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31 October 2019
Meridian Man Sentenced to 14 Years in Prison on Federal Drug ChargesRead the Press Release
BOISE – Brian Cade Humphreys, 46, of Meridian, Idaho, was sentenced last week to fourteen years in federal prison followed by ten years of supervised release for distribution of methamphetamine, U.S. Attorney Bart M. Davis announced. Humphreys was sentenced by U.S. District Judge B. Lynn Winmill. A federal grand jury indicted Humphreys on July 11, 2018.
According to court records, law enforcement used a confidential informant to purchase methamphetamine from Humphreys on four separate occasions. Humphreys has a lengthy criminal history that includes a prior crime of violence and a drug trafficking offense. Because of Humphreys’ lengthy criminal history, the court determined Humphreys to be a career offender under the federal sentencing guidelines. This resulted in Humphreys receiving a higher prison sentence.
This case was investigated by Treasure Valley Metro Violent Crimes Task Force. The Task Force is comprised of federal, state and local agencies, including Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Department of Homeland Security; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole.
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Maryland Man Sentenced to 90 Months in Prison for Participating in Drug ConspiracyRead the Press Release
WASHINGTON – Gregory Cook, 48, of Waldorf, Maryland, was sentenced today to seven and a half years in prison on four felony narcotics charges for his role in a conspiracy to traffic narcotics in Northeast, D.C. and Maryland. The announcement was made by U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Cook was found guilty in July 2019, following a jury trial in the U.S. District Court for the District of Columbia before the Honorable James E. Boasberg. Cook was convicted of conspiracy to distribute and possess with intent to distribute 28 grams or more of cocaine base, cocaine, and heroin, as well as standalone narcotics possession offenses. Judge Boasberg sentenced Cook to 90 months in prison to be followed by 48 months of supervised release.
As established at trial, on June 7, 2017, MPD received reliable information that Cook and his partner Cornelia Rice were trafficking narcotics in the District of Columbia and Maryland. Officers conducted surveillance of Rice, performed a stop on one of her vehicles, and recovered narcotics. During the stop, Rice asked an individual on the street to call “her mother,” to tell her that she had been arrested. Rice, in fact, called Cook. About six minutes after the call to Cook’s cellphone, with MPD officers surveilling Rice’s residence, Cook came to the front door and anxiously looked up and down the street outside of the apartment building. Immediately after Cook peered outside the door, Rice’s then 11-year-old son walked out the building with a backpack and headed down the street by himself. Officers ultimately stopped the child. Inside the backpack was a large quantity of narcotics, a pistol, and a large amount of U.S. currency. Officers then executed a search warrant at the apartment after finding Cook attempting to leave the location. In total, officers recovered approximately 50 grams of cocaine base, 270 grams of cocaine, 15 grams of heroin, 133 grams of marijuana, a .22 caliber pistol, $11,235.00, and extensive drug paraphernalia for the manufacturing and packaging of narcotics.
In a subsequent search of Cook’s Maryland residence following his arrest, law enforcement recovered extensive drug paraphernalia that contained drug residue, a commercial money counter, and an extensive amount of jewelry. At the time of the offense, Cook had multiple prior drug trafficking and firearms convictions. During the trial, in addition to MPD officers, officers from the Charles County Sheriff’s Office assisted and testified regarding the items recovered from Cook’s Maryland residence.
On July 3, 2019, Judge Boasberg sentenced Cook’s partner and coconspirator Rice to five years of in prison following her guilty plea to possession of a firearm in furtherance of a drug trafficking offense.
In announcing the sentence, U.S. Attorney Liu and Chief Newsham commended the work of all of those involved in the case. They also acknowledged the efforts of those who handled the case from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorneys Kevin Rosenberg and Christopher Macchiaroli of the Violent Crime and Narcotics Trafficking Section, Paralegal Specialists Katie Thomas, Rommel Pachoca, and Teesha Tobias, and Legal Assistants Kate Abrey and Emma Atlas.
Man Sentenced to Year in Prison for Fraudulent PassportRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that William Guy, 51, formerly of Madison, Wisconsin, was sentenced yesterday by U.S. District Judge William Peterson to one year in prison for fraudulently obtaining a passport. Guy pleaded guilty to this charge on August 22, 2019.
Guy was arrested in Austria in April 2018 on federal charges of fraudulently obtaining a passport, and on numerous state charges. At the time of his arrest, he had been a fugitive for more than seven years, and was on the U.S. State Department’s Diplomatic Security Service’s most wanted list. Guy fought extradition from Austria for almost a year, before being surrendered to the United States.
In declining to give Guy credit for the time he served in Austria, Judge Peterson said he didn’t think it was so closely related to his federal charges that he should receive credit for it. Judge Peterson also said the reason Guy fled, to avoid prosecution on state criminal charges, was particularly aggravating.
In addition to the federal charge, Guy still faces charges of possessing child pornography, stalking resulting in bodily harm, false imprisonment, identity theft, victim intimidation, second degree sexual assault, kidnapping, bail jumping, and numerous other charges in Dane County Circuit Court.
The charge against Guy was the result of an investigation conducted by U.S. Department of State’s Diplomatic Security Service – Chicago Field Office, the U.S. Marshals Service, FBI Legal Attaché – US Embassy Vienna, and the Madison Police Department. The prosecution of the federal case has been handled by Assistant U.S. Attorney Elizabeth Altman. The Justice Department’s Office of International Affairs of the Department’s Criminal Division provided significant assistance. The prosecution of the state charges has been handled by Assistant District Attorneys Matthew Moeser and William Brown.
Man Sentenced to 57 Months in PrisonRead the Press Release
FORT WAYNE – Mauricio Ramirez, age 25, Fort Wayne, Indiana was sentenced before U.S. District Court Judge Holly A. Brady upon his plea of guilty to possession with intent to distribute methamphetamine, announced U.S. Attorney Kirsch.
According to documents in this case, a confidential informant and an undercover agent made several controlled buys of heroin and cocaine from Mr. Dorrion Jefferson. Jefferson also agreed to deliver four ounces of methamphetamine to the undercover agent. On his way to deliver the methamphetamine to the undercover agent, Jefferson picked up Ramirez. Ramirez entered the vehicle carrying a bag. The vehicle was stopped by law enforcement on the way to the delivery. Officers located the bag inside the vehicle which contained over 100 grams of methamphetamine.
Due to his prior drug dealing convictions, Jefferson was deemed to be a career offender under the sentencing guidelines. Jefferson pled guilty and was sentenced in August to 204 months in prison followed by 5 years of supervised release.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and Indiana State Police with the assistance of the DHS Customs and Border Protection Agency and the Drug Enforcement Administration. The case was handled by Assistant United States Attorney Stacey R. Speith.
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Louisiana Man Sentenced for Violating Civil Rights of Woman with DisabilitiesRead the Press Release
Terry Knope, age 46, was sentenced to 336 months imprisonment today in the Eastern District of Louisiana for conspiring with other members of his family to obtain forced, unpaid household labor and services from D.P., an adult woman with cognitive disabilities, for assaulting D.P. and violating her federal Fair Housing Act rights because of her disabilities, and for helping others manufacture methamphetamine on his property.
“The revolting, disgusting, and depraved criminal acts of the defendant and his co-conspirators have no place in our nation or in any civilized place,” said Assistant Attorney General Eric Dreiband. “This case should serve as a warning: human traffickers will be brought to justice and punished severely. The Department of Justice will continue to fight and prosecute all forms of human trafficking, and the Department’s Civil Rights Division will continue to seek justice for the most vulnerable in our society.”
“Today’s sentence concludes the prosecution of one most appalling acts of depravity this District has seen in recent memory. Terry Knope along with co-conspirators, Bridget Lambert and Raylaine Knope, participated in truly horrific crimes against one of the most susceptible members of our society. I hope that the conclusion of this case will bring a measure of justice and finality to the victim,” said Eastern District of Louisiana U.S. Attorney Peter G. Strasser. “Our office, along with the Department of Justice, state and local investigative agencies are committed to seeking justice on behalf of all victims including vulnerable individuals such as D.P.”
“The sentence handed down today to Terry Knope is most fitting for his appalling actions,” said Special Agent in Charge Bryan A. Vorndran of FBI New Orleans. “The conditions and torment the victim endured were simply unfathomable; no human deserves such treatment. Protecting the civil rights of all persons within the United States remains a cornerstone of the FBI’s mission.”
On May 20, Knope pleaded guilty to one count of forced labor conspiracy, one count of violating D.P.’s federal Fair Housing Act rights, one count of a Hate Crime, and one count of misprision of a felony. At his plea hearing, Knope admitted that, between Aug. 13, 2015, and June 30, 2016, in Amite, Louisiana, he conspired with other family members to obtain D.P.’s uncompensated household labor and services through a number of means, including by force, threats of force, and physical restraint. Knope admitted that he forced D.P. to live in a locked backyard cage and to perform housework and yard work in exchange for food and water. He further admitted that he and his co-conspirators subjected D.P. to routine physical abuse, threats, and verbal and psychological abuse designed to ensure D.P.’s continued compliance with the family’s orders. As examples of this abuse, the defendant admitted that he once intentionally burned D.P. with a cigarette lighter while another family member held D.P. in place so she could not escape. Knope further admitted that, because of D.P.’s disability, he forced D.P. to live in the locked backyard cage and shot her with a B.B. gun at close range, and that he also helped others produce methamphetamine on his property.
This case was investigated by the FBI’s Field Office in New Orleans, Louisiana, the Tangipahoa Parish Sheriff’s Office, and the Tangipahoa Parish District Attorney’s Office. The case has been prosecuted by Trial Attorney Risa Berkower of the Justice Department’s Civil Rights Division, Assistant United States Attorney Julia Evans of the U.S. Attorney’s Office for the Eastern District of Louisiana, and by the Tangipahoa Parish District Attorney’s Office.
Louisiana Man Sentenced for Violating Civil Rights of Woman with DisabilitiesRead the Press Release
WASHINGTON – Terry Knope, age 46, was sentenced to 336 months imprisonment today in the Eastern District of Louisiana for conspiring with other members of his family to obtain forced, unpaid household labor and services from D.P., an adult woman with cognitive disabilities, for assaulting D.P. and violating her federal Fair Housing Act rights because of her disabilities, and for helping others manufacture methamphetamine on his property.
“The revolting, disgusting, and depraved criminal acts of the defendant and his co-conspirators have no place in our nation or in any civilized place,” said Assistant Attorney General Eric Dreiband. “This case should serve as a warning: human traffickers will be brought to justice and punished severely. The Department of Justice will continue to fight and prosecute all forms of human trafficking, and the Department’s Civil Rights Division will continue to seek justice for the most vulnerable in our society.”
“Today’s sentence concludes the prosecution of one most appalling acts of depravity this District has seen in recent memory. Terry Knope along with co-conspirators, Bridget Lambert and Raylaine Knope, participated in truly horrific crimes against one of the most susceptible members of our society. I hope that the conclusion of this case will bring a measure of justice and finality to the victim,” said Eastern District of Louisiana U.S. Attorney Peter G. Strasser. “Our office, along with the Department of Justice, state and local investigative agencies are committed to seeking justice on behalf of all victims including vulnerable individuals such as D.P.”
“The sentence handed down today to Terry Knope is most fitting for his appalling actions,” said Special Agent in Charge Bryan A. Vorndran of FBI New Orleans. “The conditions and torment the victim endured were simply unfathomable; no human deserves such treatment. Protecting the civil rights of all persons within the United States remains a cornerstone of the FBI’s mission.”
On May 20, Knope pleaded guilty to one count of forced labor conspiracy, one count of violating D.P.’s federal Fair Housing Act rights, one count of a Hate Crime, and one count of misprision of a felony. At his plea hearing, Knope admitted that, between Aug. 13, 2015, and June 30, 2016, in Amite, Louisiana, he conspired with other family members to obtain D.P.’s uncompensated household labor and services through a number of means, including by force, threats of force, and physical restraint. Knope admitted that he forced D.P. to live in a locked backyard cage and to perform housework and yard work in exchange for food and water. He further admitted that he and his co-conspirators subjected D.P. to routine physical abuse, threats, and verbal and psychological abuse designed to ensure D.P.’s continued compliance with the family’s orders. As examples of this abuse, the defendant admitted that he once intentionally burned D.P. with a cigarette lighter while another family member held D.P. in place so she could not escape. Knope further admitted that, because of D.P.’s disability, he forced D.P. to live in the locked backyard cage and shot her with a B.B. gun at close range, and that he also helped others produce methamphetamine on his property.
This case was investigated by the FBI’s Field Office in New Orleans, Louisiana, the Tangipahoa Parish Sheriff’s Office, and the Tangipahoa Parish District Attorney’s Office. The case has been prosecuted by Trial Attorney Risa Berkower of the Justice Department’s Civil Rights Division, Assistant United States Attorney Julia Evans of the U.S. Attorney’s Office for the Eastern District of Louisiana, and by the Tangipahoa Parish District Attorney’s Office.
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Leader of $6.1 Million Medicaid Fraud Scheme Pleads Guilty to Federal ChargesRead the Press Release
CHARLOTTE, N.C. – Tony Garrett Taylor, 39, formerly of Charlotte, N.C. and currently residing in Atlanta, Georgia, pleaded guilty today to health care fraud conspiracy and tax evasion, for his role in a scheme that defrauded the North Carolina Medicaid (Medicaid) of more than $6.1 million, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. U.S. Magistrate Judge David S. Cayer presided over the plea hearing.
North Carolina Attorney General Josh Stein, who oversees the North Carolina Medicaid Investigations Division (MID), joins U.S. Attorney Murray in making today’s announcement.
According to the bill of information and plea documents filed with the court, from June 2015 to December 2017, Tony Garrett Taylor conspired with his brother, Jerry Lewis Taylor, and others, and defrauded Medicaid of millions of dollars, by submitting fraudulent reimbursement claims for services that were never provided, and by submitting claims that misrepresented the services actually provided to Medicaid beneficiaries in order to receive greater reimbursement.
Court documents show that the brothers perpetuated the fraud through series of entities they owned and/or operated, which purported to provide outpatient behavioral health services to at-risk youth in North Carolina and elsewhere. Among the entities involved in the fraudulent scheme were Taylor Behavioral Health Center, LLC (TBHC) and Options Drive LLC, both located in Monroe, N.C.; Design for Change (DFC) located in Raleigh, N.C.; and SHG Consultants, Inc. (SHG), located in Gastonia, N.C. and elsewhere.
According to court documents, as the leader of the conspiracy, Tony Taylor was responsible for recruiting other co-conspirators to participate in the fraudulent scheme. He also obtained prospective patient lists that contained identifying information for Medicaid beneficiaries, some of which was used to perpetrate the fraud. As a result of the fraudulent scheme, Tony Taylor and Jerry Taylor and their co-conspirators received approximately $6.1 million in fraudulent reimbursement payments from Medicaid.
In addition to defrauding Medicaid, Tony Taylor also failed to file timely U.S. individual Income Tax Return Form 1040 for tax years 2015, 2106, and 2017, even though he received and deposited a total of over $4.1 million in fraudulent receipts from Medicaid into bank accounts he controlled. Tony Taylor also admitted to taking steps to willfully evade and defeat his income tax obligations for tax years 2015, 2016, and 2017, by, among other things, diverting fraudulent receipts from Medicaid to nominee entities and individuals, and making personal expenditures from business entity accounts he controlled.
To date, four other defendants have been charged in connection with this conspiracy:
Jerry Lewis Taylor, 54, of Wingate, N.C. pleaded guilty on June 19, 2019, to health care fraud conspiracy and tax evasion. Together with Tony Taylor, he owned and/or operated entities that defrauded Medicaid. He is currently awaiting sentencings.
Ameera Ali, 40, of Columbus, Ohio, previously admitted to filing fraudulent reimbursement claims with Medicaid on behalf of companies owned and operated by Tony Taylor, Jerry Taylor and others. She pleaded guilty on April 22, 2019, to health care fraud conspiracy and is currently awaiting sentencing.
Devon Rambert-Hairston, 41, of Huntersville, N.C. and a licensed as a nurse practitioner, previously admitted to falsifying patient records used by Tony Taylor and Jerry Taylor to submit fraudulent reimbursement claims to Medicaid. Rambert-Hairston pleaded guilty to money laundering conspiracy on April 16, 2019, and is currently awaiting sentencing.
Christine Yvette Knight., 50, of Clermont, Florida, allegedly prepared fraudulent treatment notes and billing spreadsheets for companies owned and operated by Tony Taylor and Jerry Taylor. She is charged with health care fraud conspiracy and is currently awaiting trial.
Tony Taylor was released on bond following the plea hearing. The health care fraud conspiracy charge carries a maximum prison sentence of 10 years and a $250,000 fine. The tax evasion charge carries a maximum of five years in prison and a $250,000 fine or twice the actual gain, or both. A sentencing date for Tony Taylor has not been set yet.
The investigation was handled by MID. Assistant U.S. Attorney Dallas Kaplan and Special Assistant U.S. Attorney Timothy Rodgers of the U.S. Attorney’s Office in Charlotte.
The investigation and charges are the work of the Western District’s joint Health Care Fraud Task Force. The Task Force is multi-agency team of experienced federal and state investigators, working in conjunction with criminal and civil Assistant United States Attorneys, dedicated to identifying and prosecuting those who defraud the health care system, and reducing the potential for health care fraud in the future. The Task Force focuses on the coordination of cases, information sharing, identification of trends in health care fraud throughout the region, staffing of all whistle blower complaints, and the creation of investigative teams so that individual agencies may focus their unique areas of expertise on investigations. The Task Force builds upon existing partnerships between the agencies and its work reflects a heightened effort to reduce fraud and recover taxpayer dollars.
To report Medicaid fraud in North Carolina, call the North Carolina Medicaid Investigations Division at 919-881-2320
Large-Scale Counterfeit Fentanyl Pill Dealer Sentenced to 30 Years in PrisonRead the Press Release
Tampa, FL – United States District Judge Virginia M. Hernandez Covington has sentenced Dion Gregory Fisher (33, formerly of Seminole) to 30 years in federal prison for conspiring to manufacture and distribute fentanyl and fentanyl analogue, and money laundering. Fisher was also ordered to forfeit several high-end vehicles, including an Aston Martin and Audi R8, and a forfeiture money order of nearly $800,000 was entered against him. A federal jury had found Fisher guilty on June 5, 2019.
According to testimony and evidence presented during the seven-day trial, Fisher and others, including co-defendant Christopher McKinney, manufactured and distributed hundreds of thousands of counterfeit oxycodone 30 mg pills that were made with fentanyl that Fisher had ordered from China. Fisher also ordered pill presses from China, some of which were seized by Homeland Security. He also purchased binding and cutting agents used in the manufacturing process.
Another co-defendant, Samuel Huffman, used the pill presses and materials supplied by Fisher to press fentanyl pills out of his automotive business in Pinellas Park. Huffman pleaded guilty to the fentanyl conspiracy on October 9, 2018, testified against Fisher at trial, and was sentenced to 33 months in federal prison on June 24, 2019.
Fisher also stored fentanyl and fentanyl analogue in a work bay in Clearwater. In January and February 2018, large quantities of fentanyl and fentanyl analogue were seized from these locations, as well as from Fisher’s residence in Seminole, and McKinney’s residence and work bay. More than three kilograms of fentanyl and fentanyl analogue were admitted into evidence during the trial. On July 2, 2018, Christopher McKinney pleaded guilty to conspiring to distribute and manufacture fentanyl and fentanyl analogue. McKinney forfeited $1.4 million in cash, two residences, and several high-end vehicles/motorcycle. McKinney testified against Fisher at trial, and was sentenced to 2 years in federal prison on June 28, 2019.
Fisher and McKinney sold hundreds of thousands of counterfeit oxycodone pills, mostly via the U.S. Mail, to Phil Morose in Boston. Morose then distributed the pills. Morose was charged with conspiring to distribute and manufacture fentanyl and fentanyl analogue. He pleaded guilty to these charges and was sentenced on July 8, 2019, to 10 years in federal prison. He is also currently facing money laundering charges in Boston.
In addition, Fisher laundered the proceeds from his fentanyl pill sales with Konrad Guzewicz, who owned and operated automotive and tire-and-rim companies in Pinellas County. Fisher purchased several high-end luxury vehicles, including an Aston Martin, a Bentley, a Maserati, a BMW, and an Audi R8, using fentanyl proceeds. Guzewicz also laundered fentanyl cash proceeds for Fisher. On four occasions, Fisher provided Guzewicz with $35,000 in cash that he had obtained from selling fentanyl pills, and Guzewicz, in turn, wrote Fisher a check for $30,000 from his business and personal accounts. Guzewicz pleaded guilty to money laundering charges on June 28, 2018, testified against Fisher at trial, and was sentenced to 15 months in federal prison on July 2, 2019.
This case was investigated by the Middle District of Florida Opioid Fraud and Abuse Detection Unit, a Department of Justice program created to help combat the devastating opioid crisis that is ravaging families and communities across America and to prosecute individuals that are contributing to the opioid epidemic. The investigative agencies included the Drug Enforcement Administration, the Pinellas County Sheriff’s Office, the Pinellas Park Police Department, the Tarpon Springs Police Department, the U.S. Marshals Service, the U.S. Postal Inspection Service, and IRS – Criminal Investigation. It was prosecuted by Assistant United States Attorneys Kelley Howard-Allen, Maria Guzman, and Greg Pizzo.
Kentucky Correctional Officers Plead Guilty to Beating Handcuffed Detainee and Attempting to Cover up the AssaultRead the Press Release
David M. Schwartz, 48, and Donna K. Gentry, 55, former correctional officers at the Louisville Metro Department of Corrections (LMDC), pleaded guilty today to federal charges in connection with the assault of a detainee and a subsequent attempt to cover up that misconduct. A third officer, Devan Edwards, previously pleaded guilty to assaulting the detainee and failing to intervene to prevent Schwartz from assaulting him.
“Correctional officers are sworn to uphold and defend the laws of our nation and to ensure the safety of the inmates under their control,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “These defendants knowingly violated the constitutional rights of an inmate and then lied to cover it up, thereby abusing the powers that the public entrusted to them. The Department of Justice will continue to hold correctional officers accountable for their actions.”
“This Commonwealth is well-served by many dedicated and under appreciated corrections officers and deputy jailers; however taking that oath means something,” said U.S. Attorney Russell Coleman for the Western District of Kentucky. “Those that view it as mere words and not a solemn vow to uphold the constitutional rights of Kentuckians will face federal prosecution.”
“Today’s guilty pleas confirm that FBI Louisville will pursue all aspects of excessive force incidents, including any attempts to obstruct an investigation into underlying conduct. Corrections officers have a critical public safety responsibility, and those who decide to cross the line and engage in criminal misconduct will be held accountable, “ said FBI Louisville Special Agent in Charge James R. Brown, Jr.
According to documents filed in connection with the guilty pleas, on April 18, 2018, Schwartz, while on duty as a correctional officer, punched a pretrial detainee, T.W., in the face while T.W. had his hands cuffed behind his back, and was pleading with Schwartz and posing no threat. Schwartz then wrote a false and misleading report, in which he intentionally omitted the fact that he had used force against T.W., and also wrote a citation charging T.W. with felony third-degree assault, in which he knowingly included false information about T.W.’s conduct.
On the same date, Gentry, who was then a sergeant, learned that Schwartz and Edwards had assaulted the detainee and that Edwards had accidentally turned on his body camera and recorded part of that assault. Gentry wrote and filed a false report, in which she included false statements and made material omissions about the excessive force used by Officers Schwartz and Edwards. She then directed Edwards to review her report and provide the same false account in his own report, changing the wording so that it would not be obvious that he had copied from her report.
Based on this misconduct, Schwartz pleaded guilty to one count of depriving T.W. of his right to be free from excessive force (resulting in bodily injury), and two counts of filing false reports. Gentry pleaded guilty to one count of obstructing justice for filing the false report and persuading another officer (Edwards) to file a false report. Schwartz faces a statutory maximum term of imprisonment of 50 years, and Gentry faces a statutory maximum term of 20 years, but their actual sentences will be calculated with reference to the advisory federal sentencing guidelines.
A sentencing hearing has been scheduled for Feb. 27, 2020.
This case was investigated by the Kentucky Public Corruption Civil Rights Task Force which consists of the Federal Bureau of Investigation (FBI), LMPD, the Kentucky office of the Attorney General, and the Kentucky State Police. The case was prosecuted by Assistant United States Attorney Amanda Gregory of the Western District of Kentucky and Special Litigation Counsel Christopher J. Perras of the Department of Justice’s Civil Rights Division.
KC Woman Pleads Guilty to Selling Heroin That Resulted in Overland Park Man's Fatal OverdoseRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, woman pleaded guilty in federal court today to selling heroin to an Overland Park, Kansas, man, which resulted in his overdose death.
Valeriece D. Ealom, 50, pleaded guilty before U.S. District Judge Roseann Ketchmark to one count of distributing heroin.
By pleading guilty today, Ealom admitted that she sold heroin for $200 to a man identified in court documents as “J.B.” on June 19, 2016. She sold heroin to J.B. again the next day. At 6:45 p.m. on June 20, 2016, the deceased body of J.B. was discovered by his wife at their family home in Overland Park. In close proximity to J.B.’s body were two syringes (one containing heroin), a lighter, a spoon with heroin residue, tweezers with heroin residue, and an empty plastic baggie with heroin residue. An autopsy report later concluded J.B.’s cause of death was an accidental heroin overdose.
Ealom admitted that on June 20, 2016, she sold J.B. the heroin that resulted in his accidental overdose death.
Ealom was on supervised release at the time of the offense, after serving a 10-year sentence for distributing controlled substances.
Under the terms of today’s plea agreement, Ealom will be sentenced to 15 years and six months in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jeffrey Q. McCarther. It was investigated by the Overland Park, Kan., Police Department and the Drug Enforcement Administration.
Jury Convicts Minnesota Man of Child Sexual Exploitation OffensesRead the Press Release
A man who traveled from Minnesota to Iowa to have sex with minors was convicted by a jury on Wednesday, October 30, 2019, after a three-day trial in federal court in Cedar Rapids.
Terrance Nordwall, age 50, of Faribault, Minnesota, was convicted of attempted sex trafficking of children, attempted enticement of minors, and travel with intent to engage in illicit sexual conduct.
The evidence at trial showed that, in March and April of 2019, Nordwall exchanged text messages with a man who he believed was a “pimp” with a 14-year-old girl and a 15‑year‑old girl available. The man was actually an undercover law enforcement officer. Nordwall agreed to pay the pimp $200 for a half hour with the two girls, and he drove to the Cedar Rapids area, where he met law enforcement officers.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Nordwall remains in custody of the United States Marshal pending sentencing. Nordwall faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $750,000 fine, $15,300 in special assessments, and supervised release for 5 years to life following any imprisonment.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation, Homeland Security Investigations, the Iowa State Patrol, and the Hiawatha Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 19-57.
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Jury Convicts McNairy County Man of Bank Robberies, Firearm ChargesRead the Press Release
Jackson, TN – After a three-day jury trial, a federal jury convicted Gene Allen Howell, 38, of Selmer, Tennessee of two counts of aggravated bank robbery, two counts of using a firearm during a crime of violence and being a felon in possession of a firearm. D. Michael Dunavant, U.S. Attorney announced the guilty verdict today.
According to information presented in court, on August 25, 2017, Howell robbed the Home Banking Company located in Finger, Tennessee using a handgun. He pointed the handgun at all three female employees and threated to kill them if they did not comply with his commands. Howell had stolen a utility vehicle from Selmer, which he rode to the bank and used thereafter to evade capture. The utility vehicle was later found abandoned in a wooded area.
On October 14, 2017 Howell attempted to rob The Peoples Bank located in Reagan, Tennessee using a .45 caliber pistol. He hid nearby, and attempted to accost two bank employees as they arrived for work, but they had just entered the secure tellers' area in the bank. Unable to gain access to the teller area, Howell fired the pistol at the head of one of the employees, but she was protected by bullet resistant glass.
Howell and his co-defendant, who served as the getaway driver, were arrested 10 days later in Alcorn County, Mississippi on drug charges. Law enforcement found in Howell's possession two pistols, including one used in the Reagan shooting, ammunition, and clothing worn during the robberies. The co-defendant testified against Howell at trial, and entered a guilty plea.
Howell has an extensive criminal history, including prior convictions for aggravated assault, theft, and drug charges. He faces a mandatory minimum sentence of 17 years imprisonment on the firearms charges, which will run consecutively to a sentence of up to 25 years on the bank robbery charges. There is no parole in the federal system.
Sentencing is scheduled for January 28, 2020, before U.S. District Court Chief Judge S. Thomas Anderson.
U.S. Attorney D. Michael Dunavant said, "Violent crime affects and endangers all communities in West Tennessee, both urban and rural. Howell’s brazen and disturbing armed robbery of two small community banks terrorized the rural community and inflicted fear and harm on multiple victims. Now he will have plenty of time in federal prison to suffer with the consequences of his recidivist criminal conduct, and the citizens of McNairy and Henderson Counties will be safer for it."
This case was investigated by the Federal Bureau of Investigation, Henderson County Sheriff's Department, McNairy County Sheriff's Department, Chester County Sheriff's Department and Alcorn County, Mississippi Sheriff's Department.
Assistant U.S. Attorneys Matt Wilson and Josh Morrow prosecuted this case on behalf of the government.
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Jury Convicts Jacksonville Man for Possessing Child Sex Abuse Videos and ImagesRead the Press Release
Jacksonville, Florida – A federal jury has found Jason Ryan Fain (38, Jacksonville) guilty of possessing videos and images depicting the sexual abuse of young children. He faces a maximum penalty of 20 years in federal prison followed by a potential life term of supervised release. A sentencing date has not yet been set.
According to the testimony and evidence presented at trial, on January 9, 2017, an officer with the Jacksonville Sheriff’s Office (JSO) responded to a citizen complaint at a Jacksonville residence where Fain resided. The officer recovered a USB thumb drive belonging to Fain. A subsequent search of the thumb drive revealed 3,614 images and 7 videos depicting the sexual abuse of young children, together with “selfie”-type photos depicting Fain. On October 27, 2017, Fain was arrested in Youngstown by investigators from the Bay County Sheriff’s Office. During an interview, Fain admitted that the thumb drive belonged to him and that it contained “hundreds” of pornographic images of children that he had obtained from the internet.
A forensic analysis conducted by the FBI confirmed that Fain’s thumb drive had accessed a particular file-sharing network on the internet. The device also contained a document that advocated the legalization of child pornography possession.
This case was investigated by the Jacksonville Sheriff’s Office, the Bay County Sheriff’s Office, and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Jackson Man Pleads Guilty under Project EJECT to Illegally Possessing a Firearm as a Convicted FelonRead the Press Release
Jackson, Miss – Demarkis Addison, 33, of Jackson, pled guilty today before Senior U.S. District Court Judge Tom S. Lee to possessing a firearm as a convicted felon, announced U.S. Attorney Mike Hurst and Kurt Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
While a United States Marshals Task Force was searching for a wanted man on February 6, 2019, in Jackson, a man fitting the description was observed getting into a car at America’s Best Inn located on Interstate 55. As Task Force Officers approached the man to determine whether he was wanted by the United States Marshals, the man ran on foot and was observed tossing a handgun. Officers caught the individual, Demarkis Addison, and determined he was a convicted felon at the time he was observed by the Task Force with the handgun. Addison was previously convicted of five separate house burglaries between November 2004 and February 2013.
On May 15, 2019, Addison was charged in a federal indictment with possessing a firearm after having been convicted previously of a felony.
Addison will be sentenced on January 30, 2020, by Judge Lee, and faces a maximum statutory penalty of ten years in prison and a $250,000 fine. If it is determined that Addison’s previous house burglary convictions qualify him as an armed career criminal, Addison must be sentenced to a term of imprisonment not less than 15 years and may be sentenced to imprisonment for life.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and is being prosecuted by Assistant United States Attorney Bert Carraway.
Illegal Drone Operator Sentenced for Attempting to Drop Drugs into A Georgia State PrisonRead the Press Release
ALBANY, Ga. – A Georgia man who was illegally operating an unmanned aircraft system (UAS) to drop contraband into Autry State Prison was sentenced to 48 months in prison this afternoon for his crime, said Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. Eric Lee Brown, 35, of Lithonia, Georgia pleaded guilty to one count of operating an aircraft eligible for registration knowing that the aircraft is not registered to facilitate a controlled substance offense before U.S. District Court Judge Louis Sands on Thursday, July 25, 2019. The Honorable Judge Sands sentenced the defendant to 48 months in prison, followed by 3 years supervised release on Thursday, October 31, 2019. There is no parole in the federal system.
Mr. Brown admitted in his signed plea agreement that he attempted to use a drone to drop a large bag of marijuana into Autry State Prison in Pelham, Georgia. Mitchell County deputies responded to a call on March 29, 2018 about a vehicle impeding the flow of traffic near the prison. Mr. Brown was inside the vehicle, and deputies smelled marijuana and observed the drone. They also saw two clear plastic bags containing a green, leafy substance that later was confirmed to be 294 grams of marijuana. Mr. Brown was taken into custody. Search warrants revealed detailed conversations about using the drone to drop drugs into the prison. Mr. Brown did not register the DJI Phantom 4 drone which was found in his possession, and he also did not have a valid FAA Airman’s Certificate or Remote Pilot Certificate, both actions required by law.
“Smugglers using drones, or other means, to move illegal contraband and drugs into our prisons will face prosecution and penalties in the Middle District of Georgia,” said U.S. Attorney Charlie Peeler. “The public needs to be aware that the use of drones is regulated by federal criminal statutes. Our office will enforce those laws in order to keep illegal contraband and drugs out of our prisons. I want to thank the Mitchell County Sheriff’s Office, the Georgia Department of Corrections and Department of Transportation--OIG for their excellent work in this matter.”
“The smuggling of drugs into the state prison is an ongoing battle. It is good that we can prosecute these kind of cases at the federal level and put an end to this kind of activity,” said Sheriff W.E. Bozeman, Mitchell County Sherriff’s Office.
“Today’s sentencing sets a new precedent for the federal criminal investigation and prosecution of unlawful UAS operations and sends a strong message that such activities will not be tolerated,” said Todd Damiani, Department of Transportation Office of Inspector General (DOT-OIG) Regional Special Agent in Charge. “As the use of UAS proliferates, DOT-OIG special agents, working alongside our federal, state and other law enforcement partners, will continue to bring to justice individuals who violate UAS regulations and engage in criminal use of this technology.”
“The GDC is pleased to see this case come to a close, with Brown receiving justice for his role in jeopardizing the safety of our staff, our facilities and the public,” said Commissioner Timothy C. Ward of the Georgia Department of Corrections. “We are hopeful this outcome will serve as a warning to others considering introducing contraband into our facilities, and we are proud of the work of our special agents and the continued collaboration of our law enforcement partners.”
The case was investigated by the Department of Transportation Office of Inspector General (DOT OIG), the Georgia Department of Corrections and the Mitchell County Sheriff’s Office. Assistant U.S. Attorney Leah E. McEwen prosecuted the case for the Government.
Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Idabel Man Sentenced to 16 Months for Tampering with A WitnessRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Tommy Blake McCary, age 67, of Idabel, Oklahoma, was sentenced to 16 months’ imprisonment and 3 years of supervised release for Tampering With A Witness, in violation of Title 18, United States Code, Sections 1512(b)(2)(C). The charges arose from an investigation by the McCurtain County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Superseding Indictment alleges that between January 7, 2019 and February 9, 2019, within the Eastern District of Oklahoma, the defendant knowingly attempted to corruptly persuade D.B. to avoid legal process by sending a communication as follows: “tell Ole Girl to make herself unavailable to be subpeoned to Trial. It is set for March 5 2019 I want this done immediately”, with the intent to cause and induce D.B. to evade legal process summoning D.B. to appear as a witness in a jury trial.
United States Attorney Brian J. Kuester said, “Our justice system relies upon the truthful testimony of witnesses. Trying to avoid justice by preventing or trying to prevent a person from testifying is not a successful strategy to avoid prosecution. The defendant has learned that.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Dean Burris represented the United States.
Human Smuggler Indicted on U.S. Charges and Arrested as Part of Brazilian Takedown of Significant Alien SmugglersRead the Press Release
Earlier today, extensive coordination and cooperation efforts between United States and Brazilian law enforcement authorities culminated in the Brazil Federal Police (DPF) conducting a significant enforcement operation to disrupt and dismantle a transnational alien smuggling organization, including the arrest on Brazilian charges of an alleged alien smuggler who has also been indicted in the United States. The alien smugglers targeted in this operation are alleged to be responsible for the illicit smuggling of scores of individuals from South Asia and elsewhere, into Brazil, and ultimately to the United States.
Saifullah Al-Mamun aka Saiful Al-Mamun, 32, was arrested in Brazil. Al-Mamun is charged in a superseding indictment unsealed today in the U.S. District Court for the Southern District of Texas – Laredo Division, charging him with eight conspiracy and alien smuggling counts. The enforcement operation included the execution of multiple search warrants and the additional arrests of seven Brazil-based human smugglers on Brazilian charges: Saifullah Al-Mamun, 32; Saiful Islam, 32; Tamoor Khalid, 31; Nazrul Islam, 41; Mohammad Ifran Chaudhary, 39; Mohammad Nizam Uddin, 28; and Md Bulbul Hossain, 36.
According to the indictment, Al-Mamun is alleged to have housed the aliens in São Paulo, Brazil and arranged for their travel through a network of smugglers operating out of Brazil, Peru, Ecuador, Colombia, Panama, Costa Rica, Nicaragua, Honduras, Guatemala, and Mexico to the United States. In return for smuggling the aliens into the United States, Al-Mumun and his two co-conspirators, are alleged to have arranged to be paid in Mexico, Central America, South America, Bangladesh, and elsewhere.
“Today’s indictment shows our commitment to prosecute here in the United States those alien smugglers who put our country’s public safety at risk by attempting to thwart our system of legal immigration,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “We will continue to collaborate with our foreign law enforcement partners to hold international human smugglers accountable for the threat they pose to the national security of Brazil, the United States, and other nations.”
“Transnational human smuggling organizations threaten the security of the United States,” said Special Agent in Charge Scott Brown of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Phoenix. “Through a significant joint effort with our domestic and international law enforcement partners, these arrests signify another victory as we continue to investigate and dismantle those who conspire to undermine our nation’s immigration laws for their own profit.”
Milon Miah, a Bangladeshi national who was residing in Tapachula, Mexico, was arrested Aug. 31 on arrival at George Bush Intercontinental Airport in Houston, Texas, to face charges in the superseding indictment for his role in the scheme to smuggle aliens into the United States. Moktar Hossain, 31, a Bangladeshi national formerly residing in Monterrey, Mexico, pleaded guilty on Aug. 27 for his role in the scheme to smuggle aliens to the United States for the purpose of commercial advantage or private financial gain.
Both the indictment against Al-Mamun and assistance provided by U.S. authorities to Brazilian law enforcement were coordinated under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities. HSI Phoenix led U.S. investigative efforts, working in concert with HSI Brasilia, HSI Laredo, the HSI Human Smuggling Unit ECT program, ICE’s Enforcement and Removal Operations, U.S. Customs and Border Protection National Targeting Center, the International Organized Crime Intelligence and Operations Center, the HSI Liaison to the U.S. Department of Defense, U.S. Southern Command, Operation CITADEL, BITMAP, and the National Targeting Center. The Justice Department, both Criminal Division’s HRSP and the Office of International Affairs, provided significant assistance in this matter.
Trial Attorneys James Hepburn, Erin Cox, and Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section are handling the U.S. investigation, with assistance from the U.S. Attorney’s Office for the Southern District of Texas.
The charges contained in the Al-Mamun indictment are merely allegations and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Grand Jury Indicts Former School Athletic Trainer on Multiple Charges Including Enticing A Minor and Production of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned a five-count indictment charging Austin Pratt, 30, of Conesus, NY, with enticement of a minor, production, receipt, and possession of child pornography, and transfer of obscene matter to a minor. The charges carry a minimum penalty of 15 years in prison, a maximum of life, and a $250,000 fine.
Assistant U.S. Attorney Melissa M. Marangola, who is handling the case, stated that according to the indictment and a previously filed complaint, on January 12, 2019, the New York State Police were notified by the parents of a teenaged minor girl (the victim) that they found a large amount of text messages on their daughter’s phone from her school athletic trainer, the defendant.
During an interview with the victim, she told investigators that in November 2018, Pratt began texting her. Simple texts regarding an injury the victim suffered led to nude photographs being exchanged between the two using Instagram.
Some of the text messages between the defendant and the victim included:
• “I seriously cannot stop thinking about you or wanting you. This is crazy to me for only knowing you for a few weeks and I'm not sure how to navigate these feelings as I'm obviously married and our age difference which plays a huge role in all this. I love talking to you and being around you and all I want is to be with you. I hate the fact that I am 16 years older than you and that we have to hide and be sneaky.”
• “Nothing would happen to you lol. My life would be ruined.” The victim responded, “You get divorce papers and 20 years in jail.” Pratt responded, “Yuppppp... gotta be super sneaky.”Subsequently, according to the complaint, Pratt and the victim engaged in sexual intercourse on January 7, 2019, at the victim’s home.
Pratt was arraigned before U.S. Magistrate Judge Jonathan W. Feldman and was released on conditions.
The indictment is the result of an investigation by the New York State Police, under the direction of Major Eric Laughton, the Rochester Office of the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, and the Livingston County District Attorney’s Office, under the direction of District Attorney Gregory J. McCaffrey.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Glendive woman sentenced to five years in prison for meth traffickingRead the Press Release
BILLINGS—A Glendive woman who admitted selling methamphetamine and heroin in the Billings community for a Denver dealer was sentenced on Wednesday to five years in prison and five years of supervised release, U.S. Attorney Kurt Alme said.
Tori Lashawn Smith, 24, pleaded guilty in June to possession with intent to distribute meth.
U.S. District Judge Susan Watters presided.
In court records, the prosecution said that Smith was a lieutenant for Nathan Trujillo, a Denver man who was convicted of drug trafficking crimes and sentenced in June to more than 20 years in federal prison.
When Turjillo was arrested in September 2018, Smith was with him in his vehicle. Law enforcement officers found 429 grams, or slightly less than one pound, of meth in the vehicle. Officers searched Smith’s purse and found two ounces of heroin. Smith later told officers she regularly sold ounce quantities of heroin for Trujillo and also had sold a pound of meth for him. One pound of meth is the equivalent of 3,624 doses.
Assistant U.S. Attorney Colin Rubich prosecuted the case, which was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Gainesville Physician and Ex-Wife Convicted of Health Care Fraud Conspiracy, Health Care Fraud, and Money LaunderingRead the Press Release
GAINESVILLE, FLORIDA –Lawrence Keefe, U.S. Attorney for the Northern District of Florida, today announced the convictions of Erik M. Schabert, 48, a physician, and his ex-wife, Mika Kamissa Harris, 49, both of Gainesville, Florida, on health care fraud and money laundering charges involving more than $8 million. The convictions came after a three-week federal jury trial that involved more than 45 witnesses and over 850 exhibits introduced into evidence.
The jury heard evidence that, while owning and operating Reliant Family Practice in Gainesville, Harris and Schabert attempted to defraud health care benefit programs of more than $8 million by submitting fraudulent claims. Evidence showed that between January 2013 and July 2016, Reliant Family Practice received $4.4 million from Medicare and Blue Cross Blue Shield for chemical peels and dermabrasions following false diagnoses of rosacea and actinic keratosis. The jury heard evidence that Harris engaged in numerous financial transactions in which she laundered approximately $3.1 million dollars in proceeds from the health care fraud scheme.
"Americans struggle every day with the high costs of health care, and they are as much the victims of this kind of fraud scheme as the programs that suffered financial losses," Keefe said. "These convictions were the result of a concerted effort by federal law enforcement, and the United States Attorney’s Office will pursue these types of criminals as aggressively and diligently as possible."
"It’s not every day you see a crime so audacious that it results in a 90-count guilty verdict, but Erik Schabert and Mika Kamissa Harris earned their fate. Through a sizeable fraud scheme, these two offenders cheated federal health care programs and used the ill-gotten proceeds to fund their own lavish lifestyle," said Special Agent in Charge Omar Pérez Aybar of the U.S. Department of Health and Human Services Office of Inspector General. "Our agents, working diligently with our law enforcement partners, will continue to investigate such costly schemes to bring such criminals to justice."
Schabert was convicted of conspiracy to commit health care or wire fraud and 24 counts of health care fraud. He faces a maximum sentence of 20 years in prison for conspiracy and 10 years in prison for each of the health care fraud convictions. Harris was convicted of conspiracy to commit health care or wire fraud and 49 counts of health care fraud. Additionally, she was convicted of 40 counts of money laundering as a result of spending the fraudulently obtained proceeds on such things as paying off her home mortgage, adding a swimming pool and other home improvements, obtaining plastic surgery, and funding an annuity for herself. Harris faces a maximum sentence of 20 years in prison for conspiracy, 10 years in prison for each of the health care fraud convictions, and 10 years in prison for each of the money laundering convictions. Sentencing is scheduled for January 27, 2020, at 2:30 p.m. at the United States Courthouse in Gainesville.
"The FBI views health care fraud as a severe problem that impacts every American," said Rachel L. Rojas, Special Agent in Charge of the FBI Jacksonville Division. "Fraud and abuse take critical resources out of our health care system, and contribute to the rising cost of health care for everyone. This case is the result of a multi-agency investigation into a complex scheme, and the FBI and our partners will continue to allocate significant resources to investigate these crimes and prosecute those who defraud the American public."
Assistant United States Attorneys Justin M. Keen and Frank T. Williams prosecuted the case, which was jointly investigated by the Department of Health and Human Services, Office of Inspector General, the Federal Bureau of Investigation, and the Internal Revenue Service– Criminal Investigation.
"The jury verdict represents one of the largest convictions of its kind in Gainesville and could have only been accomplished by the tremendous effort of all the agencies involved, to include the extensive cooperation of Blue Cross and Blue Shield," stated Ronald A. Loecker, Acting Special Agent in Charge for IRS Criminal Investigation. "Our agents, who are experts at following the money, provided a financial road map for the jury to see how the defendants profited from their extensive fraud. We will continue to provide our expert financial skills to investigating the most egregious crimes in an effort to protect the taxpayers and victims of fraud."
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html
Frederick County Man Sentenced to More Than 12 Years in Federal Prison for Posing as a Teenaged Girl Online and Inducing Minor Males to Produce and Send Sexually Explicit Images and VideosRead the Press Release
Baltimore, Maryland - U.S. District Judge Richard D. Bennett today sentenced Jake Tyler Patterson, age 21, of Adamstown, Maryland, to 150 months in federal prison, followed by lifetime supervised release, for coercion and enticement of a minor to engage in illegal sexual activity in order to produce child pornography. Judge Bennett also ordered that, upon his release from prison, Patterson must continue to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Frederick County Sheriff Charles A. “Chuck” Jenkins; and Frederick County State’s Attorney J. Charles Smith.
“Patterson, like many criminals, took advantage of the anonymity of the Internet to pose as a minor female and solicit young boys to send him sexually explicit images and video,” said U.S. Attorney Robert K. Hur. “Now he will serve over 12 years in federal prison, where there is no parole—ever. One alert parent checked their child’s smartphone, found sexually explicit photos, and called the police. That call may have prevented more children from being abused by this predator.”
According to his guilty plea, beginning in approximately fall of 2017, Patterson set up an online social media profile pretending to be a 15- or 16- year-old girl who resided outside of Maryland. Using that profile, Patterson sought out minor males and established online relationships with them. Patterson initiated sexually explicit conversations with the victims and convinced them to produce and send sexually explicit images and videos of the victims. As part of his inducement, Patterson sent sexually explicit files displaying female genitals. Patterson also paid some of the victims with gift cards, including Amazon, iTunes, Xbox, and PlayStation.
As detailed in his plea agreement, from July to December 2018 Patterson’s victims ranged in age from 12 to 15 years old and resided in Colorado, Michigan, Texas, and Maryland. All of the victims sent at least one sexually explicit image or video to Patterson, and several victims sent more than that. Patterson offered, and sent, the victims gift cards to induce them to send more sexually explicit images and videos. For example, a review of Patterson’s Amazon account showed that Patterson had purchased 55 gift cards in the previous 10 months, totaling approximately $2,600.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Robert K. Hur commended the FBI, the Frederick County Sheriff’s Office, and the Frederick County State’s Attorney’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Paul E. Budlow and Special Assistant U.S. Attorney Joyce King, a cross-designated Frederick County Assistant State’s Attorney, who prosecuted the federal case.
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Frankfort Man Sentenced to 64 Months for Illegal Firearm PossessionRead the Press Release
FRANKFORT, Ky.— Kian T. Christopher, of Frankfort, was sentenced to 64 months in federal prison on Thursday, by United States Federal Judge Gregory F. VanTatenhove, after pleading guilty to being a convicted felon in possession of a firearm.
According to Christopher’s plea agreement, in August 2018, Frankfort Police Department officers were dispatched to the Veterans of Foreign Wars, where gunshots had been reported. In his plea agreement, Christopher admitted that officers observed him throwing a firearm on the ground at the scene and, during the investigation, officers also located multiple spent shell casings, along with a female inside with a gunshot wound.
Christopher pleaded guilty to the charges in May 2019. Christopher had previously been convicted of two counts of second degree robbery in 2013.
Under federal law, Christopher must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for three years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Tommy Estevan, Special Agent in Charge for ATF; and Chief Charles Adams, Frankfort Police Department, jointly announced the sentence.
The investigation was conducted by the ATF and Frankfort Police Department. The United States was represented by Assistant U.S. Attorneys Cynthia T. Rieker.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The PSN program was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Frankfort Brothers Plead Guilty to Wage and Hour Offenses, and one also Plead to Receiving Child PornographyRead the Press Release
FRANKFORT, Ky. – Two Frankfort brothers appeared in federal court on Thursday, before U.S. District Court Judge Gregory F. Van Tatenhove, and admitted to committing wage and hour offenses. One brother also admitted to knowingly receiving child pornography.
Fei Guo Tang, 49, pleaded guilty to knowingly receiving visual depictions of a minor engaging in sexually explicit conduct and knowingly failing to pay workers minimum wages and time-and-a-half wages for hours worked in excess of 40 hours per week.
According to his plea agreement, a forensic examination of Fei Ghou Tang’s telephone revealed five videos containing depictions of minors engaged in sexually explicit conduct. Additionally, Fei Guo Tang failed to pay a total of $60,690.36 in required overtime and minimum wages to five of his employees.
Fei Zhou Tang, 51, pleaded guilty to knowingly making false statements on an Employer’s Quarterly Unemployment Wage and Tax Report and knowingly failing to pay workers time-and-a-half wages for hours worked in excess of 40 hours per week.
Fei Zhou Tang admitted that he knowingly made the false statements on the Employer’s Quarterly Wage and Tax Report by omitting the names of undocumented workers, on multiple quarterly unemployment forms, and failing to pay overtime wages to workers who worked more than forty hours per week. According to his plea agreement, Fei Zhou Tang failed to pay a total of $229,207.26 in required overtime and minimum wages to six employees.
Fei Guo Tang was initially indicted in March 2019. He pleaded guilty to charges contained in a Second Superseding indictment, which was returned in May 2019. His brother Fei Zhou Tang was initially indicted in July 2018. He pleaded guilty to charges contained in a Second Superseding indictment, which was returned in June 2019.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Jason Crosby, U.S. Department of State, Diplomatic Security Service, Supervisory Special Agent, Criminal Division Chief; Matthew Utley, Assistant District Director, Department of Labor Wage and Hour Division; Rafiq Ahmad Special Agent in Charge, DOL Office of Inspector General; Rod Owens, Special Agent in Charge, Social Security Administration, Office of Inspector General; and Kentucky Attorney General Andy Beshear jointly announced the guilty pleas.
The investigation was conducted by the Department of State, Department of Labor, Social Security Administration, Office of Inspector General, and the Kentucky Office of the Attorney General. The United States was represented by Assistant U.S. Attorneys Hydee Hawkins, David Marye, and Dmitriy Slavin.
Fei Guo Tang is scheduled to be sentenced on February 26, 2020 at 10 a.m. He faces not less than five years and not more than 20 years for receiving child pornography. Fei Zhou Tang is also scheduled to be sentenced on February 26, 2020 at 11 a.m. He faces up to five years in prison and a maximum fine of $250,000 for making false statements. In addition, both brothers will be required to pay restitution, a money judgment in lieu of forfeiture, and a civil fine for failing to pay required wages. However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
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Fort Wayne Man Sentenced to over 10 Years in PrisonRead the Press Release
FORT WAYNE – Francisco L. Mendez, age 39, of Fort Wayne, Indiana was sentenced before U.S. District Court Judge Damon Leichty upon his plea of guilty to distribution of methamphetamine and possessing a firearm as a convicted felon, announced U.S. Attorney Kirsch.
Mendez was sentenced to 121 months in prison followed by 4 years of supervised release.
According to documents in this case, in February of 2018, Mendez distributed 5 grams or more of methamphetamine. In April of 2018, he possessed a firearm after being a twice convicted felon in Allen County Superior Court; one in April 2012 for resisting law enforcement and one in November of 2012 for carrying a handgun without a license.
This case was investigated by the Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Fort Wayne Police Department. The case was handled by Assistant United States Attorney Anthony W. Geller.
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Former Portland Nurse Pleads Guilty to Heroin TraffickingRead the Press Release
PORTLAND, Ore.—Rene Elene Griffin Nunn, 60, a resident of Vancouver, Washington pleaded guilty today to one count of conspiracy to possess with the intent to distribute controlled substances. At the time of the offense, Nunn was a registered nurse at Adventist Medical Center in Portland.
According to court documents, in February 2018, Nunn drove from Vancouver to Portland with approximately 93 grams of heroin in her purse. Based on a joint investigation conducted by the U.S. Drug Enforcement Administration (DEA) and the Clackamas County Interagency Task Force (CCITF), Nunn was located and arrested driving into Portland.
Nunn faces a maximum sentence of 20 years in prison, a $1 million fine and three years of supervised release. She will be sentenced on February 3, 2020 by U.S. District Judge Marco A. Hernandez.
This case was investigated by the DEA and CCITF and is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
Former Billings massage parlor operator sentenced to prison for transporting woman for commercial sexRead the Press Release
BILILNGS – A former Billings massage parlor operator who admitted bringing a woman from Nevada to his business to provide commercial sexual activity was sentenced today to two years in prison and five years of supervised release, U.S. Attorney Kurt Alme said.
Scot Donald Petrie, 62, of Billings, pleaded guilty in July to transportation of a person with intent to engage in criminal sexual activity.
Chief U.S. District Judge Dana L. Christensen presided.
“Mr. Petrie induced a woman to travel from Nevada to Billings so he could profit from her illegal commercial sexual activity. Such conduct exploits women and is a serious offense. This office will prosecute human traffickers to the full extent of the law,” U.S. Attorney Alme said.
Prosecutors said in court records that beginning in June 2014, Petrie helped operate King Spa and A-Spa, which permitted individuals to live at both locations to provide legitimate message services and illegal commercial sexual services. Petrie was aware of the operations and services being provided. King Spa temporarily closed in December 2018, and Petrie helped re-open the spa to provide the services.
In January, Petrie bought a bus ticket for a woman to travel from Las Vegas to Billings to live and work at A-Spa. Because of a missed connection, Petrie went to Butte to pick up the woman to transport her to Billings. The woman told law enforcement Petrie had contacted her while she was in Nevada and asked her to come to Montana. The woman said Petrie offered to pay for her bus ticket and gave her condoms when she arrived in Billings. The woman provided commercial sexual services, including intercourse, while staying at the spa, and paid Petrie half of her earnings.
Assistant U.S. Attorneys Zeno Baucus and Bryan Dake prosecuted the case, which was investigated by the FBI.
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Final men sentenced for robbing local business with a firearmRead the Press Release
CORPUS CHRISTI, Texas – Two Corpus Christi men have been ordered to federal prison after admitting to robbery and brandishing a firearm in furtherance of a crime of violence, announced U.S. Attorney Ryan K. Patrick.
Corey Alexander Newman, 26, pleaded guilty Jan. 31, while Francisco Chavera, 22, pleaded guilty July 8. Both admitted to their participation in a robbery at the Texas Food Mart in the 6100 block of Williams Aug. 5, 2018, along with Matthew Joseph Bryant, 25, and Nathealle Avori Tyrell Jones, 22, both of Corpus Christi.Today, Senior U.S. District Judge Janis Graham Jack handed Chavera a 30-month sentence for the robbery. He also received an additional 84 months for the firearms charge which must be served consecutively to the other sentence imposed. The sentences will be immediately followed by five years of supervised release. Newman received a 10-month sentence for the robbery and an additional and consecutive 36 months for the firearms charge. The sentences will be immediately followed by three years of supervised release. In handing down the sentences, the court noted the dangerousness of the offense and the need to protect the public.
Senior U.S. District Judge Janis Graham Jack previously sentenced Bryant and Jones each to a total of 114 months in prison as well as five years of supervised release following completion of their sentences.
Officers responded to the aggravated robbery and observed a vehicle matching the reported description of the suspects’ vehicle and attempted to conduct a traffic stop. The vehicle fled until crashing into a utility pole, at which time all four occupants ran. After a short foot pursuit, authorities arrested all four individuals.
At that time, law enforcement searched the vehicle and the surrounding area and discovered U.S. currency, convenience store items, cigarettes, disposable gloves and a loaded handgun with an extended magazine.
Surveillance footage at the location showed two males wearing dark clothing and bandanas covering their faces had entered the store. As one male, who was later identified as Bryant, stayed by the front door and pointed a handgun at the clerk. The other male, later confirmed to be Chavera, went behind the counter and emptied the cash register into a bag along with cigarettes and flavored cigars. Both men then took the clerk’s cellular phone and wallet before leaving the store and fleeing in a dark colored sedan Jones was driving.
Newman and Chavera have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.The Corpus Christi Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Lance Watt is prosecuting the case.
Federal Jury Convicts Pensacola Man of Armed Drug TraffickingRead the Press Release
PENSACOLA, FLORIDA – United States Attorney Lawrence Keefe, of the Northern District of Florida, announced that on Tuesday of this week, Kiondi E. Jones, 36, of Pensacola, was found guilty by a
Pensacola federal jury on multiple charges involving drug trafficking and illegal firearms possession.Evidence at trial revealed that on November 9, 2018, the Narcotics Unit of the Pensacola Police
Department executed a lawful search warrant at a residence on West Belmont Street in Pensacola.
Upon knocking and announcing their presence to execute the warrant, Jones jumped out of his bedroom window in an attempt to flee capture. Officers with the Pensacola Police Department were stationed as perimeter security and captured Jones as he attempted to make flight. Jones left behind in his bedroom trafficking amounts of heroin, methamphetamine, cocaine, and marijuana. In his bedroom, law enforcement also located a digital scale used to weigh the illicit drugs for distribution, adulterant to volumize the drugs for larger sale quantities, and hundreds of dollars in United
States currency.The Pensacola Police Department also seized a loaded Colt .45 caliber pistol from Jones’s bedroom that was located next to the drugs and currency. The firearm was being used to protect the drug distribution business Jones was operating from the residence. Jones, who is a multi- convicted felon, did not have the right to lawfully possess this firearm nor the extra boxes of ammunition found in the bedroom. Jones has prior state court convictions for crimes such a drug trafficking, resisting arrest, and tampering with evidence.
“We are grateful for the work of the Pensacola Police Department and the effort of the men and women of the police force who risk their lives executing judicially authorized search warrants in an effort to combat illegal drug trafficking and firearm possession in our community,” said United
States Attorney Keefe. “As demonstrated by this prosecution, federal law enforcement working side-by-side with Pensacola Police Department is making the community safer.”Assistant United States Attorneys David L. Goldberg and Kaitlin Weiss are prosecuting the case following a joint investigation by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the
Pensacola Police Department.Based upon his multiple prior state court felony convictions, Jones faces up to thirty years’ imprisonment on the drug trafficking charges and up to life imprisonment on the firearm charges. A sentencing date has been set for January 21, 2020, at 10:30 am at the United States Courthouse in
Pensacola.The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of
Florida website. For more information about the U.S. Attorney’s Office, Northern District of
Florida, visit http://www.justice.gov/usao/fln/index.html.Escaping from Halfway House Leads to Additional Federal Prison TimeRead the Press Release
A Cedar Rapids man who was escaped from federal custody at the Gerald R. Hinzman Center in Cedar Rapids was sentenced to additional time in federal prison on October 29, 2019, in federal court in Cedar Rapids.
Ramius Hardiman, age 26, from Cedar Rapids, Iowa, received the prison term after a June 11, 2019 guilty plea to escape from federal custody.
In a plea agreement, Hardiman admitted that beginning September 14, 2018, he was in federal custody pursuant to federal court order as a condition of his supervised release sentence for being a felon in possession of a firearm. On November 15, 2018, Hardiman left the facility claiming he was going to work and never returned. Hardiman was found and arrested in North Liberty, Iowa, on January 9, 2019.
Hardiman was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Hardiman was sentenced to serve an additional eight months’ imprisonment, which must be served after he finishes serving a fourteen-month term of imprisonment imposed for violating his supervised release. He must also serve a three-year term of supervised release after the prison term.
The case is being prosecuted by Assistant United States Attorney Patrick Reinert and was investigated by United States Marshals Service and the Northern Iowa Fugitive Task Force, with the assistance of the North Liberty Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is CR-19-00050.
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Ellwood City Cocaine Dealer Sentenced to 15 Years in PrisonRead the Press Release
PITTSBURGH - A resident of Lawrence County, Pennsylvania, has been sentenced in federal court to 15 years (180 months) in prison and six years of supervised release on his conviction of conspiracy to distribute cocaine and distribution of cocaine, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Arthur J. Schwab imposed the sentence on Taurean Potter, age 34, of Ellwood City Pennsylvania.
According to information presented to the court during his trial, Potter sold cocaine out of Ellwood City bars in 2017 and 2018, and he sold cocaine to other cocaine dealers who would further distribute the cocaine. In addition, on October 14, 2017, Potter sold cocaine to an undercover narcotics agents with the Pennsylvania Attorney General’s Office.
Assistant United States Attorney Brendan T. Conway and Yvonne M. Saadi prosecuted this case on behalf of the government.
United States Attorney Brady commended the Pennsylvania Attorney General’s Office, in conjunction with the Drug Enforcement Administration and the Lawrence County Drug Task Force, for the investigation leading to the successful prosecution of Potter.
Dominican National Pleads Guilty to Identity Theft and Stealing MassHealth BenefitsRead the Press Release
BOSTON – A Dominican national formerly residing in Lawrence pleaded guilty yesterday in federal court in Boston to Social Security and benefit fraud.
Ismael Robles Tejeda, 30, pleaded guilty to one count of false representation of Social a Security number and one count of false statements in matters relating to health care. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for Jan. 29, 2019.
On Aug. 3, 2015, Robles Tejeda applied for a Massachusetts identification card using the name, date of birth and Social Security number of a Puerto Rican citizen. In October 2015, Robles Tejeda used that Massachusetts identification card to apply for and receive over $17,500 worth of MassHealth benefits in the Puerto Rican citizen’s name. When Robles Tejeda was arrested in April 2019, he had in his pocket a Massachusetts driver’s license issued to him in the identity of the Puerto Rican citizen. Robles Tejeda was identified, among other things, from a fingerprint match with a Dominican Republic identification document issued to him and bearing his photo.
The charges provide for a sentence of up to five years in prison, three years of supervised release, a fine of $250,000, restitution and forfeiture. According to a plea agreement, Robles Tejeda will be sentenced to 18 months in prison and ordered to pay restitution. He will be subject to deportation proceedings upon completion of his sentence. 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; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and Phillip Coyne, Special Agent in Charge of Department of Health and Humand Services, Office of Inspector General, Office of Investigations, Boston Field Division made the announcement today. Assistants U.S. Attorney Lindsey E. Weinstein and Kenneth G. Shine of Lelling’s Major Crimes Unit are prosecuting the case.
Detroit Man Sentenced to Prison for Federal Drug CrimesRead the Press Release
CHARLESTON, W.Va. – A Detroit man was sentenced to prison for federal drug crimes, announced United States Attorney Mike Stuart. Edward King, 30, was sentenced to 30 months in prison for conspiracy to distribute a quantity of oxycodone and possession with intent to distribute oxycodone.
“King is the second pill peddler from Michigan sentenced to federal prison this week. A third was convicted and will be sentenced later. Out of state drug dealers are the norm in West Virginia,” said United States Attorney Mike Stuart. “We want the world to visit and enjoy West Virginia but the drug dealers are not welcome. Almost Heaven would be closer to heaven if not for the drug thugs and poison peddlers that violate our communities and our families.”
King previously admitted that he conspired with another man in April 2015 to distribute oxycodone, specifically, 115 oxycodone 30 mg tablets.
The Kanawha County Sheriff’s Department and the West Virginia State Police conducted the investigation. Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney Ryan A. Saunders is handling the prosecution.
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Detroit Man Sentenced to 10 Years in Prison for Selling Carfentanil that Caused 2 Beaver County Residents to Overdose, One FatallyRead the Press Release
PITTSBURGH -A Michigan resident has been sentenced in federal court to 10 years’ imprisonment on his conviction of distribution of carfentanil, United States Attorney Scott W. Brady announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Reginald Davis, age 32, of Detroit, MI.
According to information presented to the court, on December 17, 2016, Davis distributed carfentanil, which the victims believed to be heroin, which caused the overdose death of victim B.L., a Beaver County resident, and caused the non-fatal overdose of victim K.S., also a Beaver County resident, who was later revived with Narcan. Davis also sold carfentanil in a controlled drug buy conducted by the New Brighton Area Police Department the same day and possessed additional quantities of carfentanil which he intended to distribute.
According to the Drug Enforcement Administration, carfentanil is a synthetic opioid that is 10,000 times more potent than morphine and 100 times more potent than fentanyl, which itself is 50 times more potent than heroin. Carfentanil is a Schedule II substance under the Controlled Substances Act and is used as a tranquilizing agent for elephants and other large mammals.
In addition to the sentence of imprisonment, Judge Fischer ordered the defendant to pay restitution in the amount of $3,775.60 to the family of victim B.L.
Assistant United States Attorneys Tonya Sulia Goodman and Timothy Lanni prosecuted this case on behalf of the government.
United States Attorney Brady commended the DEA and the New Brighton Area Police Department for the investigation leading to the successful prosecution of Davis.
Department of Justice to Announce $165 million in Grant Funding to Agencies Within the State of North CarolinaRead the Press Release
RALEIGH, NC – Department of Justice officials, North Carolina Governor Roy Cooper and State Bureau of Investigation Director Bob Schurmeier will announce Department of Justice grants awarded to state, local and tribal law enforcement agencies.
WHAT: Announcement of $165 million in Department of Justice grants to the State of North Carolina to support violent crime reduction, opioid/substance abuse reduction efforts, school safety, victim services, transitional housing for domestic violence victims, law enforcement activities, justice mental health, and juvenile justice.
WHO: US Attorney for the Eastern District of North Carolina Robert J. Higdon, Jr.
Governor Roy Cooper
US Attorney for the Middle District of North Carolina Matthew G.T. Martin
NC State Bureau of Investigation Director Bob Schurmeier
Department of Justice COPS Office Director Keith
WHEN:Friday, November 1, 2019
11:00 a.m. EDT
WHERE: Office of the United States Attorney for the Eastern District
150 Fayetteville Street
Suite 2100
Raleigh, North Carolina 27601OPEN PRESS
MEDIA CHECK-IN: Media representatives should check in with Don Connelly no later than 10:45 a.m.
Convicted Felon Sentenced to 46Months in Federal Prison for Possession of a FirearmRead the Press Release
Memphis, TN – Robert Darnell, 63, has been sentenced to 46 months in federal prison for unlawful possession of firearms. D. Michael Dunavant, U.S. Attorney announced the sentence today.
According to information presented in court, on April 4, 2017, Memphis Police Officers responded to an aggravated assault call at a rooming house at 967 Randle Street. The officers found the victim, Hosea Bland, bleeding from two gunshot wounds. The victim stated "Robert shot me." Bland was transported to Regional One Health for treatment. Police officers recovered several .45 caliber shell casings. It appeared the defendant and the victim had both been drinking and an argument precipitated the shooting.
The officers located Darnell in the lower bunk bed of an adjacent room, as well as two handguns, a .45 caliber Hi-Point pistol and a .40 caliber Hi-Point pistol. While Darnell did not have any recent felony convictions, he was a convicted felon with prior convictions in the State of Mississippi for burglary in 1975, aggravated assault in 1977, and larceny in 1984.
On October 31, 2019, U.S. District Court Judge John T. Fowlkes Jr., sentenced Darnell to 46 months in federal prison followed by 2 years supervised release. There is no parole in the federal system.
The Memphis Police Department investigated this case.
U.S. Attorney D. Michael Dunavant said, "Convicted felons who possess firearms are an inherent danger to the community, and in this case, Darnell was a violent offender who possessed and violently discharged a firearm despite his prior felony conviction history. There is a consequence for such criminal behavior, and we will aggressively enforce federal law to protect victims and uphold the rule of law."
Special Assistant U.S. Attorney Sam Winnig prosecuted this case on behalf of the government. SAUSA Winnig is currently assigned from the Shelby County District Attorney General’s Office for the purpose of prosecuting violent crimes and firearms offenses in federal court.
Colorado Tax Defier Sentenced to Prison for EvasionRead the Press Release
A homebuilder and the owner of Tarryall River Log Homes was sentenced to 60 months in prison yesterday for tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents and evidence presented during the trial, Lawrence Martin Birk founded a sole proprietorship, Tarryall River Log Homes LLC, in 2000. Although the company, which sold and built log homes, was profitable, Birk did not voluntarily pay federal taxes on its income. When the Internal Revenue Service (IRS) began collection efforts, including visiting Birk at his home, he hired a tax firm to prepare eight years’ worth of delinquent tax returns. However, Birk concealed pertinent information from the tax firm, including over $400,000 of retirement distributions that he funneled through a sham company. After filing his delinquent tax returns, which omitted the retirement income, Birk still did not pay what the returns acknowledged was due and owing. Instead, he sent the IRS threatening correspondence that espoused the frivolous tax arguments of known tax defier organizations.
After being notified that the IRS intended to seize money from his bank accounts for taxes owed, Birk took steps to shield his money against the IRS’ collection efforts. Immediately or shortly after depositing funds into his bank account, Birk purchased cashier’s checks to reduce his balance and impede the IRS’s ability to seize the money. Birk’s outstanding tax liabilities, including taxes, interest, and penalties, were over $2 million for 1998 to 2005. He has not filed returns or made any tax payments for the 2006 through 2018 tax years. To date, his debt is more than $3.5 million.
In addition to the term of imprisonment, Judge Blackburn also ordered Birk to serve three years of supervised release and to pay restitution to the IRS in the amount of $1,858,826.
Principal Deputy Assistant Attorney General Zuckerman commended the IRS agents who conducted the investigation, and Tax Division Assistant Chief Elizabeth C. Hadden, Trial Attorney Christopher Magnani, and Paralegal Specialist Saundra Burgess, who prosecuted the case.
Cocaine Trafficker Sentenced to 30 YearsRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Victor Estrada, 48, of Laredo, Texas, was sentenced in federal court for his participation in an interstate drug distribution organization. Court documents showed that Estrada and his co-defendant Linda Lancon, 29, also of Laredo, were stopped in a bobtail tractor on Interstate 65 in Mobile County, by Saraland police. The officers found 35 kilograms of cocaine in a cardboard box behind the passenger seat in the cab after a drug detecting dog gave a positive indication for the odor of narcotics. Officers later discovered a tracking device in the tractor, the records of which showed several prior trips made by the vehicle to the Atlanta, Georgia, area, which was the intended destination for the drugs seized in this case. Estrada pled guilty to the charge of conspiracy to possess with intent to distribute cocaine in March of 2019.
United States District Court Judge Terry F. Moorer imposed a sentence of 30 years imprisonment, finding that Estrada was a career criminal with a high risk of recidivism. The judge also found that Estrada’s history of domestic violence also established that he was a threat to the community. Judge Moorer ordered that Estrada will serve 5 years of supervised release following his term of imprisonment, during which he will undergo drug abuse testing and treatment. No fine was imposed but Estrada was ordered to pay $100 in special mandatory assessments.
The case was investigated by the Saraland Police Department and the Department of Homeland Security, Homeland Security Investigations. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
City of Seattle Files Report on Comprehensive Review of Seattle Police Department’s Uses of ForceRead the Press Release
SEATTLE - On Thursday, in accordance with the Court-approved plan for demonstrating sustained compliance for two years, the City of Seattle filed its report from a comprehensive self-review of the Seattle Police Department’s (SPD) uses of force, which includes a verification review of cases by the Department of Justice (DOJ) and the Monitoring Team to determine whether the force used was reasonable, necessary and proportionate. The City also filed a report on its review of SPD’s use of Terry stops and detentions, also with verification by the DOJ and Monitoring Team, and a review of their stops and detention policies an “outcome report” on SPD’s crisis intervention program, providing statistics on encounters with people in crisis.
Together, these filings in U.S. District Court demonstrate that SPD’s reformed practices relating to use of force, crisis intervention, and stops and detentions have allowed it to sustain compliance with the consent decree.
“Use of force was central to the initial DOJ investigation and the subsequent reforms required by the consent decree,” said Brian Moran, U.S. Attorney for the Western District of Washington. “SPD continues to demonstrate that it remains in compliance with one of the core issues addressed in the consent decree, including very low uses of force. A clear indicator of the success of SPD’s new approach is the use of de-escalation training and tactics by officers in their encounters with people experiencing crisis. The goal of the consent decree was to fundamentally change the policies, training, and internal supervision and accountability around uses of force, and it is evident that those changes have taken root and are being sustained. SPD has the structures and systems in place to critically look at individual incidents and overall data to ensure continued constitutional policing once the consent decree is complete.”
In its 2011 investigation, DOJ found that there were at least 1,230 incidents involving a serious use of force in the 28-month period from January 2009 to April 2011. DOJ determined that SPD used unconstitutional force in 20 percent of incidents involving a serious use of force (now known at Type II and III uses of force). Around 70 percent of all uses of force were against people experiencing crisis.
After the implementation of significant reforms required by the consent decree, the Federal Monitor found that there was a sixty 60 percent reduction in serious use of force, to 487 incidents, in the 28-month period from July 2014 to October 2016. Since that time, SPD has sustained this reduction. From January 2017 to April 2019, there were even fewer serious force incidents (454) in a comparable 28-month period. Moreover, the vast majority (83 percent) of all force used during the most recent 28-month period involved no greater than the lowest level of reportable force. Further, out of all 2,252 uses of force, only 12 (or 0.5 percent) were determined to be out of policy.
Use of force against those experiencing behavioral crisis remains low and resolutions that result in a connection to services remain high. And, as indicated in the report filed today, SPD reported that a Crisis Intervention Training-certified officer was on the scene for 82 percent of the 16,574 crisis contacts from January 2018 to April 2019.
With respect to stops and detentions, the DOJ investigation revealed that SPD lacked a reliable way to track social contacts versus Terry stops. One of DOJ’s requirements was better data collection and revised policies to mandate Terry stop reporting by SPD officers. In mid-2015, SPD introduced its new Terry template, which allowed the department to better track this metric. SPD is now able to track and determine whether stops and frisks had adequate reasonable suspicion, and, in the most recent review, SPD has sustained compliance with the requirements of the consent decree and maintained the high level of constitutionality in its stops found to be in place by the Monitoring Team and DOJ during Phase I of the consent decree period.
Boone County Man Sentenced to Federal Prison for Methamphetamine TraffickingRead the Press Release
CHARLESTON, W.Va. – A Boone County man was sentenced to federal prison for a drug crime, announced United States Attorney Mike Stuart. Benjamin John Mooney, 42, of Costa was sentenced to 30 months in prison for distribution of methamphetamine. Upon completing his prison sentence, Mooney will serve an additional term of five years of supervised release.
“546 grams. Think about it. 546 grams. It’s a crazy volume of drugs,” said United States Attorney Mike Stuart. “Great work by all involved in getting this meth dealer off the streets and away from our families.”
Mooney previously admitted that he sold methamphetamine to a police informant on four occasions between July 20, 2017 and February 22, 2018. Upon being arrested, Mooney admitted that he had sold approximately 546 grams of methamphetamine during the year prior to October 2018.
The U.S. 119 Task Force conducted the investigation. Former Assistant United States Attorney Drew Inman handled the prosecution. Senior United States District John T. Copenhaver, Jr. imposed the sentence.
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Auburn Man Sentenced to 5 Years in PrisonRead the Press Release
FORT WAYNE – Jeffrey Gaunt, age 62, of Auburn, Indiana was sentenced before U.S. District Court Judge Holly A. Brady upon his plea of guilty to manufacturing over 100 marijuana plants, announced U.S. Attorney Kirsch.
Gaunt was sentenced to 60 months in prison followed by 4 years of supervised release.
According to documents in this case, in June 2018, acting on a tip an Indiana State Police Marijuana Eradication Helicopter was flying over Mr. Gaunts residence. While flying over, officers observed Gaunt pulling up plants that appeared to be marijuana and trying to flee. The helicopter landed and officers detained Gaunt. A subsequent search warrant served on his property found 177 rooted marijuana plants, 60 non-rooted marijuana clones, sealed packages of marijuana, firearms and items consistent with a marijuana grow operation. Mr. Gaunt is a convicted felon for Burglary and was sentenced to over 12 years in prison.
The case was investigated by Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, the Indiana State Police Marijuana Eradication Team and the Allen County Police Drug Task Force. The case was handled by Assistant United States Attorney Stacey R. Speith.
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Athens Man Sentenced to 57 Months in Prison for Felon in Possession of a FirearmRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced an Athens man to 57 months in prison for being a felon in possession of a firearm, announced United States Attorney Jay E. Town and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Marcus Watson.
United States District Judge R. David Proctor sentenced KEVAUN ROOSEVELT TURNER, 28, for being a felon in possession of a pistol, stemming from an incident where he shot someone after a verbal argument. The case was adopted by the United States Attorney’s Office for the Northern District of Alabama as part of their Prosecutor-to-Prosecutor Program, or P3, wherein local district attorney’s offices submit cases for review and prosecution for federal rather than state offenses.
“This felon has been a suspect or charged in other violent crimes where witness and victim cooperation too often waned, making state prosecution nearly impossible”, Town said. “This is why the phalanx formed by local, state, and federal law enforcement and prosecutors is moving the needle to reduce violent crime. Our Prosecutor-to-Prosecutor Program is working. Our PSN initiatives are working. When the alpha criminals think they might walk free, they are just turning into another net. This time a federal net. And this time, 57 months in a federal prison, where there is no sanctuary of parole.”
“Protecting the public by the removal of the criminal element that commits acts of violence with a firearm was the result of the combined efforts by ATF, Athens Police Department and the U.S. Attorney’s Office,” Watson said.
ATF investigated the case along with the Athens Police Department, which Assistant U.S. Attorney Robert Becher, Sr. prosecuted.
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Arizona Man Indicted for Sending Methamphetamine Through the MailRead the Press Release
BOSTON – An Arizona man was indicted in federal court in Boston yesterday in connection with his sending methamphetamine through the U.S. mail from Arizona to Massachusetts.
Brandon Greenberg, a/k/a “Brandon Valentine,” a/k/a “Adrian,” 27, of Phoenix, Ariz., was charged with conspiring to distribute methamphetamine and distribution of methamphetamine.
According to charging documents, Greenberg mailed more than 20 parcels containing methamphetamine from Arizona to two residential addresses in Boston and Somerville. A search warrant was executed on one of the parcels and revealed over 900 grams of methamphetamine hidden inside a towel and inside a stuffed animal. Later in the investigation, agents conducted a controlled purchase of methamphetamine from Greenberg and seized 486 grams hidden inside three cereal boxes that were then placed in a package mailed by Greenberg. During the execution of a search warrant at Greenberg’s residence in Phoenix, investigators seized an additional 486 grams of methamphetamine from Greenberg’s bedroom.
United States Attorney Andrew E. Lelling; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; Melissa Llosa, Inspector in Charge of the U.S. Postal Inspection Service, Phoenix Division; Brian D. Boyle, Special Agent in Charge Of the Drug Enforcement Administration, New England Division; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Boston Police Commissioner William G. Gross; and Peoria (AZ) Police Chief Art Miller made the announcement today. The Middlesex County District Attorney’s Office, Suffolk County District Attorney’s Office, and the Arlington Police Department assisted in the investigation. Assistant U.S. Attorney James E. Arnold of Lelling’s Narcotics & Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Activity in the United States Attorney's OfficeRead the Press Release
Federal District Court Judge Alan B. Johnson sentenced OSCAR MACIAS-UGARTE, 40, of Mexico on October 25, 2019 for illegal re-entry of a previously deported alien into the United States. Macias-Ugarte was arrested in Casper, Wyoming. He/ received time served plus ten days to allow for deportation proceedings and ordered to pay a $100.00 special assessment. Macias-Ugarte had been previously deported to Mexico in 2014. The U.S. Department of Homeland Security investigated this case.
Federal District Court Judge Alan B. Johnson sentenced DAVID SCOTT MURRAY, 54, of Granbury, Texas on October 28, 2019 for carrying a firearm during and in relation to a drug trafficking crime. Murray was arrested in Laramie, Wyoming. He received sixty months of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay a $100.00 special assessment. The Wyoming Highway Patrol, Wyoming Division of Criminal Investigation and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case.
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. 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.
Federal District Court Judge Alan B. Johnson sentenced DIEGO ARMANDO SANTOS-DIAZ, 29, of Mexico on October 25, 2019 for illegal re-entry of a previously deported alien into the United States. Santos-Diaz was arrested in Jackson, Wyoming. He received six months of imprisonment, is subject to deportation upon his release, and was ordered to pay a $100.00 special assessment. Santos-Diaz was previously deported in 2017. The U.S. Department of Homeland Security investigated this case.
Federal District Court Judge Nancy D. Freudenthal sentenced JONATHAN WILLIAM DAVIS, 31, of Toledo, Ohio on October 28, 2019 for interstate travel with intent to engage in illicit sexual conduct. Davis was arrested in Cheyenne, Wyoming. He received sixty months of imprisonment, to be followed by sixty months of supervised release, and ordered to pay a $100.00 special assessment. The Laramie County Sheriff’s Office and the FBI investigated this case.
Chief Federal District Court Judge Scott W. Skavdahl sentenced ANDREA ALDACO, 30, of Wasco, California on October 30, 2019 for possession with intent to distribute methamphetamine. Aldaco was arrested in Laramie, Wyoming. She received eighty-four months of imprisonment, to be followed by sixty months of supervised release, and ordered to pay a $100.00 special assessment. The Laramie Police Department, Wyoming Highway Patrol, Wyoming Division of Criminal Investigation and the DEA investigated this case.
Chief Federal District Court Judge Scott W. Skavdahl sentenced ADRIAN SEVERO REYNA, SR., 44, of Wasco, California on October 30, 2019 for possession with intent to distribute methamphetamine. Reyna Sr. was arrested in Laramie, Wyoming. He received one hundred thirty one months of imprisonment, to be followed by sixty months of supervised release, and ordered to pay a $100.00 special assessment. The Laramie Police Department, Wyoming Highway Patrol, Wyoming Division of Criminal Investigation and the DEA investigated this case.
Federal District Court Judge Nancy D. Freudenthal sentenced NATHAN ANDREW SELTZER, 32, of Grand Junction, Colorado on October 28, 2019 for being a felon and unlawful user of a controlled substance in possession of a firearm and ammunition. Seltzer was arrested in Cheyenne, Wyoming. He received thirty-six months of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay a $100.00 special assessment. The Wyoming Highway Patrol, Wyoming Division of Criminal Investigation, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case.
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. 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.
30 October 2019
Wichita Man Charged with Five Armed RobberiesRead the Press Release
WICHITA, KAN. – A Wichita man was charged in federal court Tuesday with five armed robberies, U.S. Attorney Stephen McAllister said.
Darren Green, 20, Wichita, Kan., was charged with five counts of robbery and five counts of brandishing a handgun during the robberies. Green was charged with the following robberies:
July 8, 2019: Burger King, 3500 S. Meridian, Wichita, Kan.
Aug. 28, 2019: Meridian Grocery, 2719 S. Meridian, Wichita, Kan.
Aug. 29, 2019: Domino’s Pizza, 2047 West 21st, Wichita, Kan.
Oct. 20, 2019: Wal-Mart, 3030 N. Rock Road, Wichita, Kan.
Oct. 21, 2019: Advance America, 601 N. Ridge Road, Wichita, Kan.
An affidavit filed in the case alleges that during the first robbery Green wore a skeleton mask, pointed a gun at an employee and said, “Don’t be stupid – get on the ground.”
The affidavit alleges that during the Wal-Mart robbery Green wore a yellow Wal-Mart vest, placed a gun against an employee’s ribs, and handed an employee a note saying, “I have AIDS. Do not panic. Put all the money in bag.”
If convicted, he could face up to 20 years and a fine up to $250,000 on each robbery count, and not less than seven years and a fine up to $250,000 on each count of brandishing a firearm. The FBI, the Wichita Police Department and the Safe Streets Task Force investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Whitewood Man Sentenced for Unlawfully Guiding HuntsRead the Press Release
United States Attorney Ron Parsons announced that a Whitewood, South Dakota, man convicted of committing federal wildlife violations of the Lacey Act was sentenced on October 28, 2019, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Everett T. Mackaben, Jr., was sentenced to 2 years of probation, during which the court ordered revocation of all hunting privileges. The court ordered Mackaben to pay $26,825 in restitution to the Oglala Sioux Tribe Parks and Recreation Authority, a $10,000 fine, and a $100 special assessment to the Federal Crime Victims Fund.
“The illegal, commercial exploitation of Tribal lands is a serious issue,” said U.S. Attorney Parsons. “Our office will continue to work with the Oglala Sioux Tribe and all of the Tribal governments across South Dakota to aggressively pursue these cases.”
Mackaben was indicted for violating the Lacey Act by a federal grand jury on April 17, 2018. He pleaded guilty on July 8, 2019.
The offense involved Mackaben acting as a commercial guide for out-of-state deer hunters. Mackaben regularly guided the non-resident hunters on hunts on land within Oglala Lakota County, managed by the Oglala Sioux Tribe Parks and Recreation Authority. The hunters paid Mackaben for guiding and assisting in obtaining hunting licenses. Mackaben would regularly assist the hunters in obtaining licenses to hunt in other areas that did not include Oglala Lakota County, but then guided the hunts on land within that county. After deer were illegally taken in violation of tribal and state law, Mackaben also would arrange shipment of deer to the hunters’ home states.
This case was investigated by the U.S. Fish & Wildlife Service and the Oglala Sioux Tribe Parks and Recreation Authority. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Mackaben was released to begin serving his term of probation.
Wetzel County man admits to firearms violationRead the Press Release
WHEELING, WEST VIRGINIA – Martin Anderson, of New Martinsville, West Virginia, has admitted to a firearms violation, U.S. Attorney Bill Powell announced.
Anderson, age 31, pled guilty to one count of “Unlawful Possession of a Firearm.” Anderson, a person prohibited from having firearms, is accused of possessing a .223 caliber rifle and two .22 caliber rifles in Wetzel County in June 2018.
Anderson 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.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Westlake man sentenced to nearly five years in prison for his role in a conspiracy to defraud the Cleveland Clinic out of $2.7 millionRead the Press Release
A Westlake man was sentenced to nearly five years in prison for his role in a conspiracy to defraud the Cleveland Clinic out more than $2.7 million.
Wisam Rizk was sentenced to 58 months in prison and ordered to pay $2.7 million in restitution. Rizk previously pleaded guilty to conspiracy to commit wire fraud and honest services fraud and related charges. Rizk will be deported upon completion of his sentence
Rizk worked as Chief Technology Officer at Interactive Visual Health Records, a company formed by Cleveland Clinic Innovations to develop a visual medical charting concept of certain Clinic physicians into a functioning, marketable product, according to the indictment.
Rizk was hired at IVHR by Gary Fingerhut, the former executive director at Cleveland Clinic Innovations. Fingerhut previously pleaded guilty to his role in the conspiracy and was sentenced to 30 months in federal prison.
Rizk and Fingerhut, as a condition of their employment, were prohibited from receiving any financial benefit or having any personal or familial financial interests in companies the Clinic did business with, unless they were expressly disclosed to, and approved by, the Clinic.
Rizk and others caused to be incorporated a shell company known as iStarFZE LLC (ISTAR) that did not actually perform or provide any goods or services. It was established in the name of a nominee owner. Rizk caused ISTAR to establish a web site and email addresses and a mailing address in New York City to create the false impression it was an operational business, according to the indictment.
Rizk caused ISTAR to submit a bid to the Clinic to develop and design IVHR’s software and to increase the price the Clinic paid for the software design and development, all without disclosing his financial interest in ISTAR, according to the indictment.
Rizk periodically paid Fingerhut a “referral” or “commission” fee in return for Fingerhut not disclosing the fraud scheme, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorney Rebecca Lutzko following an investigation by the Federal Bureau of Investigation.
Walker County Man Sentenced to 151 months in Prison for Distribution of MethamphetamineRead the Press Release
BIRMINGHAM, Ala. – A Walker County man who was selling methamphetamine out of his Nauvoo, Alabama business was sentenced on October 24th, announced U.S. Attorney Jay E. Town and Drug Enforcement Administration Assistant Special Agent in Charge Clay Morris.
U.S. District Judge L. Scott Coogler sentenced THOMAS SCOTT NIX, 54, Nauvoo, to 151 months in prison for dealing in methamphetamine. Nix pled guilty to 4 counts of distribution of methamphetamine in April.
“Methamphetamine is a powerful and highly addictive substance that continues to plague our communities, leaving nothing behind but tragedy, violence, and addiction in its wake,” Town said. “Those who sell this poison destroy the user and their families. The idea that selling drugs is a victimless crime is a fiction. This sentence proves it is not a minor crime as well.”
“Methamphetamine continues to devastate communities across Alabama,” Morris said. “Today’s sentencing is a reminder to both drug dealers who sell these highly addictive drugs and the families they try to destroy. DEA will not tolerate drug dealers like Thomas Nix and there is no limit to our pursuit in bringing you to justice. To the great citizens of Walker county and all communities across Alabama, DEA stands with you. You are not alone in this fight.”
Nix was arrested following an investigation of methamphetamine distribution in the Walker County area in the spring of 2018. During the investigation law enforcement learned Nix was routinely selling out of the shop on his property.
DEA, along with the Alabama Drug Task Force and the Jasper Police Department Narcotics Division investigated the case, which Assistant United States Attorney Jonathan Cross prosecuted.
Wakpala Woman Charged with Assaulting a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that a Wakpala, South Dakota, woman has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer.
Alyssa Briggs, age 29, was indicted on October 16, 2019. She appeared before U.S. Magistrate Judge William D. Gerdes on October 28, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in federal prison and a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on September 25, 2019, Briggs did forcibly assault, resist, oppose, impede, intimidate, and interfere with Bureau of Indian Affairs officers while the officers were engaged in their official duties, and said conduct involved physical contact and use of a dangerous weapon that is shod feet.
The charge is merely an accusation and Briggs is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Kirsten Jasper is prosecuting the case.
Briggs was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
United States Reaches Settlement to Recover More Than $700 Million in Assets Allegedly Traceable to Corruption Involving Malaysian Sovereign Wealth FundRead the Press Release
The Department of Justice has reached a settlement of its civil forfeiture cases against assets acquired by Low Taek Jho, aka Jho Low, and his family using funds allegedly misappropriated from 1Malaysia Development Berhad (1MDB), Malaysia’s investment development fund, and laundered through financial institutions in several jurisdictions, including the United States, Switzerland, Singapore and Luxembourg.
These assets, located in the United States, the United Kingdom and Switzerland, are estimated to be worth more than $700 million. With the conclusion of this settlement, together with the prior disposition of other related forfeiture cases, the United States will have recovered or assisted in the recovery of more than $1 billion in assets associated with the 1MDB international money laundering and bribery scheme. This represents the largest recovery to date under the Department’s Kleptocracy Asset Recovery Initiative and the largest civil forfeiture ever concluded by the Justice Department.
“As alleged in the complaints, Jho Low and others, including officials in Malaysia and the United Arab Emirates, engaged in a brazen multi-year conspiracy to launder money embezzled or otherwise misappropriated from 1MDB, and he used those funds, among other things, to engage in extravagant spending sprees, acquiring one-of-kind artwork and luxury real estate, gambling freely at casinos, and propping up his lavish lifestyle,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “This settlement agreement forces Low and his family to relinquish hundreds of millions of dollars in ill-gotten gains that were intended to be used for the benefit of the Malaysian people, and it sends a signal that the United States will not be a safe haven for the proceeds of corruption.”
“A staggering amount of money embezzled from 1MDB at the expense of the people of Malaysia was laundered through the purchase of big-ticket assets in the U.S. and other nations. Thanks to this settlement, one of the men allegedly at the center of this massive scheme will lose all access to hundreds of millions of dollars,” said U.S. Attorney Nicola T. Hanna of the Central District of California. “The message in this case is simple: the United States is not a safe haven for pilfered funds. Our strict anti-money laundering controls are effective, and we will seize assets used by criminals to conceal ill-gotten gains.”
“Today's settlement with Jho Low demonstrates the continued commitment of the FBI to root out the fraud and selfishness of the corrupt individuals who conspired to pay bribes and launder funds which belong to the Malaysian people,” said FBI Assistant Director Terry Wade of the Criminal Investigative Division. “The FBI's dedicated International Corruption Squads will continue to combat foreign corruption which reaches our shores. We will not allow criminals, foreign or domestic, to use the United States in furtherance of their criminal activities.”
“The action announced today will allow the United States government to deny Mr. Low the use of the assets purchased with this extraordinarily large sum of money he allegedly misappropriated from 1MDB and the people of Malaysia,” said Chief Don Fort of IRS Criminal Investigations (IRS-CI). “Mr. Low allegedly attempted to launder these funds through multiple international jurisdictions and a web of shell corporations, but his greed finally caught up with him. This case is a model for international cooperation in significant cross-border money laundering investigations”
According to the civil forfeiture complaints, from 2009 through 2015, more than $4.5 billion in funds belonging to 1MDB were allegedly misappropriated by high-level officials of 1MDB and their associates, including Low, through a criminal conspiracy involving international money laundering and bribery. 1MDB was created by the government of Malaysia to promote economic development in Malaysia through global partnerships and foreign direct investment, and its funds were intended to be used for improving the well-being of the Malaysian people.
Under the terms of the settlement, Low, his family members, and FFP, a Cayman Islands entity serving as the trustees overseeing the assets at issue in these forfeiture actions, agreed to forfeit all assets subject to pending forfeiture complaints in which they have a potential interest. The trustees are also required to cooperate and assist the Justice Department in the orderly transfer, management and disposition of the relevant assets. From the assets formerly managed by FFP, the United States will release $15 million to Low’s counsel to pay for legal fees and costs. Under the agreement, none of those fees may be returned to Low or his family members. The assets subject to the settlement agreement include high-end real estate in Beverly Hills, New York and London; a luxury boutique hotel in Beverly Hills; and tens of millions of dollars in business investments that Low allegedly made with funds traceable to misappropriated 1MDB monies.
Low separately faces charges in the Eastern District of New York for conspiring to launder billions of dollars embezzled from 1MDB and for conspiring to violate the Foreign Corrupt Practices Act (FCPA) by paying bribes to various Malaysian and Emirati officials, and in the District of Columbia for conspiring to make and conceal foreign and conduit campaign contributions during the United States presidential election in 2012. The charges in the indictments are merely allegations, and defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. This agreement does not release any entity or individual from filed or potential criminal charges.
The assets being forfeited subject to this settlement are in addition to the nearly $140 million in assets the U.S. previously forfeited in connection with Low’s investment in a business entity related to the Park Lane Hotel in New York, as well as a super-yacht, valued at over $120 million, seized by law enforcement authorities in Indonesia at the request of the Justice Department and recovered by Malaysian authorities directly from Indonesia. Following conclusion of today’s settlement, several civil forfeiture complaints arising out of the 1MDB criminal conspiracy remain pending against assets associated with other alleged co-conspirators.
The FBI’s International Corruption Squads in New York City and Los Angeles and the IRS-CI are investigating the case. Deputy Chief Woo S. Lee and Trial Attorneys Kyle R. Freeny, Joshua L. Sohn, Barbara Levy and Jonathan Baum of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorneys John Kucera, Michael R. Sew Hoy and Steven R. Welk of the Central District of California are prosecuting the case. The Criminal Division’s Office of International Affairs is providing substantial assistance.
The Department also appreciates the significant assistance provided by the Attorney General’s Chambers of Malaysia, the Royal Malaysian Police, the Malaysian Anti-Corruption Commission, the Attorney General’s Chambers of Singapore, the Singapore Police Force-Commercial Affairs Division, the Office of the Attorney General and the Federal Office of Justice of Switzerland, the judicial investigating authority of the Grand Duchy of Luxembourg and the Criminal Investigation Department of the Grand-Ducal Police of Luxembourg.
The Kleptocracy Asset Recovery Initiative is led by a team of dedicated prosecutors in the Criminal Division’s Money Laundering and Asset Recovery Section, in partnership with federal law enforcement agencies, and often with U.S. Attorney’s Offices, to forfeit the proceeds of foreign official corruption and, where appropriate, to use those recovered assets to benefit the people harmed by these acts of corruption and abuse of office. In 2015, the FBI formed International Corruption Squads across the country to address national and international implications of foreign corruption. Individuals with information about possible proceeds of foreign corruption located in or laundered through the U.S. should contact federal law enforcement or send an email to [email protected] (link sends e-mail) or https://tips.fbi.gov/.
A civil forfeiture complaint is merely an allegation that money or property was involved in or represents the proceeds of a crime. These allegations are not proven until a court awards judgment in favor of the United States.