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5 November 2019
NDTX Round-Up November 5, 2019Read the Press Release
SENTENCING - Erick Dewayne Freeman and Kendrick Lamel Washington
On October 25, Erick Dewayne Freeman, 44, and Kendrick Lamel Washington, 40, were each sentenced to 30 years in federal custody for the crimes of possession with the intent to distribute heroin and possession of a firearm in furtherance of a drug trafficking crime. The defendants were involved in the Han Gil Hotel case. Freeman and Washington worked together to instill fear in customers to the “trap” rooms they managed in the hotel. Click here if you would like to learn more about their sentencing and the Han Gil case. This investigation was led by the Drug Enforcement Administration and the case was prosecuted by AUSA Rick Calvert and AUSA Phelesa Guy.
SENTENCING – Montrey Jerod Green
On October 28, Montrey Jerod Green, 27, was sentenced to 8 years in federal custody for the crime of possession of methamphetamine with the intent to distribute. In October of 2017, Green was paid $1,900 to deliver a 110 gram bag of methamphetamine and .45 caliber firearm to another individual. This case was investigated by the Texas Department of Public Safety and the City of Carrollton Police Department and prosecuted by AUSA George Leal.
GUILTY PLEA – Sherman Lakeith Ross
On October 31, Sherman Lakeith Ross, 45, pled guilty to possession with the intent to distribute heroin and aiding and abetting. Ross and his coconspirators used cell phones to communicate about their drug enterprise, and these communications were intercepted by the police. Law enforcement seized the drugs distributed from multiple customers, and after confirming that it was heroin, arrested Ross while he was in his probation officer’s office. Ross faces up to 20 years in federal prison. This case was investigated by the Drug Enforcement Administration and prosecuted by AUSA John Kull.
SENTENCING – Shawnetta Laruth Jones
Shawnetta Laruth Jones was sentenced to 5 years in federal prison for the crime of aiding and abetting a felon in possession of a firearm. Jones acted a straw-purchaser at a pawnshop in Mesquite after the owner refused to sell to her coconspirator for being a convicted felon. Jones knew the coconspirator because she had previously served as his parole officer. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the DeSoto Police Deparment and prosecuted by AUSA Walt Junker.
Monmouth County Man Sentenced to Two Years in Prison for Evading More Than $2 Million in TaxesRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, man was sentenced today to 24 months in prison for evading more than $2.3 million in personal and corporate income taxes between 2002 and 2011, and in 2015, U.S. Attorney Craig Carpenito announced.
Tito Viteri, 41, of Cream Ridge, New Jersey, previously pleaded guilty before Chief U.S. District Judge Freda L. Wolfson to an information charging him with one count of tax evasion. Judge Wolfson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Since 2002, Viteri was the owner and operator of numerous commercial trucking companies that performed delivery services. Between 2002 and 2011, and in 2015, Viteri evaded the payment of more than $2 million in personal and business-related taxes by:
• “pyramiding” companies and using nominees as the purported owners of several of the companies in order to shield business assets while incurring employment tax liabilities; • failing to file timely and accurate quarterly federal tax returns by falsely categorizing employees as independent contractors, for whom employment taxes did not have to be paid; • receiving unreported kickback income from an employee; • concealing personal income and assets by using nominees, and depositing substantial amounts of income into nominee bank accounts and failing to report that income on his personal tax returns.
In 2008, an IRS audit determined that Viteri owed approximately $785,000 in unpaid taxes for one of his companies, and that he himself owed approximately $315,000 in unpaid personal income taxes. Although Viteri began making payments to the IRS in August 2011, he stopped making those payments in December 2013, claiming he was not “bringing enough money home.” Despite his claims, from February 2013 to February 2016 Viteri made approximately $111,000 in rental payments (approximately $3,000 per month) for a property in Chesterfield. In 2016, although he still had substantial outstanding tax liabilities, Viteri purchased a home in Cream Ridge for more than $920,000. To conceal from the IRS the source of the funds used to purchase the home, Viteri arranged for the home to be purchased in his mother’s name.
In addition to the prison term, Chief Judge Wolfson sentenced Viteri to two 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 FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark: and the U.S. Department of Labor, Office of the Inspector General, under the direction of Special Agent in Charge Michael Mikulka in New York, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney J. Brendan Day of the Criminal Division in Trenton.
Defense counsel: Darren Gelber Esq., Woodbridge, New Jersey
Mississippi Man Sentenced to 36 Months for CrossburningRead the Press Release
WASHINGTON – The Honorable Judge Keith Starrett, of the United States District Court for the Southern District of Mississippi, sentenced Defendant Graham Williamson, 38, to serve 36 months incarceration on federal charges for his commission of a crossburning on Oct. 24, 2017, in Seminary, Mississippi. Williamson previously pleaded guilty on Aug. 5, 2019, to one count of interference with housing rights, a federal civil rights violation, and one count of conspiring to use fire to commit a federal felony. Williamson, along with a co-conspirator, built and burned a wooden cross near the home of a juvenile victim, M.H., who lived in a predominantly African-American residential area of Seminary. He burned the cross to threaten, frighten, and intimidate M.H. and other African-American residents because of their race and color, and because they lived in and occupied residences in that area of Seminary.
“The defendant invoked a terrifying symbol of racial violence to threaten and intimidate the victims for no other reason than their race and where they lived,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “Hate crimes like this contravene our society’s well-established principles of equality and freedom from race-based intimidation, and the Department of Justice will continue to pursue and prosecute such crimes to the fullest extent of the law.”
“Those who terrorize our people and commit crimes based on the color of someone’s skin will receive swift and certain prosecution from this office,” said U.S. Attorney Mike Hurst of the Southern District of Mississippi. “Working with our law enforcement partners, we will continue to do all that we can to prevent such racist crimes so that all our people can live in peace and without fear.”
“When people violate the civil rights of others for the sole purpose of intimidation, specifically burning a cross as in this case, it terrorizes an entire community,” said FBI Jackson Division Special Agent in Charge Michelle A. Sutphin. “Mississippians shouldn't have to fear for their safety within their own neighborhoods, and this case should send a strong message to those who threaten others based on race or color. Civil rights investigations remain a top priority for the FBI in Mississippi, and we will continue to vigorously investigate and seek prosecution for these violations.”
Defendant Williamson is the second individual to be sentenced for participation in this crossburning. Williamson’s co-conspirator, Louie Bernard Revette, previously pleaded guilty to one count of interference with housing rights and one count of using fire to commit a federal felony. On Sept. 10, 2019, the Honorable Judge Starrett sentenced Revette to 11 years incarceration on those two charges.
This case was investigated by the FBI’s Jackson, Mississippi Field Office, including the FBI Safe Streets Task Force and the Jackson Public Corruption Task Force. Special Litigation Counsel Julia Gegenheimer of the Department of Justice Civil Rights Division and Assistant U.S. Attorney Candace Mayberry of the Southern District of Mississippi prosecuted the case.
Mississippi Man Sentenced to 36 Months for CrossburningRead the Press Release
The Honorable Judge Keith Starrett, of the United States District Court for the Southern District of Mississippi, sentenced Defendant Graham Williamson, 38, to serve 36 months incarcertation on federal charges for his commission of a crossburning on Oct. 24, 2017, in Seminary, Mississippi. Williamson previously pleaded guilty on Aug. 5, 2019, to one count of interference with housing rights, a federal civil rights violation, and one count of conspiring to use fire to commit a federal felony. Williamson, along with a co-conspirator, built and burned a wooden cross near the home of a juvenile victim, M.H., who lived in a predominantly African-American residential area of Seminary. He burned the cross to threaten, frighten, and intimidate M.H. and other African-American residents because of their race and color, and because they lived in and occupied residences in that area of Seminary.
“The defendant invoked a terrifying symbol of racial violence to threaten and intimidate the victims for no other reason than their race and where they lived,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “Hate crimes like this contravene our society’s well-established principles of equality and freedom from race-based intimidation, and the Department of Justice will continue to pursue and prosecute such crimes to the fullest extent of the law.”
“Those who terrorize our people and commit crimes based on the color of someone’s skin will receive swift and certain prosecution from this office,” said U.S. Attorney Mike Hurst of the Southern District of Mississippi. “Working with our law enforcement partners, we will continue to do all that we can to prevent such racist crimes so that all our people can live in peace and without fear.”
“When people violate the civil rights of others for the sole purpose of intimidation, specifically burning a cross as in this case, it terrorizes an entire community,” said FBI Jackson Division Special Agent in Charge Michelle A. Sutphin. “Mississippians shouldn't have to fear for their safety within their own neighborhoods, and this case should send a strong message to those who threaten others based on race or color. Civil rights investigations remain a top priority for the FBI in Mississippi, and we will continue to vigorously investigate and seek prosecution for these violations.”
Defendant Williamson is the second individual to be sentenced for participation in this crossburning. Williamson’s co-conspirator, Louie Bernard Revette, previously pleaded guilty to one count of interference with housing rights and one count of using fire to commit a federal felony. On Sept. 10, 2019, the Honorable Judge Starrett sentenced Revette to 11 years incarceration on those two charges.
This case was investigated by the FBI’s Jackson, Mississippi Field Office, including the FBI Safe Streets Task Force and the Jackson Public Corruption Task Force. Special Litigation Counsel Julia Gegenheimer of the Department of Justice Civil Rights Division and Assistant U.S. Attorney Candace Mayberry of the Southern District of Mississippi prosecuted the case.
Minnesota Couple Charged with International Elder Fraud SchemeRead the Press Release
RICHMOND, Va. – A federal grand jury returned an indictment today charging a Minnesota couple with their roles in a sophisticated fraud scheme that primarily targeted elderly Americans.
According to court documents and allegations in the indictment, Chirag Janakbhai Choksi, 35, and his wife, Shachi Naishadh Majmudar, 35, were members of a criminal conspiracy who had members that impersonated law enforcement officials to trick and coerce victims into mailing and shipping cash to other conspiracy members by convincing the victims that it was in their best interests to do so.
These schemes generally start with “robocalls”, designed to create a sense of urgency with unsuspecting recipients. The messages typically tell the recipient that they have some sort of serious legal problem, and that if they do not immediately take a particular action demanded by the callers, then there will be drastic consequences, typically involving the arrest of the recipient, significant financial penalties, or cessation of government benefits. The fraudsters almost invariably instruct the call recipient that, in order to prevent these dire consequences, the recipients must pay money, by wire transfer or cash, to some purported government entity.
The conspiracy operated cells in multiple states, including New Jersey, California, Indiana, Texas, Illinois and Minnesota. In one particular alleged scheme, members of the conspiracy impersonated DEA agents and advised Victim 1 that a vehicle located near the southwest border contained cocaine and her bank information. The fraudsters then convinced Victim 1 to surrender half the cash in her bank accounts in good faith until a thorough investigation had been completed to clear her name of any criminal activity.
According to the indictment, Choksi used counterfeit driver’s licenses to identify himself when picking up cash shipments from victims, and then made multiple deposits of that cash into bank accounts controlled by conspiracy members. The indictment also alleges that Majmudar went to the online websites of FedEx and the U.S. Postal Service to track shipments of cash sent by victims, and made multiple deposits of victims’ cash into conspiracy-controlled bank accounts.
Choksi and Majmudar are both charged with conspiracy to commit mail and wire fraud, as well as one count of mail fraud. The maximum possible sentence for each of those charges is 20 years in prison. Choksi is also charged with aggravated identity theft, which provides for a mandatory minimum term of two years in prison that must run consecutive to any other sentence imposed. 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, Timothy M. Dunham, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division, and Greg Weber, Chief of Eden Prairie Police, Eden Prairie, Minnesota, made the announcement. Assistant U.S. Attorney Brian Hood is 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. 3:19-cr-160.
Milton Man Pleads Guilty to Bank Fraud ConspiracyRead the Press Release
BOSTON – A Milton man pleaded guilty yesterday in federal court in Boston in connection with schemes to use false identification documents to obtain funds from bank customers’ accounts.
Fesnel Lafortune, 30, of Milton, pleaded guilty to one count of conspiracy to commit bank fraud and one count of aggravated identity theft. U.S. District Court Senior Judge Douglas P. Woodlock scheduled sentencing for Feb. 18, 2020. Lafortune was charged in June 2019.
In April 2017, an unindicted co-conspirator obtained two bank checks totaling more than $340,000 from a Santander Bank customer’s account, using a fraudulent passport and credit card in the customer’s name. Lafortune deposited one of the checks in the amount of $175,500 to a business bank account he had opened using a false name, date of birth and Social Security number. Within days of depositing the check, Lafortune withdrew nearly $30,000 in cash in three transactions at three different bank branches. In June 2017, LaFortune used a second false identity of a real person to open two more business bank accounts, into which other co-conspirators wired more than $200,000. LaFortune withdrew about $165,000 from those accounts in cash and checks. The loss to banks totaled about $200,000.
The charge of conspiracy to commit bank fraud provides for a sentence of up to 30 years in prison, five years of supervised release and a fine of up to $1 million. The charge of aggravated identity theft provides for a two year mandatory minimum sentence, one year of supervised release and a fine of up to $250,000. 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 Office; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement. Assistant U.S. Attorneys Leslie A. Wright and Mark J. Balthazard of Lelling’s Securities and Financial Fraud Unit are prosecuting the cases.
Michigan Man Pleads Guilty to Federal Drug ChargeRead the Press Release
HUNTINGTON, W.Va. – A Michigan man pled guilty today to a federal drug charge, announced United States Attorney Mike Stuart. Abdullah Myles, 25, entered a guilty plea to an indictment charging him with possession with the intent to distribute heroin.
“Another day and another Michigan drug dealer will soon be going to prison for peddling heroin in Huntington,” said United States Attorney Mike Stuart. “My office has taken a tough, tough stance against these drug thugs. Sentences have more than doubled and we will continue with a sense of urgency until these poison peddlers figure it out. Drug dealers and poison peddlers are no longer welcome here.”
On February 7, 2019, officers with the Huntington Police Department executed a search warrant at a residence Myles was living in at 825 21st Street in Huntington. Officers recovered 13 grams of heroin from the room Myles was living in.
Myles faces up to twenty years in federal prison when he is sentenced on February 3, 2020.
The Huntington Police Department conducted the investigation. The plea hearing was held before United States District Judge Robert C. Chambers. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
This case is being prosecuted as part of Operation Synthetic Opioid Surge (S.O.S.), an enforcement surge that seeks to reduce the supply of deadly synthetic opioids in high impact areas.
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Mexican National Man Sentenced for Immigration CrimeRead the Press Release
CHARLESTON, W.Va. – A Mexican national man was sentenced to twelve months and one day of incarceration for the felony offense of reentry of a removed alien, announced United States Attorney Mike Stuart. Jose Guadelaupe Camarena-Jacinto, 38, entered a guilty plea on September 4, 2019. At the conclusion of his federal incarceration, he faces possible removal from the United States through administrative proceedings. Stuart commended the investigative efforts of the United States Immigration and Customs Enforcement (ICE) and the Ripley Police Department.
“Camarena-Jacinto has four prior removals,” said United States Attorney Mike Stuart. “He will now serve a year in prison before being deported for a fifth time. No one likes a line skipper -- not at Disney World and not at the border.”
On June 17, 2019, ICE agents traveled to the South Central Regional Jail in Charleston to confirm Camarena-Jacinto’s legal status after he had been arrested by Ripley police officers for the state offense of obstruction. Camarena-Jacinto admitted to agents that he was in the United States illegally. He was arrested and ICE agents matched his fingerprints to previous removals from the United States. ICE agents further spoke to defendant to confirm his identity. Camarena-Jacinto again admitted being in the United States illegally. Camarena-Jacinto had no identification documents permitting him legal status in the United States.
Fingerprinting matched Camarena-Jacinto to four prior removals from the United States in 2008, 2009, 2010, and 2012. His previous removals also included a prior conviction of illegal reentry into the United States from Federal Court in Jefferson City, Missouri. In all four cases, Camarena-Jacinto was found by immigration judges to be in the United States illegally and he was deported to Mexico. He had not obtained permission to legally enter the United States and had not sought legal status or citizenship. Camarena-Jacinto further admitted to ICE agents that he was a Mexican citizen.
Senior United States District Judge John T. Copenhaver Jr. presided over the hearing. Assistant United States Attorney Erik S. Goes handled the prosecution.
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Metairie Man Pleads Guilty to Conspiracy to Distribute OxycodoneRead the Press Release
NEW ORLEANS - U.S. Attorney Peter G. Strasser announced that AARON JEFFREY DENN, age 34, a resident of Metairie, Louisiana pled guilty on November 5, 2019 to conspiracy to distribute oxycodone.
According to court documents, between March and April 2019, DENN conspired to distribute oxycodone pills, which he obtained unlawfully on the black market. DENN faces up to 20 years’ imprisonment, a fine of up to $1,000,000 and at least three years of supervised release.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation, the Drug Enforcement Administration, the Department of Health and Human Services, and the Jefferson Parish Sheriff’s Office for their work investigating the case.
The case is being prosecuted by Jared Hasten of the Criminal Division’s Fraud Section and Assistant United States Attorney Myles Ranier.
Merrillville Woman Sentenced to 90 Months in PrisonRead the Press Release
HAMMOND –Tanisha Banks of Merrillville, Indiana was sentenced before U.S. District Court Judge Theresa Springmann after being convicted during a 4-day trial in January 2019. She was convicted of conspiring to rob the United States Postal Service, announced U.S. Attorney Kirsch.
Banks was sentenced to 90 months in prison, 2 years of supervised release and ordered to pay restitution in the amount of $5595.
According to documents in this case and evidence presented at trial, James Caffey conspired with Tanisha Banks and Leeroy Beck to rob the Tolleston Station Post Office in Gary, Indiana on August 3, 2017. Tanisha Banks, a Postal Service employee with experience working at the Tolleston Station, provided the logistics for the robbery while her boyfriend, James Caffey, handled transportation to and from the robbery. Together Banks and Caffey recruited the gunman, Leeroy Beck, who would actually carry out the robbery. At trial evidence was presented establishing that Caffey provided Beck with the handgun used during the robbery. After holding two employees at gun point, Leeroy Beck stole money and mail from the Postal Service. The cash was divided between the conspirators.
James Caffey was sentenced on November 1, 2019 to 90 months in prison. Leeroy Beck was sentenced on May 14, 2019 to 96 months in prison.
This case was investigated by the United States Postal Inspection Service with assistance from the Gary Police Department. The case was prosecuted by Northern District of Indiana Assistant United States Attorneys Diane Berkowitz and Thomas McGrath.
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MS-13 gang member sentenced to 42 months in federal prisonRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today that Walter Adan Martinez, 37, El Salvador, was sentenced to 42 months in federal prison by U.S. District Judge James P. Hanlon. Martinez previously pleaded guilty by information to charges of illegal re-entry.
“The U.S. Attorney’s Office remains committed to prosecuting those individuals who illegally re-enter the country, especially those who have violent criminal histories, and are a risk to public safety,” said Minkler.
Martinez, an MS-13 gang member from El Salvador, has a lengthy criminal history and was originally deported in 2011, subsequent to two previous felony convictions for second degree assault and leaving the scene of an accident causing injury. Martinez later returned to the United States and was arrested again in January of 2014 on felony charges of sexual misconduct with a minor. Martinez was sentenced to the Indiana Department of Correction. Following Martinez’s release from state custody in January of 2019, Martinez was turned over to the federal immigration authorities on a previously issued detainer and was held in custody until being arrested in 2019.
This case was investigated by U.S. Immigration and Customs Enforcement (ICE) and Removal Operations (ERO).
“Walter Martinez is a known MS-13 gang member and convicted felon who was removed from the United States only to resurface and be arrested – and convicted, for sexual misconduct of with a minor,” said Field Office Director Robert Guadian, ICE’s Enforcement and Removal Operations (ERO) Chicago. “It is the job of the brave men and women of ERO to continue to take those who break the laws of this country off the streets and see that they are removed back to their home countries.”
According to Assistant United States Attorney Kathryn E. Olivier, who prosecuted this case for the government, Martinez will serve three years of supervised release following his prison sentence and is subject to deportation.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the office’s firm commitment to utilize and partner with law enforcement agencies to prosecute illegal immigration cases. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 1.8.
Local woman admits to tax fraudRead the Press Release
HOUSTON – A woman has admitted she for made and subscribed to a false tax return, announced U.S. Attorney Ryan K. Patrick.
Vanessa Ben pleaded guilty today.
Ben willfully filed her U.S. Individual Income Tax return. However, upon signing the form attesting to its validity, she was aware it contained false information. She filed that return even though she knew she was not entitled to claim several items as stated, to include business income, taxable income, total tax and an income tax refund.
U.S. District Judge Hittner accepted the plea today and set sentencing for Feb. 3, 2020. At that time, Ben faces up to three years in federal prison and a possible $250,000 maximum fine.
She was permitted to remain on bond pending that hearing.
IRS - Criminal Investigation conducted the investigation. Assistant U.S. Attorney Rodolfo Ramirez is prosecuting the case.
Local men charged in drug conspiracy, shooting of federal task force officerRead the Press Release
DAYTON – A local man has been charged federally with assaulting a law enforcement officer engaged in a federal investigation with a deadly weapon. The charge is a result of a shooting that took place during the execution of a federal search warrant during the evening of Nov. 4. Two others have also been charged in a drug conspiracy.
According to an affidavit filed in support of the criminal complaint, Nathan S. Goddard Jr., 39, assaulted a federal officer using a deadly weapon. Goddard is also charged with conspiracy to possess with intent to distribute more than 400 grams of fentanyl, 500 grams or more of cocaine and marijuana.
Two others are charged with also conspiring to distribute the drugs. They include Cahke Cortner, 39, and Lionel Combs III, 40.
Between mid-July and late-October 2019, the DEA’s Dayton resident office conducted an investigation into a Dayton-based fentanyl operation.
As a result of that investigation, Goddard was named as an alleged source of supply of narcotics and a federal search warrant was subsequently authorized for 1454 Ruskin Road.
At approximately 6:50pm on Nov. 4, DEA and Dayton Police executed the search warrant. Officers entered the home and a task force officer descended the stairway to the basement of the residence. The officer immediately came under gunfire from the basement and was struck by the gunfire.
In the residence, authorities discovered two pistols with extended magazines, loaded with armor piercing ammunition.
Nine kilograms of suspected fentanyl were located in a duffel bag. A bag containing 50 to 60 pounds of marijuana was discovered on the floor of the basement, and approximately $11,000 in cash was spread out on a coffee table and more than $40,000 was in a duffel bag in a storage area under the stairs.
Assaulting a federal officer is punishable by up to 20 years in prison; using a firearm in doing so includes a mandatory additional 10 year prison term. The narcotics conspiracy in this case is punishable by a mandatory minimum 20 years and up to life in prison. Congress sets the minimum and maximum penalty ranges. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.
The government is seeking that the defendants be detained pending trial. Each of the three defendants is scheduled for a detention hearing at 1:30pm on Nov. 8 before U.S. Magistrate Judge Sharon L. Ovington.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Dayton Police Chief Richard S. Biehl; Keith Martin, Special Agent in Charge, Drug Enforcement Administration (DEA); Joseph M. Deters, Acting Special in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Jonathan McPherson, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); and Montgomery County Prosecutor Mathias H. Heck, Jr. announced the charges. Assistant United States Attorney Dominick S. Gerace is representing the United States in this case.
A criminal complaint merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
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Lewes Businessman Indicted for Federal Tax Evasion and Skimming Payroll TaxessRead the Press Release
WILMINGTON, Del. – David C. Weiss, United States Attorney for the District of Delaware, announced that Bruce Kevin Fleming of Lewes, Delaware, was indicted today in the District of Delaware on tax charges.
The indictment includes five counts of tax evasion, regarding the tax years 2012 through 2016. The counts charge that Fleming operated Kevin Fleming, Inc., and generated personal income, for which he did not file returns, and evaded the payment of taxes by diverting corporate funds to pay his personal expenses.
The indictment further charges that from on or about March 31, 2016, through September 30, 2017, Fleming conducted business through Kevin Fleming, Incorporated, a photo gallery in Lewes, Delaware and deducted and collected from the taxable wages of his employees federal income taxes and Federal Insurance Contributions Act taxes and then willfully failed to pay a total of $22,584 of those taxes over to the Internal Revenue Service.
Each of the offenses is punishable by a maximum penalty of 5 years’ incarceration, a $250,000 fine and restitution for unpaid taxes.
This case was investigated by IRS-Criminal Investigation and was prosecuted by Assistant U.S. Attorney Edmond Falgowski.
The charges in the Indictment are only allegations. The defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Leader of the Violent “Murdaland Mafia Piru” Bloods Gang Sentenced to Life in Federal Prison for Murder in Aid of Racketeering and Related ChargesRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake today sentenced Dante Bailey, a/k/a “Gutta,” “Almighty,” and “Wolf,” age 40, of Windsor Mill, Maryland, to life in federal prison. Bailey, the leader of Murdaland Mafia Piru (MMP), a subset of the Bloods gang, was convicted on April 30, 2019 after a six-week trial of murder in aid of racketeering, conspiracy to participate in a racketeering enterprise, conspiracy to distribute a kilogram or more of heroin and 280 grams or more of crack cocaine, possession of firearms by a previously convicted felon, and possession with intent to distribute heroin. The jury found that Bailey participated in the gang’s affairs through a pattern of racketeering activities that included murder, extortion, witness tampering, witness retaliation, conspiracy to distribute drugs, and drug distribution.
Yesterday, Judge Blake sentenced MMP member Jamal Lockley, a/k/a “T-Roy” and “Droid,” age 40, of Baltimore to 30 years in prison, followed by five years of supervised release. Lockley was also convicted after trial of the racketeering and drug conspiracies. The jury found that Lockley participated in MMP’s affairs through a pattern of racketeering activities that included distribution of drugs, conspiracy to distribute drugs, and witness tampering and retaliation.
The sentences were announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Commissioner Michael Harrison of the Baltimore Police Department; Chief Melissa R. Hyatt of the Baltimore County Police Department; Baltimore City State’s Attorney Marilyn J. Mosby; and Baltimore County State’s Attorney Scott Shellenberger.
“Dante Bailey led the violent and destructive MMP gang that brought terror and death to Baltimore and Baltimore County neighborhoods with guns and drugs. Now, Dante Bailey will spend the rest of his life in federal prison, where there are no suspended sentences and no parole—ever. And Jamal Lockley will be over 65 years old before he is released from prison. Due to their choices, most of the 25 defendants convicted in this case will spend between 14 and 30 years in federal prison,” said U.S. Attorney Robert K. Hur. “We are committed to working with our law enforcement partners to get guns out of the hands of drug dealers and off of our streets, in order to reduce violent crime in our neighborhoods. Over the course of this investigation, law enforcement seized 42 firearms and convicted 25 gang members. I urge anyone who’s thinking of following these defendants’ example: Please, put down the guns and save a life—maybe even your own.”
According to the evidence presented at the six-week trial, MMP, also known as the “Mob” or “Mobsters,” is a violent subset of the Bloods gang that operates in Maryland and elsewhere. Founded by Dante Bailey, MMP was modeled after the Italian Mafia. The MMP oath was called the “Omerta Code.” The gang was organized hierarchically, with Dante Bailey as “the Don” at the top and various “Bosses,” “Underbosses,” “Capos,” “Lieutenants,” and “Mobsters” underneath. MMP gang paperwork laid out certain rules of conduct by which members were governed, including that “retaliation is a must,” “[w]hen at war fight like you are ready to die,” and “[w]henever we are forced to strike, our only option is to kill.” The most important rule was that “co-operation with authorities that lead[s] to incriminating others” was punishable by death. MMP members enhanced their status in the gang by carrying out acts of violence; for instance, members could earn a “lightning bolt” tattoo for “killing for the Mob.” Dante Bailey has multiple lightning bolt tattoos on his face.
MMP members operated street-level drug distribution shops in various locations in Northwest Baltimore City and neighboring Baltimore County, where they sold large volumes of heroin and crack cocaine, among other controlled substances. The gang’s drug shop in the 5200 block of Windsor Mill Road was particularly lucrative due to its close proximity to Interstate 70, and it frequently attracted drug customers driving from Western Maryland and neighboring states.
MMP members, including Bailey, used social media websites to assert the gang’s claim to particular drug territories, intimidate rival gangs and drug traffickers, enhance MMP’s status, and enhance members’ status within the gang. Bailey posted rap videos under the stage name “Gutta Almighty,” in which he and other members of MMP flaunted actual firearms, and threatened to kill those who stood in the way of the gang.
The evidence proved that Bailey ordered and committed numerous murders in order to retaliate against rivals, impose discipline within the gang, and eliminate potential witnesses against the gang. He distributed large volumes of heroin and crack cocaine in the gang’s territories in Northwest Baltimore. After he was arrested, he continued to conduct the gang’s affairs from behind bars, ordering hits on rivals and witnesses, and plotting various ways to obstruct justice.
For example, on October 15, 2012, Bailey directed another MMP member to murder Victim 1 because Victim 1 was believed to be cooperating with law enforcement. That MMP member shot Victim 1 multiple times in the head and torso with a .45-caliber firearm outside the crowded Mirage Nightclub in downtown Baltimore. A closed-circuit television camera captured the shooting, and showed Bailey arriving at the club with the shooter and other MMP members, one of whom was wearing a shirt that said “MOBB SQUAD.” Bailey recounted the events surrounding the attempted murder of Victim 1 in a semi-autobiographical screenplay that investigators recovered from his residence in 2016. The screenplay included a scene in which Bailey learned that Victim 1 was “a rat” and a scene in which Victim 1 “gets hit” at “Club Mirage.”
In November 2012, Bailey ordered another MMP member to murder Antoine Ellis because Ellis had allegedly shown disloyalty to the gang. On Thanksgiving Day, that MMP member shot Ellis to death in a baseball field in the 5200 block of Windsor Mill Road. A few hours before the murder, the shooter had posted a comment to his Facebook profile that said: “198 n risen”—a reference to that year’s murder tally in Baltimore City, which he was about to increase by one.
On February 12, 2015, Dante Bailey murdered James Edwards for showing disloyalty to the gang. Bailey shot Edwards to death in the 300 block of Collins Avenue, using the same gun he had used to shoot at rivals in the 5200 block of Windsor Mill Road three nights earlier.
On April 28, 2016, Bailey armed himself and went looking to retaliate against members of a rival drug organization they believed were responsible for killing an MMP member. Jamal Lockley drove Bailey to the rival drug organization’s territory, where Bailey observed Anthony Hornes, whom he suspected—wrongly—had been involved in the MMP member’s murder. Bailey shot Hornes in the head, killing him. Lockley was the getaway driver.
In September 2017, while in pretrial custody, Dante Bailey caused a hit letter to be mailed to a co-conspirator that directed the murder of a witness against the gang, and included the witness’s address. ATF Special Agents arrested the co-conspirator while in possession of the hit letter as well as a recently purchased firearm.
The evidence showed that Lockley worked in concert with other MMP members to distribute heroin and crack cocaine in MMP’s territory in the area around Windsor Mill Road and Forest Park Avenue, and to avoid detection by law enforcement. He distributed heroin that caused a young woman to overdose and nearly lose her life, and he continued to deal drugs after learning of the overdose. He was the getaway driver for a retaliatory gang murder committed by Dante Bailey. He discussed retaliating against a rival of the gang with another MMP member and he conspired with Bailey to kill a witness against the gang by sending him to an MMP hitman.
Twenty-five defendants have been convicted in the case and twenty-four defendants, including Bailey and Lockley, have been sentenced, with most receiving between 14 and 30 years in federal prison. The final defendant is awaiting trial.
This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
United States Attorney Robert K. Hur praised the ATF, the Baltimore City and Baltimore County Police Departments, and the Baltimore City and Baltimore County State’s Attorney’s Offices for their work in the investigation and prosecution. Mr. Hur thanked Assistant United States Attorneys Christina Hoffman and Lauren E. Perry, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
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Law Enforcement Officers Join Students for A Day of LearningRead the Press Release
BLAST (Building Lasting Relationships Between Police and Community) Program
Brings Law Enforcement and Communities Together
TALLAHASSEE, FLORIDA – Four of the region’s top law enforcement officials will speak with students at Rickards High School this Wednesday, November 6, as part of the police- community BLAST Program.
United States Attorney Lawrence Keefe, Leon County Sheriff Walt McNeil, Tallahassee Police Chief
Steve Outlaw, and State Attorney Jack Campbell all will participate in the BLAST event that offers students an opportunity to meet representatives of the criminal justice community to ask questions, share their perceptions of law enforcement, and positively interact in a familiar setting.During the four-hour program at Rickards, law enforcement officers will provide students with their perspective on responding to dangerous or uncertain circumstances and the importance of remaining calm and following the officers’ directions in these situations. Members of the media are welcome to attend and photograph/video most demonstrations of the BLAST (Building Lasting Relationships
Between Police and Community) Program demonstrations.“This laudable program encourages productive interactions between citizens and officers to improve our community,” said Lawrence Keefe, United States Attorney for the Northern District of Florida, who will be one of the participants in the Tallahassee program. “Public safety is significantly enhanced when residents and law enforcement work as partners, and the BLAST Program is an excellent way to replace misgivings and apprehension with familiarity and trust.”
Agencies participating in the program include the ATF, DEA, FBI, United States Marshals Service, United States Secret Service, the Leon County Sheriff’s Office, the Tallahassee Police
Department, and the Florida Highway Patrol.Event: BLAST Program
Location: James S. Rickards High School 3013 Jim Lee Road Tallahassee, FL 32301
Date: Wednesday, November 6, 2019
Time: 9:15 am – 1:30 pm EST
Media: Please RSVP to [email protected] if you plan to attend.
The BLAST Program schedule will include the following discussion sessions, during which students will have a chance to participate in role-play with law enforcement officers. (Students with media permissions will be identified.)
• Federal Crimes Scenario: Students will evaluate video scenarios and learn about each phase of a federal criminal case, including investigation, prosecution, and sentencing. This session is open to the media, and videography and photography are permitted.
• Domestic Violence Response / K-9 Demonstration: Students will participate in a scenario in which law enforcement officers respond to a domestic disturbance. Discussion includes the challenges officers’ face, rights of witnesses and suspects, and benefits of providing information to law enforcement.
This session is open to the media, and videography and photography are permitted.• Traffic Stop Simulation: Students and officers engage, alternating the roles of civilians and officers, conducting a traffic stop. Discussion includes de-escalation and the uncertainty officers and vehicle occupants face during a traffic stop.
This session is open to the media, and videography and photography are permitted.• Use of Force: Facilitators and students will discuss when law enforcement officers may use force and an officer’s reaction time when confronted with a life-threatening situation. This session is closed to the media. Reporters may try the simulator equipment after the event ends.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern
District of Florida website. For more information about the United States Attorney’s Office, Florida, visit http://www.justice.gov/usao/fln/index.html.Laredo woman admits role in smuggling cocaineRead the Press Release
LAREDO, Texas – A 40-year-old Laredoan faces up to life in prison for importing a large amount of cocaine via the Gateway to the Americas International Bridge, announced U.S. Attorney Ryan K. Patrick.
Yuriria Verastegui attempted to enter the United States July 24 driving a Ford SUV. Authorities noticed tampering with its interior quarter panels, lifted a tray to access them and found 16 bundles of cocaine.
The drugs weighed a total of approximately 16 kilograms with a value of $512,000.
Verastegui pleaded guilty to conspiracy to possess with the intent to distribute cocaine, admitting she knew there were narcotics in her vehicle and expected to be paid $9,600 for transporting them.
U.S. District Court Judge Marina Garcia Marmolejo will impose sentencing Feb. 24, 2020. At that time, Verastegui faces a minimum of 10 years and up to life imprisonment as well as a possible $10 million maximum fine. She has been in custody since her arrest where she will remain pending that hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with assistance from Customs and Border Protection. Assistant U.S. Attorney Anthony J. Evans is prosecuting the cases.
Leader of Bloods Gang Pleads Guilty to Assaulting 15-Year Old Boy and Carving Gang Name into Boy’s ChestRead the Press Release
Doniel A. Heard, 37 of Canton, pleaded guilty on October 29, 2019, to assault with a dangerous weapon in aid of racketeering, United States Attorney Matthew Schneider announced.
Schneider was joined in the announcement by Special Agent in Charge Steven M. D'Antuono of the Federal Bureau of Investigation, Detroit Division (FBI), John C. Mullaly, Chief of Police of the Genesee Township Police Department, and David S. Leyton, Genesee County Prosecuting Attorney.
Heard entered the guilty plea before United States District Court Judge Linda V. Parker.
In his guilty plea, Heard admitted that at the time of the assault he was the leader of a Michigan set of the national Bloods street gang. Believing that the 15-year old victim had disrespected two fellow gang members, Heard and three other gang members beat and robbed the boy. After the beating, the other gang members held the boy down while Heard used a large knife to carve the name of the local Bloods set, “MOB 662,” into the boy’s chest. The 15-year old victim suffered permanent bodily injury as a result of the assault.
“This was a vicious attack on a 15-year old boy by a violent street gang. This type of senseless violence will not be tolerated. We will continue to work with our federal, state, and local law enforcement partners to bring the full force of federal law upon gang members who seek to destroy our communities with violence and intimidation,” stated United States Attorney Schneider.
“The reason for this callous and violent crime was as senseless as the brutality of the assault itself,” said FBI Special Agent in Charge D'Antuono. “This investigation sends a clear message that the FBI and our law enforcement partners throughout Michigan will not stand by as gangs attempt to terrorize our community, and that those involved in violent gang activity will be brought to justice.”
Heard faces up to 20 years in federal prison. Sentencing has been scheduled for March 4, 2020 before Judge Parker in the United States District Court in Flint. Two other gang members who participated in the assault are also scheduled to be sentenced that day. Talasha Willis, a gang member who also participated in the assault, was sentenced in May of this year to 100 months in federal prison.
The case was investigated by the Genesee Township Police Department and special agents of the FBI, with assistance from the Genesee County Prosecutor’s Office. The case is being prosecuted by Assistant United States Attorneys Chris Rawsthorne, Ann Nee, and Anthony Vance.
Justice Department announces Procurement Collusion Strike Force: a coordinated national response to combat antitrust crimes and related schemes in government procurement, grant and program fundingRead the Press Release
ATLANTA - The Justice Department announced the formation of the new Procurement Collusion Strike Force (PCSF) focusing on deterring, detecting, investigating and prosecuting antitrust crimes, such as bid-rigging conspiracies and related fraudulent schemes, which undermine competition in government procurement, grant and program funding.
Deputy Attorney General Jeffrey A. Rosen expressed the Department’s support for the initiative. “To protect taxpayer dollars, the Justice Department is doing its part to eliminate anticompetitive collusion, waste and abuse from government procurement,” said Deputy Attorney General Rosen. “To ensure taxpayers the full benefits of competitive bidding, experienced investigators and prosecutors with the necessary expertise will partner in this Strike Force to deter, detect and prosecute antitrust crimes and related schemes in government procurements.”
“We will remain laser-focused on rooting out the fraud, waste, and abuse that can plague the procurement process at all levels of government,” says U.S. Attorney Byung J. “BJay” Pak. “By providing this additional training and outreach to those involved in the process, we believe that we can rapidly begin to remove opportunities for corruption.”
“The investigation and prosecution of individuals and organizations that cheat, collude and seek to undermine the integrity of government procurement are priorities for this administration,” said Assistant Attorney General Delrahim. “The PCSF will train and educate procurement officials nationwide to recognize and report suspicious conduct in procurement, grant and program funding processes. We will aggressively investigate and prosecute those who violate our antitrust laws to cheat the American taxpayer.”
At a press conference at the Department of Justice in Washington, D.C., Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division explained that the PCSF will be an interagency partnership consisting of prosecutors from the Antitrust Division, prosecutors from 13 U.S. Attorneys’ Offices, and investigators from the FBI, the Department of Defense Office of Inspector General, the U.S. Postal Service Office of Inspector General and other partner federal Offices of Inspector General.
The PCSF will lead a national effort to protect taxpayer-funded projects at the federal, state and local level from antitrust violations and related crimes, starting with a focus on 13 districts throughout the country. Prosecutors from the Antitrust Division and the participating U.S. Attorneys’ Offices, along with agents from the FBI and partner Offices of Inspector General, will work together to conduct outreach and training for procurement officials and government contractors on antitrust risks in the procurement process. In addition, the partnered prosecutors and investigators will jointly investigate and prosecute cases that result from their targeted outreach efforts.
“Inspectors General throughout the federal government have a long history of rooting out waste, fraud and abuse in government contracting,” said Michael E. Horowitz, Inspector General of the Department of Justice and Chair of the Council of Inspectors General on Integrity and Efficiency. “We welcome the opportunity to contribute our expertise to the important work of the Procurement Collusion Strike Force. We look forward to partnering with the other participating members of the law enforcement community to hold accountable actors who seek to defraud the government and cheat taxpayers.”
“The FBI has a long history of working with our interagency and law enforcement partners to investigate public procurement crimes and ensure justice,” said FBI Criminal Intelligence Division Assistant Director Terry Wade. “We are committed to working closely with our DOJ colleagues and our federal, state and local partners as we continue to successfully combat these crimes.”
“Individuals and companies that participate in procurement collusion cause significant harm and losses to the Department of Defense and to American taxpayers,” said Glenn A. Fine, Principal Deputy Inspector General, Performing the Duties of the Inspector General, of the Department of Defense Office of Inspector General. “The DoD Office of Inspector General, and our criminal investigative component, the Defense Criminal Investigative Service, are committed to aggressively investigating those individuals and companies who would attempt to compromise government procurement processes.”
The Antitrust Division and its law enforcement partners have a history of prosecuting criminal antitrust conspiracies that take advantage of government contracts. In late 2018 and early 2019, for instance, five South Korean oil companies agreed to plead guilty for their involvement in a decade-long bid-rigging conspiracy that targeted contracts to supply fuel to U.S. military bases in South Korea. The Antitrust Division also indicted seven individuals for conspiring to rig bids and to defraud the government, and one executive was also charged with obstruction of justice. In total, the companies have agreed to pay $156 million in criminal fines and over $205 million in separate civil settlements. This year, the Justice Department, in partnership with the GSA Office of Inspector General, also indicted individuals for involvement in rigging bids submitted to the GSA.
The PCSF’s 13 U.S. Attorney partners include:
- Byung J. “BJay” Pak, Northern District of Georgia
- Nicola T. Hanna, Central District of California
- McGregor Scott, Eastern District of California
- Jason R. Dunn, District of Colorado
- Jessie K. Liu, District of Columbia
- Ariana Fajardo Orshan, Southern District of Florida
- John R. Lausch, Jr., Northern District of Illinois
- Matthew Schneider, Eastern District of Michigan
- Geoffrey S. Berman, Southern District of New York
- David M. DeVillers, Southern District of Ohio
- William M. McSwain, Eastern District of Pennsylvania
- Erin Nealy Cox, Northern District of Texas
- G. Zachary Terwilliger, Eastern District of Virginia
The PCSF’s investigative partners include:
- Department of Defense Office of Inspector General
- Federal Bureau of Investigation
- General Services Administration Office of Inspector General
- Department of Justice Office of the Inspector General
- U.S. Postal Service Office of Inspector General
The PCSF has launched a publicly available website at https://www.justice.gov/procurement-collusion-strike-force, where government procurement officials and members of the public can review information about the federal antitrust laws and training programs, and report suspected criminal activity affecting public procurement.
Individuals and companies are encouraged to contact the PCSF if they have information concerning anticompetitive conduct involving federal taxpayer dollars by emailing [email protected].
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Justice Department Announces Strike Force to Combat Crimes in Government Procurement, Grant and Program FundingRead the Press Release
WASHINGTON - The Justice Department announced today the formation of the new Procurement Collusion Strike Force (PCSF) focusing on deterring, detecting, investigating and prosecuting antitrust crimes, such as bid-rigging conspiracies and related fraudulent schemes, which undermine competition in government procurement, grant and program funding.
The PCSF will be an interagency partnership consisting of prosecutors from the Antitrust Division, Assistant U.S. Attorneys from the Northern District of Illinois and 12 other U.S. Attorneys’ Offices, and investigators from the FBI, Department of Defense Office of Inspector General, U.S. Postal Service Office of Inspector General and other federal Offices of Inspector General.
“Government procurement is vulnerable to corruption and too often results in inferior goods and services at a higher cost to taxpayers,” said John R. Lausch, Jr., United States Attorney for the Northern District of Illinois. “We will work aggressively with the Antitrust Division and our investigative partners to hold accountable individuals and companies who seek to corrupt the procurement process.”
“To protect taxpayer dollars, the Justice Department is doing its part to eliminate anticompetitive collusion, waste and abuse from government procurement,” said Deputy Attorney General Jeffrey A. Rosen. “To ensure taxpayers the full benefits of competitive bidding, experienced investigators and prosecutors with the necessary expertise will partner in this Strike Force to deter, detect and prosecute antitrust crimes and related schemes in government procurements.”
“The investigation and prosecution of individuals and organizations that cheat, collude and seek to undermine the integrity of government procurement are priorities for this administration,” said Assistant Attorney General Makan Delrahim of the Antitrust Division. “The PCSF will train and educate procurement officials nationwide to recognize and report suspicious conduct in procurement, grant and program funding processes. We will aggressively investigate and prosecute those who violate our antitrust laws to cheat the American taxpayer.”
The PCSF will lead a national effort to protect taxpayer-funded projects at the federal, state and local level from antitrust violations and related crimes, starting with a focus on 13 districts throughout the country. Prosecutors from the Antitrust Division and the participating U.S. Attorneys’ Offices, along with agents from the FBI and partner Offices of Inspector General, will work together to conduct outreach and training for procurement officials and government contractors on antitrust risks in the procurement process. In addition, the partnered prosecutors and investigators will jointly investigate and prosecute cases that result from their targeted outreach efforts.
The Antitrust Division and its law enforcement partners have a history of prosecuting criminal antitrust conspiracies that take advantage of government contracts. In late 2018 and early 2019, for instance, five South Korean oil companies agreed to plead guilty for their involvement in a decade-long bid-rigging conspiracy that targeted contracts to supply fuel to U.S. military bases in South Korea. The Antitrust Division also indicted seven individuals for conspiring to rig bids and to defraud the government, and one executive was also charged with obstruction of justice. In total, the companies have agreed to pay $156 million in criminal fines and over $205 million in separate civil settlements. This year, the Justice Department, in partnership with the U.S. General Services Administration Office of Inspector General, also indicted individuals for involvement in rigging bids submitted to the GSA.
In addition to the Northern District of Illinois, the PCSF’s other U.S. Attorney partners include:
-Central District of California
-Eastern District of California
-District of Colorado
-District of Columbia
-Southern District of Florida
-Northern District of Georgia
-Eastern District of Michigan
-Southern District of New York
-Southern District of Ohio
-Eastern District of Pennsylvania
-Northern District of Texas
-Eastern District of Virginia
The PCSF’s investigative partners include:
-Defense Department Office of Inspector General
-FBI
-GSA Office of Inspector General
-Department of Justice Office of Inspector General
-Postal Service Office of Inspector General
The PCSF has launched a publicly available website where government procurement officials and members of the public can review information about the federal antitrust laws and training programs, and report suspected criminal activity affecting public procurement. Individuals and companies are encouraged to email the PCSF at [email protected] to report anti-competitive conduct involving federal taxpayer dollars.
Justice Department Announces Procurement Collusion Strike Force: a Coordinated National Response to Combat Antitrust Crimes and Related Schemes in Government Procurement, Grant and Program FundingRead the Press Release
The Justice Department announced today the formation of the new Procurement Collusion Strike Force (PCSF) focusing on deterring, detecting, investigating and prosecuting antitrust crimes, such as bid-rigging conspiracies and related fraudulent schemes, which undermine competition in government procurement, grant and program funding.
At a press conference today at the Department of Justice in Washington, D.C., Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division explained that the PCSF will be an interagency partnership consisting of prosecutors from the Antitrust Division, prosecutors from 13 U.S. Attorneys’ Offices, and investigators from the FBI, the Department of Defense Office of Inspector General, the U.S. Postal Service Office of Inspector General and other partner federal Offices of Inspector General.
Deputy Attorney General Jeffrey A. Rosen expressed the Department’s support for the initiative. “To protect taxpayer dollars, the Justice Department is doing its part to eliminate anticompetitive collusion, waste and abuse from government procurement,” said Deputy Attorney General Rosen. “To ensure taxpayers the full benefits of competitive bidding, experienced investigators and prosecutors with the necessary expertise will partner in this Strike Force to deter, detect and prosecute antitrust crimes and related schemes in government procurements.”
“The investigation and prosecution of individuals and organizations that cheat, collude and seek to undermine the integrity of government procurement are priorities for this administration,” said Assistant Attorney General Delrahim. “The PCSF will train and educate procurement officials nationwide to recognize and report suspicious conduct in procurement, grant and program funding processes. We will aggressively investigate and prosecute those who violate our antitrust laws to cheat the American taxpayer.”
The PCSF will lead a national effort to protect taxpayer-funded projects at the federal, state and local level from antitrust violations and related crimes, starting with a focus on 13 districts throughout the country. Prosecutors from the Antitrust Division and the participating U.S. Attorneys’ Offices, along with agents from the FBI and partner Offices of Inspector General, will work together to conduct outreach and training for procurement officials and government contractors on antitrust risks in the procurement process. In addition, the partnered prosecutors and investigators will jointly investigate and prosecute cases that result from their targeted outreach efforts.
“Inspectors General throughout the federal government have a long history of rooting out waste, fraud and abuse in government contracting,” said Michael E. Horowitz, Inspector General of the Department of Justice and Chair of the Council of Inspectors General on Integrity and Efficiency. “We welcome the opportunity to contribute our expertise to the important work of the Procurement Collusion Strike Force. We look forward to partnering with the other participating members of the law enforcement community to hold accountable actors who seek to defraud the government and cheat taxpayers.”
“The FBI has a long history of working with our interagency and law enforcement partners to investigate public procurement crimes and ensure justice,” said FBI Criminal Investigative Division Assistant Director Terry Wade. “We are committed to working closely with our DOJ colleagues and our federal, state and local partners as we continue to successfully combat these crimes.”
“Individuals and companies that participate in procurement collusion cause significant harm and losses to the Department of Defense and to American taxpayers,” said Glenn A. Fine, Principal Deputy Inspector General, Performing the Duties of the Inspector General, of the Department of Defense Office of Inspector General. “The DoD Office of Inspector General, and our criminal investigative component, the Defense Criminal Investigative Service, are committed to aggressively investigating those individuals and companies who would attempt to compromise government procurement processes.”
The Antitrust Division and its law enforcement partners have a history of prosecuting criminal antitrust conspiracies that take advantage of government contracts. In late 2018 and early 2019, for instance, five South Korean oil companies agreed to plead guilty for their involvement in a decade-long bid-rigging conspiracy that targeted contracts to supply fuel to U.S. military bases in South Korea. The Antitrust Division also indicted seven individuals for conspiring to rig bids and to defraud the government, and one executive was also charged with obstruction of justice. In total, the companies have agreed to pay $156 million in criminal fines and over $205 million in separate civil settlements. This year, the Justice Department, in partnership with the GSA Office of Inspector General, also indicted individuals for involvement in rigging bids submitted to the GSA.
The PCSF’s 13 U.S. Attorney partners include:
- Nicola T. Hanna, Central District of California
- McGregor Scott, Eastern District of California
- Jason R. Dunn, District of Colorado
- Jessie K. Liu, District of Columbia
- Ariana Fajardo Orshan, Southern District of Florida
- Byung J. “BJay” Pak, Northern District of Georgia
- John R. Lausch, Jr., Northern District of Illinois
- Matthew Schneider, Eastern District of Michigan
- Geoffrey S. Berman, Southern District of New York
- David M. DeVillers, Southern District of Ohio
- William M. McSwain, Eastern District of Pennsylvania
- Erin Nealy Cox, Northern District of Texas
- G. Zachary Terwilliger, Eastern District of Virginia
The PCSF’s investigative partners include:
- Department of Defense Office of Inspector General
- Federal Bureau of Investigation
- General Services Administration Office of Inspector General
- Department of Justice Office of the Inspector General
- U.S. Postal Service Office of Inspector General
The PCSF has launched a publicly available website at https://www.justice.gov/procurement-collusion-strike-force, where government procurement officials and members of the public can review information about the federal antitrust laws and training programs, and report suspected criminal activity affecting public procurement.
Individuals and companies are encouraged to contact the PCSF if they have information concerning anticompetitive conduct involving federal taxpayer dollars by emailing [email protected].
Justice Department Announces Procurement Collusion Strike Force: A Coordinated National Response to Combat Antitrust Crimes and Related Schemes in Government Procurement, Grant and Program FundingRead the Press Release
WASHINGTON – The Justice Department announced today the formation of the new Procurement Collusion Strike Force (PCSF) focusing on deterring, detecting, investigating and prosecuting antitrust crimes, such as bid-rigging conspiracies and related fraudulent schemes, which undermine competition in government procurement, grant and program funding.
At a press conference today at the Department of Justice in Washington, D.C., Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division explained that the PCSF will be an interagency partnership consisting of prosecutors from the Antitrust Division, prosecutors from 13 U.S. Attorneys’ Offices, and investigators from the FBI, the Department of Defense Office of Inspector General, the U.S. Postal Service Office of Inspector General and other partner federal Offices of Inspector General.
Deputy Attorney General Jeffrey A. Rosen expressed the Department’s support for the initiative. “To protect taxpayer dollars, the Justice Department is doing its part to eliminate anticompetitive collusion, waste and abuse from government procurement,” said Deputy Attorney General Rosen. “To ensure taxpayers the full benefits of competitive bidding, experienced investigators and prosecutors with the necessary expertise will partner in this Strike Force to deter, detect and prosecute antitrust crimes and related schemes in government procurements.”
"The investigation and prosecution of individuals and organizations that cheat, collude and seek to undermine the integrity of government procurement are priorities for this administration,” said Assistant Attorney General Delrahim. “The PCSF will train and educate procurement officials nationwide to recognize and report suspicious conduct in procurement, grant and program funding processes. We will aggressively investigate and prosecute those who violate our antitrust laws to cheat the American taxpayer.”
The PCSF will lead a national effort to protect taxpayer-funded projects at the federal, state and local level from antitrust violations and related crimes, starting with a focus on 13 districts throughout the country. Prosecutors from the Antitrust Division and the participating U.S. Attorneys’ Offices, along with agents from the FBI and partner Offices of Inspector General, will work together to conduct outreach and training for procurement officials and government contractors on antitrust risks in the procurement process. In addition, the partnered prosecutors and investigators will jointly investigate and prosecute cases that result from their targeted outreach efforts.
“Inspectors General throughout the federal government have a long history of rooting out waste, fraud and abuse in government contracting,” said Michael E. Horowitz, Inspector General of the Department of Justice and Chair of the Council of Inspectors General on Integrity and Efficiency. “We welcome the opportunity to contribute our expertise to the important work of the Procurement Collusion Strike Force. We look forward to partnering with the other participating members of the law enforcement community to hold accountable actors who seek to defraud the government and cheat taxpayers.”
“The FBI has a long history of working with our interagency and law enforcement partners to investigate public procurement crimes and ensure justice,” said FBI Criminal Intelligence Division Assistant Director Terry Wade. “We are committed to working closely with our DOJ colleagues and our federal, state and local partners as we continue to successfully combat these crimes.”
“Individuals and companies that participate in procurement collusion cause significant harm and losses to the Department of Defense and to American taxpayers,” said Glenn A. Fine, Principal Deputy Inspector General, Performing the Duties of the Inspector General, of the Department of Defense Office of Inspector General. “The DoD Office of Inspector General, and our criminal investigative component, the Defense Criminal Investigative Service, are committed to aggressively investigating those individuals and companies who would attempt to compromise government procurement processes.”
"When competitors in any given industry collude and conspire to rig bids, fix prices, or allocate markets—that is, commit criminal antitrust violations—they distort the free market and harm customers with high prices and lower quality goods and services," said Jessie K. Liu, U.S. Attorney for the District of Columbia. "We will continue to fight illegal collusion in government procurement to ensure that the taxpayer dollars are spent appropriately and efficiently."
The Antitrust Division and its law enforcement partners have a history of prosecuting criminal antitrust conspiracies that take advantage of government contracts. In late 2018 and early 2019, for instance, five South Korean oil companies agreed to plead guilty for their involvement in a decade-long bid-rigging conspiracy that targeted contracts to supply fuel to U.S. military bases in South Korea. The Antitrust Division also indicted seven individuals for conspiring to rig bids and to defraud the government, and one executive was also charged with obstruction of justice. In total, the companies have agreed to pay $156 million in criminal fines and over $205 million in separate civil settlements. This year, the Justice Department, in partnership with the GSA Office of Inspector General, also indicted individuals for involvement in rigging bids submitted to the GSA.
The PCSF’s 13 U.S. Attorney partners include:
- Nicola T. Hanna, Central District of California
- McGregor Scott, Eastern District of California
- Jason R. Dunn, District of Colorado
- Jessie K. Liu, District of Columbia
- Ariana Fajardo Orshan, Southern District of Florida
- Byung J. “BJay” Pak, Northern District of Georgia
- John R. Lausch, Jr., Northern District of Illinois
- Matthew Schneider, Eastern District of Michigan
- Geoffrey S. Berman, Southern District of New York
- David M. DeVillers, Southern District of Ohio
- William M. McSwain, Eastern District of Pennsylvania
- Erin Nealy Cox, Northern District of Texas
- G. Zachary Terwilliger, Eastern District of Virginia
The PCSF’s investigative partners include:
- Department of Defense Office of Inspector General
- Federal Bureau of Investigation
- General Services Administration Office of Inspector General
- Department of Justice Office of the Inspector General
- U.S. Postal Service Office of Inspector General
The PCSF has launched a publicly available website at https://www.justice.gov/procurement-collusion-strike-force, where government procurement officials and members of the public can review information about the federal antitrust laws and training programs, and report suspected criminal activity affecting public procurement.
Individuals and companies are encouraged to contact the PCSF if they have information concerning anticompetitive conduct involving federal taxpayer dollars by emailing [email protected].
Justice Department Announces Procurement Collusion Strike Force: A Coordinated National Response to Combat Antitrust Crimes and Related Schemes in Government Procurement, Grant and Program FundingRead the Press Release
U.S. Attorney’s Office for the Southern District of Florida Joins the Strike Force
The Justice Department announced today the formation of the new Procurement Collusion Strike Force (PCSF) focusing on deterring, detecting, investigating and prosecuting antitrust crimes, such as bid-rigging conspiracies and related fraudulent schemes, which undermine competition in government procurement, grant and program funding.
At a press conference today at the Department of Justice in Washington, D.C., Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division explained that the PCSF will be an interagency partnership consisting of prosecutors from the Antitrust Division, prosecutors from 13 U.S. Attorneys’ Offices, including the U.S. Attorney’s Office for the Southern District of Florida, and investigators from the FBI, the Department of Defense Office of Inspector General, the U.S. Postal Service Office of Inspector General and other partner federal Offices of Inspector General.
“The Southern District of Florida is proud to be part of this targeted, national effort to combat antitrust crimes,” stated U.S. Attorney Ariana Fajardo Orshan. “Our South Florida taxpayers deserve to have their money safeguarded from criminal schemes and government contracts awarded on a level playing field. We implore the public to report suspected price fixing, bid rigging, or other forms of collusion or fraud affecting government procurement of goods or services.”
Deputy Attorney General Jeffrey A. Rosen expressed the Department’s support for the initiative. “To protect taxpayer dollars, the Justice Department is doing its part to eliminate anticompetitive collusion, waste and abuse from government procurement,” said Deputy Attorney General Rosen. “To ensure taxpayers the full benefits of competitive bidding, experienced investigators and prosecutors with the necessary expertise will partner in this Strike Force to deter, detect and prosecute antitrust crimes and related schemes in government procurements.”
“The investigation and prosecution of individuals and organizations that cheat, collude and seek to undermine the integrity of government procurement are priorities for this administration,” said Assistant Attorney General Delrahim. “The PCSF will train and educate procurement officials nationwide to recognize and report suspicious conduct in procurement, grant and program funding processes. We will aggressively investigate and prosecute those who violate our antitrust laws to cheat the American taxpayer.”
The PCSF will lead a national effort to protect taxpayer-funded projects at the federal, state and local level from antitrust violations and related crimes, starting with a focus on 13 districts throughout the country. Prosecutors from the Antitrust Division and the participating U.S. Attorneys’ Offices, along with agents from the FBI and partner Offices of Inspector General, will work together to conduct outreach and training for procurement officials and government contractors on antitrust risks in the procurement process. In addition, the partnered prosecutors and investigators will jointly investigate and prosecute cases that result from their targeted outreach efforts.
“Inspectors General throughout the federal government have a long history of rooting out waste, fraud and abuse in government contracting,” said Michael E. Horowitz, Inspector General of the Department of Justice and Chair of the Council of Inspectors General on Integrity and Efficiency. “We welcome the opportunity to contribute our expertise to the important work of the Procurement Collusion Strike Force. We look forward to partnering with the other participating members of the law enforcement community to hold accountable actors who seek to defraud the government and cheat taxpayers.”
“The FBI has a long history of working with our interagency and law enforcement partners to investigate public procurement crimes and ensure justice,” said FBI Criminal Intelligence Division Assistant Director Terry Wade. “We are committed to working closely with our DOJ colleagues and our federal, state and local partners as we continue to successfully combat these crimes.”
“Individuals and companies that participate in procurement collusion cause significant harm and losses to the Department of Defense and to American taxpayers,” said Glenn A. Fine, Principal Deputy Inspector General, Performing the Duties of the Inspector General, of the Department of Defense Office of Inspector General. “The DoD Office of Inspector General, and our criminal investigative component, the Defense Criminal Investigative Service, are committed to aggressively investigating those individuals and companies who would attempt to compromise government procurement processes.”
The Antitrust Division and its law enforcement partners have a history of prosecuting criminal antitrust conspiracies that take advantage of government contracts. In late 2018 and early 2019, for instance, five South Korean oil companies agreed to plead guilty for their involvement in a decade-long bid-rigging conspiracy that targeted contracts to supply fuel to U.S. military bases in South Korea. The Antitrust Division also indicted seven individuals for conspiring to rig bids and to defraud the government, and one executive was also charged with obstruction of justice. In total, the companies have agreed to pay $156 million in criminal fines and over $205 million in separate civil settlements. This year, the Justice Department, in partnership with the GSA Office of Inspector General, also indicted individuals for involvement in rigging bids submitted to the GSA.
The PCSF’s 13 U.S. Attorney partners include:
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Nicola T. Hanna, Central District of California
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McGregor Scott, Eastern District of California
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Jason R. Dunn, District of Colorado
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Jessie K. Liu, District of Columbia
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Ariana Fajardo Orshan, Southern District of Florida
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Byung J. “BJay” Pak, Northern District of Georgia
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John R. Lausch, Jr., Northern District of Illinois
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Matthew Schneider, Eastern District of Michigan
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Geoffrey S. Berman, Southern District of New York
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David M. DeVillers, Southern District of Ohio
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William M. McSwain, Eastern District of Pennsylvania
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Erin Nealy Cox, Northern District of Texas
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G. Zachary Terwilliger, Eastern District of Virginia
The PCSF’s investigative partners include:
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Department of Defense Office of Inspector General
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Federal Bureau of Investigation
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General Services Administration Office of Inspector General
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Department of Justice Office of Inspector General
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U.S. Postal Service Office of Inspector General
The PCSF has launched a publicly available website at https://www.justice.gov/procurement-collusion-strike-force, where government procurement officials and members of the public can review information about the federal antitrust laws and training programs, and report suspected criminal activity affecting public procurement.
Individuals and companies are encouraged to contact the PCSF if they have information concerning anticompetitive conduct involving federal taxpayer dollars by emailing [email protected].
-
Justice Department Announces Procurement Collusion Strike Force: A Coordinated National Response to Combat Antitrust Crimes & Related Schemes in Government Procurement, Grant, & Program FundingRead the Press Release
The Justice Department announced today the formation of the new Procurement Collusion Strike Force (PCSF) focusing on deterring, detecting, investigating and prosecuting antitrust crimes, such as bid-rigging conspiracies and related fraudulent schemes, which undermine competition in government procurement, grant and program funding.
At a press conference today at the Department of Justice in Washington, D.C., Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division explained that the PCSF will be an interagency partnership consisting of prosecutors from the Antitrust Division, prosecutors from 13 U.S. Attorneys’ Offices, including the U.S. Attorney’s Office for the Northern District of Texas, and investigators from the FBI, the Department of Defense Office of Inspector General, the U.S. Postal Service Office of Inspector General and other partner federal Offices of Inspector General.
Deputy Attorney General Jeffrey A. Rosen expressed the Department’s support for the initiative. “To protect taxpayer dollars, the Justice Department is doing its part to eliminate anticompetitive collusion, waste and abuse from government procurement,” said Deputy Attorney General Rosen. “To ensure taxpayers the full benefits of competitive bidding, experienced investigators and prosecutors with the necessary expertise will partner in this Strike Force to deter, detect and prosecute antitrust crimes and related schemes in government procurements.”
“The investigation and prosecution of individuals and organizations that cheat, collude and seek to undermine the integrity of government procurement are priorities for this administration,” said Assistant Attorney General Makan Delrahim. “The PCSF will train and educate procurement officials nationwide to recognize and report suspicious conduct in procurement, grant and program funding processes. We will aggressively investigate and prosecute those who violate our antitrust laws to cheat the American taxpayer.”
“Protecting the American taxpayer is a vital function of the Justice Department,” said U.S. Attorney for the Northern District of Texas Erin Nealy Cox. “The Strike Force is committed to ensuring that the procurement process is competitive and fair.”
The PCSF will lead a national effort to protect taxpayer-funded projects at the federal, state and local level from antitrust violations and related crimes, starting with a focus on 13 districts throughout the country. Prosecutors from the Antitrust Division and the participating U.S. Attorneys’ Offices, along with agents from the FBI and partner Offices of Inspector General, will work together to conduct outreach and training for procurement officials and government contractors on antitrust risks in the procurement process. In addition, the partnered prosecutors and investigators will jointly investigate and prosecute cases that result from their targeted outreach efforts.
“Inspectors General throughout the federal government have a long history of rooting out waste, fraud and abuse in government contracting,” said Michael E. Horowitz, Inspector General of the Department of Justice and Chair of the Council of Inspectors General on Integrity and Efficiency. “We welcome the opportunity to contribute our expertise to the important work of the Procurement Collusion Strike Force. We look forward to partnering with the other participating members of the law enforcement community to hold accountable actors who seek to defraud the government and cheat taxpayers.”
“The FBI has a long history of working with our interagency and law enforcement partners to investigate public procurement crimes and ensure justice,” said FBI Criminal Intelligence Division Assistant Director Terry Wade. “We are committed to working closely with our DOJ colleagues and our federal, state and local partners as we continue to successfully combat these crimes.”
“Individuals and companies that participate in procurement collusion cause significant harm and losses to the Department of Defense and to American taxpayers,” said Glenn A. Fine, Principal Deputy Inspector General of the Department of Defense Office of Inspector General. “The DoD Office of Inspector General, and our criminal investigative component, the Defense Criminal Investigative Service, are committed to aggressively investigating those individuals and companies who would attempt to compromise government procurement processes.”
The Antitrust Division and its law enforcement partners have a history of prosecuting criminal antitrust conspiracies that take advantage of government contracts. In late 2018 and early 2019, for instance, five South Korean oil companies agreed to plead guilty for their involvement in a decade-long bid-rigging conspiracy that targeted contracts to supply fuel to U.S. military bases in South Korea. The Antitrust Division also indicted seven individuals for conspiring to rig bids and to defraud the government, and one executive was also charged with obstruction of justice. In total, the companies have agreed to pay $156 million in criminal fines and over $205 million in separate civil settlements. This year, the Justice Department, in partnership with the GSA Office of Inspector General, also indicted individuals for involvement in rigging bids submitted to the GSA.
The PCSF’s 13 U.S. Attorney partners include:
- Nicola T. Hanna, Central District of California
- McGregor Scott, Eastern District of California
- Jason R. Dunn, District of Colorado
- Jessie K. Liu, District of Columbia
- Ariana Fajardo Orshan, Southern District of Florida
- Byung J. “BJay” Pak, Northern District of Georgia
- John R. Lausch, Jr., Northern District of Illinois
- Matthew Schneider, Eastern District of Michigan
- Geoffrey S. Berman, Southern District of New York
- David M. DeVillers, Southern District of Ohio
- William M. McSwain, Eastern District of Pennsylvania
- Erin Nealy Cox, Northern District of Texas
- G. Zachary Terwilliger, Eastern District of VirginiaThe PCSF’s investigative partners include:
- Department of Defense Office of Inspector General
- Federal Bureau of Investigation
- General Services Administration Office of Inspector General
- Department of Justice Office of the Inspector General
- U.S. Postal Service Office of Inspector GeneralThe PCSF has launched a publicly available website at https://www.justice.gov/procurement-collusion-strike-force, where government procurement officials and members of the public can review information about the federal antitrust laws and training programs, and report suspected criminal activity affecting public procurement.
Individuals and companies are encouraged to contact the PCSF if they have information concerning anticompetitive conduct involving federal taxpayer dollars by emailing [email protected].
Justice Department Announces Procurement Collusion Strike Force: A Coordinated National Response to Combat Antitrust Crimes and Related Schemes in Government Procurement, Grant and Program FundingRead the Press Release
WASHINGTON - The Justice Department announced today the formation of the new Procurement Collusion Strike Force (PCSF) focusing on deterring, detecting, investigating and prosecuting antitrust crimes, such as bid-rigging conspiracies and related fraudulent schemes, which undermine competition in government procurement, grant and program funding.
At a press conference today at the Department of Justice in Washington, D.C., Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division explained that the PCSF will be an interagency partnership consisting of prosecutors from the Antitrust Division, prosecutors from 13 U.S. Attorneys’ Offices, and investigators from the FBI, the Department of Defense Office of Inspector General, the U.S. Postal Service Office of Inspector General and other partner federal Offices of Inspector General.
Deputy Attorney General Jeffrey A. Rosen expressed the Department’s support for the initiative. “To protect taxpayer dollars, the Justice Department is doing its part to eliminate anticompetitive collusion, waste and abuse from government procurement,” said Deputy Attorney General Rosen. “To ensure taxpayers the full benefits of competitive bidding, experienced investigators and prosecutors with the necessary expertise will partner in this Strike Force to deter, detect and prosecute antitrust crimes and related schemes in government procurements.”
“When companies cheat the government on contracts, they are really cheating the taxpayers who pay the bill,” said US Attorney Jason Dunn. “In Colorado, we stand ready to hold dishonest companies accountable and ensure taxpayers are getting what they paid for.”
“The investigation and prosecution of individuals and organizations that cheat, collude and seek to undermine the integrity of government procurement are priorities for this administration,” said Assistant Attorney General Delrahim. “The PCSF will train and educate procurement officials nationwide to recognize and report suspicious conduct in procurement, grant and program funding processes. We will aggressively investigate and prosecute those who violate our antitrust laws to cheat the American taxpayer.”
The PCSF will lead a national effort to protect taxpayer-funded projects at the federal, state and local level from antitrust violations and related crimes, starting with a focus on 13 districts throughout the country. Prosecutors from the Antitrust Division and the participating U.S. Attorneys’ Offices, along with agents from the FBI and partner Offices of Inspector General, will work together to conduct outreach and training for procurement officials and government contractors on antitrust risks in the procurement process. In addition, the partnered prosecutors and investigators will jointly investigate and prosecute cases that result from their targeted outreach efforts.
“Inspectors General throughout the federal government have a long history of rooting out waste, fraud and abuse in government contracting,” said Michael E. Horowitz, Inspector General of the Department of Justice and Chair of the Council of Inspectors General on Integrity and Efficiency. “We welcome the opportunity to contribute our expertise to the important work of the Procurement Collusion Strike Force. We look forward to partnering with the other participating members of the law enforcement community to hold accountable actors who seek to defraud the government and cheat taxpayers.”
“The FBI has a long history of working with our interagency and law enforcement partners to investigate public procurement crimes and ensure justice,” said FBI Criminal Intelligence Division Assistant Director Terry Wade. “We are committed to working closely with our DOJ colleagues and our federal, state and local partners as we continue to successfully combat these crimes.”
“Individuals and companies that participate in procurement collusion cause significant harm and losses to the Department of Defense and to American taxpayers,” said Glenn A. Fine, Principal Deputy Inspector General, Performing the Duties of the Inspector General, of the Department of Defense Office of Inspector General. “The DoD Office of Inspector General, and our criminal investigative component, the Defense Criminal Investigative Service, are committed to aggressively investigating those individuals and companies who would attempt to compromise government procurement processes.”
The Antitrust Division and its law enforcement partners have a history of prosecuting criminal antitrust conspiracies that take advantage of government contracts. In late 2018 and early 2019, for instance, five South Korean oil companies agreed to plead guilty for their involvement in a decade-long bid-rigging conspiracy that targeted contracts to supply fuel to U.S. military bases in South Korea. The Antitrust Division also indicted seven individuals for conspiring to rig bids and to defraud the government, and one executive was also charged with obstruction of justice. In total, the companies have agreed to pay $156 million in criminal fines and over $205 million in separate civil settlements. This year, the Justice Department, in partnership with the GSA Office of Inspector General, also indicted individuals for involvement in rigging bids submitted to the GSA.
The PCSF’s 13 U.S. Attorney partners include:
- Nicola T. Hanna, Central District of California
- McGregor Scott, Eastern District of California
- Jason R. Dunn, District of Colorado
- Jessie K. Liu, District of Columbia
- Ariana Fajardo Orshan, Southern District of Florida
- Byung J. “BJay” Pak, Northern District of Georgia
- John R. Lausch, Jr., Northern District of Illinois
- Matthew Schneider, Eastern District of Michigan
- Geoffrey S. Berman, Southern District of New York
- David M. DeVillers, Southern District of Ohio
- William M. McSwain, Eastern District of Pennsylvania
- Erin Nealy Cox, Northern District of Texas
- G. Zachary Terwilliger, Eastern District of Virginia
The PCSF’s investigative partners include:
- Department of Defense Office of Inspector General
- Federal Bureau of Investigation
- General Services Administration Office of Inspector General
- Department of Justice Office of the Inspector General
- U.S. Postal Service Office of Inspector General
The PCSF has launched a publicly available website at https://www.justice.gov/procurement-collusion-strike-force, where government procurement officials and members of the public can review information about the federal antitrust laws and training programs, and report suspected criminal activity affecting public procurement.
Individuals and companies are encouraged to contact the PCSF if they have information concerning anticompetitive conduct involving federal taxpayer dollars by emailing [email protected].
Jury Convicts Three Individuals of Four Murders, Racketeering, and Drug and Firearms OffensesRead the Press Release
Tampa, Florida – Today, following a three week trial, a federal jury found Jordan Rodriguez (Bradenton, 26), Andrew Thompson, a/k/a “Nico,” (Bradenton, 25), and Alfonzo Churchwell (Bradenton, 32) guilty of multiple charges, including racketeering conspiracy, drug conspiracy, murder conspiracy, drug and firearms offenses, and four murders. See the summary chart below for a list of charges and related penalties.
In July 2019, seven individuals were charged in a 20-count superseding indictment. Four defendants pleaded guilty to a variety of charges prior to trial. Each of the three defendants that proceeded to trial were accused of committing at least one murder. The evidence in the case showed that the defendants were engaged in a violent and deadly rivalry with others in Oneco, a community in Bradenton, and that the defendants worked together to traffic in controlled substances and to control and protect their drug business with violence and murder.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Manatee County Sheriff’s Office, and the State Attorney’s Office (Twelfth Judicial Circuit). It is being prosecuted by Assistant United States Attorneys Natalie Hirt Adams and Christopher F. Murray.
Charge
Name
Maximum Penalties
Count One
RICO Conspiracy
Jordan Rodriguez
Andrew Thompson
Alfonzo Churchwell
Maximum term of life imprisonment, a fine not to exceed $250,000, a term of supervised release of up to 5 years, and a $100 special assessment.
Count Two
Drug Trafficking Conspiracy
Jordan Rodriguez
Andrew Thompson
Alfonzo Churchwell
Maximum term of imprisonment of 20 years, a fine not to exceed $1 million, a term of supervised release of up to 5 years, and a $100 special assessment.
Count Three
Conspiracy to Commit Murder in Aid of Racketeering (relating to the murder of Julio Tellez)
Jordan Rodriguez
A maximum term of imprisonment of 10 years, a fine not to exceed $250,000, a term of supervised release of up to 3 years, and a $100 special assessment.
Count Four
Murder in Aid of Racketeering, or Aiding and Abetting the Same (relating to the murder of Julio Tellez)
Jordan Rodriguez
A mandatory term of life imprisonment, a fine not to exceed $250,000, a term of supervised release of up to 5 years, and a $100 special assessment.
Count Five
Use of a Firearm During and in Relation to a Crime of Violence, resulting in the murder of Julio Tellez, or Aiding and Abetting the Same
Jordan Rodriguez
A mandatory minimum term of imprisonment of 10 years, up to life (said term to run consecutive to any other term of imprisonment), a fine not to exceed $250,000, a term of supervised release of up to 5 years, and a $100 special assessment.
Count Eight
Possession with Intent to Distribute Controlled Substances Involving Heroin, Cocaine, And Crack Cocaine
Andrew Thompson
Maximum term of imprisonment of 20 years, a fine not to exceed $1 million, a term of supervised release of up to 5 years, and a $100 special assessment.
Count Ten
Use of a Firearm During and in Relation to Drug Trafficking Crimes and a Crime of Violence, resulting in the murder of Earnestine Gardner
Alfonzo Churchwell
A mandatory minimum term of imprisonment of 10 years, up to life (said term to run consecutive to any other term of imprisonment), a fine not to exceed $250,000, a term of supervised release of up to 5 years, and a $100 special assessment.
Count Eleven
Felon In Possession Of Ammunition
Alfonzo Churchwell
Maximum term of imprisonment of 10 years, a fine not to exceed $250,000, a term of supervised release of up to 3 years, and a $100 special assessment.
Count Twelve
Accessory After the Fact
Jordan Rodriguez
Maximum term of imprisonment of 15 years, a fine not to exceed $250,000, a term of supervised release of up to 3 years, and a $100 special assessment.
Count Thirteen
Attempted Possession with Intent to Distribute Cocaine and Methamphetamine
Andrew Thompson
Maximum term of imprisonment of 20 years, a fine not to exceed $1 million, a term of supervised release of up to 5 years, and a $100 special assessment.
Count Fourteen
Murder in Aid of Racketeering (relating to the murder of LaShawna Stevenson-Weeks)
Andrew Thompson
A mandatory term of life imprisonment, a fine not to exceed $250,000, a term of supervised release of up to 5 years, and a $100 special assessment.
Count Fifteen
Use of a Firearm During and in Relation to Drug Trafficking Crimes and a Crime of Violence, resulting in the murder of Lashawna Stevenson-Weeks
Andrew Thompson
A mandatory minimum term of imprisonment of 10 years, up to life (said term to run consecutive to any other term of imprisonment), a fine not to exceed $250,000, a term of supervised release of up to 5 years, and a $100 special assessment.
Count Sixteen
Murder in Aid of Racketeering (relating to the murder of Berry Joseph, a/k/a “B-1”)
Andrew Thompson
A mandatory term of life imprisonment, a fine not to exceed $250,000, a term of supervised release of up to 5 years, and a $100 special assessment.
Count Seventeen
Use of a Firearm During and in Relation to Drug Trafficking Crimes and a Crime of Violence resulting in the murder of Berry Joseph, a/k/a “B-1”
Andrew Thompson
A mandatory minimum term of imprisonment of 10 years, up to life (said term to run consecutive to any other term of imprisonment), a fine not to exceed $250,000, a term of supervised release of up to 5 years, and a $100 special assessment.
Count Eighteen
Possession of a Firearm and Ammunition While Subject to a Domestic Violence Restraining Order
Andrew Thompson
Maximum term of imprisonment of 10 years, a fine not to exceed $250,000, a term of supervised release of up to 3 years, and a $100 special assessment.
Count Nineteen
Accessory After the Fact
Jordan Rodriguez
Maximum term of imprisonment of 15 year, a fine not to exceed $250,000, a term of supervised release of up to 3 years, and a $100 special assessment.
Count Twenty
Using or Maintaining a Drug Premises
Jordan Rodriguez
Andrew Thompson
Alfonzo Churchwell
Maximum term of imprisonment of 20 years, a fine not to exceed $500,000, a term of supervised release of up to 5 years, and a $100 special assessment.
Joint Statement from Department of Justice, DOD, DHS, DNI, FBI, NSA, and CISA on Ensuring Security of 2020 ElectionsRead the Press Release
Attorney General William Barr, Secretary of Defense Mark Esper, Acting Secretary of Homeland Security Kevin McAleenan, Acting Director of National Intelligence Joseph Maguire, FBI Director Christopher Wray, U.S. Cyber Command Commander and NSA Director Gen. Paul Nakasone, and CISA Director Christopher Krebs today released the following joint statement:
“Today, dozens of states and local jurisdictions are hosting their own elections across the country and, less than a year from now, Americans will go to the polls and cast their votes in the 2020 presidential election. Election security is a top priority for the United States Government. Building on our successful, whole-of-government approach to securing the 2018 elections, we have increased the level of support to state and local election officials in their efforts to protect elections. The federal government is prioritizing the sharing of threat intelligence and providing support and services that improve the security of election infrastructure across the nation.
In an unprecedented level of coordination, the U.S. government is working with all 50 states and U.S. territories, local officials, and private sector partners to identify threats, broadly share information, and protect the democratic process. We remain firm in our commitment to quickly share timely and actionable information, provide support and services, and to defend against any threats to our democracy.
Our adversaries want to undermine our democratic institutions, influence public sentiment and affect government policies. Russia, China, Iran, and other foreign malicious actors all will seek to interfere in the voting process or influence voter perceptions. Adversaries may try to accomplish their goals through a variety of means, including social media campaigns, directing disinformation operations or conducting disruptive or destructive cyber-attacks on state and local infrastructure.
While at this time we have no evidence of a compromise or disruption to election infrastructure that would enable adversaries to prevent voting, change vote counts or disrupt the ability to tally votes, we continue to vigilantly monitor any threats to U.S. elections.
The U.S. government will defend our democracy and maintain transparency with the American public about our efforts. An informed public is a resilient public. Americans should go to trusted sources for election information, such as their state and local election officials. We encourage every American to report any suspicious activity to their local officials, the FBI, or DHS. In past election cycles, reporting by Americans about suspicious activity provided valuable insight which has made our elections more secure. The greatest means to combat these threats is a whole-of-society effort.”
Jamaican Pleads Guilty in Drug Trafficking Scheme that Used U.S. Mail to Ship Cocaine from California to Western PARead the Press Release
PITTSBURGH - A Jamaican citizen pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
Robert Forbes, also known as "Daniel Kirkpatrick" and "Joe", age 45, Pomona, California, pleaded guilty to one count before Senior United States District Judge Marilyn J. Horan.
In connection with the guilty plea, the court was advised that Forbes conspired to distribute and possess with intent to distribute 5 kilograms or more of cocaine, a Schedule II controlled substance from April 2017 through April 2019. The conspiracy involved the shipment of cocaine from California using the United States Mail to various cities throughout the United States, including New Castle, Pennsylvania. The conspiracy also involved the shipment of cash, also through the United States Mail, from the recipients of the cocaine to the suppliers of cocaine. Many of the cocaine distributors were, like Forbes, originally from Jamaica. Forbes is not a United States citizen and will likely face deportation after he serves his sentence.
Judge Horan scheduled sentencing for February 25, 2020. The law provides for a minimum sentence of 10 years imprisonment and up to life in prison, a fine of $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Brendan T. Conway and Marnie Sheehan-Balchon are prosecuting this case on behalf of the government.
A federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) conducted the investigation that led to the prosecution of Forbes. The task force is headed by the Drug Enforcement Administration and is comprised of members drawn from the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Lawrence County Drug Task Force, Pennsylvania Office of Attorney General, Borough of Baldwin Police Department, McKees Rocks Police Department, Munhall Police Department, Allegheny County Sheriff’s Office, Pittsburgh Bureau of Police, and the Pennsylvania State Police. 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. In this case, the Lawrence County Drug Task Force and the New Castle Police Department also participated in the investigation.
Jackson Man Pleads Guilty under Project EJECT to Possession of Multiple Firearms by a Convicted FelonRead the Press Release
Jackson, Miss. – Wilmer Ham a/k/a Jose Lopez, 33, pled guilty yesterday before U.S. District Judge Carlton W. Reeves to two counts of being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Michelle A. Sutphin, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi.
On September 14, 2018, a Jackson Police officer responded to a call at Tony’s Food Mart on Highway 80 in Jackson. Upon arrival, the officer noticed the store clerk frantically waving his hands in an attempt to get the officer’s attention from inside the store. Upon entering, the officer noticed the store was in disarray and a male, later identified as Wilmer Ham, was standing beside the fountain drinks. The officer attempted to speak with Ham, but his behavior led the officer to call for backup. Before assistance could arrive, Ham rushed the officer in an attempt to exit. As the officer tried to stop Ham, they struggled and a firearm fell from Ham’s pocket. The firearm was later determined to be a Ruger, model LCP, .380 caliber pistol. After no assistance arrived, the officer disengaged Ham and Ham left the scene.
Later that day, Jackson Police officers again responded to Tony’s Food Mart. Upon arrival, officers observed the front door partially open with a male, later determined to be Wilmer Ham, in the doorway holding the door open with his foot. Both the officer who responded to the earlier call and the store clerk confirmed that Ham was the same individual from that morning. Surveillance video captured Ham inside the store with a handgun and then tossing the handgun outside the door. The gun was determined to be a Taurus, model PT738 TCP, .380 caliber pistol. An investigation revealed that Ham had two previous convictions in Bronx County Criminal Court for possession of a loaded firearm and for criminal sale of a controlled substance.
In August, 2019, Ham was charged in a federal criminal indictment with two counts of possession of a firearm by a convicted felon.
Ham will be sentenced by Judge Reeves on February 4, 2020, and faces a maximum penalty of 20 years in prison and a $5,000,000 fine.
The Federal Bureau of Investigation and the Jackson Police Department investigated this case. It is being prosecuted by Assistant U.S. Attorney Keesha Middleton.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Justice Expel Crime Together." PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Inmate at FCI Hazelton indicted for assaultRead the Press Release
CLARKSBURG, WEST VIRGINIA – Brian Keith Rose, an inmate at FCI Hazelton in Bruceton Mills, West Virginia, was indicted today by a federal grand jury on an assault charge, U.S. Attorney Bill Powell announced.
Rose, age 34, was indicted on one count of “Assault of a Correctional Officer Involving Physical Contact.” Rose is accused of assaulting a federal correctional officer at FCI Hazelton in October 2018.
Rose faces up to eight years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Brandon S. Flower is prosecuting the case on behalf of the government. The Bureau of Prisons Special Investigation Services investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Illegal Aliens indicted on reentry chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA –Two illegal aliens were indicted by a federal grand jury today for an immigration violations, U.S. Attorney Bill Powell announced.
Eduardo Rafael Rivas-Acosta, a citizen of El Salvador, is charged with one count of “Reentry of Removed Aliens.” Rivas-Acosta, age 40, having been removed from the U.S. once before, is accused of being in Jefferson County illegally in October 2019.
Adrian Homero Arrendondo-Castillo, a citizen of Mexico, is charged with one count of “Reentry of Removed Aliens.” Arrendondo-Castillo, age 40, having been removed from the U.S. once before, is accused of being in Berkeley County illegally in October 2019.
Rivas-Acosta and Arrendondo-Castillo each face up to two years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Timothy D. Helman is prosecuting the cases on behalf of the government. The Department of Homeland Security Immigrations and Customs Enforcement investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Illegal Alien admits to reentry chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jose Catarino Feregrino-Resendez, a citizen of Mexico, has admitted to an immigration violation, U.S. Attorney Bill Powell announced.
Feregrino-Resendez, age 49, pled guilty to one count of “Reentry of Removed Alien.” Feregrino-Resendez admitted to reentering the country illegally after be removed once before. The crime occurred in April 2019 in Harrison County.
Feregrino-Resendez faces up to two years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Andrew R. Cogar is prosecuting the case on behalf of the government. The Department of Homeland Security Immigrations and Customs Enforcement and the FBI investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Houston gang members sentenced for trafficking drugs in the HeightsRead the Press Release
HOUSTON - A federal judge has sentenced a 25-year-old Houston resident to 19 years in prison following his convictions for meth distribution and possessing a firearm in furtherance of a narcotics conspiracy, announced U.S. Attorney Ryan K. Patrick along with Special Agent in Charge Fred Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosives and Regional Director Jason Taylor of Texas Department of Public Safety (DPS) - Criminal Investigations Division.
Elias Larry Luna pleaded guilty July 9. Also sentenced today were co-conspirators Alfonso Rios and Jesus Jimenez, both 30 and also of Houston. They had previously admitted to two counts of narcotics distribution acting in conspiracy with Luna.
Today, U.S. District Judge Nancy Atlas ordered Luna to serve a total of 228 months in federal prison which includes 168 months for the narcotics convictions and a consecutive 60 months for the related firearms charge. The 19-year sentence will be immediately followed by five years of supervised release. At the hearing, the court heard additional evidence regarding the firearms Luna sold in conjunction with the narcotics distribution. These included three semi-automatic rifles sold to an undercover agent during the investigation leading to Luna’s arrest. The court also heard about Luna’s involvement in the narcotics trafficking. In imposing the sentence, Judge Atlas noted the event leading to Luna’s arrest was the most “significant and negative transactions” she had seen.
Rios and Jimenez both received 15-year sentences.
“Removing armed drug traffickers from the streets will have an immediate impact on the greater Houston community,” said Milanowski. “We will continue our work to dismantle drug trafficking organizations through our partnerships with local, state and federal authorities.”
"DPS worked collaboratively with our federal, state and local agency partners to disrupt a violent drug trafficking organization," said Taylor. "DPS Criminal Investigations Division special agents, analysts and several other members of the department worked many hours throughout this investigation, and their work has helped make Texas safer."
At the time of his plea, Luna admitted he took part in a drug trafficking conspiracy to distribute approximately 13 kilograms of meth in the Heights neighborhood of Houston in September 2018. Luna also admitted he was armed with a firearm during the conspiracy.
In August 2018, authorities began investigating Luna for trafficking narcotics in the Houston area. The investigation culminated in a September 2018 sting operation resulting in his arrest and that of his co-conspirators while attempting to sell approximately 13 kilograms of meth for $95,250. During the operation, Luna attempted to engage in the narcotics sale, while Rios and Jimenez provided counter-surveillance, attempting to conceal the drug trafficking. Despite the presence of firearms, law enforcement ultimately apprehended all three men without violence.
Luna and Rios have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
ATF and DPS led the investigation as part of a multi-agency effort through the Texas Anti-Gang Center with the assistance of the Drug Enforcement Administration and Houston Police Department. Assistant U.S. Attorney Jason Corley is prosecuting the case.
Home Health Companies to Pay $2.5 Million to Settle Federal False Claims Act LawsuitRead the Press Release
United States Attorney Brandon J. Fremin announced today that Louisiana-based home health companies Health Care Options, Inc. and Health Care Options of Lafayette, Inc.; Texas-based Home Care Options Houston, Inc.; and Howard D. Austin, II, have agreed to settle a civil fraud complaint filed under the federal False Claims Act by paying $2.5 million to the United States.
The settlement resolves allegations that, between 2011 and 2018, the defendants defrauded the Medicare and Louisiana Medicaid programs by submitting false and fraudulent claims for payment for home health services without required face-to-face encounters between patients and physicians.
“The United States expects companies and individuals serving Medicare and Medicaid beneficiaries, including people in need of home health care, to fully comply with all requirements of those programs,” said U.S. Attorney Fremin. “This case highlights our commitment to aggressively pursue anyone trying to avoid their obligations to the Government and to health care patients. I want to thank our Assistant U.S. Attorney and our partners at HHS-OIG and the Louisiana Attorney General’s Medicaid Fraud Control Unit for their outstanding efforts in achieving this result.”
U.S. District Judge John W. deGravelles has issued an order accepting the parties’ settlement agreement and has entered a consent judgment in favor of the United States. The settlement resolves a lawsuit, United States ex rel. Melanie Berzas v. Health Care Options, Inc., et al., No. 14-199-JWD-RLB, filed under the whistleblower provisions of the False Claims Act, which permits private parties to file suit on behalf of the United States and to share in a portion of the Government’s recovery.
This matter was investigated by the U.S. Attorney’s Office for the Middle District of Louisiana and the U.S. Department of Health and Human Services, Office of Inspector General, with substantial assistance from the Louisiana Department of Justice Medicaid Fraud Control Unit. The United States was represented by Assistant United States Attorney Chase E. Zachary, a member of the Affirmative Civil Enforcement (ACE) unit in the U.S. Attorney’s Office. The ACE unit is responsible for filing civil lawsuits on behalf of the United States to recover government money lost to fraud or other misconduct and to impose civil penalties for violations of federal health, safety, and environmental laws.
Hartsville Man Sentenced to 4 Years in Federal Prison on Gun ChargeRead the Press Release
Florence, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Kyre Christen Brown, 25, of Hartsville, was sentenced to 4 years 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 September 8, 2018, an officer with the Hartsville Police Department was on patrol when he saw Brown walking northbound on the sidewalk. The officer confirmed that there was an outstanding warrant for Brown, then pulled into a nearby driveway, opened his door, and attempted to make contact with Brown. As soon as the officer opened his door, Brown ran, and the officer pursued Brown on foot. Brown ran through a backyard, jumped a fence into the backyard of another house, and stopped for a moment near a bush, where he appeared to be hiding something. When Brown saw the officer coming, he took off again but eventually stopped in another back yard, where the officer apprehended him. Officers searched the area near the bush where Brown had briefly stopped and found a loaded revolver.
Federal law prohibits Brown from possessing firearms and ammunition because he has prior convictions for strong arm robbery, assault and battery first degree, and second degree burglary.
United States District Judge Donald C. Coggins sentenced Brown to 48 months in federal prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Hartsville Police Department. It was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant United States Attorney Lauren Hummel of the Florence office prosecuted the case.
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Harrison County man indicted for failing to update his sex offender registrationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Gordon Eugene Mays, Jr., of Reynoldsville, West Virginia, was indicted today by a federal grand jury on a sex offender charge, U.S. Attorney Bill Powell announced.
Mays, age 55, was indicted on one count of “Failure to Update Sex Offender Registration.” Mays, a person required to register as a sex offender, is accused of failing to update his registration in September 2018.
Mays faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Brandon S. Flower is prosecuting the case on behalf of the government. The United States Marshal Service investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Georgia Tech professor sentenced for defrauding the National Science FoundationRead the Press Release
ATLANTA - Maysam Ghovanloo has been sentenced for violating the federal wire fraud statute in furtherance of a scheme to defraud the National Science Foundation. Ghovanloo was a tenured full professor in the School of Electrical and Computer Engineering at the Georgia Institute of Technology.
“Grant funding is limited, and the competition for those dollars is keen,” said U.S. Attorney Byung J. “BJay” Pak. “People awarded grants to do research and development vow that they will adhere to the rules governing it. Ghovanloo decided to sacrifice his reputation by dodging those rules and lying.”
“The National Science Foundation's Small Business Innovation Research (SBIR) program provides small businesses with funding to conduct research and development work that will lead to the commercialization of innovative new products and services. This sentence serves as a reminder that fraud in the SBIR Program will not be tolerated. The NSF Office of Inspector General remains committed to ensuring the integrity of the SBIR program and will actively pursue oversight of these taxpayer funds. I commend the U.S. Attorney’s Office and our investigative partners for their support in this effort.”
According to U.S. Attorney Pak, the charges and other information presented in court: Maysam Ghovanloo owned and operated a Georgia corporation called Bionic Sciences, Inc. (BSI). Ghovanloo and BSI received federal grants through Small Business Innovation Research (SBIR) programs sponsored by NSF. To be eligible for SBIR grant funds, Ghovanloo and BSI were required to meet program-eligibility requirements, adhere to award terms and conditions, and provide only truthful information in all documents submitted to NSF. However, Ghovanloo submitted certifications that contained materially false and fraudulent statements and omissions, followed by electronic payment requests to NSF.
Maysam Ghovanloo, 46, of Atlanta, Georgia, was sentenced to eight months home confinement, and ordered to pay $40,000 in restitution. As part of his guilty plea and plea agreement, he resigned from his position at Georgia Tech, effective June 21, 2019. He was also was barred from doing business with the federal government for a period of three years. Ghovanloo was convicted on these charges on August 21, 2019, after he pleaded guilty.
The National Science Foundation Office of Inspector General and the Department of Health and Human Services Office of Inspector General investigated this case.
Assistant U.S. Attorney Russell Phillips prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Fort Wayne Man Sentenced to 70 Months in Prison for Distribution of MethamphetamineRead the Press Release
FORT WAYNE – Carlos Prado, 40 years old, of Fort Wayne, Indiana, was sentenced by U.S. District Court Judge Holly A. Brady after pleading guilty to distribution of methamphetamine, announced U.S. Attorney Thomas L. Kirsch II.
Prado was sentenced to 70 months in prison. He will be deported upon the completion of his sentence.
According to documents in the case, in July of 2016, Prado sold a confidential informant approximately 2 ounces of methamphetamine.
This investigation was conducted by the Drug Enforcement Administration, with assistance from the Federal Bureau of Investigation, the Indiana State Police, the Allen County Police Department, and the Fort Wayne Police Department. The case was prosecuted by Assistant United States Attorney Anthony W. Geller.
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Former VA Hospice Nurse Indicted for Allegedly Diverting and Tampering with Morphine Meant for Dying VeteransRead the Press Release
BOSTON – A Tewksbury woman was indicted today by a federal grand jury in Boston on charges of diverting morphine while employed as a nurse in the hospice unit at the Veterans Affairs (VA) Medical Center campus in Bedford.
Kathleen Noftle, 55, was charged by indictment with one count of tampering with a consumer product and one count of obtaining a controlled substance by misrepresentation, fraud, deception, and subterfuge. Noftle was arrested and charged by criminal complaint in this case in September 2019.
According to charging documents, on Jan. 13, 14, and 15, 2017, Noftle used her position as a nurse to obtain doses of morphine that were meant to be given to the veterans under her care in the hospice unit. Noftle admitted to federal agents that she mixed water from the sink with a portion of the liquid morphine doses, and then administered the diluted medication to patients orally. It is alleged that Noftle then ingested a diluted amount of the remaining drug. The investigation revealed that, due to diluted morphine administered by Noftle, one veteran may have experienced increased difficulty breathing (dyspnea) and increased suffering in his final days. The investigation also found that before working at the VA Medical Center in Bedford, Noftle had resigned from her position as a nurse at a different hospital following her failure to follow appropriate procedures when wasting narcotics on 60 occasions.
The charge of tampering with a consumer product provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. The charge of obtaining a controlled substance by misrepresentation, fraud, deception, and subterfuge, provides for a sentence of up to four years in prison, one year of supervised release and a fine of up to $250,000. 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 and Sean Smith, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office made the announcement today. Assistant U.S. Attorney William B. Brady of Lelling’s Health Care Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Uniontown Resident Sentenced to Prison for Defrauding his Employer, Tax Evasion, and Failing to File Tax ReturnsRead the Press Release
PITTSBURGH - A former resident of Uniontown, Pennsylvania, has been sentenced in federal court to a term of imprisonment of two years and three months (27 months) to be followed by two years of supervised release on his conviction for mail fraud, tax evasion, and willful failure to file income tax returns, United States Attorney Scott W. Brady announced today.
United States District Judge Cathy Bissoon imposed the sentence on Eugene Traficante, age 44, now of Weirton, West Virginia.
Previously, in connection with Traficante’s guilty plea, the court was advised that in 2006, Traficante was hired to perform billing and bookkeeping work for a commercial refrigeration repair and maintenance business located in Steubenville, Ohio. As part of his duties, Traficante had access to a post office box where the business received payments from customers through the United States mail. In May 2006, Traficante opened a bank account and began depositing into the account checks that he removed from the company’s post office box without authorization. Traficante withdrew fraudulently obtained monies from the account for his own personal benefit. Traficante stole or diverted approximately 168 checks totaling $345,552.59. Additionally, from around January 2011 through April 15, 2012, Traficante willfully attempted to evade income tax due and owing by him to the United States for the 2011 calendar year. Traficante also willfully failed to file income tax returns following the close of the 2012 and 2013 calendar years despite being required by law to do so.
Assistant United States Attorneys James R.Wilson and David Lew prosecuted this case on behalf of the government.
The Internal Revenue Service - Criminal Investigation and the United States Postal Inspection Service conducted the investigation leading to the successful prosecution of Traficante.
Former Pasco County Assistant Principal Sentenced to 35 Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven today sentenced Kyle Dale Ritsema (36, Land O’Lakes) to 35 years in federal prison for producing, distributing, and possessing child pornography.
Ritsema had pleaded guilty on December 21, 2018.
According to court documents, in 2014, Ritsema, a former teacher and Assistant Principal at Cypress Creek Middle High School in Pasco County, enticed a 14-year-old child on the mobile application “Grindr.” Ritsema had sex with the child on at least five occasions over the course of one year and produced pornographic images of the child. Ritsema shared the images with others, including another employee of Pasco County Schools. A subsequent investigation revealed that Ritsema had targeted many other minors, including former students, and enticed them for sex, and on several occasions sexually abused them. Ritsema’s conversations also revealed that he is HIV positive and that, on multiple occasions, he did not disclose his HIV status despite having unprotected sex with unknowing children and adults.
Beginning in March 2017, and continuing until his arrest in this case, Ritsema had been an Assistant Principal at Cypress Creek Middle High School. Before holding that position, he was the Assistant Principal at Pine View Middle School (appointed in July 2015), an Assistant Principal Administrative Intern at River Ridge Middle School (appointed in January 2015), and a math teacher and math coach at Paul R. Smith Middle School, Gulf Highland Elementary School, and Seven Springs Middle School (beginning in 2006).
“Our communities are safer today with this deviant child sexual predator behind bars, thanks to our HSI special agents, the Florida Department of Law Enforcement and the Middle District Florida U.S. Attorney’s Office,” said HSI Tampa Special Agent in Charge James C. Spero. “This criminal’s former position of trust makes this case all the more egregious and we hope today’s sentencing can bring a small measure of closure to the innocent victims and their families.”
This case was investigated by the Department of Homeland Security, Homeland Security Investigations, with assistance from the Florida Department of Law Enforcement and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Frank Murray.
Any person who had unprotected sexual contact with Ritsema, or any person who was, or knows of someone who may have been, a possible child victim, is urged to contact HSI at 1-866-DHS-2ICE or http://www.ice.gov/webform/hsi-tip-form.
Former PA Man Sentenced for Importing Fentanyl and Illegally Possessing Firearms while Unlawfully Using a Controlled SubstanceRead the Press Release
PITTSBURGH - A former resident of Donora, Pennsylvania, has been sentenced in federal court to fourmonths incarceration, followed by three years of supervised release, the first sixmonths of which will be home detention, on his conviction of violating a federal narcotics law and federal firearm law, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Joy Flowers Conti imposed the sentence on Christian B. Drennan, 28, now currently residing in St. Clairsville, Ohio.
According to information presented to the court, from in and around April 2018 and continuing until September 6, 2018, Drennan, an opioid addict, conspired to import less than 40 grams of fentanyl, a controlled substance, from China for his personal use and possessed firearms while an unlawful user of a controlled substance.
Assistant United States Attorney Shardul S. Desai prosecuted this case on behalf of the government.
United States Attorney Brady commended the Homeland Security Investigations, the United States Postal Inspection Service, the Federal Bureau of Investigation, and Pennsylvania State Police as part of the Joint Criminal Opioid Darknet Enforcement (J-CODE) initiative for the investigation leading to the successful prosecution of Drennan.
Former Merced Health Care Provider CEO and Licensed Nurse Practitioner Sentenced to 5 Years in Prison for Health Care FraudRead the Press Release
FRESNO, Calif. — Sandra Haar, 59, of Merced, was sentenced on Monday by U.S. District Judge Lawrence J. O’Neil to five years in prison and ordered to pay $6,107,846 in restitution for health care fraud and conspiracy to receive kickbacks, U.S. Attorney McGregor W. Scott announced. Haar was ordered to self-surrender on Jan. 15, 2020, to begin serving her sentence.
Haar was the founder and chief executive officer of Horisons Unlimited, a nonprofit public benefit corporation that provided health and dental services in Merced and surrounding communities. According to court documents, between January 1, 2014, and March 2017, Haar orchestrated a scheme to bill Medicare and Medi-Cal for services she knew were not reimbursable, and she profited by over $3.7 million from her fraud. For example, Haar billed Medi‑Cal for health and dental services that were not rendered and for unnecessary health care services. She also billed Medi-Cal for office visits with purportedly licensed doctors when the patients instead were dispensed Suboxone, an opioid medication, in the parking lots of McDonald’s and Rite Aid in baggies.
According to court documents, Haar also received thousands of dollars in kickbacks in cash from an account executive at a laboratory in exchange for using it for patients’ laboratory testing.
This case was the product of an investigation by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services Office of Inspector General (HHS OIG), the California Department of Health Care Services, and the California Bureau of Medi-Cal Fraud & Elder Abuse. Assistant U.S. Attorneys Lee S. Bickley and Michael Tierney prosecuted the case.
Former Head of Pakistani Drug Trafficking Network Sentenced to 15 Years in Prison for Narcotics OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that SHAHBAZ KHAN (“KHAN”) was sentenced to 15 years for conspiring and attempting to import massive quantities of heroin into the United States. KHAN was taken into custody by Liberian authorities on December 1, 2016, and expelled to the United States later that day, based on a pending Complaint in this District. He previously pled guilty before U.S. District Judge Lorna G. Schofield, who imposed today’s sentence.
U.S. Attorney Geoffrey S. Berman stated: “Shahbaz Khan was an international drug kingpin who distributed staggering quantities of narcotics from southwest Asia to countries throughout the world. In 2016, he agreed to transport tens of thousands of kilograms of heroin to New York City. Today’s sentence shows that we will continue to seek justice against those who flood our communities with heroin and other deadly, highly addictive drugs that fuel the opioid epidemic plaguing this city.”
According to the Complaint, the Superseding Indictment, and other filings in this case:
KHAN, a Pakistani national, was the leader of a drug trafficking organization (the “DTO”) based in Afghanistan and Pakistan that produced and distributed massive quantities of narcotics around the world. In 2007, KHAN was designated a Narcotics Kingpin under the Foreign Narcotics Kingpin Designation Act by then-President George W. Bush. In total, KHAN and the DTO distributed hundreds of tons of drugs.
Between approximately August and December 2016, KHAN conspired to send tens of thousands of kilograms of heroin hidden in maritime shipping containers and air cargo shipments to New York City. KHAN spent weeks negotiating the shipments with individuals he understood to be customers of the DTO, who were in fact confidential sources (the “CSes”) working for the Drug Enforcement Administration (the “DEA”). The CSes told KHAN that they worked with a New York City-based drug trafficker – who, unbeknownst to KHAN, was a DEA undercover agent (“UC-1”) – and that UC-1 was looking for a new source of supply for large quantities of heroin. In August 2016, the CSes told KHAN that UC-1 was interested in purchasing up to 300 kilograms of heroin per week from KHAN and the DTO. KHAN bragged to the CSes about his decades-long experience in international drug trafficking, including that he had once transported 114 tons of drugs in a single year, including 64 tons of hashish.
Within weeks of first meeting the CSes, KHAN traveled to the Maldives to meet with UC-1 and the CSes. During the course of these meetings, KHAN explained the various ways that he could transport heroin to UC-1. KHAN suggested, for example, that he could ship heroin from Pakistan to a transshipment point in Africa, where UC-1 would receive the heroin and have it shipped to the United States. KHAN further explained that he could ship narcotics “wherever” UC-1 wanted, and emphasized that “if you tell me America, I will send it to America.”
In October 2016, KHAN provided a five-kilogram sample of high-quality heroin to the CSes in Kabul, Afghanistan. Within weeks of providing the sample, KHAN traveled to Liberia to meet with UC-1 and to examine a supposed warehouse that could serve as a transshipment point for their future heroin deals. While in transit to Liberia, KHAN explained to UC-1 that he could ship up to 10,000 kilograms at a time, and that it was just as easy for him to ship 10,000 kilograms as it was to ship 1,000 kilograms. Once KHAN landed in Liberia, he was arrested and expelled to the United States.
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In addition to the prison term, KHAN, 71, was sentenced to five years of supervised release.
Mr. Berman praised the outstanding investigative efforts of the DEA’s Special Operations Division’s Bilateral Investigations Unit; the DEA Accra, Canberra, Sydney, Dubai, Islamabad, Kabul, Nairobi, and New Delhi Country Offices; the DEA New York Organized Crime Drug Enforcement Task Force Financial Investigative Team; the Government of Liberia; the Liberian Drug Enforcement Agency; the DEA Nairobi Country Office Kenyan Vetted Unit; the Australian Criminal Intelligence Commission; and the Maldives Police Service.
The case is being prosecuted by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Shawn G. Crowley, Rebekah Donaleski, and Jason A. Richman are in charge of the prosecution.
Dunmore Man Charged with Bank FraudRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Eric R. Colborn, age 49, of Dunmore, Pennsylvania, was charged in a criminal information on October 31, 2019, with conspiracy to commit bank fraud.
According to United States Attorney David J. Freed, the criminal information alleges that Colborn created a counterfeit Wells Fargo brokerage statement in his name showing that he had in excess of $14,000,000 in a brokerage account, and then fraudulently induced reliance on the counterfeit brokerage statement to secure property and other things of value. It is also alleged that Colborn and his coconspirator entered into sales agreements to purchase property and vehicles by writing checks on accounts neither Colborn or his coconspirator owned or were authorized to use. The scheme to defraud started in or about November 2017 and continued through March 2019. The total loss amount is approximately $404,293.
The case was investigated by the Internal Revenue Service – Criminal Investigation Division, the Dunmore Police Department, and the Lackawanna County District Attorney’s Office. Assistant U.S. Attorney Michelle Olshefski is prosecuting the case.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 30 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Dominican National Indicted on Fentanyl Trafficking, ID Theft, Heath Care Fraud ChargesRead the Press Release
PROVIDENCE – A Dominican national living in Providence, who allegedly delivered fentanyl on at least four occasions and who allegedly adopted a stolen identity and used it to gain a Rhode Island driver’s license and Medicaid benefits, was indicted by a federal grand jury today on charges of trafficking fentanyl, aggravated identity theft, misusing a Social Security number, and health care fraud.
Joaquin Soto-Medina, aka P.C.R., 47, was arrested by members of the Woonsocket Police Department on October 7, 2019, moments after he exited a residence in Woonsocket that a court-authorized search by Woonsocket Police Detectives allegedly revealed was a drug stash house. It is alleged that at the time of his arrest Soto-Medina was found to be carrying 18 plastic baggies containing fentanyl.
Prior to the search of the residence, it is alleged that on four occasions between August 28, 2019, and September 17, 2019, Soto-Medina delivered baggies containing one gram of fentanyl to another person.
According to court documents and information presented to the Court, a subsequent investigation by Homeland Security Investigations and the U.S. Department of Health and Human Services, Office of Inspector General determined that in 2014, Soto-Medina allegedly used the stolen identity of an individual living in Puerto Rico, including that person’s Social Security number, to obtain a Rhode Island driver’s license. In 2016, he allegedly used the stolen identification when filing an application for and being approved to receive Medicaid health benefits.
A federal grand jury today charged Joaquin Soto-Medina with two counts of false representation of a Social Security number, and one count each of aggravated identity theft, health care fraud, conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl, and possession with intent to distribute fentanyl and aiding and abetting, announced United States Attorney Aaron L. Weisman, Woonsocket Police Chief Thomas Oates, Homeland Security Investigations Acting Special Agent in Charge Jason Molina, and Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General.
Conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl and possession with intent to distribute fentanyl and aiding and abetting each are punishable by statutory penalties of a minimum mandatory 10 years up to life in federal prison and 5 years supervised release. Health care fraud is punishable by up to 10 years imprisonment and 3 years supervised release. False representation of a Social Security number is punishable by 5 years imprisonment and 3 years supervised release. Aggravated identity theft is punishable by 2 years imprisonment, consecutive to any other sentence imposed in this matter.
According to court documents, in 2001, Soto-Medina, a Dominican national, was found to be in the United States illegally. After being administratively charged with entering the United States without inspection, he voluntarily returned to the Dominican Republic.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorney Dulce Donovan.
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Denver Man Convicted of Large-Scale Cocaine Trafficking Sentenced to Lengthy Prison TermRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Michael Benitez-Lopez, aka “Mikey” aka “Money Mike”, age 27 of Denver, Colorado, was sentenced late last week by Chief U.S. District Court Judge Philip A. Brimmer to serve 180 months (15 years) in federal prison for distributing large quantities of cocaine. Following his prison sentence, Benitez-Lopez was ordered to spend 5 years on supervised release. The defendant appeared at the hearing in custody, and was remanded at its conclusion.
According to court documents and arguments made at trial, from March 2017 through April 1, 2018, Benitez-Lopez received multiple-kilograms of cocaine as part of a large scale drug trafficking organization that was responsible for importing more than 200 kilograms of cocaine during the course of the conspiracy. The defendant sold multi-kilogram quantities of cocaine to lower level dealers throughout Metro Denver.
“This is a significant sentence that is justified by the scale of the drug trafficking operation and the quantity of cocaine being imported into Colorado,” said U.S. Attorney Jason Dunn. “We hope other dealers will see this sentence and get the message that peddling drugs in Colorado has harsh federal penalties.”
“This investigation targeted a significant cocaine trafficking organization in the Denver metropolitan area,” said DEA Denver Division Special Agent in Charge Deanne L. Reuter. “This investigation is another prime example of the commitment of the DEA, working with the U.S. Attorney’s Office and our law enforcement partners, to dismantle and remove drug trafficking organizations in order to protect our communities.”
The trial lasted three days before Chief U.S. District Court Judge Philip A. Brimmer. The jury deliberated for two hours before reaching their guilty verdicts on August 9, 2019.
This case was investigated by the Drug Enforcement Administration. The defendant was prosecuted by Assistant U.S. Attorneys Stephanie Podolak and Zachary Phillips.
DEA Announces Maine Practitioner Diversion Awareness TrainingRead the Press Release
Event will take place on Wednesday, November 6, 2019, from 8:30 a.m. to 5:00 p.m. at the Augusta Civic Center – North Wing, 76 Community Drive, Augusta, Maine 04330
U.S. Attorney Halsey B. Frank to deliver opening remarks
Portland, Maine: Drug overdoses are the leading cause of injury-related deaths in the United States and every day we see the impact that prescription drug abuse has on our neighborhoods. This crisis is destroying communities throughout our nation. In an effort to address this epidemic, Drug Enforcement Administration New England Division Special Agent in Charge Brian D. Boyle and co-sponsor, the Federation of State Medical Boards, present the Maine Practitioner Diversion Awareness Training.
This invitation-only training is for DEA-registered doctors, dentists, veterinarians, physician assistants and nurse practitioners. The objective is to provide information and tools to address prescription drug abuse and addiction. The training will include topics such as the role of DEA’s Diversion Control Division, Maine initiatives regarding the prescribing of opioids, identifying methods of diversion and red flags, the DEA license registration process, health care fraud and diversion, physician case study, the Maine Prescription Monitoring Program and effective medication assisted treatment.
The Maine Practitioner Diversion Awareness Training will be held Wednesday, November 6, from 8:30 a.m. to 5:00 p.m. at the Augusta Civic Center – North Wing, 76 Community Drive, Augusta, Maine 04330. Check-in begins at 7:30 a.m. and a livestream of this event is available to DEA-registered practitioners.
U.S. Attorney for the District of Maine Halsey B. Frank and DEA New England Division Associate Special Agent in Charge Jon DeLena will be in attendance and available for comments to the media after opening remarks at 9:00 a.m. Gordon Smith, Maine Director of Opioid Response, will be available to the media after his presentation at 10:30 a.m.
Conway Man Sentenced to 12 Years in Federal Prison on Gun and Drug ChargesRead the Press Release
Florence, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Eron Jordan, 28, of Conway, was sentenced to 12 years in federal prison after pleading guilty to being a felon in possession of a firearm and possession with intent to distribute controlled substances.
Evidence presented to the court showed that on May 22, 2018, an officer with the Conway Police Department was on patrol when he saw a vehicle with tinted windows so dark that he could not see the driver through the front side window. The officer initiated a traffic stop on the vehicle, and upon approaching the vehicle, smelled an odor of marijuana. The officer explained the window tint violation to the driver, identified as Eron Jordan, asked Jordan to step out of the vehicle, and asked about the odor of marijuana. Jordan disagreed about the odor and said he had no objections to the officers looking in the vehicle. Officers searched the vehicle and discovered two bags of crack cocaine and two bags of heroin in the center console; a Smith and Wesson 9mm handgun in the glove compartment, loaded with 16 rounds of ammunition; a silver scale in the front passenger door; several cell phones; a glass jar with a small amount of suspected marijuana; $335.00 in cash in the driver’s door; and $5,762.00 in cash in a book bag on the rear passenger seat. A search of a passenger in the vehicle revealed 70 Hydrocodone pills, 69 Oxycodone pills, and 10 Buprenorphine pills. Jordan admitted that everything in the car was his and nothing belonged to the passenger.
Federal law prohibits Jordan from possessing firearms and ammunition because he has two prior state convictions for pointing and presenting a firearm.
Chief United States District Judge R. Bryan Harwell, of Florence, sentenced Jordan to 144 months in federal prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Conway Police Department, assisted by the Horry County Police Department and the Horry County Sheriff’s Office. 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 Lauren Hummel of the Florence office prosecuted the case.
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Columbus man sentenced to 20 years in prison for armed bank robbery in WhitehallRead the Press Release
COLUMBUS – A Columbus man was sentenced today for robbing a bank in Whitehall, pistol-whipping two of the bank’s employees while demanding money, and conspiring with his girlfriend to hide the gun he used in the robbery.
Robert K. Mason, 43, was sentenced to 240 months in prison.
According to court documents, Mason robbed the Huntington Bank at 4550 East Broad Street on Sept. 26, 2018. Mason walked in the bank, lifted his shirt to show that he had a gun, pulled the handgun and ordered customers to the floor. Mason vaulted the counter and demanded money from the tellers, hitting two of them with the gun when he became frustrated at the speed of the employees.
Mason ran out the front door and escaped in a car driven by his girlfriend, Bretta L. Nallen. Whitehall police arrested Mason on Oct. 31, 2018. While he was in custody, he called Nallen and told her to get rid of the gun. Nallen was charged with being an accessory to the crime and evidence tampering. She pleaded guilty to the accessory charge in August 2019.
Mason pleaded guilty in April 2019 to one count of bank robbery, one count of using a firearm during a crime of violence and one count of conspiracy to tamper with evidence.
“Mason is a career criminal who has committed a number of violent offenses,” U.S. Attorney David M. DeVillers said. “That’s exactly the type of offender we prioritize prosecuting in this office. Mason earned his time in federal prison.”
DeVillers, Joseph Deters, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Columbus Division of Police Acting Chief Thomas Quinlan and Whitehall Police Chief Mike Crispen announced the sentence imposed today by U.S. District Judge Edmund A. Sargus, Jr.
Assistant United States Attorney S. Courter Shimeall is representing the United States in this case.
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