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7 November 2019
Honduran National Sentenced for Illegal Re-EntryRead the Press Release
NEW ORLEANS – U.S. Attorney Peter Strasser announced that LORENZO CRUZ NUNEZ-MENA (“MENA”), age 36, was sentenced on October 3, 2019 to time served today to a one-count indictment for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a). He was initially detained in May 2019 by authorities.
MENA, reentered the United States after he was previously deported on September 19, 2014. MENA faced a maximum term of imprisonment of two years, a fine of $250,000, a term of supervised release of one year, and a mandatory $100 special assessment.
U.S. Attorney Strasser praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U. S. Carter K. D. Guice, Jr. is in charge of the prosecution.
Honduran National Man Pleads Guilty and is Sentenced for Immigration CrimeRead the Press Release
CHARLESTON, W.Va. – A Honduran national man pled guilty to the felony offense of reentry of a removed alien, announced United States Attorney Mike Stuart. Edilberto Hernandez-Garcia, 43, was then immediately sentenced to “time served,” having spent approximately seven months previously incarcerated. He was immediately remanded to ICE to face administrative removal proceedings. Stuart commended the investigative efforts of the U.S. Immigration and Customs Enforcement (ICE), the Sophia Police Department, and the Raleigh County Office of the Prosecuting Attorney.
“Seven prior removals,” said United States Attorney Mike Stuart. “Hernandez-Garcia seems to think our immigration laws do not apply to him. Repeat offenders like Hernandez-Garcia are a drain on critical law enforcement resources.”
On April 26, 2019, Hernandez-Garcia was stopped by the Sophia Police Department where he was charged with and convicted of the felony offense of fleeing with reckless indifference in Raleigh County Circuit Court. Once arrested and incarcerated, ICE agents determined that Hernandez-Garcia was in the United States illegally. ICE agents confirmed his legal status. Hernandez-Garcia admitted to agents that he was in the United States illegally. Hernandez-Garcia was arrested and ICE agents matched his fingerprints to a number of previous removals from the United States. Hernandez-Garcia had no identification documents permitting him legal status in the United States.
Fingerprinting matched Hernandez-Garcia to seven prior removals from the United States in 1994, 1995, 2004, 2005, 2008, 2009, and 2010. His previous removals also included a prior 2010 conviction of illegal reentry into the United States from United States District Court in San Antonio, Texas. In all seven prior removals, Hernandez-Garcia was found by immigration judges to be in the United States illegally and he was subsequently deported to Honduras. He had not obtained permission to legally enter the United States and had not sought legal status or citizenship. Hernandez-Garcia further admitted to ICE agents that he was a Honduran citizen.
United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorney Erik S. Goes handled the prosecution.
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Holbrook Man Convicted of Heroin and Cocaine DistributionRead the Press Release
BOSTON – A Holbrook man was convicted yesterday in federal court in Boston of distribution of heroin and cocaine base.
Allah Mallory a/k/a “Parod,” 43, was convicted by a federal jury of distribution of heroin and cocaine base. U.S. District Court Judge Rya W. Zobel scheduled sentencing for Feb. 11, 2020.
On July 9, 2018, Mallory distributed heroin and cocaine base to an cooperating witness in Brockton. According to the court documents, this case was part of Operation Landshark, a federal investigation that targeted impact players and repeat offenders in Brockton and Boston, each who have prior convictions for acts of violence, firearm offenses and/or drug trafficking.
The charge of distribution of heroin and cocaine base provides for a sentence of up to 20 years in prison, at least three years and up to life supervised release, and a fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Plymouth County District Attorney Timothy J. Cruz; Suffolk County District Attorney Rachel Rollins; Boston Police Commissioner William Gross; and Brockton Police Chief John Crowley made the announcement today. The investigation was conducted by the FBI’s North Shore Gang Task Force and Southeastern Massachusetts Gang Task Force. Valuable assistance was provided by the Suffolk County Sheriff’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Plymouth and Essex County Sheriff’s Offices; Massachusetts Department of Corrections; U.S. Parole Commission; U.S. Postal Inspection Services; and the U.S. Secret Service.
Operation Landshark is 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.
Heroin Mixer and Stash House Operator Pleads GuiltyRead the Press Release
NEWPORT NEWS, Va. – A Hampton woman pleaded guilty yesterday to conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin and 40 grams or more of fentanyl.
According to court documents, Symphoni V. Wiggins, 38, mixed, prepared, and stored heroin and fentanyl in her home for a kilogram-weight drug distributor on the Peninsula from at least May until December 2018. Co-conspirators would pick up heroin and fentanyl at Wiggins’s house, then take that heroin and fentanyl and deal it to customers on the street, including other drug dealers. In communications with another co-conspirator, Wiggins boasted that she was “the master mixer.”
As part of her plea agreement, Wiggins also has agreed to a $159,000 forfeiture judgment.
Wiggins was charged by indictment along with 38 other defendants as part of Operation Cookout. The 106-count indictment alleges various offenses, including conspiracy to distribute and possess with intent to distribute cocaine, heroin, cocaine base, and fentanyl; conspiracy to launder money; felon in possession of a firearm; maintaining drug-involved premises; use of a communication facility in furtherance of drug trafficking; interstate travel in aid of racketeering enterprises; and illegal re-entry by a previously deported or removed alien.
The case was investigated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF) Operation Cookout. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. 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.
The High Intensity Drug Trafficking Areas (HIDTA) program, created by Congress with the Anti-Drug Abuse Act of 1988, provides assistance to federal, state, local, and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States. This grant program is administered by the Office of National Drug Control Policy (ONDCP). There are currently 28 HIDTAs, which include approximately 18 percent of all counties in the United States and 66 percent of the U.S. population.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Wiggins pleaded guilty to conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin and 40 grams or more of fentanyl. She faces a mandatory minimum sentence of five years and a maximum sentence of forty years in prison when sentenced on March 20, 2020. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Jim Stitzel, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk; Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; Colonel Gary T. Settle, Superintendent of Virginia State Police; Steve R. Drew, Chief of Newport News Police; and Terry L. Sult, Chief of Hampton Police Division, made the announcement after U.S. Magistrate Judge Douglas E. Miller accepted the plea. Special Assistant U.S. Attorney Amy E. Cross and Assistant U.S. Attorneys Peter G. Osyf and Kevin P. Hudson are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:19-cr-47.
Gregg County Man Convicted of East Texas Drug Trafficking CrimesRead the Press Release
TYLER, Texas – A 44-year-old Longview, Texas, man has been convicted of federal drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown and FBI Special Agent in Charge Matthew J. DeSarno of the Dallas Field Office today.
Correy James Rider was found guilty by a jury of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine and crack cocaine. The verdict was reached today following a two-day trial before U.S. District Judge Jeremy D. Kernodle.
According to information presented in court, Rider was indicted together with several co-defendants on charges related to the distribution of methamphetamine and crack cocaine in the Gregg County area. On different occasions, Rider sold methamphetamine to an informant in 2017 and possessed methamphetamine and crack cocaine with intent to distribute it from a Longview, Texas motel room in 2018.
“Federal law enforcement is active in East Texas,” said United States Attorney Brown. “We are working with our state and local partners to move against drug dealers, large and small. It does not pay in the long run for people to get involved in the drug trade.”
Under the federal statute, Rider faces from 10 years to life in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
The case was investigated by the Federal Bureau of Investigation, Gregg County Organized Drug Enforcement (CODE) Unit and the Texas Department of Public Safety and prosecuted by Assistant U.S. Attorneys Lucas Machicek and Ryan Locker.
Greene County Sheriff's Lieutenant Indicted for Stealing FBI MoneyRead the Press Release
LITTLE ROCK— A Greene County Sheriff’s Lieutenant has been charged with stealing government funds related to a ruse money seizure in Paragould.
Cody Hiland, U.S. Attorney for the Eastern District of Arkansas, announced today the return of an indictment charging Allen Scott Pillow, 55, of Paragould, with theft of government property, specifically $30,400 of FBI funds. A federal grand jury returned the indictment Wednesday night.
Pillow was arrested on a federal complaint on Tuesday, and was initially arraigned and then released by United States Magistrate Judge Patricia S. Harris on Wednesday. The case has been assigned to United States District Judge Billy Roy Wilson, who has set arraignment on the indictment for November 14, 2019 at 2 p.m.
According to the complaint, on Monday the FBI conducted a ruse narcotics investigation which led to the seizure of FBI funds by Pillow, who is in a leadership position within the narcotics unit of the Greene County Sheriff’s Office. As part of the ruse, agents left a backpack containing $76,000 in FBI funds in a vehicle left in a Lowe’s parking lot. Believing that he was assisting out-of-state police officers, Pillow arrived in the parking lot and seized the backpack. Pillow told the out-of-state officers that he located $45,600 in the backpack, and later Pillow checked $45,600 into evidence. According to the complaint, on Tuesday, while executing a search warrant, officers located money from the missing $30,400 in Pillow’s pants’ pocket, at which time Pillow was arrested.
The statutory penalty for theft of government property is not more than 10 years’ imprisonment, not more than a $250,000 fine, and not more than three years of supervised release.
The investigation was conducted by the FBI and the Arkansas State Police, and the case is being prosecuted by Assistant United States Attorney Erin O’Leary.
A complaint and indictment only contain allegations. A defendant is presumed innocent unless and until proven guilty.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
http://www.justice.gov/edar
Twitter:
@EDARNEWS
Great Falls man sentenced for meth traffickingRead the Press Release
GREAT FALLS—A Great Falls man who admitted distributing methamphetamine as part of heroin and meth trafficking ring in the community was sentenced today to 10 years in prison and five years of supervised release, U.S. Attorney Kurt Alme said.
David Owen Awberry, 31, pleaded guilty in June to possession with intent to distribute meth.
U.S. District Judge Brian M. Morris presided.
The prosecution said in court records that in September 2018, the Russell Country Drug Task Force and the Drug Enforcement Administration began investigating a meth and heroin distribution ring in Great Falls. Agents learned that Awberry redistributed meth and heroin for the group, which included co-defendants Anthony Beltran and Jacqueline Kirkaldie.
Beltran, who got a large quantity of meth and heroin from a source in California, used numerous individuals, including Awberry, to redistribute the drugs. In March 2019, detectives spoke to a person who said he got his meth from Awberry. In addition, detectives saw a photograph on Awberry’s Facebook account showing him holding a large amount of cash with the word “dope” at the bottom of the picture.
Detectives arrested Awberry in April and searched his home. Awberry admitted he sold drugs, including meth, but declined to identify his source. Detectives found thousands of dollars in cash in his home and confirmed the money was from drug sales.
Kirkaldie was convicted in the case and sentenced to more than 11 years in prison. Beltran has pleaded not guilty and is awaiting trial.
Assistant U.S. Attorney Jessica Betley prosecuted the case, which was investigated by the Russell Country Drug Task Force and the Drug Enforcement Administration.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Freddie Grant Resentenced to 10 Years in Prison on Federal Ammunition ChargeRead the Press Release
Columbia, South Carolina --- United States Attorney Sherri A. Lydon announced today that Freddie Grant, age 59, of Elgin, was resentenced to the statutory maximum penalty of 10 years in federal prison after his conviction for being a felon in possession of ammunition.
Grant was back before the federal district court for resentencing after a change in the law affected his earlier classification as an armed career criminal. Grant, who was convicted following a federal trial in January 2013, was originally deemed an armed career criminal subject to a statutory mandatory minimum sentence of 15 years. He was sentenced to 212 months in prison with 5 years of supervision to follow. That conviction and sentence were upheld in 2014 by the Fourth Circuit Court of Appeals.
In 2016, Grant filed a habeas petition challenging his armed career criminal status. He argued that, based on a change in law, his 1980 military kidnapping court-martial could not subject him to an enhanced federal sentence. The district court agreed based upon an August 2019 Fourth Circuit Court of Appeals decision and vacated Grant’s sentence. Grant no longer has the requisite three predicate convictions to be classified as an armed career criminal and is now subject to a statutory maximum sentence of 10 years.
Grant’s new advisory sentencing guidelines range was 27 to 33 months in prison. The Government moved for an upward variance from the guidelines range, noting that Grant’s extensive criminal history was underrepresented in the guidelines calculation, and asked the court to impose the statutory maximum 10 years in prison and 3 years of supervision to follow. Grant has prior convictions for assault by inflicting grievous bodily harm, resisting apprehension, assault upon an officer, kidnapping, possession with intent to distribute cocaine, possession of cocaine, carrying concealed weapon, resisting arrest, shoplifting, driving under suspension, and criminal domestic violence.
Senior United States District Judge Cameron M. Currie, of Columbia, granted the Government’s motion and sentenced Grant to 10 years’ imprisonment with 3 years of federal supervision to follow. There is no parole in the federal system.
Grant will be returned to the Federal Bureau of Prisons to serve the remainder of his 10-year federal sentence. After Grant completes his federal sentence, he will be transferred to a state facility to serve the remainder of his 30-year state sentence for the kidnapping and murder of 15-year-old Gabrielle Swainson. After that state sentence is completed, he will be on federal supervision for 3 years.
Evidence presented during the January 2013 federal trial established that on August 21, 2012, investigators with the Richland County Sheriffs Department executed a search warrant at Grant’s home in Elgin. During the search, investigators located a box of 12 gauge shotgun shells on a table in the living room area and a box of .38 caliber ammunition in a nightstand in a bedroom. Federal law prohibits Grant from possessing firearms and ammunition because of his prior felony convictions. Investigators seized the ammunition and notified the Federal Bureau of Investigation, which arrested Grant on the federal charge of being a felon in possession of ammunition.
During his original federal sentencing hearing in April 2013, the court found that Grant obstructed justice during his federal trial by suborning perjury by his then 27-year-old daughter Dominique Grant.
The case was investigated by Federal Bureau of Investigation and the Richland County Sheriff’s 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 Attorney Stacey D. Haynes of the Columbia office prosecuted the case.
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Four Philadelphia Men Charged in Connection with Nearly 50 Burglaries and Attempted Burglaries of Delaware Valley-Area PharmaciesRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that William Limper, 41, Raul Rivera, 42, Michael Dombrowski, 30, and Robert Hopkins, 24, all of Philadelphia, were charged by a Second Superseding Indictment for their roles in a conspiracy to burglarize or attempt to burglarize 49 pharmacies in the City of Philadelphia and the surrounding suburbs over the last five years. The charges include 36 counts of pharmacy burglary; 13 counts of attempted pharmacy burglary; one count each of possession with intent to distribute controlled substances; one count each of possession of a firearm in furtherance of a drug trafficking crime; and related conspiracy, drug and gun offenses.
The Second Superseding Indictment alleges that Limper, Rivera, Dombrowski, and Hopkins were involved in a conspiracy from November 2014 until April 2019 to burglarize pharmacies in order to steal controlled substances – primarily Schedule II opiates such as oxycodone and Percocet tablets – for the purpose of distributing them to others for profit. The defendants allegedly forced entry into the pharmacies at nighttime with burglary tools such as crow bars and Halligan bars (specialized forcible entry tools used by law enforcement and firefighters) when the pharmacies were closed. The defendants concealed their identities with clothing and masks over their faces, and used scanners to monitor police activity and two-way radios to communicate with each other during the burglaries.
As alleged, the defendants thoroughly planned and executed these burglaries in great detail. For example, in order to facilitate quick getaways in the event that they were detected by witnesses or law enforcement, the defendants used stolen Jeep Grand Cherokee SRT sport utility vehicles (SUV) with powerful engines. When they were not using the stolen vehicles to perpetrate burglaries, the defendants concealed the vehicles in garages in a commercial storage lot, where they also hid their tools and the clothing they wore during the burglaries to avoid detection by law enforcement. After each of the burglaries, the defendants divided the stolen narcotics among themselves for the purpose of selling them to others.
“These charges are a huge blow to this sophisticated burglary and drug distribution organization,” said U.S. Attorney McSwain. “As alleged, these defendants were able to carry out their conspiracy for years – terrorizing communities and small businesses all across the region, and adding to the scourge of the opioid epidemic for their own benefit. I want to thank the large group of law enforcement partners who worked together in a highly coordinated effort using targeted investigative techniques to make this case possible.”
“The FBI remains committed to fighting the opioid crisis on all fronts,” said Michael T. Harpster, special agent in charge of the Philadelphia Division. “Today's indictment makes it clear that the the FBI and or law enforcement partners will work tirelessly to prevent violent drug gangs from terrorizing our communities, and we will bring them to justice when they do.”
If convicted, defendant William Limper faces a maximum possible sentence of life imprisonment, a mandatory-minimum five years’ imprisonment consecutive to any other sentence imposed, a mandatory minimum six years’ supervised release up to lifetime supervised release, a $16,750,000 fine, and a $5,300 special assessment; defendant Raul Rivera faces a maximum 1,010 years’ imprisonment, a mandatory-minimum three years up to lifetime supervised release, a $14,250,000 fine, and a $5,100 special assessment; defendant Michael Dombrowski faces a maximum 310 years’ imprisonment, a mandatory-minimum three years up to lifetime supervised release, a $5,500,000 fine, and a $1,600 special assessment; and defendant Robert Hopkins faces a maximum 470 years’ imprisonment, a mandatory-minimum three years up to lifetime supervised release, a $7,500,000 fine, and a $2,400 special assessment.
The case was investigated by the Federal Bureau of Investigation, the Philadelphia Police Department, the Bristol Township Police Department, the Upper Southampton Police Department, the Chester Police Department, the Lower Merion Police Department, the Upper Chichester Township Police Department, the Folcroft Police Department, the Sharon Hill Police Department, the Central Bucks Regional Police Department, the Hatboro Police Department, the Upper Darby Police Department, the Haverford Township Police Department, the Ridley Township Police Department, the Bristol Borough Police Department, the Lower Southampton Township Police Department, the Falls Township Police Department, the Springfield Township Police Department, the Marple Township Police Department, and the Warrington Township Police Department, and is being prosecuted by Assistant United States Attorney Thomas M. Zaleski.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Four Indicted for Marijuana CultivationRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a four-count indictment today charging four men with marijuana cultivation and firearms offenses in El Dorado County, U.S. Attorney McGregor W. Scott announced.
Christopher Garry Ross, 47, of Somerset; Juan Carlos Vasquez, 20, a Mexican national residing in Somerset; Ramiro Bravo Morales, 22, a Mexican national residing in Somerset; and Jorge Lamas, 25, of Yuba City, were charged with conspiring to cultivate marijuana, cultivation of marijuana, and discharge of a firearm during and in relation to a drug trafficking offense. In addition, Vasquez and Morales were each charged with being an illegal alien in possession of a firearm.
This case is the product of an investigation by the Drug Enforcement Administration, the Federal Bureau of Investigation, the U.S. Marshals Service, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the California Department of Justice. The El Dorado County Sheriff’s Office and the El Dorado County District Attorney’s Office have provided key assistance. Assistant U.S. Attorneys Michael M. Beckwith, Justin L. Lee, and Shea J. Kenny are prosecuting the case.
The statutory penalty for the marijuana counts is a five-year mandatory minimum prison sentence up to 40 years in prison with fines up to $5 million. The discharge of a firearm during a drug crime is a mandatory minimum of 10 years in prison up to life in prison and a fine of up to $250,000. The alien in possession of a firearm count is a maximum of 10 years in prison and a fine of up to $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Four Convicted Felons Receive Federal Prison Sentences This Week for Illegally Possessing Firearms and AmmunitionRead the Press Release
SHREVEPORT, MONROE, ALEXANDRIA, La. – United States Attorney David C. Joseph announced the resolution of several cases this week, all of which are separately noted, that were brought pursuant to the Project Safe Neighborhoods (PSN) Program, which is the centerpiece of the Department of Justice’s violent crime reduction efforts. Project Safe Neighborhoods 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.
Minden Felon Sentenced for Illegally Possessing 10 Firearms
SHREVEPORT - Alvia D. Martin, 62, of Minden, Louisiana, was sentenced November 6, 2019, by Chief U.S. District Judge S. Maurice Hicks Jr., to 24 months in prison followed by one year of supervised release for possession of a firearm by a convicted felon.
According to court documents, Webster Parish Sheriff’s deputies visited Martin’s home to investigate the whereabouts of an armed robbery suspect. His wife let them in, and while there, deputies observed a .22-caliber rifle in the corner of the living room. Deputies questioned Martin and he said there were more firearms in the bedroom. A search of the bedroom uncovered four revolvers, three pistols, an additional rifle, a shotgun and ammunition. In total, deputies found 10 firearms and approximately 1,500 rounds of ammunition. Martin is a felon who was convicted of two counts of possession of illegal drugs on July 11, 2014.
The ATF and Webster Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Jessica D. Cassidy prosecuted the case.
Rayville Man Sentenced for Federal Drug and Firearm Offenses
MONROE - Aaron Mitchell Adcock, 42, of Rayville, Louisiana, was sentenced November 6, 2019, by U.S. District Judge Terry A. Doughty, to two years in prison for possession with intent to distribute marijuana and five years in prison for possession of a firearm in furtherance of drug trafficking, to run consecutively. Judge Doughty also sentenced Adcock to three years of supervised release following his release from prison.
According to court documents, law enforcement agents received a complaint that Adcock was in possession of a large amount of drugs. Agents executed a search warrant at a house in Monroe on December 18, 2018, and found 139 pounds of marijuana, a pistol, three shotguns and 10 rifles. Most of the firearms were loaded and within close proximity to the marijuana. The drugs were recovered from various rooms within the residence and inside of more than 100 heat-sealed bags. They also recovered $701, a digital scale, documentation from a website that sells marijuana seeds, a suspected drug ledger, large amounts of 5.56-caliber ammunition, .223-caliber ammunition and a Louisiana driver’s license issued to Adcock. Agents also found a commercial lease agreement for property in Maine that identified Adcock as tenant, which stated that Adcock shall use the property for “subleasing to state licensed medical marijuana caregivers.”
The DEA and Monroe Metro Narcotics conducted the investigation. Assistant U.S. Attorneys Jessica D. Cassidy and Brandon B. Brown prosecuted the case.
Natchitoches Felon Sentenced for Illegal Possession of a Firearm
ALEXANDRIA – Dustin James Aguillard, 29, of Natchitoches, Louisiana, was sentenced November 6, 2019, by U.S. District Judge Dee D. Drell, to 47 months in prison followed by one year of supervised release, for possession of a firearm by a convicted felon.
According to court documents, on August 12, 2018, Glenmora police conducted a traffic stop on a vehicle driven by Aguillard. During the course of the traffic stop, Aguillard consented to a search of the vehicle and informed the officer that his sister’s firearm was underneath the passenger seat. The officer found a Taurus pistol and ammunition underneath the passenger seat. Aguillard is a convicted felon, having previously been convicted of simple burglary in November 2016, and knew that as a convicted felon he was prohibited from possessing the Taurus pistol and ammunition.
The ATF and Glenmora Police Department conducted the investigation. Assistant U.S. Attorney Jessica D. Cassidy prosecuted the case.
Alexandria Man Sentenced for Illegally Possessing Pistol and Firing it in Neighborhood
ALEXANDRIA - Kerrian Andre Elie, 30, of Alexandria, was sentenced November 6, 2019, by U.S. District Judge Dee D. Drell, to 92 months in prison followed by two years of supervised release, for possession of a firearm by a convicted felon.
According to court documents, officers with the Alexandria Police Department responded to a shots-fired call from Elie’s uncle on March 25, 2018, who told police that Elie had shot at him and his girlfriend. After arriving at the scene, officers found two 9 mm shell casings on the street in front of the residence and a black 9 mm H&K pistol, Model P30SK, under the house by the carport door. After further investigation, officers learned that Elie had been involved in an argument with a family member. The relative later returned and resumed the argument with Elie. During that time, Elie entered the home and returned with a firearm. As his family members were leaving, Elie threatened to shoot them and fired the gun into the air.
Elie is a felon who has multiple convictions for possession with intent to distribute controlled substances on February 2, 2011, and for simple burglary on October 14, 2011, and February 18, 2011.
The ATF and Alexandria Police Department conducted the investigation. Assistant U.S. Attorney Jamilla A. Bynog prosecuted the case.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of a firearm or ammunition.
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Former Postal Employee Indicted for Mail TheftRead the Press Release
ALBANY, NEW YORK – John R. Elbayeh, aka Jean Elbayeh, age 43, of Albany, was arraigned today on an indictment charging him with stealing iPhones and other valuable items from mailed packages.
The announcement was made by United States Attorney Grant C. Jaquith and Matthew Modafferi, Special Agent in Charge of the Northeast Area for the United States Postal Service (USPS), Office of the Inspector General (OIG).
Elbayeh worked as a lead mail processing clerk at the USPS Processing and Distribution Center in Albany, according to a criminal complaint also filed in the case. For approximately 2 years ending in December 2018, he stole valuable items from the mail, including iPhones, other phones, cash, coins, and jewelry, according to the complaint and indictment.
The charges in the indictment and complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Shortly after being interviewed by federal agents in December 2018, Elbayeh took a one-way flight to Beirut, Lebanon, and remained outside the United States until October 17, 2019. On that date, USPS-OIG Agents arrested him at Dulles International Airport, where Elbayeh had just arrived from a flight originating in Cairo, Egypt.
Elbayeh was arraigned today before United States Magistrate Judge Daniel J. Stewart, who ordered him detained pending trial.
If convicted, Elbayeh faces up to 5 years in prison. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the USPS Office of the Inspector General, with assistance from the United States Postal Inspection Service, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Former Genesis Convention Center Employee ChargedRead the Press Release
HAMMOND- Deborah Black, age 62, of Merrillville, Indiana, was charged by Information with one count of theft from a local government entity receiving federal funds, announced U.S. Attorney Kirsch.
According to the Information, between November 2016 and August 2017, Black was employed as the Executive Director of the Genesis Convention Center, a venue owned by the City of Gary, Indiana. The Information alleges that during this time, Black used her position to steal over $10,000 in cash from the Genesis Center.
The parties have entered into a plea agreement to resolve the criminal charge. Under this signed plea agreement, which has been filed with the court, if accepted by the court, Black would be required to pay $16,421.80 in restitution to the City of Gary.
U.S. Attorney Kirsch said, “My office will continue to aggressively prosecute instances of public corruption. Public officials are not above the law. I encourage anyone with information regarding official corruption to contact my office or the FBI”
The U.S. Attorney’s Office recently charged Victoria Wilson, Black’s coworker at the Genesis Center, with one count of theft from a local government entity for stealing money from the Genesis Center. Wilson entered a formal plea of guilty to her charge on September 17 and is awaiting sentencing. In her plea agreement, Wilson agreed to pay $12,727 in restitution to the City of Gary.
The United States Attorney’s Office emphasizes that an Information is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court. If convicted, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case was investigated by the Federal Bureau of Investigation, with the assistance of Indiana State Police and the Indiana State Board of Accounts. This case is being prosecuted by Assistant United States Attorney Abizer Zanzi.
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Florida Man and Woman Indicted for Trafficking Drugs Through Southeast TexasRead the Press Release
BEAUMONT, Texas – A Florida man and woman have been indicted for federal drug trafficking violations in the Eastern District of Texas announced U.S. Attorney Joseph D. Brown today.
Ryan Andrew Davis, 35, of Clearwater, Florida and Erica Ann Lang, 35, of St. Petersburg, Florida, were indicted by a federal grand jury on Nov. 6, 2019, and charged with conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute methamphetamine.
According to information provided in court, on Oct. 24, 2019, Davis and Lang were stopped for a traffic violation on Interstate Highway 10 East in Beaumont, Texas. A certified narcotics detection dog alerted on the car and a search was performed revealing approximately one kilogram of methamphetamine hidden in the trunk of the vehicle.
If convicted, Davis and Lang each face from 10 years to life in federal prison.
This case is being investigated by the Jefferson County Sheriff’s Office and the U.S. Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney John B. Ross.
It is important to note that a complaint, arrest, or indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
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BEAUMONT, Texas – A Florida man and woman have been indicted for federal drug trafficking violations in the Eastern District of Texas announced U.S. Attorney Joseph D. Brown today.
Ryan Andrew Davis, 35, of Clearwater, Florida and Erica Ann Lang, 35, of St. Petersburg, Florida, were indicted by a federal grand jury on Nov. 6, 2019, and charged with conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute methamphetamine.
According to information provided in court, on Oct. 24, 2019, Davis and Lang were stopped for a traffic violation on Interstate Highway 10 East in Beaumont, Texas. A certified narcotics detection dog alerted on the car and a search was performed revealing approximately one kilogram of methamphetamine hidden in the trunk of the vehicle.
If convicted, Davis and Lang each face from 10 years to life in federal prison.
This case is being investigated by the Jefferson County Sheriff’s Office and the U.S. Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney John B. Ross.
It is important to note that a complaint, arrest, or indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
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Florida Man Pleads Guilty in Scheme to Acquire Valuable Artworks Fraudulently Using Stolen IdentitiesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced that ANTONIO DIMARCO pled guilty in Manhattan federal court today to participating in a conspiracy to commit wire fraud, based on his attempt to fraudulently acquire millions of dollars’ worth of artworks from art galleries, auction houses, and private collectors from around the world. U.S. District Judge Valerie E. Caproni presided over the defendant’s guilty plea.
U.S. Attorney Geoffrey S. Berman said: “As he admitted in court today, Antonio DiMarco was a serial swindler, using stolen identities to access auctions, place winning bids on multimillion-dollar artworks, and defraud lenders and insurers into believing that he owned artworks he never actually acquired. Now the self-portrait DiMarco painted has been revealed to be a sham.”
FBI Assistant Director William F. Sweeney Jr. said: “Allegedly preying on an elderly woman, stealing her identity and using her financial information to commit a crime is simply despicable behavior. Mr. DiMarco is accused of trying to get money based on the value of artwork he didn’t own, and in his attempts he is alleged to have caused the victims in this investigation millions of dollars in losses. Whether it’s a scheme to steal a few dollars, or millions in precious works of art, criminals deserve to face justice and pay for their crimes.”
As alleged in the underlying Complaint, Indictment, public filings, and statements made in open court:
From at least as early as November 2017 through and including October 2018, DIMARCO and a co-conspirator attempted to acquire millions of dollars’ worth of artworks from around the world using a variety of methods, including through appropriating the identity and financial information of a particular victim, and creating and presenting a multitude of fraudulent documents.
For example, in November 2017, DIMARCO attempted to purchase artworks by Mark Rothko and Ad Reinhardt at an auction house located in New York, New York. DIMARCO obtained access to the auction through the use of an elderly victim’s identity documents, including her passport, and bank account information showing that the victim held liquid assets in excess of $7,000,000. DIMARCO and his co-conspirator further presented false information indicating that the victim had authorized DIMARCO to bid on her behalf, when in reality, the victim knew nothing about DIMARCO’s plan to purchase artworks in her name. DIMARCO won the auction, bidding close to $6,500,000 for the Rothko work, and $1,155,000 for the Reinhardt work. However, because DIMARCO in fact lacked funds to pay for the art, the auction house suffered a loss of close to $1,400,000.
Continuing throughout late 2017 through at least May 2018, DIMARCO and his co-conspirator attempted to purchase artworks from approximately 20 galleries and collectors throughout the world. Indeed, DIMARCO and his co-conspirator entered into completed sales agreements for more than 60 artworks totaling in excess of $150,000,000. Among other works, DIMARCO entered into a contract for a $16,500,000 Matisse painting. None of these works was ever paid for, yet to entice the galleries and collectors to continue to hold the artwork for DIMARCO and his co-conspirator, they provided strings of false excuses for non-payment. This caused galleries and collectors to suffer monetary losses.
Having failed to obtain valuable artworks that he had contracted to buy but never paid for, DIMARCO then began to seek out ways to monetize artworks that he had not acquired. DIMARCO created a series of false documents designed to deceive financiers and insurers into believing that in fact he owned the artworks. DIMARCO did this in hopes of obtaining funds based on the value of those artworks. DIMARCO was arrested in the course of executing this scheme, after having arranged a showing of high-value artwork he convinced others that he owned.
Through his plea today, DIMARCO further acknowledged two additional frauds conducted in the midst of the art scheme: a ploy to deprive a victim of hundreds of thousands of dollars through false representations concerning the purposes for providing the funds, and a scheme to purchase a high-end property in Manhattan using a fraudulently altered bank statement.
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DIMARCO, 43, of Florida, was arrested on December 6, 2018, by law enforcement authorities in Florida, and subsequently transferred to federal custody. DIMARCO pled guilty to one count of conspiring to commit wire fraud, which carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
DIMARCO is scheduled to be sentenced by Judge Caproni on February 7, 2020.
Mr. Berman praised the outstanding investigative work of the Federal Bureau of Investigation.
These cases are being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Noah Falk, Tara M. La Morte, and Abigail S. Kurland are in charge of the prosecution.
Filipino National Indicted for Aggravated Sexual Abuse on Board a Cruise Ship Bound for the USVIRead the Press Release
St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert for the District of the Virgin Islands announced today the return of an indictment charging a Filipino national, Louis Isom Mangampat, with aggravated sexual abuse. Mangampat was arraigned in federal court today in St. Thomas.
According to the indictment, Mangampat sexually assaulted a woman while on board a cruise ship bound for the Virgin Islands.
The case is being investigated by the FBI and the Virgin Islands Police Department. It is being prosecuted by Assistant United States Attorney Jennifer Blecher.
An indictment is merely a formal charging document, and it is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty beyond a reasonable doubt in a court of law.
Fernandina Beach Woman Charged with FEMA Fraud Involving Hurricane IrmaRead the Press Release
Jacksonville, Florida – A federal grand jury has returned an indictment charging Jessica Ann Smothers (35, Fernandina Beach) with disaster assistance fraud involving Hurricane Irma. If convicted, Smothers faces a maximum penalty of 30 years in federal prison, plus payment of restitution to the United States. Smothers was arrested on November 4, 2019. She has been detained pending her January 6, 2020 trial.
According to the indictment, Smothers made a fraudulent application for assistance from FEMA’s Individuals and Households Program from Hurricane Irma, in which she falsely represented that she was in need of rental assistance due to storm damage to her primary residence.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Department of Homeland Security - Office of Inspector General and Homeland Security Investigations, with assistance from the Fernandina Beach Police Department. It will be prosecuted by Assistant United States Attorney Kevin C. Frein.
Felon with Ammunition Sentenced to 108 Month ImprisonmentRead the Press Release
GREENSBORO, N.C. - A Lee County resident was sentenced today in federal court in Greensboro for knowingly possessing ammunition after previously being convicted of a felony, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina.
JAMAR LACOBLY ALSTON, age 33, of Sanford, North Carolina, was sentenced to a 108 month term of imprisonment by Senior United States District Judge N. Carlton Tilley, Jr. In addition to prison time, ALSTON was ordered to serve three years of supervised release and to pay a special assessment of $100.00. ALSTON pleaded guilty on August 1, 2019, to knowing possession of CBC and Winchester .45 caliber ammunition after having previously been convicted of a felony offense punishable by imprisonment for more than one year.
Court records show that at approximately 1:48 a.m. on January 1, 2018, ALSTON fired three shots from a .45 caliber handgun during an altercation at the Elks Lodge in Sanford, North Carolina. The handgun was never recovered. However, a high-resolution surveillance video of the incident shows ALSTON instigated a fistfight with a person in the bar area, and during that altercation, grab an object from the right-side pocket of his coat. Moments later, while ALSTON’s back was to the surveillance camera, he fired three shots toward the man with whom he was fighting. All three shots missed. The video shows three shell casings hit the ground. Sanford Police were called to the scene and recovered the shell casings, but not the handgun used in the incident.
At sentencing, after reviewing the surveillance video of the shooting, Judge Tilley applied a cross reference under the sentencing guidelines for attempted first-degree murder and sentenced ALSTON to 108 months.
ALSTON has a 2010 conviction in Lee County for felony conspiracy to commit assault with a deadly weapon causing serious injury, which resulted in a term of imprisonment of 15 to 18 months.
The case was investigated by the Sanford Police Department and the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant United States Attorney Tanner L. Kroeger.
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Federal Jury Finds Charleston Man Guilty of Gun CrimeRead the Press Release
CHARLESTON, W.Va. – A federal jury convicted a Charleston man today after a two day trial, announced United States Attorney Mike Stuart. The jury found Michael Q. Cottrell, 23, guilty of being a felon in possession of firearms on August 25, 2018.
“Guilty as determined by a jury of twelve of his peers,” said United States Attorney Mike Stuart. “Federal law is clear -- Cottrell’s prior felony conviction prohibits him from possessing guns. It is really pretty simple. If you are prohibited from possessing firearms, don’t possess firearms. I want to thank the entire team of investigators and prosecutors that worked on this case.”
Cottrell was previously indicted for possessing two firearms, a revolver and a pistol, while being a person prohibited from possessing firearms due to a 2018 felony conviction in Roane County. At trial, evidence revealed that Cottrell possessed these firearms on the same night that he crashed a car on Garrison Avenue in Charleston and fled the scene.
Cottrell faces up to ten years in prison when sentenced on March 29, 2020.
The Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation.
Senior United States Judge David A. Faber presided over the trial. Assistant United States Attorneys Kristin F. Scott and Joshua C. Hanks handled the prosecution.
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Federal Jury Convicts Chicago Man of Robbing ATM Technician at GunpointRead the Press Release
CHICAGO — A federal jury has convicted a Chicago man of robbing an ATM technician at gunpoint in the city’s Little Village neighborhood.
On July 27, 2018, IVAN PARKER pointed a handgun to the technician’s head in the vestibule of a Chase Bank branch in the 3800 block of West 26th Street. The robbery occurred shortly before 7:00 a.m. as the technician was loading an ATM with cash. The technician tried to push away the gun and a struggle ensued. Parker used pepper spray on the technician before grabbing a bag containing $106,335 in cash and running from the scene. Parker was arrested the following month and has remained in custody since then.
Evidence at trial revealed that proceeds from the robbery were used to purchase a Buick sedan, jewelry, furniture, a television, and a PlayStation console.
The jury in federal court in Chicago on Wednesday convicted Parker of the single robbery count against him. The charge is punishable by up to 20 years in prison. U.S. District Judge Sara L. Ellis set sentencing for May 27, 2020.
The conviction was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI. The government is represented by Assistant U.S. Attorneys Tobara S. Richardson and Christine M. O’Neill.
Enough of this Nonsense: Restoring Respect for the Rule of Law with Prosecution that Serves Law-Abiding Citizens and Victims, Not CriminalsRead the Press Release
PHILADELPHIA – On October 15, 2019, United States Attorney William M. McSwain was invited to speak at the Quarterly Luncheon of the Executive Board of the Citizens’ Crime Commission of the Greater Delaware Valley. U.S. Attorney McSwain addressed the current state of criminal justice in Philadelphia, highlighting in particular the defense-oriented litigation tactics on display in several cases handled by the Philadelphia District Attorney’s Office during Larry Krasner’s tenure. Among the cases analyzed, U.S. Attorney McSwain dissected Krasner’s litigation maneuvers in the latest Mumia Abu-Jamal appeal and explained how Krasner is attempting to position the case to free the unrepentant cop killer.
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Thank you, John [Appledorn], for that introduction and for your work as President of the Citizens’ Crime Commission of the Delaware Valley. And thank you for inviting me to speak to this distinguished group of law enforcement and citizens who appreciate the sacrifices that those serving in law enforcement make every day. My heart feels good to be among a group such as this. It is an honor to be here and to support this group’s mission: to improve the quality of life of citizens in the Delaware Valley with ongoing outreach, community programs, and the latest safety and security initiatives. It is a worthy mission, and one that my Office shares.
As U.S. Attorney, I have the privilege of working with thousands of dedicated police officers, detectives, case agents, and prosecutors across the nine counties of the Eastern District of Pennsylvania. Working side-by-side with those who are willing to sacrifice for the greater good is one of the best things about my job. I felt that way when I was an Assistant U.S. Attorney earlier in my career, and it holds true today.
The brave men and women in law enforcement in the Eastern District of Pennsylvania serve and protect a broad swath of communities. Our District is comprised of large metropolitan cities, rural areas, and every type of community in between, and the issues that the police encounter in the District are as diverse as the communities they serve. But law enforcement officers are cut from the same cloth – they are honorable, courageous, selfless, and resilient. These values bind them together, serve as an inspiration to me, and provide a source of strength when the going gets tough.
Unfortunately for those brave men and women, times are tough for law enforcement these days – in Philadelphia and beyond. For one thing, police work is not getting any safer. Gun violence continues to plague the City; just this past weekend, there were six different reported shooting incidents. Two men were killed, and a total of 13 people were injured in the span of only two days. Through October 12, the number of homicide victims this year has reached 266, which is an increase over the number of victims during the same time frame last year, which was already a terrible year.
Times are also tough for law enforcement because their jobs are made all the more difficult by a culture of disrespect for law enforcement championed by the words and actions of Philadelphia District Attorney Larry Krasner, or as he refers to himself, the City’s “public defender with power.” Or perhaps we should refer to him as Uncle Larry, which is the nickname that the City’s violent criminals have affectionately bestowed upon him. Uncle Larry’s antics are especially dangerous because he is a prosecutor – and as such, he’s supposed to be on the side of law enforcement and community safety. He took an oath to uphold the rule of law, to protect public safety, and to represent victims and the people of this City in our criminal justice system. Instead, through the policies he has put in place and through his various courtroom maneuvers, he has done just the opposite. This reality often makes Krasner as dangerous as the criminals that he’s looking out for.
This conclusion – that Krasner’s policies endanger the public – is buttressed by the data collected and displayed on his “Public Data Dashboard,” a website Krasner announced a few weeks ago that tallies up information on key metrics that include the number of incidents, arrests, charges, case outcomes, and “years of future incarceration imposed.” The data from the dashboard serves as a scoreboard of sorts – one that collects wins for criminals and losses for the law-abiding public.
The dashboard touts some stunning statistics. To highlight just a few that compare this year to five years ago: (1) the DA’s Office has charged 26 percent fewer cases this year than through the same date in 2014; (2) it has charged 268 people for retail theft this year, down from 1,900 five years ago; (3) the conviction rate for homicides is down as compared to 2014; and (4) in a City full of gun violence, the number of illegal gun possession cases diverted into the Accelerated Rehabilitation Disposition program (which amounts to a free first offense) has skyrocketed – there were 10 in 2014 and 78 in 2018. None of this is good news for law enforcement, for the rule of law, or for the communities we serve.
The effect of Krasner’s policies and his culture of disrespect were on full display in front of a national audience this past August when Maurice Hill, a convicted felon with a long rap sheet, opened fire on Philadelphia police officers as they attempted to execute a search warrant. This confrontation left six officers wounded and a neighborhood traumatized. It is a miracle that the officers survived the attack and that the chaos ended with Maurice Hill in custody.
The Maurice Hill incident and these stunning statistics raise some obvious questions: Are criminals emboldened by Larry Krasner? And do some segments of the community take their cues from the District Attorney’s slander against law enforcement and then pile on with even more disrespect? The answers are: yes and yes. When the City’s top local prosecutor talks about the police as if they are the enemy, criminals take heart and the community takes note. And the rule of law takes a huge hit.
Which brings me to the message I want to deliver to you today – it’s reflected in the title of my remarks and it’s the same message that I’ve delivered to Larry Krasner and others who feed the culture of disrespect: Enough of this nonsense already. Since the day I was sworn in as U.S. Attorney, it has been my mission to restore a culture of respect for law enforcement and for the rule of law, to stop violent crime and to advocate for victims and the law-abiding members of our community. And the way to do that is to challenge those, like Krasner, who have a warped value system, to call out this nonsense, and to aggressively prosecute dangerous criminals in this City and in our District. This is what prosecutors are supposed to do, and it’s what I intend to do every minute of every day that I have this job.
Larry Krasner’s approach to prosecution elevates politics over public safety and puts police in danger. We’ve seen this, not only in his policies that discourage arrests, prosecution, and meaningful prison sentences for serious offenders, but also in the effect that his various litigation maneuvers have had on the integrity of the judicial system. In short, Krasner is hard at work trying to take decisionmaking power out of the hands of judges and juries and into his own – because judges and juries, unlike Krasner, cannot always be trusted to be cheerleaders for violent defendants.
For example, take the case of Jouvan Patterson, who shot Philadelphia shop owner Li (“Mike”) Poeng, with a military-style assault rifle during an attempted robbery of Mr. Poeng’s convenience store in May 2018. Mr. Poeng, a refugee from Cambodia, fought with Patterson on the sidewalk in front of his store, with his wife and children inside the store, terrified. Poeng is now confined to a wheelchair as a result of the shooting.
The DA’s Office originally charged Patterson with multiple crimes, including attempted murder and aggravated assault, but then quietly dropped the attempted murder charges and agreed to a ridiculously lenient plea deal of 3 1/2 to 10 years imprisonment. My Office stepped in once we learned of this miscarriage of justice and charged Patterson federally with one count of attempted robbery which interferes with interstate commerce and one federal firearms charge. On the gun charge alone, he faces a statutory maximum of life imprisonment and a statutory minimum of ten years’ imprisonment, which must run consecutively to any other sentence imposed on the attempted robbery count – with no parole. Mr. Patterson’s trial is scheduled for next year. And I can promise you this – at that court proceeding, the prosecutor from my Office will be acting like a prosecutor and not a public defender. The prosecutor will represent the interests of the public and the victim. There is no “Uncle Bill” waiting for Mr. Patterson in federal court.
And then there’s the case of Michael White, the man accused of stabbing and killing Philadelphia resident Sean Schellenger last summer. Krasner’s pretrial maneuvers – dropping first degree murder charges in favor of third degree, and then more recently his motion to dismiss even the third-degree murder charge against White – framed the factual issues in the defendant’s favor by limiting the jury’s options and paving the way for the defendant to put the victim’s character on trial. The pretrial motion Krasner submitted claimed that his office would fare better with a jury arguing voluntary manslaughter rather than third degree murder. But let’s face it: the only person who fares better with that maneuver is the defendant, Michael White.
Then of course, there’s Krasner’s newly expanded Conviction Integrity Unit, which to date, is responsible for reversing murder convictions of 10 defendants (or five percent of the cases it has reviewed) since Krasner came into office. That’s more than three times the number of convictions reversed in just over a year under Krasner than had been reversed in the previous four years since the unit was formed in 2014. In these cases, a pattern has emerged: Krasner shamelessly substitutes his own judgment for the jury’s, further victimizing the families.
In the latest of these 10 cases – that of Willie Veasy, a convicted murderer – Krasner’s office joined forces with Veasy’s lawyers and filed a joint motion seeking Veasy’s release, which the trial court granted earlier in October. This was a case with both a confession and an eyewitness that the jury had chosen to believe, after weighing the evidence in a court of law, including Veasy’s claimed alibi defense. But Uncle Larry, many, many years after the murder and the trial, decided that what the jury concluded after weighing the evidence didn’t matter; all that matters is what Krasner, the public defender with power, thinks. So he used that power and decided that the police detectives on the case had coerced the confession. Mind you, no court ever ruled that Veasy’s confession was coerced or that the detectives on the case acted improperly. That’s because the DA’s Office didn’t ask any court to do so; it conveniently skipped over the part of the process where the prosecutor seeks an evidentiary hearing during which it could test the defendant’s allegations of coercion. It did so in part because Krasner has had it out for the two detectives on the case for some time, but no court ever had to consider that bias. Equally troubling is the fact that in joining forces with the defendant’s lawyers, the DA’s office also conveniently discounted the eyewitness testimony – that was never recanted – pointing to Veasy as the shooter.
The result: Veasy is freed and Uncle Larry puts up a big number – 10 convicted murderers freed – on his new dashboard. Is this an “exoneration” of a convicted murderer? Is this a finding of innocence? Hardly. It is, instead, the ugly manifestation of Krasner’s hatred for law enforcement – and his affection for convicted murderers – that causes him to usurp the roles of the judge and jury and thereby make a mockery of our criminal justice system. In the aftermath, Mr. Veasy summed up the situation nicely: “Th[ings] are going to change with who we have in office today, and if we continue to keep people in office like him, things will definitely turn around for a lot of people.” Yes, Mr. Veasy, you have that exactly right.
And if Krasner has his way, things are only going to get worse. Which brings me to the never-ending, complicated Mumia Abu-Jamal saga. The District Attorney’s Office’s handling of this case since Krasner took office in 2018 has paved the way for what I believe is Krasner’s long-term play in this case – to become this unrepentant cop killer’s savior and add another tally to his dashboard by freeing yet another convicted murderer. Krasner’s response to a series of defense moves during the most recent phase of this litigation shows an alarming pattern – one showing Krasner’s office backing away, every chance it gets, from its obligation to fight to preserve the jury’s guilty verdict. Even though Krasner technically represents the Commonwealth – that is, the people of Pennsylvania and the victim’s family – his actions confirm that he does so in name only. Instead, he is using his power to side with Abu-Jamal and his lawyers rather than fight for those whom he is supposed to represent.
In the most recent chapter of this case, Abu-Jamal is now pursuing his fifth round of post-conviction review in the Superior Court of Pennsylvania. Broadly speaking, post-conviction review is the judicial process separate from the direct appeals process that gives defendants another avenue to raise legal challenges to their convictions. Convicted criminals first file Post Conviction Relief Act (“PCRA”) petitions at the trial court level – in the Pennsylvania system, that is the Court of Common Pleas sitting as a “PCRA court” – and then those petitions make their way through the normal appellate process. But let’s be clear: a convicted defendant is not entitled to file PCRA petitions in perpetuity; at some point, both state and federal law, duly enacted by the legislature, place clear limits on convicted criminals’ PCRA rights.
Those limits should have been applied in Abu-Jamal’s case, but they clearly were not. He received this fifth proverbial “bite at the apple” because a trial-court level judge – in fact, the same judge who sided with Krasner in the Veasy case – took up Abu-Jamal’s fifth PCRA petition and found in December 2018 that his four previous proceedings were tainted by the mere appearance of bias stemming from then-Justice Castille’s involvement in the case. The court reasoned that because Castille was the Philadelphia District Attorney when Abu-Jamal was convicted, that was enough to raise concerns about the fairness of the judicial process overall.
This PCRA court finding was a big win for this cop killer, as it allowed him to immediately file an appeal to the Superior Court in which he could relitigate multiple issues he previously raised unsuccessfully many years ago. And that is exactly what Abu-Jamal did when he filed an appeal to the Pennsylvania Superior Court in January 2019.
Fortunately for Abu-Jamal, Krasner has been more than willing to lay down in the course of the current Pennsylvania Superior Court appeal rather than fight to defend the jury’s finding of guilt. There’s not one, or two, but three instances to point to, in just this phase of the litigation alone, where Krasner decided to take a dive rather than oppose Abu-Jamal’s various litigation maneuvers.
The first example is seen in how the District Attorney’s Office handled Abu-Jamal’s request in the Superior Court for immediate transfer of his appeal to the Pennsylvania Supreme Court. On March 11, 2019, when the Superior Court asked the parties to show cause why the case should not be transferred, Abu-Jamal advocated to bypass the Superior Court altogether. Rather than opposing that procedure, the District Attorney’s Office stood by and decided not to object to it. Though there are instances (death penalty cases being one of them) when a direct appeal to the Pennsylvania Supreme Court is appropriate, this is no longer a death-penalty case, and Krasner knows that. So why not fight? This is the first move where Krasner’s approach – an utter refusal to engage on the issues – is on full display.
The second instance in the Superior Court involves how the District Attorney handled his office’s appeal of the ruling on Justice Castille’s previous involvement in the Abu-Jamal case. Initially, Krasner’s office appealed the PCRA court’s adverse ruling, but then Krasner’s office withdrew its appeal altogether. That left only Abu-Jamal’s appeal – again raising claims that have been previously raised and rejected – in place. The import of Krasner’s inaction is obvious: it clears the path for a future court to rule differently on one or more of these previously rejected claims. It does not matter than multiple courts have already ruled against Abu-Jamal. It does not matter that the law prohibits endless PCRA petitions and appeals. When advocating for murderous defendants, finality is not of any concern to this public defender with power.
Finally, on the very same day that Abu-Jamal filed his appellate brief in the Superior Court, raising all of those previously rejected claims, he filed a motion for remand based on a whole new theory of relief that he had conjured up. He now claimed there was new factual evidence, disclosed for the first time in January 2019, that raised serious questions about the integrity of his conviction. He further claimed that the new evidence should be reviewed and evaluated by the very same judge that had revived his appellate rights in the first place – the Court of Common Pleas judge that had granted Abu-Jamal’s PCRA petition in December 2018.
By now, you can probably guess what happened: the District Attorney’s Office chose again to take a dive and not oppose remand. From Abu-Jamal’s point of view, this is a far better result than having the Superior Court rule on his case or obtaining an immediate transfer to the Pennsylvania Supreme Court. The reason why is obvious: it sets the stage for the case to go back to the same friendly judge to decide whether this “new evidence” warrants a new trial. Abu-Jamal only has to convince one judge to rule in his favor rather than a panel of Superior Court judges or a majority of Justices sitting on the Pennsylvania Supreme Court. By not opposing remand, Krasner just increased Abu-Jamal’s chances of winning a new trial by knocking out two levels of appellate review and cutting multiple judges out of the deliberative process. All in a day’s work.
The Superior Court has not ruled on the remand issue, but it doesn’t have to because we can already see where this case is headed. Krasner’s pattern of behavior, his decision to take not one dive, not two, but three, in the Abu-Jamal Superior Court appeal alone, has the same feel as what happened in the Veasy case. It’s classic Krasner-style prosecution, which is marked by inaction rather than action; silence rather than opposition; defense-oriented tactics rather than prosecutorial zeal. It is yet another example of how Philadelphia’s public defender with power tries to use that power to manufacture his desired results with as little judicial oversight as possible. And here, what Krasner wants is to see Abu-Jamal walk out of prison.
As horrifying as that sounds, here is how it could happen. It’s not hard to predict how this plays out on remand once you look at Krasner’s shameful pattern of conduct in this and other recent cases. The first pathway to freeing Abu-Jamal is if, on remand, Krasner signals that the trial court judge should grant a new trial based on this newly discovered evidence and the judge obliges; Krasner’s office can then simply take another dive and not appeal that ruling. That is not an unlikely possibility when you consider his past maneuvers.
An alternative path to the same result is if the trial court judge denies Abu-Jamal’s request for a new trial on this newly discovered evidence, but then Krasner waits for the inevitable appeal and takes yet another dive in the Superior Court (it would not be the first time), which will mean procedurally that the Superior Court could remand the case for a retrial without objection from the District Attorney’s Office.
Either outcome would then pave the way for Krasner to conclude that a retrial, almost 40 years after the murder, is an impossible feat for his office to pull off – a conclusion that would be utterly indefensible when you consider how the District Attorney’s Office got there in the first place. And then out walks the cop-killer Abu-Jamal, a free man. Criminal justice, Krasner-style.
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So what are the takeaways from all of this? What can we do about the sorry state of criminal justice in Philadelphia? We can all stand up for those left behind as a result of Krasner’s upside-down approach to prosecution. We can all say “thank you” to our law enforcement community and encourage a culture of respect for law enforcement and for the rule of law. And as federal prosecutors, my Office will continue to serve as the adversaries against crime that the City deserves. In short, we can fight back with all our energy and resolve to do the right thing. That’s a choice that I’ve made, and I will never, ever back down from it. And neither will you. Let’s go forward together and do justice. Thank you, and God Bless you all.
Delhi Farmer Sentenced for Lying to Various Business and Government Entities to Steal Nearly $18 MillionRead the Press Release
MONROE, La. – A Delhi, Louisiana, farmer was sentenced today to 10 years in federal prison followed by three years of supervised release, for lying to more than seven financial institutions, insurance providers and government entities in an effort to obtain over $18 million illegally, announced United States Attorney David C. Joseph.
U.S. District Judge Terry A. Doughty also ordered Thomas A. Dickerson to pay $18,048,304.71 in restitution to the victims for the money he stole during the course of the scheme. Dickerson pled guilty on July 15, 2019.
According to court documents and information provided to the court, Dickerson was a Franklin Parish Louisiana farmer who, during the 2015 crop year, used at least 13 farming entities he was either a part of or was the sole owner of to certify farming acreage in Catahoula, Franklin, Tensas, Richland, Madison and Morehouse parishes in Louisiana, as well as Ashley, Chicot and Drew Counties in Arkansas. He applied for crop production and grain storage loans from AG Resource Management, farm operating loans from various FDIC insured banking entities, credit from seed and chemical dealers such as Greenpoint AG, LLC and Jimmy Sanders Seed, advances on contracts with Kennedy Rice Dryers, insurance policies and claims from Producers Agriculture Insurance Company and CGB Insurance Company, and several marketing assistance loans from the Commodity Credit Corporation. Dickerson lied on many of these applications in order to obtain loans and other compensation by overstating or understating the amount of crops produced or claiming crops as collateral when he’d already sold the crops or didn’t possess them.
“The sentence imposed today should serve as a warning to those who engage in fraudulent practices and schemes,” U.S. Attorney Joseph stated. “Mr. Dickerson’s conduct in this case caused significant financial loss to victims throughout northeast Louisiana. This type of behavior will not be tolerated in the Western District of Louisiana.”
The U.S. Department of Agriculture, Office of Inspector General, investigated the case. U.S. Attorney David C. Joseph and Assistant U.S. Attorney Tiffany E. Fields prosecuted the case.
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Dwyon Moore Sentenced to More Than 26 Years in Prison for Multiple Armed Robberies of Cleveland BusinessesRead the Press Release
Dwyon Moore was sentenced to 322 months in prison, followed by five years of supervised release, for the armed robberies of five separate businesses in Cleveland, Ohio.
“This defendant robbed five area businesses, including four in the span of only six hours, while pointing his gun at employees, patrons and a mother with her young child,” said United States Attorney Justin Herdman. “This sentence of more than 26 years is an important message to our community that those who terrorize our neighbors will be held accountable. We are grateful for the quick action of law enforcement, especially the Cleveland Division of Police officers who apprehended the defendant before he could commit yet another armed robbery that night.”
“Small businesses like restaurants and commercial shops are the backbone of a community, and they deserve to operate without a fear of violence,” said Jonathan McPherson, Special Agent in Charge of ATF’s Columbus Field Division. “ATF is proud to have such strong collaborative relationships with our partners at the Cleveland Division of Police, the Cuyahoga County Prosecutor’s Office Crime Strategy Unit, the FBI, and the United States Attorney’s Office. Through all of us working together, we were able to identify and prosecute this individual and remove a violent person from our community.”
According to evidence presented at sentencing, on December 12, 2018, Dwyon Moore (50), of Cleveland, OH, began his crime spree at Wonton Gourmet on Payne Avenue when he used a firearm to rob the restaurant. Moore approached the counter wearing a dark hooded sweatshirt pulled tightly around his face and pointed a firearm at employees and customers, ordering them to the ground. After stealing approximately $1,000 from the register, Moore fled on foot.
Continuing on December 14, 2018, at approximately 5:45 PM, Moore used a firearm to rob D.O. Summers Cleaners and Laundry on Carnegie Avenue. Wearing a dark hooded sweatshirt pulled tightly around his face, Moore pointed a gun at an employee and said “Don’t try to be a hero, ill be back, give me the money.” Moore then stole from the register, stole a coat from the dry cleaner, and fled on foot.
Within 45 minutes of the D.O. Summers robbery, Moore robbed Dark and Lovely Hair and Beauty on Cedar Avenue. Moore, again wearing a dark hooded sweatshirt pulled tightly around his face, pointed a firearm at customers, including a small child and his mother while ordering them to the ground, and demanded money from the register. Moore stole approximately $21 from a customer and approximately $100 from the register, then fled on foot.
Shortly after the Dark and Lovely robbery, Moore then robbed Bo Loong restaurant on St. Clair Avenue. While pointing a firearm, Moore told an employee to come to the counter, and demanded for the employee to give him all the money on his person. The employee removed $100 from his pocket and handed the money to the defendant. The defendant instructed the employee to lie down, and the employee complied. Moore stated, “It’s not personal. It’s just business.” Moore stole $50 from another employee, $250 from other customers, and approximately $350 from the register, then fled on foot. Moore was wearing the same dark colored hooded sweatshirt as seen in all of the previous robberies.
Finally, again wearing a dark hooded sweatshirt pulled tightly around his face, Moore robbed the Good Times Café on East 55th Street. Using a firearm, Moore robbed multiple bar patrons, as well as the Good Times Café register, then fled on foot. Patrons flagged down Cleveland Police Patrol Officers who quickly apprehended Moore nearby. Moore attempted to flee and resisted while officers attempted to handcuff him. CPD officers recovered a large amount of cash, items stolen during the various robberies, drug paraphernalia, and a loaded .38 caliber revolver. Moore was wearing the same clothing visible on surveillance from the prior four robberies. All told, Moore robbed four (4) separate businesses in the span of six (6) hours on December 14, 2018, in addition to the robbery he committed on December 12, 2018.
This case is part of Project Safe Neighborhoods, 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. PSN was reinvigorated in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime
This case was investigated by the Cleveland Division of Police, The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, and the Cuyahoga County Prosecutors Office’s Crime Strategies Unit. It was prosecuted by Assistant U.S. Attorney John C. Hanley.
Crime Stoppers tip leads to heavy federal sentence for armed robberRead the Press Release
HOUSTON – A Houston man has been ordered to prison following his conviction related to his theft of guns from two local pawn shops during armed robberies, announced U.S. Attorney Ryan K. Patrick.
Jacoby West, 27, pleaded guilty in February 2019.
Today, U.S. District Judge Sim Lake handed West a 168-month sentence for the robberies. He also received an additional 84 months for using a firearm during and in relation to a crime of violence which must be served consecutively to the other sentence imposed. The 21-year sentence will be immediately followed by five years of supervised release. West was also ordered to pay restitution for the cash he stole and unrecovered firearms in addition to victims’ counseling expenses.
At the hearing today, the court heard West had recruited juvenile co-conspirators and organized the robberies which involved the carjacking of a truck to use as a getaway vehicle. The court also considered victim impact statements as well as dog bite injuries a Pearland Police Department (PPD) officer had sustained as he pursued West’s co-conspirators. The officer required 48 stitches.
A Crime Stoppers tip led to West’s arrest for his involvement in the Dec. 22, 2016, armed robbery of Cash America Pawn #66 on South Wilcrest Drive in Houston and June 26, 2017, robbery of Money Mart Pawn & Jewelry on Broadway Street in Pearland.
West and others stole a total of 40 firearms in the two robberies as well as a significant amount of cash. T0 date, authorities have recovered 25 of those weapons.
West has been and will remain in custody.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, Pearland Police Department and Houston Police Department conducted the investigation. Assistant U.S. Attorney Carrie Wirsing prosecuted the case which was brought as part of the Department of Justice’s Project Safe Neighborhoods (PSN), a nationwide program to reduce gun and gang crime in America and the Houston Law Enforcement Violent Crime Initiative which seeks to proactively fight violent crime across the Greater Houston area.
Compound Ingredient Supplier Fagron Holding USA LLC to Pay $22.05 Million to Resolve Allegations of False and Inflated Average Wholesale Prices for Ingredients Used in Compounded PrescriptionsRead the Press Release
The Department of Justice announced today that Fagron Holding USA LLC (Fagron) has agreed to pay $22.05 million to resolve allegations concerning the establishment of false and inflated Average Wholesale Prices (AWPs) by its wholly owned subsidiary Freedom Pharmaceuticals Inc. (Freedom) for active pharmaceutical ingredients used in compound prescriptions. Freedom’s pricing scheme caused pharmacies that purchased Freedom’s compound ingredients to submit false prescription claims to the Defense Health Agency, which administers the TRICARE Program for the Department of Defense and the Department of Labor’s Office of Workers Compensation Programs (federal healthcare programs).
“We will not allow the systematic abuse of federal healthcare programs through pricing schemes designed to enrich a few at the expense of federal taxpayers,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “Our commitment to protect these programs extends not only to the pursuit of those that submit fraudulent claims but also those who cause others to submit such claims.”
Compounding pharmacies purchase ingredients or chemicals from ingredient suppliers such as Freedom to prepare and fill compound prescriptions for patients who require a specially made prescription that is not generally available in the marketplace. Freedom knew that compound prescription reimbursement under these federal programs was based in part on the AWPs it reported to various price listing agencies for its ingredients. Freedom knowingly inflated the AWPs for its ingredients in order to increase the reimbursement that its pharmacy customers received from federal healthcare programs for using Freedom’s ingredients. For example, Freedom established an AWP for the ingredient Fluticasone Propionate at $3,500 per gram even though it typically sold the Fluticasone Propionate for approximately $160 per gram.
Freedom promoted its high AWPs and the resulting profit potential from the reimbursement of compound prescriptions as an inducement to pharmacies to purchase its ingredients. Freedom’s fraudulent pricing scheme for its ingredients enabled its pharmacy customers to bill federal healthcare programs thousands of dollars per prescription for some compound formulations.
“We have no tolerance for the abuse of federal healthcare programs, especially where it impacts the healthcare program for our veterans and their families,” said U.S. Attorney John Bash of the Western District of Texas.
“Deception and avarice have no place in our healthcare system,” said U.S. Attorney Maria Chapa Lopez of the Middle District of Florida. “Taxpayers expect that the programs they fund be administered according to the law and utilized for the purposes that they were intended. We will continue to guard against abuse of healthcare programs to ensure that patients receive the care they deserve.”
The settlement also resolves allegations that Fagron’s wholly owned pharmacy subsidiary, Pharmacy Services Inc. (PSI) and its pharmacy affiliates, submitted fraudulent compound prescription claims to federal healthcare programs, used sham insurance programs to manipulate pricing, paid kickbacks to physicians for bogus consulting agreements, and illegally waived copays. It also addresses allegations against another Fagron subsidiary, B&B Pharmaceuticals Inc. (B&B), for setting an inflated AWP for Gabapentin.
The settlement resolves allegations contained in two separate actions filed against Freedom, PSI, and B&B under the whistleblower or qui tam provisions of the False Claims Act. Under the False Claims Act, private parties may sue on behalf of the government for false claims for government funds and to receive a share of any recovery. The whistleblowers will receive a combined total of $3,749,000 plus accrued interest from the proceeds of the settlement. The two lawsuits are captioned United States ex rel. Hueseman v. PSI et al., (WDTX) and United States ex rel. Sten v. Midwest Compounders, et al., (NDIA).
The case was handled by the Civil Division, Commercial Litigation Branch, the U.S. Attorney’s Offices for the Western District of Texas and the Middle District of Florida, with investigative support from the Defense Criminal Investigative Service, U.S. Postal Service, Department of Labor, and the U.S. Drug Enforcement Agency.
Compound Ingredient Supplier Fagron Holding USA LLC to Pay $22.05 Million to Resolve Allegations of False and Inflated Average Wholesale Prices for Ingredients Used in Compounded PrescriptionsRead the Press Release
The Department of Justice announced today that Fagron Holding USA LLC (Fagron) has agreed to pay $22.05 million to resolve allegations concerning the establishment of false and inflated Average Wholesale Prices (AWPs) by its wholly owned subsidiary Freedom Pharmaceuticals Inc. (Freedom) for active pharmaceutical ingredients used in compound prescriptions. Freedom’s pricing scheme caused pharmacies that purchased Freedom’s compound ingredients to submit false prescription claims to the Defense Health Agency, which administers the TRICARE Program for the Department of Defense and the Department of Labor’s Office of Workers Compensation Programs (federal healthcare programs).
“We will not allow the systematic abuse of federal healthcare programs through pricing schemes designed to enrich a few at the expense of federal taxpayers,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “Our commitment to protect these programs extends not only to the pursuit of those that submit fraudulent claims but also those who cause others to submit such claims.”
Compounding pharmacies purchase ingredients or chemicals from ingredient suppliers such as Freedom to prepare and fill compound prescriptions for patients who require a specially made prescription that is not generally available in the marketplace. Freedom knew that compound prescription reimbursement under these federal programs was based in part on the AWPs it reported to various price listing agencies for its ingredients. Freedom knowingly inflated the AWPs for its ingredients in order to increase the reimbursement that its pharmacy customers received from federal healthcare programs for using Freedom’s ingredients. For example, Freedom established an AWP for the ingredient Fluticasone Propionate at $3,500 per gram even though it typically sold the Fluticasone Propionate for approximately $160 per gram.
Freedom promoted its high AWPs and the resulting profit potential from the reimbursement of compound prescriptions as an inducement to pharmacies to purchase its ingredients. Freedom’s fraudulent pricing scheme for its ingredients enabled its pharmacy customers to bill federal healthcare programs thousands of dollars per prescription for some compound formulations.
“We have no tolerance for the abuse of federal healthcare programs, especially where it impacts the healthcare program for our veterans and their families,” said U.S. Attorney John Bash of the Western District of Texas.
“Deception and avarice have no place in our healthcare system,” said U.S. Attorney Maria Chapa Lopez of the Middle District of Florida. “Taxpayers expect that the programs they fund be administered according to the law and utilized for the purposes that they were intended. We will continue to guard against abuse of healthcare programs to ensure that patients receive the care they deserve.”
The settlement also resolves allegations that Fagron’s wholly owned pharmacy subsidiary, Pharmacy Services Inc. (PSI) and its pharmacy affiliates, submitted fraudulent compound prescription claims to federal healthcare programs, used sham insurance programs to manipulate pricing, paid kickbacks to physicians for bogus consulting agreements, and illegally waived copays. It also addresses allegations against another Fagron subsidiary, B&B Pharmaceuticals Inc. (B&B), for setting an inflated AWP for Gabapentin.
The settlement resolves allegations contained in two separate actions filed against Freedom, PSI, and B&B under the whistleblower or qui tam provisions of the False Claims Act. Under the False Claims Act, private parties may sue on behalf of the government for false claims for government funds and to receive a share of any recovery. The whistleblowers will receive a combined total of $3,749,000 plus accrued interest from the proceeds of the settlement. The two lawsuits are captioned United States ex rel. Hueseman v. PSI et al., (WDTX) and United States ex rel. Sten v. Midwest Compounders, et al., (NDIA).
The case was handled by the Civil Division, Commercial Litigation Branch, the U.S. Attorney’s Offices for the Western District of Texas and the Middle District of Florida, with investigative support from the Defense Criminal Investigative Service, U.S. Postal Service, Department of Labor, and the U.S. Drug Enforcement Agency.
Compound Ingredient Supplier Fagron Holding USA LLC to Pay $22.05 Million to Resolve Allegations of False and Inflated Average Wholesale Prices for Ingredients Used in Compounded PrescriptionsRead the Press Release
WASHINGTON – The Department of Justice announced today that Fagron Holding USA LLC (Fagron) has agreed to pay $22.05 million to resolve allegations concerning the establishment of false and inflated Average Wholesale Prices (AWPs) by its wholly owned subsidiary Freedom Pharmaceuticals Inc. (Freedom) for active pharmaceutical ingredients used in compound prescriptions. Freedom’s pricing scheme caused pharmacies that purchased Freedom’s compound ingredients to submit false prescription claims to the Defense Health Agency, which administers the TRICARE Program for the Department of Defense and the Department of Labor’s Office of Workers Compensation Programs (federal healthcare programs).
“We will not allow the systematic abuse of federal healthcare programs through pricing schemes designed to enrich a few at the expense of federal taxpayers,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “Our commitment to protect these programs extends not only to the pursuit of those that submit fraudulent claims but also those who cause others to submit such claims.”
Compounding pharmacies purchase ingredients or chemicals from ingredient suppliers such as Freedom to prepare and fill compound prescriptions for patients who require a specially made prescription that is not generally available in the marketplace. Freedom knew that compound prescription reimbursement under these federal programs was based in part on the AWPs it reported to various price listing agencies for its ingredients. Freedom knowingly inflated the AWPs for its ingredients in order to increase the reimbursement that its pharmacy customers received from federal healthcare programs for using Freedom’s ingredients. For example, Freedom established an AWP for the ingredient Fluticasone Propionate at $3,500 per gram even though it typically sold the Fluticasone Propionate for approximately $160 per gram.
Freedom promoted its high AWPs and the resulting profit potential from the reimbursement of compound prescriptions as an inducement to pharmacies to purchase its ingredients. Freedom’s fraudulent pricing scheme for its ingredients enabled its pharmacy customers to bill federal healthcare programs thousands of dollars per prescription for some compound formulations.
“We have no tolerance for the abuse of federal healthcare programs, especially where it impacts the healthcare program for our veterans and their families,” said U.S. Attorney John Bash of the Western District of Texas.
“Deception and avarice have no place in our healthcare system,” said U.S. Attorney Maria Chapa Lopez of the Middle District of Florida. “Taxpayers expect that the programs they fund be administered according to the law and utilized for the purposes that they were intended. We will continue to guard against abuse of healthcare programs to ensure that patients receive the care they deserve.”
The settlement also resolves allegations that Fagron’s wholly owned pharmacy subsidiary, Pharmacy Services Inc. (PSI) and its pharmacy affiliates, submitted fraudulent compound prescription claims to federal healthcare programs, used sham insurance programs to manipulate pricing, paid kickbacks to physicians for bogus consulting agreements, and illegally waived copays. It also addresses allegations against another Fagron subsidiary, B&B Pharmaceuticals Inc. (B&B), for setting an inflated AWP for Gabapentin.
The settlement resolves allegations contained in two separate actions filed against Freedom, PSI, and B&B under the whistleblower or qui tam provisions of the False Claims Act. Under the False Claims Act, private parties may sue on behalf of the government for false claims for government funds and to receive a share of any recovery. The whistleblowers will receive a combined total of $3,749,000 plus accrued interest from the proceeds of the settlement. The two lawsuits are captioned United States ex rel. Hueseman v. PSI et al., (WDTX) and United States ex rel. Sten v. Midwest Compounders, et al., (NDIA).
The case was handled by the Civil Division, Commercial Litigation Branch, the U.S. Attorney’s Offices for the Western District of Texas and the Middle District of Florida, with investigative support from the Defense Criminal Investigative Service, U.S. Postal Service, Department of Labor, and the U.S. Drug Enforcement Agency.
Columbia Man Pleads Guilty to Illegal Firearms Following Police Chase, CrashRead the Press Release
JEFFERSON CITY, Mo. – A Columbia, Missouri, man who was arrested after crashing his car in a high-speed chase pleaded guilty in federal court today to illegally possessing firearms.
James Earl Sanders Jr., 31, pleaded guilty before U.S. Magistrate Judge Willie J. Epps Jr. to two counts of being a felon in possession of a firearm.
Sanders was arrested on two separate occasions – once, while riding a stolen scooter, and again, following a pursuit by police officers that ended when he crashed into a tree. On both occasions, Sanders was illegally in possession of a firearm.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Sanders has two prior felony convictions for burglary and a prior felony conviction for attempted robbery.
Sanders was arrested on July 24, 2018, when a Columbia police officer saw him riding a Yamaha Zuma 50cc scooter that had been reported stolen. When Sanders pulled into a Steak and Shake restaurant, the officer contacted him and learned there was a warrant for his arrest. The officer grabbed Sanders’ wrist, but Sanders pulled away and ran. Sanders ran approximately 10 feet before the officer grabbed him by his shoulders and placed him on the ground. Another officer pointed his Taser at Sanders, who complied from that point and placed his hands behind his back.
Sanders had a loaded Taurus semi-automatic handgun in his front pocket at the time of his arrest. The handgun had been reported stolen. He also had what appeared to be 37 counterfeit $5 bills, all with the same serial number.
Sanders was arrested again on Sept. 30, 2018, when a Jefferson City, Missouri, police officer attempted to stop him for speeding. Rather than stopping when the officer activated his emergency lights, however, Sanders accelerated the Mercury Cougar he was driving. The Cougar reached a speed of approximately 67 miles per hour on Chestnut Street. Sanders attempted to turn east onto Fairmount Boulevard, but lost control of the car and struck a tree at the intersection of Chestnut Street and Fairmount Boulevard.
Sanders threw a loaded Smith & Wesson 9mm pistol out of the window as the officer approached. Sanders and a passenger were ordered to get out of the vehicle and Sanders was placed under arrest. Sanders had seven arrest warrants, including a federal arrest warrant for the indictment following the July 24, 2018, arrest.
Under federal statutes, Sanders is subject to a sentence of up to 10 years in federal prison without parole on each of the two convictions. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Columbia, Mo., Police Department, the Jefferson City, Mo., Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.Columbia Gang Member Sentenced to Four Years in Federal Prison on Gun ChargeRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Donald Benson, 30, of Columbia, was sentenced to 50 months in federal prison after pleading guilty to being a felon in possession of a firearm and ammunition.
Evidence presented to the court showed that on October 5, 2018, an officer with the Columbia Police Department, who knew Benson and knew he had a suspended driver’s license and outstanding warrants, approached Benson. Benson fled on foot as the officer attempted to make contact with him. During this flight, Benson tossed a loaded firearm from his jacket and continued to flee before the officer finally apprehended Benson. Evidence was also presented of Benson’s status as a validated gang member.
Federal law prohibits Benson from possessing firearms and ammunition because he has numerous state felony convictions, including attempted murder; assault and battery of a high and aggravated nature; unlawful carry of a pistol; and participating in a riot while in prison.
United States District J. Michelle Childs, of Columbia, sentenced Benson to 50 months in federal prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
This case was investigated by the Midlands Gang Task Force, a team of federal and local law enforcement agencies committed to identifying violent gang members. The Task Force agencies involved in this investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Columbia Police Department. The case 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 Attorney Alyssa Leigh Richardson of the Columbia office prosecuted the case.
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Chicago Man Sentenced to 15 Years in Federal Prison for Robbing Suburban Stores at GunpointRead the Press Release
CHICAGO — A federal judge today sentenced a Chicago man to 15 years in prison for robbing suburban retail stores at gunpoint.
REGINALD TAYLOR, 53, committed three armed robberies and one attempted armed robbery in the fall of 2012. Taylor terrorized store employees by brandishing a handgun and threatening to shoot them if they did not comply with his demands. In one of the heists, Taylor physically restrained store employees with their shoelaces. The robberies netted him more than $54,000 in cash and hundreds of cell phones.
Taylor was arrested in Oak Lawn on Nov. 7, 2012, after attempting to rob a RadioShack. He has remained in federal custody since then.
Taylor pleaded guilty earlier this year to robbery and firearm charges. U.S. District Judge Elaine E. Bucklo imposed the sentence in federal court in Chicago.
“Our office will continue to be vigilant in investigating and prosecuting armed robbers,” said John R. Lausch, Jr., United States Attorney for the Northern District of Illinois. “We will advocate for substantial prison sentences – like the 15-year sentence imposed in this case – in order to keep our communities safe.”
U.S. Attorney Lausch announced the sentence along with Timothy Jones, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives. Substantial assistance was provided by Police Departments in Elgin, Frankfort, Palos Heights, and Oak Lawn. The government is represented by Assistant U.S. Attorneys Jeannice W. Appenteng and Lindsay Jenkins.
Taylor admitted in a plea agreement that he committed three armed robberies:
Sept. 20, 2012: T-Mobile store, 200 block of South Randall Road, Elgin.
Nov. 1, 2012: RadioShack store, 21100 block of South LaGrange Road, Frankfort.
Nov. 7, 2012: RadioShack store, 11900 block of South Harlem Avenue, Palos Heights.
Taylor admitted in the plea agreement that he committed one attempted robbery:
Nov. 7, 2012: RadioShack store, 4800 block of West 95th Street, Oak Lawn.
Cedar Rapids Man Pleads Guilty to Possession with Intent to Distribute Heroin Laced with FentanylRead the Press Release
A man who intended to distribute nearly 60 grams of heroin laced with fentanyl pled guilty on November 4, 2019, in federal court in Cedar Rapids.
Lashon M. Jefferson, age 22, from Cedar Rapids, Iowa, was convicted of possession with intent to distribute a controlled substance containing heroin and fentanyl.
In a plea agreement, Jefferson admitted that on July 25, 2019, and again on July 30, 2019, he was arrested for operating a motor vehicle while intoxicated. On both occasions, Jefferson entered the Linn County Correctional Center in possession of heroin laced with fentanyl. On July 30, Jefferson possessed nearly 56 grams of the fentanyl-laced heroin. Jefferson admitted that he intended to distribute some or all of the drugs to another person.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Jefferson remains in custody of the United States Marshal pending sentencing. Jefferson faces a mandatory minimum sentence of 5 years’ imprisonment and a possible maximum sentence of 40 years’ imprisonment, a $5,000,000 fine, and at least 4 years of supervised release following any imprisonment.
The case is being prosecuted by Special Assistant United States Attorney Dillan Edwards and was investigated by the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; and the Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-91-LTS.
Follow us on Twitter @USAO_NDIA.
Carnegie Man Charged with Premeditated Murder in Indian CountryRead the Press Release
OKLAHOMA CITY – A federal grand jury has charged ISAIAH WHITEFOX REDBIRD, 34, of Carnegie, Oklahoma, with premeditated murder and assault with the intent to commit murder, announced U.S. Attorney Timothy J. Downing.
According to an indictment returned by a federal grand jury yesterday, Redbird deliberately killed a person by striking him on the head with a blunt force instrument on September 11, 2018, in Indian Country. He is charged in a separate count with assaulting a person identified as K.R. on the same day with the intent to commit murder.
An affidavit filed in federal court on November 28, 2018, alleges the Chief of the Carnegie Police Department discovered K.R. walking on a street in Carnegie on the morning of September 12, 2018, with severe head injuries. K.R. could not remember how she sustained her injuries. According to the affidavit, law enforcement discovered the body of K.R.’s boyfriend, Byron Tongeamah Jr., also known as "Subee," later that morning in the carport of an abandoned residence in which they had been sleeping. The abandoned residence is in Indian Country, and Tongeamah and K.R. are both Indians.
Two witnesses reported they had seen Redbird near the abandoned residence on the night of September 11. Further investigation by the Bureau of Indian Affairs and the Federal Bureau of Investigation led to a residence at which Redbird allegedly attempted to burn and then buried his clothing soon after Tongeamah’s death.
Redbird was arrested in Arizona on September 26, 2018, for an unrelated probation violation. He has been in federal custody since that time.
If found guilty of premeditated murder, Redbird faces a mandatory punishment of life in prison. If convicted of assault with intent to commit murder, he could be sentenced to up to twenty years in prison and up to five years of supervised release. He could also be fined up to $250,000 on each count.
This case is a result of an investigation by the Bureau of Indian Affairs, the Federal Bureau of Investigation—Oklahoma City Field Office, and the Carnegie Police Department. Assistant U.S. Attorneys Brandon Hale and Jason Harley are prosecuting the case.
The public is reminded that these charges are merely allegations and that the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. Reference is made to public filings for more information.
California man convicted for trafficking meth in Kalispell areaRead the Press Release
MISSOULA – A jury on Wednesday convicted a California man on methamphetamine trafficking crimes after he was accused of bringing the drug to the Kalispell area for distribution, U.S. Attorney Kurt Alme said.
The jury found Jeremy David Medbery, 34, of Riverside, CA, guilty of possession with intent to distribute meth and distribution of meth. Medbery faces a minimum mandatory five years to 40 years in prison, a $5 million fine and at least four years of supervised release.
The three-day trial began on Monday.
Chief U.S. District Judge Dana Christensen presided and set sentencing for Feb. 20, 2020. Medbery was detained.
“Mr. Medbery pushed this highly-addictive drug in our community for distribution. Drug traffickers will be prosecuted to the full extent of the law. I want to thank Assistant U.S. Attorney Tom Bartleson and the prosecution team, along with the Montana Division of Criminal Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Homeland Security Investigations, for their work on this case,” U.S. Attorney Alme said.
The prosecution presented evidence at trial that in January 2016, law enforcement agents in the Kalispell area began getting tips about two men, Medbery and co-defendant Christopher George Nomura, who had arrived from California to distribute meth. A confidential informant told agents that Medbery had stayed in a Lakeside home and had showed the informant a container with meth.
In February 2016, the informant made a controlled purchase of meth from Medbery at a casino in Kalispell. Medbery was under surveillance before the deal. After the transaction, police officers followed Medbery, made a traffic stop on Highway 93 and arrested Medbery. Agents executed search warrants on Medbery’s truck and residence. In the truck was a plastic bag with meth residue. A safe in the bedroom where Medbery was staying contained a plastic bag with meth and another bag with residue.
Medbery told officers that there was meth in a safe in the room where he stayed. He also admitted he drove from California with Nomura and brought meth for his personal use. Several days later, Nomura was arrested. Nomura told officers that he and Medbery drove up from California with about a pound of meth to distribute. Medbery stranded Nomura and gave him money to return to California. Nomura got more meth in California and returned to Montana. A pound of meth is the equivalent of about 3,624 doses. Nomura was convicted in the case and sentenced to 10 years in prison.
Assistant U.S. Attorney Tom Bartleson prosecuted the case, which was investigated by the Montana Division of Criminal Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Homeland Security Investigations.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Buffalo Man Indicted on Multiple Cocaine ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.—U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned an indictment charging Kasan Alkafi, 39, of Buffalo, NY, with conspiracy to distribute cocaine, possession with intent to distribute cocaine, maintaining a drug-involved premises, and possession with intent to distribute, and distribution of, cocaine. The charges carry a maximum penalty of 20 years in prison, and a $1,000,000 fine.
Assistant U.S. Attorney Justin G. Bish, who is handling the case, stated that according to the indictment, between July 2016 and November 3, 2017, the defendant conspired with others to sell cocaine in the Buffalo area. During the course of the conspiracy, Alkafi used 13 Minton and 592 Genesee Streets in Buffalo for drug trafficking purposes.
The defendant was arraigned before U.S. Magistrate Judge Michael J. Roemer and released on conditions.
The indictment is result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan; the Erie County Sheriff’s office, under the direction of Sheriff Timothy Howard; and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Buffalo Man Indicted for Selling Butyryl Fentanyl and Heroin That Caused the Deaths of Two PeopleRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.—U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned a nine-count superseding indictment charging Nino Buggs, a/k/a Rico, 23, of Buffalo, NY, with distributing butyryl fentanyl, U-47700, fentanyl, possession and distribution of heroin, possession with intent to distribute cocaine, and maintaining a drug-involved premises. Two of the counts specifically allege that the defendant distributed controlled substances which resulted in the death of another. These counts each carry a mandatory minimum penalty of 20 years in prison, a maximum of life, and a $20,000,000 fine.
Assistant U.S. Attorneys Charles J. Volkert, Jr. and Justin G. Bish, who are handling the case, stated that according to the superseding indictment, the defendant is accused of distributing butyryl fentanyl, U-47700, and fentanyl on March 21, 2017, which resulted in the death of an individual identified as M.B. In addition, Buggs is also accused of distributing heroin on August 21, 2017, which resulted in the death of an individual identified as H.W. The indictment alleges that defendant distributed butyryl fentanyl, U-47700, fentanyl, and heroin in the Western New York area on a regular basis in 2017 and that on four occasions he sold drugs to individuals working with the Drug Enforcement Administration and the New York State Police.
On August 24, 2017, the New York State Police and Buffalo Police Department executed a search warrant at the defendant’s apartment on Roesch Avenue in Buffalo. During the search, officers recovered nearly 40 grams of heroin, over 100 grams of cocaine, and several items of drug paraphernalia, including packaging, scales, multiple cell phones, and over $26,000 cash.
The defendant was arraigned before U.S. Magistrate Judge Jeremiah J. McCarthy and was released on conditions. A detention hearing is scheduled for November 12, 2019, before U.S. Magistrate Judge Jeremiah J. McCarthy.
The superseding indictment is result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan; the New York State Police, under the direction of Major Edward Kennedy; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the Tonawanda Police Department, under the direction of Chief James P. Stauffiger; and the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Bronx Man Sentenced to 30 Months in Prison for Theft of Government Property and Aggravated Identity TheftRead the Press Release
NEWARK, N.J. – A Bronx, New York, man was sentenced today to 30 months in prison for his role in a scheme to obtain and ultimately cash more than $1 million in fraudulent income tax refund checks issued by the United States, U.S. Attorney Craig Carpenito announced.
Wellington Feliz, 36, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to two counts of an indictment charging him with theft of government property and aggravated identity theft. Judge Arleo imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Stolen Identity Refund Fraud (SIRF) schemes generally share a number of hallmarks. Perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals, who often reside in the Commonwealth of Puerto Rico. They complete IRS-1040 tax return forms using the fraudulently obtained information and falsifying wages earned, taxes withheld and other data, always ensuring that fraudulent tax return generates a refund. The perpetrators then direct the U.S. Treasury Department to mail the refund checks to locations they control or can access. In some cases, they bribe mail carriers to remove the refund checks from their mail routes. With the fraudulently obtained refund checks in hand, the perpetrators generate cash proceeds by depositing the checks into bank accounts they control.
At his plea hearing, Feliz admitted that he knew that the approximately 180 tax refund checks that he and others deposited into bank accounts under his direct control did not belong to him or the company named on the bank account. He admitted to personally withdrawing funds from these accounts and profiting from his role in the scheme. He also admitted that he knew that the checks were issued by the IRS and the U.S. Treasury, and that it was illegal to deposit the tax refund checks and use the proceeds for his own benefit. Feliz admitted that he and his conspirators deposited over $1 million in fraudulently obtained income tax refund checks into bank accounts controlled by him.
Feliz was initially charged with six co-defendants (Luis Pena, Lourdes Ortiz, Raymundo Hernandez, Isaias Hernandez, and Gloria Rivera of the Bronx, New York; and Fausto Bernard of Newark) in a criminal complaint alleging conspiracy to commit theft of government funds, relating to a SIRF scheme that caused more than $2.6 million in losses to the United States government. Feliz and Isaias Hernandez were later charged by indictment with conspiracy to commit theft of government funds, theft of government funds, and aggravated identity theft. After being charged by complaint, Feliz violated the terms of his pretrial release conditions and fled to the Dominican Republic. In April 2019, Feliz was extradited to the District of New Jersey.
All six co-defendants have pleaded guilty to and have been sentenced for their roles in the scheme. One additional conspirator, Angel Fernandez of Newark, has also pleaded guilty to charges regarding his participation in the conspiracy. All have been ordered to pay restitution to victims and forfeiture to the United States.
In addition to the prison term, Judge Arleo sentenced Feliz to three years of supervised release.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur; special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt; special agents of the U.S. Postal Service – Office of the Inspector General, under the direction of Special Agent in Charge Matthew Modafferi; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Francesca Liquori and Sara F. Merin of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Laurie M. Fierro Esq., Kinnelon, New Jersey
Braddock Felon and SCO Gang Member Pleads Guilty to Drug Trafficking ChargesRead the Press Release
PITTSBURGH, PA – A resident of Braddock, Pennsylvania, pleaded guilty in federal court to charges of narcotics trafficking, United States Attorney Scott W. Brady announced today.
Jaymare Jackson, 29, pleaded guilty to two counts before Senior United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that the Greater Pittsburgh Safe Streets Task Force conducted a long-term investigation of drug trafficking occurring in and around the Braddock section of Pittsburgh. Jaymare Jackson, and other individuals, were identified as members of a neighborhood-based street gang, self-titled "SCO", which illegally distributed controlled substances in the Greater Pittsburgh region. In January of 2019, investigators obtained authorization to conduct a federal wire investigation, which continued through May of 2019. During that time period, intercepted communications confirmed that Mr. Jackson was conspiring with others to possess with intent to distribute and distribute controlled substances. The court accepted Jackson’s guilty plea to conspiracy to distribute 100 grams or more of heroin, a Schedule I controlled substance, and conspiracy to distribute a quantity of cocaine base, commonly known as crack, a Schedule II controlled substance, between August 2018 and May 2019.
The Court was also advised that on June 12, 2019, Jackson illegally possessed two firearms as well as items used to package and distribute controlled substances. Jackson acknowledged that he knew, at that time, that he could not possess the firearms after having been previously convicted of carrying a firearm without a license. Federal law prohibits anyone who has previously been convicted of a crime punishable by a term of imprisonment exceeding one year, to possess a firearm or ammunition.
Judge Schwab scheduled sentencing for April 1, 2020 at 10:00 AM. The law provides for a maximum sentence of not less than five and not more than 40 years in prison, a fine of not more than $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Drug Enforcement Administration, Bureau of Alcohol Tobacco Firearms and Explosives, United States Marshals Fugitive Task Force, Allegheny County Sheriff’s Office, Allegheny County Police Department, Pennsylvania State Police, Pennsylvania Attorney General’s Office Bureau of Narcotics, and the Pittsburgh Bureau of Police. Other assisting agencies include the Monroeville Police Department, Penn Hills Police Department, Wilkinsburg Police Department, and Allegheny County Adult Probation.
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.
Boston-Area Restaurant Owner Sentenced for Tax FraudRead the Press Release
BOSTON – A former owner of restaurants in Boston and Chelsea was sentenced today in federal court in Boston for tax fraud convictions.
Burhan Ud Din, 50, of Watertown, was sentenced by U.S. Senior District Court Judge George A. O’Toole Jr. to three years of probation, 500 hours of community service and ordered to pay restitution in the amount of $140,372 in back taxes. In August 2019, Din was convicted by a federal jury of six counts of willful failure to collect and pay over tax.
From 2009 to 2013, Din defrauded the government and avoided paying payroll taxes owed by fried chicken restaurants located in Chelsea, downtown Boston and Jamaica Plain.
Federal law requires employers to withhold payroll taxes and pay the IRS. To avoid paying taxes, repeatedly, Din falsely reported to the IRS the number of employees and wages paid. Din provided the tax preparer for the stores with false information about the restaurants’ payroll, causing the tax preparer to file false tax returns.
United States Andrew E. Lelling; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Jason Molina, Special Agent in Charge of Homeland Security Investigations in Boston; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Boston Police Commissioner William Gross made the announcement today. Assistant U.S. Attorney Scott L. Garland of Lelling’s Criminal Division prosecuted the case.
Billings man sentenced to more than 13 years for Dotty’s Casino armed robberyRead the Press Release
BILLINGS—A Billings man who admitted robbing Dotty’s Casino at gunpoint and demanded the attendant to empty the till was sentenced today to 13 years and six months in prison and five years of supervised release, U.S. Attorney Kurt Alme said.
Joshua Stanley Roberts, 37, pleaded guilty in February to robbery affecting commerce, possession of a firearm in furtherance of a crime of violence and felon in possession of a firearm.
U.S. District Judge Susan Watters presided.
The prosecution said in court records that Roberts robbed Dotty’s Casino in Billings on July 27, 2018 after he entered the business by following another individual who had been buzzed in. Once inside, Roberts pulled out a semi-automatic handgun, pointed it at the casino attendant and demanded the attendant empty the till. Roberts got $516 from the casino.
Later that day, Billings Police officers pulled over a car driven by Roberts’ ex-girlfriend. Roberts was in the back seat with a co-defendant. The officers located a 9mm semi-automatic pistol in the back seat. In November 2008, Roberts was convicted in U.S. District Court in Montana for being a felon in possession of a firearm.
Assistant U.S. Attorney Colin Rubich prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Billings Police Department.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Bellevue, Washington, lab and three executives indicted in kickback schemeRead the Press Release
Seattle – One defendant has pleaded guilty, and three others and a physician- owned testing lab have been indicted following the investigation of kickbacks in connection with laboratory testing services. The grand jury returned indictments on November 6, 2019, against JAE LEE, 48, of Bellevue, RICHARD REID, 50, of Astoria, Oregon, KEVIN PULS, 54, of Bellevue, and Northwest Physicians Laboratory of Bellevue, Washington. Both the company and the individual defendants are scheduled to make their first appearance in U.S. District Court in Seattle on December 5, 2019.
Northwest Physicians Laboratory (NWPL) and its relationship to Molecular Testing Labs (MTL) of Vancouver, Washington, are described in the plea agreement of STEVEN P. VERSCHOOR, 52, of Boise, Idaho, a co-founder of MTL. VERSCHOOR pleaded guilty on October 30, 2019, admitting that he paid kickbacks to NWPL for referring urine tests to be performed at MTL. According to the plea statements, starting in 2014, MTL agreed to pay NWPL as much as $100,000 per month to send patient urine tests to the Vancouver lab. NWPL is physician-owned, and for that reason could not test urine samples for patients covered by government health programs such as Medicare, Medicaid, and TRICARE. In order to conceal the payment of the kickbacks, MTL and NWPL described the fees as being for marketing services; however, VERSCHOOR was not aware of any marketing services being performed. In all, MTL paid NWPL $450,000. In exchange, MTL was able to bill the government more than $2,000,000 for urine testing services.
In December 2018, MTL agreed to pay $1,777,738 to settle allegations that it violated the False Claims Act by paying illegal kickbacks to obtain referrals for government healthcare insurance programs. According to the settlement, between August 2014 and July 2015, the government claimed that MTL made payments to local laboratories in exchange for referrals of Medicare and TRICARE program business, in violation of the Anti-Kickback Statute. Paying remuneration to medical providers or provider-owned laboratories in exchange for referrals encourages providers to order medically unnecessary services. The False Claims Act and the Anti-Kickback Statute function, in part, to discourage such behavior.
The indictment charges NWPL and the three executives with conspiracy to both solicit kickbacks and pay kickbacks. The indictment charges four additional counts of receipt of kickbacks.
Conspiracy to pay kickbacks involving federal healthcare programs is punishable by up to five years in prison. Receipt of kickbacks involving federal healthcare programs is punishable by up to 10 years in prison.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
VERSCHOOR is scheduled to be sentenced by U.S. District Judge James L. Robart on January 21, 2020. VERSCHOOR has agreed to pay $461,752 in restitution. Some of that amount may be paid by the MTL in its settlement with DOJ.
The case is being investigated by the FBI, Health and Human Services Office of Inspector General (HHS-OIG), and the Defense Criminal Investigative Service (DCIS).
The case is being prosecuted by Assistant United States Attorneys Brian Werner and Matthew Diggs.
nwpl_indictment.pdfBath County Woman Sentenced to 12 Months for Social Security FraudRead the Press Release
LEXINGTON, Ky. – A Bath County woman, Della Mae Barnett, 62, was sentenced in federal court Thursday, to 12 months in prison, for committing Social Security fraud.
Barnett pleaded guilty in July 2019, before United States District Judge Karen K. Caldwell. In Barnett’s plea agreement, she admitted that, from September 2006 to February 2016, she knowingly and willfully made false representations to the SSA, indicating that her husband did not live in the same household with her, to avoid his income making her ineligible to receive Supplemental Security Income benefits. Her husband was, in fact, a household member, and his income would have impacted her entitlement to SSI benefits.
Barnett fraudulently received $77,003.00 from the SSA. Barnett also admitted that her associated coverage, under the Kentucky Medicaid Program, was likewise fraudulent. The total amount of inappropriate benefits expended by Kentucky Medicaid was $157,684.78. As part of her sentence, the Court ordered Barnett to repay these amounts in restitution, totaling $234,687.78.
Under federal law, Barnett must serve, at a minimum, 85 percent of her prison sentence. She will then be under the supervision of the United States Probation Office for three years, after being released.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Wayne R. Warren, Resident Agent-in-Charge, SSA Office of the Inspector General, Nashville Office, jointly announced the sentence.
The investigation was directed by the SSA-OIG. The United States was represented by Special Assistant U.S. Attorney James T. Chapman.
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Baltimore Pimp Sentenced to 20 Years in Federal Prison After Being Convicted at Trial on Charges of Sex Trafficking of A Child and Using the Internet to Promote A Prostitution BusinessRead the Press Release
Baltimore, Maryland – U.S. District Judge Thomas E. Johnston today sentenced Ryan Russell Parks, a/k/a Dinero, age 26, of Baltimore, Maryland, to 240 months in federal prison, followed by five years of supervised release, for two counts of sex trafficking of a minor and one count of using the Internet to promote a business enterprise involving prostitution. A federal jury convicted Parks late on July 18, 2019, after a four-day trial. As a result of his conviction, upon his release from prison, Parks will be required to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
“Ryan Parks cruelly preyed on vulnerable girls in order to sell them for sex. Children cannot consent to have sex for money and the sex trafficking of children will not be tolerated in Maryland. Through the Maryland Human Trafficking Task Force, law enforcement is working with victim services providers and victim advocates to rescue human trafficking victims and prosecute traffickers,” said Maryland U.S. Attorney Robert K. Hur.
According to the evidence presented at his trial, Parks trafficked two vulnerable minor victims—a 16-year-old girl (Girl 1) and a 15-year-old girl (Girl 2)—for commercial sex. According to trial testimony, Parks met Girl 1 online. During their communications Parks learned that she was hungry and had no real place to live, and he offered Girl 1 a place to stay. Parks sent a car to pick up Girl 1 and to bring her to a motel in Woodlawn, Maryland, and within a day, he caused advertisements to be posted on a website that marketed commercial sex workers. These advertisements contained photographs and descriptions of Girl 1 and offered Girl 1 for commercial sex acts. Parks stayed with Girl 1 at a motel in Baltimore, along with another woman he was advertising on the Internet for commercial sex. He also had sex with Girl 1 in the motel room. Parks would leave the room for short periods of time, when men would come to the room to have sex with Girl 1, and he would return to the room shortly after the men left the room. Parks paid for additional advertisements on the website offering Girl 1 for commercial sex on August 1 and August 2, 2017. One of Girl 1’s customers returned to the room the next day to rescue her, and he took her to live in a different city with his sister.
The evidence also proved that in November 2017, Parks met Girl 2 online, and he learned that she had run away from her foster home. On November 16, 2017, Parks paid a driver through an application on his cell phone to pick up Girl 2 and bring her to his home. Girl 2, who was 15 years old, told Parks that she was 17 years old, in foster care, and in an unhappy situation. Parks provided Girl 2 with marijuana and had sex with her. He talked to her about making money through prostitution, and he took her to the same motel in Baltimore where Parks had harbored Girl 1. Girl 2 had run away from her foster home without a coat, a purse, or change of clothing. Parks purchased a bra, panties, and condoms for Girl 2. Parks took photographs of Girl 2 and paid for an online advertisement offering Girl 2 for commercial sex using his cell phone. Several of the photos that Parks uploaded to the website were rejected, because they contained nudity and were too explicit. Less revealing photos of Girl 2, wearing the bra and panties purchased by Parks, were accepted and uploaded to the online advertisement.
As he had with Girl 1, Parks then set the prices and time limits for the sex acts to be performed on Girl 2, and he instructed her on the process of checking a man for a wire when he came into the motel room. Parks stayed in the motel room with Girl 2 when other men were not present, but he left the room and stood outside in a stairwell when men arrived to have sex with Girl 2. Parks offered Girl 2 for commercial sex from November 16 through November 20, 2017. During this time, over 300 individuals contacted the phone number placed by Parks on the advertisement, to inquire about commercial sex with Girl 2. On November 21, 2017, Girl 2 contacted her foster care social worker, who dispatched police to the motel. According to trial testimony, Parks reviewed Girl 2’s phone while she was in the shower and saw that she had contacted her social worker. Parks became angry, told her to delete information from her phone and to remove the chip from her phone, and then he left the motel. Girl 2 went to the lobby and turned herself in to police.
While law enforcement was investigating the trafficking of the two minor victims, they discovered evidence regarding the extent of Parks’ prostitution business. Evidence at trial proved that from February 25, 2017, through the date that he was arrested on January 10, 2018, Parks paid over $1,000 for approximately 295 commercial sex advertisements placed on the Internet. Parks advertised approximately 27 different women and girls for commercial sex. Parks also paid over $6,000 for hotel rooms in Baltimore County and Baltimore City during the course of his prostitution enterprise.
Parks remains detained.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from 10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution.
MCETF partners with the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
United States Attorney Robert K. Hur commended the FBI and Maryland State Police for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Christine Duey and Matthew Maddox, who prosecuted the case.
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Aventura Technologies, Inc. and its Senior Management Charged with Fraud, Money Laundering and Illegal Importation of Equipment Manufactured in ChinaRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging surveillance and security equipment company Aventura Technologies, Inc. (Aventura), located in Commack, New York, and seven current and former employees with selling Chinese-made equipment with known cybersecurity vulnerability to government and private customers while falsely representing that the equipment was made in the United States and concealing that the products were manufactured in the People’s Republic of China (PRC). Aventura has generated more than $88 million in sales revenue since November 2010, and the charged scheme has been ongoing since 2006.
In addition to Aventura, the individual defendants charged in the complaint are Jack Cabasso, Aventura’s Managing Director and de facto owner and operator; Frances Cabasso, his wife and Aventura’s purported owner and Chief Executive Officer; senior executives Jonathan Lasker, Christine Lavonne Lazarus and Eduard Matulik; current employee Wayne Marino; and recently retired employee Alan Schwartz.
Four of the individual defendants are also charged with defrauding the U.S. government by falsely claiming that Frances Cabasso was the owner and operator of the company in order to obtain access to valuable government contracts reserved for women-owned businesses when, in fact, Aventura was actually controlled by her husband, Jack Cabasso. The Cabassos are also charged with laundering the monetary proceeds of these fraudulent schemes.
Six of the defendants were arrested this morning and are scheduled to be arraigned this afternoon before United States Magistrate Judge Ramon E. Reyes, Jr. Law enforcement agents executed search warrants at Aventura’s headquarters in Commack, New York, and at the home of Jack and Frances Cabasso in Northport, New York. The government has also seized the Cabassos’ 70-foot luxury yacht, and has frozen approximately $3 million in 12 financial accounts that contain proceeds from the defendants’ unlawful conduct.
Richard P. Donoghue, United States Attorney for the Eastern District of New York; William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Joseph P. Dattoria, Special Agent-in-Charge, U.S. General Services Administration, Office of Inspector General (GSA-OIG); Leigh-Alistair Barzey, Special Agent-in-Charge, Defense Criminal Investigative Service, Northeast Field Office (DCIS); J. Russell George, Treasury Inspector General for Tax Administration (TIGTA); Troy Miller, Director of Field Operations, U.S. Customs and Border Protection, New York Field Office (CBP); Jonathan D. Larsen, Special Agent-in-Charge, Internal Revenue Service, Criminal Investigation, New York (IRS-CI); Jason T. Hein, Special Agent-in-Charge, U.S. Air Force Office of Special Investigations, Office of Procurement Fraud Investigations, Detachment Six (AFOSI); Leo Lamont, Special Agent-in-Charge, Naval Criminal Investigative Service (NCIS); and Teri L. Donaldson, Inspector General, U.S. Department of Energy, Office of Inspector General (DOE-OIG), announced the charges.
“As alleged, the defendants falsely claimed for years that their surveillance and security equipment was manufactured on Long Island, padding their pockets with money from lucrative contracts without regard for the risk to our country’s national security posed by secretly peddling made-in-China electronics with known cyber vulnerabilities,” stated United States Attorney Donoghue. “With today’s arrests, the defendants’ brazen deceptions and fraud schemes have been exposed, and they will face serious consequences for slapping phony ‘Made in the U.S.A.’ labels on products that our armed forces and other sensitive government facilities depended upon.” Mr. Donoghue expressed his appreciation to U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit for their work on the case.
“Greed is at the heart of this scheme, a reprehensible motive when the subjects in this case allegedly put into question the security of men and women who don uniforms each day to protect our nation,” stated FBI Assistant Director-in-Charge Sweeney. “There is no mistaking the cyber vulnerabilities created when this company sold electronic surveillance products made in the PRC, and then using those items in our government agencies and the branches of our armed forces. I cannot stress enough that we will do everything we can to search out and stop any other company willing to cut corners and pocket profits that endanger the lives of Americans, and make this country less safe.”
“The laws in place regulating government contracts ensure both the taxpayer and government receive quality goods and services at competitive prices. In addition, they provide a fair opportunity and level playing field for all businesses seeking government contracts. The General Services Administration’s Office of Inspector General will continue to work closely with our law enforcement partners to aggressively investigate allegations of fraud against the United States Government,” stated GSA-OIG Special Agent-in-Charge Dattoria.
“The arrests and other enforcement operations that occurred today were the direct result of a joint investigative effort,” stated DCIS Special Agent-in-Charge Barzey. “The introduction of counterfeit parts and materials into the U.S. Defense Department’s supply chain poses a significant risk and impacts America’s military readiness and our national security. The DCIS is committed to working with its law enforcement partners and the U.S. Attorney's Office, Eastern District of New York, to ensure that individuals and companies who engage in fraudulent activity, at the expense of the U.S. military, are investigated and prosecuted.”
“TIGTA’s mission includes investigating allegations of waste, fraud or abuse involving the Internal Revenue Service (IRS),” stated TIGTA Inspector General George. “Mr. Cabasso and his co-conspirators secured products from outside of the U.S. while purporting that these products were made in America. They then sold these products to the U.S. Government, including the IRS and other Government agencies. TIGTA is committed to investigating and working with our law enforcement partners to root out this type of fraud from the Government contracting and procurement process. I want to thank U.S. Attorney Donoghue for the steadfast support that he and his talented prosecutors gave to this investigation.”
“U.S. Customs and Border Protection provided the critical link to an ongoing investigation that resulted in the takedown of an elaborate criminal enterprise,” stated CBP Director of Field Operations Miller. “This case serves as a great example of collaborative law enforcement efforts to uncover and dismantle criminal enterprises that seek to defraud the United States government for personal gain while jeopardizing our national defense and causing economic harm to their competitors.”
“In today’s global economy, ‘Made in the USA’ is too sacred of a mark to fraudulently use for one’s self interest,” stated IRS-CI Special Agent-in-Charge Larsen. “IRS-Criminal Investigation works diligently with our law enforcement partners to uncover con artists devising elaborate schemes to become independently wealthy. These allegations have serious national security implications that go beyond shameless attempts at personal enrichment.”
“Product substitution is a serious crime that puts our men and women in uniform at greater risk,” stated NCIS Special Agent-in-Charge Lamont. “Our Sailors, Marines, and other armed services personnel deserve to have equipment that meets the highest standards for safety and performance, which will not fail them when it matters most. Substandard and counterfeit parts simply cannot be depended upon. Investigating product substitution and mitigating risks to the Department of the Navy supply chain is a top priority for the Naval Criminal Investigative Service. NCIS has a cadre of Special Agents trained in all aspects of economic crime, tirelessly fighting fraud in the procurement process.”
“Ensuring the integrity of the US Air Force procurement process and the quality of the products provided to our warfighters is a top investigative priority of the Air Force Office of Special Investigations,” stated AFOSI Special Agent-in-Charge Hein. “Those who seek to conduct business with the Air Force must be candid and truthful. AFOSI will aggressively investigate those who attempt to defraud the Air Force, and will work with our law enforcement partners to identify and prosecute those who would take advantage of the USAF and its interests. The victims are not just our men and women in uniform, but every American taxpayer.”
“The Department of Energy’s Office of Inspector General remains committed to ensuring the integrity and security of the Department’s vendors, especially given the serious nature of the Department’s mission,” stated DOE Inspector General Donaldson. “We take allegations of conspiracy against the U.S. Government very seriously and will aggressively investigate these matters to protect the Department and the American taxpayers. We appreciate the collaborative efforts of the DOJ and our other law enforcement partners.”
The Country of Origin Fraud and Unlawful Importation Scheme
As charged in the criminal complaint and in court documents filed today,[1] for over a decade Aventura lied to its customers, including the U.S. military, the federal government and private customers in the United States and abroad. Under federal government procurement laws and regulations a product’s country of origin can impact a procurement officer’s decision to purchase a product. A product’s country of origin also matters to some private sector customers. In addition, all products imported into the United States must be marked with their country of origin. Over the past decade, Aventura made upwards of $88 million, including over $20 million in federal government contracts, while claiming that it was manufacturing its products at its headquarters in Commack. In fact, Aventura does not manufacture anything in the United States. Instead, since at least 2006, Aventura has been importing products primarily from the PRC, then reselling them as American-made or manufactured in a small number of other countries.
Notably, Aventura imported networked security products from PRC manufacturers with known cybersecurity vulnerabilities, and resold them to U.S. military and other government installations while claiming that they were American-made. Aventura similarly deceived private customers in the United States and abroad who paid a premium for what they believed to be American-made goods. As a result, Aventura not only defrauded its customers, but also exposed them to serious, known cybersecurity risks, and created a channel by which hostile foreign governments could have accessed some of the government’s most sensitive facilities.
For this conduct, Aventura and the seven individual defendants are charged with unlawful importation and conspiracy to commit wire and bank fraud.
In the course of its investigation, the government intercepted and covertly marked numerous shipments from PRC sources to Aventura’s Commack headquarters. In some cases, cameras shipped from the PRC were pre-marked with Aventura’s logo and the phrase “Made in USA,” accompanied by an American flag. In many instances, the items were later resold to government agencies to whom the defendants falsely represented that the products were American-made.
For example, in March 2019 the U.S. Navy ordered from Aventura a $13,500 laser-enhanced night vision camera that was specified as American-made on Aventura’s U.S. General Services Administration (GSA) price list. (In fact, no item on Aventura’s GSA price list is listed as being made in the PRC.) In April 2019, at a shipping facility in Jamaica, Queens, a team led by CBP officers intercepted a shipment from a PRC manufacturer (“PRC Manufacturer-3”) to Aventura that contained a camera matching the Navy’s order and surreptitiously marked it for later identification using a method that would not be apparent to a casual observer.[2] Two weeks later, that same camera was delivered to Naval Submarine Base New London in Groton, Connecticut.
In another instance, in September 2018, the Department of Energy (DOE) ordered approximately $156,000 worth of networked automated turnstiles from Aventura, to be installed at a facility in Tennessee. Aventura’s GSA price list described the turnstiles as American-made. In January 2019, turnstiles matching DOE’s order were intercepted in a shipment from a PRC manufacturer and marked by CBP; one month later, they arrived at the DOE facility in Tennessee. The crates shipped by Aventura to the DOE appeared identical to those that the CBP-led team had inspected, except that the shipping labels from the PRC directing the crates to Aventura had been peeled off, leaving behind visible traces of paper and glue. A special agent with the DOE-OIG placed a call to Lazarus regarding the turnstile shipment in May 2015. During the call, Lazarus falsely stated that the turnstiles were “U.S. made [in] New York.”
As a third example, in 2018, Aventura sold the U.S. Air Force 25 body cameras for use by Air Force security personnel at an Air Force base. Aventura was contractually required to provide goods from a limited set of countries that did not include the PRC. In August 2018, however, an Air Force service member observed Chinese characters on the built-in screen of one of the body cameras. The body camera was sent for analysis to a specialist, who downloaded its firmware and found numerous indications that the camera was manufactured in PRC. The camera contained multiple preloaded images that were apparently designed to display on the built-in screen—including the U.S. Air Force logo, the logo of the PRC Ministry of Public Security and the logo of PRC Manufacturer-1. All three logos had been saved to the camera’s firmware using the same software, on a computer that was set to a time zone in the PRC—indicating that the camera’s manufacturer in the PRC had been aware that the U.S. Air Force was a likely end user of the camera.
The defendants, working with counterparts in the PRC, took extraordinary steps to conceal this scheme. In November 2018, Jack Cabasso exchanged emails with an employee of a PRC manufacturer of surveillance equipment (PRC Manufacturer-2), identifying the need to “hide” the name of PRC Manufacturer-2 from Aventura’s customers. Cabasso wrote that Schwartz was “putting together a list” of steps to be taken. One week later, Cabasso stressed the need to take steps so that “they cannot trace” the product to PRC Manufacturer-2, adding, “The housings are a problem since you publish them on your website but nothing we can do about that.” Cabasso added that “the biggest problem” was that PRC Manufacturer-2’s initials were marked on its circuit boards, and said that he had “lost several potential customers” because of similar practices by another PRC manufacturer (PRC Manufacturer-1). The employee responded that the company’s initials would be removed from all circuit boards shipped to Aventura. Lasker was copied on all of the emails in this sequence.
Similarly, in December 2018, Jack Cabasso and Marino exchanged emails with employees of another PRC-based digital video equipment manufacturer (PRC Manufacturer-4). Marino complained to the employees that “communication from the server to the client contains [PRC Manufacturer-4’s name] visible in clear text. This should be changed.” When one of the employees wrote that this could not be changed, Cabasso responded: “WE CANNOT HAVE CUSTOMERS ABLE TO SEE” PRC Manufacturer-4’s name, later adding, “we also sent a sample to a customer and he found [PRC Manufacturer-4]. . . branding in the [operating system] which is a problem.” Schwartz and Lasker, among others, were included on these communications.
On or about November 23, 2016, Jack Cabasso sent an email to a GSA representative accusing 12 other GSA contractors of selling products to the U.S. Government that were manufactured by a PRC manufacturer of surveillance equipment (PRC Manufacturer-1). Cabasso asserted that this was a “big problem” and “doesn’t get any worse,” because PRC Manufacturer-1 was “actually the Communist Chinese Government and ha[d] ‘significant’ cybersecurity issues aside from” compliance with U.S. laws specifying country-of-origin requirements for government purchases. Cabasso stated that PRC Manufacturer-1 “will acknowledge they manufacture no products outside of China,” and appended an article about the removal of cameras manufactured by PRC Manufacturer-1 from the U.S. Embassy in Afghanistan.
Notably, Aventura was importing security equipment from PRC Manufacturer-1 while Jack Cabasso was complaining to GSA about other contractors’ supposed dealings with the company. For example, bank records show that Aventura wired funds to PRC Manufacturer-1 in the PRC on or about October 31, 2016 and November 29, 2016. And, law enforcement records show that on or about December 13, 2016, Aventura imported from PRC Manufacturer-1 in PRC an approximately 1,800-pound shipment of goods manifested as “digital video.”
In November 2018, Jack Cabasso and Matulik communicated with a potential distributor in Qatar, who asked for assurance that Aventura’s cameras were American made. Cabasso responded: “I believe Ed confirmed that they are made in the Aventura factory here in New York and [anyone] may visit at any time.” Cabasso attached what purported to be a photograph of Aventura’s assembly line, depicting a row of seated individuals in blue lab coats and protective hairnets working at laboratory benches—a photograph that also appears on Aventura’s website. In reality, this photograph first appeared in a trade publication article recounting a reporter’s visit to PRC Manufacturer-1’s manufacturing facility in Hangzhou, PRC, and it depicts PRC Manufacturer-1’s assembly line, not Aventura’s.
The Scheme to Misrepresent Aventura as a Woman-Owned Small Business
Jack and Frances Cabasso, along with Lasker and Lazarus, falsely represented on numerous occasions that Frances Cabasso was the chief executive of Aventura. In fact, the true chief executive officer of Aventura was Jack Cabasso, and Frances Cabasso played a minimal role at the company. This misrepresentation gave Aventura access to government contracts that were set aside for women-owned small businesses, a category that is legally defined to include only those businesses owned by women, where management and daily operations are also controlled by one or more women.
In order to win these set-asides, the defendants represented to the public that Frances Cabasso controlled Aventura. Aventura’s website and its GSA webpage identify Aventura as a woman-owned business, and the defendants repeatedly certified to the GSA and stated to government procurement officers that Aventura is a woman-owned business. For example, on or about January 13, 2014, a GSA employee emailed Frances Cabasso to “verify if Aventura Technologies, Inc. is a Woman-Owned business.” She replied: “Yes we are still a certified women-owned business.” Aventura has won numerous contracts from the federal government on the strength of its status as a woman-owned business.
As Jack Cabasso repeatedly admitted, he was the true chief executive officer of Aventura. In 2017, Jack Cabasso emailed an Air Force procurement officer, stating in part, “I am the Managing Director of Aventura Technologies and the senior most person within the organization.” Similarly, in a 2018 deposition, Cabasso said that his job responsibilities were to “oversee all operations of the company.” By contrast, Frances Cabasso has worked as a bookkeeper at an unrelated accounting firm since 2011 and is rarely present at Aventura’s offices. At times, emails sent to Frances Cabasso’s email address appear to have been auto-forwarded to Jack Cabasso who sometimes signed his responses in Frances’s name. The defendants joked about the fact that Frances Cabasso did not work at Aventura. For example, in an instant message exchange on December 5, 2016 between Jack Cabasso and Lazarus, both defendants discussed moving another employee into “Fran’s” office—the office of the purported owner of the company—putting the name “Fran’s” in quotation marks.
The Money Laundering Scheme
Jack and Frances Cabasso siphoned Aventura’s illegal profits out of the company through a network of shell companies and intermediaries. The funds were then directed to investments owned by the Cabassos or controlled for their benefit.
Between 2016 and 2018, Aventura transferred approximately $2 million to an attorney escrow account belonging to a Long Island, New York-based law firm (Law Firm-1), some of which appears to have been intended to conceal the source of the funds. For example, on or about May 24, 2016, Aventura transferred $450,000 to Law Firm-1. On the same day, Law Firm-1 paid a total of $435,000 towards the purchase of a new home for a relative of Jack and Frances Cabasso.
Similarly, in early 2018, Aventura transferred $675,000 to Law Firm-1. Those funds were loaned out to a separate company for use in purchasing a house. When that company repaid the loan to Law Firm-1, the proceeds, totaling approximately $682,000, were transferred to Frances Cabasso.
In addition to the transactions through Law Firm-1, Aventura has transferred at least $2.75 million to shell companies owned by Frances Cabasso. Those funds were then transferred to a number of accounts, including Frances Cabasso’s personal bank account and the business account of a lawyer retained by Jack Cabasso. Some of these funds were returned to Aventura’s bank accounts, in transactions having no discernible economic purpose.
In addition to these and other transfers, Aventura has made approximately $1 million in payments since 2013 related to the Cabassos’ 70-foot luxury yacht, known as the Tranquilo, which is moored in the gated community where the Cabassos reside. Although Aventura is the purported owner of the Tranquilo, the yacht appears to have no connection with Aventura’s corporate business, and its rental income flows to the Cabassos, not to Aventura.
***
The defendants are presumed innocent unless and until proven guilty. If convicted, the defendants each face up to 20 years’ imprisonment on each charge in the complaint.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Ian C. Richardson, Alexander Mindlin, Kayla Bensing and Claire Kedeshian are in charge of the prosecution.
The FBI has established an email hotline for potential victims. If you have information regarding Aventura’s crimes or believe that you may be a victim, please send an email to [email protected]
The Defendants:
AVENTURA TECHNOLOGIES, INC.
Commack, New YorkFRANCES CABASSO
Age: 59
Northport, New YorkJACK CABASSO
Age: 61
Northport, New YorkJONATHAN LASKER
Age: 34
Port Jefferson Station, New YorkCHRISTINE LAVONNE LAZARUS
Age: 45
Shirley, New YorkWAYNE MARINO
Age: 39
Rocky Point, New YorkEDUARD MATULIK
Age: 42
North Massapequa, New YorkALAN SCHWARTZ
Age: 70
Smithtown, New YorkE.D.N.Y. Docket No. 19-MJ-1035
[1] As the introductory phrase signifies, the entirety of the text of the complaint and the description of the complaint set forth herein, constitute only allegations and every fact described should be treated as an allegation.
[2] The numerals used to identify the manufacturers in this press release correspond to the way they are referred to in the criminal complaint.
Arenas Pled Guilty to Preparing False Federal Income Tax Returns for Anchorage Spanish-Speaking Community MembersRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that on Tuesday Jose Luis Arenas, 65, pled guilty to 5 counts of aiding and assisting in the preparation of false federal individual income tax returns with a clientele primarily of Spanish-speaking members of the Anchorage community, charging them $100 to $600 per return.
Arenas had tax preparation training through H&R Block, but since 2012 has never been a registered tax preparer in Anchorage, Alaska. According to the Plea Agreement, between tax years 2013 and 2016, Arenas consistently failed to indicate that he had filed them as a paid, professional preparer. Instead, the returns appeared to be filed individually by the taxpayers. Arenas would obtain undue tax refunds for his clients by inflating certain Schedule A deductions, particularly medical expenses and charitable giving. Oftentimes, Arenas would fabricate medical expenses, unbeknownst to his clients.
“Shady tax return preparers like this defendant not only steal tax money out of the pockets of all honest citizens, he uses his clients to file false returns, putting them at risk as well,” commented U.S. Attorney Bryan Schroder. “We will work closely with our partners at the Internal Revenue Service - Criminal Investigation to protect the honest tax payers in Alaska.”
Arenas faces a maximum sentence of 3 years in federal prison, a fine of up to $250,000, 3 years of supervised release, 5 years of probation, and restitution. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the criminal history, if any, of the defendant.
“Tuesday’s guilty plea of Jose Arenas for preparing false tax returns for his Anchorage clients highlights a common trend among unscrupulous return preparers. They exploit their client’s lack of knowledge or understanding of tax matters for personal gain,” said Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge Justin Campbell. “Furthermore, he thought that by concealing his paid preparer status he would be shielded from criminal prosecution. He was wrong and he will be held accountable for his actions.”
The Internal Revenue Service, Criminal Investigation (IRS-CI) conducted the investigation leading to the charges in this case and is being prosecuted by Assistant U.S. Attorney Kim Sayers-Fay.
Alien Smuggler Arrested in AmsterdamRead the Press Release
ALBANY, NEW YORK – Anselmo Padron Martinez, age 47, a citizen of Mexico residing in Middletown, Virginia, was arrested Tuesday in Amsterdam, New York, during an effort to smuggle six Mexican citizens.
The announcement was made by United States Attorney Grant C. Jaquith and Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
According to the criminal complaints, Amsterdam Police stopped a Virginia-registered vehicle following a traffic infraction at 2:50 a.m. on November 5. Federal agents eventually responded and determined that the six passengers in the vehicle were illegal aliens from Mexico who had secretly entered the United States from Canada near Champlain, New York, mere hours prior to the vehicle stop.
Padron Martinez is charged with transporting aliens unlawfully present in the United States for the purpose of commercial advantage and private financial gain. He appeared before United States Magistrate Judge Daniel J. Stewart and was detained pending a detention hearing scheduled for November 8. Of the smuggled aliens, five were detained and appeared before Judge Stewart today on misdemeanor charges of entry without inspection. The charges in the complaints are merely accusations. The defendants are presumed innocent unless and until proven guilty.
The charges filed against Padron Martinez carry a maximum sentence of 10 years in prison, a fine of up to $250,000, and a post-imprisonment term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
These cases are being investigated by HSI, with assistance from ICE-Enforcement and Removal Operations, and are being prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Alaska Doctor Charged with Wire FraudRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced that DR. ANDREW J. VAN ATTA, age 37, from Wasilla, Alaska, was charged today with wire fraud.
The government filed a one-count indictment that charged VAN ATTA with wire fraud, from January of 2017 through May of 2018. According to the indictment, starting in January of 2017, when VAN ATTA was a medical student, and continuing after he graduated, VAN ATTA used multiple email accounts and PayPal accounts to impersonate numerous other physicians while filling out surveys with a survey company that paid VAN ATTA for surveys that the victim company believed were completed by various other physicians. The company paid VAN ATTA over $114,000 for the surveys completed under the fake names.
U.S. Attorney Strasser reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
If convicted of these charges, VAN ATTA faces up to twenty years in prison, followed by up to three years of supervised release, and a fine of up to $250,000 or twice the gross gain to VAN ATTA or the gross loss to any victims.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation. Assistant United States Attorney Nicholas D. Moses is in charge of the prosecution.
Activity in the United States Attorney's OfficeRead the Press Release
Federal District Court Judge Alan B. Johnson sentenced SERGIO GOMEZ-ARTEAGA, 31, of Mexico on October 31, 2019 for conspiracy to distribute methamphetamine. Gomez-Arteaga was arrested in Evanston, Wyoming. He received fifty-seven months of imprisonment and was ordered to pay a $100.00 fine and restitution in the amount of $400.00. The Wyoming Division of Criminal Investigation investigated this case.
Federal District Court Judge Alan B. Johnson sentenced JANELLE KAY IDDINGS, 44, of Cheyenne, Wyoming on November 5, 2019 for conspiracy to distribute methamphetamine, distribution of methamphetamine, and possession with intent to distribute methamphetamine. Iddings was arrested in Laramie County, Wyoming. She received seventy months of imprisonment, to be followed by forty-eight months of supervised release, and ordered to pay community restitution in the amount of $300.00 and a $300.00 special assessment. The Wyoming Division of Criminal Investigation investigated the case.
Federal District Court Judge Alan B. Johnson sentenced LAMONT DUBOIS STURGIS, 39, of Cheyenne, Wyoming on November 5, 2019 for conspiracy to distribute methamphetamine and carrying a firearm during and in relation to a drug trafficking crime. Sturgis was arrested in Laramie County, Wyoming. He received one hundred thirty months of imprisonment, to be followed by sixty months of supervised release, and ordered to pay community restitution in the amount of $500.00 and a $200.00 special assessment. The Wyoming Division of Criminal Investigation investigated the case.
Federal District Court Judge Alan B. Johnson sentenced ROBERT EUGENE LOGAN, 63, of Cheyenne, Wyoming on November 5, 2019 for possession of child pornography. Logan was arrested in Laramie County, Wyoming. He received one hundred twenty months of imprisonment, to be followed by eighty-four months of supervised release, and ordered to pay a $100.00 special assessment and $3,000.00 to the Child Pornography Victim Assistance Act. The Laramie County Sheriff’s Office and Wyoming Division of Criminal Investigation investigated this case.
200+ Military, JAG, Prosecutors Attend SVI Civil Rights Training at Fort BenningRead the Press Release
COLUMBUS, Ga. — Active duty military, veterans and their families joined with federal government employees in a specialized civil rights training today at Fort Benning, a significant U.S. Army installation located along the Georgia-Alabama border, said Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. The U.S. Attorney’s Office hosted the half-day training, delivered by subject matter experts from the U.S. Department of Justice’s (DOJ) Civil Rights Division, Servicemembers and Veterans Initiative (SVI).
The training focused on legislation protecting servicemembers, veterans and their families, including the Servicemembers Civil Relief Act (SCRA), the Uniformed Services Employment and Reemployment Rights Act (USERRA), the Uniformed Overseas Citizens Absentee Voting Act (UOCAVA) and the Americans with Disabilities Act (ADA).
The training was also given to attorneys and staff from the Ft. Benning Office of the Staff Judge Advocate, along with Assistant United States Attorneys from the U.S. Attorney’s Office for the Northern District of Georgia, the Southern District of Georgia, the Northern District of Alabama and the Middle District of Alabama.
“Our military does not hesitate to defend our citizens, and we are ready and prepared to go to battle protecting our brave service members when their civil rights are violated,” said U.S. Attorney Charlie Peeler. “Protecting the rights of our military and their families is a high priority for our office. In order to effectively do our job, it is important that we educate servicemembers about the laws that protect them and how to report a problem. We also want to make sure that the federal teams supporting our servicemembers can respond quickly to any violations. I want to thank SVI for providing this critical training, and for their dedication to protecting the civil rights of our servicemembers, veterans and their families.”
“Patriots have protected and defended our nation for nearly 250 years. Many of them made the ultimate sacrifice and gave their lives for all of us, others suffered severe injuries, and all made sacrifices for our country,” said Assistant Attorney General for Civil Rights Eric Dreiband, “We owe these valiant Americans our eternal gratitude, and the U.S. Department of Justice will aggressively continue to enforce the federal law protections that Congress enacted to protect servicemembers.”
"As a servicemember and a Legal Assistance attorney working in the Office of the Staff Judge Advocate, I can attest to the many issues that arise concerning servicemembers, veterans and their families. These issues at times involve events that can only be described as life altering. It is absolutely imperative for our clients to be fully informed of the numerous protections that are available based on sacrificial military service to this great nation. I am grateful to have had the opportunity to organize and attend the training event which brought Mr. Peeler and the trainers from the SVI to Fort Benning,” said Elizabeth Paillere, Legal Assistance Attorney, Office of the Staff Judge Advocate, U.S. Army Maneuver Center of Excellence, Fort Benning.
Cases filed on behalf of servicemembers and veterans involve many issues, including unlawful home foreclosures, lease agreements, auto repossessions and job termination due to military service. The Department of Justice’s cases and settlements under the SCRA has resulted in $470 million in monetary relief for over 119,155 servicemembers and veterans who experienced violations of their financial and housing rights. The Department has also filed 106 USERRA lawsuits regarding violations of servicemembers and veterans’ civilian employment rights, and favorably resolved 193 USERRA complaints through consent decrees and private settlements.
SVI coordinates with Department of Justice components, the U.S. Attorney’s Offices and federal agencies to build a comprehensive legal support and protection network focused on serving servicemembers, veterans and their families. The Initiative builds upon this critical enforcement work, as well as the work of other Department components that serve the military community, by sharing information, identifying servicemember and veteran needs and coordinating the distribution of resources. SVI’s mission is to support the Department in its efforts to protect those who protect us all. Additional information on SVI, including recent cases, can be found at www.justice.gov/servicemembers.
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.
119 Illegal Aliens Prosecuted for Stealing Identities of Americans, Falsifying Immigration Documents, Fraudulently Claiming to be U.S. Citizens, Other CrimesRead the Press Release
Jackson, Miss. – U.S. Attorney Mike Hurst announced today that 119 illegal aliens have been prosecuted by the U.S. Attorney’s Office since the execution of multiple federal criminal and administrative search warrants at seven sites across the State of Mississippi on August 7, 2019. The federal indictments charge the defendants with crimes ranging from misusing social security numbers of American citizens, to fraudulently claiming to be a U.S. Citizen, to falsifying immigration documents, to reentering the United States after having previously been deported or removed.
To date, 47 of the 119 indicted illegal aliens have pled guilty, with a number of others indicating their intent to plead guilty. Of those who have already pled guilty, 26 admitted to fraudulently using the Social Security Number of an American citizen, in violation of 42 U.S.C. § 408(a)(7)(B). The other 21 of these illegal aliens have pled guilty to unlawfully reentering the United States after having been previously deported or removed, in violation of 8 U.S.C. § 1326(a). The remaining have been charged with these same crimes, as well as some charged with falsely claiming to be a United States Citizen, in violation of 18 U.S.C. § 911, and making false statements in immigration documents, in violated of 18 U.S.C. § 1546.
"Americans have been directly harmed by the theft of their identities, resulting in citizens not being able to get loans or credit cards, obtain health insurance, and perform other basic activities. Every single one of the 680 aliens arrested in August broke our nation’s laws by coming to our country illegally. Turning a blind eye to their illegal acts would not be fair to our nation, their victims, or the millions of naturalized American citizens who waited years and meticulously followed the process by which to become an American. It is our job in the U.S. Attorney’s Office to enforce our federal laws equitably and fairly, and we have done so and will continue to vigorously do so, protecting all Americans and ensuring the national security and sovereignty of our country is upheld," said U.S. Attorney Hurst.
6 November 2019
Winchester Man Charged with Assaulting Federal Postal Worker and Cocaine PossessionRead the Press Release
BOSTON – A Winchester man was arrested yesterday and charged with assaulting a federal postal worker and cocaine possession.
Raymond Acevedo, 29, was charged with one count of assaulting a federal postal worker and one count of possession with intent to distribute 500 grams or more of cocaine. Acevedo was detained following an initial appearance in federal court in Boston pending a probable cause and detention hearing set for Nov. 7, 2019.
According to charging documents, on Oct. 24, 2019, a U.S. Postal worker attempted to deliver an Express Mail package from Puerto Rico to the addressee in Dorchester. The postal worker was unable to locate the addressee and was returning to his vehicle when another individual, later determined to be Acevedo, approached the postal worker and demanded the package. When the postal worker would not give Acevedo the package, Acevedo assaulted the postal worker, took the package, and a fight ensued. As the postal worker and Acevedo were fighting over the package, police arrived and eventually arrested Acevedo, charging him with robbery and aggravated assault on the postal worker. The postal worker was transferred to a local hospital for the injuries he received during the altercation.
On Oct. 25, 2019, law enforcement officers opened the package pursuant to a federal search warrant and seized approximately 1.390 kilograms of cocaine.
The charge of assaulting a federal postal worker provides for a sentence of up to 20 years in prison and up to three years of supervised release. The charge of distribution of cocaine provides for a minimum mandatory sentence of five years and up to 40 years in prison, four years to a lifetime of supervised release, and a fine of up to $5 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston Field Division; and Boston Police Commissioner William Gross made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.