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Wednesday 25 September 2019
Cranston Man Sentenced to Federal Prison on Illicit Sex ChargeRead the Press Release
PROVIDENCE – A Cranston man who befriended a 15-year-old girl from Maine on the Internet who he intended to bring to Rhode Island to engage with in illicit sexual activity was sentenced today to 24 months in federal prison.
Raymond Gliottone, 36, was arrested by Homeland Security Investigations (HSI) agents on November 16, 2018, days before he was scheduled to travel to Maine to pick-up the 15-year-old girl and drive her to his home in Rhode Island, where he intended to engage in prohibited sexual activity. Gliottone and the 15-year-old had been communicating online for several weeks prior to the date of Gliottone’s arrest.
According to court documents and information presented to the court, a family member of the 15-year-old discovered the online communications as well as sexually graphic images exchanged between Gliottone and the 15-year-old. The family member spoke with Gliottone, who claimed that he believed the girl to be 20-years-old. Nevertheless, Gliottone continued to communicate with the girl and made arrangements to travel to Maine to pick her up and drive her to Rhode Island to engage in sexual activity.
Gliottone pleaded guilty on March 13, 2019, to interstate travel with the intent to engage in illicit sexual conduct with a minor. He was sentenced today by U.S. District Court Judge John J. McConnell, Jr., to 24 months imprisonment to be followed by 10 years supervised release, announced United States Attorney Aaron L. Weisman and Homeland Security Investigations Acting Special Agent in Charge Jason Molina.
The case was prosecuted by Assistant U.S. Attorney John P. McAdams.
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Convicted Felon Charged with Federal Firearms OffensesRead the Press Release
BOSTON – A Templeton man was arrested yesterday and charged with federal firearms offenses.
John Shaw, 30, was charged by criminal complaint with one count of being a felon in possession of ammunition and one count of unlawful possession of a firearm not identified by serial number. Shaw was detained following an initial appearance in federal court in Worcester.
According to charging documents, on Sept. 24, 2019, during the execution of a search warrant at Shaw’s residence, a rifle that did not bear a serial number and three rounds of .223 caliber ammunition, as well as additional rounds of .22 and .45 caliber ammunition were recovered. Shaw was convicted in Winchendon District Court of breaking and entering in the night with intent to commit a felony and assault and battery with a dangerous weapon. As a previously convicted felon, Shaw was prohibited from possessing a firearm and ammunition.
The charge of being a felon in possession provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. The charge of unlawful possession of a firearm not identified by serial number provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $10,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Ashburnham Police Chief Lorring Barrett, Jr.; Worcester Police Chief Steven M. Sargent; and Hopkinton Police Chief Edward Lee made the announcement today. Assistant U.S. Attorney Michelle L. Dineen Jerrett of Lelling’s Worcester Branch Office 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.
Cleveland man was sentenced to eight years in prison for illegally having ammunitionRead the Press Release
A Cleveland man was sentenced to eight years in prison for illegally having ammunition.
A jury in June convicted Joshua Walker, 34, of one count being a felon in possession of ammunition.
Walker possessed 9 mm Luger shell casings on October 25, 2017, before and during an altercation at a Cleveland bar where Walker shot and killed someone, according to trial testimony.
Walker was prohibited from having the ammunition because of a previous conviction for conspiracy to possess with intent to distribute crack cocaine, according to the trial testimony.
This case was prosecuted by Assistant U.S. Attorney John C. Hanley following an investigation by the Cleveland Division of Police and the ATF, with assistance from the Cuyahoga County Prosecutor’s Office.
Choctaw Man Pleads Guilty to Sexual Abuse of a MinorRead the Press Release
Jackson, Miss. – Daniel S. Dixon Jr. Tubby, 39, a member of the Mississippi Band of Choctaw Indians, pled guilty Thursday before Chief United States District Judge Daniel P. Jordan III to sexual abuse of a minor. The crime occurred within the Pearl River Community of the Choctaw Indian reservation.
Judge Jordan will sentence Tubby on December 13, 2019, at 9:00 a.m. in Jackson. He faces a maximum penalty of 15 years imprisonment and a $250,000 fine.
This case was investigated by the Choctaw Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Kimberly Purdie.
Brooklyn Park Tax Preparer Known as "Papa Eric" Sentenced to Two Years in Federal PrisonRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of ERIC WILLOR, 70, to two years in federal prison. WILLOR pleaded guilty on May 21, 2019, to one count of aiding and assisting in the preparation of a false tax return. WILLOR was sentenced yesterday in U.S. District Court by Judge Eric C. Tostrud in St. Paul, Minnesota.
According to his guilty plea and documents filed with the court, WILLOR, also known as “Papa Eric,” ran a tax preparation business called WILLOR’s Tax Preparation and Planning out of his home in Brooklyn Park, Minnesota. WILLOR regularly prepared and filed tax returns using false and fraudulent itemized deductions in order to fraudulently obtain large tax refunds to which his clients were not entitled. Specifically, WILLOR regularly prepared and filed returns falsely claiming that his clients had significant tax-deductible charitable contributions, medical expenses, and educational expenses. In reality, WILLOR knew that these claimed deductions were fraudulent. Between 2012 and 2017, WILLOR prepared and filed approximately 100 fraudulent tax returns that fraudulently claimed a total of approximately $316,000 in tax refunds to which his clients were not entitled.
This case is the result of an investigation conducted by the Internal Revenue Service-Criminal Investigation Division.
This case is being prosecuted by Assistant United States Attorney Joseph H. Thompson.
Defendant Information:
ERIC WILLOR, 70
Brooklyn Park, Minn.
Convicted:
- Aiding and assisting in the preparation of a false tax return, 1 count
Sentenced:
- 24 months in prison
- 3 years supervised release
- $316,979 in restitution
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United States Attorney’s Office, District of Minnesota: (612) 664-5600Brooklyn Man Who Set Fire in Kings Plaza Parking Garage Sentenced to Five Years’ ImprisonmentRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Evon Stephens was sentenced by United States District Judge I. Leo Glasser to five years’ imprisonment following his guilty plea to setting fire to a vehicle in the parking garage attached to the Kings Plaza Shopping Center on September 17, 2018. The amount of restitution will be determined by the Court at a later date.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and John B. DeVito, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Daniel A. Nigro, Commissioner, New York City Fire Department (FDNY), announced the sentence.
In the early morning hours of September 17, 2018, Stephens was inside the parking garage before it was open to the public, attempting to get inside vehicles stored there by automobile dealerships. At approximately 8:15 a.m., Stephens entered a Mercedes Benz and set fire to its interior. The fire soon spread to vehicles throughout the parking garage, ultimately damaging 135 vehicles and injuring more than 25 individuals. Surveillance cameras captured Stephens setting fire to the Mercedes Benz, and later running from the parking garage, stopping to make an obscene gesture with his hand toward the camera.
“With the prison sentence he received today, the defendant will be punished for setting a fire that spread to engulf over 100 vehicles, injuring innocent people in its path and endangering the first responders who brought it under control at risk to their own lives,” stated United States Attorney Donoghue. Mr. Donoghue expressed his grateful appreciation to members of the New York City Police Department (NYPD) for their work on the case.
“The actions of the defendant caused massive amounts of damage to property and numerous injuries to first responders,” stated ATF Special Agent-in-Charge DeVito. “Thanks to the great work of the ATF, NYPD and FDNY Arson and Explosive Task Force, this individual was quickly apprehended and punished for his crime. I would also like to thank the United States Attorney’s Office for their work in prosecuting this case.”
“This crime senselessly endangered the lives of FDNY members and the public, and caused tremendous property damage,” stated FDNY Commissioner Nigro. “I commend our Fire Marshals, and their colleagues at the ATF, for their outstanding investigative work that led to the apprehension and sentencing of this dangerous arsonist.”
Assistant United States Attorney Temidayo Aganga-Williams is in charge of the prosecution.
The Defendant:
EVON STEPHENS
Age: 23
Brooklyn, New YorkE.D.N.Y. Docket No. 19-CR-539 (ILG)
Bronx Man Charged in Manhattan Federal Court with 2014 MurderRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and James P. O’Neill, the Commissioner of the Police Department for the City of New York (“NYPD”), announced the unsealing of an Indictment charging RASHAWN WHIDBEE, a/k/a “RaBoy,” with the September 27, 2014, attempted robbery and murder of Cody Dubose, 24, in New York, New York. WHIDBEE was arrested today and will be presented this afternoon before U.S. Magistrate Judge Robert W. Lehrburger. This case is assigned to United States District Judge Edgardo Ramos.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Almost exactly five years ago, Cody Dubose was shot and killed during an attempted armed robbery in Manhattan. Now, thanks to the outstanding work of the NYPD, Rashawn Whidbee has been charged for his alleged participation in that heinous crime.”
NYPD Commissioner James P. O’Neill said: “The NYPD, along with our partners in the U.S. Attorney’s Office for the Southern District, is making New Yorkers safer by focusing our resources on the small percentage of criminals responsible for much of the city’s violent crime. We remain relentless in our efforts to identify, arrest, and prosecute anyone who involves himself in such behavior.”
According to the allegations in the Indictment unsealed in Manhattan federal court[1]:
On or about September 27, 2014, in the vicinity of East 112th Street and Madison Avenue in New York, New York, WHIDBEE and others participated in an attempted robbery of money belonging to a drug dealer, during which Cody Dubose was shot and killed.
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WHIDBEE, 32, of the Bronx, New York, is charged with one count of attempted robbery, which carries a maximum sentence of 20 years in prison, one count of conspiracy to commit robbery, which carries a maximum sentence of 20 years in prison, and one count of using a firearm to commit murder, which carries a maximum sentence of death or life in prison, and a mandatory minimum term of five years in prison. The maximum and minimum sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the NYPD.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Jacob Warren, Michael Longyear, and Christopher Clore are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Bridgeport Man Sentenced to More Than 7 Years in Federal Prison for Firearm OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that TERRANCE CLARK, also known as “T-Time,” 24, of Bridgeport, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 90 months of imprisonment, followed by two years of supervised release, for firearm offenses.
According to court documents and statements made in court, on April 3, 2019, officers with the Bridgeport Police Department’s Tactical Narcotics Team arrested Clark after they found him in possession of crack cocaine, which was packaged for street level distribution, as well as a Glock 22 .40 caliber firearm loaded with a high capacity magazine.
Clark’s criminal history includes felony convictions in state court for possession of a firearm without a permit, stealing a firearm, and possession of narcotics.
Clark has been detained since his arrest on April 29, 2019. On June 11, he pleaded guilty to one count of possession of a firearm by a convicted felon, and one count of possession of a firearm in furtherance of a drug trafficking crime.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Bridgeport Police Department. This case was prosecuted by Assistant U.S. Attorney Jocelyn Courtney Kaoutzanis.
This prosecution 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 neighborhoods safer for everyone.
Bell County Man Sentenced for Methamphetamine TraffickingRead the Press Release
LONDON, Ky.- Charles R. Hubbard, 56, of Pineville, Kentucky, was sentenced to 94 months in federal prison Monday, for conspiring with others to distribute an aggravated amount of methamphetamine in Harlan County and Bell County, by U.S. District Judge Robert E. Wier.
According to Hubbard’s plea agreement, he participated in a methamphetamine distribution conspiracy from January 2018 through January 1, 2019. Hubbard’s plea agreement further states that he worked with Crystal Leach and others to procure methamphetamine in or around Tennessee for distribution throughout both Harlan County and Bell County. On January 24, 2018, Hubbard possessed over 50 grams of methamphetamine in Harlan County. On August 24, 2018, Hubbard possessed approximately 26 grams of methamphetamine in Bell County. As part of his plea, Hubbard forfeited $930.00 in drug proceeds.
Hubbard pleaded guilty to conspiracy to distribute 50 grams or more of a methamphetamine mixture on June 6.
Under federal law, Hubbard must serve 85 percent of his prison sentence. Hubbard will be under the supervision of the U.S. Probation Office for four years following his prison sentence.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, James Robert Brown, Special Agent in Charge, FBI Louisville Field Division, and Commissioner Richard W. Sanders, Kentucky State Police, jointly announced the sentence.
The investigation was conducted by the FBI London Office, KSP, Appalachian High Intensity Drug Trafficking Area (AHIDTA) Appalachian Narcotics Task Force, the Harlan County Sherriff’s Office, the Bell County Sherriff’s Office, and the Pineville Police Department. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Jenna E. Reed.
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Baton Rouge Man Pleads Guilty in Federal Court in Connection with Mexican-Based Drug Trafficking OrganizationRead the Press Release
United States Attorney Brandon J. Fremin announced that Jaime Gabriel Grimaldi Pena, a.k.a. “Eric” and “Gabriel,” age 44, of Baton Rouge, pled guilty before U.S. District Judge John W. deGravelles to conspiracy to possess with intent to distribute and to distribute five kilograms or more of cocaine, and heroin. As a result of his guilty plea, Pena faces a significant term of imprisonment, fines, and forfeiture of the property involved or used in, or derived from, his illegal activity.
Pena was charged in connection with an extensive federal, state, and local investigation by the Middle District’s Organized Crime and Drug Enforcement Task Force (“OCDETF”) aimed at a Mexican-based Drug Trafficking Organization (“DTO”) responsible for the distribution of cocaine and heroin from Mexico to Baton Rouge, Louisiana and other locations throughout the United States.
According to admissions made as part of his guilty plea, Pena admitted that from at least July 2017 to March 2018, he was the Baton Rouge point of drug distribution for a DTO that was responsible for the distribution of cocaine and heroin from Mexico throughout the United States. Pena also worked as a mechanic for vehicles utilized by the DTO to transport illegal drugs by installing hidden compartments used to hide drugs and drug proceeds in transport vehicles and installing tracking devices on said vehicles.
U.S. Attorney Fremin stated, “This plea demonstrates our on-going commitment to bring justice to those who show blatant disregard for the health and safety of our people by peddling poison in our communities. I am grateful to our prosecutor and the FBI for their outstanding efforts in the investigation and prosecution of this defendant.”
“Opioid and heroin addiction does not discriminate because of race, religion, ethnicity, or socio economic status. Drug addiction is an epidemic that is plaguing the streets of Baton Rouge and across America,” stated Special Agent in Charge Bryan Vorndran. “Today justice was served to those who chose to traffic and distribute these illicit narcotics on our streets. The FBI will continue to enforce the laws and intervene when drug traffickers terrorize communities.”
This investigation is another effort by the OCDETF Program, which was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations, money laundering organizations, and related criminal enterprises. The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations.
This OCDETF operation is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the FBI Baton Rouge Capitol Area Gang Task Force. This matter is being prosecuted by Assistant United States Attorney Jamie Flowers, Jr.
Ashburnham Man Charged with Federal Firearms OffensesRead the Press Release
BOSTON – An Ashburnham man was arrested yesterday in federal court in Worcester and charged with a federal firearms offense.
Terrick Bishoff, 38, was charged by criminal complaint with one count of unlawful possession or transfer of a machine gun. Bishoff was detained pending a probable cause and detention hearing scheduled for Sept. 27, 2019.
As alleged in charging documents, Bishoff sold a machine gun without a serial number to an individual in Fitchburg on May 15, 2019. In return, the individual paid Bishoff $2,500.
The charging statute provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Ashburnham Police Chief Lorring Barrett, Jr.; Worcester Police Chief Steven M. Sargent; and Hopkinton Police Chief Edward Lee made the announcement today. Assistant U.S. Attorney Michelle L. Dineen Jerrett of Lelling’s Worcester Branch Office 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.
Armed Meth Dealer Sentenced to More Than 20 YearsRead the Press Release
Tampa, Florida – United States District Judge Steven D. Merryday has sentenced Jonathan Budowski (48, Brooksville), a/k/a “Hard Times,” to 20 years and 8 months in federal prison for his role in selling multiple kilograms of methamphetamine as part of a drug trafficking conspiracy, while maintaining an arsenal of firearms and ammunition to protect his drug stash and proceeds. Budowski was also ordered to forfeit five firearms, including an assault rifle, and 196 rounds of ammunition.
Budowski had pleaded guilty on May 22, 2019.
According to court documents, Budowski sold methamphetamine in multi-ounce quantities to a wide range of lower-level drug suppliers for several years, usually while armed. In September 2017, Budowski faced multiple state charges unrelated to this case, including felony domestic battery. After he failed to appear in state court as required, law enforcement officers secured a warrant for his arrest and a tipster alerted law enforcement that Budowski was hiding out in a motel. Law enforcement observed Budowski using his vehicle and his motel room in a manner consistent with drug dealing and ultimately had to use tear gas to draw Budowski out of the motel room to arrest him. Upon searching the motel room, officers found three loaded firearms, more than 100 rounds of ammunition, a distribution quantity of methamphetamine, and narcotics packaging materials. Budowski later stated, in a recorded call, that he had strongly considered engaging the officers in a shootout rather than submit to arrest. When officers searched Budowski’s vehicle, they recovered three more loaded firearms, including an assault rifle, as well as ammunition and drug paraphernalia.
Budowski’s criminal record includes 41 prior convictions.
This case was jointly investigated by the Drug Enforcement Administration, the Pasco Sheriff’s Office, and the Sumter County Sheriff’s Office, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Michael M. Gordon.
Amsterdam Man Sentenced to 25 Months for Passport Fraud and Aggravated Identity TheftRead the Press Release
ALBANY, NEW YORK – Marvin Danilo Aquino a/k/a Marvin Padilla, age 23, of Amsterdam, New York, was sentenced today to serve 25 months in prison for making a false statement in a passport application and aggravated identity theft.
The announcement was made by United States Attorney Grant C. Jaquith and Timothy Dumas, Special Agent in Charge of the New York Field Office of the United States Department of State’s Diplomatic Security Service.
As part of his guilty plea on April 19, 2019, Aquino admitted that in October 2017, he visited a U.S. Post Office in Gloversville, New York, and filled out an application for a U.S. passport, which he then submitted with a picture of himself. On his application, however, Aquino listed the name, social security number, birthdate, and other identifying information of another person who had not authorized Aquino to file the application. In support of the application, Aquino also submitted numerous documents containing the same third party’s identifying information.
This case was investigated by the U.S. Department of State’s Diplomatic Security Service with assistance from the Social Security Administration Office of the Inspector General. It was prosecuted by Assistant U.S. Attorney Joshua R. Rosenthal.
Akron man previously convicted of domestic violence indicted for allegedly having methamphetamine and a gunRead the Press Release
An Akron man was indicted on firearms and methamphetamine charges.
Tionte L. Blanchard, 23, was indicted on one count of possession with intent to distribute methamphetamine, one count of possession of a firearm with a domestic violence conviction and one count of possession of a firearm in furtherance of drug trafficking.
Blanchard possessed at least 50 grams of methamphetamine on July 12, as well as a Glock pistol. Blanchard was prohibited from having the pistol because of a previous misdemeanor conviction for domestic violence in 2017, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The FBI and Akron Police Department investigated this case. Assistant U.S. Attorney Christopher Joyce is prosecuting the case.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
32-Year-Old North Carolina Resident Pleads Guilty to Sex Trafficking of a MinorRead the Press Release
On September 24, 2019, Willie Dishon Matthew Obadiah, 32, of Charlotte, North Carolina, pled guilty to sex trafficking of a minor, before U.S. District Judge Beth Bloom in Miami.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigations (FBI), Miami Field Office, and Juan J. Perez, Director, Miami-Dade Police Department (MDPD), made the announcement.
In February 2019, Obadiah met the minor victim through Facebook, and communicated with her via Facebook Messenger and text messages. At the time, both Obadiah and the minor victim lived in North Carolina, where he was already prostituting women. Through his communications with the victim, Obadiah learned that she was a minor. In fact, he asked her to send a photograph of her identification card to him. When he saw her age on the photograph, he sent her a message stating that he wished she had a “fake id” instead. Obadiah continued to communicate with the minor victim online, and learned that she was a runaway. While she was on the run, Obadiah agreed to pick up the minor victim. Shortly thereafter, he began prostituting the minor victim at various hotels, initially in North Carolina and then in Miami. Obadiah told the minor victim how much to charge for sex acts, how to deal with customers or “johns,” and what rules to abide by. Obadiah posted advertisements online for the minor victim, to which customers responded. Obadiah drove the minor victim to South Florida after a few days, where he prostituted her at hotels in Miami. The minor victim ran away from Obadiah, who returned to North Carolina, where he continued to prostitute women. He was arrested on April 19, 2019 by the Charlotte-Mecklenberg Police Department.
Obadiah is scheduled to be sentenced on December 5, 2019, at 9:00 a.m. in Miami, before Judge Bloom (Case No. 19-cr-20321). He faces a mandatory minimum term of imprisonment of ten years and a statutory sentence of up to life in prison.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The FBI’s Child Exploitation and Human Trafficking Task Force investigated this case in partnership with the Federal South Florida Human Trafficking Task Force, which includes the Miami-Dade Police Department’s Human Trafficking Squad, International Rescue Committee, and Florida Department of Children and Families (DCF). FBI Charlotte, Charlotte-Mecklenberg Police Department, Polk County Sheriff’s Office, and the U.S. Attorney’s Office for the Western District of North Carolina assisted with the case.
U.S. Attorney Fajardo Orshan commended the investigatory efforts of the FBI Miami Child Exploitation Task Force, MDPD, International Rescue Committee, DCF, and all those who assisted in this matter. Assistant U.S. Attorney Vanessa Johannes prosecuted this case.
To report suspected human trafficking or to obtain resources for victims, please call 1-888-373-7888; text “BeFree” (233733), or live chat at HumanTraffickingHotline.org. The toll-free phone, SMS text lines, and online chat function are available 24 hours a day, 7 days a week, 365 days a year. Help is available in English, Spanish, Creole, or in more than 200 additional languages. The National Hotline is not managed by law enforcement, immigration or an investigative agency. Correspondence with the National Hotline is confidential and you may request assistance or report a tip anonymously.
To learn more about the National Resource Hotline visit www.humantraffickinghotline.org. To learn more about the U.S. Department of Justice’s efforts to combat human trafficking visit www.justice.gov/humantrafficking.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Tuesday 24 September 2019
“Golden Goose” of the Mexican Mafia Sentenced to 30 Years for Role in Drug Distribution Conspiracy and Attempted Robbery Ordered by the Mexican MafiaRead the Press Release
NEWS RELEASE SUMMARY – September 24, 2019
SAN DIEGO – Fady Esho, was sentenced yesterday in federal court to 30 years in prison for his aggravated role in a drug distribution conspiracy as well as his participation in an attempted armed robbery ordered by the Mexican Mafia.
The charges stem from an investigation by the FBI-led Violent Crimes Task Force, Gang Group (VCTF-GG) into drug trafficking, firearms and violent crimes being committed by certain gang members and their associates in San Diego.
“Taking this Mexican Mafia member off the street for three decades is a big win for public safety,” said U.S. Attorney Robert Brewer. “This significant sentence will prevent defendant, who was a violent firearms and drug trafficker in addition to being a Mexican mafia member, from further menacing our community.” The U.S. Attorney praised prosecutors Todd Robinson and Kareem Salem as well as the FBI and the Violent Crimes Task force-Gang Group for their diligence in prosecuting this important case.
"The 30-year sentence handed down today sends a clear message to anyone that is involved with the criminal activities of violent gangs and the Mexican Mafia: Expect to be investigated by the FBI Violent Crimes Task Force-Gang Group (VCTF-GG) and aggressively prosecuted,” said FBI SAC Scott Brunner. “Because of this long-term investigation, crimes of violence were prevented and a dangerous criminal enterprise trafficking in drugs and firearms throughout Southern California was decimated. Our community is safer with these gang members and associates behind bars.”
The defendant pleaded guilty on May 9, 2019 (18cr3424-LAB) to possessing methamphetamine with the intent to distribute; being a felon in possession of a firearm; attempting to commit a Hobbs Act Robbery; and possession of a firearm in furtherance of a crime of violence. That same day, he also pleaded guilty (18cr4217-LAB) to one count of conspiring with others to distribute over 50 grams of methamphetamine.
According to the prosecutor, Fady Esho was nicknamed the “Golden Goose” by several individuals associated with the Mexican Mafia based on his capability to distribute firearms and narcotics as well as collect money at their direction.
On June 13, 2018 agents intercepted communications of the defendant and two of his co-defendants who discussed their intention to commit an armed robbery and assault on behalf of the Mexican Mafia. In response, San Diego Police Department Gang Suppression Officers stopped the vehicle Fady Esho was driving as his drove to their intended victim. Ultimately, officers recovered four firearms, 56 rounds of ammunition and zip ties, which officers believe were for restraining the intended victim.
In addition to his role in the attempted robbery, the defendant was sentenced for his role, organization, and distribution of multiple pounds of methamphetamine.
Intercepted communications also revealed that the defendant was engaged in the distribution of methamphetamine to several customers, including an individual who on two occasions flew from Florida to purchase pounds of methamphetamine from the defendant. But for the quick response from members of the VCTF-GG, pounds of methamphetamine, which were packaged and shipped via the United States Postal Service, would have found its way to drug users in the Florida area.
SUMMARY OF CHARGES
Possession with the Intent to Distribute Methamphetamine, in violation of Title 21, U.S.C. Section 841 (a)(1)
Maximum Penalty: Forty years in prison; Five year mandatory minimumFelon in Possession of a Firearm, in violation of Title 18, U.S.C. Section 922(g)
Maximum Penalty: Ten years in prisonAttempted Hobbs Act Robbery, in violation of Title 18, U.S.C. Section 1951
Maximum Penalty: Twenty years in prisonPossession of firearm in furtherance of a crime of violence, in violation of Title 18, U.S.C. Section 924(c)
Maximum Penalty: Five years mandatory minimum in prisonConspiracy to Distribute Methamphetamine, in violation of Title 21, U.S.C. Sections 841 (a)(1) and 846
Maximum Penalty: Up to life in prison; Ten year mandatory minimumDEFENDANT Case Numbers: 18CR3424-LAB & 18CR4217-LAB
Fady Esho Age: 37 San Diego
INVESTIGATING AGENCIES
Violent Crimes Gang Task Force
Task Force agencies include:
FBI, ATF, DEA, BOP, USPIS, California Department of Corrections and Rehabilitation, San Diego District Attorney's Office, San Diego Police Department, San Diego Sheriff's Department, National City Police Department, Chula Vista Police Department, La Mesa Police Department, El Cajon Police Department and Federal Bureau of Prisons- Joint Intelligence Sharing Initiative
Wood Man Sentenced on Meth Trafficking and Felony Gun ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Wood, South Dakota, man convicted of Possession with Intent to Distribute Methamphetamine and Prohibited Person in Possession of a Firearm was sentenced on September 23, 2019, by U.S. District Judge Roberto A. Lange.
David Blue Bird, age 25, was sentenced to 60 months in federal prison, followed by 4 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $200.
Blue Bird was indicted by superseding indictment on March 12, 2019. He pled guilty on July 10, 2019.
The conviction stemmed from an incident that occurred on or about the 8th day of September 2018, through the 26th day of January 2019, Blue Bird did knowingly and intentionally possess with intent to distribute 50 grams or more methamphetamine and, being an unlawful user of methamphetamine, did knowingly receive and possess three firearms.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services, the Northern Plains Safe Trails Drug Enforcement Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Meghan N. Dilges prosecuted the case.
Blue Bird was immediately turned over to the custody of the U.S. Marshals Service.
Watertown Man Pleads Guilty to Distribution, Receipt, and Possession of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Joseph Williams, 30, of Watertown, New York, pled guilty today to distributing, receiving and possessing child pornography, announced United States Attorney Grant C. Jaquith, James N. Hendricks, Special Agent-in-Charge of the Albany Division of the Federal Bureau of Investigation (FBI) and New York State Police Superintendent Keith Corlett.
In entering his guilty plea today in United States District Court, Williams, admitted that he used the Kik Messenger application to distribute and receive child pornography from other Kik users from January 2016 through June 2016. Williams used his iPhone to trade images of child pornography via the internet. Execution of search warrants on Williams’ desktop and laptop computers revealed that he possessed 4,875 images and 2,052 video files depicting minors engaged in sexually explicit conduct. The images and videos included depictions of the rape and sodomy of prepubescent children and toddlers.
Senior United States District Judge Thomas J. McAvoy will sentence Williams on January 2, 2020. He faces at least 5 years and up to 20 years in prison for the distribution and receipt charges and up to 20 years in prison on the possession charge, a term of post-release supervision of at least 5 years and up to life, and a fine of up to $250,000. Williams will also be required to register as a sex offender.
This case is being investigated by the Federal Bureau of Investigation (FBI) and the New York State Police, and is being prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown.
This case is being prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Veterans Affairs Official Pleads Guilty to Six Corruption-Related Counts Arising from Scheme to Take Bribes to Rig Federal ContractsRead the Press Release
DENVER – U.S. Attorney Jason R. Dunn announces that former U.S. Department of Veterans Affairs official Dwane Nevins, age 55, pleaded guilty last week to an indictment charging him with corruption related crimes, arising from a scheme to take payments from an undercover FBI agent. Earlier this week, on September 17, 2019, his co-conspirator Anthony Bueno pleaded guilty to one count of conspiring with Nevins to make those payments. Another businessman involved with the scheme, Robert Revis, pleaded guilty in April 2019.
As described in the indictment, Dwane Nevins — a small business specialist at the VA’s Network Contracting Office in Colorado — agreed to take bribes offered by Revis, Bueno, and an undercover FBI agent to help them manipulate the process for bidding on federal contracts with the VA. Revis and Bueno, working with Nevins, agreed to submit fraudulent bids from service-disabled-veteran-owned small businesses under contract with their consulting company so that federal contracts would be set aside for only those companies. As Bueno allegedly explained, they would then “own all the dogs on the track.” Nevins, Bueno and Revis worked to conceal the nature of the bribe payments by either kicking back to Nevins a portion of the payments made to their consulting company, or by asking their consulting company’s clients to pay Nevins for sham training classes related to federal contracting.
The indictment also alleges that, after complaining about not being paid by Revis and Bueno for his participation in the scheme, Nevins used his official position at the VA to extort approximately $10,000 from an undercover FBI agent, telling the agent that “the train don’t go without me. You know what I mean? I’m the engine. I’m the caboose. I’m the engine room.” Nevins also allegedly told the undercover FBI agent “this is a business and businessmen need to get paid . . . . so I can have my Christmas, you know what I’m saying?”
The indictment alleges that the conspirators attempted to rig the process related to two contracts, both of which related to medical equipment and not to the construction of any VA facilities. The first contract related to the procurement of LC bead particle embolization products by a VA hospital in Salt Lake City and the second related to the procurement of durable medical equipment for VA facilities located throughout the region.
“Corruption in the government procurement process has consequences,” said U.S. Attorney Jason Dunn. “Here the defendant participated in manipulating the bid process so that a specific company could prevail. That is wrong, it is criminal, and there will be swift consequences for anyone that engages in such behavior.”
“Dwane Nevins’ scheme attempted to take advantage of the system serving our veterans and hurt small businesses,” said FBI Denver Division Special Agent in Charge Dean Phillips. “The FBI thanks the multi-agency investigative team and the USAO for holding Nevins and his cohorts accountable for their criminal activities.”
Gregg Hirstein, Special Agent in Charge, VA Office of Inspector General, said, “This case should serve as a deterrent to any government employees tempted to unlawfully profit from their position of public trust. The VA Office of Inspector General will always vigorously pursue allegations of corruption by VA officials because our nations veterans deserve to be served by a workforce of the highest integrity.”
“Taking bribes is an egregious form of corruption that violates the public’s trust and deprives eligible businesses opportunities to compete fairly for Federal contracting opportunities,” said SBA OIG’s Western Region Special Agent-in-Charge Weston King. “SBA OIG and its law enforcement partners will aggressively pursue individuals that seek personal gain in their service as public officials. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their leadership and dedication throughout this investigation.”
Dwane Nevins is scheduled to be sentenced on December 20, 2019. He faces a maximum of 65 years’ imprisonment. Anthony Bueno is scheduled to be sentenced on January 7, 2020. Robert Revis is scheduled to be sentenced on January 24, 2020.
The case was jointly investigated by the Federal Bureau of Investigation, the U.S. Department of Veterans Affairs Office of Inspector General, and the U.S. Small Business Administration Office of Inspector General.
The defendant is being prosecuted by Assistant United States Attorneys Bryan D. Fields and Hetal J. Doshi.
Utah Tax Return Preparers Sentenced to Prison for Filing False Tax ReturnsRead the Press Release
Alma Barlow and Denver Barlow, formerly of Hildale, Utah, were sentenced in federal court today to 24 months in prison each for conspiracy to file false claims, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney John W. Huber for the District of Utah.
According to court documents, from 2009 to 2014, the defendants held themselves out to the public as legitimate tax return preparers, though they filed over 700 false tax returns for themselves and for hundreds of unknowing clients, ultimately claiming over $9.7 million in false refunds from the Internal Revenue Service (IRS).
In furtherance of their conspiracy, the defendants added false entries to tax returns to trigger the Earned Income Tax Credit or added false figures for federal income tax withholdings, Form 1099-OID income tax withholdings, or Schedule C business expenses in order to fraudulently increase the amount of the claimed refunds.
In addition to the term of imprisonment, U.S. District Court Judge Ted Stewart ordered the defendants to each serve three years of supervised release, and to pay over $5.3 million in restitution to the United States.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Huber thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Tyler Murray and Trial Attorney Matthew Hoffman of the Tax Division, who prosecuted the case.
United States Attorney’s Office Hosts Roundtable on Racial and National Origin Discrimination in HousingRead the Press Release
The United States Attorney’s Office for the Eastern District of Wisconsin and the Justice Department’s Civil Rights Division hosted a roundtable September 23rd, 2019 for community organizations to discuss the problem of racial and national origin discrimination in housing, U.S. Attorney Matthew D. Krueger announced.
The event included local legal aid offices, fair housing organizations, civil rights organizations, faith-based organizations, and other community groups. Those organizations were invited because they often work with populations likely to become victims of housing discrimination. United States Attorney Krueger stated: “Federal law provides individuals with the right to obtain access to housing and lending free from discrimination. Our office is dedicated to uncovering violations of those rights and vigorously enforcing the law.”
The Department of Justice, through the U.S. Attorney’s Offices and the Civil Rights Division, enforces the federal Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. The Department of Justice may bring lawsuits where there is reason to believe that a person or entity is engaged in a “pattern or practice” of discrimination or where a denial of rights to a group of persons raises an issue of general public importance. The Department of Justice also brings cases where a housing discrimination complaint has been investigated by the Department of Housing and Urban Development, HUD has issued a charge of discrimination, and one of the parties to the case has “elected” to go to federal court. In FHA cases, the Department can obtain injunctive relief, including affirmative requirements for training and policy changes, monetary damages and, in pattern or practice cases, civil penalties.
The U.S. Attorney’s Office and the Civil Rights Division held the roundtable to raise awareness in the Eastern District of Wisconsin about options to help victims experiencing discrimination in housing. Attendees were encouraged to be alert and encourage that victims to report housing discrimination to the Civil Rights Division and the United States Attorney’s Office.
The Justice Department encourages anyone who has experienced racial or national origin discrimination in housing, or knows someone who has, to contact the Division by calling 1-800-896-7743 or https://www.justice.gov/crt/housing-and-civil-enforcement-section-overview.
Individuals who believe they may have been victims of discrimination may also file a complaint with the U.S. Attorney’s Office at 414-297-1700 or visiting https://www.justice.gov/usao-edwi/contact.
Two Vernon Residents Charged with Firearm Offenses Related to Stafford Pawn Shop BurglaryRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that DAMIEN GARCIA, 32, and LAWRENCE McEWEN, 37, both of Vernon, have been charged by federal criminal complaint with firearm offenses related to the theft of guns from a Stafford pawn shop on September 14.
Garcia and McEwen were originally arrested on state charges on September 17. Garcia, who was released on bond after his state arrest, was arrested on the federal charges yesterday. He is detained pending a detention hearing that is scheduled for September 26. McEwen has been detained since his state arrest.
As alleged in the criminal complaint, on September 15, 2019, the Connecticut State Police received a report that the Simon Says Pawn Shop, a Federal Firearms Licensee in Stafford, had been burglarized the previous evening and that several firearms had been stolen. Investigators subsequently determined that six handguns were missing from the store. On September 17, Vernon Police developed information that Garcia was involved in the burglary and was in possession of a firearm. That evening, after officers approached Garcia and McEwen on West Main Street in Vernon, Garcia and McEwen attempted to flee before. After both were apprehended, officers recovered a .40 caliber Smith and Wesson pistol that McEwen discarded as he ran away. The firearm was one of the six stolen from the Simon Says Pawn Shop on September 14.
The other five missing handguns have not been recovered.
It is alleged that both Garcia and McEwen have previously been convicted of multiple felony offenses.
The complaint charges Garcia and McEwen with possession of a firearm by a convicted felon, and possession of a stolen firearm. Both offenses carry a maximum term of imprisonment of 10 years.
U.S. Attorney Durham stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Connecticut State Police, Vernon Police Department and Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
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 neighborhoods safer for everyone.
Two Men Sentenced on Meth Trafficking ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Greeley, Colorado, man and a Box Elder, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance were sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Jeffery William Travis, age 55, was sentenced on September 9, 2019, to 20 years in federal prison, followed by 10 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Marvin Glen McIlravy, age 65, was also sentenced on September 9, 2019, to 12 years in federal prison, followed by 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Travis and McIlravy were indicted by a federal grand jury in March 2018. The conviction stems from Travis, McIlravy, and several other people distributing multiple pounds of methamphetamine in western South Dakota between 2016 and 2018. Travis obtained the methamphetamine from Colorado and transported it to South Dakota, where multiple co-conspirators further distributed the methamphetamine. McIlravy obtained the methamphetamine in South Dakota and distributed it primarily in the Rapid City area. Other co-conspirators have been sentenced while additional co-conspirators’ cases are still pending.
This case was investigated by federal, state, and local agencies, including the Drug Enforcement Administration and the Unified Narcotics Enforcement Team, which is a local drug task force comprised of various agencies, including the South Dakota Division of Criminal Investigation, the Pennington County Sheriff’s Office, and the Rapid City Police Department. The case was prosecuted by Gina S. Nelson, Assistant U.S. Attorney.
Travis and McIlravy were immediately turned over to the custody of the U.S. Marshals Service.
Two Defendants Convicted in Major Drug ConspiracyRead the Press Release
Abingdon, VIRGINIA – Two members of a drug distribution organization that trafficked methamphetamine, heroin, oxycodone, cocaine, and other drugs from Georgia into Southwest Virginia were recently found guilty following a five-day jury trial in federal court on drug conspiracy charges, United States Attorney Thomas T. Cullen and Virginia Attorney General Mark Herring announced.
Roy Lee Dykes, 51, of Watkinsville, Ga., formerly of Big Stone Gap, Va., was convicted of one count of conspiracy to possess with the intent to distribute and distributing 50 grams or more of methamphetamine, in addition to cocaine, heroin, alprazolam, and oxycodone. Dykes was also convicted of 17 counts of distributing and possessing with intent to distribute controlled substances on a number of specific dates. At sentencing, Dykes faces a mandatory minimum sentence of imprisonment of 10 years and a maximum statutory penalty of up to life in prison and/or a fine of up to $10 million.
Leila Varetta “Rita” Hector-Dykes, 57, of Watkinsville, Ga., was also convicted of one count of conspiracy to possess with the intent to distribute and distributing 50 grams or more of methamphetamine, in addition to cocaine, heroin, alprazolam, and oxycodone. Hector-Dykes was also convicted of one count of distributing and possessing with intent to distribute controlled substances. At sentencing, Hector-Dykes faces a mandatory minimum sentence of imprisonment of 10 years and a maximum statutory penalty of up to life in prison and/or a fine of up to $10 million.
“Methamphetamine trafficking is currently the greatest threat to public safety in far Southwest Virginia,” U.S. Attorney Cullen stated today. “We will continue to collaborate with our federal, state, and local partners to identify individuals responsible for distributing large quantities of this deadly substance and put them in federal prison.”
“This organization trafficked large amounts of crystal ice into Southwest Virginia. We appreciate the partnership with the U.S. Attorney’s Office and federal, state, and local law enforcement to crack down on those who transport dangerous drugs into the Commonwealth for distribution,” Virginia Attorney General Herring said today. “Reducing the availability of crystal methamphetamine and other drugs in Southwest Virginia is a high priority for my office. We appreciate the hard work and dedication of our law enforcement partners and will continue to aggressively prosecute those who endanger the lives of our citizens.”
In all, 11 individuals were charged as part of this drug trafficking conspiracy. All 11 defendants have now been convicted. Dykes and Hector-Dykes are scheduled for sentencing on December 19, 2019.
According to evidence presented at trial, these defendants conspired to traffic a variety of controlled substances, including methamphetamine, heroin, cocaine, morphine, oxycodone, and alprazolam, from sources in Watkinsville, Georgia, into Southwest Virginia for redistribution. The organization operated primarily in Lee and Wise counties from November 2016 through March 1, 2018. Arrests on March 1, 2018, resulted in the seizure of approximately 11 ounces of crystal ice methamphetamine, in addition to heroin, cocaine, morphine, and oxycodone, with an estimated street value of $28,000. Currency totaling approximately $14,000 was also seized from the defendants on that day.
The investigation stemmed from another drug trafficking conspiracy arising out of Lee County, Virginia, involving seven defendants, all of whom have been convicted and sentenced. Another four defendants, including Dykes and Hector-Dykes’ sources of supply, were also identified and prosecuted during the course of these investigations. In total, these investigations have led to the successful prosecution of 22 defendants and removed a conservative estimate of 3.5 pounds of crystal ice methamphetamine from the supply chain in Southwest Virginia.
The investigation of this case was conducted by the Southwest Virginia Drug Task Force, Virginia State Police, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Numerous agencies assisted with search warrant executions and arrests on March 1, 2018, to include the Drug Enforcement Administration, Big Stone Gap Police Department, Lee, Wise, and Scott County Sheriff’s Departments, City of Norton Police Department, and the U.S. Marshals. Special Assistant United States Attorney M. Suzanne Kerney-Quillen, a Virginia Assistant Attorney General assigned to the Attorney General’s Major Crimes and Emerging Threats Section, and Assistant United States Attorney Kari Munro prosecuted this case at trial for the United States.
Two Defendants Charged in Scheme to Sell Fraudulently Misbranded Beef ProductsRead the Press Release
An indictment was unsealed today in federal court in Brooklyn charging Howard Mora and Alan Buxbaum with conspiring to commit wire fraud in connection with a scheme to use counterfeit United States Department of Agriculture (USDA) stamps to misbrand USDA “Choice” beef products as higher quality USDA “Prime” and sell those products at inflated prices. The defendants were arrested this morning and are scheduled to be arraigned this afternoon before United States Magistrate Judge Robert M. Levy.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Bethanne M. Dinkins, Special Agent-in-Charge, U.S. Department of Agriculture, Office of Inspector General (USDA-OIG), announced the charge.
Between September 2011 and October 2014, Mora and Buxbaum were co-owners of A. Stein Meat Products, Inc., a wholesale meat processing and distribution business located in Brooklyn. As alleged in the indictment, the defendants purchased beef that had been graded “Choice” quality by graders employed by the USDA Agricultural Marketing Service and directed their employees to carve off the “Choice” markings and re-stamp them as “Prime,” using counterfeit stamps. The meat was then sold at inflated prices to customers in the New York City metropolitan area.
“Customers and consumers are entitled to get what they pay for, especially when the product is food on their tables,” stated United States Attorney Donoghue. “This Office and our law enforcement partners will remain vigilant in enforcing laws that ensure the grade and quality of food products.”
“The integrity of USDA’s food processing systems and the security of the nation’s food supply is of the utmost importance to the Office of Inspector General, and we will continue to dedicate resources to the investigation of matters where it is called into question.” Stated USDA-OIG Special Agent-in-Charge Dinkins.
The charge in the indictment is an allegation, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants each face a maximum of 20 years’ imprisonment.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Ryan Harris and Turner Buford are in charge of the prosecution.
The Defendants:
HOWARD MORA
Age: 67
Westbury, New YorkALAN BUXBAUM
Age: 65
Monroe, New JerseyE.D.N.Y. Docket No. 19-CR-425 (KAM)
Twice Deported Felon SentencedRead the Press Release
FORT WAYNE – Joel Sanchez-Lopez, age 33, of Fort Wayne, Indiana was sentenced before U.S. District Court Judge Holly Brady for illegal reentry of a removed alien, announced U.S. Attorney Kirsch.
Joel Sanchez-Lopez was sentenced to 15 months in prison and will be deported upon completion of his federal sentence
According to documents in this case, Mr. Sanchez-Lopez is a citizen of Mexico. In 2008, Sanchez-Lopez was charged and sentenced for felony domestic battery. In 2009, Sanchez-Lopez was found operating a vehicle while intoxicated at 3 times the legal limit (.24%) while on probation supervision for the felony domestic battery offense. He was deported back to Mexico in 2010. However, Sanchez-Lopez returned to the United States in 2014 without legal authorization, and in violation of the 2010 deportation order. In 2017, he was charged with another domestic battery offense which was later dismissed, and he was again deported to Mexico in November 2017. Sometime in July 2018, Sanchez-Lopez returned to the U.S. without legal authorization and in violation of the 2010 deportation order. He was found to be illegally present in the U.S. after he was charged in December of 2018 with operating a vehicle while intoxicated after he got into a verbal altercation with his wife, drove off at a high rate of speed and crashed into a ditch. His blood alcohol was almost 3 times the legal limit (.238%) for the State of Indiana.
The case was investigated by the Department of Homeland Security, Immigration and Customs Enforcement Agency. The case was handled by Assistant United States Attorney Sarah Nokes.
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Tulsa Man Pleads Guilty to Bankruptcy FraudRead the Press Release
A Tulsa resident pleaded guilty today to making a false statement in a bankruptcy proceeding, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney R. Trent Shores.
According to the information and written plea agreement filed in the case, Michael J. Fletcher, of Tulsa, filed a bankruptcy petition in August of 2011 in which he stated that he had no legal or equitable interest in any real property. In November 2011, the Department of Justice filed a complaint objecting to the discharge of Fletcher’s federal income tax debts on the grounds that Fletcher had concealed his interest in real property located on 110th Street in Tulsa, Oklahoma. During the trial in that matter in October 2014, Fletcher testified that his parents owned the house on 110th Street and that the down payment for the purchase was funded by a loan from his daughters to his father. In pleading guilty Fletcher admitted that he was the source of the funds used for the down payment, and that he lied during his bankruptcy court testimony when he denied this fact
“By effectively combating white collar crime and prosecuting individuals like Mr. Fletcher, we can protect the U.S. Bankruptcy Court and creditors from fraud,” said U.S. Attorney Trent Shores. “Moreover, I hope this prosecution signals a warning to others who would seek to commit fraud. I know that deterrence requires enforcement. That’s why we will continue to uphold our oath and enforce the laws of the United States. From white collar criminals to violent criminals, they can expect us to diligently pursue justice.”
United States District Court Judge John Dowdell scheduled Fletcher’s sentencing for December 23, 2019.
The case was investigated by special agents of IRS-Criminal Investigation. Assistant Chief Andrew Kameros of the Tax Division and Assistant U.S. Attorney Victor Régal are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Tulsa Man Pleads Guilty to Bankruptcy FraudRead the Press Release
A Tulsa resident pleaded guilty today to making a false statement in a bankruptcy proceeding, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney R. Trent Shores for the Northern District of Oklahoma.
According to the information and written plea agreement filed in the case, Michael J. Fletcher, of Tulsa, Oklahoma, filed a bankruptcy petition in August of 2011 in which he stated that he had no legal or equitable interest in any real property. In November 2011, the Department of Justice filed a complaint objecting to the discharge of Fletcher’s federal income tax debts on the grounds that Fletcher had concealed his interest in real property located on 110th Street in Tulsa, Oklahoma. During the trial in that matter in October 2014, Fletcher testified that his parents owned the house on 110th Street and that the down payment for the purchase was funded by a loan from his daughters to his father. In pleading guilty Fletcher admitted that he was the source of the funds used for the down payment, and that he lied during his bankruptcy court testimony when he denied this fact.
United States District Court Judge John Dowdell scheduled Fletcher’s sentencing for Dec. 23, 2019.
The case was investigated by special agents of IRS-Criminal Investigation. Assistant Chief Andrew Kameros of the Tax Division and Assistant U.S. Attorney Victor Regal are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Three People Indicted on Attempted Carjacking in which James Anthony Sapone was Shot and KilledRead the Press Release
St. Louis, MO – Demario Hunter, 33, of East St. Louis, IL; Keombra James, 25, of East St. Louis, IL; and Surrayah Hill, 21, of East St. Louis, IL were indicted last week by a federal grand jury for attempted carjacking in the 3400 block of Iowa Street in St. Louis, MO during which James Anthony Sapone was shot and killed. The three defendants were also indicted on weapon charges relating to the March 18, 2019, incident. The indictment was unsealed September 23, 2019, once all defendants were arrested.
If convicted, the charge of attempted carjacking resulting in death carries a maximum penalty of life imprisonment or the imposition of death. The charge of murder in the course of a crime of violence also carries a maximum penalty of life imprisonment or the imposition of death. The charge of possession and discharge of a firearm in furtherance of a crime of violence carries a minimum penalty of ten years imprisonment. All three defendants were charged with each of those crimes. Additionally, Hunter faces a charge of being a felon in possession of ammunition, a charge that carries a maximum penalty of ten years imprisonment. All charges carry a potential fine of $250,000 per count.
Charges set forth in the Indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
“Gun violence and carjackings remain top priorities of this office. We continue to work with our federal, state, and local law enforcement partners to prevent these senseless acts of violence but, when they occur, we are committed to holding each and every perpetrator accountable to the fullest extent of the law,” said Jeffrey B. Jensen, United States Attorney following the indictment’s unsealing.
This case was investigated by the FBI and the St. Louis Metropolitan Police Department. Assistance was provided by St. Louis County Police and Illinois Department of Corrections Parole.
St. Thomas Student Charged for Hoax Bomb Threats Against the University's St. Paul CampusRead the Press Release
United States Attorney Erica H. MacDonald announced a federal criminal complaint against RAY GHANSHAM PERSAUD, 20, for calling in bomb threats to the University of St. Thomas in St. Paul, Minnesota.[1] PERSAUD was arrested this morning and will make his initial appearance today at 2:00 pm before Magistrate Judge David T. Schultz in U.S. District Court in Minneapolis, Minnesota.
According to the allegations in the criminal complaint and law enforcement affidavit, on April 17, 2019, PERSAUD called the University of St. Thomas in St. Paul, Minnesota and said there was a bomb on campus, specifically mentioning McNeely Hall. PERSAUD called the University of St. Thomas three times that morning making bomb threats. As a result, the University evacuated and closed its entire St. Paul campus, including a child care center located in one of the buildings. The FBI determined that the calls came from a Voice Over Internet Protocol, or “VOIP,” telephone number serviced by TextMe, an app that allows users to have multiple telephone numbers. On August 20, 2019, PERSAUD again called the University of St. Thomas via TextMe and said there was a bomb in the John Roach Center, a classroom building on the St. Paul campus, which was subsequently evacuated and closed for the day. On September 17, 2019, PERSAUD called the University of St. Thomas again, through a different VOIP app, and stated that there were bombs in the O’Shaughnessy Science Center, the John Roach Center, the Anderson Student Center, and the Facilities Design Center. All four buildings were subsequently evacuated. Investigators were able to trace the origin of the September 17, 2019, calls to PERSAUD’s home address in Blaine, Minnesota.
This case is the result of an investigation conducted by the FBI and the Saint Paul Police Department.
This case is being prosecuted by Assistant U.S. Attorney John Docherty.
Defendant Information:
RAY GHANSHAM PERSAUD, 20
Blaine, Minn.
Charges:
- Using an instrumentality of interstate commerce to make a threat to kill, injure, or intimidate any individual, and to damage or destroy any building, by means of fire and explosive, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
[1] The charges contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
South Bend, Indiana Man Sentenced to 10 Years in PrisonRead the Press Release
SOUTH BEND - Mark Peppers, age 35, of South Bend, Indiana was sentenced before South Bend District Court Judge Robert L. Miller, Jr. for possession of child pornography, announced U.S. Attorney Kirsch.
Mr. Peppers was sentenced to 120 months in prison, 10 years of supervised release and ordered to pay restitution in the amount of $26,250.
According to documents in this case, in August of 2017, Mr. Peppers was in possession of a micro SD card that contained videos of a naked 4-year old female child which displayed close up images of the child’s private parts. In a plea agreement, Mr. Peppers admitted that the images were in fact child pornography.
This case was investigated by the Federal Bureau of Investigations with the assistance of the South Bend Police Department. The case was handled by Assistant U.S. Attorney John Maciejczyk.
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Sioux City Man Who Fled from Police with Stolen Gun, Sentenced to Federal PrisonRead the Press Release
A Sioux City man was sentenced September 20, 2019, to more than 9 years in federal prison.
On April 25, 2019, Brandon Esquibel, age 26, from Sioux City, Iowa, pled guilty to felon in possession of a firearm. Esquibel was previously convicted of a felony controlled substance violation in 2012 and possession of a controlled substance 3rd or subsequent offense in 2017, both in the Iowa District Court.
Evidence at the detention, change of plea, and sentencing hearings revealed that on October 30, 2018, defendant fled from law enforcement, grabbed a gun from his waistband and discarded it as he fled. During the foot pursuit, defendant ran into an officer, grabbing the handrails of the officer’s rifle. Esquibel continued to flee from officers and was subsequently tased, and taken into custody. Law enforcement later determined that the firearm defendant possessed – a loaded pistol -- had been reported as stolen.
Esquibel has a substantial criminal history, including an assault conviction and involvement in an assault committed while he was in custody. In addition, Esquibel has a history of fleeing from law enforcement, and violating previous grants of release from custody.
Esquibel was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Esquibel was sentenced to 110 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Esquibel is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Sioux City, Iowa Police Department and prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-4005.
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Serial Armed Bank Robber Sentenced to 9 Years in Federal PrisonRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of DAMIEN JAMES McDONALD, 41, to 110 months in prison. McDONALD pleaded guilty on March 8, 2019, to two counts of armed bank robbery. He was sentenced earlier today by U.S. District Court Judge Wilhelmina M. Wright, in St. Paul, Minnesota.
According to the defendant’s guilty plea and documents filed in court, on April 14, 2018, the defendant brandished and pointed a firearm at two tellers working at a local U.S. Bank branch and demanded they fill a plastic Aldi’s grocery shopping bag with money from their teller drawers. On June 6, 2018, the defendant robbed at gunpoint a credit union in Eagan. Again, he pointed a firearm at the tellers, demanding that they fill his bag with cash. Surveillance video captured the defendant stopping in front of the credit union in a Mazda CX-7 SUV then leaving in the same Mazda at the conclusion of the robbery. Upon execution of a search warrant on vehicles and at a residence associated with McDONALD later that day, law enforcement recovered clothing and sneakers that matched the clothing and sneakers worn by the robber, a bandana worn by the robber to partially cover his face, and thousands of dollars in cash hidden inside the residence. Additionally, cash that matched marked bills taken from the credit union were found on McDONALD.
This case is a result of an investigation conducted by the Federal Bureau of Investigation, including its Cellular Analysis Survey Team and Computer Analysis Response Team, the Eagan Police Department, and the Roseville Police Department.
This case is being prosecuted by Assistant United States Attorneys Benjamin Bejar and Thomas Calhoun-Lopez.
Defendant Information:
DAMIEN JAMES MCDONALD, 41
St. Paul, Minn.
Convicted:
- Bank robbery (armed), 2 counts
Sentenced:
- 110 months in prison
- 5 years Supervised Release
- $12,261 in restitution
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Senior Manager at Fiat Chrysler Automobiles Charged in Connection with a Conspiracy to Mislead Regulators and the Public about Diesel Vehicle EmissionsRead the Press Release
A senior manager of diesel drivability and emissions at Fiat Chrysler Automobiles (FCA) was charged in an indictment unsealed today for his alleged role in a conspiracy to mislead U.S. regulators, customers and the public by making false and misleading statements about the emissions control software used in more than 100,000 FCA diesel vehicles in order to increase the vehicles’ emissions when they were not running on federal emissions test cycles.
Emanuele Palma, 40, an Italian citizen and resident of Bloomfield Hills, Michigan, is charged with one count of conspiracy to defraud the United States, to violate the Clean Air Act and to commit wire fraud. Palma is also charged with six counts of violating the Clean Air Act, four counts of wire fraud and two counts of making false statements to representatives of the FBI and the U.S. Environmental Protection Agency’s Criminal Investigation Division (EPA-CID).
“Cheating government regulators, customers, and the public for increased sales and compensation will be prosecuted by the Department of Justice to the fullest extent of the law,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The indictment unsealed today demonstrates that the Criminal Division is committed to investigating and prosecuting sophisticated criminal schemes and corporate crimes that violate the Clean Air Act and other federal laws.”
“Emanuele Palma is alleged to have lied to the EPA, impeding its mission,” said U.S. Attorney Matthew Schneider of the Eastern District of Michigan. “The charges announced today are serious ones, and reflect my office’s commitment to preserving the integrity of the American regulatory system.”
“The defendant is alleged to have knowingly misled EPA regulators to cover up illegal emissions control software installed in certain Fiat Chrysler diesel vehicles,” said Susan Bodine, EPA Assistant Administrator for Enforcement and Compliance Assurance. “We are prepared to use our criminal authorities when faced with allegations of lying and cheating to evade U.S. emissions standards.”
“The indictment in this case should signal to corporations and individuals working for them that there are significant consequences for attempting to bypass US emissions tests and defraud the American people,” said Special Agent in Charge Steven M. D'Antuono of the FBI’s Detroit Field Office. “The FBI is committed to working alongside our US and international partners to investigate these corporate crimes and to hold those who are alleged to violate environmental regulations accountable for their actions.”
As alleged in the indictment, Palma led a team of engineers in the United States responsible for developing and calibrating the 3.0-liter diesel engine used in certain FCA diesel vehicles. Palma supervised the calibration of several software features in the vehicles’ emissions control systems to meet emissions standards for nitrogen oxides (NOx), a family of poisonous gases that are formed when diesel fuels are burned at high temperatures.
The indictment alleges that Palma and his co-conspirators purposefully calibrated the emissions control functions to produce lower NOx emissions under conditions when the subject vehicles would be undergoing testing on the federal test procedures or driving “cycles,” and higher NOx emissions under conditions when the subject vehicles would be driven in the real world.
Palma and his co-conspirators allegedly referred to the manner in which they manipulated one method of emissions control as “cycle detection.” The indictment alleges that by calibrating the emissions control functions on the subject vehicles to produce lower NOx emissions while the vehicles were on the driving “cycle,” and higher NOx emissions when the vehicles were off the driving “cycle,” or “off cycle,” Palma and his co-conspirators purposefully misled FCA’s regulators by making it appear that the subject vehicles were producing less NOx emissions than they were in real world driving conditions. Palma and his co-conspirators allegedly calibrated the subject vehicles’ emission control systems to make them more attractive to FCA’s potential customers, i.e., by increasing fuel economy and reducing the frequency of a required emissions control system service interval, rather than to maximize the reduction of NOx emissions.
As further alleged in the indictment, Palma and his co-conspirators made and caused others to make false and misleading representations to FCA’s regulators about the emissions control functions of the subject vehicles in order to ensure that FCA obtained regulatory approval to sell the subject vehicles in the United States.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI and EPA-CID investigated the case. Securities and Financial Fraud Unit Deputy Chief Henry P. Van Dyck and Trial Attorneys Kyle W. Maurer and Jason M. Covert of the Criminal Division’s Fraud Section, Senior Trial Attorney Todd W. Gleason of the Environment and Natural Resources Division’s Environmental Crime Section and Assistant U.S. Attorney Timothy J. Wyse of the U.S. Attorney’s Office for the Eastern District of Michigan are prosecuting the case. The Criminal Division’s Office of International Affairs also assisted in the case.
Second Parent Sentenced to Prison in College Admissions CaseRead the Press Release
BOSTON – A California businessman became the second parent to be sentenced to prison today in connection with his involvement in the college admissions case.
Devin Sloane, 53, was sentenced by U.S. District Judge Indira Talwani to four months in prison, two years of supervised release, and ordered to complete 500 hours of community service and pay a fine of $95,000. Sloane is the chief executive officer of AquaTecture, LLC, a privately held Los Angeles-based company involved in the water and wastewater industries. In May 2019, Sloane pleaded guilty to one count of conspiracy to commit mail fraud and honest services mail fraud. The government recommended a sentence of one year and one day in prison, one year of supervised release and a fine of $75,000.
Sloane conspired with William “Rick” Singer and others to have his son admitted to the University of Southern California (USC) as a water polo recruit, even though his son did not play water polo. As part of the scheme, Sloane purchased water polo gear online, and photographed his son purporting to play water polo in the family swimming pool, later hiring a graphic design firm to manipulate the photos to make them appear more realistic. Sloane made a purported contribution of $200,000 to Singer’s sham charity, Key Worldwide Foundation, and a $50,000 payment to USC Women's Athletics, a fund controlled by defendant Donna Heinel.
Previously, the first parent sentenced in the case, Felicity Huffman, was sentenced to two weeks in prison for her involvement in the scheme.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright, and Kristen A. Kearney of Lelling’s Securities and Financial Fraud Unit are prosecuting the case.
Second Appalachian Region Prescription Opioid Strikeforce Takedown Results in Charges Against 13 Individuals, including 11 PhysiciansRead the Press Release
Memphis, TN – The Justice Department announced today the second coordinated law enforcement action of the Appalachian Region Prescription Opioid (ARPO) strike force, resulting in charges against 13 individuals across five Appalachian federal districts for alleged offenses relating to the over prescription of controlled substances through "pill mill" clinics. Of those charged, 12 were charged for their role in unlawfully distributing opioids and other controlled substances and 11 were physicians. The alleged conduct resulted in the distribution of more than 17 million pills.
This action follows the first such takedown in April of this year, which involved charges against 60 defendants, including 53 medical professionals, in 11 federal districts, alleging the illegal distribution of more than 23 million pills. The charges brought in April have already resulted in 11 guilty pleas in seven federal districts, including guilty pleas by nine medical professionals, including seven physicians.
The charges announced today aggressively prosecute medical professionals whose alleged prescribing behaviors have contributed to the opioid epidemic, particularly medical professionals who are involved in the unlawful distribution of opioids and other prescription narcotics, a particular focus for the Department. According to the CDC, approximately 115 Americans die every day of an opioid-related overdose.
"The Department of Justice will not relent in its aggressive pursuit of those responsible for fueling the opioid epidemic in Appalachia," said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. "Medical professionals who violate their solemn oaths and peddle opioids for profit should know that we will find you and ensure that the justice system treats you like the drug dealer you are."
"Opioid misuse and abuse is an insidious epidemic, and unfortunately, causes individuals to engage in criminal behavior that contributes to the problem," said U.S. Attorney D. Michael Dunavant of the Western District of Tennessee. "Just as this office will hold medical professionals accountable for over-prescribing opioids, we will also pursue federal charges against any person who exploits the medical profession for their own selfish desire to obtain highly addictive prescription drugs by dishonest methods."
In the Western District of Tennessee, one defendant was charged. Additionally, three medical professionals have pleaded guilty.
Erin Pealor, 35, of Memphis, was charged with nine counts of attempting to acquire or obtain a controlled substance by misrepresentation by fraud, forgery, deception or subterfuge. The charges stem from Pealor’s role in knowingly and intentionally attempting to obtain Schedule II controlled substances, namely Ritalin, Adderall, Methylin andMethylphenidate, by fraud, forgery, deception and subterfuge, by filling out prescriptions with false and fraudulent patient names and forging the signature of a physician. This case was brought with the assistance of the DEA and the State of Tennessee-OIG. The case is being prosecuted by Trial Attorney Ann Weber Langley of the Fraud Section and Assistant U.S. Attorney Mark Erskine of the Western District of Tennessee.
In addition, several indictments brought in the coordinated action in April 2019 have already resulted in guilty pleas. On July 22, 2019, Michael Hellman, a physician, pleaded guilty to one count of distribution of a controlled substance and one count of conspiracy to distribute a controlled substance. These charges stem from Hellman prescribing Percocet and Promethazine with Codeine outside the scope of professional practice and not for a legitimate medical purpose. The case is being prosecuted by Trial Attorney Jillian Willis and Assistant U.S. Attorney Gregory Allen of the Western District of Tennessee.
On April 16, 2019, Kathryn Russell, a nurse practitioner who practiced in Memphis, Tennessee, pleaded guilty to conspiracy to unlawfully distribute controlled substances. Russell wrote prescriptions for opioids that had no legitimate medical purpose and that were outside the usual course of professional practice. In an eight-week period, Russell prescribed more than 7,800 oxycodone pills, more than 6,000 benzodiazepine pills, and more than 1,000 pills of carisoprodol.
On Sept. 19, 2019, Michelle Bonifield, a Bells pharmacy technician pleaded guilty to filling an opioid prescription without a legitimate medical purpose while working at Mehr Drug Store.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent until and unless proven guilty.
The Fraud Section leads the ARPO Strike Force. Since its inception in October 2018, the ARPO Strike Force, which operates in 10 districts, has charged more than 70 defendants who are collectively responsible for distributing more than 40 million pills.
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Second Appalachian Region Prescription Opioid Strikeforce Takedown Results in Charges Against 13 Individuals, Including 11 PhysiciansRead the Press Release
The Justice Department announced today the second coordinated law enforcement action of the Appalachian Region Prescription Opioid (ARPO) strike force, resulting in charges against 13 individuals across five Appalachian federal districts for alleged offenses relating to the over prescription of controlled substances through “pill mill” clinics. Of those charged, 12 were charged for their role in unlawfully distributing opioids and other controlled substances and 11 were physicians. The alleged conduct resulted in the distribution of more than 17 million pills.
This action follows the first such takedown in April of this year, which involved charges against 60 defendants, including 53 medical professionals, in 11 federal districts, alleging the illegal distribution of more than 23 million pills. The charges brought in April have already resulted in 11 guilty pleas in seven federal districts, including guilty pleas by nine medical professionals, including seven physicians.
The charges announced today aggressively prosecute medical professionals whose alleged prescribing behaviors have contributed to the opioid epidemic, particularly medical professionals who are involved in the unlawful distribution of opioids and other prescription narcotics, a particular focus for the Department. According to the CDC, approximately 115 Americans die every day of an opioid-related overdose.
Today’s enforcement actions were led and coordinated by the Health Care Fraud Unit of the Criminal Division’s Fraud Section in conjunction with its ARPO Strike Force, a partnership between the Criminal Division, U.S. Attorney’s Offices, the FBI, DEA and the U.S. Health and Human Services-Office of Inspector General (HHS-OIG). In addition, the operation includes the participation of various other federal, state and local law enforcement agencies, including the Tennessee Bureau of Investigation (TBI), Ohio Medicaid Fraud Control Unit and West Virginia Medicaid Fraud Control Unit. Additionally, the Centers for Medicare & Medicaid Services, Center for Program Integrity (CMS/CPI) announced today that all appropriate administrative actions would be taken based on these charges.
“The Department of Justice will not relent in its aggressive pursuit of those responsible for fueling the opioid epidemic in Appalachia,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Medical professionals who violate their solemn oaths and peddle opioids for profit should know that we will find you and ensure that the justice system treats you like the drug dealer you are.”
“We have taken a very tough stance against those that fuel the opiate crisis at every level including pill writers, pill fillers and drug dealers,” said U.S. Attorney Mike Stuart of the Southern District of West Virginia. “The unlawful distribution of controlled substances is a serious matter that gets my office’s full attention. It is one of our highest priorities for prosecution as we continue with our efforts to protect the public and the people of West Virginia. And for those that struggle or have a loved one that struggles with addiction and substance use disorder, I again urge treatment and recovery. While we remain tough in our actions against those who feed this crisis, my sincere and prayerful hope is that everyone who needs help gets help on their path to true recovery.”
“From street corner to clinic, the Department of Justice continues to show its resolve in bringing to justice those responsible for the opioid crisis in America,” said U.S. Attorney Jay E. Town of the Northern District of Alabama. “A federal courtroom awaits those who have sacrificed the efficacy of care for the evils of greed.”
“We said in April that the ARPO strike force was not a one-and-done spectacle, but an enduring commitment to stamp out opioid trafficking by prescription pad. We meant it,” said U.S. Attorney Benjamin C. Glassman of the Southern District of Ohio. “It’s thanks to the partnership between U.S. Attorney’s offices, the Criminal Division and our law enforcement partners that the United States is able to investigate and prosecute not only medical professionals who are allegedly acting as drug dealers, but also the myriad other malefactors who have contributed—and are contributing—to the opioid epidemic.”
“Opioid misuse and abuse is an insidious epidemic, and unfortunately, causes individuals to engage in criminal behavior that contributes to the problem,” said U.S. Attorney D. Michael Dunavant of the Western District of Tennessee. “Just as this office will hold medical professionals accountable for over-prescribing opioids, we will also pursue federal charges against any person who exploits the medical profession for their own selfish desire to obtain highly addictive prescription drugs by dishonest methods.”
“Today marks another successful operation by the Appalachian Regional Prescription Opioid Strike Force against the illegal distribution of opioids which endanger our neighbors and the communities we live in,” said Assistant Director Terry Wade of the FBI’s Criminal Investigative Division. “Through strong cooperation between the FBI and its law enforcement partners, the Strike Force’s coordinated efforts resulted in bringing those responsible for this egregious and costly epidemic to justice. The FBI will continue to make illegal opioid distribution investigations a top priority.”
“Illegal diversion of opioids and other controlled substances may lead to drug addiction and deaths, as well as a drain on resources that could be used to provide legitimate healthcare services,” said Special Agent in Charge Maureen R. Dixon of HHS-OIG. “We will continue to work closely with our law enforcement partners to bring criminals to justice, and enable honest healthcare providers to better serve Medicare and Medicaid beneficiaries.”
“The opioid epidemic continues to have deadly consequences for our state,” said Assistant Director Mike Cox of the Tennessee Bureau of Investigation Medicaid Fraud Control Division. “We will continue working with our law enforcement partners to target dishonest healthcare professionals who contribute to the problem by illegitimately prescribing opioids and other medications for profit.”
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In the Southern District of Ohio, four medical professionals were charged, including three medical doctors and one doctor of osteopathy, in connection with several alleged “pill mill” controlled substance diversion and/or health care fraud schemes.
Troy Balgo, D.O., 53, of Saint Clairsville, Ohio, the elected county coroner of Belmont County, Ohio, was charged with one count of health care fraud, one count of conspiracy to commit health care fraud, six counts of unlawful distribution of controlled substance and one count of conspiracy to commit unlawful distribution of controlled substances. These charges are based on an alleged scheme by which Balgo caused and/or conspired with others to cause submissions for health care services that he did not perform, and to prescribe controlled substances while he was out of the state or country. Balgo is the owner and operator of two medical clinics in St. Clairsville, Belmont County. The DEA, FBI and HHS-OIG, as well as the U.S. Department of Defense Office of Inspector General (DOD-OIG), the U.S. Department of Labor (DOL), the Ohio Attorney General’s Office, the Ohio Bureau of Worker’s Compensation and the Ohio Board of Pharmacy investigated this case. The case is being prosecuted by Trial Attorney Christopher Jason of the Criminal Division’s Fraud Section.
George Griffin, M.D., 70, of Cincinnati, Ohio, was charged with 20 counts of distribution of controlled substances for his alleged participation in the unlawful prescription of controlled substances outside of the course of professional practice and without a legitimate medical purpose. Griffin owns and operates a solo medical practice in Cincinnati, Hamilton County. The DEA, FBI and HHS-OIG, as well as DOD-OIG, the Ohio Attorney General’s Office, the Ohio Bureau of Worker’s Compensation and the Ohio Board of Pharmacy investigated this case. The case is being prosecuted by Trial Attorney Christopher Jason of the Criminal Division’s Fraud Section.
Thomas Romano, M.D., 69, of Wheeling, West Virginia, was charged with 20 counts of diversion of controlled substances for his alleged participation in the unlawful prescription of controlled substances outside of the course of professional practice and without a legitimate medical purpose. Romano owns and operates a solo cash-only medical practice in Martin’s Ferry, Belmont County. The DEA, FBI and HHS-OIG, as well as the Ohio Bureau of Worker’s Compensation and Ohio Board of Pharmacy investigated this case. The case is being prosecuted by Trial Attorney Christopher Jason of the Criminal Division’s Fraud Section.
Freeda Flynn, M.D., 66, of Saint Clairsville, Ohio, was charged with eight counts of distribution of controlled substances, and one count of health care fraud, for her alleged participation in the unlawful prescription of controlled substances outside of the course of professional practice and without a legitimate medical purpose, and health care fraud for the submission of claims for services which were medically unnecessary and/or performed below medically-accepted standards. Flynn owns and operates a solo practice with focuses on medical and opioid addiction treatment programs in St. Clairsville, Belmont County. The DEA, FBI, HHS, as well as DOD-OIG, the Ohio Attorney General’s Office and the Ohio Board of Pharmacy investigated this case. The case is being prosecuted by Trial Attorney Christopher Jason of the Criminal Division’s Fraud Section.
In the Southern District of West Virginia, four individuals, including three doctors, were charged as part of today’s announcements. Additionally, three doctors have pleaded guilty as a result of the April ARPO Takedown.
Dr. Michael Shramowiat, 66, of Vienna, West Virginia was charged with allegedly unlawfully distributing controlled substance without a legitimate medical purpose. This case was investigated by the DEA, HHS-OIG and Hurricane Police Department. The case is being prosecuted by Assistant Chief Kilby Macfadden and Trial Attorney Sean O’Connell of the Fraud Section.
Dr. Ricky Houdersheldt, 67, of Ona, West Virginia, was charged with allegedly unlawfully distributing controlled substance without a legitimate medical purpose. This case was investigated by the DEA, HHS-OIG and Hurricane Police Department. These cases are being prosecuted by Assistant Chief Kilby Macfadden and Trial Attorney Sean O’Connell of the Fraud Section.
Dr. Sriramloo Kesari, 77, of Charleston, West Virginia, was charged with allegedly unlawfully distributing controlled substance without a legitimate medical purpose. This case was investigated by the DEA, HHS-OIG and Hurricane Police Department. These cases are being prosecuted by Assistant Chief Kilby Macfadden and Trial Attorney Sean O’Connell of the Fraud Section.
Julie Wheeler, 43, of Oak Hill, West Virginia, owner and operator of JRW Homecare Support Services, was charged with health care fraud. The charge stems from Wheeler’s scheme to defraud the Veterans Health Administration’s Spina Bifida Health Care Benefits Program. The U.S. Veterans Affairs-CID investigated the case. The case is being prosecuted by Assistant U.S. Attorney Erik Goes of the Southern District of West Virginia.
On Sept. 3, 2019, Marc Spelar, 37, of Huntington, West Virginia, a psychiatrist, pleaded guilty to one count of illegal drug distribution charged in an April 2019 indictment. The charges stem from Spelar’s unlawful distribution of Schedule II narcotics, including dextroamphetamine, methylphenidate and amphetamine salt to a patient who did not have a medical need for the drugs. Spelar did not perform examinations of any kind prior to dispensing the narcotics even though the patient had a history of abusing narcotics. Spelar no longer has his medical license or his DEA registration. The DEA and HHS-OIG investigated this case. The case is being prosecuted by Assistant Chiefs Kilby Macfadden and Daniel Griffin of the Fraud Section.
On Sept. 23, 2019, Dr. Jeffery Addison, 64, of Charleston, West Virginia, pleaded guilty to conspiracy distribution of controlled substance without a legitimate medical purpose. The DEA and HHS-OIG investigated the case. The case is being prosecuted by Assistant Chief Kilby Macfadden and Trial Attorney Sean O’Connell.
On Aug. 22, 2019, Dr. Muhammed Samer Nasher-Alneam, 47, of Charleston, West Virginia, pleaded guilty to illegal distribution of controlled substances without legitimate medical purposes. Nasher admitted to prescribing methadone pills outside of the bounds of professional medical practice and not for legitimate medical purposes. Pursuant to his guilty plea, Nasher agreed to permanently surrender both his medical license and DEA registration. He further agreed to never seek reinstatement of a license to practice as a medical doctor in West Virginia or any other state. The FBI, DEA, HHS-OIG, the DOL-Office of Inspector General, the West Virginia State Police and the West Virginia Insurance Commission investigated the case. The case is being prosecuted by Assistant U.S. Attorneys Alan McGonigal, Jennifer Herrald and Steve Loew of the Southern District of West Virginia.
In the Eastern District of Tennessee, two medical doctors were charged. Additionally, one physician charged in April has pleaded guilty.
Frank McNeil, M.D., 78, of Knoxville, Tennessee, was charged with one count of unlawful distribution of controlled substances. The charges stem from McNeil’s role in prescribing high doses of opioids with no medical legitimacy, while failing to perform urine drug screens and obtain any imaging. The DEA, TBI, FBI and HHS-OIG investigated the case. The case is being prosecuted by Trial Attorney Louis Manzo of the Fraud Section and Assistant U.S. Attorney Anne-Marie Svolto of the Eastern District of Tennessee.
Samuel Mcgaha, M.D., 69, of Sevierville, Tennessee, was charged with one count of unlawful distribution of controlled substances. The charges stem from Mcgaha’s role as a family practitioner in Morristown, Tennessee, who prescribed opioids and other medications without a legitimate medical purpose. The DEA, TBI, FBI and HHS-OIG investigated the case. The case is being prosecuted by Trial Attorney Louis Manzo of the Fraud Section and Assistant U.S. Attorney Anne-Marie Svolto of the Eastern District of Tennessee.
In addition, on Aug. 13, 2019, Harrison Yang, M.D., 75, of Manchester, Tennessee, pleaded guilty to one count of making a false statement relating to a health care matter charged in an April 2019 indictment as part of the coordinated action in April. The charges stem from Yang writing prescriptions for opioids that had no legitimate medical purpose and that were outside the usual course of professional practice. The case is being prosecuted by Trial Attorney Lou Manzo and Assistant Chief Drew Bradylyons of the Fraud Section and Assistant U.S. Attorney Scott Winne of the Eastern District of Tennessee.
In the Western District of Tennessee, one defendant was charged. Additionally, three medical professionals have pleaded guilty.
Erin Pealor, 35, of Memphis, was charged with nine counts of attempting to acquire or obtain a controlled substance by misrepresentation by fraud, forgery, deception or subterfuge. The charges stem from Pealor’s role in knowingly and intentionally attempting to obtain Schedule II controlled substances, namely Ritalin, Adderall, Methylin and Methylphenidate, by fraud, forgery, deception and subterfuge, by filling out prescriptions with false and fraudulent patient names and forging the signature of a physician. This case was brought with the assistance of the DEA and the State of Tennessee-OIG. The case is being prosecuted by Trial Attorney Ann Weber Langley of the Fraud Section and Assistant U.S. Attorney Mark Erskine of the Western District of Tennessee.
In addition, several indictments brought in the coordinated action in April 2019 have already resulted in guilty pleas. On July 22, 2019, Michael Hellman, a physician, pleaded guilty to one count of distribution of a controlled substance and one count of conspiracy to distribute a controlled substance. These charges stem from Hellman prescribing Percocet and Promethazine with Codeine outside the scope of professional practice and not for a legitimate medical purpose. The case is being prosecuted by Trial Attorney Jillian Willis and Assistant U.S. Attorney Gregory Allen of the Western District of Tennessee.
On April 16, 2019, Kathryn Russell, a nurse practitioner who practiced in Memphis, Tennessee, pleaded guilty to conspiracy to unlawfully distribute controlled substances. Russell wrote prescriptions for opioids that had no legitimate medical purpose and that were outside the usual course of professional practice. In an eight-week period, Russell prescribed more than 7,800 oxycodone pills, more than 6,000 benzodiazepine pills, and more than 1,000 pills of carisoprodol.
On Sept. 19, 2019, Michelle Bonifield, a Bells pharmacy technician pleaded guilty to filling an opioid prescription without a legitimate medical purpose while working at Mehr Drug Store.
In the Northern District of Alabama, one defendant charged in April 2019 has pleaded guilty.
On Aug. 6, 2019, Christopher Wray, of Arab, Alabama, a prescription forger, pleaded guilty to twelve counts of obtaining a controlled substance by misrepresentation, fraud, forgery or deception. Previously charged in an April 2019 indictment, the charges stem from a forgery scheme to use a local doctor’s name and DEA number to fraudulently obtain over a thousand opioids and other controlled substances. The case was investigated by the DEA with assistance from the Guntersville Police Department. The case is being handled by Trial Attorney Devon Helfmeyer of the Fraud Section.
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The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent until and unless proven guilty.
The Fraud Section leads the ARPO Strike Force. Since its inception in October 2018, the ARPO Strike Force, which operates in 10 districts, has charged more than 70 defendants who are collectively responsible for distributing more than 40 million pills.
Rosebud Man Sentenced on Meth Trafficking and Felony Gun ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance and Possession of a Firearm by a Prohibited Person was sentenced on September 20, 2019, by U.S. District Judge Roberto A. Lange.
Cody Spotted Tail, age 34, was sentenced to 87 months in federal prison, followed by 4 years of supervised release, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $200.
Spotted Tail was indicted by a federal grand jury on December 11, 2018. He pled guilty on July 2, 2019.
The conviction stemmed from a drug conspiracy that occurred beginning no later than October 15, 2018, and continuing to November 2, 2018, in which Spotted Tail knowingly and intentionally conspired with his co-defendants to distribute and possess with the intent to distribute methamphetamine, a Schedule II controlled substance, in the District of South Dakota. Further, Spotted Tail was an unlawful user of and addicted to a controlled substance, which prohibited him from possessing firearms, and he was in possession of a firearm at the time of his arrest. At the time of his arrest, law enforcement recovered 256 grams of methamphetamine, scales, baggies, and other drug trafficking items.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force and Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Meghan N. Dilges prosecuted the case.
Spotted Tail was immediately turned over to the custody of the U.S. Marshals Service.
Rosebud Man Sentenced for Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury was sentenced on September 23, 2019, by U.S. District Judge Roberto A. Lange.
Dylan Blue Thunder, a/k/a Dylan Black Lance, age 20, was sentenced to 36 months in federal prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Blue Thunder was indicted by a federal grand jury on April 9, 2019. He pled guilty on July 1, 2019.
The conviction stemmed from an incident that occurred on March 29, 2019, wherein Blue Thunder assaulted another man with a knife. The victim suffered serious injuries, including a large laceration across his neck, as a result of the assault.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Michael J. Elmore prosecuted the case.
Blue Thunder was immediately turned over to the custody of the U.S. Marshals Service.
Real Estate Agent Recruiter Charged with Fraud in Alleged Sales Commission Inflation SchemeRead the Press Release
NEWARK, N.J. – A real estate agent recruiter was arrested today on charges stemming from a scheme to inflate sales commissions, U.S. Attorney Craig Carpenito announced.
Russell Stinnett, 54, of Mt. Pleasant, South Carolina was indicted by a federal grand jury on Sept. 23, 2019, on five counts of wire fraud. He is scheduled to appear later today before U.S. Magistrate Judge Bristow Marchant in Charlestown, South Carolina, federal court. Stinnett will be arraigned in Newark federal court at a later date.
According to the indictment:
Between January 2017 and April 2019, Stinnett engaged in a scheme to misrepresent the sales value of real estate sold by agents that he recruited to work for the victim real estate company in order to boost his own commission payouts. Stinnett obtained sales data for the agents he recruited, then doctored the data to make it appear as if his recruits sold more real estate than they actually had. Stinnett then submitted the doctored sales data to his employer using his business email or a commission claim portal that was received and processed in New Jersey. Stinnett’s employer paid him commissions on sales that his recruits never actually made, resulting in a loss of approximately $1 million to his employer.
The five counts of wire fraud with which Stinnett is charged each carry a maximum potential punishment of 20 years in prison and a fine of up to $250,000, or twice the gross loss or gain caused by the offense.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to the indictment.
The government is represented by Assistant U.S. Attorney Ari B. Fontecchio of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Readout of Principal Deputy Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division Meeting with Paraguay Vice President Hugo Velazquez and Other DelegatesRead the Press Release
Earlier today, Principal Deputy Assistant Attorney General John P. Cronan of the U.S. Department of Justice’s (DOJ) Criminal Division met with Vice-President Hugo Velazquez, Minister of the Anti-Money Laundering Secretariat Carlos Arregui, and Minister of Intelligence Esteban Aquino of Paraguay in Washington, DC.
They discussed coordination on law enforcement matters including extraditions and the need to join forces to combat drug trafficking, illicit financial schemes, investigating and prosecuting complex financial and terrorism financing cases and other transnational crimes.
The past two years have seen a significant increase in bilateral law enforcement cooperation, given the global reach of transnational crime. Principal Deputy Assistant Attorney General Cronan expressed his gratitude to Paraguay for the successful extradition of multiple fugitives in the past two years. Principal Deputy Assistant Attorney General Cronan also commended Paraguay’s action last month to designate ISIS, al-Qaida, Hamas, and Hizballah as terrorist organizations. The Justice Department has offered to support Paraguay in combatting terrorism and fully and effectively implementing these designations.
They discussed their cooperative criminal investigative efforts between the United States and Paraguay as well as the case-based mentoring and technical assistance that the Office of Overseas Prosecutorial Development, Assistance, and Training (OPDAT), and its Asuncion-based Resident Legal Advisor (RLA) is providing.
Both sides agreed to continued collaboration between Justice Department entities and counterparts in the region to achieve their law enforcement priorities.
Rapid City Man Sentenced for Assault by Strangulation and Suffocation and EscapeRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Assault by Strangulation and Suffocation and Escape from Custody was sentenced on September 23, 2019, by U.S. District Judge Roberto A. Lange.
Roger James Spider, II, a/k/a Roger Spider, Jr., age 29, was sentenced to a total of 40 months in federal prison. He was sentenced to 37 months in federal prison for Assault by Strangulation and Suffocation, and 3 months in federal prison for Escape from Custody, with such sentences to be served consecutively, followed by 3 years of supervised release. Spider was also ordered to pay a special assessment to the Federal Crime Victims Fund in the amount of $200.
The conviction for Assault by Strangulation and Suffocation stemmed from an incident that occurred on April 24, 2018, in Mission, South Dakota. On that date, Spider assaulted his girlfriend by grabbing her by the throat and strangling her until she began to lose consciousness. Spider was indicted by a federal grand jury on July 17, 2018. He pled guilty on July 1, 2019.
The conviction for Escape from Custody stemmed from conduct that occurred in January 2019, while Spider was in custody pending trial. On January 18, 2019, Spider was granted a furlough to undergo a medical evaluation in Rapid City on January 22, 2019. Spider subsequently failed to return from the furlough and was arrested in Rapid City on January 26, 2019. Spider was indicted by a federal grand jury on February 12, 2019. He plead guilty on July 1, 2019.
These cases were investigated by the Rosebud Sioux Tribe Law Enforcement Services, the U.S. Marshals Service, and the Rapid City Police Department. Assistant U.S. Attorney Kirk Albertson prosecuted the cases.
Spider was immediately turned over to the custody of the U.S. Marshals Service.
RI Family Dollar Stores to Address ADA Compliance IssuesRead the Press Release
PROVIDENCE – Family Dollar Stores of Rhode Island, LLC has agreed to a Settlement Agreement with the United States, under which it is required to undertake steps to review, identify, and address accessibility issues inside and outside of all 29 stores located in Rhode Island to bring them into compliance with the American with Disabilities Act (ADA), announced United States Attorney Aaron L. Weisman.
The company will also pay a civil penalty to the United States.
This agreement follows an investigation by the United States Attorney’s Office under Title III of the ADA, which prohibits discrimination on the basis of disability in the full and equal enjoyment of the goods, services, facilities, privileges, advantages, or accommodations of any place of public accommodation. Although it is a private entity, Family Dollar Stores are places of “public accommodation” within the meaning of Title III of the ADA.
The United States’ investigation determined that Family Dollar stores in Rhode Island were not being maintained to ensure sufficient access for persons with disabilities, including access to accessible parking spaces, front entrances, and store aisles. The investigation was prompted by complaints to the United States Attorney’s office by persons with disabilities who use mobility aids, such as wheelchairs and walkers.
According to the Settlement Agreement, Family Dollar Stores of Rhode Island, which cooperated fully with the investigation, has agreed to ensure that its employees will not place merchandise, shopping carts, boxes, and/or any other items in areas of its facilities, including both inside and outside of its stores, where such placement reduces or eliminates accessibility; will hire or designate an employee to serve as an ADA Coordinator with sufficient training and authority to undertake meaningful efforts to ensure that all Family Dollar Stores are in compliance with the Agreement; and within 60 days all regional, district and store managers and employees will undergo complete training regarding Title III of the ADA.
Additionally, Family Dollar Stores of Rhode Island has agreed to pay the United States government a civil penalty of $7,500 and to remedy all violations within six months.
This matter was litigated by Assistant U.S. Attorney Amy R. Romero.
The U.S. Attorney’s Office for the District of Rhode Island is committed to investigating alleged violations of the Americans with Disabilities Act. Those interested in learning more about architectural barriers to access under the Americans with Disabilities Act may access www.ada.gov, visit the web site of the United States Attorney’s Office for the District of Rhode Island at www.justice.gov/usao-ri/civil-rights-enforcement, or call the Department of Justice’s toll-free information line at (800) 514-0301 or (800) 514-0383 (TTY). Information about filing a complaint, including instructions for filing a complaint online, can be found at www.ada.gov/filing_complaint.htm..
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Philadelphia Man Sentenced for Drug Offense in WinooskiRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Robert Thorn, 50, of Philadelphia, Pennsylvania, was sentenced today in United States District Court in Rutland, Vermont for possessing with intent to distribute heroin and 28 grams or more of cocaine base. Chief U.S. District Judge Geoffrey W. Crawford sentenced Thorn to five years in prison, to be followed by a five-year period of supervised release.
According to court records and proceedings, on January 14, 2019, law enforcement stopped a vehicle after investigation into suspected drug activity at a residence in Winooski, Vermont. Thorn, a passenger in the vehicle, initially provided law enforcement a false name. Thorn was found to be carrying approximately 110 grams of cocaine base, over 8 grams of heroin, and over $3,300 in U.S. currency. Additional investigation revealed that Thorn, who was on probation at the time, had deposited over $36,000 cash in Vermont ATMs in approximately two months.
The government and Thorn entered into a plea agreement in which Thorn admitted to the offense. The Court accepted the parties’ agreement providing for a five year sentence and sentenced him accordingly.
Assistant U.S. Attorney Nicole Cate handled the prosecution. Thorn was represented by Assistant Federal Defender Steven Barth.
Operators of U.S. Coin Bullion, LLC to Plead Guilty to More Than $7 Million in FraudRead the Press Release
Orlando, Florida – United States Attorney Maria Chapa Lopez announces that brothers Salvatore Esposito (47, Orlando) and Joseph Esposito (43, Orlando) have agreed to plead guilty to an Information charging them with conspiracy to commit wire fraud and mail fraud. Each faces a maximum penalty of 20 years in federal prison. Their initial appearances and change of plea hearings have been scheduled for October 2, 2019.
According to court documents, the Espositos operated U.S. Coin Bullion, a local Orlando company formed in 2012. From 2014 to July 2019, the Espositos engaged in a conspiracy to defraud U.S. Coin Bullion’s customers. Instead of using the customers’ funds to purchase precious metals as had been promised, the Espositos caused U.S. Coin Bullion to use customer funds to pay other customers, to pay commissions and other business expenses, and to purchase silver for the company itself.
U.S. Coin Bullion used its customers’ funds to purchase silver on “margin,” or “leverage,” by which it acquired an interest in the silver by paying only a portion of its full price. The company took out loans to purchase the silver on margin and then used more customer funds to pay the interest associated with those loans, as well as storage fees for the silver. And, because it was buying on margin, U.S. Coin Bullion was subject to “margin calls”; if the market price for silver declined, the company might immediately have to deposit more (customer) funds into its accounts to maintain its interest in the silver.
U.S. Coin Bullion never told its customers that their funds were being used in this way. By at least 2016, it was regularly using its customers’ funds to buy millions of dollars worth of silver. When the price for silver fell from more than $35 an ounce (in 2012) to less than $15 an ounce during the conspiracy, the company experienced massive losses and had to spend customer funds due to margin calls.
To cover up U.S. Coin Bullion’s losses, the Espositos provided customers with false account statements making it appear that the company had purchased the silver for the customers (not itself) and that their accounts maintained value despite any drop in the market price of silver. Ultimately, U.S. Coin Bullion’s margin purchases resulted in a loss of nearly all the market value of the silver that its customers believed they had purchased and held.
An information is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
To date, the United States Secret Service has identified more than 120 victims who have been defrauded as a result of this conspiracy, with total losses of over $7.9 million. A dedicated email address ([email protected]) has been established for victims to provide victim impact statements and any other information related to their losses.
This case was investigated by the U.S. Secret Service, with assistance from the Florida Attorney General's Office of Citizen Services – Consumer Assistance Program which has provided invaluable assistance with the victims. This case is being prosecuted by Assistant United States Attorney Roger B. Handberg.
Operation Quack Attack Leads to Multiple Arrests in Chicot CountyRead the Press Release
LITTLE ROCK—Fifteen federal defendants are in custody after federal and state authorities made numerous arrests as part of an ongoing investigation. Operation Quack Attack has resulted in the identification of multiple drug traffickers and the seizure of large quantities of cocaine, crack cocaine, methamphetamine, and marijuana in the Chicot County area.
Operation Quack Attack, an Organized Crime Drug Enforcement Task Force investigation, is being conducted by the FBI and the Arkansas State Police. In 2016, authorities began a joint investigation after an increase in violence related to drug trafficking in the Chicot County area. Today’s arrests are announced by Cody Hiland, United States Attorney for the Eastern District of Arkansas, Diane Upchurch, Special Agent in Charge of the FBI Little Rock Field Office, and Arkansas State Police Colonel Bill Bryant, in conjunction with the unsealing of the indictments of 15 defendants who were charged by a federal grand jury on September 5, 2019. In addition to the FBI and Arkansas State Police, the Arkansas Community Correction Special Response Team provided assistance throughout the investigation. Assistance with today’s operation was also provided by the Lake Village Police Department and the Chicot County Sheriff’s Office.
Seven indictments charging 15 individuals in the Eastern District of Arkansas, along with a federal complaint charging one defendant in the Western District of Arkansas, were unsealed on Tuesday. Law enforcement officers arrested 11 defendants early Tuesday morning, while four defendants were already in federal or state custody on unrelated charges. Davidlon Palmer, 40, of Eudora, is the lone federal defendant in the investigation who remains a fugitive. Five defendants have pending state arrest warrants as part of the operation.
Individuals involved in this case have numerous violent prior criminal convictions, including state and federal drug trafficking offenses, aggravated assault, terroristic act, residential burglary, commercial burglary, murder 2nd degree, possession of firearms by certain persons, and interstate travel in aid of racketeering.
"Today’s arrests signify our commitment to stopping the violence that goes hand-in-hand with drug trafficking," U.S. Attorney Hiland said. "We appreciate the collaboration between the federal and state partners that made this investigation possible."
During the course of Operation Quack Attack, investigators conducted 58 controlled purchases of drugs and executed two search warrants. Authorities have seized more than 2.5 kilograms of methamphetamine, 229 grams of cocaine, 200 grams of crack cocaine, 128 grams of marijuana, and 6 firearms, as well as almost $17,000 in cash.
During arrest operations Tuesday morning six additional firearms, including two AR-style rifles and a "street sweeper" shotgun with a multi-shell drum attached, were recovered, as well as another $3,927 in suspected drug proceeds.
"Prolonged investigations such as Operation Quack Attack serve to highlight the positive and enduring working relationships amongst members of Arkansas law enforcement and protect our communities from violent drug traffickers," SAC Upchurch said. "It is with sincere appreciation that I would like to thank the U.S. Attorney’s Office, Arkansas State Police, and Arkansas Community Correction for their assistance with this investigation."
The defendants face various drug trafficking and gun charges. The most serious drug charges carry a penalty range of not less than 10 years in prison, and not more than life, a fine of up to $10,000,000, and not less than five years of supervised release.
The federal defendants arrested Tuesday will be arraigned before United States Magistrate Judge Joe J. Volpe on Thursday. The federal defendants in state custody will be arraigned at a later date.
Operation Quack Attack is a joint investigation between the FBI, the Arkansas State Police, and the Arkansas Community Correction Special Response Team. Assistant United States Attorney Julie Peters is prosecuting the case. An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
This news release, as well as additional information about the office of the United States Attorney for the Eastern District of Arkansas, is available online at:
http://www.justice.gov/edar
Twitter: @EDARNEWS
OPERATION QUACK ATTACK
FEDERAL INDICTMENTS/DEFENDANTS
United States v. Cantral Huggins et al., 4:19CR530 DPM
Cantral Huggins, aka Cantrell, aka Crumb – age 40, Benton, AR
Kashif Lucas – age 35, Lake Village, AR
Steven Jordan, aka Tar Baby – age 42, Little Rock, AR
Anthony Bailey, aka Antonio, aka Tony – age 30, Lake Village, AR
Deangalo Furlow – age 31, Lake Village, AR
Tiffany Huggins – age 32, Benton, AR
Latoya Jackson – age 35, Conway, AR
Tristen Taylor – age 21, Eudora, AR
Sheldon Wilson, aka Tae – age 39, Lake Village, AR
United States v. Ramien Collins, 4:19CR528 JM
Age 38, Monticello, AR
United States v. Deyvon King, 4:19CR531 JM
Age 41, of Lake Village, AR
United States v. Donnie Miller, 4:19CR532 BSM
Age 58, of Lake Village, AR
United States v. Davidlon Palmer, aka DP, 4:19CR533 KGB*
Age 40, of Eudora, AR
United States v. Everette Ross, aka Pumpkin, 4:19CR534 DPM
Age 49, of Lake Village, AR
United States v. Jessie Williams, aka Boone, 4:19CR535 BRW
Age 35, of Dermott, AR
* Fugitive
Online Bidder Pleads Guilty to Antitrust Charge for Rigging Bids at Government AuctionsRead the Press Release
Igor Yurkovetsky pleaded guilty today in connection with an ongoing investigation into a conspiracy to rig bids submitted to the General Services Administration (GSA), the Department of Justice announced.
According to the one-count felony charge filed in the U.S. District Court for the District of Minnesota in Minneapolis, Yurkovetsky conspired to rig bids at online public auctions of surplus government equipment conducted by the GSA. Yurkovetsky, a Pennsylvania resident, is charged with participating in the conspiracy from about July 2012 until as late as May 2018. He is the second individual charged in this investigation, and he has agreed to cooperate in the Department’s ongoing investigation.
“Today’s charge brings to justice another participant in a long-running conspiracy to corrupt online markets and cheat taxpayers and the federal government of the benefits of competition,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “This charge will not be the last in this investigation. The Department and its law enforcement partners are committed to prosecuting individuals who rig bids at government auctions.”
The GSA operates GSA Auctions, which offers the public the opportunity to bid electronically on a wide variety of federal assets, including computer equipment that is no longer needed by government agencies. GSA Auctions sells that equipment via its online auctions, and the proceeds of the auctions are distributed to the government agencies or the U.S. Treasury general fund. According to the charge, the primary purpose of the conspiracy was to suppress and eliminate competition. Additionally, the co-conspirators obtained the equipment by agreeing which co-conspirators would submit bids for particular lots offered for sale by GSA Auctions and which co-conspirator would be designated to win a particular lot.
“The integrity of GSA’s online systems and programs is vital to good government,” said Assistant Inspector General for Investigations James. E. Adams of the GSA. “The GSA Office of Inspector General will continue to ensure these systems and programs are free from corruption and manipulation.”
A criminal violation of Section 1 of the Sherman Act carries a maximum of 10 years in prison and a $1 million criminal fine for individuals. The maximum fines may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
The ongoing investigation into bid rigging at GSA auctions is being conducted by the Antitrust Division’s Chicago Office and the GSA Office of Inspector General’s Great Lakes Regional Investigations Office in Chicago, Illinois. Anyone with information concerning bid rigging or fraud related to GSA auctions should contact the Chicago Office of the Antitrust Division at 312-984-7200, the Antitrust Division’s Citizen Complaint Center at 888-647-3258, visit www.justice.gov/atr/report-violations or email the GSA Office of Inspector General at [email protected].
Ocean County Man Charged with Sexual Exploitation of Minor, Online Enticement of Minor and Receipt of Child PornographyRead the Press Release
TRENTON, N.J. – An Ocean County, New Jersey, man was charged today with online enticement to produce, as well as receipt of, images of child sexual abuse, U.S Attorney Craig Carpenito announced.
Samuel Schwinger, 34, of Lakewood, New Jersey, is charged by complaint with one count each of sexual exploitation of a minor, online enticement of a minor to produce child pornography and receipt of child pornography. Schwinger is already in custody on state charges; his initial appearance will be scheduled for a later date.
According to documents filed in this case and statements made in court:
Schwinger met an underage girl through an online social media application while he purported to be an underage girl. Schwinger asked the girl to send him sexually explicit videos through the application and directed her to produce certain images in the videos. During his communications with the victim, Schwinger also sent her sexually explicit videos claiming to be the girl depicted in those videos.
The charge of online enticement carries a maximum statutory penalty of life in prison, a mandatory minimum prison sentence of 10 years and a maximum fine of $250,000. The charge of sexual exploitation of a child carries a mandatory minimum penalty of 15 years in prison, a maximum potential penalty of 30 years in prison and a $250,000 fine. The receipt of child pornography carries a mandatory minimum sentence of five years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine.
U.S. Attorney Carpenito credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael in Newark; the Ocean County Prosecutor’s Office, under the direction of Prosecutor Bradley D. Billhimer; and the Lakewood, New Jersey, Police Department under the direction of Chief Gregory Meyer with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Michelle Gasparian of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Nebraska Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that an Omaha, Nebraska, man convicted of Failure to Register as a Sex Offender was sentenced on September 23, 2019, by U.S. District Judge Karen E. Schreier.
Kenneth Ray Dandridge, age 36, was sentenced to 33 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Dandridge was indicted by a federal grand jury on May 6, 2014. He pled guilty on June 28, 2019.
The conviction stems from Dandridge failing to register as a sex offender as required by federal law between April 20, 2011, and May 6, 2014. Dandridge had previously been convicted of a sex offense in federal court, which requires him to register for the rest of his life.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Dandridge was immediately turned over to the custody of the U.S. Marshals Service.
Naval Officer Indicted on Transportation and Enticement of a Minor, Child Pornography ChargesRead the Press Release
PROVIDENCE – A retired U.S. Navy Lieutenant Commander most recently stationed at the Naval War College in Newport, RI, was indicted by a federal grand jury in Providence, RI, today on charges he allegedly transported and enticed a minor to engage in illicit sexual conduct, and that he distributed, received, and possessed child pornography all while actively serving and following his retirement from active service with the U.S. Navy.
Ronald W. Zenga, 49, of Middletown, RI, who retired from the U.S. Navy in October 2017, was indicted today on two counts of enticement or coercion of a minor to engage in illicit sexual activity and one count each of transportation of a minor with intent to engage in illicit sexual activity, interstate travel with intent to engage in illicit sexual conduct, distribution of child pornography, receipt of child pornography, and possession of child pornography, announced United States Attorney Aaron L. Weisman, Homeland Security Investigations Acting Special Agent in Charge Jason Molina, and Superintendent of the Rhode Island State Police Colonel James M. Manni.
It is alleged that Zenga repeatedly coerced a minor to engage in illicit sexual activity, and transported a minor across state lines from Rhode Island to Texas, Florida and Cuba with the intent to engage in illicit sexual conduct.
According to court documents and information provided to the Court, in September 2018, Homeland Security Investigations (HSI) agents in Providence received information from the Bedfordshire Police Department (BPD) in the United Kingdom that an individual, later identified by HSI as Zenga, was allegedly communicating with a BPD agent through a Russian file sharing website. According to the BPD, the communications allegedly graphically described ongoing sexual encounters with a young minor child. It is alleged that Zenga described several years of sexual encounters with a child, dating back to the child’s prepubescent years.
On October 17, 2018, HSI agents and members of the Rhode Island State Police Internet Crimes Against Children Task Force executed a federal court authorized search of Zenga’s Middletown residence. Forensic previews of Zenga’s electronic devices resulted in the discovery of emails and files of child pornography allegedly shared, received and possessed by Zenga.
Following the search of his residence, Zenga was arrested and detained in federal custody on a criminal complaint charging him with access with the intent to view child pornography, and receipt and possession of child pornography.
The ongoing investigation resulted in the return today of a seven-count indictment.
A criminal complaint and an indictment are merely an accusations. A defendant is presumed innocent unless and until proven guilty.
Each count of enticement or coercion of a minor to engage in illicit sexual activity and transportation of a minor with intent to engage in illicit sexual activity are punishable by statutory penalties of 10 years to life in federal prison followed by 5 years to lifetime supervised release. Interstate travel with the intent to engage in illicit sexual conduct is punishable by statutory penalties of up to 30 years in prison followed by up to lifetime supervised release. Distribution of child pornography and receipt of child pornography are punishable by statutory penalties of 5-20 years imprisonment followed by up to lifetime supervised release. Possession of child pornography is punishable by up to 10 years imprisonment and 3 years supervised release.
An arraignment date has not yet been scheduled.
The matter is being prosecuted by Assistant U.S. Attorney John P. McAdams.
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