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14 November 2019
Former Mississippi Band of Choctaw Indians Tribal Council Member Arrested and Charged with Additional Federal CrimesRead the Press Release
Jackson, Miss. – A former member of the Tribal Council for the Mississippi Band of Choctaw Indians has been charged with additional criminal violations in a Superseding Indictment and arrested for burglary, sexual abusive contact, witness tampering, theft/embezzlement, and wire fraud, announced United States Attorney Mike Hurst and Michelle A. Sutphin, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi.
An original indictment returned by a federal grand jury on February 6, 2019, had charged the former elected lawmaker Randy Lamar Anderson, 46, of Conehatta, Miss., with defrauding the Tribal government (One count of theft and two counts of wire fraud).
According to the indictment, between March 2015 and December 2017, Anderson is alleged to have forged hotel bills and receipts, and submitted those documents to the Tribal government in claims for reimbursement for official business travel. Since the original indictment issued, Anderson’s term on the Tribal Council expired, and Anderson did not run for reelection to the Council.
On February 13, 2019, Anderson appeared for arraignment on the original indictment before United States Magistrate Judge Linda R. Anderson in Jackson, Mississippi. The Court released Anderson on bond, subject to conditions including that he refrain from further violations of state or federal law while awaiting his trial.
On November 6, 2019, additional charges were returned by a Federal Grand Jury in a Superseding Indictment, alleging that Anderson, while subject to the conditions of his release on bond, entered the home of a female Choctaw Indian on Reservation lands during the night of August 25, 2019, and committed an abusive sexual contact of the woman, who was unable to appraise the nature of the conduct and physically incapable of declining participation in, or communicating unwillingness to engage in, that sexual act. The Superseding Indictment also alleges that in the days following the incident in August and September, Anderson engaged in witness tampering by attempting to intimidate and threaten the victim into not reporting his offense and violations of his bond conditions, as well as attempting to corruptly persuade and mislead the Choctaw Police Department into pressing criminal charges against her, to dissuade her from filing charges.
Anderson appeared before United States Magistrate Judge Linda R. Anderson for arraignment on the Superseding Indictment today in Jackson. He faces maximum penalties of 5 years in prison for theft from an Indian Tribal Organization; 20 years for each count of Wire Fraud; a mandatory minimum of three years for Burglary, with a maximum of 25 years; a maximum of 15 years for Abusive Sexual Contact; and up to 30 years for each count of Witness Tampering. Each count also can merit a fine of up to $250,000. Anderson was remanded to the custody of the U.S. Marshals to await a detention hearing scheduled for Tuesday, November 19, 2019.
U.S. Attorney Hurst commended the work of the Special Agents with the FBI’s Jackson Division who investigated the case. The case is being prosecuted by Assistant United States Attorney Theodore Cooperstein.
The public is reminded that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Former McDonald, PA Man Admits Selling Deadly Drugs, Illegally Possessing a PistolRead the Press Release
PITTSBURGH - A former resident of McDonald, PA, pleaded guilty in federal court to charges of violating federal firearm and narcotics laws, United States Attorney Scott W. Brady announced today.
Mackenzie Cole Roberts, 26, pleaded guilty to six counts before Chief United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that on March 13, 2016, the defendant possessed heroin and a loaded .38 special caliber derringer pistol. Roberts was prohibited from legally possessing a firearm or ammunition as a result of his heroin use.
On December 23, 2016, the defendant sold stamp bags containing fentanyl and acetyl fentanyl which caused the death of M.P.C. On January 5, 2017, the defendant was arrested with nine stamp bags of fentanyl that he intended to sell, and police then located several stamp bags and drug paraphernalia in his residence.
Judge Hornak scheduled sentencing for March 20, 2019. The law provides for a total sentence of 81 years in prison, a fine of up to $3,501,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history of the defendant.
Pending sentencing, the court remanded the defendant to jail.
Assistant United States Attorney Robert C. Schupansky is prosecuting this case on behalf of the government.
The Drug Enforcement Agency conducted the investigation that led to the prosecution of Mackenzie Cole Roberts with the valuable assistance of the McDonald Police Department, the Canonsburg Police Department, the Washington County Coroner, the McDonald Fire Department, and the Fort Cherry Ambulance Department.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Former Massachusetts Man Sentenced for Role in Trans-National Methamphetamine Trafficking RingRead the Press Release
BOSTON – A former Allston man was sentenced on Tuesday, Nov. 12, 2019, in federal court in Boston for his role in a large-scale methamphetamine trafficking and money laundering ring operating between Massachusetts and California.
Jesse Gillis, 32, previously of Allston and San Diego, Calif., was sentenced by U.S. Senior District Court Judge George A. O’Toole Jr. to 72 months in prison and five years of supervised release. Gillis was also ordered to forfeit $500,000. In March 2018, Gillis pleaded guilty to conspiracy to distribute and possession with intent to distribute 50 grams or more of methamphetamine and conspiracy to launder monetary instruments.
In November 2016, Gillis, and 10 co-defendants were charged with various methamphetamine offenses relating to a transnational trafficking scheme. All 11 defendants have pleaded guilty, and 10 have been sentenced. From at least 2013 to November 2016, Gillis and others participated in a conspiracy to transport significant quantities of methamphetamine from San Diego, Calif., to Massachusetts, where it was distributed in the greater Boston area. Proceeds from the sale of that methamphetamine were then transported and/or transferred back to California and laundered in various ways.
Co-conspirator James Giannetta, 64, formerly of Canton, was the organizer of the conspiracy and was responsible for the distribution of approximately 200 pounds of methamphetamine sent from California to Massachusetts.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; William Ferrara, Director of Field Operations of U.S. Customs and Border Protection; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Boston Police Commissioner William Gross made the announcement. The Massachusetts Department of Correction; Norfolk County Sherriff’s Office; Suffolk County Sheriff’s Office; the Reading, Watertown, Quincy, Chelsea, Braintree, Peabody, Waltham, and Woburn Police Departments; and Connecticut State Police assisted with the investigation. Assistant U.S. Attorneys James E. Arnold and Jared C. Dolan of Lelling’s Narcotics & Money Laundering Unit prosecuted the case.
The investigation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
Former Marin Youth Film Educator Sentenced to Three Years in Prison for Possession of Child PornographyRead the Press Release
SAN FRANCISCO – John Morrison was sentenced to three years in prison for possessing child pornography, announced United States Attorney David L. Anderson. The sentence was handed down by the Honorable Charles R. Breyer, U.S. District Judge.
Morrison, 73 of San Francisco, pleaded guilty to the charge on June 19, 2019. According to his plea agreement, Morrison admitted that in March 2017, he possessed more than 600 videos and images that contained child pornography and that he used Skype to download the videos and images. Morrison further acknowledged that at the time he possessed the images, he worked with youth at the California Film Institute in San Rafael, Calif., as the Director of Education, where he taught film education to his students.
A federal grand jury indicted Morrison on June 5, 2018, charging him with receipt of child pornography, in violation of 18 U.S.C. § 2252(a)(2) and (b)(1), and possession of child pornography, in violation of 18 U.S.C. § 2252(a)(4)(B). Morrison pleaded guilty to the possession count and the receipt count was dismissed at sentencing.
This investigation began with cyber-tips made to the National Center for Missing and Exploited Children. The cyber-tips indicated that an individual was using Skype to upload child pornography. Law enforcement eventually identified the defendant as the user of the specific Skype account being used to upload the images.
In addition to the prison term, Judge Breyer sentenced the defendant to a five-year period of supervised release, ordered him to pay $2,500 in restitution, and required that he register as a sex offender as required by state law. Judge Breyer ordered the defendant to surrender and begin serving the prison term no later than January 13, 2020.
Assistant U.S. Attorney Ross Weingarten is prosecuting the case with the assistance of Marina Ponomarchuk. The prosecution is the result of an investigation by the San Francisco Police Department, Internet Crimes Against Children Unit.
Former Lee's Summit Police Officer Sentenced for Armed Bank RobberyRead the Press Release
KANSAS CITY, Mo. – A former Lee’s Summit, Missouri, police officer who led officers on a 100-miles-per-hour vehicle pursuit has been sentenced in federal court for armed bank robbery.
Richard W. Hagerty, 36, of Independence, Missouri, was sentenced by U.S. District Judge Roseann Ketchmark on Wednesday, Nov. 13, to eight years in federal prison without parole.
On March 12, 2019, Hagerty pleaded guilty to one count of armed bank robbery and one count of brandishing a firearm during a crime of violence. Hagerty was a police officer with the Lee’s Summit Police Department from 2007 to 2016.
Hagerty entered Central Bank of the Midwest, located at 1305 N.W. Arborwalk Blvd. in Lee’s Summit, on Aug. 28, 2018. Hagerty, wearing a camouflage balaclava-style mask that covered part of his face and black gloves, pointed a Glock .40-caliber pistol at a customer and yelled, “Everybody get down on the floor, this is a robbery.” He demanded cash from two tellers, pointing the handgun at them while he was demanding money. Hagerty stole about $7,000 then fled from the bank on foot.
A Lee’s Summit police officer located Hagerty driving a dark gray Mazda on Hook Road and 139th Street shortly after the robbery. When the officer activated his emergency equipment, Hagerty accelerated and a vehicle pursuit ensued. The pursuit stretched from Lee’s Summit to Grandview, Mo., in the middle of the day, on busy thoroughfares. Hagerty drove erratically during the pursuit, according to court documents, by reaching speeds in excess of 100 miles per hour on those busy roads, passing through school zones, and crossing into oncoming traffic.
After the vehicle was finally stopped, the officer gave verbal instructions for the occupant of the Mazda to exit the vehicle. After a short delay, Hagerty exited through the driver's side door of the vehicle with his hands raised above his head. The officer immediately recognized Hagerty, who was arrested.
Inside the vehicle, officers saw a large amount of cash on the driver’s seat and the front driver’s and passenger’s floorboard. They also recovered the Glock handgun from the vehicle.
This case was prosecuted by Assistant U.S. Attorney Ashleigh Ragner and Special Assistant U.S. Attorney Robert Smith. It was investigated by the Lee’s Summit, Mo., Police Department and the FBI.
Former Financial Services Executive Pleads Guilty to Rigging Bids for Financial Instruments in Violation of Antitrust LawRead the Press Release
Peter Volino, a former vice president at Industrial and Commercial Bank of China Financial Services LLC (ICBCFS), pleaded guilty to a criminal antitrust charge for his involvement in a bid-rigging conspiracy for certain financial instruments, the Department of Justice announced.
Volino admitted that, from at least as early as May 2012 until at least August 2014, he and his counterparts at other broker-dealers conspired to submit rigged bids to borrow pre-release American Depository Receipts (ADRs). Volino’s plea is the fourth in the investigation; Banca IMI Securities Corp., ICBCFS, and former Banca IMI executive Larry Meyers previously pleaded guilty.
“The guilty plea announced today represents the culmination of a years-long investigation by the Division’s prosecutors and our FBI partners into collusion that infected bidding for pre-release ADRs,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “The Division is committed to detecting, rooting out, and prosecuting antitrust crimes affecting our financial markets and to holding personally accountable executives who try to get ahead by violating the antitrust laws.”
Worldwide, thousands of publicly traded companies list their shares of common stock only on foreign stock exchanges. Most U.S. investors are unable to purchase or sell such foreign shares. The U.S. Securities and Exchange Commission, however, permits four U.S. depository banks to create ADRs, which represent foreign ordinary shares and can be traded in the United States. Through the purchase and sale of ADRs, U.S. investors are able to gain exposure to — including the ability to receive dividends from — companies whose common stock is listed only on foreign exchanges.
Volino pleaded guilty to conspiring to borrow pre-release ADRs from U.S. depository banks at artificially suppressed rates. During the conspiracy, a U.S. depository bank began using an auction-style process for pre-release ADRs and invited ICBCFS and other broker-dealers to submit competitive bids for rates to borrow ADRs. In response, Volino and his co-conspirators conspired to suppress competition between them in an effort to artificially increase their profits under the auction-style process. On at least 24 occasions, ICBCFS, through Volino, reached an agreement with one or more co-conspirators as to the bids they would submit to U.S. depository banks. On many occasions, the conspirators agreed that they all would submit the same bid. Volino and his co-conspirators reached these agreements using, among other means, private chat rooms and text messages.
“As demonstrated through this multi-year investigation, which has led to four plea agreements, the FBI is committed to rooting out corruption and fraud,” said Assistant Director in Charge Timothy R. Slater of the FBI’s Washington Field Office. “Today’s plea is the result of our continuous, persistent efforts to protect competition in the financial market and identify those engaged in fraudulent conduct.”
A criminal violation of Section 1 of the Sherman Act carries a maximum term of imprisonment of 10 years and a maximum fine of $1 million for individuals. The fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
The Washington Criminal II Section of the Antitrust Division, the FBI’s International Corruption Unit, and the FBI’s Washington Field Office are conducting the investigation into bid rigging in the market for pre-release ADRs. Anyone with information in connection with this investigation is urged to call the Antitrust Division’s Washington Criminal II Section at 202-598-4000 or visit www.justice.gov/atr/contact/newcase.html.
Former Financial Advisor Admits to Engaging in Ponzi Scheme Targeting Elderly InvestorsRead the Press Release
TRENTON, N.J. – A Somerset County, New Jersey man, today admitted to engaging in a Ponzi scheme targeting elderly investors and to subscribing to a false tax return, U.S. Attorney Craig Carpenito announced.
Daniel Rivera, 60, of Hillsborough, New Jersey, a former financial advisor, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to a superseding information charging him with one count of wire fraud and one count of aiding and abetting in the false subscribing to a tax return.
According to documents filed in this case and statements made in court:
From 2008 through 2017, Rivera solicited primarily elderly investors to invest their money in a company called Robbins Lane Properties Inc. Rivera represented to investors that Robbins Lane was a company staffed by experienced real estate professionals that invested in real estate ventures. Rivera told investors that by investing in Robbins Lane, senior investors would share in the company’s investment portfolio by lending it money to invest in real estate. Rivera further promised investors that they would receive a guaranteed monthly income, and that the company’s rate of return was based on secure real estate investments in the company’s portfolio. In reality, Robbins Lane had no employees, no real estate portfolio, and the monies used to pay investors as a purported return on their investments was from funds he received from other investors. Rivera also used funds sourced from investors to pay his personal and unrelated business expenses, including paying his child’s college tuition and sorority fees.
During the course of the fraudulent scheme, on March 5, 2014, Rivera filed with the IRS a federal income tax return that underreported his taxable income by $33,276.
The wire fraud count to which Rivera pleaded guilty carries a maximum potential punishment of 20 years in prison and a fine of up to $250,000, or twice the gross loss or gain caused by the offense. The aiding and abetting in the subscribing to a false tax return count with which Rivera is charged carries a maximum potential punishment of three years in prison and a fine of up to $250,000. Sentencing is scheduled for Feb. 21, 2020.
U.S. Attorney Craig Carpenito credited special agents of the Federal Bureau of Investigation under the direction of Special Agent in Charge Gregory W. Ehrie in Newark and special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Dara Aquila Govan, Chief of the U.S. Attorney’s Office Public Protection Unit in Newark.
Defense counsel: Andrea Dechenne Bergman Esq., Assistant Federal Public Defender (Trenton)
Former Director of Administration for Local Trade Organization Sentenced for Embezzling FundsRead the Press Release
CHARLESTON, W.Va. – A former Director of Administration for a local trade organization was sentenced to federal prison for embezzling funds from her employer, announced United States Attorney Mike Stuart. Wendy Long, 49, of Charleston, was sentenced to 18 months in prison for access device fraud. The Court also imposed a three year term of supervised release and ordered Long to pay restitution in the amount of $292,409.37. Long had served as the Director of Administration of the trade organization from approximately 2002 through 2017. In that capacity, she handled financial accounts, prepared payroll and paid bills, reconciled bank statements, prepared monthly income and expense reports, among other duties.
“Long stole money from her employer for years totaling over $300,000,” said United States Attorney Mike Stuart. “Prosecuting cases like this is a priority for my office, especially in terms of obtaining restitution for victim businesses and organizations. It is similar to public corruption and is just as diabolical. A trusted official who steals from those who trust. Terrible and sad.”
Long previously admitted that she had used the trade organization’s credit cards for her personal use and benefit, knowing that she was not authorized to do so. During the calendar year 2016, she purchased goods and services totaling more than $23,657 for her personal benefit. Long also admitted that in carrying out the purchases, which affected interstate commerce, she acted with an intent to defraud her employer. Some of the purchases paid for were family vacations, airline tickets, tickets to sporting events, and the rental of supplies for engagement and wedding parties. Long further admitted that she committed similar crimes in 2014, 2015, and 2016, against her employer, and that from 2012-2017 she embezzled funds directly from her employer’s bank account. The total amount of fraud that Long committed against her employer exceeded $317,939. After being discovered, Long repaid her employer $25,530. She also paid $292,409.37 to the Clerk of Court prior to her sentencing as agreed upon restitution to her employer.
Senior United States District Judge David A. Faber imposed the sentence. The United States Secret Service conducted the investigation. Assistant United States Attorney Phil Wright handled the prosecution.
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Former Deutsche Bank Executive to Pay $500,000 in Civil Penalties to Resolve Claims for Fraud in Sale of Residential Mortgage-Backed SecuritiesRead the Press Release
BROOKLYN, NY – The United States has reached agreement with Paul Mangione, a former Deutsche Bank executive, to settle a civil action filed in September 2017 in which the United States sought civil penalties for Mangione’s conduct in connection with Deutsche Bank’s marketing and sale of two residential mortgage-backed securities (RMBS) in 2007. The agreement provides for payment of $500,000 in civil penalties in exchange for dismissal of the complaint.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, announced the settlement.
“This Office’s settlement with a bank executive in connection with RMBS fraud reflects our commitment to holding individuals accountable for their role in corporate fraud,” stated United States Attorney Donoghue. Mr. Donoghue thanked the Federal Housing Finance Agency’s Office of the Inspector General for its assistance in conducting the investigation in this matter.
The complaint in the action, United States v. Paul Mangione, alleged that Mangione, a former Managing Director and head of subprime trading at Deutsche Bank, engaged in a scheme to defraud investors in two Deutsche Bank RMBS, ACE 2007-HE4 and ACE 2007-HE5, by misrepresenting the characteristics of the loans backing the two securities and misleading potential investors about the loan origination practices of Deutsche Bank’s wholly-owned subsidiary, DB Home Lending LLC (f/k/a Chapel Funding, LLC), which originated a number of the loans backing the two RMBS. The complaint stated claims for relief under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA), based on mail fraud and wire fraud.
The settlement agreement does not constitute an admission by Mangione of any of the facts or of liability or wrongdoing by Mangione, and there has been no trial or adjudication or judicial finding of any issue of fact or law.
The government’s case was handled by Assistant United States Attorney Edward Newman.
To report RMBS fraud, go to: http://www.stopfraud.gov/rmbs.html.
E.D.N.Y. Docket No. 17-CV-5305 (NMG/RL)
Former Controller for Marco Contractors Inc. Pleads Guilty in $8.7M Embezzlement SchemeRead the Press Release
PITTSBURGH - A resident of Sewickley, Pennsylvania pleaded guilty in federal court to charges of wire fraud and filing false income tax returns, United States Attorney Scott W. Brady announced today.
Sue O’Neill, 55, pleaded guilty to two counts before Senior United States District Judge Donetta W. Ambrose.
In connection with the guilty plea, the court was advised that O’Neill, while employed as the Controller for Marco Contractors, Inc., embezzled approximately $8.7 million. The Court was further advised that she and another individual started a company called Bulldog Contractors LLC and used approximately $6.7 million of the stolen money to fund the business. The other $2 million in embezzled funds went into her personal bank account. O’Neill and her business partner used the stolen funds for business expenses and for personal use. Among other things, the Court was advised that they purchased two 1969 Ford Shelby GT500s for approximately $160,000 each and spent approximately $163,000 renovating a 1969 Ford Mustang. Lastly, the Court was advised that O’Neill filed false income tax returns because she did not declare the stolen funds as taxable income.
Judge Ambrose scheduled sentencing for March 26, 2020. The law provides for a total sentence of 20 years in prison for the wire fraud conviction and three years in prison for the false tax return conviction. The law also provides for a fine of $500,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court permitted O’Neill to remain out of prison on a $25,000 bond.
Assistant United States Attorney Lee J. Karl is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Allegheny County District Attorney’s Office, the Northern Regional Police Department, the Internal Revenue Service and the United States Marshals Service conducted the investigation that led to the prosecution of O’Neill.
Former Columbia Police Chief Sentenced to Federal PrisonRead the Press Release
Columbia, South Carolina---- United States Attorney Sherri A. Lydon announced today that Randall G. Scott, age 50, of Richland County, was sentenced in federal court after pleading guilty to possession of a firearm and ammunition by an unlawful user of a controlled substance. Senior United States District Judge Terry L. Wooten of Columbia sentenced Scott to 30 months in federal prison, to be followed by 3 years of court-ordered supervision. There is no parole in the federal system.
Evidence presented to the court established that on December 4, 2017, Richland County deputies arrived at Old Hopkins Road and Garners Ferry Road in Richland County in reference to a subject sleeping behind the wheel of a vehicle while the vehicle was running and in drive on the roadway. The deputies made contact with the driver, who was asleep behind the wheel. After waking the driver, deputies smelled alcohol coming from the vehicle. The deputies then asked the driver for his driver’s license. The driver stated he did not have one. Officers discovered his license was suspended. The driver was then arrested.
Deputies searched the vehicle and discovered a loaded Glock Model 27 pistol in the center armrest of the vehicle. A DNA test indicated that the driver’s DNA was on the pistol. Also inside of the vehicle, deputies discovered a small black bag in an open space under the radio. Inside of the bag, deputies discovered a clear bag with a rock-like substance in it, which was suspected to be crack cocaine. Deputies also discovered several small bindles of suspected heroin.
Deputies discovered that the vehicle was registered to Randall Scott. Scott was contacted and asked why his vehicle was in the driver’s possession. Scott’s response was he did not know, but he would find out.
Thereafter, ATF agents interviewed the driver. The driver stated Scott gave the Glock firearm found in the vehicle to him for his protection. The driver admitted that he sold drugs and that the drugs in the car were his. During subsequent interviews, the driver admitted to using cocaine and methamphetamine with Scott. The driver pleaded guilty to possession of a firearm in furtherance of a drug trafficking crime and is cooperating with the Government. He admitted that he and Scott used drugs together and that he has seen Scott with drugs.
On April 2, 2018, Scott was taken to the hospital for a medical condition. His medical records indicated that he tested positive for cocaine, amphetamine, and opiates. His records indicate he was diagnosed with an illness which was related to cocaine abuse and methamphetamine abuse.
On July 18, 2018, the U.S. Marshals executed an arrest warrant at Scott’s house looking for a fugitive. During the execution of the search warrant, they found a large number of guns in the house. They also found a small amount of methamphetamine. One of the persons in the house, identified in court records as J.O., told the officers that she and Scott had just done methamphetamine before the police arrived and that Scott had more methamphetamine on him before the police entered the house. The police obtained the surveillance video from inside of the house, and it appears that Scott and J.O. had entered a bedroom just before the police entered. J.O. then came out and started to clean the house, saw the police, and alerted everyone. Scott is seen pulling a gun out of his waistband and running through the house with the gun. He entered another room, where it is believed that he disposed of the drugs. Later, when he was being taken to jail, he admitted that he had used both cocaine and methamphetamine in the past. The police found multiple guns during the search of his house. One of the guns belonged to the City of Columbia. It was issued to Scott while he was Chief of Police, and he did not return it.
On February 25, 2019, J.O. was interviewed again by ATF. She told the agents she met Scott in 2017. They did ice and heroin together. She stated that they did ice together about 1-2 times a week for a year. She also stated she had seen Scott using heroin, ice and cocaine in the past.
The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Federal Bureau of Investigation, Richland County Sheriff's Department, and City of Columbia Police Department. It was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant United States Attorneys William K. Witherspoon and T. DeWayne Pearson of the Columbia office prosecuted the case.
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Former CEO of Central Valley Health Clinics to Sell 13 Properties to Resolve False Claims Act AllegationsRead the Press Release
SACRAMENTO, Calif. — The founder and former CEO of a chain of Central Valley rural health clinics will sell 13 properties, remitting proceeds to the United States and the state of California, to resolve allegations that she submitted millions of dollars in false claims to Medi‑Cal, U.S. Attorney McGregor W. Scott announced today.
The Civil and Criminal Divisions of the U.S. Attorney’s Office conducted parallel investigations of Sandra Haar, the founder and chief executive officer of Horisons Unlimited. As a result of the criminal investigation, on Aug. 13, 2018, Haar pleaded guilty to defrauding Medi-Cal and on Nov. 4, 2019, was sentenced to five years in prison.
Horisons Unlimited was a nonprofit that provided health and dental services at eight clinics in Merced and surrounding communities. Between Jan. 1, 2014, and March 2017, Haar billed Medi‑Cal through Horisons for various false and fraudulent claims, including claims for services rendered by unlicensed providers, claims for services that were not rendered at all, claims for office visits that consisted of nothing more than patients picking up controlled substances in plastic baggies in retail parking lots, and claims for unnecessary services. In addition, Haar received illegal kickbacks from an account executive at a Southern California lab. In exchange, Haar directed that lab testing for Horisons’ Medi-Cal patients be conducted at the lab.
The properties to be sold include some former clinics of the now-shuttered Horisons Unlimited as well as several residential properties. Pursuant to the settlement, the Office of Inspector General will be excluding Sandra Haar and a for-profit company Haar controlled from participation in Medicare, Medicaid, and all other Federal healthcare programs for a period of 20 years, and Horisons Unlimited’s chief financial officer, Norman Haar, will be excluded for a period of 15 years.
“The purpose of public insurance programs like Medi-Cal is to provide essential services to those who need them, not to enrich bad actors who submit false and fraudulent claims,” said U.S. Attorney Scott. “We will continue to safeguard the integrity of these programs and the public fisc by recovering public dollars obtained through fraud.”
“Medi-Cal serves vulnerable people who need vital health services. Therefore, when providers steal from this taxpayer-funded program it is a matter of utmost concern,” said Steven J. Ryan, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services. “We will continue working closely with our law enforcement partners to guard the integrity of government health care programs.”
The settlement is the product of an investigation by the Federal Bureau of Investigation, the Office of Inspector General for the U.S. Department of Health and Human Services, the Bureau of Medi-Cal Fraud and Elder Abuse, and the California Department of Health Care Services. Assistant U.S. Attorney Vincente A. Tennerelli handled the case for the United States.
Former Bank Employee Pleads Guilty to Fraud SchemeRead the Press Release
SAN FRANCISCO, Calif. – Raminder Singh Rekhi pleaded guilty to theft, embezzlement, or misapplication of bank funds in connection with a scheme to illegally make loans, announced Adam A. Reeves, Attorney for the United States (acting under authority conferred by 28 U.S.C. § 515), and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The plea was accepted on November 13, 2019, by Charles R. Breyer, Senior U.S. District Judge.
Rekhi, 41, of San Francisco, was a long-time employee of Wells Fargo Bank, N.A. (“Wells Fargo”). Pursuant to his plea agreement, Rekhi admitted that in 2017, he used his position at Wells Fargo to convince a Wells Fargo customer to purchase what he told her was a Wells Fargo certificate of deposit (“CD”). Rekhi acknowledged that there was no CD, and that instead, Rekhi diverted the customer’s money into other accounts under his control. Once the money was under his control, Rekhi entered into a series of transactions in which he used the funds as capital to make loans to three separate individuals. In so doing, Rekhi misappropriated the deposits entrusted to the care of Wells Fargo and, because the subsequent loans were not insured by the Federal Deposit Insurance Corporation, placed the deposits at risk.
On April 18, 2019, a federal grand jury indicted Rekhi, charging him with one count of theft, embezzlement, or misapplication of bank funds, in violation of 18 U.S.C. § 656. He pleaded guilty to the charge.
Judge Breyer ordered Rekhi released pending sentencing; the sentencing hearing is scheduled for March 18, 2020. Rekhi faces a maximum statutory sentence of 30 years in prison, 5 years supervised release, and a fine of $1,000,000, plus restitution and special assessments. However, any sentence following conviction will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Nicholas Walsh is prosecuting the case with the assistance of Rosario Calderon and Margoth Turcios. The prosecution is the result of an investigation by the Federal Bureau of Investigation and Wells Fargo’s internal investigation team.
Five Previously Deported Aliens Charged with Illegal ReentryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that five previously deported aliens were indicted separately on November 13, 2019, by a federal grand jury for illegal reentry into the United States. These matters arose in counties throughout the District including Adams, Cumberland, and Luzerne Counties.
According to United States Attorney David J. Freed, Elmer Martinez-Hernandez, age 24, of Honduras, was previously deported from the United States to Honduras in September 2017. He is alleged to have illegally reentered the United States sometime after September 2017, and was found in the United States in Luzerne County, Pennsylvania after eluding examination or inspection by immigration officers.
Jose Humberto Martinez-Gomez, age 22, of Mexico, was previously deported from the United States to Mexico in June 2015. He is alleged to have illegally reentered the United States sometime after June 2015, and was found in the United States in Cumberland County, Pennsylvania after eluding examination or inspection by immigration officers.
Josefina Bautista-Rojas, age 20, of Mexico, was previously deported from the United States to Mexico in December 2017. She is alleged to have illegally reentered the United States sometime after December 2017, and was found in the United States in Adams County, Pennsylvania after eluding examination or inspection by immigration officers.
Martinez-Hernandez, Martinez-Gomez and Bautista-Rojas face a maximum penalty of two years of imprisonment, a term of supervised release following imprisonment, and a fine.
Shinju Park, age 39, an alien who was under a final order of removal from the United States, did willfully fail or refuse to make timely application in good faith for travel or other documents necessary to the alien’s departure from the United States between August and October 2019.
Park faces a maximum penalty of four years of imprisonment, a term of supervised release following imprisonment, and a fine.
Gerardo Medina a/k/a Carlos Sebastian, age 31, of Mexico, was previously deported from the United States to Mexico in February 2017. He is alleged to have illegally reentered the United States sometime after February 2017, and was found in the United States in Adams County, Pennsylvania after eluding examination or inspection by immigration officers.
Medina faces a maximum penalty of ten years of imprisonment, a term of supervised release following imprisonment, and a fine.
These cases were investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO). Assistant United States Attorney Joanne Sanderson is prosecuting the cases.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Final Member of Violent Robbery Organization Sentenced to More Than 25 Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich today sentenced Antonio Marquis Roddy, a/k/a “Lil Head” (32, Apopka) to 25 years and 4 months in federal prison for conspiracy to commit robbery, robbery, and using or carrying a firearm in furtherance of a violent crime.
Roddy had pleaded guilty on September 12, 2018.
According to court documents, from at least May 2015 and continuing through July 20, 2017, co-defendant Marion Dwight, Jr. conspired with Roddy and others to commit multiple armed robberies and burglaries of several local drug dealers. To date, the FBI has identified at least 14 armed robberies and 4 armed burglaries that were committed by Dwight and his coconspirators. The conspirators discharged and otherwise brandished firearms during each of the robberies and burglaries.
In January 2016, Roddy and his coconspirators, Michael James Baker, a/k/a “Bake,” and Fredrick James Burney, Jr. a/k/a “Frido,” forced their way inside a residence in Kissimmee in search of narcotics and cash. While inside, they held three women and three children at gunpoint and stated that, if the victims complied, no one would die. Roddy and his coconspirators stole approximately $95,000 in cash from the home and divided the proceeds amongst themselves.
A few months later, in April 2016, Roddy and Burney attempted to rob a residence in Lakeland in search of narcotics and cash. The victim, however, returned to the home during the course of the attempted robbery and a shoot-out resulted. Roddy and Burney fled, but not before Burney stole a firearm from the residence. Roddy was shot in the knee and was treated at a nearby hospital.
Roddy was the last member of the Polk County-based criminal organization to be sentenced. Roddy’s coconspirators have been sentenced as noted below:
Name
Age, Residence
Federal Prison Sentence Imposed
Bradney Henry McGary
32, Lakeland
19 years and 2 months
Sherrod Raeshad Gordon,
a/k/a “Hott”
32, Tampa
29 years and 8 months
Marion Dwight, Jr.
a/k/a “Woe,”
a/k/a “Woe Money”
31, Lakeland
23 years
Michael James Baker,
a/k/a “Bake,”
a/k/a “Maserati”
35, Clearwater
19 years and 6 months
Fredrick James Burney, Jr.,
a/k/a “Frido”
a/k/a “Free”
28, Clearwater
30 years
Jevin Michael Stone
30, Lakeland
23 years and 5 months
Shamar Lajuan Thomas
a/k/a “Baby”
27, Clearwater
35 years
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Lisa M. Thelwell.
Federal prisoner pleads guilty to conspiring to obtain methamphetamine in prisonRead the Press Release
ATLANTA - William Prater, who conspired with his fiancé, Genia Letson to obtain methamphetamine at the U.S. Penitentiary-Atlanta (“USP”), pleaded guilty to a charge of conspiracy to possess with the intent to distribute more than five grams of methamphetamine. Prater coordinated with his fiancé using a contraband cellphone and arranged for her to bring him methamphetamine at USP-Atlanta.
“Prater’s audacious attempt to obtain drugs in a federal prison demonstrates his continued lack of respect for the law,” said U.S. Attorney Byung J. “BJay” Pak. “Additionally, his use of a contraband cell phone as part of his crime once again highlights the danger these devices present in a prison environment.”
“Instead of using his time in prison to rehabilitate, Prater chose to continue similar criminal acts that led to his incarceration,” said Special Agent in Charge of FBI Atlanta, Chris Hacker. “His bold defiance of the law put prisoners and prison staff in danger and he will now be held accountable for his actions.”
According to U.S. Attorney Pak, the charges and other information presented in court: Prater was incarcerated at USP-Atlanta for violating the terms of his supervised release following his 2010 conviction for manufacturing methamphetamine. While an inmate at USP-Atlanta, Prater used a contraband cellular telephone to obtain methamphetamine. He recruited his fiancée, Genia Letson, to serve as a courier, and she agreed to travel to Atlanta to obtain the drugs. On November 4, 2018, Letson met with Prater in the visitation room in USP-Atlanta and passed him the methamphetamine she had smuggled inside the prison. Guards witnessed Letson hand Prater the methamphetamine, intervened, and seized the drugs.
Sentencing for William Prater, 35, of Cleveland, Tennessee, has not yet been scheduled. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders. Genia Letson, 47, also of Cleveland, Tennessee, pleaded guilty to conspiracy to possess with the intent to distribute more than five grams of methamphetamine on July 29, 2019.
The Federal Bureau of Investigation is investigating this case.
Assistant U.S. Attorney Calvin A. Leipold, III is prosecuting the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Federal Officials Close Investigation into the Death of Bijan GhaisarRead the Press Release
WASHINGTON – The Justice Department will not pursue federal criminal civil rights charges against the United States Park Police (USPP) officers involved in the fatal shooting of 25-year-old Bijan Ghaisar, the Department announced today.
Officials from the Civil Rights Division, the United States Attorney’s Office for the District of Columbia, and the Federal Bureau of Investigation (“FBI”) informed representatives of Mr. Ghaisar’s family today of this determination. Based on the information available at this time, the Department cannot prove, beyond a reasonable doubt, that the two USPP officers committed willful violations of the applicable federal criminal civil rights statute when they shot Mr. Ghaisar.
The Department conducted an extensive investigation into the shooting of Mr. Ghaisar. The FBI interviewed more than 150 individuals, including law enforcement officers from USPP, Fairfax County Police Department (FCPD), and the Federal Law Enforcement Training Center, as well as civilian and medical witnesses. Additionally, federal investigators sent evidence recovered by USPP investigators to the FBI Laboratory at Quantico, Virginia, for testing and analysis.
The evidence developed during this investigation indicated that at approximately 7:30 p.m. on Friday, November 17, 2017, Officers Amaya and Vinyard engaged in a vehicular pursuit involving Mr. Ghaisar on the George Washington Memorial Parkway (GWMP). A FCPD Lieutenant joined the pursuit on the GWMP, and the dash camera in his squad car captured a portion of the pursuit on video. The pursuit ended at the intersection of Fort Hunt Road and Alexandria Avenue in Fairfax County, Virginia, where the two USPP officers shot Mr. Ghaisar multiple times while Mr. Ghaisar was in the driver’s seat of his vehicle. Emergency medical personnel transported Mr. Ghaisar to INOVA Hospital, where he died 10 days later.
The focus of the Department’s investigation was to determine whether federal prosecutors could prove that the officers violated any federal laws, concentrating on the possible application of 18 U.S.C. § 242, a federal criminal civil rights statute. In order to establish a violation of this statute, the government must prove, beyond a reasonable doubt, that the USPP officers acted willfully to deprive Mr. Ghaisar of a right protected by the Constitution or other law, here the Fourth Amendment right not to be subjected to an unreasonable seizure. The Department would have to prove not only that the officers used force that was constitutionally unreasonable, but that they did so “willfully,” which the Supreme Court has interpreted to mean they acted with a bad purpose to disregard the law. As this requirement has been interpreted by the courts, evidence that an officer acted out of fear, mistake, panic, misperception, negligence, or even poor judgment cannot establish the high level of intent required under Section 242.
At this time, there is insufficient evidence to establish beyond a reasonable doubt that the officers willfully committed a violation of 18 U.S.C. § 242. Specifically, the Department is unable to disprove a claim of self-defense or defense of others by the officers. Accordingly, the Department has closed its investigation into this matter.
Federal Court Hands Down Life Sentence in Armed Bank Robbery CaseRead the Press Release
RALEIGH – Robert J. Higdon, Jr., the United States Attorney for the Eastern District of North Carolina, announces that Chief United States District Judge Terrence W. Boyle, sentenced DAQUAN MADRID PRIDGEN, 27, of Whiteville, North Carolina, to life imprisonment plus an additional ten years imprisonment, JERAMIE ROSS VAUGHN, a/k/a “Vido,” 30, of Parkton, North Carolina, to 180 months’ imprisonment, followed by 5 years of supervised release, and RASHAD DEVONTE YOUNG, a/k/a “Rep,” 28, of Whiteville, North Carolina, to 180 months’ imprisonment, followed by 5 years of supervised release. All three defendants were ordered to pay $40,302 in restitution.
On May 30, 2019, following a jury trial, PRIDGEN was convicted of Armed Bank Robbery and Aiding and Abetting and Discharging a Firearm During a Crime of Violence. On April 18, 2018, VAUGHN and YOUNG pled guilty to those offenses. A fourth man, DEMETRIS SEAN ROBINSON, a/k/a “Bo Bo,” was also convicted of the same offenses following a jury trial on May 1, 2019. He is awaiting sentencing now scheduled for November 27, 2019.
Mr. Higdon commented: “In sentencing these defendants today, the Court recognized that these defendants ‘went to terror of the community,’ staged a ‘surprise attack on the police’, ‘used occupied school busses as a shield to attack law enforcement and then claimed sanctuary from return fire.’ In other words, these offenders jeopardized the safety and security of law enforcement and of members of the community in an incredibly dangerous and premeditated attack. And we are gratified by the Court’s sentences as these terms of imprisonment remove dangerous offenders from the community permanently. We are proud to stand with law enforcement who heroically faced these criminals down.”
The evidence presented at the trials showed that sometime in late 2017, the four men began planning to rob a bank and gathered high-quality masks to wear during the robbery, and several firearms, including a rifle, shotgun, and two handguns. They also purchased a vehicle as a getaway car. On January 23, 2018, the four men travelled to Lumberton and cased banks before deciding to rob the PNC Bank. ROBINSON, PRIDGEN, and YOUNG each brandished firearms and ordered the tellers to hand over money. A bank employee was also ordered to the bank vault where additional money was taken. In all, the four men fled the bank with over $40,000 in cash.
Officers of the Lumberton Police Department (LPD) quickly caught up with the robbers and a two-county, high speed, chase ensued. Other law enforcement officers from the Robeson County Sheriff’s Office (RCSO) and the Columbus County Sheriff’s Office (CCSO) also joined the chase. The defendants drove through residential areas and drove at speeds in excess of 90 miles per hour. At various points in the chase, ROBINSON fired at officers both while the getaway vehicle was in motion and while the vehicle was stopped several times. Several law enforcement vehicles were struck but there were no injuries to law enforcement officers. The chase ended when ROBINSON, PRIDGEN, and VAUGHN abandoned the vehicle on the side of the road in Columbus County and fled on foot into the woods. YOUNG ran on foot when the vehicle stopped at an earlier time. All four were eventually apprehended and charged.
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.
This case is also part of 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 violence crime rate, drug trafficking, and crimes against law enforcement.
The Federal Bureau of Investigation, the North Carolina State Bureau of Investigation, the Lumberton Police Department, the Robeson County Sheriff’s Office, and the Columbus County Sheriff’s Office investigated this case. Assistant United States Attorneys Erin C. Blondel and Robert J. Dodson prosecuted the case for the government.
Father and Son Sentenced in Fraudulent Short Sale Scheme to Defraud Mortgage Lenders and Tax EvasionRead the Press Release
NEWARK, N.J. – A father and son from Bergen County, New Jersey, were sentenced today to 27 months in prison and eight months of home detention, respectively, for their roles in a scheme to use straw buyers and short sales on properties to defraud mortgage lenders out of hundreds of thousands of dollars and to avoid paying taxes on the proceeds of the scheme, U.S. Attorney Craig Carpenito announced.
George Bussanich Sr., 60, of Park Ridge, New Jersey, was sentenced to 27 months in prison. He previously pleaded guilty before U.S. District Judge Claire C. Cecchi to a superseding information charging him with one count of bank fraud conspiracy and one count of tax evasion. His son, George Bussanich Jr., 39, of Upper Saddle River, New Jersey, was sentenced to eight months of home detention. He previously pleaded guilty to tax evasion. Judge Cecchi imposed both sentences today in Newark federal court.
According to documents filed in this case and statements made in court:
Between 2009 and 2012, Bussanich Sr. and Bussanich Jr. conspired to defraud mortgage lenders through the sham short sales of two properties, located on Jefferson Avenue in Emerson, New Jersey, and Lillian Street in Park Ridge.
Bussanich Sr. controlled various purported medical clinics and surgical centers in New Jersey. He recruited his business partner and an employee from a sleep clinic in Cliffside Park, New Jersey, to pose as legitimate, unrelated buyers of the properties. In order to conceal his involvement, Bussanich Sr. used a business entity he controlled to fund each short sale transaction and the subsequent repurchase of those properties. Bussanich Jr., the owner of record of both properties, negotiated the short sales with the lenders using materially false information that misrepresented the circumstances of the short sales, the relationships of the parties, and the source of funding for the transactions.
Approximately two years after the fraudulent short sales, Bussanich Sr. bought the properties back from the straw purchasers using money that he owed his business partner from an earlier venture.
Bussanich Sr. and Bussanich Jr. also failed to disclose on their tax returns income that they received from the purported medical clinics and surgical centers. Bussanich Sr. and Bussanich Jr. used those funds to purchase high-end luxury vehicles and to purchase official bank checks to fund the fraudulent short sales.
In addition to the prison terms, Judge Cecchi sentenced Bussanich Sr. to five years of supervised release and Bussanich Jr. to three years of supervised release.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s sentencings.
The government is represented by Assistant U.S. Attorney Ari B. Fontecchio of the Office’s Economic Crimes Unit, and Nicholas P. Grippo, Attorney in Charge of the Trenton Office.
Defense counsel: Stacy Biancamano Esq., Jersey City, New Jersey
Farmington Man Sentenced to 46 Months for Participating in Fentanyl Trafficking ConspiracyRead the Press Release
CONCORD - Randy Stevens, 29, of Farmington, was sentenced to 46 months in federal prison for conspiracy to possess fentanyl with intent to distribute and possession of fentanyl with the intent to distribute, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on June 30, 2018, an individual who was cooperating with law enforcement officers advised that Stevens planned to travel from Rochester, New Hampshire to the Lawrence, Massachusetts area in a pickup truck to purchase a large quantity of fentanyl. Later the same day, law enforcement officers observed the truck travel from Rochester to a liquor store in Lawrence. After the vehicle returned to New Hampshire, it was stopped by the New Hampshire State Police for a traffic violation. Stevens was a passenger in the vehicle. After a narcotics detection dog alerted to the presence of narcotics in the truck, 269.3 grams of fentanyl were recovered.
On the evening of June 2, 2018, a Kingston, New Hampshire police officer conducted a traffic stop of a motorcycle that Stevens was operating on Route 125. Stevens provided the officer with a false name and the officer later recovered 42 grams of fentanyl from the motorcycle.
Stevens previously pleaded guilty on August 2, 2019.
“Interstate fentanyl trafficking has produced devastating consequences for the people of New Hampshire.” said U.S. Attorney Murray. “In order to stop this deadly trade and protect our citizens, we will seek the prosecution and incarceration of responsible parties. Mr. Stevens’ prison sentence should serve as a warning to drug dealers who are inclined to engage in similar conduct.”
“Fentanyl distribution is destroying people’s lives and wreaking havoc in our communities,” said DEA Special Agent in Charge Brian D. Boyle. “DEA and our law enforcement partners will aggressively pursue and bring to justice any individual or organization that distributes this poison.”
This matter was investigated by the Drug Enforcement Administration and the New Hampshire State Police. The case was prosecuted by Assistant U.S. Attorney Jennifer Cole Davis.
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Fairfield Man Charged with Attempted Online Coercion of a Child and Distribution of Child PornographyRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Kevin Blaine Cline, 46, of Fairfield, charging him with attempted online coercion of a child and distribution of child pornography, U.S. Attorney McGregor W. Scott announced.
According to the criminal complaint, on Nov. 1, an undercover agent observed Cline’s post on the social media platform called Whisper that said he was “Looking for dad’s (sic) who love their daughters near me I...... Have a question.” The notation at the bottom of Cline’s post said, “Freaky Sexual Desires.” During a two-day conversation on Whisper with the undercover agent, Cline sent two images of child pornography to the agent and attempted to arrange a meeting with a 7‑year-old girl in order to sexually molest her. Cline then drove from Fairfield to Pleasant Hill to meet up with the intended victim. When Cline arrived, he was placed under arrest.
This case is the product of an investigation by the Silicon Valley Internet Crimes Against Children Task Force (SVICAC) a federally and state-funded task force with agents from federal, state, and local agencies that investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. The Contra Costa District Attorney’s Office and Homeland Security Investigations conducted the investigation as part of the SVIAC. Assistant U.S. Attorney Christina McCall is prosecuting the case.
If convicted of attempted online coercion, Cline faces a mandatory minimum penalty of 10 years in prison and a maximum statutory penalty of life in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Drug dealer with baby who had cocaine in system sent to prisonRead the Press Release
CORPUS CHRISTI, Texas – A 33-year-old Corpus Christi resident and member of the Sureno 13 gang has been ordered to federal prison following his convictions for possession with intent to distribute crack cocaine and carrying a firearm in furtherance of drug trafficking, announced U.S. Attorney Ryan K. Patrick. Manual Lozano pleaded guilty July 15.
Today, U.S. District Judge John D. Rainey handed Lozano a 130-month sentence. He was further ordered to serve three years of supervised release as to each count and refrain from association with gang members.
The investigation revealed Lozano was involved in drug distribution from his 14th Street residence in Corpus Christi. Law enforcement executed a search warrant there, at which time they seized cocaine, crack cocaine, high potency meth known as “ice,” heroin and marijuana in various distribution quantities. They also found digital scales used to weigh the narcotics, glass tubes used to smoke cocaine and $2,883.
Authorities also discovered several firearms and ammunition in his possession. Those included an AK-47 style assault rifle as well as 9mm and .45 caliber handguns.
At the time of the search, Lozano’s 18-month old son was in his care and present in the home. Child Protective Services took custody of that child who tested positive for cocaine.
Lozano admitted he possessed the firearms in order to protect his narcotics trafficking operations. Lozano has multiple prior convictions for burglaries in Miami, Florida, and Edinburg as well as being a felon in possession of a firearm in Florida. As a convicted felon, he is prohibited from possessing firearms or ammunition per federal law.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, Immigration and Custom’s Enforcement’s Homeland Security Investigations and Corpus Christi Police Department conducted the investigation. Assistant U.S. Attorney David Paxton prosecuted the case.
Dover Man Sentenced to 10 Years for Methamphetamine TraffickingRead the Press Release
CONCORD – Alfonz Vei, 45, of Dover, was sentenced to 10 years in federal prison for distributing methamphetamine, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, beginning in September of, 2018, an undercover law enforcement officer (UC) purchased methamphetamine from Kristen Hodgkins. On October 9, 2018, in Dover, Vei and Hodgkins distributed 43.6 grams of methamphetamine to a UC. Agents observed Vei weighing out the methamphetamine on a scale just before Hodgkins took the drugs and delivered them to the UC.
On January 11, 2019, postal inspectors intercepted a package from a fictitious address and addressed to a residence in Dover, where Vei had a prior affiliation. Investigators observed Vei arrive at the address at approximately the time the package was due to be delivered. The package was searched pursuant to a warrant and was determined to contain 444.4 grams of methamphetamine.
On January 16, 2019, Vei was stopped driving a car in Exeter. He had an unloaded Glock 9 mm firearm in the vehicle, as well as approximately one ounce of methamphetamine and 115 ecstasy pills.
Hodgkins was sentenced to 84 months on September 25, 2019. Vei previously pleaded guilty on July 30, 2019.
“Methamphetamine is a dangerous drug that presents a growing threat to the citizens of New Hampshire,” said U.S. Attorney Murray. “Even as we combat the opioid crisis, we remain committed to working closely with our law enforcement partners to identify, prosecute, and incarcerate those who endanger our community by distributing methamphetamine and other dangerous drugs.”
“As methamphetamine seizures by law enforcement are on the rise DEA stands committed to keeping this highly addictive drug out of the Granite State,” said DEA Special Agent in Charge Brian D. Boyle. “This investigation demonstrates the strength of collaborative law enforcement efforts in New Hampshire.”
This matter was investigated by the Drug Enforcement Administration and the United States Postal Inspection Service with assistance from the New Hampshire State Police and the Rochester Police Department. The case was prosecuted by Assistant U.S. Attorney John Davis.
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Doctor Sentenced to 7 Months in Federal Prison for Receipt and Delivery of Misbranded DevicesRead the Press Release
POCATELLO – Temp Ray Patterson, MD, 55, formerly of Burley, Idaho, was sentenced to seven months in prison for receipt and delivery of misbranded devices, U.S. Attorney Bart M. Davis announced today. U.S. District Judge B. Lynn Winmill also sentenced Patterson to serve one year of supervised release following his incarceration, and to pay restitution of $8,200 and a fine of $10,000.
According to court records, from March 2014 through April 2015, Patterson knowingly implanted in patients nine pairs of misbranded breast implants that were not approved by the Food and Drug Administration (FDA). The breast implants were shipped to the defendant from China.
Patterson provided brochures, handouts, pre-operative worksheets, and sample sizers that misled his patients into believing that they would receive FDA-approved implants, when they did not. For example, on February 27, 2015, Patterson implanted in a patient a misbranded pair of implants from China. Before and after the surgery, Patterson gave the patient labeling for FDA-approved implants, telling her that she received a certain brand of FDA-approved implants. To support this, Patterson sent the patient emails with pictures of the boxes and serial numbers of FDA-approved implants, falsely claiming that was what he implanted in her body. In addition, Patterson changed the patient’s medical records to show that she received a different size implant than was actually used. Patterson changed the size to match the sizing of the FDA-approved implants he told the patient he used.
“Members of the community trust their medical providers to use FDA-approved products,” said U.S. Attorney Davis. “Doctors who choose to mislead their patients and use unapproved products will be prosecuted. I commend the efforts of the FDA Office of Criminal Investigations for their work.”
“U.S. consumers rely on the FDA to ensure that medical devices, including breast implants, are safe and effective. They also rely on their doctors to properly identify the devices they are using,” said Special Agent in Charge Lisa L. Malinowski, FDA Office of Criminal Investigations Los Angeles Field Office. “When medical professionals attempt to put profits above their concern for their patients, we will investigate and bring them to justice.”
This case was investigated by Food and Drug Administration Office of Criminal Investigations with the assistance of Health and Human Services Office of Inspector General.
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Detroit Area Pharmacist Convicted of Unlawful Distribution of Controlled Substances in a Three Year Opioid Drug Diversion ConspiracyRead the Press Release
A Detroit area pharmacist was convicted yesterday in federal court in Detroit on charges of conspiracy to unlawfully distribute controlled substances and individual counts of unlawful distribution of opioids, U.S. Attorney Matthew Schneider announced today.
Schneider was joined in the announcement by Special Agent in Charge Keith Martin, U.S. Drug Enforcement Administration, Detroit Field Division; Special Agent in Charge Manny Muriel, Internal Revenue Service, Criminal Investigations; and Special Agent in Charge Steven D’Antuono, Federal Bureau of Investigation, Detroit Division.
Abidoun Fabode, R.Ph., 57, of Chesterfield, was convicted after a two-week trial on five counts charged in the indictment, including one count of conspiracy to unlawfully distribute controlled substances and four substantive counts of unlawful distribution.
The evidence presented during trial demonstrated that from January 2015 through March 2018, Fabode, who co-owned and operated Friendz Pharmacy in Detroit, dispensed more than 245,080 unit dosages of controlled substances which were issued outside the course of legitimate medical practice and for no legitimate medical purpose. The opioid prescriptions were presented to the defendant by patient recruiters who obtained the pills either from doctors willing to write unnecessary controlled substance prescriptions or people engaged in creating fake prescriptions. Fabode, fully knowing the illegitimacy of these prescriptions, dispensed the extremely dangerous and addictive opioids, including Oxycodone and Oxymorphone, in exchange for cash payments totaling in excess of $1,895,000. The pills were then later resold on the street market by the pill dealers, and carry a conservative estimated wholesale street value of $7 million.
Five other co-defendants, including pharmacists Enitan Sodiya-Ogundipe of Global Health Pharmacy in Pontiac; pharmacist Amir Rafi of Precare Pharmacy in Redford; Dr. Vasan Deshikachar; and pill dealers Niesheia and Andrei Tibu; all pled guilty to the conspiracy late last year. They are each set to be sentenced for their roles in this opioid drug diversion scheme in the coming months.
This case was prosecuted by Assistant United States Attorneys Brandy R. McMillion and A. Brant Cook. McMillion serves as the District’s Opioid Fraud Abuse and Detection Prosecutor as well as the Deputy-Chief of the Health Care Fraud Unit. The Opioid Fraud Abuse and Detection Unit is a Department of Justice initiative designating twelve special prosecutors across the country to focus on prosecuting medical professionals that are contributing to the nation’s opioid crisis. The case was investigated by special agents and task force officers of the DEA, the Oakland Country Sheriff’s Department, the Internal Revenue Service, and the Federal Bureau of Investigation.
Dallas, Texas Man Pleads Guilty to Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jacob Thomas Decker, age 28, of Dallas, Texas, entered a guilty plea to Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C), punishable by not more than 20 years imprisonment, a fine up to $1,000,000.00, or both.
The Indictment alleged that on or about January 16, 2019, within the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess with intent to distribute a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The charges arose from an investigation by the Durant Police Department, the Johnston County Sheriff’s Office, the Oklahoma Highway Patrol, and the Drug Enforcement Administration.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Rob Wallace represented the United States.
Convicted Felon with A Violent Past Found Guilty in Federal Firearms TrialRead the Press Release
Valdosta, Ga. – A convicted felon with a violent criminal past was found guilty this afternoon of possession of a firearm by a convicted felon, announced Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. After deliberating approximately one hour, a citizen jury convicted David Earl Butler, 30, of Valdosta. U.S. District Judge Louis Sands presided over the federal jury trial in Valdosta that began on Tuesday, November 12, 2019. Defendant Butler faces a maximum ten years imprisonment, a maximum $250,000 fine and three years supervised release. Sentencing has not been scheduled. There is no parole in the federal system.
Defendant Butler was taken into custody by Lowndes County Sheriff’s Office deputies on April 3, 2018, arrested on an outstanding felony warrant for aggravated assault with a deadly weapon and possession of a firearm during the commission of a felony. During a lawful search of the residence where Defendant Butler was taken into custody, deputies found a loaded .40 caliber Desert Eagle handgun and a box of .40 caliber ammunition. Defendant Butler was previously convicted of aggravated assault and terroristic threats in the Superior Court of Lowndes County, Georgia. The Defendant is currently on felony probation in Lowndes County. It is illegal for convicted felons to possess firearms.
“This case illustrates our multi-agency effort to enforce gun laws that prohibit convicted felons from possessing firearms, particularly when the convicted felon has a history of violence,” said U.S. Attorney Charlie Peeler. “It is a priority of this office to identify and prosecute violent offenders who jeopardize the safety of our communities. I want to thank the Lowndes County Sheriff’s Office, the FBI, and the Georgia Department of Community Supervision for their work in this case.”
This case was prosecuted as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Lowndes County Sheriff’s Office, Federal Bureau of Investigation, and the Georgia Department of Community Supervision. Assistant U.S. Attorneys Julia Bowen and Michael Solis are prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Cleveland, ND, Woman Pleads Guilty to Visa and Mail FraudRead the Press Release
FARGO – United States Attorney Drew H. Wrigley, District of North Dakota, announced that on November 14, 2019, Catherina Knecht, a/k/a Catherina Rheeder, age 43, formerly from Cleveland, ND, now residing in Williston, ND, pleaded guilty before Chief Judge Peter D. Welte, U.S. District Court, Fargo, ND, to an Indictment charging her with False Statement, False Swearing in an Immigration Matter, and Mail Fraud.
Knecht ran a business, Liberty Immigration & Visas, from her home in Cleveland, ND. Liberty Immigration aided employers seeking to obtain temporary workers under the H-2A (temporary agricultural) and H-2B (temporary nonagricultural) visa programs. An investigation by the Department of Labor’s Wage and Hour Division uncovered evidence of Knecht engaging in visa fraud. The Document Benefits Fraud Task Force in Minneapolis, MN, conducted a criminal investigation. They found evidence of fraud throughout Knecht’s visa work. This fraud included fraudulently securing H-2A status for foreign workers under the approved H-2A petitions of certain employers without the knowledge of those employers. Knecht then placed those H-2A workers with a different employer who was not authorized to employ H-2A workers. In the course of doing so, Knecht made materially false statements in both applications to Department of Labor (DOL) and in petitions to US Citizenship and Immigration Service (USCIS). Knecht committed mail fraud by submitting those applications via the mail. Knecht also placed foreign workers without authorization to work in the United States with employers and required the employers to pay her directly, telling those employers the workers’ visa paperwork was in progress.
Sentencing is scheduled for February 12, 2020, at 9:00 a.m., before Chief Judge Peter D. Welte.
"Securing the borders through immigration enforcement is a top priority for our Administration, and document fraud is the crime that too often helps keep people in the country illegally, so we will remain committed to prosecuting those whom attempt to dangerously erode our immigration and visa laws," said United States Attorney Drew Wrigley.
"Homeland Security Investigations remains committed to working in collaboration with our law enforcement partners to identify and dismantle criminal schemes designed to exploit our nation’s legal immigration system and interfere with legitimate businesses," said Tracy J. Cormier, Special Agent in Charge, HSI, St. Paul, MN. "HSI’s mission to bring these criminals to justice is instrumental to protecting the public and keeping these government programs intact."
"Catherina Knecht misused the H-2A program in order to enrich herself at the expense of foreign workers and American employers. The U.S. Department of Labor -Office of Inspector General will continue to work with the Department’s Wage and Hour Division and our law enforcement partners to vigorously pursue those who commit fraud involving foreign labor certification programs," said Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor - Office of Inspector General.
"Today’s guilty plea sends a strong message: The Diplomatic Security Service is committed to working with the U.S. Department of Justice, and our local law enforcement partners to investigate and prosecute all allegations of criminal activity related to passport and visa fraud," said Patrick S. Mills, Special Agent in Charge of the DSS Chicago Field Office. "The strong relationship we enjoy with our federal and local law enforcement partners is vital towards ensuring the integrity of U.S. travel documents and protecting greater U.S. interests."
This case was investigated by the Document Benefits Fraud Task Force (DBFTF). The Department of Homeland Security, Department of Justice, Department of Labor, and Department of State created the "Document and Benefit Fraud Task Force" to combat document and immigration benefits fraud. The DBFTF is comprised of federal, state, and local law enforcement agencies that target criminal organizations and beneficiaries behind fraudulent schemes. Agencies involved were the U.S. Department of State - Diplomatic Security Service, U.S. Department of Labor - Office of Inspector General, Department of Homeland Security - Homeland Security Investigations Document Benefit Fraud Task Force, United States Citizenship and Immigration Service, and U.S. Department of Labor - Wage and Hour Division.
This case was prosecuted by Assistant United States Attorney Megan A. Healy.
Chicago Man Sentenced to 65 Months in PrisonRead the Press Release
FORT WAYNE – Julian Hall Hurnes, age 30, of Chicago, Illinois was sentenced before U.S. District Court Judge Holly A. Brady for possession of a firearm by a convicted felon, announced U.S. Attorney Kirsch.
Hurnes was sentenced to 65 months in prison followed by 3 years of supervised release.
According to documents in this case, on January 12, 2019, Hurnes was the driver of a vehicle stopped for a traffic violation. Upon speaking with Hurnes, the officer noticed an odor of marijuana and asked Hurnes about it. Hurnes offered to allow the officer to search the vehicle. The officer located a handgun --which had an extended magazine loaded with 24 bullets-- under the driver’s seat. Hurnes had prior felony drug and residential burglary convictions.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department. The case was handled by Assistant United States Attorney Sarah E. Nokes.
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Chicago Felon Sentenced for East Texas Drug Trafficking CrimesRead the Press Release
TEXARKANA, Texas – A 44-year-old Chicago, Illinois, man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
James L. Morgan was found guilty on Apr. 26, 2019, of possession with intent to distribute methamphetamine and being a felon in possession of a firearm following a four-day trial before U.S. District Judge Robert W. Schroeder, III. Morgan was sentenced to 160 months in federal prison today by Judge Schroeder.
According to information presented in court, on Sep. 28, 2017, Morgan was stopped by Texas DPS troopers on IH-30 near Mt. Pleasant, Texas, for failing to maintain a single lane of traffic. During the traffic stop, Morgan fled on foot while a passenger, Antonio Alexander Lee, got back in the vehicle and drove away before being stopped by spike strips in Bowie County, Texas. Morgan was apprehended on a rural county road after crossing all lanes of IH-30 on foot and a barbed wire fence. A search of the vehicle revealed more than 75 grams of actual methamphetamine, a loaded firearm, a digital scale and approximately one gram of heroin. Further investigation revealed Morgan was a convicted felon and prohibited from owning or possessing firearms or ammunition. Morgan and Lee were indicted by a federal grand jury on Oct. 18, 2017.
Lee pleaded guilty to conspiracy to possess a controlled substance and was sentenced to 94 months in federal prison on Aug. 21, 2018.
This case was investigated by the Texas Department of Public Safety, Criminal Investigation and Highway Patrol Divisions; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Drug Enforcement Administration; Titus County Sheriff’s Office; Bowie County Sheriff’s Office; and the Cass County District Attorney’s Office. The case was prosecuted by Assistant U.S. Attorneys Allen Hurst, Jonathan R. Hornok and Graham Jones.
Charleston Man Sentenced to 10 Years in Federal Prison for Distributing MethamphetamineRead the Press Release
CHARLESTON, W.Va. – A Charleston man was sentenced to federal prison for a drug trafficking offense, announced United States Attorney Mike Stuart. George Ray Breckenridge, 41, was sentenced to 10 years in prison for distribution of methamphetamine. He will serve 96 months of supervised release after his imprisonment.
“A significant sentence for a significant meth dealer,” said United States Attorney Mike Stuart. “As you can see in this case, law enforcement agencies are working together like never before to get drug dealers like Breckenridge out of our communities and away from our families.”
Breckenridge previously admitted that he distributed methamphetamine. Court hearings and public filings established that, on August 2, 2018, Breckenridge, working with two other drug traffickers, traveled from his house on Garrison Avenue in Charleston to the Dunbar Plaza Hotel, where he delivered 34 grams of pure methamphetamine to a confidential informant. Police investigators tried to initiate a traffic stop on Breckenridge’s car as he drove back home from the hotel. Breckenridge then took off back to his house on Garrison Avenue, where he fled on foot into the woods. Investigators arrested Breckenridge minutes later.
The Metropolitan Drug Enforcement Network Team (MDENT), the Nitro Police Department, the Charleston Police Department, the South Charleston Police Department, the Kanawha County Sheriff’s Department, and the Drug Enforcement Administration (DEA) conducted the investigation. Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Former Assistant United States Attorney Drew Inman and Assistant United States Attorney L. Alexander Hamner handled the prosecution.
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Charleston Area Man Given Lengthy Sentence on Federal Drug ChargesRead the Press Release
Charleston, South Carolina ---- United States Attorney Sherri Lydon announced today that Brian Dale Lee, age 40, was sentenced in federal court in Charleston after pleading guilty to conspiring to possess with intent to distribute and to distribute heroin and methamphetamine. United States District Judge Richard M. Gergel, of Charleston, sentenced Lee to 293 month in federal prison, to be followed by 10 years supervised release. There is no parole in the federal system.
Evidence presented in the case established that Lee was arrested along with two co-defendants at the a hotel in Orangeburg on January 16, 2018, after returning from a trip to Atlanta to purchase methamphetamine and heroin. During a search of Lee’s room, agents found 1,345 grams of methamphetamine and 150 grams of heroin, over $15,000, and five cell phones. Further investigation showed that Lee had previously made multiple trips to Atlanta to purchase large quantities of methamphetamine and heroin for distribution in the Charleston area.
Evidence in the case also showed that approximately four months prior to his arrest, Lee sold fentanyl to Lisa Cohen, who was previously sentenced in a separate federal case. Cohen’s 17-year-old son died from a fentanyl overdose after using the drugs provided by Lee.
The case was investigated by agents of the Drug Enforcement Administration, South Carolina Highway Patrol, South Carolina Law Enforcement Division, Berkeley County Sheriff’s Office, Dorchester County Sheriff’s Office, North Charleston Police Department, and Charleston County Coroner’s Office. Assistant United States Attorney Nick Bianchi of the Charleston Office prosecuted the case.
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Career Offender Sentenced to 17 Years for Distributing Heroin and Violating Supervised ReleaseRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell has sentenced Willie D. Hayden (33, Cape Coral) to 17 years in federal prison for distributing a controlled substance, possessing with the intent to distribute a controlled substance, and violating his supervised release.
Hayden had pleaded guilty on May 8, 2019, and he admitted to violating the conditions of his supervised release on November 12, 2019.
According to court documents, on two separate occasions, in August and October 2018, while on supervised release, Hayden sold heroin to a confidential informant working with law enforcement. In November 2018, law enforcement officers executed a search warrant at Hayden’s residence and seized 10.4 grams of heroin packaged in 29 separate baggies.
This case was investigated by the Federal Bureau of Investigation and the Lee County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Trent Reichling.
Camden County, New Jersey, Man Sentenced to 10 Years in Prison for Supplying Crack Cocaine to Drug Trafficking OrganizationRead the Press Release
CAMDEN, N.J. - A Camden County, New Jersey, man was sentenced today to 120 months in prison for his role in a Camden drug trafficking organization that distributed large amounts of crack cocaine, furanyl fentanyl and heroin, U.S. Attorney Craig Carpenito announced.
Mark Campbell, 39, a/k/a “D” and Diz,” of Sicklerville, New Jersey, previously pleaded guilty before U.S. District Judge Renée Marie Bumb to a superseding information charging him with one count of conspiracy to distribute and possess with intent to distribute 280 grams or more of cocaine base. Judge Bumb imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Campbell admitted that he supplied large quantities of cocaine base (crack cocaine) to members of a drug trafficking organization operating around the 1700 block of Filmore Street in Camden. The organization also distributed heroin and furanyl fentanyl, which it obtained from other suppliers. Ten members of the drug ring were arrested in June 2017 following a long-term investigation by the FBI, which utilized multiple telephone wiretaps, surveillance, confidential informants, cooperating witnesses, more than 20 controlled drug purchases, a GPS vehicle tracker and four court-authorized search warrants, among other investigative techniques. Members of the drug trafficking organization distributed crack cocaine, furanyl fentanyl, and heroin to users and resellers in and around Camden and to people cooperating with the FBI.
The investigation ultimately led to the seizure of more than 300 grams of crack cocaine, quantities of furanyl fentanyl and heroin, a firearm, and drug paraphernalia. An 11th defendant was later charged in March 2018.
In addition to the prison term, Judge Bumb sentenced Campbell to three years of supervised release, 300 hours of community service and fined him $10,000.
U.S. Attorney Carpenito credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael T. Harpster; the Camden County Police Department, under the direction of Chief Joseph Wysocki; the Camden County Prosecutor’s Office, under the direction of Acting Prosecutor Jill S. Mayer; and the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation. He also thanked the Camden County Sheriff’s Department, the Cherry Hill Police Department, and the U.S. Department of Homeland Security Investigations (HSI) for their assistance.
The government is represented by Assistant U.S. Attorneys Gabriel J. Vidoni and Alisa Shver of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Troy A. Archie Esq., Cinnaminson, New Jersey
California Man Indicted in $300 Million Nationwide Investment Fraud and Ponzi SchemeRead the Press Release
Greenville, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Scott A. Kohn, age 64, of Newport, California, and Future Income Payments, LLC (FIP), an entity organized under the laws of Nevada, have been charged in a federal Indictment alleging a conspiracy to engage in mail and wire fraud. Kohn was arraigned yesterday before a United States Magistrate Judge in Greenville.
According to the Indictment, FIP operated a Ponzi scheme in which it actively recruited pension holders who were desperate for money, including many veterans of the United States Armed Forces. The pensioners made monthly payments to FIP in exchange for a lump sum payment or loan. The adjusted annual percentage rate on these transactions often exceeded 100%.
FIP then solicited investors to purchase “structured cash flows,” which were the pensioners’ monthly pension payments. FIP promised the investors a rate of return between 6.5% and 8%. It took active steps to conceal from the investors the usurious nature of its transactions with the pension holders. FIP diverted new investor funds flowing into the business to fund payments to earlier investors in order to keep the scheme operational. When FIP ceased doing business in early 2018, investors were owed approximately $300 million. The scheme alleged in the Indictment victimized over 2,600 individuals.
“The rule of law is essential to a prosperous economy, and those who avail themselves of our marketplace are expected to abide by our laws,” said U.S. Attorney Lydon. “The scheme alleged in this Indictment took advantage of pensioners facing difficult financial situations – including veterans of the U.S. Armed Forces – and preyed upon innocent investors to the tune of roughly $300 million. Along with our law enforcement partners, the U.S. Attorney’s Office will continue to hold accountable those who flout our laws and line their own pockets by robbing individuals of their hard-earned money.”
The maximum penalty Kohn could face for the conspiracy charge is 20 years in federal prison and a fine of $250,000. The case is being investigated by agents of the Federal Bureau of Investigation and is assigned to Assistant United States Attorney Bill Watkins of the Greenville office for prosecution.
The United States Attorney stated that all charges in this Indictment are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Business Owner Pleads Guilty to Evading Payment of His Income TaxesRead the Press Release
PITTSBURGH, Pa. - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to a charge of tax evasion, United States Attorney Scott W. Brady announced today.
Robert Rionda, Jr. pleaded guilty to evading payment of his income taxes before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that Rionda solely owned and operated Arms Insurance Group Inc, (Arms Inc.), a subchapter S corporation, from 2002 through May 2014. In October 2011, the Collection Division of the IRS opened a case on Rionda for unpaid income taxes for the 2009, 2010 and 2011 tax years. In May 2012, attempts to obtain payments from Rionda were unsuccessful, and the IRS levied his personal bank accounts.
The defendant responded to the levies by directing the company’s controller/bookkeeper to:
- Stop issuing salary checks to Rionda and his wife;
- Stop using his personal checking accounts altogether; and
- Start paying all of his personal bills from the company's bank accounts rather than from his personal bank accounts.
Over the next several years, Rionda continued to file apparently accurate corporate returns on behalf of Arms Inc., as well as personal income tax returns, but he made only minimal payments to the IRS for the personal income taxes he owed.
During the years 2009-2014, Rionda received distributions from the company each year which varied from approximately $376,000 to $1.6 million per year.
Rionda sold Arms Inc to his son over time, starting in May 2014, and he stayed on as a part owner of the son’s new business, Arms Insurance Group LLC, (Arms LLC). Arms LLC began making payments by check to Rionda that represented monthly payments on a promissory note, rent payments, and owner draw payments. Rionda deposited some of these checks to two bank accounts held by Arms Inc., rather than depositing them to personal bank accounts in his own name.
During the years 2014-2016, the new company, Arms LLC, paid distributions to Rionda of $92,000, $298,410, and $291,460.
Despite receiving all of these distributions from Arms Inc. and Arms LLC, Rionda chose not to make substantial payments towards his taxes. Rionda did, however, make payments towards his personal mortgage, a mortgage on a business property, his credit cards, and his utility bills. In addition, Rionda also transferred millions of dollars in loans and purported investments to another individual. The total tax loss, including assessed interest and penalties, is $1,539,117.00.
Judge Bissoon scheduled sentencing for 10:00 a.m on March 5, 2020. The law provides for a total sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the and the prior criminal history, if any, of the defendant.
Pending sentencing, the court released Rionda on bond.
Assistant United States Attorneys Stephen R. Kaufman and Mary M. Houghton are prosecuting this case on behalf of the government.
The Internal Revenue Service - Criminal Investigation conducted the investigation that led to the prosecution of Rionda.
Brooklyn Man Sentenced to Four Years in Prison for Bank Fraud Conspiracy and Aggravated Identity TheftRead the Press Release
NEWARK – A Brooklyn, New York, man was sentenced today to 48 months in prison for conspiring to rob a home improvement stores with stolen credit card information, U.S. Attorney Craig Carpenito announced.
Omar Doolittle, 38, previously pleaded guilty before U.S. District Court Judge Stanley R. Chesler to an information charging him with one count of conspiring to commit bank fraud and one count of aggravated identity theft. Judge Chesler imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From July 2017 through August 2018, Doolittle and his conspirators placed online orders with a home improvement store using stolen credit card information and arranged to pick up those goods in person at various store locations throughout New Jersey and New York. Doolittle and his conspirators would pick up the goods using dozens of false or stolen identities and would then return the goods at different store locations or sell the goods at a discount to third parties for cash.
In addition to the prison term, Judge Chesler sentenced Doolittle to five years of supervised release. Restitution will be determined at a later date.
U.S. Attorney Carpenito credited inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn, with the investigation leading to today’s sentence.The government is represented by Assistant U.S. Attorney Ryan L. O’Neill of the U.S. Attorney’s Office’s Organized Crime and Drug Enforcement Task Force/Narcotics Unit in Newark.
Defense counsel: John Yauch Esq., Assistant Federal Public Defender, Newark
Bergen County Man Sentenced to 37 Months in Prison for Exchanging over $750,000 in ‘Snap’/Food Stamp Benefits for Cash and Fleeing to Avoid ProsecutionRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man was sentenced today to 37 months in prison for his role in a food stamps fraud and his subsequent flight to avoid prosecution, U.S. Attorney Craig Carpenito announced.
Jamil Bader, 60, of Teaneck, New Jersey, previously pleaded guilty before U.S. District Judge Brian R. Martinotti to an indictment charging him with one count of Supplemental Nutrition Assistance Program (SNAP) benefits fraud. Judge Martinotti imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Every food stamp/SNAP recipient receives an Electronic Benefits Transfer (EBT) card, similar to a debit card, with which to make purchases. Every retailer authorized to accept SNAP benefits has an EBT terminal. Food purchases are made by swiping the card at the terminal. After the customer enters a Personal Identification Number (PIN), the EBT terminal verifies the PIN, determines whether the customer’s account balance is sufficient to cover the transaction and informs the retailer whether the transaction should be authorized or declined. If the transaction is authorized, the amount of the purchase is then deducted from the SNAP benefits reserved for the customer, and the amount is credited to the retailer’s designated bank account.
Bader admitted that he controlled a small grocery store that was located on Clinton Avenue in Newark between September 2013 and September 2016. Bader acknowledged placing this store in another person’s name because he had previously been banned from participation in SNAP for similar conduct. Bader admitted that he repeatedly exchanged SNAP benefits for cash and kept a portion of that transaction for himself. Bader acknowledged that this scheme caused at least $754,424 in losses to the federal government. Bader also admitted fleeing from the United States and obtaining a foreign passport in an effort to avoid these criminal charges.
In addition to the prison term, Judge Martinotti sentenced Bader to three years of supervised release and ordered him to pay restitution of $754,424.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Agriculture – Office of the Inspector General, under the direction of Special Agent in Charge Bethanne Dinkins, with the investigation, and the U.S. Marshals Service and Department of Homeland Security with Bader’s apprehension and return to New Jersey.
The government is represented by Special Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Frederick “Chip” Dunne III Esq., Kearny, New Jersey
Battle Creek Men Sentenced to 60 Months Imprisonment on Fentanyl and Heroin ChargesRead the Press Release
GRAND RAPIDS, MICHIGAN – United States Attorney Andrew Birge announced today that Elias Deshawnte Mills and Ralph Knox II were each sentenced in federal court to 60 months in prison and four years supervised release for their roles in a conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl and a detectible amount of heroin.
This case involved two seizures of drugs. One seizure followed a traffic stop of a car carrying defendant Mills travelling from Detroit, where he obtained the fentanyl and other drugs, to Battle Creek. Battle Creek Police actually recovered the fentanyl from a woman’s body cavity after a trained canine notified law enforcement of the possibility of drugs by alerting on the driver’s seat where the woman was sitting. After a complete investigation, the woman was referred to state rather than federal authorities for consideration of charges. The other seizure followed a search of Knox’s home in Battle Creek where the defendants stored drugs. The fentanyl found in Knox’s home was particularly troubling because police recovered it from an open kitchen drawer in a house where four minor children resided. Both defendant Mills and defendant Knox had prior Calhoun County drug convictions.
The investigation was conducted by the Battle Creek Police Department and Homeland Security Investigations (HSI). Assistant U.S. Attorneys Vito S. Solitro and Kate Zell prosecuted the case.
“Fentanyl and other synthetic opioids continue to claim the lives of our loved ones,” said Vance Callender, HSI Detroit Special Agent in Charge. “HSI is working around the clock and around the world to dismantle the international smuggling networks that represent the supply chain for those who look to profit from the suffering of others. HSI maintains a global network of international law enforcement partners to protect the Homeland and U.S. financial infrastructure.”
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Baton Rouge Man Indicted for Use of Fire to Commit a Felony, Use of Fire to Maliciously Damage Property, and Wire FraudRead the Press Release
United States Attorney Brandon J. Fremin announced today that Saleem Yousef Dabit, age 73, of Baton Rouge, Louisiana, was indicted on November 7, 2019, by a federal grand jury charging him with use of fire to commit a felony, use of fire to maliciously damage property, and wire fraud.
According to the indictment, Dabit owned and operated Sam's Men's Fashions, a retail men's clothing store located at 5154 Plank Road, Baton Rouge, Louisiana. On January 1, 2019, Dabit is alleged to have set fire to Sam's Men's Fashions with gasoline from at least 15 containers, which resulted in a massive fuel-air explosion, with the intent to damage and destroy the property and collect on his commercial property and business interruption insurance. On January 2, 2019, Dabit allegedly made an insurance claim for the fire loss and damage to his business for an estimated loss of over $500,000.
U.S. Attorney Fremin stated, “Arson is not only an extremely dangerous crime, but it is also a serious economic crime, as insurance fraud causes an increase in insurance costs to all other citizens. This indictment demonstrates our commitment to bring arsonists to justice, and protect life and property of the community. I want to thank our prosecutor, the ATF, and the Baton Rouge Fire Department for their excellent work on this case.
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the Bureau of Alcohol, Tobacco, Firearms and Explosives, with substantial assistance from the Baton Rouge Fire Department. The case is being prosecuted by Assistant United States Attorney Brian Frazier.
NOTE: An indictment is an accusation by a grand jury. Defendants are presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Barbour County woman sentenced for role in a methamphetamine distribution operationRead the Press Release
ELKINS, WEST VIRGINIA – Destiny Hope Robinson, of Philippi, West Virginia, was sentenced today to 80 months incarceration for methamphetamine distribution, U.S. Attorney Bill Powell announced.
Robinson, age 22, pled guilty to one count of “Conspiracy to Distribute Methamphetamine” in July 2019. Robinson admitted to distributing more than five grams of methamphetamine in Randolph County from December 2017 to July 2018.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Mountain Region Drug & Violent Crimes Task Force and the Randolph County Sheriff’s Office investigated.
U.S. District Judge Thomas S. Kleeh presided.
Attorney General William P. Barr Releases First-Ever Semiannual Report on the Fix NICS ActRead the Press Release
On Nov. 14, 2019, the Attorney General published and submitted to Congress the first semiannual report on the Fix NICS Act. The report, required by the Fix NICS Act passed by Congress in March 2018, reflects strong compliance with the Act and demonstrates renewed efforts at all levels of government to improve the sharing of records and information that are vital to the effective operation of the National Instant Criminal Background Check System (NICS).
“An effective NICS system is critical to ensuring that we keep guns out of the hands of those who should not have them,” said Attorney General William P. Barr. “I am encouraged by the results of this initial report. Fix NICS implementation is still in its infancy, yet already we’re seeing great strides being made across government – state, tribal, and federal law enforcement - to strengthen the NICS. Given the preliminary data, it is clear that the Fix NICS Act is well on its way to doing exactly what it was intended to do – make the NICS better.”
The NICS is a computerized system designed to help determine if a person is disqualified from possessing or receiving firearms by conducting a search of available relevant records. The databases searched by the NICS contain records with information relevant to the legal prohibitions against firearm possession and purchasing under both federal and state law. To function effectively, the NICS must have access to complete, accurate, and timely information submitted by relevant agencies in all levels of government across the country.
The 2018 Fix NICS Act was passed to encourage government agencies to improve their records submission processes and further strengthen the NICS. Under the Fix NICS Act:
- Federal agencies:
- must report certain record submission metrics to the Attorney General in semiannual certifications; and
- must establish four-year implementation plans to improve records submissions.
- States and tribal governments:
- are incentivized with grant preferences to establish four-year implementation plans.
- The Attorney General:
- must publish and submit to Congress a semiannual report on federal agency compliance with the Act; and
- must determine whether federal agencies, states, and Indian tribal governments have achieved substantial compliance with the benchmarks set out in their implementation plans.
Report Highlights:
Compliance:
- 45 federal agencies submitted certifications and implementation plans
- All 50 states, the District of Columbia, and Indian tribal governments established implementation plans and
- Another 44 federal agencies certified they do not have any relevant records
Early Results:
The efforts by federal agencies, states, and Indian tribal governments under the Act are already paying off. Between April 2018 and August 2019:
- There was an increase of over six million records in the three national databases searched with every NICS check—a 6.2 percent increase. In addition, there was a 15 percent increase in records in one of those databases, the NICS Indices.
- The number of Firearm Retrieval Referrals (FRRs) (where a prohibited person is able to purchase a firearm because the background check could not be concluded within three business days due to incomplete records) decreased each month in comparison to the same month during the previous year, for an average monthly decline of 102 FRRs.
- With the exception of June 2018, there was an increase in the percentage of NICS checks resulting in an immediate determination (not requiring a delay for further research) compared to the previous year. Specifically, there was an average increase of 0.51 percent for each month when compared with the same month of the previous year.
- From May 2019 through July 2019, the military branches enhanced their record reporting by increasing entries into the Controlled Substance category by 10 percent, with an overall increase in multiple categories of 2.63 percent.
- The U.S. Customs and Border Protection entered approximately 13 million illegal or unlawful alien records into the NICS Indices in October 2019.
Although the implementation plans have been in place for just a few months, these early indicators are encouraging. As the plans are executed over the next several years, the Department of Justice expects to see a real and lasting positive impact on NICS records and operations.
The complete report can be accessed here: https://www.justice.gov/ag/fix-nics-report-2019.
- Federal agencies:
Attorney General Announces Launch of Project Guardian – A Nationwide Strategic Plan to Reduce Gun ViolenceRead the Press Release
Today, Attorney General William P. Barr announced the launch of Project Guardian, a new initiative designed to reduce gun violence and enforce federal firearms laws across the country. Specifically, Project Guardian focuses on investigating, prosecuting, and preventing gun crimes.
Reducing gun violence and enforcing federal firearms laws have always been among the Department’s highest priorities. In order to develop a new and robust effort to promote and ensure public safety, the Department reviewed and adapted some of the successes of past strategies to curb gun violence. Project Guardian draws on the Department’s earlier achievements, such as the “Triggerlock” program, and it serves as a complementary effort to the success of Project Safe Neighborhoods (PSN). In addition, the initiative emphasizes the importance of using all modern technologies available to law enforcement to promote gun crime intelligence.
“Gun crime remains a pervasive problem in too many communities across America. Today, the Department of Justice is redoubling its commitment to tackling this issue through the launch of Project Guardian,” said Attorney General William P. Barr. “Building on the success of past programs like Triggerlock, Project Guardian will strengthen our efforts to reduce gun violence by allowing the federal government and our state and local partners to better target offenders who use guns in crimes and those who try to buy guns illegally.”
“Reducing gun crime in South Carolina is a priority for the Department, the U.S. Attorney’s Office, and law enforcement across our state,” said U.S. Attorney for the District of South Carolina Sherri A. Lydon. “Through Project Guardian and Project Safe Neighborhoods, we are prioritizing partnerships with our Solicitors’ Offices and our local, state, and federal law enforcement agencies that will help us identify and prosecute those offenders who pose the greatest threat to our safety.”
“ATF has a long history of strong partnerships in the law enforcement community,” said Acting Director Regina Lombardo. “Make no mistake, the women and men of ATF remain steadfast to our core mission of getting crime guns off of our streets. ATF and U.S. Attorneys nationwide will leverage these partnerships even further through enhanced community outreach initiatives and coordination with local, state, and tribal law enforcement and prosecutors to cut the pipeline of crime guns from those violent individuals who seek to terrorize our communities. Project Guardian will enhance ATF’s Crime Gun Intelligence, to include identifying, investigating and prosecuting those involved in the straw purchases of firearms, lying on federal firearms transaction forms, and those subject to the mental health prohibition of possessing firearms.”
Project Guardian’s implementation is based on five principles:
- Coordinated Prosecution. Federal prosecutors and law enforcement will coordinate with state, local, and tribal law enforcement and prosecutors to consider potential federal prosecution for new cases involving a defendant who: a) was arrested in possession of a firearm; b) is believed to have used a firearm in committing a crime of violence or drug trafficking crime prosecutable in federal court; or c) is suspected of actively committing violent crime(s) in the community on behalf of a criminal organization.
- Enforcing the Background Check System. United States Attorneys, in consultation with the Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in their district, will create new, or review existing, guidelines for intake and prosecution of federal cases involving false statements (including lie-and-try, lie-and-buy, and straw purchasers) made during the acquisition or attempted acquisition of firearms from Federal Firearms Licensees.
Particular emphasis is placed on individuals convicted of violent felonies or misdemeanor crimes of domestic violence, individuals subject to protective orders, and individuals who are fugitives where the underlying offense is a felony or misdemeanor crime of domestic violence; individuals suspected of involvement in criminal organizations or of providing firearms to criminal organizations; and individuals involved in repeat denials.
- Improved Information Sharing. On a regular basis, and as often as practicable given current technical limitations, ATF will provide to state law enforcement fusion centers a report listing individuals for whom the National Instant Criminal Background Check System (NICS) has issued denials, including the basis for the denial, so that state and local law enforcement can take appropriate steps under their laws.
- Coordinated Response to Mental Health Denials. Each United States Attorney will ensure that whenever there is federal case information regarding individuals who are prohibited from possessing a firearm under the mental health prohibition, such information continues to be entered timely and accurately into the United States Attorneys’ Offices’ case-management system for prompt submission to NICS. ATF should engage in additional outreach to state and local law enforcement on how to use this denial information to better assure public safety.
Additionally, United States Attorneys will consult with relevant district stakeholders to assess feasibility of adopting disruption of early engagement programs to address mental-health-prohibited individuals who attempt to acquire a firearm. United States Attorneys should consider, when appropriate, recommending court-ordered mental health treatment for any sentences issued to individuals prohibited based on mental health.
- Crime Gun Intelligence Coordination. Federal, state, local, and tribal prosecutors and law enforcement will work together to ensure effective use of the ATF’s Crime Gun Intelligence Centers (CGICs), and all related resources, to maximize the use of modern intelligence tools and technology. These tools can greatly enhance the speed and effectiveness in identifying trigger-pullers and finding their guns, but the success depends in large part on state, local, and tribal law enforcement partners sharing ballistic evidence and firearm recovery data with the ATF.
Federal law enforcement represents only about 15% of all law enforcement resources nationwide. Therefore, partnerships with state, local, and tribal law enforcement and the communities they serve are critical to addressing gun crime. The Department recognizes that sharing information with our state, local, and tribal law enforcement partners at every level will enhance public safety, and provide a greater depth of resources available to address gun crime on a national level.
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For more information on Project Guardian, see the Attorney General’s memorandum at: https://www.justice.gov/ag/project-guardian-memo-2019/download.
- Coordinated Prosecution. Federal prosecutors and law enforcement will coordinate with state, local, and tribal law enforcement and prosecutors to consider potential federal prosecution for new cases involving a defendant who: a) was arrested in possession of a firearm; b) is believed to have used a firearm in committing a crime of violence or drug trafficking crime prosecutable in federal court; or c) is suspected of actively committing violent crime(s) in the community on behalf of a criminal organization.
Attorney General Announces Launch of Project Guardian – A Nationwide Strategic Plan to Reduce Gun ViolenceRead the Press Release
On Wednesday, Attorney General William P. Barr announced the launch of Project Guardian, a new initiative designed to reduce gun violence and enforce federal firearms laws across the country. Specifically, Project Guardian focuses on investigating, prosecuting, and preventing gun crimes.
Reducing gun violence and enforcing federal firearms laws have always been among the Department’s highest priorities. In order to develop a new and robust effort to promote and ensure public safety, the Department reviewed and adapted some of the successes of past strategies to curb gun violence. Project Guardian draws on the Department’s earlier achievements, such as the “Triggerlock” program, and it serves as a complementary effort to the success of Project Safe Neighborhoods (PSN). In addition, the initiative emphasizes the importance of using all modern technologies available to law enforcement to promote gun crime intelligence.
“Gun crime remains a pervasive problem in too many communities across America. Today, the Department of Justice is redoubling its commitment to tackling this issue through the launch of Project Guardian,” said Attorney General William P. Barr. “Building on the success of past programs like Triggerlock, Project Guardian will strengthen our efforts to reduce gun violence by allowing the federal government and our state and local partners to better target offenders who use guns in crimes and those who try to buy guns illegally.”
“Attorney General Barr’s Project Guardian plan will result in a reduction of gun related violent crime. Americans will be safer as a result of this initiative, plain and simple,” said U.S. Attorney Trent Shores. “My office will continue its close work with the Tulsa Police Department and ATF to focus on gun possession violations involving persons with domestic violence convictions and mental health adjudications.”
Acting Director Regina Lombardo. “Make no mistake, the women and men of ATF remain steadfast to our core mission of getting crime guns off of our streets. ATF and U.S. Attorneys nationwide will leverage these partnerships even further through enhanced community outreach initiatives and coordination with local, state, and tribal law enforcement and prosecutors to cut the pipeline of crime guns from those violent individuals who seek to terrorize our communities. Project Guardian will enhance ATF’s Crime Gun Intelligence, to include identifying, investigating and prosecuting those involved in the straw purchases of firearms, lying on federal firearms transaction forms, and those subject to the mental health prohibition of possessing firearms.”
Project Guardian’s implementation is based on five principles:
- Coordinated Prosecution. Federal prosecutors and law enforcement will coordinate with state, local, and tribal law enforcement and prosecutors to consider potential federal prosecution for new cases involving a defendant who: a) was arrested in possession of a firearm; b) is believed to have used a firearm in committing a crime of violence or drug trafficking crime prosecutable in federal court; or c) is suspected of actively committing violent crime(s) in the community on behalf of a criminal organization.
- Enforcing the Background Check System. United States Attorneys, in consultation with the Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in their district, will create new, or review existing, guidelines for intake and prosecution of federal cases involving false statements (including lie-and-try, lie-and-buy, and straw purchasers) made during the acquisition or attempted acquisition of firearms from Federal Firearms Licensees.
Particular emphasis is placed on individuals convicted of violent felonies or misdemeanor crimes of domestic violence, individuals subject to protective orders, and individuals who are fugitives where the underlying offense is a felony or misdemeanor crime of domestic violence; individuals suspected of involvement in criminal organizations or of providing firearms to criminal organizations; and individuals involved in repeat denials.
- Improved Information Sharing. On a regular basis, and as often as practicable given current technical limitations, ATF will provide to state law enforcement fusion centers a report listing individuals for whom the National Instant Criminal Background Check System (NICS) has issued denials, including the basis for the denial, so that state and local law enforcement can take appropriate steps under their laws.
- Coordinated Response to Mental Health Denials. Each United States Attorney will ensure that whenever there is federal case information regarding individuals who are prohibited from possessing a firearm under the mental health prohibition, such information continues to be entered timely and accurately into the United States Attorneys’ Offices’ case-management system for prompt submission to NICS. ATF should engage in additional outreach to state and local law enforcement on how to use this denial information to better assure public safety.
Additionally, United States Attorneys will consult with relevant district stakeholders to assess feasibility of adopting disruption of early engagement programs to address mental-health-prohibited individuals who attempt to acquire a firearm. United States Attorneys should consider, when appropriate, recommending court-ordered mental health treatment for any sentences issued to individuals prohibited based on mental health.
- Crime Gun Intelligence Coordination. Federal, state, local, and tribal prosecutors and law enforcement will work together to ensure effective use of the ATF’s Crime Gun Intelligence Centers (CGICs), and all related resources, to maximize the use of modern intelligence tools and technology. These tools can greatly enhance the speed and effectiveness in identifying trigger-pullers and finding their guns, but the success depends in large part on state, local, and tribal law enforcement partners sharing ballistic evidence and firearm recovery data with the ATF.
Federal law enforcement represents only about 15% of all law enforcement resources nationwide. Therefore, partnerships with state, local, and tribal law enforcement and the communities they serve are critical to addressing gun crime. The Department recognizes that sharing information with our state, local, and tribal law enforcement partners at every level will enhance public safety, and provide a greater depth of resources available to address gun crime on a national level.
For more information on Project Guardian, see the Attorney General’s memorandum at: https://www.justice.gov/ag/project-guardian-memo-2019/download.
Attorney General Announces Launch of Project Guardian - A Nationwide Strategic Plan to Reduce Gun ViolenceRead the Press Release
Knoxville, Tenn. – Today, Attorney General William P. Barr announced the launch of Project Guardian, a new initiative designed to reduce gun violence and enforce federal firearms laws across the country. Specifically, Project Guardian focuses on investigating, prosecuting, and preventing gun crimes.
Reducing gun violence and enforcing federal firearms laws have always been among the Department’s highest priorities. In order to develop a new and robust effort to promote and ensure public safety, the Department reviewed and adapted some of the successes of past strategies to curb gun violence. Project Guardian draws on the Department’s earlier achievements, such as the “Triggerlock” program, and it serves as a complementary effort to the success of Project Safe Neighborhoods (PSN). In addition, the initiative emphasizes the importance of using all modern technologies available to law enforcement to promote gun crime intelligence.
“Gun crime remains a pervasive problem in too many communities across America. Today, the Department of Justice is redoubling its commitment to tackling this issue through the launch of Project Guardian,” said Attorney General William P. Barr. “Building on the success of past programs like Triggerlock, Project Guardian will strengthen our efforts to reduce gun violence by allowing the federal government and our state and local partners to better target offenders who use guns in crimes and those who try to buy guns illegally.”
“Enforcement actions and partnerships are a large component of Project Safe Neighborhood. The PSN program brings all levels of law enforcement and communities together, as they serve to reduce violent crimes and make our neighborhoods safer for everyone,” said U.S. Attorney J. Douglas Overbey.
“ATF has a long history of strong partnerships in the law enforcement community,” said Acting Director Regina Lombardo. “Make no mistake, the women and men of ATF remain steadfast to our core mission of getting crime guns off of our streets. ATF and U.S. Attorneys nationwide will leverage these partnerships even further through enhanced community outreach initiatives and coordination with local, state, and tribal law enforcement and prosecutors to cut the pipeline of crime guns from those violent individuals who seek to terrorize our communities. Project Guardian will enhance ATF’s Crime Gun Intelligence, to include identifying, investigating and prosecuting those involved in the straw purchases of firearms, lying on federal firearms transaction forms, and those subject to the mental health prohibition of possessing firearms.”
Project Guardian’s implementation is based on five principles:
- Coordinated Prosecution. Federal prosecutors and law enforcement will coordinate with state, local, and tribal law enforcement and prosecutors to consider potential federal prosecution for new cases involving a defendant who: a) was arrested in possession of a firearm; b) is believed to have used a firearm in committing a crime of violence or drug trafficking crime prosecutable in federal court; or c) is suspected of actively committing violent crime(s) in the community on behalf of a criminal organization.
- Enforcing the Background Check System. United States Attorneys, in consultation with the Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in their district, will create new, or review existing, guidelines for intake and prosecution of federal cases involving false statements (including lie-and-try, lie-and-buy, and straw purchasers) made during the acquisition or attempted acquisition of firearms from Federal Firearms Licensees.
Particular emphasis is placed on individuals convicted of violent felonies or misdemeanor crimes of domestic violence, individuals subject to protective orders, and individuals who are fugitives where the underlying offense is a felony or misdemeanor crime of domestic violence; individuals suspected of involvement in criminal organizations or of providing firearms to criminal organizations; and individuals involved in repeat denials.
- Improved Information Sharing. On a regular basis, and as often as practicable given current technical limitations, ATF will provide to state law enforcement fusion centers a report listing individuals for whom the National Instant Criminal Background Check System (NICS) has issued denials, including the basis for the denial, so that state and local law enforcement can take appropriate steps under their laws.
- Coordinated Response to Mental Health Denials. Each United States Attorney will ensure that whenever there is federal case information regarding individuals who are prohibited from possessing a firearm under the mental health prohibition, such information continues to be entered timely and accurately into the United States Attorneys’ Offices’ case-management system for prompt submission to NICS. ATF should engage in additional outreach to state and local law enforcement on how to use this denial information to better assure public safety.
Additionally, United States Attorneys will consult with relevant district stakeholders to assess feasibility of adopting disruption of early engagement programs to address mental-health-prohibited individuals who attempt to acquire a firearm. United States Attorneys should consider, when appropriate, recommending court-ordered mental health treatment for any sentences issued to individuals prohibited based on mental health.
- Crime Gun Intelligence Coordination. Federal, state, local, and tribal prosecutors and law enforcement will work together to ensure effective use of the ATF’s Crime Gun Intelligence Centers (CGICs), and all related resources, to maximize the use of modern intelligence tools and technology. These tools can greatly enhance the speed and effectiveness in identifying trigger-pullers and finding their guns, but the success depends in large part on state, local, and tribal law enforcement partners sharing ballistic evidence and firearm recovery data with the ATF.
Federal law enforcement represents only about 15% of all law enforcement resources nationwide. Therefore, partnerships with state, local, and tribal law enforcement and the communities they serve are critical to addressing gun crime. The Department recognizes that sharing information with our state, local, and tribal law enforcement partners at every level will enhance public safety, and provide a greater depth of resources available to address gun crime on a national level.
For more information on Project Guardian, see the Attorney General’s memorandum at: https://www.justice.gov/ag/project-guardian-memo-2019/download
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- Coordinated Prosecution. Federal prosecutors and law enforcement will coordinate with state, local, and tribal law enforcement and prosecutors to consider potential federal prosecution for new cases involving a defendant who: a) was arrested in possession of a firearm; b) is believed to have used a firearm in committing a crime of violence or drug trafficking crime prosecutable in federal court; or c) is suspected of actively committing violent crime(s) in the community on behalf of a criminal organization.
Atlantic City Man Sentenced to 150 Months in Prison for Insurance Fraud, Drug DistributionRead the Press Release
CAMDEN, N.J. – An Atlantic City, New Jersey, man was sentenced today to 150 months in prison for selling over 200 grams of crystal methamphetamine and for staging a fake robbery of a Union County, New Jersey, pawnshop for the purpose of perpetrating an insurance fraud, U.S. Attorney Craig Carpenito announced.
Salvatore “Sam” Piccolo, 68, of Atlantic City, a member of the Philadelphia La Cosa Nostra organized crime family, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with distribution more than 50 grams of methamphetamine and one count of wire fraud. Judge Kugler imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Piccolo distributed quantities of crystal methamphetamine to FBI undercover agents on three separate occasions between June 2017 and September 2017. On one occasion, he sold the undercover agent approximately four ounces of crystal methamphetamine in a restaurant parking lot in Sicklerville, New Jersey, in exchange for a $5,660 cash payment. On two other occasions in September 2017, FBI undercover agents purchased two ounce quantities of crystal methamphetamine from Piccolo in Atlantic City for cash payments of $2,800 for each transaction.
Piccolo also admitted that on April 19, 2014, he and an accomplice conspired to commit an insurance fraud. They entered a pawn shop in Union County, purportedly to sell some silver items. Once inside the shop, the accomplice displayed a hand gun while Piccolo, wearing a nylon mask, chained the front doors closed to prevent anyone from entering. The owner was bound, as a pretense, while Piccolo and his accomplice looted the safe of what the owner told police was approximately $60,000 in cash, several pieces of jewelry, and a hand gun. The owner later submitted to his insurance company a fraudulent loss claim that was paid for approximately $174,000.
In addition to the prison term, Judge Kugler sentenced Piccolo to five years of supervised release and ordered him to pay $174,025 in restitution to Northland Insurance of Minnesota.
U.S. Attorney Carpenito credited special agents of FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Patrick C. Askin of the Criminal Division, Camden Office, and Senior Litigation Counsel V. Grady O’Malley of the U.S. Attorney's Office Organized Crime/Gangs Unit in Newark.
Defense counsel: Louis Barbone Esq., Atlantic City
Armed career criminal sentenced to 15 years in federal prisonRead the Press Release
ATLANTA – William Gerard Brown, a five-time convicted felon, has been sentenced for possession of a firearm by a convicted felon.
“Repeat offenders in possession of firearms pose grave risks to our community,” said U.S. Attorney Byung J. “BJay” Pak. “Brown has repeatedly ignored the law and will now have to face the consequences of his actions.”
“ATF considers the Atlanta Police Department a critical partner in its long-term mission of removing criminals from our communities,” said ATF Assistant Special Agent in Charge (ASAC) Beau Kolodka.
According to U.S. Attorney Pak, the charges and the record developed at trial: On April 28, 2017, Brown, a five-time convicted felon, was standing near a fence at a public park holding what appeared to be a marijuana joint in his hand. Atlanta Police Officers approached Brown and attempted to speak with him. In the middle of their conversation, Brown abruptly fled on foot through the park, passing several people, including children, in an attempt to run away from police.
As Brown ran into the wood line near the park, he pulled a firearm from his waistband and threw it. Moments later, the officers apprehended Brown. At that time he was in possession of approximately 25 grams of marijuana. Officers subsequently canvassed Brown’s flightpath and located the handgun Brown pulled from his waistband and threw on the ground during the foot chase.
U.S. District Judge Eleanor L. Ross sentenced William Gerard Brown, 36, of Atlanta, Georgia, to 15 years in federal prison, and five years of supervised release. On March 29, 2019, Brown was found guilty by a jury of possession of a firearm by a convicted felon.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Atlanta Police Department investigated this case, with assistance from the U.S. Postal Inspection Service.
Assistant U.S. Attorneys Jessica Morris and Noah Schechtman prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Alleged Kidnapper Sentenced to 18 Months for Making False Statements to Receive Federal BenefitsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ALLAN MANN, JR., also known as “Hailee Randolph DeSouza” and “Hailey R. DeSouza,” 67, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to 18 months of imprisonment for receiving federal benefits while living in the U.S. under an assumed name for approximately 30 years.
As alleged in court documents, Allan Mann, who is a Canadian citizen, abducted his 21-month-old son, Jermaine Allan Mann, on June 24, 1987, during a court-ordered visit in Toronto, Canada. Allan Mann and his son subsequently entered the U.S. Allan Mann changed his name to Hailee Randolph DeSouza, changed the name of his son, and acquired counterfeit birth certificates for him and his son. Allan Mann has never applied for nor received citizenship status in the U.S.
In June 1990, Mann, using the name Hailee Randolph DeSouza, applied for and received a Social Security Number. In support of this application, Mann presented his counterfeit birth certificate. In May 2018, Mann, using his alias, applied for a replacement Social Security card.
Mann also participated in the U.S. Department of Housing and Urban Development (“HUD”) Section 8 subsidized housing program at various times since 2004. Mann, who most recently resided in Section 8 subsidized housing in Vernon, Connecticut, made multiple false statements on HUD forms he signed in connection with his participation in the Section 8 program. HUD has paid approximately $126,744 in housing assistance payments on Mann’s behalf.
Mann also made multiple false statements on applications to participate in the State of Connecticut’s Medicaid program. Since January 2014, Medicaid has paid $52,970.19 in claims on behalf of Mann, and approximately $2,876.37 on behalf of his son.
Mann has been detained since his arrest on October 26, 2018. On August 22, 2019, he pleaded guilty to one count of making a false statement.
Judge Hall ordered Mann to pay restitution of $18,512.05 to the Medicaid program and $34,744 to HUD.
An immigration detainer has been issued, and Mann faces removal proceedings at the conclusion of his sentence. Canadian authorities have advised the U.S. government that Canada will seek to extradite Mann based on an outstanding warrant for abduction.
This matter was investigated by the U.S. Marshals Service, U.S. Department of Housing and Urban Development – Office of Inspector General, U.S. Department of Homeland Security – Homeland Security Investigations, U.S. Department of Health and Human Services –Office of the Inspector General, U.S. Department of State – Bureau of Diplomatic Security, Social Security Administration – Office of Inspector General, Toronto Police Service, Royal Canadian Mounted Police and the Vernon Police Department. The Missing Children Society of Canada and the National Center for Missing and Exploited Children have provided critical assistance to the investigation.
This case was prosecuted by Assistant U.S. Attorneys Sarah Karwan and Hal Chen.
Alleged Barrio Azteca Shooter Extradited from Mexico to U.S. to Face Charges Related to the U.S. Consulate Murders in Juarez, MexicoRead the Press Release
WASHINGTON – An alleged shooter and member of the Barrio Azteca (BA), a transnational border gang allied with the Juarez Cartel, was extradited from Mexico to the United States to face charges related to the March 2010 U.S. Consulate murders in Juarez, Mexico.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney John F. Bash for the Western District of Texas, Special Agent in Charge Luis Quesada of the FBI’s El Paso Field Office and Acting Administrator Uttam Dhillon of the U.S. Drug Enforcement Administration (DEA) made the announcement.
Jose Guadalupe Diaz Diaz, aka “Zorro,” arrived in the United States yesterday and made his initial appearance today before U.S. Magistrate Judge Anne T. Berton in El Paso, Texas. Diaz is charged in a 12-count third superseding indictment unsealed in March 2011. According to court documents and previous trial testimony, Diaz allegedly participated in BA activities, including narcotics trafficking and acts of violence by BA members in Mexico. On March 13, 2010, Diaz allegedly shot and killed U.S. Consulate employee Leslie Ann Enriquez Catton and her husband, Arthur Redelfs.
A total of 35 BA members and associates based in the U.S. and Mexico were charged in the third superseding indictment for allegedly committing various criminal acts, including racketeering, narcotics distribution and importation, extortion, money laundering, obstruction of justice and murder. Of the 35 defendants, 10 Mexican nationals, including Diaz, were charged in connection with the murders of Enriquez Catton and Redelfs, as well as Jorge Alberto Salcido Ceniceros, the husband of a U.S. Consulate employee. If convicted, Diaz faces a maximum penalty of life in prison.
Of the 35 defendants charged, 34 have been apprehended. U.S. and Mexican law enforcement are actively seeking to apprehend the lone fugitive in this case, Luis Mendez.
Twenty-eight of those defendants have pleaded guilty, one was convicted by a jury, one is currently pending trial, one defendant committed suicide while imprisoned during his trial and three others are pending extradition from Mexico.
According to court documents and information presented in court throughout this case, the Barrio Azteca is a violent street and prison gang that began in the late 1980s and expanded into a transnational criminal organization. In the 2000s, the BA formed an alliance in Mexico with “La Linea,” which is part of the Juarez Drug Cartel (also known as the Vincente Carrillo Fuentes Drug Cartel or “VCF”). The purpose of the BA-La Linea alliance was to battle the Chapo Guzman Cartel and its allies for control of the drug trafficking routes through Juarez and Chihuahua. The drug routes through Juarez, known as the Juarez Plaza, are important to drug trafficking organizations because they are a principal illicit drug trafficking conduit into the United States.
The gang has a militaristic command structure and includes captains, lieutenants, sergeants and soldiers – all with the purpose of maintaining power and enriching its members and associates through drug trafficking, money laundering, extortion, intimidation, violence, threats of violence and murder.
Diaz’s extradition is the result of close coordination between U.S. law enforcement and the government of Mexico in the investigation and prosecution of this case. The cooperation and assistance of the government of Mexico was essential to achieving the successful extradition.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Trial Attorney Christina Taylor of the Criminal Division’s Organized Crime and Gang Section, Trial Attorney Jay Alan Bauer of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney John Gibson of the Western District of Texas are prosecuting the case. The U.S. Attorney’s Office for the District of New Mexico and the Criminal Division’s Offices of International Affairs and Enforcement Operations provided significant assistance in this case.
The FBI’s Safe Streets Task Force located at the Texas Anti-Gang Center in El Paso, FBI Albuquerque Field Office (Las Cruces Resident Agency), DEA Juarez and DEA El Paso investigated the case. The Bureau of Alcohol, Tobacco, Firearms and Explosives; Immigration and Customs Enforcement; the U.S. Marshals Service; U.S. Customs and Border Protection; Federal Bureau of Prisons; U.S. Diplomatic Security Service; the Texas Department of Public Safety; the Texas Department of Criminal Justice; El Paso Police Department; El Paso County Sheriff’s Office; El Paso Independent School District Police Department; Texas Alcohol and Beverage Commission; New Mexico State Police; Dona Ana County, N.M., Sheriff’s Office; Las Cruces, N.M., Police Department; Southern New Mexico Correctional Facility and Otero County Prison Facility New Mexico provided special assistance.
Alleged Barrio Azteca Shooter Extradited from Mexico to United States to Face Charges Related to the U.S. Consulate Murders in Juarez, MexicoRead the Press Release
An alleged shooter and member of the Barrio Azteca (BA), a transnational border gang allied with the Juarez Cartel, was extradited from Mexico to the United States to face charges related to the March 2010 U.S. Consulate murders in Juarez, Mexico.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney John F. Bash for the Western District of Texas, Special Agent in Charge Luis Quesada of the FBI’s El Paso Field Office and Acting Administrator Uttam Dhillon of the U.S. Drug Enforcement Administration (DEA) made the announcement.
Jose Guadalupe Diaz Diaz, aka “Zorro,” arrived in the United States yesterday and made his initial appearance today before U.S. Magistrate Judge Anne T. Berton in El Paso, Texas. Diaz is charged in a 12-count third superseding indictment unsealed in March 2011. According to court documents and previous trial testimony, Diaz allegedly participated in BA activities, including narcotics trafficking and acts of violence by BA members in Mexico. On March 13, 2010, Diaz allegedly shot and killed U.S. Consulate employee Leslie Ann Enriquez Catton and her husband, Arthur Redelfs.
A total of 35 BA members and associates based in the U.S. and Mexico were charged in the third superseding indictment for allegedly committing various criminal acts, including racketeering, narcotics distribution and importation, extortion, money laundering, obstruction of justice and murder. Of the 35 defendants, 10 Mexican nationals, including Diaz, were charged in connection with the murders of Enriquez Catton and Redelfs, as well as Jorge Alberto Salcido Ceniceros, the husband of a U.S. Consulate employee. If convicted, Diaz faces a maximum penalty of life in prison.
Of the 35 defendants charged, 34 have been apprehended. U.S. and Mexican law enforcement are actively seeking to apprehend the lone fugitive in this case, Luis Mendez.
Twenty-eight of those defendants have pleaded guilty, one was convicted by a jury, one is currently pending trial, one defendant committed suicide while imprisoned during his trial and three others are pending extradition from Mexico.
According to court documents and information presented in court throughout this case, the Barrio Azteca is a violent street and prison gang that began in the late 1980s and expanded into a transnational criminal organization. In the 2000s, the BA formed an alliance in Mexico with “La Linea,” which is part of the Juarez Drug Cartel (also known as the Vincente Carrillo Fuentes Drug Cartel or “VCF”). The purpose of the BA-La Linea alliance was to battle the Chapo Guzman Cartel and its allies for control of the drug trafficking routes through Juarez and Chihuahua. The drug routes through Juarez, known as the Juarez Plaza, are important to drug trafficking organizations because they are a principal illicit drug trafficking conduit into the United States.
The gang has a militaristic command structure and includes captains, lieutenants, sergeants and soldiers – all with the purpose of maintaining power and enriching its members and associates through drug trafficking, money laundering, extortion, intimidation, violence, threats of violence and murder.
Diaz’s extradition is the result of close coordination between U.S. law enforcement and the government of Mexico in the investigation and prosecution of this case. The cooperation and assistance of the government of Mexico was essential to achieving the successful extradition.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Trial Attorney Christina Taylor of the Criminal Division’s Organized Crime and Gang Section, Trial Attorney Jay Alan Bauer of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney John Gibson of the Western District of Texas are prosecuting the case. The U.S. Attorney’s Office for the District of New Mexico and the Criminal Division’s Offices of International Affairs and Enforcement Operations provided significant assistance in this case.
The FBI’s Safe Streets Task Force located at the Texas Anti-Gang Center in El Paso, FBI Albuquerque Field Office (Las Cruces Resident Agency), DEA Juarez and DEA El Paso investigated the case. The Bureau of Alcohol, Tobacco, Firearms and Explosives; Immigration and Customs Enforcement; the U.S. Marshals Service; U.S. Customs and Border Protection; Federal Bureau of Prisons; U.S. Department of State's Diplomatic Security Service; the Texas Department of Public Safety; the Texas Department of Criminal Justice; El Paso Police Department; El Paso County Sheriff’s Office; El Paso Independent School District Police Department; Texas Alcohol and Beverage Commission; New Mexico State Police; Dona Ana County, N.M., Sheriff’s Office; Las Cruces, N.M., Police Department; Southern New Mexico Correctional Facility and Otero County Prison Facility New Mexico provided special assistance.