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30 October 2019
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.
Kansas Woman Sentenced for Scamming Homeowners Facing ForeclosureRead the Press Release
KANSAS CITY, KAN. – A Kansas woman was sentenced today to a year and a day in prison for swindling homeowners facing foreclosure with false promises to help them save their homes, U.S. Attorney Stephen McAllister said.
Ruby Price, 74, Bonner Springs, Kan., pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud. Price was a managing partner of Arize Group, a company based in Overland Park, Kan. She and co-defendants took money from distressed homeowners by fraudulently promising to:
- Lower their interest rates.
- Lower their monthly payments
- Help them obtain loan modifications.
McAllister commended the U.S. Department of Housing and Urban Development - Office of Inspector General, the Federal Housing Finance Agency – Office of Inspector General, the Johnson County District Attorney’s Office, Special Assistant U.S. Attorney Emilie Burdette and Assistant U.S. Attorney Jabari Wamble for their work on the case.
Justice Department Requires Divestiture to Resolve Antitrust Concerns in Symrise's Acquisition of IDF and ADFRead the Press Release
The Department of Justice announced today that it will require Symrise AG to divest its chicken-based food ingredient manufacturing facility in Banks County, Georgia, in order to proceed with its proposed $900 million acquisition of International Dehydrated Foods LLC (IDF) and American Dehydrated Foods LLC (ADF) from IDF Holdco Inc. and ADF Holdco Inc.
The Justice Department’s Antitrust Division filed a civil antitrust lawsuit in the U.S. District Court for the District of Columbia to block the proposed merger. At the same time, the Division filed a proposed settlement that, if approved by the court, would resolve the Department’s competitive concerns.
“This structural solution ensures that American consumers will continue to benefit from vigorous competition for a critical input used in everyday consumer staples like chicken soup, chicken broth and pet food,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “Today’s settlement fully preserves competition in the sale of chicken-based food ingredients.”
According to the complaint, without the divestiture, the combined company would control over 75 percent of the domestic market for the manufacture and sale of chicken-based food ingredients. These ingredients are derived from chicken and sold to food manufacturers for use in a variety of human and pet food products. Without the required divestiture, the combined company likely would have been able to increase prices, reduce service and quality, and diminish innovation in the market for chicken-based food ingredients.
The divestiture required under the settlement would, if approved by the court, require Symrise to sell its brand-new facility in Banks County, Georgia, to Kerry Inc. or an alternate acquirer approved by the United States. Kerry is a global manufacturer of ingredients and recipe solutions for the food and beverage industry. This divestiture ensures that the buyer of the Banks County facility will be well positioned to compete vigorously with the merged company in the manufacture and sale of chicken-based food ingredients in the United States.
Symrise AG is a publicly listed company headquartered in Holzminden, Germany, with diversified operations in multiple lines of business. It manufactures and sells chicken-based food ingredients through its Diana Food and Diana Pet Food subsidiaries. In 2018, Symrise reported total revenue of approximately $3.5 billion.
IDF and ADF are privately held companies headquartered in Springfield, Missouri, whose operations include two chicken-based food ingredient plants in Alabama and Missouri. The companies’ combined 2018 revenue for chicken-based food ingredients used in human and pet food manufacturing was approximately $177 million.
As required by the Tunney Act, the proposed settlement and the Department’s competitive impact statement will be published in the Federal Register. Any person may submit written comments by mail concerning the proposed settlement within 60 days of its publication to Robert Lepore, Acting Chief, Transportation, Energy and Agriculture Section, Antitrust Division, U.S. Department of Justice, 450 Fifth St. N.W., Suite 8000, Washington DC 20530, telephone: 202-307-6349. At the conclusion of the 60-day comment period, the court may enter the final judgment upon a finding that it serves the public interest.
Justice Department Files Suit Against Walmart Inc. to Enforce Employment Rights of Naval ReservistRead the Press Release
The Department of Justice filed a complaint today in the United States District Court for the District of Colorado on behalf of Naval Petty Officer Third Class Lindsey Hunger against Walmart Inc. The complaint alleges that Walmart violated the law when it declined to hire Hunger due to her upcoming naval reserve duties.
“Servicemembers risk their lives to protect all of us. They deserve our full support, and the law does not permit employers to use military service as a reason to deny servicemembers jobs and other employment opportunities,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “Defending servicemembers is very important, and the U.S. Department of Justice will continue aggressively to enforce the Uniformed Services Employment and Reemployment Rights Act and other federal laws that protect servicemembers.”
“The members of our Armed Forces routinely make personal sacrifices to protect our nation. The least we can do as a nation is ensure they aren’t discriminated against for making these sacrifices,” said U.S. Attorney Jason R. Dunn of the District of Colorado. “When such discrimination does occur, this office and the Department of Justice will step in to right that wrong.”
Hunger alleges that in May 2016 she applied for a summer job at Walmart while she was a member of the United States Naval Reserve. After applying online, she received a call from Walmart’s personnel coordinator for the Walmart located at 2545 Rimrock Avenue in Grand Junction, Colorado. At the end of the call, Hunger mentioned that she was required to complete a mandatory two-week annual training for her Navy Reserve duty during the summer. The Personnel Coordinator responded by telling Hunger that Walmart could not support that time off, and ended the call. Walmart never called Hunger again about her application for employment. Hunger, who was supporting two young children at the time, could not find other employment in Grand Junction during the summer and fall of 2016.
The lawsuit alleges that Walmart’s conduct violated the Uniformed Services Employment and Reemployment Rights Act of 1994, which was passed 25 years ago to protect the rights of servicemembers. The law, known as USERRA, protects servicemembers from discrimination in employment because of their service to their country in any branch of the military. This lawsuit stems from a referral to the United States Department of Justice from the United States Department of Labor, after an investigation by the Department of Labor’s Veterans’ Employment and Training Service.
The Justice Department gives high priority to the enforcement of servicemembers’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s websites at www.justice.gov/crt-military/employment-rights-userra and www.justice.gov/servicemembers as well as on the Department of Labor’s (DOL) website at www.dol.gov/vets/programs/userra.
This case is being handled by Assistant U.S. Attorney Zeyen Wu in the U.S. Attorney’s Office for the District of Colorado.
Jefferson County woman admits to role in drug distribution operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Sandra Aramburo, of Ranson, West Virginia, has admitted to her role in a drug distribution operation, U.S. Attorney Bill Powell announced.
Aramburo, age 37, pled guilty to one count of “Unlawful Use of Communication Facility.” Aramburo admitted to using a phone to arrange and collect money for the sale of cocaine hydrochloride in November 2018 in Jefferson County.
Aramburo faces up to four years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
These charges are the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
Assistant U.S. Attorney Lara K. Omps-Botteicher, Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, and Assistant U.S Attorney Timothy D. Helman, are prosecuting the case on behalf of the government. The Federal Bureau of Investigation; the West Virginia State Police; the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the Berkeley County Prosecuting Attorney’s Office, the Berkeley County Sheriff’s Office, the Jefferson County Sheriff’s Office, the Martinsburg Police Department, the Charles Town Police Department, and the Ranson Police Department investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Robert W. Trumble presided.
Jamaican National Pleads Guilty to Re-entering the County Illegally After Deportation and Fraudulently Applying for U.S. PassportRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Rohan Maxwell, 45, of Allentown, Pennsylvania today entered a plea of guilty to one count of illegally re-entering the United States after deportation and one count of passport fraud before United States District Judge J. Curtis Joyner.
Maxwell was charged in August 2019 by Superseding Indictment with illegal re-entry after deportation and passport fraud, whereby having been deported to his native Jamaica on three separate occasions in 1997, 1999, and 2004, he submitted an application for a United States passport in 2011 using the identity of another person. The defendant was found in the United States in Lehigh County in July 2019.
“To state the obvious, those who enter our country illegally are not above the law – nobody is,” said U.S. Attorney McSwain. “By his actions, Maxwell has demonstrated a blatant disrespect for our nation’s laws. Not only did he flout our immigration laws, but also he committed an additional fraud to obtain a U.S. passport. We will continue to work with our law enforcement partners to uphold the rule of law and ensure our nation’s immigration laws are enforced.”
The case was investigated by the Diplomatic Security Service and Homeland Security Investigations, and is being prosecuted by Assistant United States Attorney Josh A. Davison.
Inmate pleads guilty to mailing threats to former Ohio attorney general & prisons director, judges, newspapersRead the Press Release
COLUMBUS, Ohio – An Ohio inmate offered a guilty plea in federal court today to writing at least 15 threatening letters containing powder. In some of the letters, he claimed the powder was anthrax or fentanyl or threatened the use of explosive devices.
Sean Heisa, 36, was indicted by a grand jury in May 2019. He pleaded guilty today to making false information or hoaxes and mailing threatening communications.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Joseph M. Deters, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the plea offered before U.S. Magistrate Judge Norah McCann King.
According to court documents, from July 2017 to July 2018, Heisa mailed threatening letters while incarcerated to various officials throughout the state of Ohio.
Heisa mailed a letter to the city manager of Painesville in August 2017 and claimed powder contained within the envelope was anthrax.
In the letter, Heisa described several things that were going to happen: “#1 – You are going to have trouble breathing; #2- You are going to die; #3 – You are going to become a martyr for a cause and an organization far bigger than yourself.”
Likewise, Heisa mailed a second letter that month to a magistrate judge in Whitehall, again claiming the powder contained within the letter was anthrax.
Heisa also threatened via letter officials within the Coshocton Municipal Courthouse, Franklin County Common Pleas Court and then-Ohio Attorney General Mike DeWine through threatened exposure to anthrax and the use of explosive devices.
Other letters threatened to injure recipients – including the former Ohio prisons director, the Columbus Dispatch, the Circleville Herald and The Ohio State University – by exposure to purported fentanyl.
For example, one letter to a Fairfield County Common Pleas Court judge who had presided over several hearings involving Heisa (involving robbery charges for which Heisa is now serving a combined 37-year sentence) stated: “This is enough Fentanyl to kill you and multiple coworker [sic]. You deserve a more painful death but this will do”
Heisa had access to what he believed to be fentanyl in prison and knew that if he could send enough fentanyl that it could kill someone, which is why he referenced it in many of his letters. Heisa chose to get high on the substance instead.
Heisa was charged by criminal complaint in December 2018 and arrested in January 2019.
Creating false information/hoaxes and mailing threatening communications are each federal crimes punishable by up to five years in prison
U.S. Attorney Glassman commended the investigation of this case by the FBI, and Assistant United States Attorney Jessica W. Knight, who is prosecuting the case.
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Illinois Woman Sentenced for Distribution of a Controlled Substance Resulting in DeathRead the Press Release
United States Attorney Ron Parsons announced that a Chicago, Illinois, woman convicted of Distribution of a Controlled Substance Resulting in Death was sentenced on October 28, 2019, by U.S. District Judge Karen E. Schreier.
Stephanie Broecker, age 27, was sentenced to 240 months in federal prison, followed by 3 years of supervised release, $3,655 in restitution, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Broecker was indicted by a federal grand jury on April 4, 2018. She pled guilty on December 10, 2018.
The conviction stemmed from an incident on or about November 16, 2017, when Broecker mailed heroin from Rockford, Illinois, to a drug customer of hers in Fedora, South Dakota, utilizing the U.S. Postal Service. The drug customer received the U.S. Postal parcel that contained the heroin on November 18, 2017, in South Dakota. Witnesses reported that he ingested the heroin from the mail parcel that day and into the early morning hours of November 19, 2017, before dying of a drug overdose on November 19th. The Minnehaha County Coroner determined that man’s death was caused by heroin toxicity.
This case was investigated by the U.S. Postal Service, the Miner County Sheriff’s Office, and the South Dakota Division of Criminal Investigation. Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
Broecker was immediately turned over to the custody of the U.S. Marshals Service.
Healthcare Provider for Children with Autism Agrees to Pay $300,000 to Settle False Claims AllegationRead the Press Release
WICHITA, KAN. – Autism Concepts, Inc., an Overland Park-based provider of therapy services for children with autism, has agreed to pay $300,000 to resolve False Claims Act allegations that it submitted false claims to the TRICARE program, U.S. Attorney Stephen McAllister announced today.
TRICARE is a federal health insurance program for active and retired military service members and their families.
The United States alleged that Autism Concepts, Inc. and its director Nancy Champlin represented in claims to TRICARE that the company provided individual applied behavioral analysis services to children with autism spectrum disorders when the company actually provided the services to groups of children at the same time. TRICARE does not cover the services in a group setting.
Autism Concepts and Champlin agreed to pay $300,000 to resolve the allegations.
“TRICARE providers must comply with program requirements that are designed for effective treatment for children with special and particular needs,” McAllister said. “This office is committed to making sure federal funds are spent as intended, while protecting federally funded programs that make it possible for military families to receive vital services.”
“I applaud the Department of Justice and the U.S. Attorney for their continued efforts to hold health care providers accountable to the American taxpayer,” said Army Lt. Gen. Ronald Place, director of the Defense Health Agency. “The efforts of the Department of Justice safeguard the health care benefit for our service members, veterans and their families. The Defense Health Agency continues to work closely with the Justice Department, and other state and federal agencies to investigate all those who participated in fraudulent practices.”
“As the investigative arm of the Department of Defense - Office of Inspector General (DoDIG), one of the primary missions of the Defense Criminal Investigative Service (DCIS) is the detection of fraud, particularly fraud that targets critical DoD health care funding,” said Special Agent in Charge Michael Mentavlos of the DCIS Southwest Field Office. “Today’s resolution demonstrates our commitment to working with DoDIG’s Deputy Inspector General for Audit as well as the Department of Labor Office of Inspector General and the Employee Benefits Security Administration to ensure federal health care programs, such as TRICARE, are protected from companies and/or individuals who attempt to take advantage of them.”
McAllister commended the Defense Criminal Investigative Service, the U.S. Department of Labor Employee Benefits Security Administration and Assistant United States Attorney Jon Fleenor for their work on the case.
Hamilton Resident Charged with Failure to Register as a Sex Offender, Failure to Appear, Identity Theft, and Bank FraudRead the Press Release
BIRMINGHAM, Ala. – A federal grand jury today indicted a Hamilton resident for failure to register as a sex offender, failure to appear, aggravated identity theft, and bank fraud, all while on release from federal custody, announced U.S. Attorney Jay E. Town and the U.S. Marshal Martin Keely.
A five-count indictment filed in U.S. District Court charges SHANNON LESTER SORRELLS, 40, of Hamilton, with multiple felony offenses committed from June 6, 2019 until September 5, 2019. According to the indictment, Sorrells was convicted on March 14, 2001 of unlawful sexual intercourse with a minor and employment or use of a minor in production of pornography, both under the California Penal Code. From June 12, 2019 to September 5, 2019, while he was on release from federal custody, Sorrells allegedly failed to register and to update his a sex offender registration as required by the Sexual Offender Registration and Notification Act (SORNA). During that time, according to the indictment, Sorrells also failed to surrender for service of a sentence ordered by U.S. District Judge L. Scott Coogler and committed aggravated identity theft and bank fraud.
“Sexual assault of an innocent child is despicable,” Town said. “Every community deserves to know who has harmed a child. And committing a federal offense while on bond can add 10 years to your prison sentence.”
The maximum penalty for failure to register as a sex offender while on release is 20 years in prison, a $250,000 fine, and no less than five years of supervised release. The maximum penalty for failure to appear while on release is 20 years in prison, a $250,000 fine, and no more than three years of supervised release. The maximum penalty for aggravated identity theft while on release is 12 years in prison, a $250,000 fine, and no more than three years of supervised release. The maximum penalty for bank fraud while on release is 40 years in prison, a $1,000,000 fine, and supervised release of no more than five years.
The U.S. Marshals Service investigated the case, which Assistant U.S. Attorney Jonathan S. Keim is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Getaway Driver Found Guilty of Two Armed Robberies in TuscaloosaRead the Press Release
TUSCALOOSA, Ala. – A federal jury today convicted the getaway driver of aiding and abetting in two armed robberies in Tuscaloosa, announced U.S. Attorney Jay E. Town and Bureau of Alcohol Tobacco and Firearms Special Agent in Charge Marcus Watson.
The jury returned its guilty verdict against JEMARKUS VONSHA THOMPSON, 25, of York, Ala., after three days of testimony before U.S. District Judge L. Scott Coogler. The jury found Thompson guilty of two counts of Hobbs Act Robbery and two counts of carrying and brandishing a firearm during and in relation to a violent crime.
“Thompson has been brought to justice and potentially faces decades in a federal prison,” Town said. “These crimes are far too prevalent in the Northern District and thus our local, state and federal law enforcement agencies will remain the phalanx to not only police violent crime, but defeat it.”
“Reducing the potential for violent crime in this case was critical due to ATF partnering with our state, local and federal partners,” Watson said. “ATF’s Crime Gun Intelligence leverages technology to reduce violent firearms related crimes.”
“The Tuscaloosa Police Department has a good working relationship with the ATF and the US Attorney’s Office in cases such as these involving violent gun crimes, and we are glad to partner with them,” said Captain Brad Mason, Tuscaloosa Police Department. “We appreciate the work the ATF and the US Attorney’s Office put into this case, and we know that convicting criminals who perpetrate violent gun crimes will help make our streets safer.”
Evidence at trial proved that on November 26, 2017, Thompson was the driver of the suspect vehicle used to rob the Quick Stop Tobacco and Snack, and Subway in Tuscaloosa, on Old Greensboro Road. Testimony showed that the two co-defendants robbed the two stores at gun point using an assault style rifle, while Thompson remained in the vehicle. Cell phone tower information placed Thompson at the scene of both crimes. Thompson and the two co-defendants were stopped by Tuscaloosa police minutes after the robberies, where evidence of both crimes were found in their possession, including money, receipts, and the firearms.
The maximum penalty for Hobbs Act Robbery is 20 years in prison. Carrying and brandishing a firearm during a crime of violence carries a mandatory sentence of 7 years in prison per count, to be served consecutively to any other sentence imposed for the crime.
ATF investigated the case along with the Tuscaloosa Police Department, which Assistant U.S Attorney Brad Felton and Allison Garnett are prosecuting.
Georgia prison guard convicted of possession of drugs with intent to distributeRead the Press Release
DUBLIN, GA: A Georgia Department of Corrections officer was convicted on federal drug charges after a two-day trial in U.S. District Court.
Lekesia Lashea Harden, 23, of Dublin, was convicted on one count of Possession with Intent to Distribute Marijuana and Methamphetamine, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. The charge carries a minimum sentence of 10 years to life in prison, and includes a period of supervised release after completion of the prison sentence. There is no parole in the federal system.
Harden, who worked as a corrections officer at Wheeler Correctional Facility, a medium-security, privately owned state prison in Alamo, Ga., was indicted along with her boyfriend, Tremayne O. Linder, 30, of Dublin, who recently pled guilty to the same charge.
“A corrections officer undoubtedly understood the potential risk of associating with a convicted felon and engaging in drug trafficking,” said U.S. Attorney Christine. “She now faces substantial time inside a prison cell as the price for her inexcusable violation of the law.”
Officers from the Dublin Police Department and Georgia Department of Community Supervision visited Harden and Linder’s residence April 9, 2018, to serve Linder with an arrest warrant for failing to complete requirements of probation. During a subsequent search of the residence, officers found 12 small packages, two containing methamphetamine and 10 containing marijuana. As noted in court documents and testimony, the marijuana was wrapped in electrical tape with some of the packages containing rolling papers, a sign that the material was packaged for contraband delivery to prison.
“Harden decided that her relationship with a convicted felon was more important than the oath she swore as a corrections officer,” said Special Agent in Charge of FBI Atlanta Chris Hacker. “Unfortunately, her decision taints every law enforcement officer who upholds their oath daily. But they can rest assured that she is being held accountable.”
The case was investigated by the FBI, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Dublin Police Department, and prosecuted for the United States by Special Assistant U.S. Attorney Michael Marchman and Assistant U.S. Attorney Hank Syms.
Georgia pharmacist admits lying about filling prescriptions for high-volume opioid doctorsRead the Press Release
BRUNSWICK, GA: A Darien pharmacist is facing up to five years in prison after admitting that she lied about filling prescriptions for prescribers of high volumes of opioids and other controlled substances.
Janice Ann Colter, 62, of Darien, Ga., entered a guilty plea to one count of False Statements Relating to Health Care Matters, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Colter faces up to five years in prison and substantial fines and restitution, along with three years of supervised release upon completion of any prison sentence. There is no parole in the federal system.
“As the opioid crisis has burned across our nation, unethical medical professionals have poured fuel on the raging fire of addiction,” said U.S. Attorney Christine. “Our office will continue to vigorously prosecute drug dealers who hide behind white coats while profiteering from their greed.”
As part of her guilty plea, Colter, who formerly was the pharmacist-in-charge of Darien Pharmacy, admitted lying about filling prescriptions written by high-volume prescribers of opioids and other controlled substances. According to court documents and testimony, those prescribers included Dr. Frank H. Bynes Jr. of Savannah, recently convicted in U.S. District Court on multiple counts of Unlawful Dispensation of Controlled Substances and Health Care Fraud, and other physicians located as far away as Florida. From 2015 to 2017, Darien Pharmacy received more than one million dosage units of highly addictive opioids from its suppliers.
Colter, along with Darien Pharmacy, also is a defendant in a federal suit filed in August, seeking civil penalties for filling prescriptions for controlled substances that she “knew or should have known were not issued for legitimate medical reasons and by a provider not acting within the regular course of professional practice,” according to the suit.
Robert J. Murphy, the Special Agent in Charge of the Atlanta Field Division of the DEA said, “This pharmacist misled her suppliers to keep open a pipeline to prescribers who were doling out massive amounts of addicting controlled substances. Ms. Colter was not only reckless with regard to the many patients she served, but she also violated the trust of the community she served.”
“Pharmacist Colter placed profit and greed over the health and welfare of her community,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We will continue to work with our law enforcement partners to ensure that tax payer funds are not used to line the pockets of criminals who fuel the opioid crisis.”
The Drug Enforcement Administration and the Health and the Human Services Office of Inspector General investigated the case, and Assistant U.S. Attorney J. Thomas Clarkson prosecuted the case on behalf of the United States.
Ft. Pierre Woman Indicted for Theft of Federal FundsRead the Press Release
United States Attorney Ron Parsons announced today a Ft. Pierre, South Dakota, woman has been indicted by a federal grand jury for Theft from a Program Receiving Federal Funds.
Pamela Duncan, age 52, was indicted on October 16, 2019. She appeared before U.S. Magistrate Judge Mark A. Moreno on October 28, 2019, and pled not guilty to the Indictment. The maximum penalty upon conviction is up to 10 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 between January 2017 and August 2018, while she was employed as an agent of the United Sioux Tribes of South Dakota Development Corporation (USTDC), Duncan did embezzle, steal, obtain by fraud, and intentionally misapply property of USTDC, an organization receiving Federal funds.
The charge is merely an accusation and Duncan is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the U.S. Attorney’s Office. Assistant U.S. Attorney Michael J. Elmore is prosecuting the case.
The case was brought as part of The Guardians Project, a federal law enforcement initiative to coordinate efforts between participating agencies, to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those who are responsible for adversely affecting those living in South Dakota’s Indian country communities. The Guardians Project is another step of federal law enforcement’s on-going efforts to increase engagement, coordination, and positive action on behalf of tribal communities. Led by the U.S. Attorney’s Office, the participating agencies include: Federal Bureau of Investigation; the Offices of Inspector General for the Departments of Interior, Health and Human Services, Social Security Administration, Agriculture, Transportation, Education, Justice, and Housing and Urban Development; Internal Revenue Service, Criminal Investigation Division; U.S. Postal Inspector Service; U.S. Postal Service, Office of Inspector General.
For additional information about the Guardians Project, please contact the U.S. Attorney’s Office at (605) 330-4400. To report a suspected crime, please contact law enforcement at the federal agency’s locally listed telephone number.
Former employee offers guilty plea for defrauding HondaRead the Press Release
COLUMBUS, Ohio – Charles Michael Stratton, 62, of Fairborn, offered a guilty plea in U.S. District Court today to wire fraud and money laundering. Stratton defrauded his former employer, Honda, out of more than $750,000.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Joseph M. Deters, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the plea offered before U.S. Magistrate Judge Norah McCann King.
Stratton served as the Facilities Manager for Honda of America Manufacturing, Inc. in Marysville, from 2008 until March 2015. In his role, he oversaw various vendor contracts, including those for security services, janitorial services, food service and uniform/laundry on behalf of Honda.
Acrux Investigation Agency, located in Lakeview, provided physical and personal security services for Honda. Surmount, also located in Lakeview, was a subsidiary of Acrux and provided monitoring services to Honda.
Stratton executed a scheme to defraud Honda using Acrux and Surmount by creating multiple purchase orders for payments in amounts just under $100,000, a threshold in which additional oversight and approval is required.
Using these purchase orders, as well as the main labor contract, Stratton caused Acrux and Surmount to submit false invoices to Honda and instructed them to keep the money in a “future fund.” Money allocated to the future fund was then used, in part, to pay Stratton directly or through his organization, SAFE. Springfield Area Fastball Elites, Inc. (SAFE) was an Ohio non-profit created by Stratton to support local baseball teams; however, SAFE lost its classification as a 501(c)(3) in 2010.
Stratton also defrauded at least three other Honda vendors through the solicitation of donations for SAFE between 2012 and 2014, when it no longer held its tax-exempt status. Stratton received multiple donation checks, which he would either deposit in part to the SAFE bank account, while keeping a portion of the donation in cash for himself, or deposit the donation check entirely into his personal account. Only a fraction of the funds received through donations were actually spent in furtherance of SAFE’s mission.
Stratton was indicted by a grand jury in May 2018. Wire fraud is punishable by up to 20 years in prison and money laundering carries a potential maximum sentence of 10 years in prison.
As part of his plea, Stratton agrees to pay $750,635.95 in restitution to Honda and $10,000 in restitution to Scioto Industrial Services.
U.S. Attorney Glassman commended the investigation of this case by the FBI, and Assistant United States Attorneys Jessica W. Knight and Peter K. Glenn-Applegate, who are prosecuting the case.
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Former Wells Fargo Banker Pleads Guilty for Involvement in Movie Financing Fraud SchemeRead the Press Release
A former South Florida banker pled guilty today in connection with a scheme to steal over $60 million from investors and producers seeking financing for motion pictures and theater performances.
U. S. Attorney Ariana Fajardo Orshan for the Southern District of Florida and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
Benjamin Rafael, 30, of South Florida, admitted his role in the sophisticated fraud scheme during a change-of-plea hearing before U.S. District Judge Ursula M. Ungaro. Rafael pled guilty to one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349 (Case No. 19-CR-20447). Rafael faces a maximum possible sentence of twenty years in prison.
According to the indictment, Rafael’s co-defendants Benjamin McConley and Jason Van Eman held themselves out as film producers and financiers. In those roles, McConley and Van Eman offered to provide financing to investors and producers seeking funds to produce motion pictures, theater performances, and other projects. The indictment charges that McConley and Van Eman promised the victims that, in exchange for the victims’ cash contribution, McConley would match the contribution and use the combined funds to secure financing from financial institutions in South Florida and elsewhere.
According to the indictment, victims sent tens of millions of dollars to accounts controlled by McConley and Van Eman based on these false representation and promises. In truth, McConley never “matched” the victims’ contributions as promised in the funding agreements.
Instead of fulfilling their promises to victims, McConley and Van Eman allegedly stole the victims’ money by transferring the funds to their personal and corporate bank accounts, often within days of the victims’ contributions or loans.
In furtherance of the scheme, McConley and Van Eman convinced Rafael, a then-Wells Fargo Bank employee, to deceive victims about the security of their funds. During the course of the scheme, McConley and Van Eman repeatedly directed Rafael to falsely assure victims that their contributions or loans had been “matched” as promised in the funding agreements.
Following Rafael’s termination from Wells Fargo Bank in June 2015, Rafael, McConley, and Van Eman repeatedly lied to victims by assuring them that Rafael was still a bank employee.
During the course of the scheme, Rafael and his co-defendants also created and transmitted via e-mail, and through other means, false and fraudulent bank documents, including purported bank letters, including forged “proof-of-funds” letters, account signature cards, and deposit account balance summaries.
McConley previously pled guilty for his involvement in the fraud scheme and is scheduled to be sentenced on Jan. 17, 2020, at 1:30 p.m.
Van Eman is scheduled for trial on Feb. 18, 2020, before Judge Ungaro. He is presumed innocent of the charged conduct.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI Miami Field Office. The case is being prosecuted by Assistant U.S. Attorneys Christopher Browne and Maurice Johnson. Assistant U.S. Attorney Adrienne Rosen is responsible for the asset forfeiture component of the case.
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.
Former Union General Hospital CEO and Blairsville doctor convicted of illegally prescribing and obtaining more than 15,000 pain pills from pharmacies in three statesRead the Press Release
GAINESVILLE, Ga. - John Michael “Mike” Gowder and James Heaton have been convicted after a two-week jury trial on 102 counts related to illegally prescribing and obtaining more than 15,000 doses of prescription pain medications outside the usual course of professional practice and for no legitimate medical purpose. In addition, Heaton was convicted of 27 counts of issuing prescriptions to two female patients outside the usual course of professional medical practice and for no legitimate medical purpose.
“When doctors prescribe opioids outside of the applicable rules, they are nothing but drug traffickers with a medical degree,” said U.S. Attorney Byung J. “BJay” Pak. “Therefore, we will accordingly treat them as such.”
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Division stated, “Pharmaceutical products that are distributed for non-medical reasons can be just as deadly as illicit drugs. The defendants in this case distributed vast quantities of pharmaceutical products and had ill-will and total disregard for human life. This conviction should serve as a reminder to all drug traffickers, including those with medical degrees, that DEA and its law enforcement partners will expend the necessary resources to disrupt and destroy those who distribute poison throughout our communities. This is a perfect example of the success that can be accomplished when federal, state and local resources are combined.”
“This is a very substantial victory in the battle against opioid use in our communities. It goes to show what can be accomplished when the DEA and local law enforcement work together. Drugs know no boundaries including state lines. I am very grateful for our relationship with Union County and the DEA,” said Derrick Palmer, Sheriff, Cherokee County, North Carolina.
According to U.S. Attorney Pak, the charges and other information presented in court: From 2011 to 2016 Mike Gowder was the Chief Operating Officer and later Chief Executive Officer of Union General Hospital in Blairsville, and Dr. James Heaton operated a family practice clinic in Blairsville, Georgia, and worked as the Medical Director of the Nursing Home of Union General Hospital.
During that time, Dr. Heaton illegally prescribed increasing quantities of hydrocodone and oxycodone to Mike Gowder, knowing that the prescriptions were issued outside the usual course of professional practice and that the pills obtained with the prescriptions had no legitimate medical purpose. Dr. Heaton violated numerous standards of medical practice by prescribing the pills to Mike Gowder without adequately documenting the medical need for the prescriptions in his patient file and without monitoring patient abuse of the pills he obtained. During the three and half years in which Dr. Heaton prescribed more than 15,000 hydrocodone and oxycodone pills to Mike Gowder, Dr. Heaton only six of the prescriptions were recorded in his patient file for Mike Gowder.
Starting in 2012, Mike Gowder obtained oxycodone by fraud, subterfuge, and deception by filling the illegal prescriptions that Dr. Heaton issued for oxycodone at different pharmacies in Georgia, Tennessee, and North Carolina in an effort to conceal the large numbers of pills that Dr. Heaton was prescribing to him.
Between January 5, 2012, and June 16, 2015, Dr. Heaton wrote at least 95 illegal prescriptions for hydrocodone and oxycodone to Mike Gowder. In addition to filling the prescriptions at pharmacies in Georgia, Mike Gowder often travelled to North Carolina and Tennessee to fill multiple prescriptions a month at pharmacies in those states. On multiple occasions, Dr. Heaton wrote two prescriptions for oxycodone for Mike Gowder on the same day. On other occasions, Mike Gowder would travel to North Carolina to fill one prescription and Tennessee to fill the second prescription to conceal the fact that multiple prescriptions were written to him on the same day.
In addition, Dr. James Heaton issued prescriptions hydrocodone, oxycodone, and methadone to two female patients outside the usual course of professional practice and without a legitimate medical purpose.
Oxycodone, hydrocodone, and methadone are powerful pain medications that are listed as controlled substances under federal law because each has a high potential for psychological and physical abuse and dependence. Oxycodone, which may be combined with acetaminophen, is sold generically under brand names including Percocet, Endocet, Oxycontin, and Roxicodone. Hydrocodone is sold generically or under brand names including Lortab, Vicodin, and Norco. Methadone is an opioid pain medication that is also used in opioid dependence therapy.
On March 15, 2019, Dr. George David Gowder pleaded guilty to a single count of the superseding indictment in this case for illegal dispensing medications outside the scope of professional practice and without a legitimate medical purpose. Sentencings for John Michael “Mike” Gowder, 61, of Nashville, Tennessee, and James Heaton, 63, of Blairsville, Georgia, have not yet been scheduled.
The Drug Enforcement Administration, the Union County (Georgia) Sheriff's Office, Cherokee County (North Carolina) Sheriff’s Office, Georgia Drugs and Narcotics Agency, and Zell Miller Mountain Parkway Drug Task Force are investigating this case.
Assistant U.S. Attorneys William McKinnon and Laurel R. Boatright are prosecuting the case.
This case was brought as part of Operation SCOPE, Strategically Combatting Opioids through Prosecution and Enforcement. SCOPE is our initiative combining our efforts (criminal, civil, and educational) with those of our law enforcement partners to create one unified front in the battle against the opioid/heroin epidemic. One important aspect of Operation SCOPE is to prosecute those who are illegally prescribing, or distributing, painkillers.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
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.
Former Office Manager Charged with Scheme to Defraud Law FirmRead the Press Release
WASHINGTON – The former office manager of a Virginia law firm has been charged in an indictment unsealed today for her role in a scheme to have money sent to her personal bank accounts from the Law Firm’s bank account.
The indictment was announced by U.S. Attorney Jessie K. Liu, and Timothy M. Dunham, Special Agent in Charge, Criminal Division, FBI Washington Field Office.
Dionne Castro, aka Trinity Castro, 42, previously a resident of Virginia, was indicted by a grand jury on four counts of wire fraud. The four-count indictment was returned in the United States District Court for the Eastern District of Virginia in 2016 and ordered unsealed today.
The indictment alleges that Castro, who was formerly employed as the office manager, was solely responsible for payroll administration and bank statement reconciliation, including submitting payroll requests to the Law Firm’s account at the bank. She was also responsible for the firm’s accounting books and records and made internal entries in the firm’s QuickBooks accounting software.
As alleged in the indictment, starting in 2009 and continuing through 2011, Castro devised a scheme to obtain money and property by false pretenses, representations, and promises, from the law firm by causing money to which she was not entitled to be sent to her personal bank account from the law firm’s bank account. Castro submitted fraudulent payroll requests to the law firm’s bank account, which caused funds to be dispersed by the law firm’s account to Castro’s bank accounts in Florida and Pennsylvania. Castro also falsified the law firm’s QuickBooks accounting records to conceal her fraud and embezzlement to enrich herself.
The charge of wire fraud carries a statutory maximum of 20 years in prison and potential financial penalties.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
This case is being investigated by the FBI’s Washington Field Office. Assistant U.S. Attorney Peter Lallas of the U.S. Attorney’s Office for the District of Columbia is prosecuting the case.
Former Head Nurse at Rockbridge Regional Jail Convicted of Falsifying DocumentsRead the Press Release
Lynchburg, VIRGINIA – Gary Hassler, the former head nurse at Rockbridge Regional Jail, was sentenced yesterday to 12 months and one-day in prison for falsifying documents in order to impede a federal investigation into civil rights abuses at the facility, First Assistant United States Attorney Daniel P. Bubar announced.
“This prison sentence should send a strong reminder that those in a position of public trust must provide accurate information and there are consequences for interfering with a federal investigation,” First Assistant Bubar said. “The FBI, Virginia State Police, and Office of the Rockbridge County Commonwealth’s Attorney should be commended for their hard work in bringing this case to justice.”
Hassler, 59, of Buena Vista, Va., was indicted in August 2018 and charged with two counts of falsifying documents in order to impede a federal investigation. At trial in July 2019, a jury convicted Hassler of one count of impeding a federal investigation into civil rights violations at the Rockbridge Regional Jail by falsifying a document. Evidence at trial showed that on March 5, 2017, Hassler falsified a document to claim an inmate at the jail refused medical care.
The investigation of the case was conducted by the Federal Bureau of Investigation and the Virginia State Police. The Commonwealth Attorney’s Office for Rockbridge County assisted with the investigation. Assistant United States Attorneys Zachary T. Lee and Matthew Miller prosecuted the case for the United States.
Florida Man and Canadian National Plead Guilty to Hacking/Extortion ConspiracyRead the Press Release
SAN JOSE – Brandon Charles Glover and Vasile Mereacre pleaded guilty in federal court today to their respective roles in an extortion conspiracy involving a plot to extract bounties from victim corporations in exchange for the defendants’ promise to delete stolen confidential data, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The defendants admitted making extortion demands of several victim corporations including Uber and LinkedIn. The plea was accepted by the Honorable Lucy H. Koh, United States District Judge.
In pleading guilty, Glover, 26, of Winter Springs, FL, and Mereacre, 23, of Toronto, Canada, admitted that from October 2016 through January 2017, they engaged in a conspiracy to use stolen credentials to gain access to confidential corporate databases being stored on Amazon Web Services, a cloud-based storage platform After downloading confidential information from Amazon Web Services accounts belonging to the victim-corporations, Glover and Mereacre notified the victim corporations that they had found vulnerabilities in the corporations’ employees’ use of the systems. The defendants then demanded money in exchange for deleting the stolen data.
“Companies like Uber are the caretakers, not the owners, of customers’ personal information,” said U.S. Attorney Anderson. “What gets stolen in a computer extortion belongs to your neighbors, not to yourselves. Don’t be so concerned with your image or reputation. Be concerned with the real losses others have suffered. Report the intrusion promptly. Cooperate with law enforcement.”
“We’re dealing with the most sophisticated cyber actors in the world,” said FBI Special Agent in Charge Bennett. “In order to take on those people on the front lines of the cyber security battle, we rely heavily on our valued relationships and open dialogue with private sector companies in cyber industries. Their willingness to speedily report intrusions to our investigators allows us to find and arrest those who commit data breaches.
To induce payments, the defendants used an alias and an encrypted email account to contact the victim corporations and report that their data was vulnerable. The defendants sent a sample of the stolen data to the corporations as proof their systems had been breached and then demanded payment in exchange for deletion of the data.
The plea agreements describe in some detail the defendants’ communications with two companies: Uber and Lynda.com. With respect to Uber, defendants admitted they provided credentials regarding Uber’s Amazon Web Services account to a “technically proficient hacker.” The hacker identified archive files that contained 57 million Uber user records consisting of customer data and driver data. Defendants admitted they illegally accessed and downloaded the records from Amazon Web Services and, on November 14, 2016, contacted Uber claiming to have found a major vulnerability in Uber’s computer security systems. Defendants provided a portion of the database to prove the information had been exfiltrated and then demanded payment in exchange for deleting the stolen data. The defendants’ plea agreements state that on November 16, 2016, Uber agreed to pay $100,000 in bitcoin to the defendants through a third party but that, as part of the agreement, Uber demanded that the defendants also sign a confidentiality agreement. According to the plea agreements, Uber demanded that the payment for the data breach remain confidential and that the defendants destroy the data that they stole. After three weeks of negotiation, Uber made two $50,000 payments, one on December 8 and the other on December 14, 2016. Then, in January 2017, Uber informed the defendants that it had discovered Glover’s true identity. On January 3, 2017, a representative from Uber met with Glover at his Florida home, where Glover admitted his role in the data breach exfiltration and signed a confidentiality agreement in his true name. On January 5, 2017, a representative from Uber met with Mereacre at a hotel restaurant in Toronto, Canada, where Mereacre admitted his role in the data breach exfiltration and signed a confidentiality agreement in his true name.
The defendants employed a similar strategy in an aborted attempt to extort funds from Lynda.com’s parent company, LinkedIn. Glover and Mereacre admit that in December of 2016, they possessed information regarding over 90,000 confidential Lynda.com user accounts that the defendants had illegally accessed and downloaded from Lynda.com’s Amazon Web Services account. On December 11, 2016, defendants emailed a portion of the user account information to the security team at LinkedIn. Defendants also demanded compensation in exchange for deleting the stolen data. Rather than pay the bounty, LinkedIn sought to identify the source of the extortionist email. Specifically, LinkedIn tried to lure the writer of the email to enroll with a third party to assist in the negotiation of terms for payment to the defendants. In this way, LinkedIn hoped to identify the extortionist and notify law enforcement of the plot. Defendants told LinkedIn’s representatives, “[p]lease keep in mind, we expect a big payment as this was hard work for us, we already helped a big corp which paid close to 7 digits, all went well.” The defendants stopped communicating with LinkedIn in January 2017, and the company did not pay defendants for the data or for confidentiality.
Glover and Mereacre both were charged by a Superseding Information on October 30, 2019. Each defendant was charged with one count of conspiracy to commit extortion involving computers, in violation of 18 U.S.C. §§ 1030(a)(7)(B) and (c)(3)(A). Today, Glover and Mereacre pleaded guilty to their respective roles in the conspiracy.
The defendants have been released on bond pending sentencing. Judge Koh has scheduled a status conference regarding sentencing for March 18, 2020. The maximum statutory penalty for conspiracy to commit extortion involving computers is five years imprisonment and a fine of $250,000. The court may also order an additional term of supervised release and restitution; however, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Susan Knight and Amie Rooney are prosecuting the case with the assistance of Elise Etter and Lakisha Holliman. The prosecution is being handled by the Office of the U.S. Attorney, Northern District of California’s new Corporate Fraud Strike Force and is the result of an investigation by the FBI.
Final Defendant Convicted in $189 Million Health Care Fraud ScamRead the Press Release
HOUSTON – With the plea of an 80-year-old Houston man, all 14 charged in the scam involving Continuum Healthcare and its various health centers have been convicted, announced U.S. Attorney Ryan K. Patrick.
Bobby Rouse admitted to conspiring to pay and receive kickbacks and to money laundering relating to the Medicare program today.
A total of 13 others have been convicted in relation to the scheme. A federal jury convicted Cheryl Waller, 73, of Houston, March 2, 2017, after a three-day trial on one count of conspiracy to pay and receive kickbacks and one count of receiving kickbacks. Those all convicted on the conspiracy count include Steven Houseworth, 46, James Bobino, 50, Ernestine Johnson, 60, Jackie Harris, 56, and Vermon Lacy III, 35, all of Houston; David Edson, 71, Palm Harbor, Florida; Jeffery Parsons, 60, Crockett; Aretha Johnson, 67, Wimberley; Inger Michelle Pace, 57, Missouri City; Ronald Turner, 59, Fresno; Deborah Davis, 56, Atlanta, Georgia; and Mary Browning, 71, Beasley. Edson and Parsons were also convicted of two counts of money laundering. Johnson also pleaded guilty to one count of money laundering, while Pace and Turner each further admitted to paying and receiving kickbacks.
Rouse, Houseworth, Edson and Parsons were part of the executive team for Continuum Healthcare LLC, which owned Westbury Community Hospital in Houston as well as community mental health centers in the Houston area known by their locations as Hornwood, Baytown and Missouri City.
During his plea today, Rouse admitted to participating in a kickback scheme to pay co-defendants to bring patients to Continuum. He admitted to causing Medicare to pay $18.8 million based on false and fraudulent claims.
Each location operated a partial hospitalization program (PHP). The PHP was supposed to be a treatment program for individuals with mental illness, intended to closely resemble a highly structured, short-term hospital inpatient program. However, while it was a distinct and organized intensive treatment program, it offered less than 24-hour daily care.
In 2010, Continuum opened Westbury Community Hospital with Hornwood and Baytown becoming outpatient centers and continuing to operate their existing PHPs under the Westbury name. Westbury also opened a PHP.
Rouse, Houseworth, Edson and Parsons were responsible for the day-to-day operation of Continuum/Westbury and were involved in the implementation of the various kickback programs. Numerous people were referred for treatment in exchange for payment. However, the vast majority did not qualify for PHP services, because they were not experiencing an acute psychotic episode or were actually suffering from mental retardation, dementia or Alzheimer’s.
Aretha Johnson, Pace, Bobino, Waller, Browning and Davis each owned personal care homes in Houston, while Ernestine Johnson, Harris, Lacy and Turner were marketers for Continuum. Each admitted receiving payment to refer the patients, receiving amounts ranging from $130,000 t0 $2.6 million each.
In total, Continuum billed Medicare approximately $189 million in total for fraudulent PHP services and Medicaid paid approximately $66 million on those clams.
U.S. District Judge Gray Miller accepted the plea and has set sentencing for Jan. 23, 2020, at which time Rouse faces up to 10 years in prison and a possible $250,000 maximum fine. Rouse was permitted to remain on bond pending that hearing.
The FBI, Department of Health and Human Services - Office of the Inspector General, Texas Attorney General's Medicaid Fraud Control Unit and IRS - Criminal Investigation participated in the joint investigation. Assistant U.S. Attorneys Tina Ansari and Special Assistant U.S. Attorney Justin Blan are prosecuting the case.
Federal Jury Convicts Former Video Store Owner of Selling Counterfeit DVDsRead the Press Release
Bangor, Maine: A Mattawamkeag man was convicted yesterday of mail fraud and two counts of copyright infringement following a seven-day jury trial, U.S. Attorney Halsey B. Frank announced.
According to evidence presented at trial, Douglas Gordon, 52, the former owner of a chain of video rental stores in eastern Maine, operated three websites from which he made more than $640,000 in sales of over 48,000 counterfeit copies of copyright-protected motion pictures. Representatives of MGM, CBS, Disney, Mercury Pictures and other copyright owners testified that Gordon did not have permission to reproduce and distribute the movies. A senior investigator employed by the Motion Picture Association identified the DVDs as counterfeit.
Based on undercover purchases made from the three websites, execution of search warrants and forensic analysis of computers, investigators from U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) identified Gordon as the operator of the online businesses. A series of customers testified at trial that they expected based on website advertisements to receive authorized DVD movies with cover art and a plastic case, but instead received a paper envelope with nothing more than a burned disc with a laser-etched movie title. Several of Gordon’s former video store employees also provided evidence of his unlawful reproduction.Gordon faces up to 20 years in prison for the mail fraud offense, an additional three years for each of the copyright infringement offenses, a $250,000 fine and three years of supervised release. He will be sentenced after completion of a presentence investigation report by the U.S. Probation Office.
HSI investigated the case, with assistance from the Maine Attorney General’s Office, the Brewer Police Department, the U.S. Postal Inspection Service and the Better Business Bureau.
FBI Arrests Corrections Officer for Smuggling A Controlled Substance at Lanesboro Correctional InstitutionRead the Press Release
CHARLOTTE, N.C. – A federal grand jury sitting in Charlotte has indicted Erice Lemond Blyther, 46, of Hoffman, N.C., for smuggling a controlled substance at Lanesboro Correctional Institution while employed as a correctional officer. The indictment was unsealed today in federal court, following Blyther’s arrest by the FBI.
Special Agent in Charge John A. Strong of the FBI’s Charlotte Field Office, joins U.S. Attorney Murray in making the announcement.
According to charges contained in the federal indictment, Blyther worked as a correctional officer at the Lanesboro Correctional Institution (LCI), since renamed Anson Correctional Institution, a state prison located in Polkton, North Carolina. The LCI housed medium and close-security inmates and was one of the state’s largest prisons. As alleged in the indictment, as a correctional officer, Blyther’s duties included the supervision of inmates, and ensuring safe, secure and orderly prison operations. Inmates within the LCI were prohibited from possessing controlled substances and are permitted to use controlled substances only when prescribed by a medical professional and under the direct supervision of LCI staff. Correctional officers were also prohibited from accepting gifts from inmates, performing favors for inmates, or providing inmates with narcotic drugs or any other item forbidden by LCI rules.
According to the indictment, between August and September 2018, while employed at LCI as a correctional officer, Blyther accepted a bribe to smuggle a controlled substance into the LCI on behalf of an inmate housed at the facility. Blyther was arrested by the FBI on Tuesday, October 29, 2019, and had his initial appearance this morning before U.S. Magistrate Judge David S. Cayer.
Blyther is charged with use of interstate facility to facilitate bribery, which carries a maximum prison term of five years and a $250,000 fine; extortion under color of official right, which carries a maximum prison term of 20 years and a $250,000 fine; and possession with intent to distribute a controlled substance, which carries a maximum prison term of 10 years and a $250,000 fine.
All charges in the indictment are allegations. The defendant is innocent until proven guilty beyond reasonable doubt in a court of law.
The FBI investigated the case. Assistant U.S. Attorney Dana Washington, of the U.S. Attorney’s Office in Charlotte, is in charge of the prosecution.
Enid Doctor Pays $50,000 to Settle Civil Penalty ClaimsRead the Press Release
OKLAHOMA CITY – Joe Alexander, M.D., has agreed to pay $50,000 to settle civil penalty claims stemming from allegations he violated the Comprehensive Drug Abuse Prevention and Control Act of 1970 and its regulations, announced United States Attorney Timothy J. Downing.
Dr. Alexander owns and operates the Alexander Clinic, a weight loss center in Enid, Oklahoma. He also owns and operates weight loss clinics in Texas. The United States alleges that from January 1, 2017, to June 10, 2019, Dr. Alexander issued prescriptions for Schedule III and IV controlled substances in Oklahoma without a DEA registration number for the clinic address in Oklahoma, and without a controlled substance license from the Oklahoma Bureau of Narcotics.
To resolve these allegations, Dr. Alexander has agreed to pay $50,000 to the United States.
In reaching this settlement, Dr. Alexander did not admit liability, and the government did not make any concessions about the legitimacy of the claims. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case.
This case was investigated by the Drug Enforcement Administration, Office of Diversion Control. Assistant U.S. Attorneys Ronald R. Gallegos and Amanda R. Johnson prosecuted the case.
Eau Claire Woman Sentenced for Distributing MethamphetamineRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Sylvia Erickson, 41, Eau Claire, Wisconsin, was sentenced yesterday by U.S. District Judge William M. Conley to 7 ½ years in federal prison for distributing methamphetamine in the Eau Claire, Wisconsin area. On August 16, 2019, Erickson pleaded guilty to distributing 50 grams or more of methamphetamine.
Erickson was arrested on February 17, 2019, following a series of methamphetamine sales to a confidential informant between November 12, 2018 and January 7, 2019. She also sold a firearm to an informant on November 30, 2018. The defendant was on state probation for two previous drug convictions when she committed the offenses here and was prohibited from possessing firearms because of prior felony convictions.
At the sentencing, Judge Conley noted that although Erickson had a horrific childhood, that fact had to be weighed against her almost two decades of committing crimes and the scope of her most recent drug trafficking activity. Judge Conley also noted that Erickson had squandered numerous opportunities for treatment and rehabilitation in the past.
The charges against the defendant were the result of an investigation conducted by the Drug Enforcement Administration, the West Central Drug Task Force, and Wisconsin Department of Justice Division of Criminal Investigation. The United States also recognizes the assistance of the Eau Claire County District Attorney’s Office. The prosecution of the case has been handled by Assistant U.S. Attorney Meredith Duchemin.
Domestic Violence: The Latest Path to A Lengthy Term in Federal PrisonRead the Press Release
GRAND RAPIDS, MICHIGAN – Marking Domestic Violence Awareness month, U.S. Attorney Andrew Birge advised that domestic abusers are finding that their abusive conduct can have federal consequences. “Cases come to our attention due to domestic violence quite frequently. And, whether the case involves drugs, guns or anything else, the defendants with domestic abuse in their criminal record face significant penalties.”
U.S. Attorney Birge described several recent prosecutions and noted that: “These are neither the first nor will they be the last firearm cases that have come to our attention through a domestic violence investigation or where we’ll be citing that history in looking to have the offender locked up for a long time.” Those who are currently victims of domestic violence need to know: “Keeping guns from domestic abusers legally prohibited from possessing them is a national Department of Justice priority. Federal law has long barred convicted felons, as well as individuals subject to certain domestic violence protective orders or convicted of domestic violence misdemeanors, from possessing firearms. Those who engage in or have a history of domestic violence should consider themselves warned.”
Donnell Davenport was a serial domestic violence offender. He pleaded guilty to a federal felon in possession of a firearm charge and is scheduled for sentencing on December 9. When Davenport’s girlfriend told him that she wanted to break up, he told her that if he couldn’t have her, no one would. Fearful, she fled to a neighbor’s house and called the police. Officers drove to the house, and Davenport sped away through the residential neighborhood at speeds reaching 70mph. When police finally PIT-maneuvered his car, Davenport tossed a handgun from his window as the vehicle spun to a stop. Davenport now faces up to 10 years in a federal prison.
Craig David Overla, 34, most recently of Ludington, Michigan, was sentenced to serve ten years in the Federal Bureau of Prisons for being a felon in possession of firearms and for possessing stolen firearms. In March 2019, Police discovered the firearms that formed the basis of his federal charges while investigating severe injuries inflicted on his two-month-old son. Police subsequently learned that shortly before the baby suffered severe injuries, Overla had threatened to kill his thengirlfriend and the two-month-old baby. The baby passed away after being in the hospital for approximately one month. Overla has not been charged with an offense arising out of the baby’s death.
Brandon Kelly likewise had a long list of criminal convictions, including two domestic violence convictions when he was caught in possession of a .38 caliber revolver. Kelly was recently sentenced to 60 months in a federal prison on the gun charge after the district court noted his history of violence and assaultive behavior.
Donte Darnell Blue also has an extensive criminal history that includes domestic violence. He was charged in federal court with possession with intent to deliver methamphetamine and carrying a firearm during and in relation to a drug trafficking crime. Blue could be sentenced to up to 20 years in federal prison on the drug charge and will have to serve at least five years consecutive to that on the gun charge. Blue pled guilty on October 29, 2019; a sentencing date has yet to be scheduled.
If you are or if someone you know is in an abusive relationship, call the Hotline today: 1-800-799-SAFE (7233) 1-800-787-3224 (TTY). #DomesticViolence
Other resources available:
Michigan Coalition Against Domestic and Sexual Violence
Lists resources for victims and domestic violence shelter information.
517-347-7000 http://www.mcedsv.org/Michigan Domestic Violence Prevention and Treatment Board
517-373-8144 https://www.michigan.gov/mdhhs/
Select Safety & Injury Prevention/Domestic ViolenceNational Coalition Against Domestic Violence
303-839-1852 www.ncadv.org/END
Detroit Man Sentenced in Drive-By Shooting and Murder Committed Outside A Popular Detroit Restaurant in the Warehouse DistrictRead the Press Release
A Detroit man was sentenced yesterday after having been convicted by a jury in October, 2018, on charges of murder-for-hire, conspiracy to possess with intent to distribute cocaine and oxycodone, and use of a firearm causing death during and in relation to a drug trafficking crime, announced United States Attorney Matthew Schneider.
Schneider was joined in the announcement by Steven M. D'Antuono, Special Agent in Charge of the Detroit FBI Field Office and Chief James Craig, Detroit Police Department.
Andre Watson, 33, received a sentence of life plus 10 years in federal prison.
The four-week trial was conducted before United States District Judge Avern Cohn.
According to the evidence presented at trial, on September 11, 2015, a drive-by shooting took place outside of They Say restaurant in the Warehouse District of Detroit in which the victim, Devin Wallace, 30, of Novi, Michigan, was killed. The investigation into the shooting determined Deaunta Belcher was part of an intricate drug and fraud scheme throughout Detroit. Belcher and others, including his co-defendant Darnell Bailey and the victim Devin Wallace, obtained cars, apartments, furniture, and other items fraudulently using the identities of drug customers and other fraud victims, and leased those items to drug dealers throughout the city. Belcher and others decided to kill Wallace out of greed so they could assume his role in their fraud and drug conspiracy.
The evidence showed that Belcher and his co-defendant, Darnell Bailey, offered two men, Andre Watson, and Stephen Brown, money, a car, and other compensation to commit the murder. Watson and Brown spent weeks trying to locate Wallace, and on September 11, 2015, Belcher informed Watson and Brown that Wallace would be at They Say. Watson, Brown, and a third man, Billie J. Chambers, drove to They Say where Brown fired toward Wallace twice and Watson shot Wallace 12 times at close range. Nine bullets struck his body, with six bullets entering his head. Wallace died at the scene. In an effort to mislead investigators, Belcher and Bailey told police that Wallace was killed for cooperating with the DEA in a separate drug investigation.
The jury also convicted Belcher for obstruction of justice for statements made to Detroit police on September 24, 2015, in which he tried to mislead investigators regarding his relationship with Stephen Brown.
Co-defendants, Billie J. Chambers, 33, and Stephen Brown, 27, both from Detroit, previously pleaded guilty to murder-for-hire for their respective involvement in the shooting. Chambers received a sentence of 144 months and Brown received a sentence of 204 months. Darnell Bailey, 29, of Roseville and Deaunta Belcher, 36, are awaiting sentencing.
“These defendants carried out a brazen, cold blooded murder in broad daylight near downtown Detroit, and the shooting shocked our community when it was broadcast on the evening news,” United States Attorney Matthew Schneider said. “Thanks to the tireless efforts of the FBI and the Detroit Police Department, the people of Detroit can rest easier knowing these defendants will remain behind bars for the rest of their lives. Eradicating violent crime remains our top priority, and we will continue to work every day so Michiganders can go about their lives without fear of harm.”
“The defendants showed a callous disregard for life and the safety of our community that is all too often displayed by those involved in large-scale drug trafficking operations,” said SAC D’Antuono. “This sentence is the result of a strong collaboration among the FBI’s Violent Crimes Task Force, the Detroit Police Department, and the US Attorney’s Office and a step towards making the streets of Detroit a little safer.”
The investigation was a collaboration between Detroit Police and members of the FBI Violent Crimes Task Force.
The case was prosecuted by Assistant United States Attorney Terrence Haugabook.
Department of Justice Sues Walmart to Enforce Employment Rights of Naval ReservistRead the Press Release
DENVER – The Department of Justice filed a civil complaint today in the United States District Court for the District of Colorado on behalf of Naval Petty Officer Third Class Lindsey Hunger against Walmart Inc. The complaint alleges that Walmart violated the law when it declined to hire Hunger due to her upcoming naval reserve duties.
“The members of our Armed Forces routinely make personal sacrifices to protect our nation. The least we can do as a nation is ensure they aren’t discriminated against for making these sacrifices,” said U.S. Attorney Jason R. Dunn of the District of Colorado. “When such discrimination does occur, this office and the Department of Justice will step in to right that wrong.”
“Servicemembers risk their lives to protect all of us. They deserve our full support, and the law does not permit employers to use military service as a reason to deny servicemembers jobs and other employment opportunities,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “Defending servicemembers is very important, and the U.S. Department of Justice will continue to aggressively enforce the Uniformed Services Employment and Reemployment Rights Act and other federal laws that protect servicemembers.”
Hunger alleges that in May 2016 she applied for a summer job at Walmart while she was a member of the United States Naval Reserve. After applying online, she received a call from Walmart’s personnel coordinator for the Walmart located at 2545 Rimrock Avenue in Grand Junction, Colorado. At the end of the call, Hunger mentioned that she was required to complete a mandatory two-week annual training for her Navy Reserve duty during the summer. The Personnel Coordinator responded by telling Hunger that Walmart could not support that time off, and ended the call. Walmart never called Hunger again about her application for employment. Hunger, who was supporting two young children at the time, could not find other employment in Grand Junction during the summer and fall of 2016.
The lawsuit alleges that Walmart’s conduct violated the Uniformed Services Employment and Reemployment Rights Act of 1994, which was passed 25 years ago to protect the rights of servicemembers. The law, known as USERRA, protects servicemembers from discrimination in employment because of their service to their country in any branch of the military. This lawsuit stems from a referral to the United States Department of Justice from the United States Department of Labor, after an investigation by the Department of Labor’s Veterans’ Employment and Training Service.
The Justice Department gives high priority to the enforcement of servicemembers’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s websites at https://www.justice.gov/servicemembers/uniformed-services-employment-and-reemployment-rights-act-1994-userra and www.justice.gov/servicemembers as well as on the Department of Labor’s (DOL) website at https://www.dol.gov/agencies/vets/programs/userra/aboutuserra.
This case is being handled by Assistant U.S. Attorney Zeyen Wu in the U.S. Attorney’s Office for the District of Colorado.
Case Number: 19-cv-3090
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Convicted felon sentenced for possessing firearmRead the Press Release
DAYTON – Michael J. Blair, 21, of Dayton, was sentenced in U.S. District Court to 51 months in prison for possessing a firearm after being convicted of a felony crime.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Dayton Police Chief Richard S. Biehl, Joseph M. Deters, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division announced the sentence handed down Oct. 29 by Senior U.S. District Judge Thomas M. Rose.
According to court documents, in August 2018, law enforcement were conducting surveillance with the assistance of an airplane. During surveillance, those in the airplane observed Blair moving back and forth across a vacant field in Dayton conducting what appeared to be multiple hand-to-hand drug transactions with cars that pulled up in an alley.
Law enforcement searched an area of brush to the side the alley where they had observed Blair and discovered two firearms, an extended magazine loaded with a total of 27 live rounds, fentanyl, cocaine and $1,060. In addition to the handguns, drugs and money, officers found pieces of paper labeled “GEEK,” a term commonly used to refer to drug users. The papers included numerous phone numbers listed on the papers with some also indicating what kind of drug they normally purchase.
Blair pleaded guilty in May 2019. As part of his sentence, he forfeited two 9mm pistols. Blair had previously been convicted of burglary in Montgomery County Common Pleas Court.
This case is being prosecuted as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. 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.
U.S. Attorney Glassman commended the investigation by the Dayton Police Department and FBI, and the assistance of the Ohio State Highway Patrol and ATF, as well as Assistant United States Attorney Amy M. Smith, who is representing the United States in this case.
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