treatment and residential living rehabilitation.
Sheridan also owned and operated numerous other businesses, including Breaking Point Health and Fitness LLC and Braking Point Recovery Housing LLC, which owned recovery houses (or “sober houses”) for individuals attempting to maintain abstinence from drugs and alcohol.
As part of being a certified provider, Sheridan agreed to follow the rules and regulations of the Ohio Medicaid Program and the Ohio Department of Mental Health and Addiction Services.
Between January 2015 and October 18, 2017, various defendants submitted or caused to be submitted billings to Medicaid for drug and alcohol services that were: coded to reflect a service more costly than was actually provided; without proper documentation; without proper assessment documents containing valid diagnosis; billings for patients whose records did not contain diagnosis by a physician; related to treatment at unlicensed inpatient beds; billings related to Bailey dispensing of Suboxone even though Bailey did not have the authority to do so; for case management services when, in fact, the clients were working out at Sheridan’s gym; billings based on quotas provided to the nurses by the defendants to bill four to five hours of treatment daily, even if the services were not medically necessary; billing for in-patient detox and drug treatment services that were, in fact, provided in an out-patient setting, among other violations.
Braking Point submitted approximately 134,744 claims to Medicaid for more than $48.5 million in services it claimed to provide between May 2015 and October 2017. The claims caused Medicaid to pay Braking Point more than $31 million. Medicaid suspended payments to Braking Point on October 18, 2017.
The Sheridans, Gherardi, Pertee, Bailey and Smith developed a standard protocol of distributing the same amount of Suboxone to every patient seeking drug treatment immediately upon entering Braking Point’s detox program without being evaluated by a properly licensed physician to determine the medical necessity for the use of Suboxone.
The Sheridans, Gherardi and Bailey used Smith’s DEA data waiver license to dispense more than 3,000 doses of Suboxone in 2017 alone without Smith having seen the patients. Smith held himself out to be Braking Point’s medical director but only went to Braking Point approximately twice a month.
Ryan Sheridan made numerous financial transactions involving money derived from unlawful activities, including health care fraud and conspiracy to commit health care fraud.
Prosecutors are also seeking for forfeit property and proceeds obtained as a result of these crimes, including nearly $3 million, property in Columbiana, Mahoning and Trumbull counties, and eight automobiles, including replicas of vehicles used in the movies “Back to the Future,” “Ghostbusters” and “Batman.”
“These defendants stole tens of millions of dollars from taxpayers through fraudulent billing and other crimes,” U.S. Attorney Justin Herdman said. “They used the drug epidemic plaguing Ohio as a way to line their pockets and profited off the suffering of others.”
“Patients trust that providers of medical services are putting their best interests at heart and are not using them as pawns for profit” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “That trust was cast aside by these defendants as exhibited by their guilty pleas. The OIG will continue to work with our federal, state and local partners to ensure that those who commit criminal acts to unjustly enrich themselves at patient and taxpayer expense are held accountable”.
“These guilty pleas clearly indicate these individuals intended to fraudulently bill and deceive taxpayers out of millions of dollars,” said FBI Special Agent in Charge Eric B. Smith. “This should send a strong message to anyone who intends to cheat the system for their own benefit. The FBI and our law enforcement partners are focused on stopping those that commit healthcare fraud.”
“Ryan Sheridan and his co-defendants wreaked havoc on the integrity of our health care system for their own personal gain,” said Bryant Jackson, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “Health care fraud affects every American and today’s announcement illustrates that the IRS and our law enforcement partners are steadfast in our commitment to detecting and dismantling health care fraud schemes and holding perpetrators of these crimes accountable.”
“Health care fraud and the diversion of prescription medications are an increasing threat to our community,” said DEA Special Agent in Charge Keith Martin. “Dishonest and greedy healthcare providers who abuse the system for their own personal gain will not be tolerated and remain a priority for the DEA.”
“The victim here isn’t just the health care system, it’s the people struggling with addiction who needed a beacon of hope but instead found themselves at the center of a shady scheme,” Ohio Attorney General Dave Yost said. “I’m grateful for U.S. Attorney Herdman’s work to secure justice for these victims and their loved ones.”
The U.S. Department of Health and Human Services – Office of Inspector General, Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigations, Drug Enforcement Administration and the Ohio Attorney General’s Medicare Fraud and Corruption Unit investigated this case. It is being prosecuted by Assistant U.S. Attorneys Mark Bennett, Jason Katz and Special Assistant U.S. Attorney Jonathan Metzler.
San Manuel, Arizona Man Sentenced to 49 Months for Cocaine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Juan Alberto Chavez, age 43, of San Manuel, Arizona, was sentenced to 49 months’ imprisonment and 3 years of supervised release for Possession With Intent To Distribute Cocaine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A). The charges arose from an investigation by the Oklahoma Highway Patrol and the Drug Enforcement Administration (“DEA”).
The Indictment alleges that on or about April 17, 2019, within the Eastern District of Oklahoma, the defendant knowingly and intentionally possessed with intent to distribute 5 kilograms or more of a mixture or substance containing a detectable amount of cocaine, a Schedule II controlled substance.
United States Attorney Brian J. Kuester said, “This defendant’s plan to deliver a large quantity of cocaine and receive profits for himself was brought to an abrupt halt by the great work of the Oklahoma Highway Patrol with the assistance of the DEA. Regardless of the role one takes on within a drug trafficking organization there will be consequences to pay.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Ryan Heatherman represented the United States.Rochester Man Pleads Guilty to Fraud, Conspiracy, and Money Laundering in Rochester Federal Court; Charged in Federal Court in Pennsylvania as A Result of His Role in Masterminding A Nationwide, Multi-Million Dollar Ponzi SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr., of the Western District of New York, together with David J. Freed, U.S. Attorney for the Middle District of Pennsylvania, announced today that Perry Santillo, 39, of Rochester, NY, pleaded guilty, before Chief U.S. District Judge Frank P. Geraci, Jr. for the Western District of New York, to conspiracy to commit mail fraud, mail fraud, and conspiracy to launder money. The charges carry a maximum penalty of 20 years in prison and a $1,000,000 fine. As part of his plea in the Western District of New York, Santillo has also agreed to plead guilty to a mail fraud charge, which is also relating to his Ponzi scheme activities, that is currently pending against him in the Middle District of Pennsylvania. That charge carries a maximum penalty of 20 years and a $500,000 fine.
Assistant U.S. Attorney John J. Field, who is handling the case in the Western District of New York, and Assistant U.S. Attorney Sean A. Camoni, who is handling the case in the Middle District of Pennsylvania, stated that between January 2008 and June 2018, the defendant conspired with an individual identified as C.P., and others, to obtain money through an investment fraud commonly known as a Ponzi scheme. Specifically, in 2007, Santillo and C.P., as equal partners, formed a business known as Lucian Development in Rochester. Prior to approximately July 2007, Lucian Development raised millions of dollars from investors in Rochester, and elsewhere, by soliciting investments for City Capital Corporation, a business operated by Ephren Taylor. In July 2007, Santillo and C.P. were advised by Ephren Taylor that their investors’ money had been lost. In response, in August 2007, Santillo and C.P. agreed to acquire the assets and debts of City Capital Corporation. The acquisition proved financially ruinous, with the amount of the acquired debt far exceeding the value of the acquired assets. Taylor was later prosecuted and convicted of operating a Ponzi scheme.
Subsequently, Santillo and C.P. chose not to disclose the truth to investors that their money, entrusted to Lucian Development for investment in City Capital Corporation, was gone. Instead, the defendant and C.P. continued to solicit ever-increasing amounts of money from new investors in an unsuccessful attempt to recoup the losses. In order to find potential investors to solicit and defraud, Santillo and C.P. purchased businesses from established investment advisors or brokers who were looking to exit their businesses. Between approximately 2008 and September 2017, Santillo and C.P., using money obtained from prior investors, purchased the businesses of at least 15 investment advisors or brokers, located in Tennessee, Ohio, Minnesota, Nevada, California (5 businesses), Florida, South Carolina (2 businesses), Texas, Pennsylvania, Maryland, and Indiana.
The investment offerings pitched by Santillo and C.P. consisted principally of unsecured promissory notes and preferred stock issued by various entities controlled by Santillo and C.P. Potential investors were offered an apparent array of investment options to create the illusion of a diversified investment portfolio. Those investment options included products issued by purported issuers such as First Nationle Solutions (FNS), Percipience Global Corporation, United RL Capital Services, Boyles America, Middlebury Development Corporation, and NexMedical Solutions, among others. None of these issuers had substantial bona fide business operations or used investor money in the manner and for the purposes represented to investors. To the extent that an issuer may have had some minor legitimate business activities, it was not profitable and insufficient revenues were generated to pay investors any returns (let alone return the principal amounts of their investments). Santillo, and others, sold fraudulent investments from these issuers to investors who were told that the money received would be used to conduct the purported business of each respective issuer. In fact, however, such issuers were the defendant’s various Ponzi schemes. Santillo, and others working with him, fraudulently induced investors to invest at least $46,000,000 in the First Nationle offering since February 2012, $22,000,000 in the Percipience offering since July 2012, and $25,000,000 in the United RL offering since March 2015.
Over the years, to keep the Ponzi scheme from being detected, a substantial portion of incoming new investor monies were depleted by making promised interest and other payments to earlier investors. Most of the rest of incoming investor money was used by Santillo, C.P. and other co-conspirators: to finance lavish lifestyles of the conspirators, their families and associates; to expand the scheme by purchasing investment advisor/brokerage businesses to obtain access to fresh investors; and to pay operating expenses – salaries for a sales force and administrative staff, office rents and related expenses, housing for employees, and interest on loans—all of which were used to keep the scheme going and maintain a façade of legitimate business operations.
Very little investor money was deployed in productive investments, and when so deployed, the investments yielded meager income and were not profitable, or failed altogether. The Ponzi scheme was headquartered and based out of locations in Rochester, with a number of satellite offices around the country. Administrative and banking functions were largely performed out of Rochester. The conspiracy employed a variety of sales people, including Santillo and C.P., who traveled around the country to meet with and solicit new investors. In the Middle District of Pennsylvania, Santillo, and others, conducted their fraud scheme under the guise of an investment business located in Scotrun, Monroe County, using various business names, including Advice and Life Group, Poconos Investments, First American Securities, and Financial Planners Group of America.
Between January 2012 and June 19, 2018, Santillo and C.P. obtained at least $115.5 million from approximately 1000 investors. By the time the scheme collapsed in late-2017/early 2018, Santillo and C.P., doing business through an array of corporate entities, had returned approximately $44.8 million to investors as part of their scheme, but continued to owe investors approximately $70.7 million in principal.
Among the Rochester/Pennsylvania victims area victims of the Ponzi scheme were the following:
• A resident of Webster, NY with a total asset value of $94,341.89 with a fictitious company known as First Nationle Solutions (FNS), which, as of December 31, 2017, was worthless or close to worthless, and
• A resident of Victor, NY and his wife invested approximately $221,758.67 with FNS and Middlebury Development. The couple received three payments of $2500 but lost approximately $214,258.67.
• Since May 2015, Santillo and others fraudulently raised at least $3,000,000 from approximately 30 investors in Pennsylvania, including the MDPA.Santillo and C.P. controlled hundreds of different business bank accounts opened under numerous different business names at various financial institutions, including but not limited to Bank of America, Citizens Bank, Genesee Regional Bank and ESL Federal Credit Union. Santillo and C.P. directed and authorized the transactions that occurred in the accounts, including deposits, withdrawals, check writing and funds transfers. The various bank accounts were used to transfer money from one account to another. Incoming investor money was routinely transferred through several accounts before the funds were finally spent on whatever purpose Santillo and/or C.P. authorized. By moving investors funds through various accounts in various entity names, Santillo and C.P. were able to, conceal and obscure the fact that new investor money was being used to repay earlier investors, finance the operations of the Ponzi scheme, and fund their lifestyles.
“Today’s announcement reaffirms the shared commitment that United States Attorney’s Office’s across the country have to discovering those who hide behind deceptive fraud schemes in an effort to bilk investors out of their hard earned money and savings,” noted U.S. Attorney Kennedy. “This investigation and these pleas should make clear to fraudsters everywhere that you cannot hide and that we will work together across jurisdictions to find you and to bring you to justice.”
“As he did in districts throughout the country, Perry Santillo came to the Middle District of Pennsylvania and purchased a business from a trusted investment advisor for the sole purpose of finding new victims to exploit,” said U.S. Attorney Freed. “This massive nationwide fraud was committed for one simple reason – to enrich Santillo and his confederates. This was a scam from day one, and Santillo and the others knew it. Thankfully, federal law enforcement was on the case. I want to particularly thank my friend and colleague U.S. Attorney J.P. Kennedy and his team for their hard work on this case and commend all of the federal agencies involved for their industry and cooperative efforts.”
“The United States Postal Inspection Service is committed to protecting consumers from falling victim to fraud, including illegitimate investment schemes,” stated Postal Inspector-in-Charge Joseph W. Cronin. “Along with our law enforcement counterparts, Postal Inspectors will always pursue individuals who utilize the US Mail to steal the hard earned money of our customers through false and misleading representations."
“Greed fueled Perry Santillo’s crimes and became the common thread throughout this investigation,” said Gary Loeffert, Special Agent-in-charge of the FBI Buffalo Office. “Everyone touched by his greed will forever feel the painful consequences. Santillo’s plea serves as a teachable moment for those criminals who believe they can stay ahead of their Ponzi schemes.”
“Defendants like Perry Santillo lure innocent investors by taking full advantage of their trust and hopes for a better financial future,” said Michael T. Harpster, Special Agent- in-Charge of the FBI’s Philadelphia Division. “As victims envision their nest eggs growing, these scammers are diverting, even pocketing, that hard-earned money. The FBI and our law enforcement partners will continue to bring such financial fraud to light, and its perpetrators to justice.”
IRS-CI Special Agent in Charge Jonathan D. Larsen said, “Tracing the complex flow of money between hundreds of bank accounts is vital in unraveling a Ponzi scheme such as the one perpetrated by Mr. Santillo, and we are proud of the excellence displayed by our team. The collaboration and partnership of our skilled financial investigators and prosecutors provides a formidable adversary in the fight for victims as seen in this case.”
“Perry Santillo, Jr., conspired with his co-defendants by engaging in a Ponzi scheme that swindled unwitting investors out of tens of millions of dollars in retirement savings. The investors liquidated their retirement accounts to invest with companies Santillo and his-co-conspirators operated. We will continue to work with our law enforcement partners to protect the integrity of employee benefit plans,” said Michael C. Mikulka, Special Agent-in-Charge, New York Region, U.S. Department of Labor Office of Inspector General.
“The alleged acts by the perpetrator endangered the financial security of hard-working, innocent New Yorkers and their families,” said Superintendent of Financial Services Linda A. Lacewell. “Anyone who commits insurance fraud by definition is acting against the interest of consumers. I commend the investigative work by DFS in coordination with fellow law enforcement agencies for apprehending the suspect.”
The plea is the result of an investigation by the United States Postal Inspection Service, under the direction of Inspector-in-Charge Joseph W. Cronin of the Boston Division; the Federal Bureau of Investigation, Buffalo Division, under the direction of Special Agent-in-Charge Gary Loeffert, and FBI Scranton Division; the Internal Revenue Service, Criminal Investigation Division, under the direction of Jonathan D. Larsen, Special Agent-in-Charge; the U.S. Department of Labor, Office of Inspector General, Office of Investigations – Labor Racketeering and Fraud, under the direction of Michael C. Mikulka, Special Agent-in-Charge, New York Region, the New York State Department of Financial Services, under the direction of Superintendent Linda A. Lacewell; and the Securities and Exchange Commission.
Sentencing in the Western District of New York is scheduled for March 6, 2020, before Chief Judge Geraci. The arraignment date in the Middle District of Pennsylvania has not yet been set.
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Readout of United States-Australia Industry Roundtable Discussion on Trusted Technology EcosystemsRead the Press Release
Today, Attorney General William P. Barr and Australian Minister for Home Affairs Peter Dutton hosted a government-industry roundtable discussion titled, “Shaping a Trusted Technology Ecosystem,” with more than a dozen representatives from the tech-industry landscape.
“Communications networks and supply chains are increasingly vast and complex, and even aggressive efforts by responsible governments will not be able to identify and neutralize every threat,” said Attorney General William P. Barr. “What this highlights is the need to facilitate trusted markets and secure sources of supply to meet the continuing demands we have for innovation and security.”
This dialogue was a critical step in jointly addressing complex supply chain challenges faced by both nations. The collaborative discussion presented an opportunity for industry, Australia and the United States to work together on solutions to ensure an open marketplace, achieve a diverse range of secure technology options, and enhance global technology markets characterized by trust, transparency, and fair competition.
“We already rely on internet-based technologies, but the next suite of developing technologies represent a new challenge in the way that they are securely integrated into our societies and economies,” said Home Affairs Minister Peter Dutton. “It’s clear our existing policy settings are not keeping pace with this technological change and we should be under no illusions that securing these new technologies is a simple task. Government and industry must work together to identify practical solutions to this challenge, and this dialogue today has been a vital first step towards that goal.”
Areas of potential cooperation discussed included more strategically shaping international standards bodies; the creation of public-private partnerships or international consortia that can deliver alternative and trusted solutions to market; and coordinated investment in research and development to support and further our innovative edge.
Also discussed were the concerted, collective and coordinated actions from both government and industry required to achieve meaningful change. The dialogue was a critical step in jointly addressing global supply chain challenges and highlighting the opportunity to work together on solutions.
Rapid City Man Sentenced on Firearm ChargeRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Joseph Laroche, age 36, was sentenced on October 1, 2019, to 4 years and 9 months in federal prison, followed by 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
The conviction stems from Laroche, a previously convicted felon prohibited from possessing firearms, knowingly possessing a Jimenez Arms, model J.A. Nine .9x19mm Luger caliber, semi-automatic pistol, which was found in Laroche’s vehicle during a traffic stop in Rapid City on November 22, 2018.
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 its 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 local communities to develop effective, locally-based strategies to reduce violent crime.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Ben Patterson prosecuted the case.
Laroche was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced for Attempted Receipt of Child PornographyRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Attempted Receipt of Child Pornography was sentenced on October 1, 2019, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Patrick Hirl Adkins, age 49, was sentenced to 5 years in federal prison, followed by 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
The conviction stemmed from Adkins communicating with someone he believed to be a 14-year-old girl for the purpose of engaging in sexual acts, and requesting that the minor send pornographic images to Adkins.
The investigation was conducted by the Internet Crimes Against Children Taskforce. Assistant U.S. Attorney Sarah Collins prosecuted the case.
Adkins was immediately remanded to the custody of the U.S. Marshals Service.
Prince George’s County Delegate Facing Federal Wire Fraud ChargeRead the Press Release
Greenbelt, Maryland – A federal criminal information was filed today charging Maryland State Delegate Tawanna P. Gaines, age 67, of Berwyn Heights, Maryland, with a federal wire fraud charge. An initial appearance and arraignment is expected to be scheduled later this week in U.S. District Court in Greenbelt.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
According to the criminal information, Gaines was a Maryland State Delegate from December 2001 through the present, representing District 22, which covered portions of Prince George’s County. Over her years in the House of Delegates, Gaines held many committee assignments, including vice-chair of the Appropriations Committee and Assistant Majority Leader. The “Friends of Tawanna P. Gaines” (FTPG) candidate committee was the name of the finance entity for the Gaines campaign for Maryland State Delegate from June 2002 to the present. FTPG was a regulated state election campaign committee with a designated bank account. Separately, Gaines held exclusive control over a PayPal account used to accept electronic donations to FTPG which was not disclosed in State campaign finance filings.
The criminal information alleges that from at least January 2015 through April 2018, Gaines defrauded the campaign and its contributors of more than $22,000. Specifically, the information alleges that Gaines solicited campaign contributions representing that the funds would be used to facilitate her reelection and maintain her leadership positions within the Maryland General Assembly. Gaines allegedly accepted donations from campaign contributors into the FTPG PayPal account, then without authorization and in violation of Maryland campaign finance laws, utilized campaign funds from the FTPG account for her personal use. According to the criminal information, Gaines received campaign contributions and converted them to her own use without causing the contributions to be identified on reports made to the Maryland State Board of Elections.
If convicted, Gaines faces a maximum sentence of 20 years in federal prison for wire fraud.
A criminal information is not a finding of guilt. An individual charged by criminal information is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Thomas P. Windom, who is prosecuting the case.
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Previously Convicted Felon from Essex County Sentenced to 10 Years in Prison for Illegally Possessing FirearmRead the Press Release
NEWARK, N.J. – A Newark man was sentenced today to 120 months in prison for possessing a firearm as a previously convicted felon, U.S. Attorney Craig Carpenito announced.
Richard D. Williams, 41, previously pleaded guilty before U.S. District Judge John Michael Vazquez to an indictment charging him with one count of possession of a firearm as a previously convicted felon. Judge Vazquez imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On Feb. 18, 2017, law enforcement officers spotted a white Infiniti car that matched the make, model, color and year of a car that had previously been reported stolen. When police ran the license plate on the vehicle, they determined it belonged to a different car, suggesting that the license plate on the Infiniti had been switched. Police officers attempted to stop the vehicle, but it took off at a high rate of speed. The police pursued the car in a high-speed chase through Newark and into East Orange, New Jersey. Several other police cars and a Newark police department helicopter joined the pursuit.
The police chased the car for 10 minutes until it was traveling east on South Orange Avenue near Bergen Street in East Orange, New Jersey. The car crossed into oncoming traffic and collided head on with an unmarked Newark police department vehicle. The crash caused both the Infiniti and Newark police vehicle to catch fire. The three Newark police officers inside the police vehicle all suffered injuries but exited their vehicle safely.
Williams got out of the Infiniti and tried to flee, but was quickly caught and detained by a Newark police officer until a N.J. State Police trooper joined him. Williams was found to have a black .38-caliber revolver, loaded with four bullets, in his waistband. Williams had at least one prior felony conviction in federal court.
In addition to the prison term, Judge Vazquez sentenced William to three years of supervised release.
U.S. Attorney Carpenito credited task force officers of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson, with the investigation leading to today’s sentencing. He also thanked officers of the Newark Police Department, under the direction of Public Safety Director Anthony F. Ambrose, for their assistance.
The government is represented by Assistant U.S. Attorneys Jason S. Gould and Catherine R. Murphy of the U.S. Attorney’s Office Criminal Division in Newark.
Omaha Man Sentenced for Distributing MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that Agustin Jaime Enriquez-Jimenez, 44, of Omaha, Nebraska, was sentenced today for possession with intent to distribute 50 grams or more of actual methamphetamine. Senior United States Senior District Judge Laurie Smith Camp sentenced Enriquez-Jimenez to 70 months’ imprisonment. There is no parole in the federal system. In addition to his prison term, Enriquez-Jimenez will serve five years of supervised release following his release from prison. He must also forfeit to the United States Government $10,229 in U.S. currency.
Using a confidential informant, Omaha Police Officers made three one-ounce controlled buys of methamphetamine from Enriquez-Jimenez. Officers also seized more than ten ounces of methamphetamine and $10,229 in U.S. currency during a search of his residence on October 16, 2018.
This case was investigated by the Omaha Police Department.
North Attleboro Man Indicted on Child Pornography OffensesRead the Press Release
BOSTON – A North Attleboro man was charged on Thursday, Oct. 3, 2019, with child pornography offenses.
Nicholas Robillard, 39, was indicted on one count each of distribution and possession of child pornography. Robillard made an initial appearance on Friday, Oct. 5, 2019, before Magistrate Judge Judith G. Dein, and was ordered detained in state custody pending related state charges.
As alleged in charging documents, Robillard distributed and possessed child pornography on various dates between Oct. 16, 2018 and Feb. 14, 2019.
Based on his prior record, Robillard faces a minimum sentence of 15 years and up to 40 years in prison on the charge of distribution of child pornography, and a minimum of 10 years and up to 20 years in prison on the charge of possession of child pornography. Both offenses provide for a minimum of five years and up to a lifetime of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police made the announcement today. The Bristol County District Attorney’s Office provided assistance with the investigation. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit, is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Newark Drug Dealer Sentenced to 5 1/2 Years in Federal Prison for Deadly HeroinRead the Press Release
WILMINGTON, Del. – United States Attorney David C. Weiss announced that Theophil Hollis, 30, of Newark, was sentenced on October 3, 2019 to 5 ½ years in federal prison by U.S. Chief Judge for the District of Delaware Leonard P. Stark. Hollis had previously pled guilty to two counts of possession with intent to deliver fentanyl and heroin.
According to court documents, between September 9, 2016 and December 7, 2016, Hollis sold heroin laced with fentanyl in baggies branded with the stamp “Block Party.” A 27-year old Newark man ingested the contents of one of those “Block Party” branded baggies, overdosed, and died.
“This case highlights the dangers inherent in the drug trade and the devastating consequences heroin and fentanyl have on our community,” said U.S. Attorney Weiss. “We will continue to vigorously prosecute drug dealers whose actions result in death. While the sentence in this case will never return the life that was lost, it should serve notice that drug dealers will be held accountable for the harm they inflict. We commend our law enforcement partners for their hard work and dedication in making our streets safer.”
“As U.S. Attorney Weiss noted, drug-trafficking is an inherently dangerous business for those that distribute dangerous drugs such as fentanyl and the people that use these same drugs. Hollis was convicted of distributing fentanyl that lead to the fatal overdose of another person,” said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “For his crimes, Hollis will now serve time in Federal prison.”
The DEA and the New Castle County Police Department investigated this case, which was prosecuted by Assistant U.S. Attorney Dan Logan.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No.17-12.
Mexican National Pleads Guilty to Conspiring to Transport Four Kilograms of Heroin into the United StatesRead the Press Release
FRESNO, Calif. — Bertoldo Arellanes-Perez, 32, of Chihuahua, Mexico pleaded guilty today to conspiring to possess with the intent to distribute heroin, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Feb. 22, Arellanes-Perez and two other individuals traveled to the United States from Mexico with four kilograms of heroin. Before he traveled to the United States, Arellanes-Perez brokered the sale of the heroin in a series of phone calls. In the recent past, Arellanes-Perez transported narcotics to other locations in the United States, including Colorado.
This case is the product of an investigation by the Drug Enforcement Administration, and Homeland Security Investigations (HSI). The U.S. Attorney’s Office for the Eastern District of Tennessee also assisted in the investigation. Assistant U.S. Attorney Thomas Newman is prosecuting the case.
Arellanes-Perez is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Jan. 13, 2020. Arellanes-Perez faces a mandatory minimum 10 year sentence up to a lifetime terms, and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Meridian Man Sentenced to over 15 Years in Prison for Possession and Distribution of Crack Cocaine and MethamphetamineRead the Press Release
Meridian, Miss. – Jermaine Scott a/k/a “Jitty,” 41, was sentenced Friday by Chief U.S. District Judge Daniel P. Jordan III to 188 months in federal prison, followed by 5 years of supervised release, for possession and distribution of crack cocaine and methamphetamine, announced U.S. Attorney Mike Hurst and Drug Enforcement Administration (DEA) Special Agent in Charge Brad L. Byerley. Scott was also ordered to pay a $3,000 fine.
On May 9, 2017, Scott met with a confidential source for the East Mississippi Drug Task Force at his residence in Meridian. Scott showed the confidential source how to make crack. Once the crack was complete, he sold the confidential source the crack and some methamphetamine for $1,500. The Drug Enforcement Administration laboratory confirmed the crack to be approximately 30.20 grams with 55% purity and the methamphetamine to be approximately 28.89 grams with 98% purity.
Scott was subsequently charged with one count of distributing 28 grams or more of a mixture or substance containing cocaine base and one count of distributing at least 5 grams or more of actual methamphetamine, a Schedule II controlled substance. He pled guilty before Judge Jordan on June 3, 2019.
The case is the result of an investigation by the Drug Enforcement Administration and the East Mississippi Drug Task Force. It was prosecuted by Assistant U.S. Attorney Keesha Middleton.
Meadville Felon Admits Possessing Firearms, Unregistered Silencers and Products to Make MethRead the Press Release
Erie, Pa. - A former resident of Meadville, Pennsylvania, pleaded guilty in federal court to charges of violating federal firearms and drug laws, United States Attorney Scott W. Brady announced today.
Charles Joseph Butter, 43, pleaded guilty to three counts before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that on September 7, 2017, Butter possessed several firearms while being a convicted felon and possessed silencers not registered to him in the National Firearms Registration and Transfer record. In addition, he also possessed pseudoephedrine with intent to manufacture methamphetamine and attempted to manufacture methamphetamine.
Project Safe Neighborhood (PSN) is the centerpiece of the Department of Justice’s violent crime reductions 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 prevent and reentry programs for lasting reductions in crime.
Judge Cercone scheduled sentencing for March 23, 2020. The law provides for a total sentence of 50 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Pennsylvania State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that led to the prosecution of Butter.
McHenry County Farmer Sentenced to Three Years in Prison, Ordered to Pay $2.96 Million Restitution to BankRead the Press Release
URBANA, Ill. – A McHenry County, Ill., farmer, Timothy A. Cosman, 44, has been ordered to serve 36 months in federal prison for defrauding a Champaign, Ill., bank. Cosman appeared in federal court in Urbana on Oct. 4, for sentencing. Cosman was also ordered to pay restitution to the bank in the amount of $2.96 million. Cosman was allowed to remain on bond until he reports to the federal Bureau of Prisons on Jan. 7, 2020, to begin serving his sentence.
On March 27, 2019, Cosman, of Harvard, Ill., near the Illinois –Wisconsin border, pleaded guilty to actions he took from February 2014 to April 2016, to defraud Busey Bank of Champaign to secure loans. Cosman inflated his assets and created and submitted false documents to make the bank believe its loans would be more secure than they were. To inflate his assets, Cosman made false claims about his ownership in family companies; claimed the loans would be secured by farm equipment he owned, when he did not own the equipment; claimed he was the beneficiary of a $1.56 million promissory note that he created and forged; and, claimed a $450,000 loan for cattle would be secured by cattle, however, no cattle were purchased.
The Federal Deposit Insurance Corporation (FDIC) Office of Inspector General investigated the case with the cooperation of Busey Bank. Assistant U.S. Attorney Ryan Finlen represented the government in the prosecution.
Marina Owner Who Lied to the SBA to Receive Disaster Loan in Connecticut with Hurricane Sandy is SentencedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Hannibal “Mike” Ware, Inspector General, Small Business Administration, announced that SCOTT SUNDHOLM, 39, of Old Saybrook, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to two years of probation and a $5,000 fine for making false statements for the purpose of obtaining a Small Business Administration loan.
According to court documents and statements made in court, Sundholm owns and operates S&S Marine, LLC, a marina located in Old Saybrook. In 2016, Sundholm applied for and received a disaster loan from the Small Business Administration after claiming that Hurricane Sandy, which struck Connecticut in late October 2012, caused a tidal surge at the marina and damaged floating boat docks, a boat ramp, a bath house, a metal shop building and other structures. Sundholm also claimed that the bath house he had replaced after the hurricane was of the same size and quality as to what was in place prior to the storm.
An investigation revealed that certain claims made by Sundholm about damage that Hurricane Sandy caused his marina were not true. Sundholm had demolished the marina’s pre-existing bath house in September 2012, more than a month before Hurricane Sandy, and the bath house was dilapidated and not similar in size and quality to the new bath house that Sundholm subsequently built. In addition, no floating boat docks or boat ramps existed at the marina prior to the hurricane.
Sundholm has paid full restitution of $1,653,257.10 to the Small Business Administration.
This matter was investigated by the Small Business Administration Office of Inspector General and was prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.
Los Angeles Man Pleads Guilty to Conspiring to Distribute Narcotics on the Dark WebRead the Press Release
FRESNO, Calif. — William James Farber, 39, of Los Angeles, pleaded guilty today to conspiring to distribute narcotics, U.S. Attorney McGregor W. Scott announced.
According to court documents, Farber and his co-conspirators, operating under the name PureFireMeds, sold narcotics including marijuana, cocaine, oxycodone, hydrocodone, psilocybin, MDMA (Ecstasy), LSD, and ketamine on dark web marketplaces, including Silk Road. After Silk Road was shut down by law enforcement in Oct. 2013, Farber and his co‑conspirators began selling on the AlphaBay dark web marketplace under the name HumboldtFarms. It became one of the largest vendors on AlphaBay, completing tens of thousands of orders for marijuana on the site to customers throughout the United States.
This case is the product of an investigation by Homeland Security Investigations (HSI), the U.S. Postal Inspection Service in Los Angeles, the Los Angeles Police Department, and the Bakersfield Police Department with assistance from the Los Angeles Joint Regional Intelligence Center. Assistant U.S. Attorneys Grant B. Rabenn and Ross Pearson are prosecuting the case.
Farber is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on April 20, 2020. Farber faces a maximum statutory penalty of 20 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Leonard Wayne Mullinax Sentenced to 235 Months on Methamphetamine, Firearm and Money Laundering ChargesRead the Press Release
GREENEVILLE, Tenn. – On October 7, 2019, Leonard Wayne Mullinax, 49, of Gaffney, South Carolina, was sentenced by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 235 months in federal prison following convictions for his role in a conspiracy to distribute methamphetamine, launder money and possessing firearms in furtherance of his drug trafficking.
According to his plea agreement on file with the U.S. District Court, Mullinax was the out of state source of supply for this particular methamphetamine conspiracy operating in the Eastern District of Tennessee. Following the indictment in this case, law enforcement officers searched Mullinax’s residence and place of business in Gaffney, South Carolina and recovered an approximate kilogram of methamphetamine, 28 firearms, ammunition, a drug ledger, a vacuum sealer and other miscellaneous items of paraphernalia. Mullinax stipulated that he was accountable for at least 4 but less 4.5 kilograms of methamphetamine and that he had been supplying co-defendant Edward Walters, 48, of Surgoinsville, Tennessee for about a year. Edward Walters is currently pending sentencing.
Other defendants who have been previously sentenced in this methamphetamine trafficking conspiracy include Jamie Nicole Wilson, 42, of Gaffney, South Carolina, Jason Ronald Burchfield, 39, of Hawkins County, Tennessee, Matthew Glenn Russell, 27, of Rogersville, Tennessee, Amber Lynn Hall, 29, of Church Hill, Tennessee, Jimmy Lee Gray, 37, of Surgoinsville, Tennessee and Michael James Walters, 46, of Bristol, Tennessee, who were sentenced to 200 months, 149 months, 135 months, 135 months, 120 months and 120 months, in federal prison respectively.
Law enforcement agencies participating in the investigation included the Federal Bureau of Investigation (FBI), Hawkins County Sheriff’s Office, Hamblen County Sheriff’s Office, Bureau of Alcohol, Tobacco and Firearms (ATF), United States Postal Inspector, Third District Judicial Drug Task Force, Cherokee County, South Carolina Sheriff’s Office and the United States Marshal Service. Assistant U.S. Attorney Wayne Taylor represented the United States.
This case was a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
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Kings County and Tennessee Residents Plead Guilty to Firearm Trafficking ChargesRead the Press Release
FRESNO, Calif. — Rafael Sanchez, 40, of Kettleman City; Victor Luna, 25, and Ashley Sanchez, 23, both of Lenoir City, Tennessee pleaded guilty today to conspiring to traffic in firearms by an unlicensed person, and Rafael Sanchez also pleaded guilty to unlawfully possessing a firearm as a convicted felon, U.S. Attorney McGregor W. Scott announced.
According to court documents, from April 2016 until March 2018, Tennessee-based co‑conspirators Victor Luna, Ashley Sanchez, Juan Gonzalez-Mejia, and Alexis Sanchez assisted in purchasing firearms in Tennessee that were shipped to California. At the direction of Rafael Sanchez, Victor Luna and Juan Gonzalez-Mejia purchased firearms in Tennessee that the other co-conspirators packaged and mailed to Rafael Sanchez in California. Rafael Sanchez then sold the firearms to individuals in California. Rafael Sanchez also pleaded guilty to unlawfully possessing a firearm after having been convicted a felony violation of assault with a deadly weapon in 1999. Rafael Sanchez admitted in his plea that, despite knowing he could not lawfully possess a firearm, he directed others to mail firearms to him in California, and on March 8, 2018, he was in possession of a ROMARM Cugir, Model Mini Draco.
On May 6, 2019, Juan Gonzalez-Mejia pleaded guilty to conspiracy to traffic in firearms by an unlicensed person and is scheduled to be sentenced on Dec. 9. On Sept. 30, Alexis Sanchez pleaded guilty to conspiracy to traffic in firearms by an unlicensed person and conspiracy to distribute narcotics. She is scheduled for sentencing on Dec. 16.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Federal Bureau of Investigation. The U.S. Postal Inspection Service, Lenoir City Police Department in Tennessee, Homeland Security Investigations (HSI), and the U.S. Attorney’s Office for the Eastern District of Tennessee assisted in the investigation. Assistant U.S. Attorneys Thomas Newman and Stephanie Stokman are prosecuting the case.
Sentencing for today’s defendants is scheduled for Jan. 6, 2020. Victor Luna, Ashley Sanchez, and Rafael Sanchez face a maximum statutory penalty of five years in prison and a $250,000 fine related to the conspiracy to traffic in firearms by an unlicensed person. Rafael Sanchez also faces maximum statutory penalty of 10 years in prison and a $250,000 fine related to the conspiracy to traffic in firearms by an unlicensed person. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
Kings County and Tennessee Residents Plead Guilty to Firearm Trafficking ChargesRead the Press Release
FRESNO, Calif. — Rafael Sanchez, 40, of Kettleman City; Victor Luna, 25, and Ashley Sanchez, 23, both of Lenoir City, Tennessee pleaded guilty today to conspiring to traffic in firearms by an unlicensed person, and Rafael Sanchez also pleaded guilty to unlawfully possessing a firearm as a convicted felon, U.S. Attorney McGregor W. Scott announced.
According to court documents, from April 2016 until March 2018, Tennessee-based co‑conspirators Victor Luna, Ashley Sanchez, Juan Gonzalez-Mejia, and Alexis Sanchez assisted in purchasing firearms in Tennessee that were shipped to California. At the direction of Rafael Sanchez, Victor Luna and Juan Gonzalez-Mejia purchased firearms in Tennessee that the other co-conspirators packaged and mailed to Rafael Sanchez in California. Rafael Sanchez then sold the firearms to individuals in California. Rafael Sanchez also pleaded guilty to unlawfully possessing a firearm after having been convicted a felony violation of assault with a deadly weapon in 1999. Rafael Sanchez admitted in his plea that, despite knowing he could not lawfully possess a firearm, he directed others to mail firearms to him in California, and on March 8, 2018, he was in possession of a ROMARM Cugir, Model Mini Draco.
On May 6, 2019, Juan Gonzalez-Mejia pleaded guilty to conspiracy to traffic in firearms by an unlicensed person and is scheduled to be sentenced on Dec. 9. On Sept. 30, Alexis Sanchez pleaded guilty to conspiracy to traffic in firearms by an unlicensed person and conspiracy to distribute narcotics. She is scheduled for sentencing on Dec. 16.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Federal Bureau of Investigation. The U.S. Postal Inspection Service, Lenoir City Police Department in Tennessee, Homeland Security Investigations (HSI), and the U.S. Attorney’s Office for the Eastern District of Tennessee assisted in the investigation. Assistant U.S. Attorneys Thomas Newman and Stephanie Stokman are prosecuting the case.
Sentencing for today’s defendants is scheduled for Jan. 6, 2020. Victor Luna, Ashley Sanchez, and Rafael Sanchez face a maximum statutory penalty of five years in prison and a $250,000 fine related to the conspiracy to traffic in firearms by an unlicensed person. Rafael Sanchez also faces maximum statutory penalty of 10 years in prison and a $250,000 fine related to the conspiracy to traffic in firearms by an unlicensed person. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
Justice Department Seeks to Shut Down Georgia Tax Return PreparersRead the Press Release
The United States has filed a civil suit in the Middle District of Georgia seeking to bar Stacy Lee and Heather Lee from owning or operating a tax return preparation business, and preparing tax returns for others, the Justice Department announced today.
The complaint alleges that Stacy Lee has operated her tax return preparation stores under the names of Fast Track Tax Service in Talbotton and TimeLee Tax Service in Columbus.
The complaint further alleges that the defendants fabricate deductions, businesses and related profit or losses, and claim various false credits, including education, energy and childcare credits. By repeatedly underreporting tax liabilities and claiming bogus refunds on behalf of their customers, the defendants have caused the United States to lose substantial tax revenue, according to the complaint.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. The IRS has information on its website for choosing a tax preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Justice Department Files Brief in Maine School Choice AppealRead the Press Release
The Department of Justice today filed a friend-of-the-court brief in the United States Court of Appeals for the First Circuit, explaining that a Maine law that bans religious schools from the state’s school tuition program violates the First Amendment of the United States Constitution.
The majority of Maine’s school districts do not operate their own high schools. Instead, those school districts may either contract with another school to educate their resident high school students, or they may pay tuition to the private high school of the parent’s choice—but only if the high school is not religious in nature. The plaintiffs in this case, Carson v. Makin, all live in school districts that do not operate their own high schools and either send their children to a religious high school at their own expense, or would like to send their children to a religious high school but cannot afford to do so. They sued the Commissioner of Maine’s Department of Education, claiming that Maine law violates the United States Constitution.
“Our Constitution guarantees that all people in our nation may exercise their religion free from discrimination by the government,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “The First Amendment’s religious freedom protections are especially important for families and children, and the Department of Justice is committed to ensuring that all children may participate equally in educational programs without discrimination because of their religion.”
On June 26, 2019, the United States District Court for the District of Maine held that it was bound by First Circuit precedent from 2004 to uphold Maine’s religious-school ban, but it noted that the Supreme Court’s 2017 decision in Trinity Lutheran Church of Columbia v. Comer might cause the First Circuit to reassess its prior precedent.
In Trinity Lutheran, the Supreme Court held that “denying a generally available benefit solely on account of religious identity imposes a penalty on the free exercise of religion,” and may only be justified by the most compelling governmental interests. In its friend-of-the-court brief, the United States explains that Trinity Lutheran obligates the Court of Appeals to reassess the constitutionality of Maine’s religious-school ban. Because Maine “prohibits religious schools, simply because of their religious character, from receiving funds available to the rest of the community,” the United States’ brief explains, the state’s tuition program imposes “special disabilities on religious adherents on the basis of their religious status,” and thus violates the Constitution’s Free Exercise Clause. The United States raised similar arguments in a brief it filed with the United States Supreme Court last month in Espinoza v. Montana Department of Revenue, which concerns a similar religious-school ban in a Montana scholarship program.
In July 2018, the Department of Justice announced the formation of the Religious Liberty Task Force. The Task Force brings together Department components to coordinate their work on religious liberty
Jury Convicts Two Former Corrections Officers of Assaulting an Inmate and Two Former Officers Plead Guilty to Civil Rights ViolationRead the Press Release
Two former corrections officers at the Jackson County Detention Center have been convicted by a federal jury of physically assaulting an inmate in violation of his Constitutional protection against unreasonable force.
“These corrections officers were convicted by a jury of their peers for severely beating and wounding a disoriented and compliant inmate,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “This conduct betrays their oath as law enforcement officers and violates the Constitution. The Department of Justice will prosecute those who violate the rights of others.”
“These corrections officers abused their authority by physically assaulting an inmate,” said U.S. Attorney Tim Garrison. “Our Constitution protects every citizen from the use of unreasonable force. No one is above the law, and no one should be denied their civil rights.”
Travis Hewitt, 29, and Terrance Dooley Jr., 38, both of Kansas City, Missouri, were found guilty on Friday, Oct. 4, of participating in a conspiracy to deprive the victim of his civil rights and one count of deprivation of rights.
Co-defendants Jen-I Pulos, 38, and Dakota Pearce, 26, both of Kansas City, Missouri, each recently pleaded guilty. Pearce pleaded guilty to his role in the conspiracy and Pulos pleaded guilty to the deprivation of rights.
Hewitt, Dooley, Pulos, and Pearce were formerly employed as corrections officers at the detention center. Hewitt and Pearce served as acting sergeants. Dooley and Pulos served on the Disturbance Control Team, also known as the Correctional Emergency Response Team, which is responsible for intervening in inmate altercations and neutralizing threats posed by inmates.
The victim, identified in court documents as “J.R.,” was an inmate at the detention center. On July 4, 2015, J.R. was detained on a probation violation related to the monitoring of his release conditions for a felony driving while intoxicated conviction. J.R. was placed in the medical housing unit of the detention center because he was severely confused and disoriented, as he was experiencing severe symptoms of alcohol withdrawal.
At about 7 p.m. another corrections officer allowed J.R. to walk in a secure area outside of his cell. J.R., clearly disoriented and unaware of his whereabouts, attempted to exit the secure area. The corrections officer and J.R. then had a brief physical struggle; the corrections officer called a Code 1, indicating to other officers that she needed assistance.
Hewitt and Pearce responded and placed J.R. in a holding cell. Hewitt, Dooley, Pulos, and Pearce were upset that a supervisor decided J.R. would not be placed in a “restraint chair,” which was commonly used to punish unruly inmates, because J.R. was clearly disoriented and unaware of his surroundings. Several hours later, Dooley and Pulos entered J.R.’s cell, purportedly to remove a comb that had been fashioned into a “shank.” They removed J.R. and transported him to a holding cell (which was out of the range of surveillance cameras). In this holding cell, Hewitt, Dooley, Pulos, and Pearce physically assaulted J.R., while he was handcuffed and not posing a threat to anyone, in order to punish him for the earlier incident. At times during the incident, one of the officers stood outside of the cell and served as a lookout in attempt to ensure that the assault was concealed from other witnesses.
Several hours after the second incident, medical professionals at the detention center decided to transfer J.R. to Truman Medical Center out of a belief that his alcohol withdrawal symptoms had worsened. Truman Medical personnel working in the emergency room, however, quickly determined that J.R. had sustained significant injuries unrelated to alcohol withdrawal. Medical personnel ultimately diagnosed J.R. with broken ribs, a punctured lung, facial bruising, and injuries to his wrists.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for approximately four hours before returning the guilty verdicts to U.S. District Judge Gary A. Fenner, ending a trial that began Monday, Sept. 30.
Under federal statutes, Hewitt and Dooley are each subject to a sentence of up to 20 years in federal prison without parole. Pulos and Pearce are each subject to a sentence of up to 10 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. Attorney David Ketchmark of the U.S. Attorney’s Office of the Western District of Missouri, Trial Attorney Shan Patel of the Civil Rights Division of the U.S. Department of Justice, and Special Litigation Counsel Fara Gold of the Civil Rights Division, Criminal Section, U.S. Department of Justice. It was investigated by the Kansas City Division of the FBI.
Jury Convicts Two Former Corrections Officers of Assaulting an InmateRead the Press Release
KANSAS CITY, Mo. – Two former corrections officers at the Jackson County Detention Center have been convicted by a federal jury of physically assaulting an inmate in violation of his Constitutional protection against unreasonable force.
“These corrections officers abused their authority by physically assaulting an inmate,” said U.S. Attorney Tim Garrison. “Our Constitution protects every citizen from the use of unreasonable force. No one is above the law, and no one should be denied their civil rights.”
“These corrections officers were convicted by a jury of their peers for severely beating and wounding a disoriented and compliant inmate,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “This conduct betrays their oath as law enforcement officers and violates the Constitution. The Department of Justice will prosecute those who violate the rights of others.”
Travis Hewitt, 29, and Terrance Dooley, Jr., 38, both of Kansas City, Missouri, were found guilty on Friday, Oct. 4, of participating in a conspiracy to deprive the victim of his civil rights and one count of deprivation of rights.
Co-defendants Jen-I Pulos, 38, and Dakota Pearce, 26, both of Kansas City, Missouri, each recently pleaded guilty. Pearce pleaded guilty to his role in the conspiracy and Pulos pleaded guilty to the deprivation of rights.
Hewitt, Dooley, Pulos, and Pearce were formerly employed as corrections officers at the detention center. Hewitt and Pearce served as acting sergeants. Dooley and Pulos served on the Disturbance Control Team, also known as the Correctional Emergency Response Team, which is responsible for intervening in inmate altercations and neutralizing threats posed by inmates.
The victim, identified in court documents as “J.R.,” was an inmate at the detention center. On July 4, 2015, J.R. was detained on a probation violation related to the monitoring of his release conditions for a felony driving while intoxicated conviction. J.R. was placed in the medical housing unit of the detention center because he was severely confused and disoriented, as he was experiencing severe symptoms of alcohol withdrawal.
At about 7 p.m. another corrections officer allowed J.R. to walk in a secure area outside of his cell. J.R., clearly disoriented and unaware of his whereabouts, attempted to exit the secure area. The corrections officer and J.R. then had a brief physical struggle; the corrections officer called a Code 1, indicating to other officers that she needed assistance.Hewitt and Pearce responded and placed J.R. in a holding cell. Hewitt, Dooley, Pulos, and Pearce were upset that a supervisor decided J.R. would not be placed in a “restraint chair,” which was commonly used to punish unruly inmates, because J.R. was clearly disoriented and unaware of his surroundings. Several hours later, Dooley and Pulos entered J.R.’s cell, purportedly to remove a comb that had been fashioned into a “shank.” They removed J.R. and transported him to a holding cell (which was out of the range of surveillance cameras). In this holding cell, Hewitt, Dooley, Pulos, and Pearce physically assaulted J.R., while he was handcuffed and not posing a threat to anyone, in order to punish him for the earlier incident. At times during the incident, one of the officers stood outside of the cell and served as a lookout in attempt to ensure that the assault was concealed from other witnesses.
Several hours after the second incident, medical professionals at the detention center decided to transfer J.R. to Truman Medical Center out of a belief that his alcohol withdrawal symptoms had worsened. Truman Medical personnel working in the emergency room, however, quickly determined that J.R. had sustained significant injuries unrelated to alcohol withdrawal. Medical personnel ultimately diagnosed J.R. with broken ribs, a punctured lung, facial bruising, and injuries to his wrists.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for approximately four hours before returning the guilty verdicts to U.S. District Judge Gary A. Fenner, ending a trial that began Monday, Sept. 30.
Under federal statutes, Hewitt and Dooley are each subject to a sentence of up to 20 years in federal prison without parole. Pulos and Pearce are each subject to a sentence of up to 10 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. Attorney David Ketchmark of the U.S. Attorney’s Office of the Western District of Missouri, Trial Attorney Shan Patel of the Civil Rights Division of the U.S. Department of Justice, and Special Litigation Counsel Fara Gold of the Civil Rights Division, Criminal Section, U.S. Department of Justice. It was investigated by the Kansas City Division of the FBI.
Joint Statement Announcing United States and Australian Negotiation of a CLOUD Act Agreement by U.S. Attorney General William Barr and Minister for Home Affairs Peter DuttonRead the Press Release
The United States and Australia and have entered into formal negotiations for a bilateral agreement under the U.S. Clarifying Lawful Overseas Use of Data Act (the CLOUD Act), as the first step towards significantly boosting law enforcement cooperation between the two allies, with strong protections for rule of law, privacy and civil liberties.
United States Attorney General William Barr and Australian Minister for Home Affairs, Peter Dutton, announced the negotiations during a meeting on Oct. 7, 2019.
Attorney General Barr said that the United States is pleased that Australia has begun formal negotiations with the United States under the CLOUD Act. “The CLOUD Act was created to permit our close foreign partners who have robust protections for privacy and civil liberties, such as Australia, to enter into executive agreements with the United States,” said U.S. Attorney General Barr. “This agreement, if finalized and approved, will allow service providers in Australia and the United States to respond to lawful orders from the other country without fear of running afoul of restrictions on disclosure, and thus provide more access for both countries to providers holding electronic evidence that is crucial in today’s investigations and prosecutions.”
The Attorney General also noted that the conclusion of an executive agreement with Australia will strengthen public safety for both countries. “The United States looks forward to working with the Australian Government on this agreement, which will enhance each country’s ability to fight crime by allowing faster access to data needed for quick-moving investigations. By increasing the effectiveness of investigations and prosecutions of serious crime, including terrorism, in both countries, citizens of both countries will be safer.”
Minister Dutton said Australia was very pleased to have taken this step.
“Last year, Australia congratulated the United States for its leadership in passing this legislation, which recognized that timely access to electronic information held by U.S.-based service providers is critical to efforts to combat serious crime,” said Mr. Dutton. “Current processes for obtaining electronic information held by service providers in other countries risk loss of evidence and unacceptable delays to criminal justice outcomes. When police are investigating a terrorist plot or serious crime such as child exploitation, they need to be able to move forward without delay, but within the law – and the CLOUD Act strikes exactly that balance. This is the way of the future between likeminded countries. We have some way to go before the agreement is finalized, but once in place it will mean service providers based in the United States can respond directly to electronic data requests issued by our enforcement agencies under Australian law for data critical for the prevention, detection, investigation and prosecution of serious crime.”
The United States enacted the CLOUD Act in 2018 to speed access by foreign partners to electronic information held by U.S.-based global providers that is critical to such foreign partners’ investigations of serious crime. The Act creates a new paradigm: an efficient, privacy and civil liberties-protective approach to ensure effective access to electronic data through executive agreements between the United States and trusted foreign partners.
While this electronic data can currently be sought through the mutual legal assistance (MLA) process, the CLOUD Act provides an alternative expedited framework for obtaining the data. The number of MLA requests for electronic information held by service providers in the United States has increased dramatically in recent years, straining resources and slowing response times. The CLOUD Act addresses delays in the MLA process by providing a new route for trusted partner countries to obtain electronic data.
Underpinned by Australian legislation yet to be introduced, a bilateral CLOUD Act agreement would enable Australian law enforcement to serve domestic orders for communications data needed to combat serious crime directly on U.S.-based companies, and vice versa.
For more information on the CLOUD Act, go to: https://www.justice.gov/dag/page/file/1153466/download and https://www.justice.gov/dag/cloudact.
Ildefonso Bautista Nogales Sentenced to Serve 10 Years in Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
Greeneville, Tenn. – Ildefonso Bautista Nogales, 30, of Mexico, was sentenced on October 7, 2019, by the Honorable Pamela L. Reeves, Chief U.S. District Court Judge, to serve 10 years in federal prison. Nogales pleaded guilty in April of 2019 to conspiring with codefendant Erika Lawson to distribute methamphetamine in East Tennessee. Judge Reeves sentenced Erika Lawson, 33, of Morristown, Tennessee, on June 17, 2019 to serve 100 months in federal prison.
Agencies involved in this investigation included the Hamblen County Sheriff’s Department and the FBI. Robert M. Reeves, Assistant U.S. Attorney represented the United States.
Huntington Man Pleads Guilty to Federal Drug ConspiracyRead the Press Release
HUNTINGTON, W.Va. – A Huntington man pled guilty today to a federal drug conspiracy charge, announced United States Attorney Mike Stuart. Tremayne Swanson, also known as “Polo,” 28, entered a guilty plea to an indictment charging him with conspiracy to distribute heroin and fentanyl.
“Swanson was part of a significant heroin and fentanyl trafficking operation wreaking havoc in the Huntington area,” said United States Mike Stuart. “I commend the excellent investigation conducted by DEA and the Violent Crime and Drug Task Force West that shut this network down.”
Swanson admitted that between December 2018 and May 2019 he conspired with other individuals to distribute heroin and fentanyl in Huntington, West Virginia. Swanson admitted he sold heroin for George Lockhart in Huntington.
Swanson faces up to twenty years in federal prison when he is sentenced on January 20, 2020.
Operation Free Market was a long-term drug investigation in the Huntington area. The investigation was the result of a joint effort by the Drug Enforcement Administration and the Violent Crime and Drug Task Force West.
The plea hearing was held before United States District Judge Robert C. Chambers. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
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Hermitage Man Sentenced for Importing and Selling Drugs Not Approved by FDARead the Press Release
PITTSBURGH - A resident of Hermitage, Pennsylvania, has been sentenced in federal court to 3 years of probation on his conviction of a charge of conspiracy, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Donetta W. Ambrose imposed the sentence on Emil Koledin, a/k/a Butch, age 61.
According to information presented to the court, Koledin operated a business out of Hermitage home called Koledin Enterpsises, Inc., that sold various illegal drugs manufactured primarily in Russia and China though the website awakebrain.com. Koledin sold the drugs as "nootripics", which he described as "Smart drugs, memory enhancers, neuro exchangers, and intelligence enhancements." He falsely represented these drugs as legal to sell in the United States. In fact, these are drugs that were illegally imported into the United States and illegal to sell in the United States because they are not approved for sale by the Food and Drug Administration, the products do not contain the properly labeling, directions for use and warnings, and because they were manufactured in unapproved facilities. Some of the illegal drugs Koledin was selling include the following: Adrafinil, a/k/a Noofon; Bromantane; Coluracetam; Etifoxine, a/k/a Stresam; Noopept; Piracetam, a/k/a Nootropil; Phenylpiracetam, a/k/a Phenotropil; Sunifiram; Theanine; and Tianetine.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
United States Attorney Brady commended the Food and Drug Administration Office of Criminal Investigations for the investigation leading to the successful prosecution of Koledin.