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30 October 2019
United States Attorney Richard P. Donoghue Announces Project Safe Neighborhoods Achievements on the Two-Year Anniversary of the Revitalization of the ProgramRead the Press Release
Two years ago, the Department of Justice announced the revitalization and enhancement of Project Safe Neighborhoods (PSN), the centerpiece of the Department’s violent crime reduction strategy. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders, and partners with locally based prevention and reentry programs for lasting reductions in crime.
“The revitalized Project Safe Neighborhoods program is a major success,” stated Attorney General William P. Barr. “It packs a powerful punch by combining advanced data with local leadership, further reducing violence in communities across the country and improving overall public safety. U.S. Attorneys continue to focus their enforcement efforts against the most violent criminals and work in partnership with federal, state, local and tribal police. The Justice Department’s relationships across the board have never been stronger.”
“The arrests, guilty pleas and sentencings of more than 60 gang members and associates prosecuted by the Eastern District of New York for violent crimes and drug trafficking have made our neighborhoods safer,” stated United States Attorney Donoghue. “Working closely with our federal and local law enforcement partners, we will continue to target violent street gangs.”
The PSN initiatives in the EDNY over the last year include:
MS-13 Enforcement
MS-13 on Long Island
In October 2019, an MS-13 gang member was sentenced to 25 years in prison for his participation in the fatal attack with machetes and a baseball bat on a man in Brentwood on October 13, 2016.
In September 2019, an MS-13 gang member was sentenced to 50 years in prison for his participation in the murders of four young men with knives, wooden clubs and an axe in a park in Central Islip on April 11, 2017.
In July 2019, an MS-13 member pleaded guilty to racketeering charges for his participation in the murder of a fellow gang member in Brentwood on June 3, 2016 and the attempted murder of a suspected rival outside the Brentwood public library on January 15, 2016.
In June 2019, an MS-13 gang member was sentenced to 55 years in prison for his participation in the murders of four young men with knives, wooden clubs and an axe in a park in Central Islip on April 11, 2017.
In May 2019, an MS-13 gang associate was convicted at trial of racketeering, murder, assault and firearms charges in connection with the January 30, 2017 murder of a man suspected of being a member of a rival gang and the wounding of a female employee in a deli in Central Islip.
In January 2019, an MS-13 gang member was sentenced to 27 years in prison for the June 30, 2015 murder in Central Islip of a teenager suspected of being associated with a rival gang.
The investigations that led to these prosecutions and convictions were conducted by the Federal Bureau of Investigation’s (FBI) Long Island Gang Task Force.
MS-13 in Queens
In September 2019, three MS-13 gang members were charged in a superseding indictment with racketeering offenses, including the murder of a teenager in Alley Pond Park.
In June and July 2019, three MS-13 gang members from Queens and the Bronx pleaded guilty to assault in aid of racketeering charges for beating and stabbing an inmate who they believed was a member of a rival gang inside a pre-trial detention facility.
In May 2019, an MS-13 gang member was sentenced to more than 25 years in prison for shooting a teenager suspected of being a member of the rival 18th Street gang in Jamaica. The victim was left paralyzed.
The investigations that led to these prosecutions and convictions were conducted by the FBI/New York City Police Department (NYPD) Safe Streets Task Force.
Coney Island Gang Enforcement
In September 2019, three members of the West End Enterprise, a Coney Island-based street gang, pleaded guilty to a racketeering conspiracy involving their participation in a murder outside the Mermaid Houses. The victim was shot to death in retaliation for what the defendants believed was his role in setting up the murder of a high-ranking member of the West End Enterprise. The investigation was conducted with the FBI and NYPD.
Bloods Gang Enforcement
In October 2019, six members and associates of the Red Stone Gorillas set of the Bloods street gang on the east end of Long Island were charged in a superseding indictment with racketeering, murder, robberies, narcotics trafficking and firearms offenses. The investigation was conducted with the FBI’s Long Island Gang Task Force, Suffolk County District Attorney’s Office (SCDA) and the Suffolk County East End Drug Task Force.
In September 2019, a member of the Bloods street gang on Long Island was indicted for racketeering and the September 2, 2016 murders of two individuals. The investigation was conducted by the FBI, Homeland Security Investigations and the Suffolk County Police Department (SCPD).
In August 2019, six members of the Bloods street gang on Long Island were indicted for trafficking heroin, fentanyl, fentanyl analogues, cocaine and crack cocaine in and around Babylon. The investigation was conducted by the FBI, the Drug Enforcement Administration, SCDA and SCPD.
In July 2019, 17 members and associates of the Makk Balla Brims set of the Bloods street gang in Jamaica, Queens, were indicted for racketeering, including violent predicate acts related to their participation in a robbery crew. The investigation was conducted by the FBI and NYPD.
Between February and June 2019, 13 members and associates of the Makk Balla Brims set of the Bloods street gang have pleaded guilty to conspiring to distribute crack cocaine and heroin, as participants in a drug-trafficking network that operated in the Bronx, Brooklyn and Maine. The investigation, which initially focused on criminal activity in a New York City Housing Authority complex in East New York, Brooklyn, led to the recovery of two firearms and was conducted by the FBI and NYPD.
In February 2019, a member of the Bloods street gang on Long Island was sentenced to 15 years in prison for the attempted murder of a rival whom the defendant believed was responsible for the murder of a Bloods gang member. The investigation was conducted by the FBI and Nassau County Police Department (NCPD).
In January 2019, a member of the Brooklyn-based Red Lane Gorillas set of the Bloods gang was indicted for racketeering, including a murder and an attempted murder on Long Island. The investigation was conducted by the FBI, NCPD and NYPD.
Other Street Gang Enforcement
In the past eight months, eight defendants charged in connection with the criminal activities of the Bushwick Crew, a Brooklyn-based enterprise comprised of high-level heroin traffickers and members of the Young Gunners street gang, pleaded guilty to various crimes including murder, using and carrying firearms in relation to drug trafficking and crimes of violence, and heroin trafficking. The investigation was conducted by the FBI and NYPD.
In February 2019, a member of the street gang G’z Up, based in Bedford Stuyvesant, Brooklyn, was convicted following a jury trial of two murders. The investigation was conducted by the FBI.
Community Partnerships and Grants
PSN funding provides direct support to local law enforcement agencies as well as prevention, education and awareness programs for at-risk young people and parents. Presentations regarding gang awareness, internet safety and monitoring your child’s electronic devices all provide students and parents with necessary tools to effectively avoid the dangers of violent crime.
In October 2019, a PSN award of $500,447 was granted to Suffolk County to oversee and implement various violent crime reduction strategies in Suffolk County, Nassau County and throughout the district. Resources will be dedicated to enforcement and prevention efforts including funding for prosecutors and police, providing technical training, promoting community outreach efforts and supporting existing gun and gang violence reduction programs.
To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
Union Leader Charged with EmbezzlementRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Brian Arnold, 48, of Elmira, NY, was arrested and charged by criminal complaint with embezzlement and false entries in required union records. The charges carry a maximum penalty of five years in prison and a $10,000 fine.
Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that according to the complaint, the defendant, between September 2015 and August 2018, was the financial secretary of Steelworkers Local Union 104M, which represents approximately 75 workers at Anchor Glass Container Corporation. As financial secretary, Arnold was responsible for collecting dues checks, recording all receipts, maintaining receipts and disbursement records, writing and signing checks, and preparing an accurate account of all money received and paid out to report monthly to the union membership.
Local 104M is funded through union dues collected through employer deduction. Anchor Glass issues a check weekly to the union for the collected dues deducted. All checks are deposited into the union’s Chemung Canal Trust Company checking account, which is used to pay for all the expenses of the local through check or debit card. All of Local 104M's bank statements were sent to the union’s P.O. Box, and the defendant had sole access to the P.O. Box and the statements.
Between April 2016 and August 2018, Arnold embezzled union funds totaling $33,224.15 by: using Local I04M's debit card to make unauthorized purchases totaling $14,639.13 for his own personal benefit at various hotels, restaurants, and sporting goods stores as well as at Verizon Wireless; making 54 unauthorized ATM withdrawals totaling $16,940 from the union's checking account; and writing two unauthorized checks to himself from the union's checking account totaling approximately $1,445. The defendant also falsified records that Local 104M was required maintain.
The defendant made an initial appearance before U.S. Magistrate Judge Marian W. Payson and was released.
The complaint is the result of an investigation by the US Department of Labor, Office of Labor Management Standards (OLMS) Buffalo Office, under the direction of the Boston-Buffalo District Office, District Director Jonathan Russo.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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U.S. Reaches Settlement to Recover More Than $700 Million in Assets Allegedly Traceable to Corruption Involving 1MDBRead the Press Release
LOS ANGELES – The Department of Justice has reached a settlement in a series of civil forfeiture cases against assets acquired by Low Taek Jho – a financier best known as Jho Low – and his family using funds allegedly misappropriated from 1Malaysia Development Berhad (1MDB) and laundered through financial institutions in several jurisdictions, including the United States, Switzerland, Singapore and Luxembourg.
The assets involved in settlements filed in 13 asset forfeiture cases are located in the United States, the United Kingdom and Switzerland, and are estimated to be worth more than $700 million. The assets subject to the settlement agreement include high-end real estate in Beverly Hills, New York and London; a luxury boutique hotel in Beverly Hills; and tens of millions of dollars in business investments that Low allegedly made with funds traceable to misappropriated 1MDB monies.
With the settlements being filed today in United States District Court in Los Angeles, coupled with the prior disposition of other 1MDB-related forfeiture cases, the United States will have recovered or assisted in the recovery of more than $1 billion in assets associated with the international money laundering conspiracy related to Malaysia’s investment development fund. This represents the largest civil forfeiture ever concluded by the Justice Department.
“A staggering amount of money embezzled from 1MDB at the expense of the people of Malaysia was laundered through the purchase of big-ticket assets in the U.S. and other nations. Thanks to this settlement, one of the men allegedly at the center of this massive scheme will lose all access to hundreds of millions of dollars,” said United States Attorney Nick Hanna. “The message in this case is simple: the United States is not a safe haven for pilfered funds. Our strict anti-money laundering controls are effective, and we will seize assets used by criminals to conceal ill-gotten gains.”
According to the civil forfeiture complaints, from 2009 through 2015, more than $4.5 billion in funds belonging to 1MDB were misappropriated by high-level officials of 1MDB and their associates, including Low. 1MDB was created by the government of Malaysia to promote economic development in Malaysia through global partnerships and foreign direct investment, and its funds were intended to be used for improving the well-being of the Malaysian people.
Under the terms of the settlement, Low, his family members, and FFP, a Cayman Islands entity serving as the trustees overseeing the assets at issue in these cases, agreed to forfeit all assets subject to pending forfeiture complaints in which they have a potential interest. The trustees are also required to cooperate and assist the Justice Department in the orderly transfer, management and disposition of the relevant assets. From the assets formerly managed by FFP, the United States will release $15 million to Low’s counsel to pay for legal fees and costs. Under the agreement, none of those fees may be returned to Low or his family members.
“As alleged in the complaints, Jho Low and others, including officials in Malaysia and the United Arab Emirates, engaged in a brazen multi-year conspiracy to launder money embezzled or otherwise misappropriated from 1MDB, and he used those funds, among other things, to engage in extravagant spending sprees, acquiring one-of-kind artwork and luxury real estate, gambling freely at casinos, and propping up his lavish lifestyle,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “This settlement agreement forces Low and his family to relinquish hundreds of millions of dollars in ill-gotten gains that were intended to be used for the benefit of the Malaysian people, and it sends a signal that the United States will not be a safe haven for the proceeds of corruption.”
“Today's settlement with Jho Low demonstrates the continued commitment of the FBI to root out the fraud and selfishness of the corrupt individuals who conspired to pay bribes and launder funds which belong to the Malaysian people,” said FBI Assistant Director Terry Wade of the Criminal Investigative Division. “The FBI’s dedicated International Corruption Squads will continue to combat foreign corruption which reaches our shores. We will not allow criminals, foreign or domestic, to use the United States in furtherance of their criminal activities.”
“The action announced today will allow the United States government to deny Mr. Low the use of the assets purchased with this extraordinarily large sum of money allegedly embezzled from 1MDB and the people of Malaysia,” said Chief Don Fort of IRS Criminal Investigations. “Mr. Low allegedly attempted to launder these funds through multiple international jurisdictions and a web of shell corporations, but his greed finally caught up with him. This case is a model for international cooperation in significant cross-border money laundering investigations”
The assets being forfeited subject to this settlement are in addition to the nearly $140 million in assets the U.S. previously forfeited in connection with Low’s investment in a business entity related to the Park Lane Hotel in New York, as well as a super-yacht, valued at over $120 million, seized by law enforcement authorities in Indonesia at the request of the Justice Department and recovered by Malaysian authorities directly from Indonesia. Several civil forfeiture complaints arising out of the 1MDB money laundering conspiracy remain pending against assets associated with other alleged co-conspirators.
Low separately faces criminal charges in the Eastern District of New York and the District of Columbia. This agreement that resolves the asset forfeiture actions does not release any entity or individual from filed or potential criminal charges.
The FBI’s International Corruption Squads in New York City and Los Angeles, as well as IRS Criminal Investigation, are investigating the case.
The settlements being filed today were negotiated by Assistant United States Attorneys John Kucera, Michael R. Sew Hoy and Steven R. Welk of the Asset Forfeiture Section, and Justice Department trial attorneys Woo S. Lee, Kyle R. Freeny, Joshua L. Sohn, Barbara Levy and Jonathan Baum of Money Laundering and Asset Recovery Section. The Office of International Affairs is providing assistance.
The Justice Department appreciates the significant assistance provided by the Attorney General’s Chambers of Malaysia, the Royal Malaysian Police, the Malaysian Anti-Corruption Commission, the Attorney General’s Chambers of Singapore, the Singapore Police Force-Commercial Affairs Division, the Office of the Attorney General and the Federal Office of Justice of Switzerland, the judicial investigating authority of the Grand Duchy of Luxembourg and the Criminal Investigation Department of the Grand-Ducal Police of Luxembourg.
A civil forfeiture complaint is merely an allegation that money or property was involved in or represents the proceeds of a crime. These allegations are not proven until a court awards judgment in favor of the United States.
U.S. Attorney Sherri Lydon to join Solicitors from the 7th, 8th, 10th, and 13th Judicial Circuits and Law Enforcement for a Press Conference Tomorrow in Greenville at 11:00 a.m.Read the Press Release
Columbia, South Carolina --- United States Attorney Sherri A. Lydon announced today that a press conference will be held tomorrow, Thursday, October 31, 2019, at 11:00 a.m., in the lobby of the Greenville County Courthouse, 305 East North Street, Greenville, South Carolina, 29601.
Represented at the press conference will be the U.S. Attorney’s Office for the District of South Carolina, 7th Circuit Solicitor Barry Barnette, 8th Circuit Solicitor David Stumbo, 10th Circuit Solicitor David Wagner, and 13th Circuit Solicitor Walt Wilkins, along with members of law enforcement.
WHEN: Thursday, October 31, 2019, at 11:00 a.m.
WHERE: Greenville County Courthouse
305 East North Street
Greenville, South Carolina 29601
NOTE: Press inquiries regarding logistics should be directed to Lance Crick, 864-282-2105. All media must present a government-issued photo ID (such as a driver’s license). Members of the media wishing to attend the remarks should gather in the first floor lobby of the Courthouse at 10:30 a.m., 30 minutes in advance.
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Three Admit Roles in Drug Trafficking OrganizationRead the Press Release
CAMDEN, N.J. – Three members of a drug-trafficking organization have pleaded guilty to their roles in distributing significant amounts of drugs in Camden, U.S. Attorney Craig Carpenito announced.
Ramon Velez, 43, of Camden, pleaded guilty today to an information charging one count of conspiracy to distribute heroin and fentanyl; Naeem Sadler, 19, also of Camden, pleaded guilty today to an information charging one count of conspiracy to distribute heroin within 1,000 feet of a school; Elisa Rivera, 27, of Camden, New Jersey, pleaded guilty on Oct. 29, 2019, to an information charging one count of conspiracy to distribute heroin within 1,000 feet of a school, all before U.S. District Judge Renee Marie Bumb in Camden federal court.
Five other members of the drug-trafficking conspiracy based on the 500 block of Pine Street in Camden – Ronnie Lopez, Nelson Salcedo, Paul Salcedo, Waldemar Garcia, and William Carrillo – previously have pleaded guilty in this case. The charges against 11 other defendants remain pending, and they are presumed innocent unless and until proven guilty.
According to documents filed in this case and statements made in court:
An investigation led by the FBI used surveillance, confidential informants, consensual recordings, over 40 controlled drug purchases, record checks, a GPS vehicle tracker, and several court-authorized wiretaps to uncover the operations of the drug-trafficking organization.
The counts to which Rivera and Sadler pleaded guilty carries a maximum potential penalty of 40 years in prison, and a $2 million fine. The count to which Velez pleaded guilty carries a maximum potential penalty of 40 years in prison, and a $5 million fine. Sentencing for all three defendants is scheduled for Feb. 7, 2020.
U.S. Attorney Craig Carpenito credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael T. Harpster; the Camden County Police Department, under the direction of Chief Joseph Wysocki; the Camden County Prosecutor’s Office, under the direction of Acting Prosecutor Jill S. Mayer; the Camden County Sherriff’s Department, under the direction of Sheriff Gilbert L. Wilson; the Cherry Hill Police Department, under the direction of Chief William P. Monaghan; and the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to the guilty pleas. He also thanked the Drug Enforcement Administration, the U.S. Marshals Service, and the Department of Homeland Security for their assistance.
The government is represented by Assistant U.S. Attorneys Sara A. Aliabadi and Patrick C. Askin of the U.S. Attorney’s Office Criminal Division in Camden.
Third Suspect in “Ghost Mask” Bank Robberies ArrestedRead the Press Release
Orlando, Florida – Daniel Joseph Zirk (23, Spring Hill) has been arrested and charged by a federal criminal complaint with attempted bank robbery and using a firearm during a crime of violence. Zirk made his initial appearance in federal court today and was detained.
Zirk’s alleged co-conspirators, John Armstrong, Jr. (30, North Fort Myers) and Tanya Legg (43, North Fort Myers) were arrested on October 7, 2019, on related charges. On October 16, 2019, a grand jury returned an indictment charging Armstrong with Hobbs Act robbery, attempted bank robbery, bank robbery, three counts of brandishing a firearm during a crime of violence, and possession of a firearm by a convicted felon. The indictment charges Legg with aiding and abetting a bank robbery, aiding and abetting the brandishing of a firearm during a crime of violence, and possession of a firearm by a convicted felon. If convicted, Zirk, Legg, and Armstrong each face up to life in federal prison.
According to allegation in the
complaint against Zirk and indictment against Armstrong and Legg, on June 14, 2019, Armstrong used a firearm to rob a 7-11 store in North Fort Myers. During the robbery, Armstrong struck one of the store employees in the face with his firearm, causing a laceration to the bottom corner of her left eye.On September 25, 2019, Armstrong and Zirk attempted to commit an armed robbery of a PNC Bank in Davenport. Zirk had carjacked a vehicle earlier that morning, holding the victim at gunpoint. Armstrong and Zirk later used the stolen vehicle as a getaway vehicle following the attempted PNC Bank robbery.
On September 26, 2019, Armstrong, Zirk, and Legg robbed a BB&T Bank in Altamonte Springs. Armstrong and Zirk used firearms to force bank employees to open the bank’s safe and then stole approximately $22,000 in cash. Legg assisted in purchasing items used to complete the BB&T robbery and then served as the getaway driver. Zirk and Armstrong wore ghost masks at each of the banks.
A criminal complaint is merely an allegation that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by the Federal Bureau of Investigation, with assistance from the Altamonte Springs Police Department, the Fort Myers Police Department, the Hernando County Sheriff’s Office, the Lee County Sheriff’s Office, the Orange County Sheriff’s Office, the Osceola County Sheriff’s Office, the Pasco Sheriff’s Office, the Punta Gorda Police Department, the Seminole County Sheriff’s Office, and the Tampa Police Department. It is being prosecuted by Assistant United States Attorney Chauncey A. Bratt.
Texas Man Pleads Guilty to Fraud Scheme Involving Fake Letters of Credit and Bank DocumentsRead the Press Release
A Texas man pleaded guilty today to defrauding victims around the United States by selling them fake “standby letters of credit” and other forged and fraudulent bank documents.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Assistant Director in Charge Timothy R. Slater of the FBI’s Washington Field Office made the announcement.
James Pierce, 43, of Spring, Texas, pleaded guilty to a three-count indictment charging him with wire fraud and conspiracy to commit wire fraud before Chief Judge Beryl A. Howell of the District of Columbia. Sentencing is scheduled for Jan. 10, 2020, before Judge Howell.
As part of his guilty plea, Pierce admitted that he and his co-conspirators falsely represented to their victims that they had a relationship with a bank located in the Dominican Republic (“Bank 1”), that they could use to secure financing for the victims’ large commercial transactions. In exchange for six-figure fees paid by the victims, the defendant and his co-conspirators falsely promised that the victims could gain access to credit at Bank 1. They further represented that Bank 1 would issue Society for Worldwide Interbank Financial Telecommunication (SWIFT) inter-bank messages to banks designated by the victims, showing that the victims had access to such credit. In reality, the defendant and his co-conspirators had no such relationship with Bank 1, and provided the victims with fake Bank 1 documentation falsely showing that it had transmitted the promised bank instruments. When the victims did not receive their SWIFT messages, the defendant and his co-conspirators gave the victims excuses and false statements, and in several instances, fraudulently induced the victims to pay additional money to have their bank documentation “re-issued” – which also never happened. Pierce also used a website and email address at jpierceinvestments.com to carry out the fraud.
The FBI investigated the case. Trial Attorney Blake Goebel and Assistant Chief Justin Weitz of the Criminal Division’s Fraud Section are prosecuting the case.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
Staten Island Man Sentenced to 12 Years for Illegally Distributing OxycodoneRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that Vito Gallicchio, 50, a Staten Island resident, was sentenced yesterday to 144 months in prison for conspiring to distribute oxycodone. GALLICCHIO was also ordered to forfeit $2,190,840 in drug proceeds he obtained during the period of the conspiracy. GALLICCHIO pled guilty in Manhattan federal court on October 18, 2018, before United States District Judge Andrew L. Carter, who imposed GALLICCHIO’s sentence.
U.S. Attorney Geoffrey S. Berman said: “Vito Gallicchio sold hundreds of thousands of oxycodone pills on the streets of New York, and masterminded a ring of purported ‘patients’ who faked injuries to get pills. As Gallicchio’s sentence makes clear, those who fuel the opioid epidemic face prosecution and stiff sentences.”
According to allegations in the Indictment and other documents filed in federal court, as well as statements made in public court proceedings:
Oxycodone is a highly addictive, narcotic opioid that is used to treat severe and chronic pain conditions. Oxycodone prescriptions are in high demand and have significant cash value to drug dealers. In fact, oxycodone tablets can be resold on the street for thousands of dollars. For example, 30-milligram oxycodone tablets have a current street value of approximately $30 per tablet in New York City, with street prices even higher in other parts of the country.
From at least approximately January 2012 until his arrest in 2017, GALLICCHIO obtained medically unnecessary oxycodone prescriptions from Dr. David Taylor, who operated a medical clinic in Staten Island, New York, and was subsequently convicted of conspiring to distribute oxycodone. GALLICCHIO traded cash and other gifts, such as liquor, in exchange for Dr. Taylor writing prescriptions for GALLICCHIO and his crew. During approximately the same period, GALLICCHIO filled the medically unnecessary prescriptions at a Staten Island pharmacy, and also purchased wholesale quantities of oxycodone from the pharmacist without prescriptions. GALLICCHIO subsequently sold the oxycodone pills for millions of dollars in profit, which he used to make significant renovations on his home and purchase several expensive cars, including, a Corvette, a Lincoln Navigator, a Lincoln LS, a Jeep Grand Cherokee, and a Bentley.
At the sentencing proceeding, Judge Carter found Gallicchio was responsible for distributing more than 180,000 30-milligram oxycodone pills and that he obstructed justice by seeking to intimidate at least two government witnesses.
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GALLICCHIO’s co-defendant, David Taylor, is scheduled to be sentenced on January 16, 2020.
Mr. Berman praised the investigative work of the DEA Tactical Diversion Squad in New York, which comprises agents and officers from the DEA, the New York City Police Department, the New York State Police, Town of Orangetown Police Department, Rockland County Drug Task Force, Westchester County Police Department, and New York City Department of Investigation. He also acknowledged the assistance of the Department of Health & Human Services.
The case is being prosecuted by the Office’s Narcotics Unit. Assistant U.S. Attorneys Kiersten A. Fletcher, Justin Rodriguez, and Nicolas Roos are in charge of the prosecution.
Statement by the U.S. Attorney’s Office on Domestic Violence Awareness MonthRead the Press Release
By Presidential Proclamation, October is Domestic Violence Awareness Month.
Ending domestic violence – a heinous crime that terrorizes families, shatters homes, and destroys lives – is a top priority for the U.S. Department of Justice. Over the past 30 days, the U.S. Attorney’s Office for the Northern District has reaffirmed its steadfast commitment to empowering survivors and fighting this horrible form of abuse.
We understand that domestic violence is a pervasive problem in Texas – and far too often, abuse escalates from bruises to bloodshed and tragically, loss of life. At least 175 women and 36 men were murdered by an intimate partner in Texas last year, according to the Texas Council on Family Violence. Roughly 60% of the abusers who killed their partners wielded a gun.
In an effort to prevent these tragic homicides, we’ve reached out to state and local law enforcement alerting them that federal firearm laws can be used to prosecute abusers – often without the testimony of victims, who, for obvious reasons, may be reluctant to testify in a court proceeding against their abuser.
The pertinent federal domestic violence crimes fall into two broad categories:
- Crimes under the Gun Control Act, which prevents prohibited persons – including convicted felons, individuals previously convicted of misdemeanor domestic violence offenses, and individuals subject to certain protective orders—from possessing firearms, or from lying to firearms dealers about their status
- Crimes under the Violence Against Women Act, which prohibits interstate stalking, cyber stalking, and using interstate commerce to commit domestic violence or violate protective orders
The U.S. Attorney’s Office has created a comprehensive brochure summarizing the federal statutes that may be charged in the domestic violence context, available at https://www.justice.gov/USAO-NDTX/DV.The Northern District of Texas’ Domestic Violence Initiative Team – Assistant U.S. Attorneys Keith Robinson (Chief of NDTX’s Violent Crimes Section), Damien Diggs, and John Boyle, along with agents from ATF’s Dallas Field Division – have held information sessions for local District Attorney’s Offices; federal, state, local, and county law enforcement; and state judges to maximize referral of these cases to federal prosecutors.
As with all issues of public safety, while we will make as many arrests as we can consistent with the interests of justice, we recognize that enforcement alone will not solve the problem. So, we’re also working closely with our partners in the prevention, education and survivor support communities, like Genesis Women’s Shelter, The Family Place, and others. Earlier this month, we were proud to host the Justice Department’s Office of Violence Against Women, which awarded $16.5 million to support local law enforcement, victim service providers, and shelters fighting domestic and sexual violence in north Texas.
Moreover, U.S. Attorney for the Northern District of Texas Erin Nealy Cox was recently appointed by Attorney General William Barr to lead the Domestic Violence Working Group of the U.S. Attorney General’s Advisory Committee. This group serves to advise the Attorney General and federal law enforcement partners nationwide as to how the USAO community can effectively marshal federal resources to combat domestic violence. She is honored to stand with dedicated U.S. Attorney’s across the country in the fight against domestic violence, and recently spoke at a Domestic Violence Conference hosted by U.S. Attorney for the Northern District of Ohio Justin Herdman.
“As Texans and Americans, we must remain vigilant in our quest to end domestic abuse and promote peace and safety in the home,” says the U.S. Attorney. “While we must recognize and face head-on the existence and tragedy of domestic violence, we should also take heart in knowing that combatting and preventing this crime are top priorities of law enforcement at all levels, and that stakeholders are working closely across disciplines to bring a stop to it.”
South Florida Resident Arrested for Attempting to Illegally Export Controlled Items to LibyaRead the Press Release
Peter Sotis, 55, of Delray Beach, Florida, was arrested yesterday based on an indictment charging him with conspiracy to violate and attempted violation of the International Emergency Economic Powers Act (IEEPA) and the Export Administration Regulations (EAR), as well as smuggling of goods.
John C. Demers, Assistant Attorney General for National Security; Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida; Robert Luzzi, Special Agent in Charge of the Department of Commerce’s Office of Export Enforcement (DOC) Miami Field Office; and Anthony Salisbury, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (ICE-HSI) Miami Field Office, made the announcement.
The indictment alleges Sotis was the owner and principal of Add Helium, a Fort Lauderdale diving company. Sotis was charged with smuggling, conspiracy to violate and attempted violation of the IEEPA and the EAR by transferring dual-use goods, that is, articles that have both civilian and military application, for export to Libya without the required Department of Commerce license.
In particular, court documents indicated that Sotis and a co-defendant at Add Helium transferred four rebreathers, which were controlled under the EAR for national security reasons, to a shipping company for export to Libya after being informed by a Commerce agent that the items could not be exported while a license determination was pending. A rebreather is an apparatus that absorbs the carbon dioxide of a scuba diver's exhaled breath to permit the rebreathing (recycling) of each breath. This technology produces no bubbles, thereby concealing the diver’s activities from those on the surface, and allowing a diver to stay underwater longer compared with normal diving equipment.
Sotis had his initial appearance on the charges today before U.S. Magistrate Judge John J. O'Sullivan. He is scheduled to be arraigned on the charges on Nov. 13, 2019, at 10 a.m. in Miami.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Assistant Attorney General Demers and U.S. Attorney Fajardo Orshan commended the investigative efforts of the DOC and HSI. They also thanked the FBI’s Miami Field Office and U.S. Customs and Border Protection for their assistance.
This case is being prosecuted by Assistant U.S. Attorney Michael Thakur of the Southern District of Florida and Trial Attorney Thea D. R. Kendler of the National Security Division’s Counterintelligence and Export Control Section.
South Florida Resident Arrested for Attempting to Illegally Export Controlled Items to LibyaRead the Press Release
MIAMI - Peter Sotis, 55, of Delray Beach, Florida, was arrested yesterday based on an indictment charging him with conspiracy to violate and attempted violation of the International Emergency Economic Powers Act (IEEPA) and the Export Administration Regulations (EAR), as well as smuggling of goods.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida; John C. Demers, Assistant Attorney General for National Security; Robert Luzzi, Special Agent in Charge of the Department of Commerce’s Office of Export Enforcement (DOC) Miami Field Office; and Anthony Salisbury, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (ICE-HSI) Miami Field Office, made the announcement.
The indictment alleges Sotis was the owner and principal of Add Helium, a Fort Lauderdale diving company. Sotis was charged with smuggling, conspiracy to violate and attempted violation of the IEEPA and the EAR by transferring dual-use goods, that is, articles that have both civilian and military application, for export to Libya without the required Department of Commerce license.
In particular, court documents indicated that Sotis and a co-defendant at Add Helium transferred four rebreathers, which were controlled under the EAR for national security reasons, to a shipping company for export to Libya after being informed by a Commerce agent that the items could not be exported while a license determination was pending. A rebreather is an apparatus that absorbs the carbon dioxide of a scuba diver's exhaled breath to permit the rebreathing (recycling) of each breath. This technology produces no bubbles, thereby concealing the diver’s activities from those on the surface, and allowing a diver to stay underwater longer compared with normal diving equipment.
Sotis had his initial appearance on the charges today before U.S. Magistrate Judge John J. O'Sullivan (Case No. 19cr20693). He is scheduled to be arraigned on the charges on Nov. 13, 2019 at 10 a.m. in Miami.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney Fajardo Orshan and Assistant Attorney General Demers commended the investigative efforts of the DOC and HSI. They thanked the FBI’s Miami Field Office and U.S. Customs and Border Protection for their assistance.
This case is being prosecuted by Assistant U.S. Attorney Michael Thakur of the Southern District of Florida and Trial Attorney Thea D. R. Kendler of the National Security Division’s Counterintelligence and Export Control Section.
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 at http://pacer.flsd.uscourts.gov.
Social Security Administration Employee Sentenced to 34 Months in Prison for Falsifying Records and Stealing Social Security BenefitsRead the Press Release
CAMDEN, N.J. – A Social Security Administration employee was sentenced today to 34 months in prison for unlawfully accessing the Social Security accounts of individuals and falsifying their records in order to steal funds for his own use, U.S. Attorney Craig Carpenito announced.
Nicholas Pao, 38, of Egg Harbor Township, New Jersey, previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of theft of government funds and two counts of aggravated identity theft. Judge Rodriguez imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Pao was a 10-year employee of the Social Security Administration who worked as a claims technical expert in the Social Security Administration’s office in Egg Harbor Township. Pao was responsible for determining eligibility and payment amounts, processing difficult cases, assisting in case reviews, and making special payment approvals. From December 2014 to July 2018, Pao used his credentials to access the confidential records of several individuals without their knowledge or authority. He altered their records and made fraudulent changes that caused the Social Security Administration to issue benefits to these individuals. Pao would then intercept these benefits, which were issued by way of a Direct Express account and credit card. Pao depleted the funds issued on the Direct Express accounts without the knowledge or consent of the individuals. Pao stole approximately $100,000 in Social Security funds.
In addition to the prison term, Judge Rodriguez sentenced Pao to three years of supervised release and ordered him to make full restitution to the SSA.
U.S. Attorney Carpenito credited special agents of the Office of the Inspector General, Social Security Administration, under the direction of John F. Grasso with the investigation.
The government is represented by Special Assistant U.S. Attorney Meriah Russell of the U.S. Attorney’s Office Criminal Division in Camden.
Sioux Falls Man Sentenced for Conspiracy to Distribute a Controlled SubstanceRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on October 21, 2019, by U.S. District Judge Karen E. Schreier.
Michael Bernard Goldberg, age 36, was sentenced to 132 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.
Goldberg was indicted by a federal grand jury on September 5, 2018. He pled guilty on August 8, 2019.
The conviction stemmed from incidents beginning on an unknown date and continuing until approximately September 2018, when Goldberg, along with at least one other person, reached an agreement or came to an understanding to distribute 500 grams or more of a mixture or substance containing methamphetamine in the District of South Dakota.
Goldberg purchased over 500 grams of methamphetamine from co-conspirators to distribute to his own drug customers in Sioux Falls.
This case was investigated by the Drug Enforcement Administration and the Sioux Falls Area Drug Task Force. Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
Goldberg was immediately turned over to the custody of the U.S. Marshals Service.
Sioux Falls Man Convicted on Child Pornography ChargesRead the Press Release
United States Attorney Ron Parsons announced that Kevin Allen Lamm, a/k/a Mike Malone, age 35, of Sioux Falls, South Dakota, was found guilty of Possessing, Distributing, and Producing Child Pornography as a result of a federal jury trial in Sioux Falls, South Dakota.
The charges carry a maximum penalty of 50 years in federal prison and/or a $250,000.00 fine, lifetime of supervised release, and a $300 special assessment to the Federal Crime Victims Fund.
Lamm was indicted by a federal grand jury on May 9, 2017.
The charges stemmed from incidents between January 12, 2017, and April 27, 2017, when Lamm knowingly received and possessed child pornography. The investigation also revealed that Lamm created a fake Facebook account and used it to persuade a 14 year-old girl in another state to send sexually explicit photographs to him using Facebook Messenger. When law enforcement searched his Sioux Falls apartment, they found child pornography on a digital memory card.
This case was investigated by the Department of Homeland Security. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
A presentence investigation was ordered and Lamm is scheduled to be sentenced on January 13, 2020. The defendant was remanded to the custody of the U.S. Marshals Service.
Shreveport Man Sentenced to 20 Years in Prison for Fraudulent Check Cashing Scheme Resulting in Theft of Nearly $400,000Read the Press Release
SHREVEPORT, La. – U.S. Attorney David C. Joseph announced that Carlos A. Spann, 42, of Shreveport, Louisiana, was sentenced October 29, 2019, to 20 years in federal prison for his role in a fraudulent check-cashing scheme resulting in the theft of nearly $400,000. Chief U.S. District Judge S. Maurice Hicks Jr. also ordered Spann to pay $399,723.04 in restitution to Tower Loan and Walmart Global Investigations. In addition to his term of imprisonment, Judge Hicks sentenced Spann to five years of supervised release following his release.
At the conclusion of a four-day trial, Carlos A. Spann was found guilty by a federal jury on February 7, 2019, of one count of conspiracy to commit bank and wire fraud and two counts of wire fraud. Evidence admitted at trial showed that Carlos A. Spann, Phelix K. Williams, 29, Anthony E. Johnson, 24, both of Shreveport, and others, conspired to cash counterfeit checks using fraudulent identities at banks and retail establishments throughout Louisiana. Spann provided his co-conspirators with altered overlays for identification cards along with counterfeit checks drawn on Tower Loan’s bank account, and counterfeit checks drawn on a United States Postal Service bank account. Each of them were captured by surveillance video cameras using altered identification cards to cash the counterfeit checks. During the conspiracy, they negotiated more than 100 counterfeit checks.
Spann has a two-decade long history of committing white collar fraud crimes, including nine prior convictions of offenses such as counterfeiting and credit card fraud. At sentencing, additional evidence was presented of Spann’s attempts to obstruct justice by procuring affidavits containing false statements, tampering with lawfully issued subpoenas, and discussing trial testimony with prospective witnesses.
“This offender made a career out of defrauding the people and businesses of Louisiana out of their hard-earned money,” said U.S. Attorney David C. Joseph. “The 20-year sentence handed down in this case should send a clear message to others that might consider engaging in this type of criminal activity. I want to thank the prosecutors from my office, the U.S. Secret Service, the Shreveport Police Department, and the Caddo Parish Sheriff’s Office for their hard work in uncovering this fraud and bringing this matter to justice.”
“This case exemplifies how important partnerships between Federal and local law enforcement successfully bring criminals like Spann, Williams and Johnson to justice,” said Tara McLeese, Resident Agent in Charge of the United States Secret Service’s Baton Rouge Office. “Special thanks to the talented prosecutors from the United States Attorney’s Office in the Western District of Louisiana whose tireless efforts have ensured the public is now protected from financial fraud perpetrated by these individuals.”
Williams pleaded guilty on February 4, 2019, the morning his trial was scheduled to begin, to one count of conspiracy to commit bank and wire fraud, 13 counts of bank fraud and two counts of wire fraud. Judge Hicks sentenced Williams on June 10, 2019, to 10 years in prison, followed by five years of supervised, and also ordered him to pay $399,723.04 in restitution. Johnson pleaded guilty on January 17, 2019, to one count of conspiracy and two counts of bank fraud. Johnson’s sentencing date of May 1, 2019 was upset and has yet to be rescheduled.
The U.S. Secret Service, Shreveport Police Department, and Caddo Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Tiffany E. Fields and First Assistant U.S. Attorney Alexander C. Van Hook prosecuted the case.
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Shelbyville Man Sentenced to 108 Months for Possession of a Firearm in Furtherance of Drug TraffickingRead the Press Release
FRANKFORT, Ky- A Shelbyville, Kentucky, man Todd G. Harris, 33, who previously admitted to drug possession with the intent to distribute and possession of a firearm in furtherance of drug trafficking, was sentenced Wednesday by U.S. District Court Judge Gregory VanTatenhove to 108 months in prison.
According to his plea agreement, Harris was found unconscious in a wrecked vehicle in July 2018 by officers with the Shelbyville Police Department. Upon search, officers also located a Glock 9 mm and a bag containing marijuana and Xanax tablets. Harris admitted to possession with intent to distribute alprazolam and possession of a firearm in furtherance of drug trafficking. Harris was previously convicted of trafficking marijuana in 2014.
Harris pleaded guilty in June 2019.
Under federal law, Harris must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for five years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, Tommy Estevan, Acting Special Agent in Charge for ATF, and Chief Bruce Gentry, Shelbyville Police Department, jointly announced the sentence.
The investigation was conducted by ATF and Shelbyville Police Department. The United States was represented by Assistant U.S. Attorney Cynthia T. Rieker.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The PSN program was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Shelby County Man Sentenced for Failure to Register in the State of Alabama as a Sex OffenderRead the Press Release
BIRMINGHAM, Ala. – A federal judge yesterday sentenced a Shelby County man on a charge of failure to register as a sex offender, announced Northern District of Alabama United States Attorney Jay E. Town and United States Marshal Martin Keely.
United States District Judge Abdul K. Kallon sentenced RICKY DION ODOM, 47, of Shelby County, to 24 months incarceration for failure to register as a sex offender to run consecutive to Odom’s probation revocation in Louisiana. Odom pled guilty in July 2019.
“Failure to register as a sex offender is not only a matter of public safety, but it is our primary mechanism by which every member of the community can learn of sex offenders living among us.,” Town said. “Sex offenders who flee to another state, and violate the law by not registering will be caught, will be prosecuted, and will face incarceration. My office will continue to put the safety of children at the forefront, now more than ever.”
According to court documents, Odom is required to register under the Sex Offender Registration and Notification Act (SORNA). On or about November 1, 2018 and continuing until on or about February 4, 2019, Odom traveled from the State of Louisiana to the State of Alabama and knowingly failed to register as required by SORNA.
In addition to the term of imprisonment imposed, Odom was ordered to serve five years of supervised release.
United States Marshal Service for the Northern District of Alabama, Middle District of Alabama, Eastern District of Louisiana, Northern District of Florida, and Gulf Coast Regional Fugitive Task Force investigated the case along with the assistance of St. Tammany Parish (LA) Sheriff’s Office, Okaloosa County (FL) Sheriff’s Office, Jackson County (AL) Sheriff’s Office, Shelby County (AL) Sheriff’s Office, and the Alabama Department of Conservation and Natural Resources, which Assistant United States Attorney R. Leann White prosecuted.
Sabattus Man Sentenced for Federal Firearm OffensesRead the Press Release
Portland, Maine: A Sabattus man was sentenced today in federal court in Portland for possessing a stolen firearm and possessing a firearm after being convicted of a felony, U.S. Attorney Halsey B. Frank announced.
U.S. District Judge D. Brock Hornby sentenced Scott Estes, 39, to three years in prison and three years of supervised release. Estes pleaded guilty on June 17, 2019.
According to court records, on November 13, 2017, Lewiston dispatchers received a 911 call from Estes’ then-girlfriend, who was in a truck in which he had been a passenger. He was not in the truck at the time of the call. His girlfriend reported that he had a firearm and that he had pointed it at her. When he returned to the truck, his girlfriend remained on the call, pretending to be speaking to a credit card company. She conveyed their location and where they were going.
When the police arrived, Estes fled into a nearby apartment and a seven-hour standoff ensued. The Maine State Police Tactical Team negotiated a peaceful end to the standoff. Investigators recovered the firearm, a Smith & Wesson .380 caliber semi-automatic pistol, from the apartment into which he had fled. Further investigation revealed that it was stolen.
Estes was also prohibited from possessing the firearm because of multiple prior felony convictions, including ones for trafficking in prison contraband, robbery and aggravated operating after revocation.
The Maine State Police; the Lewiston Police Department; and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
Rochester Man Pleads Guilty to Fentanyl ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Felix Figueroa, 39, of Rochester, NY, pleaded guilty to possession with the intent to distribute 40 grams or more of fentanyl, before Chief U.S. District Judge Frank P. Geraci, Jr. The charge carries a minimum penalty of five years in prison, a maximum penalty of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorney Cassie Kocher, who is handling the case, stated that during the course of a lengthy investigation, the defendant sold cocaine and heroin on several occasions to an individual working with investigators. On January 29, 2018, investigators executed a search warrant at Figueroa’s home, and recovered a quantity of fentanyl and cocaine, 199 bags of heroin, 154 decks of heroin, 576 bags of cocaine, as well as items commonly used in the packaging and distribution of illegal drugs, such as a scale, baggies, cutting agent, and approximately $2,108 in cash.
The plea is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives Violent Crime Task Force, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Rochester Police Department, under the direction of Chief La’Ron Singletary; the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter; the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Greece Police Department, under the direction of Chief Patrick Phelan; the Brighton Police Department, under the direction of Chief David Catholdi; and U.S. Border Patrol, under the direction of Patrol Agent-in-Charge Luis R. Tafoya.
Sentencing is scheduled for January 17, 2020, at 3:00 p.m. before Judge Geraci.
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Rochester Man Going to Prison for His Role in Multi-Million Dollar Narcotics ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Gerardo Ballardo, 27, of Riverbank, California, who was convicted of conspiring to possess with intent to distribute and distribute five kilograms or more of cocaine and conspiracy to commit money laundering, was sentenced to serve 84 months in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that the defendant conspired with co-defendants Jose Manuel Lua-Guizar, Enrique Munoz, Max Riestra, Pethrod Dunnigan, and others, to sell cocaine. Ballardo obtained multiple kilograms of cocaine to distribute in cities around the country including Buffalo, NY, and Chicago, IL. The defendant received Federal Express packages, containing multiple kilograms of cocaine, addressed to him or to a co-conspirator. The packages were shipped from California and would typically be addressed to a hotel in which Ballardo was staying. Ballardo would then deliver the kilograms of cocaine to co-conspirators, traveling to Buffalo, Chicago, and elsewhere.
In August 2014, Ballardo and Jose Manuel Lua-Guizar were detained in the Minneapolis Airport on their way to Chicago after the two had been in Buffalo just days prior. During that detention, a drug ledger was seized from the defendant along with over $12,000 in U.S. Currency, which was the proceeds of drug sales. During the course of the conspiracy, most of the drug proceeds were sent back to California by structured deposits under the $10,000 reporting requirement. Ballardo made over 30 structured deposits (mostly amounts of $9,900) in Buffalo alone. Ballardo and his co-conspirators accounted for over $1,000,000 in structured deposits in Buffalo, and over $10,000,000 in structured deposits nationwide during the conspiracy. A ledger for structured deposits was also recovered from a stash house in California.
A total of seven defendants were charged and convicted in this case.
The sentencing is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; Homeland Security Investigations, under the direction of Special Agent in Charge Kevin Kelly; and the Internal Revenue Service, Criminal Investigation Division, under the direction of Jonathan D. Larsen, Special Agent- in-Charge, New York Field Office. Additional assistance was provided by ICE-HSI in Los Angeles, California, and Bank of America.
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Project Parkersburg Update: Parkersburg Woman Sentenced to Prison for Methamphetamine ConspiracyRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced that Amy Rake, 39, of Parkersburg, was sentenced to 5 years in prison for conspiracy to distribute 50 grams or more of methamphetamine. Rake was prosecuted as part of Project Parkersburg – a major takedown and dismantling of a multi-state drug trafficking organization (DTO) responsible for distributing methamphetamine and heroin. Stuart commended the investigative efforts of the FBI, the Parkersburg Police Department, the Dayton Ohio Police Department, and the Parkersburg Narcotics and Violent Crime Task Force. The long-term, joint investigation resulted in at least 29 individuals being charged in federal and state court, the seizure of 121 pounds of ICE methamphetamine, six kilograms of cocaine, 217 grams of heroin, and 290 grams of fentanyl.
“As a result of operations like Project Parkersburg, we have doubled the number of meth prosecutions by my office,” said United States Attorney Mike Stuart. “We’re taking down meth trafficking organizations and prosecuting meth dealers like Rake throughout the District.”
Rake pled guilty in February and admitted that she was a street level distributor who received methamphetamine in multiple ounce quantities from her co-defendant Michael Rhodes which she then distributed to smaller dealers and users in and around Parkersburg.
United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorney Joshua C. Hanks handled the prosecution.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Poughkeepsie Man Sentenced to 144 Months for Robbing Hinsdale Credit UnionRead the Press Release
CONCORD – United States Attorney Scott W. Murray announced that Joseph M. Crocco, 42, of Poughkeepsie, New York, was sentenced to 144 months in prison and ordered to pay $2709 in restitution for robbing a credit union.
Evidence presented at trial showed that on December 21, 2017, the defendant entered the Service Credit Union branch located in the Walmart on Brattleboro Road in Hinsdale, New Hampshire. He approached a teller and gave her two notes. He then told her that he had a bomb strapped to his body and she had 60 seconds to comply with his demands. The teller gave him approximately $2,700 and he fled the store. Investigation by the New Hampshire State Police and the Hinsdale Police Department ultimately traced the defendant to Poughkeepsie where detectives from the City of Poughkeepsie Police Department identified the defendant in images taken from the credit union’s security cameras.
Crocco was found guilty by a jury on September 25, 2018.
“Robberies of banks and credit unions are violent crimes that can jeopardize the safety of employees, customers, and the public,” said U.S. Attorney Murray. “In order to protect the safety of our citizens, we work closely with our law enforcement partners to prosecute and incarcerate those who commit violent crimes in the Granite State.”
"Imagine being confronted at your place of work by a stranger, who threatened that you have one minute to decide whether to live or possibly die. That was the ultimatum Joseph Crocco forced upon a credit union teller inside a popular Hinsdale superstore, when he claimed he was armed with a bomb he would detonate if she did not cooperate," said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. "The FBI is proud to work with our law enforcement partners, who were instrumental in bringing Crocco to justice, and who hopefully restored some peace of mind to the bank's employees."
This matter was investigated by the Federal Bureau of Investigation, the Hinsdale Police Department, the New Hampshire State Police, the Brattleboro, Vermont Police Department, and the City of Poughkeepsie, New York Police Department. The case was prosecuted by Assistant U.S. Attorneys Anna Dronzek and Charles Rombeau.
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Pilot Program in Wichita Will Permit Body-Worn Cameras by Federally Deputized Task Force OfficersRead the Press Release
WICHITA, KAN. – On Friday, Nov. 1, 2019, the U.S. Attorney’s Office for the District of Kansas will launch a pilot program with the Wichita Police Department allowing local and state officers who serve on federal task forces to use body-worn cameras while serving arrest warrants, or other planned arrest operations, and during the execution of search warrants.
The pilot program, which will also go into effect in Detroit, Houston, Phoenix, Salt Lake City and Oakland, Calif., was announced by the Attorney General on Oct. 28, 2019. It allows - for the first time - federally deputized task force officers to use body-worn cameras.
“Local and state officers are critical members of our federal task forces,” U.S. Attorney Stephen McAllister said. “This policy recognizes and supports their contributions by respecting their policies regarding body cameras.”
“I am pleased that this pilot program takes into account the interests and priorities of all the law enforcement agencies involved in federal task forces,” said Attorney General William P. Barr. “These are some of the most dangerous jobs in law enforcement, and I am grateful for the sacrifice of those who serve. The Department of Justice has no higher priority than ensuring the safety and security of the American people and this pilot program will continue to help us fulfill that mission.”
The Department of Justice, through its law enforcement agencies, partners with state, local and tribal law enforcement on hundreds of federal task forces throughout the nation. Together, these task forces work to combat violent crime, stem the flow of illegal narcotics and arrest dangerous fugitives. Several of the department’s partner state and local agencies require their officers to wear body-worn cameras and have requested their officers wear these cameras on federal task forces when the use of force is possible.
The U.S. Attorney’s Office would like to thank its partners at ATF, DEA, FBI, USMS, as well as all of the state and local law enforcement leaders who play a critical role in implementing this important pilot program.
Pharmaceutical Sales Rep Sentenced for Defrauding Insurance Companies Out of Millions of DollarsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy, Jr. announced today that Scott Trapp, 50, of Clarence, NY, who was convicted of conspiracy to commit health care fraud, was sentenced to serve 36 months in prison by U.S. District Judge Lawrence J. Vilardo. The defendant was also ordered to pay approximately $10,000,000 in restitution.
Assistant U.S. Attorney Maura K. O’Donnell, who handled the case, stated that in 1996 the defendant began working as a pharmaceutical sales representative for various pharmaceutical companies. In 2014, Trapp began marketing “compounded medications,” such as pain patches, pain creams, and scar creams. “Compounded medications” are medications created when a licensed pharmacist, a licensed physician, or a person working under the supervision of a licensed pharmacist, combines, mixes, or alters ingredients of a drug to create a medication tailored to the needs of an individual patient.
The compounded medications marketed by the defendant, and his associates, were not tailored to the needs of individual patients. Instead, the medications were tailored to contain ingredients that carried high reimbursement rates from health insurers. Formulations of the medications were modified at times to permit reimbursement from health insurance companies and/or to maximize reimbursement rates. For example, a one month supply of one of the compounded pain creams marketed by Trapp carried a reimbursement rate of $22,000.
Unlike typical pharmaceutical sales representatives who market prescription drugs to physicians, the defendant, and his associates, identified patients whose health insurance covered the medications, and convinced the patients to agree to receive the medications.
In furtherance of the conspiracy, Trapp asked a friend, who was a physician, to sign blank, 12 month prescriptions for compounded medications, in the names of the defendant and his wife. Trapp then duplicated the prescriptions and substituted names of different patients for his own name, allowing for additional prescriptions for compounded medications to be filled without the physician knowledge.
Trapp also recruited, supervised, and compensated others to market the compounded pharmaceuticals. One of those individuals then recruited others to be part of the marketing scheme. The defendant received commission payments of approximately 20% of the reimbursement rate of each prescription he personally marketed which was approved and filled. Trapp also received commission payments of approximately 5% of each prescription marketed and filled by those he supervised, and by the individuals working for those people he supervised.
In total, between 2014 and December 2016, the health care benefit programs provided by Blue Cross Blue Shield (BCBS), the Verizon Medical Expense Plan for New York and New England Associates, National Grid USA, and Sunovion Pharma, paid approximately $5,821,331, for compounded prescriptions fraudulently filled, resulting in losses of: $7,352 to BCBS; $3,601,179 to the Verizon Medical Expense Plan for New York and New England Associates; $1,992,354 to National Grid USA; and $220,445 to Sunovion Pharma.
“Trapp defrauded health care benefit programs by putting his financial well-being above the physical well-being of the patients obtaining medications from him,” stated U.S. Attorney Kennedy. “Such conduct will not be tolerated in this District.”
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; the U.S. Department of Labor, Office of Inspector General, Office of Investigations – Labor Racketeering and Fraud, under the direction of Michael C. Mikulka, Special Agent-in-Charge, New York Region; the U.S. Food and Drug Administration, Office of Criminal Investigations, under the direction of Jeffrey Ebersole, Special Agent-in-Charge New York Field Office; the New York State Financial Services Department, under the direction of Superintendent Linda A. Lacewell; and the Defense Criminal Investigative Service, under the direction of Special Agent-in-Charge Leigh-Alistar Barzey.
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Outcome Health Agrees to Pay $70 Million to Resolve Fraud InvestigationRead the Press Release
ContextMedia Health LLC, which operates under the trade name Outcome Health (Outcome), a digital provider of medical information and advertising in doctors’ offices, has agreed to a resolution with the Department of Justice by which it will pay $70 million to victims of a fraud scheme that targeted its clients, lenders and investors.
Outcome, a privately held company headquartered in Chicago, Illinois, admitted in resolution documents that from 2012 to 2017, former executives and employees of the company perpetrated a scheme to defraud its clients—most of which were pharmaceutical companies—by selling advertising inventory that it did not have.
“Outcome Health deceived its lenders and investors, and overbilled its clients, by fraudulently misrepresenting both the quality and quantity of its advertising services and concealing those misrepresentations from auditors,” said Principal Deputy Assistant Attorney General John P. Cronan. “Today’s resolution demonstrates the Criminal Division’s unyielding commitment to making whole victims of fraud.”
“Outcome’s payment of $70 million is an appropriate resolution for the corporate entity given the misconduct of executives and employees acting on its behalf,” said Assistant U.S. Attorney Brian Hayes, Chief of the Criminal Division for the Northern District of Illinois. “This resolution demonstrates that there are significant consequences for businesses whose executives and employees engage in fraud.”
“For five years, employees of Outcome Health purposely failed to deliver on advertising campaigns and engaged in a pattern of misrepresentations to conceal their fraud,” said Special Agent in Charge Emmerson Buie Jr. of the FBI’s Chicago Field Office. “This resolution demonstrates the FBI’s commitment to working with its prosecutorial and investigative partners to ensure that justice is done.”
“Today’s agreement holds a healthcare technology company accountable for systematically committing fraudulent business practices for financial gain over many years,” said Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation’s Office of Inspector General (FDIC-OIG). “The FDIC-OIG is committed to investigating such corporate corruption which harms lending institutions, investors, customers, and competitors. We remain dedicated to working with our law enforcement partners to investigate those who commit such misconduct.”
Outcome admitted that as a result of its practice of selling clients inventory it did not have, it under-delivered on its advertising campaigns. Despite these under-deliveries, the company still invoiced its clients as if it had delivered in full. To conceal the under-deliveries, Outcome employees at the time falsified affidavits and proofs of performance to make it appear the company was delivering advertising content to the number of screens in its clients’ contracts. Outcome executives and employees during that time also inflated patient engagement metrics regarding how frequently patients engaged with Outcome’s devices. Furthermore, an executive at the time altered a number of studies presented to clients to make it appear that the campaigns were more effective than they actually were, Outcome admitted.
Outcome further admitted that its under-delivery on advertising campaigns resulted in a material overstatement of its revenue for the years 2015 and 2016. The company’s outside auditor signed off on the 2015 and 2016 revenue numbers because executives and employees at the time fabricated data to conceal the under-deliveries from the auditor. Outcome used the inflated revenue figures in its 2015 and 2016 audited financial statements to raise $110 million in debt financing in April 2016, $375 million in debt financing in December 2016, and $487.5 million in equity financing in early 2017, it admitted.
The Department and Outcome entered into a non-prosecution agreement (NPA) to resolve this matter. Outcome’s obligations under the agreement will have a term of three years, unless the term is modified by the government. Under the terms of the NPA, Outcome and its current parent company, Outcome Health LLC (Outcome Parent), committed to compensating the pharmaceutical client victims in the amount of $70 million, approximately $65.5 million of which has already been made through a combination of cash payments and in-kind services, and to set aside an additional $4.5 million to compensate any additional pharmaceutical clients who have not yet been made whole. The NPA does not require Outcome and Outcome Parent to provide compensation to lenders and investors who were victims of Outcome’s scheme, however, because many of those lenders and investors are now the companies’ new owners. Under the terms of the NPA, Outcome and Outcome Parent also agreed to cooperate with the government’s ongoing investigation of individuals, to report evidence or allegations of U.S. federal law to the Department, and to enhance their existing compliance program and internal controls, where necessary and appropriate, to ensure they are designed to detect and deter violations of U.S. federal law.
The Department reached this resolution based on a number of factors, including Outcome and Outcome Parent’s ongoing cooperation with the United States and for taking extensive remedial measures. For example, Outcome no longer employs the executives or employees who were involved in the wrongdoing, and Outcome and Outcome Parent made significant improvements to address and improve the reliability of reporting on advertising campaign delivery, including hiring third parties to audit all of their advertising campaigns.
The FBI and FDIC-OIG are investigating the case. Assistant Chief William E. Johnston and Trial Attorney Kyle C. Hankey of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Matthew F. Madden of the Northern District of Illinois are prosecuting the case.
Outcome Health Agrees to Pay $70 Million to Resolve Fraud InvestigationRead the Press Release
WASHINGTON – ContextMedia Health LLC, which operates under the trade name Outcome Health (Outcome), a digital provider of medical information and advertising in doctors’ offices, has agreed to a resolution with the Department of Justice by which it will pay $70 million to victims of a fraud scheme that targeted its clients, lenders and investors.
Outcome, a privately held company headquartered in Chicago, Illinois, admitted in resolution documents that from 2012 to 2017, former executives and employees of the company perpetrated a scheme to defraud clients — most of which were pharmaceutical companies — by selling advertising inventory that the company did not have.
“Outcome’s payment of $70 million is an appropriate resolution for the corporate entity given the misconduct of executives and employees acting on its behalf,” said Assistant U.S. Attorney Brian Hayes, Chief of the Criminal Division for the Northern District of Illinois. “This resolution demonstrates that there are significant consequences for businesses whose executives and employees engage in fraud.”
“Outcome Health deceived its lenders and investors, and overbilled its clients, by fraudulently misrepresenting both the quality and quantity of its advertising services and concealing those misrepresentations from auditors,” said Principal Deputy Assistant Attorney General John P. Cronan. “Today’s resolution demonstrates the Criminal Division’s unyielding commitment to making whole victims of fraud.”
“For five years, employees of Outcome Health purposely failed to deliver on advertising campaigns and engaged in a pattern of misrepresentations to conceal their fraud,” said Special Agent in Charge Emmerson Buie Jr. of the FBI’s Chicago Field Office. “This resolution demonstrates the FBI’s commitment to working with its prosecutorial and investigative partners to ensure that justice is done.”
“Today’s agreement holds a healthcare technology company accountable for systematically committing fraudulent business practices for financial gain over many years,” said Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation’s Office of Inspector General (FDIC-OIG). “The FDIC-OIG is committed to investigating such corporate corruption which harms lending institutions, investors, customers, and competitors. We remain dedicated to working with our law enforcement partners to investigate those who commit such misconduct.”
Outcome admitted that as a result of its practice of selling clients inventory it did not have, it under-delivered on its advertising campaigns. Despite these under-deliveries, the company still invoiced its clients as if it had delivered in full. To conceal the under-deliveries, Outcome employees at the time falsified affidavits and proofs of performance to make it appear the company was delivering advertising content to the number of screens in its clients’ contracts. Outcome executives and employees during that time also inflated patient engagement metrics regarding how frequently patients engaged with Outcome’s devices. Furthermore, an executive at the time altered a number of studies presented to clients to make it appear that the campaigns were more effective than they actually were, Outcome admitted.
Outcome further admitted that its under-delivery on advertising campaigns resulted in a material overstatement of revenue for the years 2015 and 2016. The company’s outside auditor signed off on the 2015 and 2016 revenue numbers because executives and employees at the time fabricated data to conceal the under-deliveries from the auditor. Outcome used the inflated revenue figures in its 2015 and 2016 audited financial statements to raise $110 million in debt financing in April 2016, $375 million in debt financing in December 2016, and $487.5 million in equity financing in early 2017, it admitted.
The Department and Outcome entered into a non-prosecution agreement (NPA) to resolve this matter. Outcome’s obligations under the agreement will have a term of three years, unless the term is modified by the government. Under the terms of the NPA, Outcome and its current parent company, Outcome Health LLC (Outcome Parent), committed to compensating the pharmaceutical client victims in the amount of $70 million, approximately $65.5 million of which has already been made through a combination of cash payments and in-kind services, and to set aside an additional $4.5 million to compensate any additional pharmaceutical clients who have not yet been made whole. The NPA does not require Outcome and Outcome Parent to provide compensation to lenders and investors who were victims of Outcome’s scheme, however, because many of those lenders and investors are now the companies’ new owners. Under the terms of the NPA, Outcome and Outcome Parent also agreed to cooperate with the government’s ongoing investigation of individuals, to report evidence or allegations of U.S. federal law to the Department, and to enhance their existing compliance program and internal controls, where necessary and appropriate, to ensure they are designed to detect and deter violations of U.S. federal law.
The Department reached this resolution based on a number of factors, including Outcome and Outcome Parent’s ongoing cooperation with the United States and for taking extensive remedial measures. For example, Outcome no longer employs the executives or employees who were involved in the wrongdoing, and Outcome and Outcome Parent made significant improvements to address and improve the reliability of reporting on advertising campaign delivery, including hiring third parties to audit all of their advertising campaigns.
The FBI and FDIC-OIG are investigating the case. Assistant U.S. Attorney Matthew F. Madden of the Northern District of Illinois and Assistant Chief William E. Johnston and Trial Attorney Kyle C. Hankey of the Department of Justice's Criminal Division’s Fraud Section are prosecuting the case.
Download the Non-Prosecution Agreement here.
Orange County Man Sentenced to 15 Years in Federal Prison for Traveling to China to Engage in Illicit Sexual Conduct with BoyRead the Press Release
LOS ANGELES – An Aliso Viejo man was sentenced today to 180 months in federal prison for traveling to China to engage in illegal sexual activity with a 16-year-old boy who was under his care and supervision at the time.
Ezequiel Christopher Barragan, 53, was sentenced by United States District Judge André Birotte Jr., who said that Barragan abused his positions of trust to gain access to victims.
Barragan pleaded guilty in October 2018 to one count of travel with intent to engage in illicit sexual conduct and one count of engaging in illicit sexual conduct in foreign places. He previously taught middle school and high school students, coached youth baseball, and at one-time was a court-appointed mentor and foster parent for abused or neglected children.
Barragan admitted in his plea agreement that in August 2009 he traveled from the United States to China with the intent to engage in illicit sexual conduct. While in China, Barragan engaged in illicit and sexually explicit conduct with the 16-year-old victim. Barragan admitted he produced child pornography with the victim during this time.
In his plea agreement, Barragan admitted that, on numerous occasions between 1998 and 2012, he traveled from the United States to foreign countries where he engaged in illicit sexual conduct with boys between the ages of 13 and 16 years old. He also admitted he often gave his victims food, cash and goods.
This matter was investigated by the United States Postal Inspection Service, which received substantial assistance from the Los Angeles Joint Regional Intelligence Center and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
This case was prosecuted by Assistant United States Attorney Damaris Diaz of the Violent and Organized Crime Section.
Opioid Treatment Practice Owner Sentenced for Illegal Distribution of Buprenorphine and Health Care FraudRead the Press Release
PITTSBURGH, Pa. - A resident of Washington, PA, was sentenced in federal court to three years of probation, with 90 days of home detention, 100 hours of community service, and ordered to pay a $10,000 fine and $80,000 in restitution on charges of aiding and abetting the unlawful distribution of controlled substances and health care fraud, United States Attorney Scott W. Brady announced today.
Jennifer Hess, 50, was sentenced by Senior or Chief United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that Hess founded and owned Redirections Treatment Advocates LLC (RTA), an opioid treatment practice with offices in Washington and Bridgeville, PA and Morgantown, Weirton and Moundsville, West Virginia. Hess aided and abetted the illegal distribution of buprenorphine, also known as Subutex and Suboxone, by completing blank pre-signed prescriptions and/or forging doctors’ names on blank prescriptions. Hess also committed health care fraud for causing fraudulent claims to be submitted to Medicaid and Medicare for payments to cover the costs of the unlawfully prescribed buprenorphine.
Assistant United States Attorney Robert S. Cessar and Michael L. Ivory are prosecuting this case on behalf of the government.
The investigation leading to the filing of charges in these cases was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit (OFADU). The Western Pennsylvania OFADU, led by federal prosecutors in the U.S. Attorney’s Office, combines the expertise and resources of federal and state law enforcement to address the role played by unethical medical professionals in the opioid epidemic.
The agencies which comprise the Western Pennsylvania OFADU include: Federal Bureau of Investigation, U.S. Health and Human Services – Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service-Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, Pennsylvania Office of Attorney General – Bureau of Narcotic Investigations, United States Postal Inspection Service, U.S. Attorney’s Office – Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs-Office of Inspector General, Food and Drug Administration-Office of Criminal Investigations, U.S. Office of Personnel Management – Office of Inspector General and the Pennsylvania Bureau of Licensing.
Operation Snowplow nets more than 10 federal convictions and sentencesRead the Press Release
SAVANNAH, GA: An 11th defendant pled guilty and three additional defendants received federal prison sentences today as the prosecution of a major drug trafficking and money laundering organization continues.
Sentences this week in Operation Snowplow, which represents the largest single seizure of cocaine to date by the Chatham-Savannah Counter Narcotics Team (CNT), brings to nine the number of defendants sentenced, with two awaiting sentencing and three more defendants still being sought.
“The agencies who slammed the door on these merchants of misery include dedicated law enforcement professionals and prosecutors who team up to make our community safer,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “For once in their lives, these convicted felons will make our neighborhoods better by no longer being part of them.”
According to court documents and testimony, the drug-trafficking organization led by Omar Griffin and others acquired significant quantities of cocaine from Texas and Marijuana from California, along with other narcotics, from at least February 2014 through March 2018. The drugs were then packaged in children’s toys and DVD players, and concealed in cargo vans and truck trailers for shipment to Savannah, for distribution to mid-level dealers from several Savannah-area residences.
On March 5, 2018, law enforcement intercepted a shipment of 25 kilograms of cocaine that had been driven from Texas to a hotel in Richmond Hill, Ga., concealed inside a cargo trailer. Officers also seized more than $387,000 in cash that had been exchanged for the cocaine. After interdicting the drugs, law enforcement executed a number of search and arrest warrants. In total in this investigation, law enforcement seized more than 25 kilograms of cocaine, more than 30 pounds of marijuana, approximately $750,000 in cash, nearly two dozen firearms (including semi-automatic rifles), and other narcotics.
Defendants sentenced this week include:
- Herman Williams, 44, of Savannah, convicted of Conspiracy to Possess with Intent to Distribute Cocaine, sentenced to 132 months in prison;
- Vincent Hooper, 55, of Savannah, convicted of Possession of a Firearm by a Convicted Felon, sentenced to 30 months in prison;
- Emmett Ramsey, 36, of Savannah, convicted of Unlawful Use of a Communication Facility, sentenced to 42 months in prison;
Defendants awaiting sentencing include:
- Allen Grady, 42, of Port Wentworth, Ga., convicted of Conspiracy to Commit Money Laundering; and,
- Barron Robertson, 53, of Savannah, convicted of Possession with Intent to Distribute 5 Kilograms or more of Cocaine.
Defendants previously sentenced include:
- Barrington Miller, 48, of Savannah, convicted of Distribution of Cocaine, Maintaining a Drug-Involved Premises, and Unlawful Use of a Communication Facility, sentenced to 120 months in prison;
- Justin Swinton, 38: of Port Wentworth, convicted of Conspiracy to Possess with Intent to Distribute 50 kilograms or more of marihuana, sentenced to 37 months in prison;
- Rodrigo Rodriguez, 48: of Houston, Texas, convicted of Conspiracy to Possess with Intent to Distribute 5 kilograms or more of cocaine and 50 kilograms or more of marihuana, sentenced to 84 months in prison;
- Desmond Jones, 48, of Houston, convicted of Conspiracy to Possess with Intent to Distribute 5 kilograms or more of Cocaine, sentenced to 56 month in prison;
- Edgar Guadalupe-Marroquin, 36: of Houston, convicted of Interstate Travel to Carry on Unlawful Activities, sentenced to 60 months in prison; and,
- Christian Ramirez-Leyton, 44, of Houston, convicted of Interstate Travel to Carry on Unlawful Activities, sentenced to 60 months in prison.
Three defendants remain fugitives:
- Kia Hickman, 48, of Savannah;
- Omar Griffin, 40, of Pooler, Ga.; and,
- Jamaal Singleton, 41, of Savannah.
Individuals with information on the whereabouts of Griffin, Hickman, or Singleton can anonymously contact CNT at 912-652-3900, or Crime Stoppers at 912-234-2020. Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
“This was an outstanding operation that not only positively impacted our local community but the nation as a whole,” said Everett Ragan, Director of CNT. “It was deemed successful because local, state, and federal enforcement agencies came together to plow this organization right into the ground.”
“Operation Snowplow emphasizes the importance of collaborative efforts between the U.S. Postal Inspection Service and our federal partners, reinforcing the Postal Inspection Service’s mission of protecting the public and preventing criminal misuse of our mail,” said Lesley C. Allison, Acting Inspector in Charge of the Miami Division of the U.S. Postal Inspection Service.
Operation Snowplow was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF), the premier U.S. Department of Justice program to dismantle multi-jurisdictional drug trafficking organizations, and conducted by the Drug Enforcement Administration, the U.S. Postal Inspection Service, the Chatham-Savannah Counter Narcotics Team, Savannah Police Department, Chatham County Police Department, and the Chatham County Sheriff’s Office K9 Unit and the Chatham County Aviation Unit, and prosecuted for the United States by the U.S. Attorney’s Office for the Southern District of Georgia.
Oil Executives Plead Guilty for Roles in Bribery Scheme Involving Foreign OfficialsRead the Press Release
The former CEO and chief operations officer (COO) of a Monaco-based intermediary company have pleaded guilty for their roles in a scheme to corruptly facilitate millions of dollars in bribe payments to officials in multiple countries. These included Algeria, Angola, Azerbaijan, the Democratic Republic of Congo, Iran, Iraq, Kazakhstan, Libya and Syria. The company’s former business development director also pleaded guilty for his role in paying bribes in Libya.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas, Assistant Director in Charge Timothy R. Slater of the FBI’s Washington Field Office, Inspector in Charge Adrian Gonzales of the U.S. Postal Inspection Service (USPIS) Houston Division and Special Agent in Charge D. Richard Goss of the IRS-Criminal Investigation’s (IRS-CI) Houston Field Office made the announcement.
Cyrus Ahsani, 51, and Saman Ahsani, 46, both of United Kingdom (UK), each pleaded guilty March 25 to one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA), for conspiring to facilitate bribes on behalf of companies in foreign countries in order to secure oil and gas contracts. UK resident Steven Hunter, 50, former business development director, pleaded guilty Aug. 2, 2018, to one count of conspiracy to violate the FCPA. Cyrus and Saman Ahsani are set for sentencing April 20, 2020, before U.S. District Judge Vanessa Gilmore of the Southern District of Texas. Hunter’s sentencing is scheduled for March 13, 2020, before U.S. District Judge David Hittner.
According to court documents, former U.S. resident and CEO Cyrus Ahsani and former COO Saman Ahsani managed a Monaco-based intermediary company that provided services for multinational companies operating in the energy sector. From approximately 1999 to 2016, the Ahsanis conspired with others, including multiple companies and individuals, to make millions of dollars in bribe payments to government officials in Algeria, Angola, Azerbaijan, the Democratic Republic of Congo, Iran, Iraq, Kazakhstan, Libya and Syria.
Additionally, court documents reflect Cyrus and Saman Ahsani laundered the proceeds of their bribery scheme in order to promote and conceal the schemes and to cause the destruction of evidence in order to obstruct investigations in the United States and elsewhere. Hunter participated in the conspiracy to violate the FCPA by, among other things, facilitating bribe payments to Libyan officials between about 2009 and 2015.
The FBI, IRS-Criminal Investigation and U.S. Postal Inspection Service conducted the investigation. Trial Attorneys Dennis R. Kihm, Gerald M. Moody Jr., Jonathan P. Robell and Gwendolyn A. Stamper of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Suzanne Elmilady of the Southern District of Texas are prosecuting the case. The Criminal Division’s Office of International Affairs also provided substantial assistance in this matter.
The governments of Australia, Canada, France, Guernsey, Italy, Monaco, the Netherlands, Portugal, Switzerland and UK provided significant assistance in this matter as did the U.S. Securities and Exchange Commission and Eurojust.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.
Oil Executives Guilty for Roles in Bribery Scheme Involving Foreign OfficialsRead the Press Release
HOUSTON - The former CEO and chief operations officer (COO) of a Monaco-based intermediary company have pleaded guilty for their roles in a scheme to corruptly facilitate millions of dollars in bribe payments to officials in multiple countries. These included Algeria, Angola, Azerbaijan, the Democratic Republic of Congo, Iran, Iraq, Kazakhstan, Libya and Syria. The company’s former business development director also pleaded guilty for his role in paying bribes in Libya.
Cyrus Ahsani, 51, and Saman Ahsani, 46, both of United Kingdom (UK), each pleaded guilty March 25 to one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA), Conspiring to facilitate bribes on behalf of companies in foreign countries in order to secure oil and gas contracts. UK resident Steven Hunter, 50, former business development director, pleaded guilty Aug. 2, 2018, to one count of conspiracy to violate the FCPA. Cyrus and Saman Ahsani are set for sentencing April 20, 2020, before U.S. District Judge Vanessa Gilmore of the Southern District of Texas. Hunter’s sentencing is scheduled for March 13, 2020, before U.S. District Judge David Hittner.
According to court documents, former U.S. resident and CEO Cyrus Ahsani and former COO Saman Ahsani managed a Monaco-based intermediary company that provided services for multinational companies operating in the energy sector. From approximately 1999 to 2016, the Ahsanis conspired with others, including multiple companies and individuals, to make millions of dollars in bribe payments to government officials in Algeria, Angola, Azerbaijan, the Democratic Republic of Congo, Iran, Iraq, Kazakhstan, Libya and Syria.
Additionally, court documents reflect Cyrus and Saman Ahsani laundered the proceeds of their bribery scheme in order to promote and conceal the schemes and to cause the destruction of evidence in order to obstruct investigations in the United States and elsewhere. Hunter participated in the conspiracy to violate the FCPA by, among other things, facilitating bribe payments to Libyan officials between about 2009 and 2015.
The FBI, IRS-Criminal Investigation and U.S. Postal Inspection Service con ducted the investigation. Trial Attorneys Dennis R. Kihm, Gerald M. Moody Jr., Jonathan P. Robell and Gwendolyn A. Stamper of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Suzanne Elmilady of the Southern District of Texas are prosecuting the case. The Criminal Division’s Office of International Affairs also provided substantial assistance in this matter.
The governments of Australia, Canada, France, Guernsey, Italy, Monaco, the Netherlands, Portugal, Switzerland and UK provided significant assistance in this matter as did the U.S. Securities and Exchange Commission and Eurojust.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.
Odessa Man Sentenced to Federal Prison for Stealing Firearms from a Pawn Shop in OdessaRead the Press Release
In Midland today, U.S. District Judge David Counts sentenced 28-year-old Christopher Chase Mojica to 57 months in federal prison followed by three years of supervised release for stealing firearms from a pawn shop in Odessa and for being a convicted felon in possession of a firearm, stated U.S. Attorney John F. Bash; Special Agent in Charge Jeffrey C. Boshek, II, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Dallas Field Division; and, Odessa Police Chief Michael Gerke.
On July 23, 2019, Mojica pleaded guilty to one count of possession of a firearm by a prohibited person and one count of theft of a firearm from a Federal Firearms Licensee (FFL). By pleading guilty, Mojica admitted that on April 29, 2019, he walked inside Cash America in Odessa, fired a flare gun at employees, smashed a display case then walked out with five firearms. One of the stolen firearms was a Romarm/Cugir Draco 7.62x39mm caliber semi-automatic pistol manufactured outside the State of Texas. According to court records, Mojica’s criminal history reveals a 2019 conviction in Ector County for burglary and a 2017 conviction in Ector County for possession of a controlled substance.
“Mr. Mojica victimized a Federal Firearms Licensee during business hours, placing employees and patrons at risk,” stated ATF Special Agent in Charge Boshek. “Swift action by the Odessa Police Department prevented stolen firearms from entering the illegal firearms trade, and strong law enforcement partnerships resulted in the successful federal prosecution.”
ATF and the Odessa Police Department conducted this investigation. Assistant U.S. Attorney Glenn Harwood prosecuted this case on behalf of the government.
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. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
North Dakota Man Charged with Domestic Assault by an Habitual OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Selfridge, North Dakota, man has been indicted by a federal grand jury for Domestic Assault by an Habitual Offender.
Vincent Carry Moccasin, Jr., age 52, was indicted on October 16, 2019. He appeared before U.S. Magistrate Judge William D. Gerdes on October 28, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on August 3, 2019, Carry Moccasin Jr. unlawfully committed a domestic assault when at the time, he had at least two separate prior final convictions for domestic assaults in Standing Rock Sioux Tribal Court.
The charge is merely an accusation and Carry Moccasin Jr. is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Kirsten Jasper is prosecuting the case.
The defendant was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Nevada Man Pleads Guilty to Role in Million Dollar Scheme Targeting Thousands of U.S. Servicemembers and VeteransRead the Press Release
Fredrick Brown, 38, of Las Vegas, Nevada, a former civilian medical records administrator for the U.S. Army at the 65th Medical Brigade, Yongsan Garrison, South Korea, admitted yesterday to his role in an identity-theft and fraud scheme that victimized thousands of U.S. servicemembers and veterans.
Appearing before U.S. Magistrate Judge Richard Farrer, Brown pleaded guilty to one count of conspiracy to commit wire fraud and one count of conspiracy to launder monetary instruments. By pleading guilty, Brown admitted that from July 2014 to September 2015, he stole personal identifying information (PII) of thousands of military members, including names, social security numbers, DOD ID numbers, dates of birth, and contact information. Brown admitted to capturing the PII by taking digital photographs of his computer screen while he was logged into the Armed Forces Health Longitudinal Technology Application. Brown further admitted that he subsequently provided that stolen data to co-defendant, Robert Wayne Boling Jr., so that Boling and others could exploit the information in various ways to access Department of Defense and Veterans Affairs benefits sites and steal millions of dollars.
Brown faces up to 20 years in federal prison for each conspiracy charge. He remains in federal custody awaiting sentencing scheduled for 10:30am on Feb. 6, 2020, before Chief U.S. District Judge Orlando Garcia in San Antonio.
As asserted in the indictment, Boling (U.S. citizen), together with his Philippines-based co-defendants Allan Albert Kerr (Australian citizen) and Jongmin Seok (South Korean citizen), specifically used the stolen information to compromise a Department of Defense portal designed to enable military members to access benefits information online. Once through the portal, the defendants are alleged to have accessed benefits information. Access to these detailed records enabled the defendants to steal or attempt to steal millions of dollars from military members’ bank accounts. The defendants also stole veterans’ benefits payments. After the defendants had compromised military members’ bank accounts and veterans’ benefits payments, Boling allegedly worked with co-defendant Trorice Crawford to recruit individuals who would accept the deposit of stolen funds into their bank accounts and then send the funds through international wire remittance services to the defendants and others. Evidence of the defendants’ scheme was detected earlier this year, advancing the investigation that led to the indictment.
The Departments of Defense and Veterans Affairs are coordinating with the Department of Justice to notify and provide resources to the thousands of identified victims. Announcements also will follow regarding steps taken to secure military members’ information and benefits from theft and fraud.
Boling, Crawford, Kerr and Seok are charged with multiple counts of conspiracy, wire fraud, and aggravated identity theft. Crawford remains in federal custody pending resolution of this litigation. Boling, Kerr and Seok are in custody in the Philippines awaiting transfer to the Western District of Texas.
It is important to note that an indictment merely alleges that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The United States is represented by Trial Attorneys Ehren Reynolds and Yolanda McCray Jones of the Department of Justice’s Consumer Protection Branch and Assistant U.S. Attorney Joseph Blackwell of the U.S. Attorney’s Office for the Western District of Texas. The matter was investigated by agents of the Defense Criminal Investigative Service, and counsel Matthew Freund, along with substantial investigative support from the U.S. Postal Inspection Service, the U.S. Army Criminal Investigation Command, and the Veterans Benefits Administration’s Benefits Protection and Remediation Division. The U.S. Department of State’s Diplomatic Security Service, Philippine law enforcement partners, and the U.S. Attorneys’ Offices for the District of Nevada, the Southern District of California, and the Eastern District of Virginia also provided assistance. Resources from the Department of Justice’s Servicemembers and Veterans Initiative and its Transnational Elder Fraud Strike Force aided in the matter’s investigation and prosecution.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, this past March the Department announced the largest elder fraud enforcement action in American history, charging more than 260 defendants in a nationwide elder fraud sweep. The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act. More information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice.
Additional information about the Consumer Protection Branch and its enforcement efforts can be found at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Western District of Texas, visit its website at https://www.justice.gov/usao-wdtx. Information about the Department of Justice's Servicemember and Veterans Initiative is available at https://www.justice.gov/servicemembers.
Nearly Two Dozen Alleged Members of Rival Chester, PA Drug Gangs Arrested in Early Morning Takedown and Charged in Parallel IndictmentsRead the Press Release
CHESTER, PA – William M. McSwain, United States Attorney for the Eastern District of Pennsylvania; Michael Harpster, Special Agent in Charge of the Federal Bureau of Investigation-Philadelphia Office; Jonathan Wilson, Special Agent in Charge of the Drug Enforcement Administration-Philadelphia Field Division; and Katayoun Copeland, District Attorney of Delaware County, jointly announced today the unsealing of two parallel Indictments charging 22 individuals with drug trafficking and firearms offenses. The defendants are alleged to be members of rival drug trafficking groups (DTGs) operating next to each other in territories occupying the west side of Chester. The two rival groups are the “3rd Bone” (or “3BM”) DTG and the “William Penn” (“the Pen” or “Ject Boyz”) DTG.
The Indictments announced today arose out of a multi-year joint investigation involving the United States Attorney’s Office, FBI, DEA, Chester City Police, and the Delaware County District Attorney’s Office. In describing the facts in the Indictments during a press conference at the Chester Police Department, U.S. Attorney McSwain noted the havoc and terror allegedly caused by these groups on the streets of Chester.
The details of each Indictment, both unsealed this morning, are provided below.
United States v. Deshaun Davis et al., Criminal No. 19-636, is a 70-count Indictment involving the 3rd Bone DTG. The Indictment charges conspiracy to distribute crack, cocaine, fentanyl, and heroin (one count); distribution and possession with intent to distribute controlled substances (57 counts); unlawful use of a communications facility in furtherance of a drug felony (five counts); possession of a firearm in furtherance of a drug trafficking crime (three counts); felon in possession of a firearm (two counts); and aiding and abetting. The following 13 individuals, all allegedly part of the 3rd Bone DTG, are named in the Indictment:
- Deshaun Davis, 34, of Chester;
- Dwayne Butler, 25, of Chester;
- Tyleel Scott-Harper, 23, of Chester;
- Brandon Scott-Harper, 20, of Chester;
- Michael Wright, 20, of Chester;
- Isiah Jenifer, 22, of Chester;
- Frederick Rochester, 27, of Chester;
- Jamel Covington, 29, of Chester;
- Johvon Covington, 30, of Chester;
- Derrick Cooper, 25, of Upland;
- Frederick Donaldson, 25, of Chester;
- Perley Mack, Jr., 24, of Marcus Hook; and
- Shahaad Sterling, 21, of Chester.
United States v. Issac Barrett et al., Criminal No. 19-567, is a 19-count Superseding Indictment involving the William Penn DTG. The Superseding Indictment charges conspiracy to distribute crack, cocaine, and heroin (one count); distribution and possession with intent to distribute crack and cocaine (12 counts); possession with intent to distribute crack (two counts); possession of a firearm in furtherance of a drug trafficking crime (two counts); and felon in possession of a firearm (two counts). The following nine individuals, all allegedly part of the William Penn drug trafficking group, are named in the Superseding Indictment:
- Issac Barrett, 33, of Essington;
- Kaleaf Gilbert, 27, of Chester;
- Darnell Bell, 29, of Chester;
- Terrence Womack, 32, of Chester;
- Brennen Lane, 31, of Chester;
- Dion Kattes, 21, of Chester;
- Saequan Womack, 26, of Chester;
- Jamar Bright, 31, of Chester; and
- Kevin Nichols, 57, of Chester.
The dual Indictments allege that the 3rd Bone and William Penn DTGs controlled adjacent drug territories in the western part of Chester. The 3rd Bone DTG’s drug operations were centered in the area of 3rd and Lamokin Streets, while the William Penn DTG controlled the drug territory surrounding the Chester Housing Authority’s William Penn Homes.
As alleged in the Indictments, both groups distributed drugs—mainly crack cocaine—to customers in their respective territories, and both groups defended their respective drug territories with armed violence. This brought them into regular conflict with each other. The Indictments describe several shootings and other acts of violence carried out between members of the two groups. For example, the Barrett Superseding Indictment alleges that 3rd Bone and William Penn DTG members were involved in an exchange of gunfire on February 21, 2019, in the 700 block of 2nd Street in Chester. After the shooting, the Indictment alleges William Penn DTG members Issac Barrett and Kaleaf Gilbert discussed the incident on the telephone and the two men agreed that one of the victims injured in the shooting “deserve[d] it” for “tr[ying] to hit” Gilbert. Barrett also is accused of putting a $15,000 bounty on the head of one of the rival DTG members that he believed was involved in the shooting.
“As alleged in the Indictments, these two groups have terrorized the Chester community for years with their drug dealing and associated violence. Today, their reign of terror ends,” said U.S. Attorney McSwain. “Both of these Indictments represent the culmination of years of dedicated investigative work and collaboration among federal and local law enforcement agencies. We are strongest by working together and we are committed to improving and protecting the quality of life of the law-abiding residents of Chester, who deserve to live and work in peace.”
“Predatory violent drug gangs like 3rd Bone and the Ject Boyz prey on members of their own communities,” said FBI Special Agent in Charge Harpster. “Today’s Indictments resulted from a long term, multi-agency investigation, and the charges send a message to gang members that the FBI and its law enforcement partners will never stop working to make our communities safer and free from violent crime.”
“The individuals that were indicted and arrested today terrorized the residents of Chester through their alleged drug-trafficking activities and acts of violence, to include shootings, to further and expand their criminal activities,” said DEA Special Agent in Charge Wilson. “These are dangerous people that were arrested today. The DEA, working with partner federal, state, and local law enforcement agencies, will continue to work together to identify the drug-trafficking organizations that pose the greatest threat to our communities.”
“My Office is committed to making the streets of Chester safe from drug trafficking and related violence,” said District Attorney Copeland. “Every resident deserves the right to walk their children to school or commute to work without fear. I am grateful to continue my Office’s good work and collaboration with U.S. Attorney McSwain, the FBI, the DEA, and all of our federal, state, and local partners to assure the safety of everyone in our community.”
If convicted, each of the defendants faces at least 20 years of potential imprisonment. Several of the senior members of the two groups, including Davis, Butler, Barrett, and Gilbert, face potential life sentences.
The case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Chester Police Department Narcotics Unit, with assistance from the Delaware County District Attorney’s Office, the Delaware County Drug Task Force, the U.S. Marshals Task Force, the Pennsylvania State Police, the Delaware County Sheriff’s Office, the Chester Township Police Department, the Ridley Township Police Department, and the Sharon Hill Police Department. It is being prosecuted by Assistant United States Attorney Sean McDonnell.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
More charged in RGV auto loan scamRead the Press Release
McALLEN, Texas – Three more individuals have been charged in connection with a long-running scheme to defraud a financial institution in a scheme to obtain car loans in the Rio Grande Valley, announced U.S. Attorney Ryan K. Patrick.
A federal grand jury returned the superseding indictment under seal Oct. 22 against Jorge Garza, 46, San Antonio; Samuel Sanchez, 55, McAllen; and Soundra Lopez, 52, Weslaco. It was unsealed in its entirety today as authorities arrested Sanchez. He is expected to make his initial appearances before U.S. Magistrate Judge Juan Alanis this morning. Garza and Lopez appeared in federal court last week following their arrests and were permitted release upon posting bond pending further criminal proceedings.
The three are charged with conspiracy to commit bank fraud.
Sanchez and Lopez allegedly provided materially false information to County and Municipal Employee’s Credit Union (CMECU) regarding borrower creditworthiness in order to fund motor vehicle purchases. Garza, Sanchez and Lopez caused CMECU to fund approximately $2,287,720 in fraudulent loans, according to the superseding indictment.
Three car dealership employees were previously charged in relation to this scheme - Ronnie Joe Gomez, 44, Pharr; David Salinas, 45, McAllen; and Jorge Villanueva 51, San Antonio.
Gomez and Salinas are charged with wire fraud, while Villanueva is charged with wire fraud against a financial institution. Garza, Sanchez and Lopez are all charged with conspiracy to commit bank fraud. Gomez and Salinas face up to 20 years in prison and a possible $250,000 maximum fine, while the remaining defendants could receive a maximum 30-year prison term and up to a $1 million potential fine, upon conviction.
The FBI conducted the investigation. Assistant U.S. Attorney Frances E. Blake is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Montgomery Man Sentenced to Ten Years in Prison for Being a Felon in Possession of a FirearmRead the Press Release
Montgomery, Alabama – On Monday, October 28, 2019, Labarry Darell Aaron, 26, of Montgomery, Alabama, was sentenced to 120 months in prison for being a felon in possession of a firearm, announced United States Attorney Louis V. Franklin, Sr. The judge sentenced Aaron to the maximum time allowed in this case due to his significant criminal history and evidence of other relevant conduct collected after his arrest. There is no parole in the federal system.
On July 31, 2018, law enforcement was executing an arrest warrant for Aaron at a Gilmer Avenue residence in Montgomery. They found him at the house along with numerous guns. As a convicted felon, Aaron is prohibited by federal law from possessing firearms of any kind. There was also video evidence discovered that showed Aaron at the Gilmer Avenue residence in possession of a firearm while preparing to conduct a retaliatory drive-by shooting at an apartment complex. Ballistic evidence collected by law enforcement at the apartment links Aaron to that shooting. The apartment drive-by is likely the result of an ongoing dispute between Aaron and others.
The Montgomery Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and investigated the case, with assistance from the United States Marshals Service and the Alabama Department of Forensic Sciences. Assistant United States Attorney Joshua J. Wendell prosecuted the case.
Michigan Man Sentenced for Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – A Harper Woods, Michigan man was sentenced to federal prison for a drug crime announced United States Attorney Mike Stuart. Nekko Daniel was sentenced to 21 months in prison for possession with intent to distribute oxycodone. Daniel was also sentenced to three years of supervised release.
“Pill pushers like Daniel feed the flames of the opioid epidemic. It is tragic,” said United States Attorney Mike Stuart. “We are holding them accountable.”
Daniel admitted that in December 2016, a car he was traveling in on Interstate 77 was stopped by police for a traffic violation. Upon smelling marijuana, police officers searched the car and found 10 grams of marijuana and approximately 540 oxycodone pills. Daniel admitted that he intended to distribute the oxycodone pills.
The Metropolitan Drug Enforcement Network Team (MDENT) conducted the investigation. United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorney Negar M. Kordestani handled the prosecution.
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Mexican national sent to prison for cocaine conspiracyRead the Press Release
LAREDO, Texas – A 21-year-old resident of Nuevo Laredo, Tamaulipas, Mexico, has been ordered to federal prison following his conviction for conspiring to import approximately 15 kilograms of cocaine into the United States from Mexico, announced U.S. Attorney Ryan K. Patrick.
Emmanuel Enrique Martinez-Garcia pleaded guilty Sept. 4.
Today, U.S. District Judge Marina Garcia Marmolejo imposed a sentence of 48 months and one day in prison. Not a U.S. citizen, he is expected to face removal proceedings following his imprisonment. At the hearing, the court heard additional information that detailed how he coordinated the drug smuggling event with traffickers through text messages. In handing down the sentence, the court noted Martinez-Garcia knew what he was doing when he agreed to join the conspiracy and that there was no excuse for importing cocaine into the United States.
On Dec. 10, 2018, Martinez-Garcia applied for admission into the United States via the Gateway to the Americas Bridge Port of Entry in Laredo. During secondary inspection, a K-9 inspected the vehicle and gave a positive alert to the possible presence of concealed narcotics or humans.
Authorities then conducted a non-intrusive X-ray scan of the white F-150, revealing anomalies around the rear gas tank area of the vehicle. They inspected the area and discovered multiple sealed packages wrapped in tape. They probed one of the packages and found a white powdery substance which tested positive for cocaine. Law enforcement ultimately discovered a total of 15 packages of cocaine with an approximate value of $372,000.
Martinez-Garcia has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Customs and Border Protection and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Francisco J. Rodriguez is prosecuting the case.
Mexican National Charged with Illegal ReentryRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that ARMANDO ENRIQUEZ-MORA, age 38, a citizen of Mexico, was charged October 29, 2019 in a one-count bill of information with illegal reentry of a removed alien, in violation of 8 U.S.C. ' 1326.
According to the bill of information, ARMANDO ENRIQUEZ-MORA was encountered in the United States on or about October 8, 2019, after having been previously removed therefrom on or about October 30, 2012.
If convicted, ARMANDO ENRIQUEZ-MORA faces a maximum term of imprisonment of two years, a fine of up to $250,000.00, one year supervised release after imprisonment, and a $100 special assessment.
U. S. Attorney Strasser reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
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Metro-Atlanta chiropractors sentenced for healthcare and tax fraudRead the Press Release
ATLANTA –Two metro-Atlanta chiropractors, Allan Spagnardi and Stacy Spagnardi, have been sentenced to federal prison for using their chiropractic clinic to commit healthcare fraud and for defrauding the Internal Revenue Service.
“These chiropractors used their patients’ personal information to obtain over a million dollars from a private insurance company,” said U. S. Attorney Byung J. (“BJay”) Pak. “Then they went further by engaging in a lengthy scheme to hide their income from the IRS. Healthcare professionals who defraud insurance companies do not just abuse the trust afforded to them by their patients, they also drive up healthcare prices for honest citizens throughout the country.”
“The community has a right to expect that when seeking healthcare services, their healthcare provider will not abuse their private information for personal gain," said Thomas J. Holloman, III, Special Agent in Charge, IRS-Criminal Investigations. “Professionals, including chiropractors, who abuse the public’s trust, will be held accountable and face severe consequences including imprisonment and substantial fines. The American public deserves our vigilance in the investigation and prosecution of allegations of fraud by unscrupulous healthcare professionals who hide income and evade the payment of their fair share of taxes.”
“The Spagnardis chose to take advantage of patients and the entire health care industry by billing for services that were never provided and defrauding the IRS,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “This sentence will serve as a reminder to others that the FBI will not tolerate healthcare providers who engage in schemes to steal from taxpayers and defraud the industry.”
“Here in Georgia, we are committed to protecting consumers and taxpayers from bad actors like the Spagnardis, whose actions erode trust in our healthcare system and lead to higher premiums across the state,” said Georgia Insurance and Safety Fire Commissioner John F. King. “I’m thankful for the work of U.S. Attorney Pak and his team to bring these individuals to justice and send a clear message that these types of activities will not be tolerated in Georgia.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Dr. Allan Spagnardi and Dr. Stacy Spagnardi operated a chiropractic clinic located in Marietta, Georgia. Over a multi-year period, the Spagnardis used their patients’ personal information to bill a private insurance company for services that were never actually rendered. At times, the Spagnardis submitted claims for reimbursement for services occurring when they were not even in the country. For instance, the Spagnardis claimed that their clinic had 296 patient visits during a week that they were actually on a cruise vacation out of the country.
Despite earning well over $1 million in personal income in 2014 and 2015, the Spagnardis failed to file federal income tax returns or pay federal income taxes for those tax years and instead took steps to hide their true income from the Internal Revenue Service (“IRS”). After the Spagnardis were indicted, they continued to take steps to hide their income from the IRS, including by filing a false federal income tax return in early 2018.
Allan Spagnardi, 41, and Stacy Spagnardi, 52, both of Atlanta, Georgia, were each sentenced to four years, three months of incarceration, and three years of supervised release. Both defendants were also ordered to pay full restitution to the victim of the offense.
The Federal Bureau of Investigation, Internal Revenue Service Criminal Investigation, and the Georgia Office of Commissioner of Insurance investigated the case.
Assistant U.S. Attorneys Thomas J. Krepp and Leanne M. Marek prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Methamphetamine Dealer Sentenced to 15 Years in Federal Prison for Two Drive-By Shootings and Distributing DrugsRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel today sentenced Josue Balbino Ruiz-Reyes, age 25, of Adelphi, Maryland, to 15 years in federal prison, followed by five years of supervised release, for conspiracy to distribute and to possess with intent to distribute methamphetamines and for using, carrying, brandishing, and discharging a firearm in connection with a drug trafficking offense.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Acting Chief Marcus Jones of the Montgomery County Police Department.
United States Attorney Robert K. Hur stated, “All too often, guns and drugs go hand in hand—and both are killers. As today’s sentence demonstrates, we are committed to getting both off of our streets and to reducing violent crime in our neighborhoods. Josue Ruiz-Reyes will now serve 15 years in federal prison, where there is no parole—ever. Please, put down the guns and save a life—maybe even your own.”
According to his guilty plea, from about 2016 through November 21, 2018, Ruiz-Reyes conspired with others, including Individual 1, to distribute methamphetamine. During that time, Ruiz-Reyes distributed crystal methamphetamine to individuals in and around Maryland in exchange for cash, services, or items of value, such as hotel stays. In October or November 2018, Ruiz-Reyes paid Individual 1 approximately $500 in cash for a future delivery of methamphetamine. Despite repeated requests from Ruiz-Reyes, Individual 1 failed to deliver the methamphetamine or repay the money.
As detailed in his plea agreement, late on November 15 or early November 16, 2018, Ruiz-Reyes drove a silver-colored vehicle to a house on Twig Road in Silver Spring, Maryland, where he knew Individual 1 often stayed with Individual 2. Ruiz-Reyes repeatedly fired a 9mm semi-automatic pistol at the Twig Road House in retaliation for Individual 1’s failure to pay the drug debt, and to induce Individuals 1 and 2 to repay the drug debt. In the evening of November 16, 2018, Ruiz-Reyes returned to the house in his silver vehicle and again discharged his weapon at the house over the drug debt owed to him by Individual 1. Ruiz-Reyes also sent threatening messages over social media to Individual 2 regarding the drug debt.
On November 21, 2018, Ruiz-Reyes was arrested in Hanover, Maryland, as he returned to his car in the parking lot of a casino/hotel. Officers executed a search warrant on the vehicle and recovered: the 9mm semi-automatic pistol used in the shooting, as well as spent shell casings from the exterior windshield and floorboard of the car; 20 small bags of crystal methamphetamine, weighing a total of 19.02 grams; a digital scale; empty clear plastic bags; two glass pipes; a knife; and a ski mask.
This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the ATF and Montgomery County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Catherine K. Dick and Leah B. Grossi, who prosecuted the case.
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Member of Violent New Haven Gang Sentenced to More Than 7 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that MICHAEL BELLE, also known as “MB,” 21, of New Haven, was sentenced yesterday by U.S. District Judge Michael P. Shea in Hartford to 87 months of imprisonment, followed by three years of supervised release, for his role in a violent street gang.
According to court documents and statements made in court, in 2016, the New Haven Police Department’s Shooting Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) began investigating numerous unsolved shootings that had occurred in New Haven and Hamden. Ballistic examination of recovered cartridge cases determined that three firearms were used in 18 shootings committed in or around New Haven in 2016. The investigation revealed that the firearms were possessed by members and associates of the Goodrich Street Boys (“GSB”), a New Haven street gang, and that GSB members also were involved in a number of other shootings in 2016, many of them retaliatory against rival gang members.
On August 3, 2017, a grand jury in New Haven returned a 13-count indictment charging Belle and five other GSB members with racketeering, attempted murder, firearm and narcotics trafficking offenses. The indictment alleged that, between September 2015 and May 2016, GSB members and associates were involved in six gang-related shootings that caused injuries to five individuals.
Belle previously pleaded guilty to one count of conspiracy to engage in a pattern of racketeering activity and admitted that he and other GSB members conspired to kill an individual who they believed had been disrespectful to a GSB member. On May 27, 2016, GSB members ambushed the individual and his friend as the pair were walking on a busy street in New Haven. The individual, who survived the attack, identified GSB member Milton Westley as an assailant. Westley, also known as “Reese,” shot the victim in the stomach. After the victim collapsed to the ground, Westley stood over him and shot him in the head. Another GSB member shot the second victim in the hand as he attempted to shield his face.
The victim who was shot in the stomach and head continues to recover from his injuries. He was in coma for several weeks and had to learn to walk and talk again.
This victim had been shot at by GSB members twice prior to May 27, 2016, including once by Belle in January 2016.
Belle was also present at the attempted murder of a rival gang member on January 23, 2016. On that date, a GSB member recorded cell phone video of nine shots being fired at the rival gang member’s house.
GSB members also shot at rival gang members on February 6, 2016, in a densely populated residential area; March 13, 2016, during a heavily attended St. Patrick’s Day parade in downtown New Haven; and June 21, 2016, during which an innocent bystander was shot in the stomach through her bedroom window.
GSB members also used social media to post pictures and videos of themselves with firearms, and used social media to threaten rivals, including individuals who might cooperate with law enforcement.
The investigation further revealed that Belle and other GSB members were involved in the acquisition and distribution of heroin, cocaine and marijuana.
Belle has been detained since his arrest on August 9, 2017.
Westley and the four other defendants pleaded guilty to various charges. Westley awaits sentencing.
U.S. Attorney Durham noted that federal law prohibits any retaliation against a federal witness. If persons retaliate against a federal witness “because of attendance at or testimony in a criminal case, the maximum term of imprisonment which may be imposed for the offense under this section shall be the higher of that otherwise provided by law or the maximum term that could have been imposed for any offense charged in that case.” Because the maximum term charged in the case was life imprisonment, anyone who tampers with a federal witness in this case faces life imprisonment.
U.S. Attorney Durham further noted that this prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN) program and Project Longevity. PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone. Project Longevity is a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it.
This investigation is being conducted by ATF and the New Haven Police Department. The FBI, Hamden Police Department and New Haven State’s Attorney’s Office have provided critical assistance in the investigation.
An instrumental component of this investigation has been the work of the Connecticut State Crime Laboratory in utilizing the National Integrated Ballistic Information Network (NIBIN) to analyze ballistics evidence.
This matter is being prosecuted in the District of Connecticut by Assistant U.S. Attorneys Peter D. Markle, Rahul Kale and Jocelyn Courtney Kaoutzanis.
Man Found Guilty After 2-Day Jury TrialRead the Press Release
FORT WAYNE – Odonis Parker, age 29, was found guilty of being a felon in possession of a firearm in a 2-day jury trial before U.S. District Court Judge Damon Leichty, announced U.S. Attorney Kirsch.
According to documents in this case, Mr. Parker was in possession of a firearm on May 26, 2019 after being a twice convicted felon in Allen County Superior Court. His prior felonies were for Robbery and Theft on separate occasions.
The case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Fort Wayne Police Department. The case was handled by Assistant United States Attorney Stacey R. Speith.
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Magoffin County Nurse Sentenced to 24 Months for Tampering with Hospital MedicationRead the Press Release
PIKEVILLE, Ky. - A Salyersville, Kentucky, woman, Kelsie Spencer, 25, was sentenced to 24 months in federal prison by United States District Judge Robert Wier on Tuesday, following her conviction for tampering with a controlled substance.
According to Spencer’s plea agreement, while working as a nurse at Paul B. Hall Regional Medical Center, she removed vials of butorphanol tartrate (Stadol) from the drug supply area of the hospital, for her own personal use. Spencer then injected a saline solution back into the vials, in order to conceal her criminal activity. In her plea agreement, Spencer acknowledged that she acted with reckless disregard for the risk that another person would be placed in danger of death or bodily injury, if health care personnel had attempted to utilize these altered drugs on a patient that actually needed them.
Spencer pleaded guilty in July 2019.
Under federal law, Spencer must serve 85 percent of her prison sentence and will be under the supervision of the U.S. Probation Office for three years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Mark S. McCormack, Special Agent in Charge for the Food and Drug Administration – Office of Criminal Investigations; and Commissioner Richard Sanders, Kentucky State Police, jointly announced the sentence.
The investigation was conducted by the U.S. Food and Drug Administration, Office of Criminal Investigations and the Kentucky State Police. The United States was represented by Assistant U.S. Attorneys William S. Dotson and Andrew Trimble.
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Local man pleads guilty to sexually abusing toddlers while registered as sex offenderRead the Press Release
DAYTON – A Dayton registered sex offender has pleaded guilty to producing child pornography through the sexual abuse of two toddlers.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Joseph M. Deters, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Dayton Police Chief Richard S. Biehl and Montgomery County Prosecutor Mathias H. Heck, Jr. announced the plea entered into on Oct. 28 before U.S. District Judge Walter H. Rice.
According to court documents, Tyler Ulm, 24, created child pornography by sexually abusing a two-year-old boy and a three-year-old boy over the course of a year. He abused the two-year-old on at least five occasions at various locations in the Dayton area and the three-year-old at least twice at Ulm’s Dayton residence.
Ulm produced at least seven videos and 58 pictures of the sexual abuse.
The plea agreement contemplates a sentence of 50 years to life in prison. The plea is a global resolution that also involves state charges arising out of the Montgomery County Court of Common Pleas.
Ulm pleaded guilty to two counts of producing and one count of distributing child pornography, as well as committing a felony offense involving a minor while being required to register as a sex offender. He also accepted responsibility of his state charges, including two counts of rape of a person under 10 years of age, two counts of rape of a person under 10 years of age by force and two counts of gross sexual imposition of a person under 13 years of age.
Ulm was indicted by a federal grand jury in March 2018.
U.S. Attorney Glassman commended the investigation of this case by the FBI and Dayton Police Department. Assistant United States Attorney SaMee Harden is prosecuting the federal case and Montgomery County Assistant Prosecuting Attorneys Kelly D. Madzey and Jonathan W. Sauline are handling the state charges.
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Lexington Man Pleads Guilty to Trafficking Crack CocaineRead the Press Release
FRANKORT, Ky.- A Lexington, Kentucky, man admitted in federal court Wednesday that he trafficked 28 grams or more of crack cocaine.
Devaun Laquis Robertson, 27, pleaded guilty today to possession with intent to distribute cocaine base (crack cocaine) before U.S. District Court Judge Gregory VanTatenhove.
According to Robertson’s plea agreement, in March 2019, Lexington Police searched his residence and found a digital scale with residue. In the plea agreement, he admitted also the officers then searched Robertson’s vehicle and found 39.446 grams of crack cocaine. Robertson admitted that he knowingly and intentionally possessed with intent to distribute the crack cocaine found in his vehicle.
Robertson was indicted in August 2019.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Chief Lawrence Weathers of the Lexington Police Department, jointly announced the guilty plea.
The investigation was conducted by Lexington Police Department. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Cynthia T. Rieker.
Robertson is scheduled to be sentenced on March 4, 2020. He faces up to 40 years in prison and a maximum fine of $5 million. However, any sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The PSN program was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Leader of drug trafficking organization sentenced to 30 years in prisonRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today that Ricardo Ochoa-Beltran, 30, of San Mateo, California was sentenced to 30 years in federal prison by U.S. District Judge Tanya Walton Pratt. Ochoa-Beltran was the leader of a drug trafficking and money laundering organization that operated out of California and Indiana to distribute methamphetamine, heroin, and cocaine in the Indianapolis area from early 2016 to Ochoa-Beltran’s arrest on July 17, 2017. Ochoa-Beltran previously pleaded guilty to charges of drug trafficking and money laundering.
“Members of drug trafficking organizations, such as the one led by Ochoa-Beltran, who choose to peddle drugs into Indianapolis neighborhoods will be identified and prosecuted to the full extent of the law,” said Minkler. “The U.S. Attorney’s Office is committed to prosecuting those individuals involved in drug trafficking organizations and dismantling those organizations in an effort to keep our communities safe.”
Ochoa-Beltran’s drug trafficking organization obtained drugs in various ways, including via packages shipped from California to Indiana. Law enforcement intercepted hundreds of thousands of dollars’ worth of controlled substances over the course of their two-year investigation. Ochoa-Beltran laundered the funds generated by the drug trafficking organization by funneling drug proceeds through 30 different individual bank accounts, sending international wire transfers to Mexico (primarily, Sinaloa) using false sender names through InterCambio Express wire transfers, and by smuggling cash in bulk across the country.
This case was the result of an investigation by the Drug Enforcement Administration (DEA), Internal Revenue Service Criminal Investigation (IRS), and the Metro Drug Task Force.
“The sentencing of Ochoa-Beltran to 30 years in federal prison puts all violent drug trafficking organizations on notice that they will be held accountable for their disgraceful conduct and illegal activities,” said DEA Assistant Special Agent in Charge Michael Gannon. “Throughout the course of this investigation, agents seized over 20 firearms and multiple pounds of methamphetamine from Ochoa-Beltran and his associates. DEA remains committed to protecting fellow Hoosiers by relentlessly pursuing drug dealers who prey on our communities. DEA would like to thank their state, local, and federal partners for dismantling this highly sophisticated organization. Today, Mr. Ochoa-Beltran paid a debt no drug dealer ever wants to pay; he lost his freedom!”
“The laundering of illegal drug profits is as important and essential to drug traffickers as the very distribution of their illegal drugs,” said Kathy A. Enstrom, IRS-CI Special Agent in Charge, Chicago Field Office. “Without these ill-gotten gains, the traffickers could not finance their organizations. IRS Criminal Investigation is proud to provide its financial expertise as we work alongside our law enforcement partners to bring criminals to justice.”
According to Assistant United States Attorneys M. Kendra Klump and Lawrence D. Hilton, who prosecuted this case for the government, Ochoa-Beltran will serve five years of supervised release following his imprisonment.
The remaining defendants were sentenced as follows: Joel Alvarado-Santiago, 90 months; Miguel Lara-Leon, 260 months; Angelica Guzman-Cordoba, 240 months; Cesar Salgado, 140 months; Megan Castleton, 90 months; Bryan Stocker, 60 months; Lissa Garcia, 46 months; and Roberto Martinez-Hernandez, 18 months’ imprisonment.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting transnational drug-trafficking organizations that threaten the Southern District of Indiana. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 3.1.
Las Vegas, Nevada Man Pleads Guilty to Role in Million Dollar Scheme Targeting Thousands of U.S. Servicemembers and VeteransRead the Press Release
In San Antonio, 38-year-old Fredrick Brown, a former civilian medical records administrator for the U.S. Army at the 65th Medical Brigade, Yongsan Garrison, South Korea, admitted his role in an identity-theft and fraud scheme that victimized thousands of U.S. servicemembers and veterans, announced U.S. Attorney John F. Bash, Deputy Assistant Attorney General David Morrell, and Director Gustav Eyler of the Department of Justice’s Consumer Protection Branch.
Appearing before U.S. Magistrate Judge Richard Farrer yesterday, Brown pleaded guilty to one count of conspiracy to commit wire fraud and one count of conspiracy to launder monetary instruments. By pleading guilty, Brown admitted that from July 2014 to September 2015, he stole personal identifying information (PII) of thousands of military members, including names, social security numbers, DOD ID numbers, dates of birth, and contact information. Brown admitted to capturing the PII by taking digital photographs of his computer screen while he was logged into the Armed Forces Health Longitudinal Technology Application. Brown further admitted that he subsequently provided that stolen data to co-defendant Robert Wayne Boling, Jr. so that Boling and others could exploit the information in various ways to access Department of Defense and Veterans Affairs benefits sites and steal millions of dollars.
Brown faces up to 20 years in federal prison for each conspiracy charge. He remains in federal custody awaiting sentencing scheduled for 10:30am on February 6, 2020, before Chief U.S. District Judge Orlando Garcia in San Antonio.
As asserted in the indictment, Boling (U.S. citizen), together with his Philippines-based co-defendants Allan Albert Kerr (Australian citizen) and Jongmin Seok (South Korean citizen), specifically used the stolen information to compromise a Department of Defense portal designed to enable military members to access benefits information online. Once through the portal, the defendants are alleged to have accessed benefits information. Access to these detailed records enabled the defendants to steal or attempt to steal millions of dollars from military members’ bank accounts. The defendants also stole veterans’ benefits payments. After the defendants had compromised military members’ bank accounts and veterans’ benefits payments, Boling allegedly worked with co-defendant Trorice Crawford to recruit individuals who would accept the deposit of stolen funds into their bank accounts and then send the funds through international wire remittance services to the defendants and others. Evidence of the defendants’ scheme was detected earlier this year, advancing the investigation that led to the indictment.
The Departments of Defense and Veterans Affairs are coordinating with the Department of Justice to notify and provide resources to the thousands of identified victims. Announcements also will follow regarding steps taken to secure military members’ information and benefits from theft and fraud.
Boling, Crawford, Kerr and Seok are charged with multiple counts of conspiracy, wire fraud, and aggravated identity theft. Crawford remains in federal custody pending resolution of this litigation. Boling, Kerr and Seok are in custody in the Philippines awaiting transfer to the Western District of Texas.
It is important to note that an indictment merely alleges that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The United States is represented by Trial Attorneys Ehren Reynolds and Yolanda McCray Jones of the Department of Justice’s Consumer Protection Branch and Assistant U.S. Attorney Joseph Blackwell of the U.S. Attorney’s Office for the Western District of Texas. The matter was investigated by agents of the Defense Criminal Investigative Service, and counsel Matthew Freund, along with substantial investigative support from the U.S. Postal Inspection Service, the U.S. Army Criminal Investigation Command, and the Veterans Benefits Administration’s Benefits Protection and Remediation Division. The U.S. Department of State’s Diplomatic Security Service, Philippine law enforcement partners, and the U.S. Attorneys’ Offices for the District of Nevada, the Southern District of California, and the Eastern District of Virginia also provided assistance. Resources from the Department of Justice’s Servicemembers and Veterans Initiative and its Transnational Elder Fraud Strike Force aided in the matter’s investigation and prosecution.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, this past March, the Department announced the largest elder fraud enforcement action in American history, charging more than 260 defendants in a nationwide elder fraud sweep. The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
Additional information about the Consumer Protection Branch and its enforcement efforts can be found at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Western District of Texas, visit its website at https://www.justice.gov/usao-wdtx. Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice; information on the Servicemember and Veterans Initiative is at https://www.justice.gov/servicemembers.
Kittery Man Pleads Guilty to Child Sexual Exploitation OffenseRead the Press Release
Portland, Maine: A Kittery man pleaded guilty today in federal court in Portland to transporting images of child exploitation, U.S. Attorney Halsey B. Frank announced.
According to court records, in September 2018, Thomas Stewart, 31, uploaded numerous images of minors engaged in sexually explicit conduct to a Dropbox cloud storage account he controlled. After Dropbox reported the uploading of child exploitation images using its service, investigators determined that the IP address used to log into the Dropbox account was assigned to Stewart’s residence in Kittery.
In December of last year, investigators executed a search warrant at Stewart’s residence and seized several electronic devices, including a Samsung tablet. In an interview with investigators, Stewart admitted using the tablet to access child pornography. He also admitted storing hundreds of child pornography files in his Dropbox account.
Stewart faces a sentence of no less than five years and up to 20 years in prison. He also faces a $250,000 fine and from five years to a lifetime of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The Maine State Police Computer Crimes Unit, the U.S. Secret Service and the Naval Criminal Investigative Service investigated this case. The 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. 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.justice.gov/psc.