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28 October 2019
Traveler Arrested at Cyril E. King Airport for Possession of CocaineRead the Press Release
St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert for the District of the Virgin Islands announced today that Aubrey Meyers was arrested at the Cyril E. King Airport in St. Thomas, VI, for possession of cocaine with intent to distribute.
According to court documents filed in the case, on Sunday, October 27th, Meyers was attempting to travel from St. Thomas to Orlando, Florida. He was questioned by Customs and Borders Protection officials, and a search of his luggage revealed five clear plastic bags containing cocaine.
This case is being investigated by U.S. Immigrations and Customs Enforcement – Homeland Security Investigations. It is being prosecuted by Assistant United States Attorneys Nathan Brooks and Adam Sleeper.
A criminal complaint is merely a charging document, and it is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty beyond a reasonable doubt in a court of law.
Three LMPD Officers Charged in Overtime Case Plead Guilty and Agree to Pay $170,000 in RestitutionRead the Press Release
LOUISVILLE, Ky. – Three Louisville Metropolitan Police Department (LMPD) officers charged with wire fraud for their part in a scheme to defraud the Commonwealth of Kentucky, the federal government, and their own department have pleaded guilty in federal court today.
“This is a sad day but there is no gray here. These officers lied and stole to increase their paychecks and spike their pensions,” said U.S. Attorney Russell Coleman. “These officers are exceptions; outliers from the fine public servants of LMPD who we trust to protect our families. My personal thanks to Commonwealth’s Attorney Tom Wine and his office for their partnership in investigating and prosecuting this matter. We are also fortunate to have the focus, talent, and professionalism of the multi-agency Kentucky Public Corruption Civil Rights Task Force, without which we would not be here today.”
“Our office takes seriously any abuse of public trust. Early in this investigation, we began consulting with LMPD detectives and the United States Attorney’s Office to determine the most appropriate venue for both the ongoing investigation and anticipated prosecution,” said Commonwealth’s Attorney Tom Wine. “The partnership between our office and the United States Attorney’s Office allowed us to approach these cases strategically and guarantee appropriate punishment. It was and is the shared goal of all parties to ensure that those public officials who fail to operate with the utmost integrity be held fully accountable.”
Defendants Brian Stanfield, Todd Roadhouse, and Mark Final, took part in a scheme beginning in or about 2014 and continuing to in or about August 2017, to defraud LMPD, Kentucky, and the federal government for monetary gains by submitting overtime requests for time they did not actually work on behalf of LMPD and failing to work during their assigned shifts, as well as submitting overtime requests claiming to have worked hours for the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) on Organized Crime Drug Enforcement Task Force (OCDETF) matters. All three defendants waived Indictment by the grand jury and pleaded to a felony Information before the Court.
According to the plea agreements, to bolster and support their requests for overtime the defendants acted in concert to prepare and/or approve false and fraudulent uniform citation arrest reports in which he or one of his co-defendants altered the time of the arrest and added the co-defendants’ names on the signature line of the citation to make it appear that two or more of them were present and involved in the citation arrest, when, in fact, this was not true. By altering the citations in these ways, the defendants were able to create documentary support for their false claims for overtime pay for hours they did not actually work.
It was further part of the scheme that the defendants submitted overtime requests claiming to have worked hours for both the DEA and the ATF on OCDETF matters when they, in fact, did not work those hours. Based upon their representations, LMPD paid them for those hours and included those hours on a reimbursement request submitted to the DEA and the ATF. Stanfield submitted falsified overtime hours to both DEA and ATF, while Roadhouse and Final falsified hours to claim time worked and paid out of ATF OCDETF funds. Ultimately, the defendants were paid through LMPD for these claimed, but not worked, hours, and the DEA and the ATF reimbursed LMPD pursuant to their respective OCDETF Agreements.
The defendants engaged in this fraud and misrepresentation in order to steal funds from the Louisville Metro Police Department and the federal government by way of an inflated paycheck as well as to increase their salary over time in order to inflate the benefits they would receive from the Kentucky Retirement Systems upon retirement.
The defendants have agreed to pay nearly $170,000 in total restitution. According to the plea agreement, Stanfield agrees to pay restitution in the amount of $101,559; Roadhouse agrees to pay $41,390 in restitution and Final agrees to pay $27,531 in restitution.
The case is being prosecuted by Assistant United States Attorney Stephanie Zimdahl and Special Assistant U.S. Attorney Kaleb Noblett of the Jefferson County Commonwealth’s Attorney’s Office and was investigated by the Kentucky Public Corruption Civil Rights Task Force which consists of the Federal Bureau of Investigation (FBI), LMPD, the Kentucky office of the Attorney General, and the Kentucky State Police.
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Texas Man Pleads Guilty to Interstate Stalking and Threatening CEO of Big Machine Label GroupRead the Press Release
NASHVILLE, Tenn. – October 28, 2019 –Eric Swarbrick, 26, of Austin Texas, pleaded guilty today in U.S. District Court, to interstate stalking and sending interstate communications with the intent to threaten, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Swarbrick was charged in September 2018 and initially arrested in Travis County, Texas before being transferred to the Middle District of Tennessee.
In January 2018, Big Machine Label Group (“BMLG”) in Nashville, began receiving letters from Swarbrick expressing his desire for BMLG CEO Scott Borchetta to introduce him to Taylor Swift, who at the time was a client of BMLG. In one letter, Swarbrick acknowledged that he had been wandering around the offices of BMLG in the past. Over time, the letters became increasingly violent and sexual in nature, with at least 40 letters and emails having been received by BMLG.
On three occasions, Swarbrick drove from Texas to Nashville and personally delivered letters to BMLG, including on August 2, 2018. On that date, Swarbrick attempted to gain entrance into BMLG’s office but was detained by security guards and arrested by the Metropolitan Nashville Police Department. After being released from custody in Nashville, Swarbrick continued to send at least 13 threatening letters and emails before the end of August 2018. In many of the letters, Swarbrick expressed his desire to rape and kill Taylor Swift and in one letter, he stated he would kill himself in front of Borchetta and his staff.
Swarbrick is currently in the custody of the United States Marshal and will remain so until he is sentenced on March 6, 2020. He faces up to five years in prison and a $250,000 fine on each count.
This case was investigated by the FBI and the Metropolitan Nashville Police Department. Assistant U.S. Attorney Siji Moore prosecuted the case.
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Ten Members of Allegedly Murderous Reading, PA Drug Trafficking Organization Charged in 27-Count Second Superseding IndictmentRead the Press Release
READING, PA – United States Attorney William M. McSwain and Berks County District Attorney John T. Adams announced that ten individuals from Reading were charged by a Second Superseding Indictment with murder, kidnapping, drug distribution, and firearms offenses. At a press conference at the District Attorney’s Office, U.S. Attorney McSwain noted that these charges come about seven months after six of the same individuals were initially indicted on drug distribution and firearms offenses as part of a drug trafficking organization known as “Trinidad” operating in and around Reading. The additional offenses announced today relate to multiple homicides and kidnappings that occurred in 2017 and 2018, including a quadruple homicide that occurred on January 28, 2018.
The ten charged individuals are:
- Jesus Feliciano-Trinidad, a/k/a “Chewy,” a/k/a “Che,” 29;
- Yomar Velazquez-Figueroa, a/k/a “Negrito,” 21;
- Fitzgerald Daliot-Rios, a/k/a “Barber,” 29;
- Mariela Alvarado, a/k/a “Onyx,” 38;
- Dewayne Quinones, a/k/a “Hombre,” 25;
- Owen Malave-Medina, 22;
- Pedro Sanchez-Laporte, a/k/a “Javi,” 28;
- Lillian Garcia-Ortiz, a/k/a “Lilly,” 20;
- Angel Rivera-Silva, a/k/a “Estrellita,” 41; and
- Mayco Alvarez-Jackson, a/k/a “Pipon,” 22.
The charges stem from a years’ long investigation into the receipt, processing, and distribution of methamphetamine, heroin, fentanyl, cocaine, and crack cocaine by the defendants from June 2017 until March 21, 2018. The defendants are accused of using a number of buildings, residences, firearms and acts of violence to further their drug dealing efforts in and around the Reading area.
Included within the allegations of the Second Superseding Indictment are events in which various defendants conspired to shoot and kill Miguel Reyes on December 13, 2017; kidnap, shoot, and kill Hector Gonzalez-Rivera on January 24, 2018; and shoot and kill Jarlyn Lantigua-Tejada, Juan Rodriguez, Nelson Onofre, and Joshua Santos on January 28, 2018. The Second Superseding Indictment also alleges various defendants in this drug trafficking group conspired to shoot individuals on February 25, 2018 and February 26, 2018, and then conspired to commit another kidnapping on February 27, 2018.
“This has been a complex, ongoing investigation since I was here in Reading in March 2019 to announce the original charges against some of these same defendants,” said U.S. Attorney McSwain. “The current defendants now face some of the most serious, violent charges that exist under federal law. I want to commend District Attorney Adams for the strong partnership that exists between our Offices that made these charges possible. My Office is committed to working with the Berks County District Attorney’s Office and all of our federal, state, and local law enforcement partners to destroy violent drug gangs and keep the Reading community safe.”
“As charged, this organization created mayhem in the City of Reading,” said District Attorney Adams. “Through the cooperative efforts of my Office, the Reading Police and many of our Municipal, State and Federal partners, we have now dismantled a violent drug trafficking organization.”
“Violent drug gangs destroy communities,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “This superseding indictment sends the message that the FBI and our local law enforcement partners will never stop working to make our communities safer and free from violent crime.”
If convicted, defendants Feliciano-Trinidad, Velazquez-Figueroa, Daliot-Rios, Quinones, Sanchez-Laporte, Rivera-Silva, and Alvarez-Jackson face death eligible offenses.
If convicted, defendants Alvarado and Malave-Medina face up to life imprisonment.
If convicted, defendant Garcia-Ortiz faces up to 40 years imprisonment.
The case was investigated by the Federal Bureau of Investigation, the Berks County District Attorney’s Office, the Berks County Detectives, and the Reading Police Department, with assistance from the Pennsylvania State Police and the Montgomery County Detectives, and is being prosecuted by Assistant United States Attorney Kelly A. Lewis Fallenstein and Special Assistant United States Attorney Rosalynda M. Michetti.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Tax Preparer Sentenced to 15 Months in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that GELIN STERLING, 31, of Berlin, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 15 months of imprisonment, followed by one year of supervised release, for preparing false tax returns.
According to court documents and statements made in court, Sterling owned and operated Sterling Tax Plus, LLC, a tax preparation business. For the 2014 through 2017 tax years, Sterling prepared tax returns for numerous clients that included false mileage expenses, false charitable donations, and other false income items.
Judge Dooley ordered Sterling to pay restitution of $250,000 to the IRS. As a result of his fraudulent conduct, many of his clients’ filed tax returns will need to be amended. The amount of Sterling’s restitution may be reduced as his clients resolve their own tax liability with the IRS.
On May 2, 2019, Sterling pleaded guilty to one count of aiding in the preparation of false tax returns. Sterling, who is released on a $100,000 bond, is required to report to prison on December 30.
Sterling is a citizen of Haiti and faces immigration proceedings when he is released from prison.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division and the Connecticut Department of Revenue Services. The case was prosecuted by Assistant U.S. Attorney Jennifer R. Laraia.
Tax Preparer Pleads Guilty to Filing False Tax ReturnsRead the Press Release
LAS VEGAS, Nev. – William Pamintuan Craig, 59, of Las Vegas, Nevada, pleaded guilty today to making and subscribing a false tax return, U.S. Attorney Nicholas A. Trutanich announced.
According to court documents, since at least 2012, Craig operated a tax return preparation business in Las Vegas. When preparing his own tax returns, Craig underreported his taxable income for tax years 2012 to 2017 by approximately $439,000 in total, causing $143,237 in tax loss. Furthermore, when preparing his clients’ tax returns, Craig purposely and fraudulently claimed sham “deductions” to which his clients were not entitled. Between 2012 and 2017, Craig caused at least $128,000 in tax loss by filing false returns on behalf of his clients.
This case was the product of an investigation by the IRS-Criminal Investigation. Assistant U.S. Attorney Tony Lopez is prosecuting the case.
Craig is scheduled to be sentenced by U.S. District Judge Andrew P. Gordon on January 23, 2020. Craig faces a maximum statutory penalty of three years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
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Tama Man Who Assaulted Daughter’s Boyfriend with a Shovel Sentenced to Federal PrisonRead the Press Release
A Tama man who hit another man with a shovel and who spit on and bit police officers was sentenced today to twelve months in prison.
Lucius Bear, age 42, from Tama, Iowa, received the prison sentence after a May 16, 2019 guilty plea to assault by striking, beating, or wounding.
Information disclosed at sentencing and at his plea hearing showed that on February 17, 2019, Bear, while on the Sac and Fox Tribe of the Mississippi in Iowa Meskwaki Settlement, got into an argument with his daughter’s boyfriend. Bear hit the boyfriend over the head with a garden shovel containing a metal blade. This caused a large cut to the victim’s head, requiring fifteen staples to close. Officers who responded to the scene tried to take Bear into custody. Bear fought with the officers, biting one on the arm and spitting on the other.
Bear was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Bear was sentenced to twelve months’ imprisonment. He was ordered to make payment of $25 to the special assessment fund. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system. Bear has over 30 prior criminal convictions, including two operating while intoxicated and some relating to violent assaults.
The case was prosecuted by Assistant United States Attorney Ashley Corkery and was investigated by the Meskwaki Police Department and the Federal Bureau of Investigation. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 19-CR-00037.
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Tahlequah Man Sentenced to 60 Months for Possession of Firearm in Furtherance of A Drug Trafficking CrimeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Michael Lewis Killin, age 46, of Tahlequah, Oklahoma, was sentenced to 60 months’ imprisonment and 3 years of supervised release for Possession Of Firearm In Furtherance Of a Drug Trafficking Crime, in violation of Title 18, United States Code, Section 924(c). The charges arose from an investigation by the Tahlequah Police Department, the Federal Bureau of Investigation (“FBI”), and the FBI Safe Trails Task Force.
The Superseding Indictment alleges that on or about November 7, 2018, in the Eastern District of Oklahoma, the defendant knowingly possessed a Strum, Ruger, and Co., Model LC9, 9mm Luger caliber semi-automatic pistol, a firearm he used in furtherance of a drug trafficking crime for which he may be prosecuted in a court of the United States.
United States Attorney Brian J. Kuester said, “Guns are tools of the trade and violence a characteristic of drug trafficking organizations. A top priority of the Department of Justice is to work with state, local, and tribal agencies to reduce violent crime. Enforcing federal firearms statutes gives us the opportunity to partner with those agencies as they serve and protect their communities.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Jarrod Leaman represented the United States.Sulphur Man Sentenced to More Than Ten Years for Oil and Gas FraudRead the Press Release
OKLAHOMA CITY – JUSTIN LANE FOUST, 43, of Sulphur, Oklahoma, has been sentenced to 121 months in prison for wire fraud, money laundering, and aggravated identity theft in connection with fraud against Chesapeake Energy, announced U.S. Attorney Timothy J. Downing.
According to an 11-count indictment filed on January 16, 2018, Foust was employed by Chesapeake Operating, Inc., a wholly owned subsidiary of Chesapeake Energy Corporation, from April 2002 until September 2011. In July 2011, Foust formed Platinum Express, LLC, which became an approved vendor for Chesapeake Operating in October of that year. The indictment alleged that from October 2011 until July 2014, Chesapeake Operating contracted with Platinum Express primarily to transport waste water to disposal facilities in western Oklahoma.
On February 5, 2019, a jury convicted Foust on 8 out of 11 counts of defrauding Chesapeake Operating by causing Platinum Express to submit false invoices for services it did not perform. In particular, Foust created fraudulent work tickets for steaming production equipment, dirt berm work, plating tanks, hauling rock, repairing cattle guards, blading lease roads, and other services. He generated many fraudulent invoices for amounts just under $5,000, which he knew from his prior work with Chesapeake Operating required a lower level of approval for processing and payment. The trial evidence established he forged the signature and employee identification number a Chesapeake Operating employee on each invoice to ensure Chesapeake Operating’s accounting department would process them. This conduct qualifies as aggravated identity theft. He further caused these work tickets and invoices to be submitted through interstate wire communications to Oildex, the Denver, Colorado, company that processed the claims on behalf of Chesapeake Operating.
Today U.S. District Judge Stephen P. Friot sentenced Foust to 121 months in prison, to be followed by three years of supervised release, during which he must perform 104 hours of community service. This sentence includes a mandatory minimum two-year sentence for aggravated identity theft. It also takes into account the court’s finding that Foust obstructed justice by using civil lawsuits as a diversionary tactic to inculpate others, destroyed evidence, staged a fake break-in of the Platinum Express office, and provided false information to law enforcement.
The court also ordered Foust to pay $2,646,207.22 in restitution and $4,345,619.00 in forfeiture, which represents the proceeds he received from the offense as noticed in the indictment.
This case is the result of an investigation by the Oklahoma Economic and Identity Crimes Task Force, which is composed of the United States Secret Service, the FBI, IRS–Criminal Investigations, Homeland Security Investigations, the U.S. Postal Inspection Service, the Oklahoma Highway Patrol, the Oklahoma City Police Department, the Edmond Police Department, the Moore Police Department, and the Norman Police Department. The case agents hail from FBI and IRS–Criminal Investigations. Assistant U.S. Attorneys Jessica L. Perry, Amanda Green, and Tom Snyder prosecuted the case.
Reference is made to court filings for further information.
Sterling, Alaska Drug Dealer Sentenced to 4 Years in PrisonRead the Press Release
Anchorage, Alaska – United States Attorney Bryan Schroder announced that Susan Jan Bradshaw, 55, of Sterling, Alaska, was sentenced by United States District Judge Sharon L. Gleason to 4 years in prison, followed by a three-year term of supervised release, for her role in a drug and money laundering conspiracy throughout Southcentral Alaska. Also, Bradshaw agreed to forfeit more than $150,000 in cash. Mark Norman Hanes was a co-conspirator and sentenced to federal prison in July 2019.
“It doesn’t matter whether drug dealers and money launderers are in the cities or rural parts of our state, we will find them and prosecute them. Investigating drug distribution rings requires a team effort, including tracking the money,” said U.S. Attorney Bryan Schroder.
According to documents filed in the case, between mid-2014 and January 14, 2015, Bradshaw and Hanes were part of a conspiracy that distributed methamphetamine and heroin throughout Southcentral Alaska. Individuals in Anchorage supplied Bradshaw and Hanes with the drugs, driving to meet them at the home they shared in Sterling on at least two occasions to deliver product. Payment for those drugs would then be made through deposits into bank accounts controlled by the conspiracy.
During a search of Bradshaw and Hanes’ property on January 14, 2015, law enforcement located approximately one pound of methamphetamine and a half-pound of heroin in a safe in their bedroom. Also located in the safe was more than $5,000 in cash, a loaded Glock handgun, and an envelope that contained a U-Haul magnetic security card, and two keys. Written on the outside of the envelope in Bradshaw’s handwriting was “Casey, Emergency Only!” Located in the storage locker was methamphetamine and heroin, as well as $148,000 in cash.
Notebooks found during the search contained entries in Bradshaw’s hand-writing in which she kept track of drug debts. In addition, the notebooks contained diary entries in which she encouraged Hanes to continue selling drugs in order to make enough money for them to retire to Mexico.
Bradshaw and Hanes were not present at their residence at the time of the search, having traveled to Mexico approximately one week prior. Following the search, they stayed in Mexico and remained there until they were arrested on or about September 11, 2017.
Personal use amounts of methamphetamine and heroin are defined in federal regulations as one gram, see 28 C.F.R. § 76.2(h); however, use amounts of heroin can be as little at 1/10 gram. As a result, in the defendants’ possession in January 2015, were more than 400 doses of methamphetamine and more than 2,000 doses of heroin. Throughout the course of the conspiracy in this case, Bradshaw and Hanes likely distributed tens of thousands of doses of drugs throughout Southcentral Alaska.
At sentencing, Judge Gleason noted that Bradshaw’s culpability was significant given that she had no prior criminal history and did not appear to have any substance abuse issues, and was driven by a profit motive to distribute drugs into her community.
“No community is immune from the devastation caused by meth and heroin,” said IRS-Criminal Investigation Special Agent in Charge Justin Campbell. “IRS-Criminal Investigation will continue to work with our partners to ensure that those who profit from selling these illegal drugs in our communities are held accountable whether they reside in Anchorage or in Sterling, AK.”
This case was investigated and prosecuted by the FBI Safe Streets Task Force, the Internal Revenue Service, and Assistant U.S. Attorney Kyle Reardon.
Spring Hill Man Sentenced to over Four Years in Federal Prison for Pharmacy BurglaryRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday today sentenced William Hennessey (37, Spring Hill) to 51 months in federal prison for distributing Schedule II controlled substances after burglarizing a pharmacy. The court also ordered Hennessey to pay $36,000 in restitution to the pharmacy.
Hennessey had pleaded guilty on July 31, 2019.
According to court documents, on March 23, 2019, Hennessey broke into Suntrust Pharmacy in Port Richey and stole a large safe filled with thousands of highly-addictive Schedule II controlled substances, including oxycodone, morphine, hydromorphone, hydrocodone, fentanyl, and dextroamphetamine. Four days later, law enforcement agents located two plastic containers filled with the stolen oxycodone pills in Hennessey’s car. They also found a glove matching the one found at the pharmacy, at Hennessey’s house. Hennessey had distributed the remaining drugs, which were later recovered by law enforcement, to others.
Hennessey also stole more than $12,000 in cash from the pharmacy. He bought a motorcycle and other items with the stolen money. Hennessey later admitted that he had stolen the safe, cash, and the controlled substances from the pharmacy and had distributed some of the drugs to others.
This case was investigated by Drug Enforcement Administration, the Pasco Sheriff’s Office and the Hernando County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Kelley Howard-Allen.
This case was investigated by the Middle District of Florida Opioid Fraud and Abuse Detection Unit -- one of twelve Department of Justice pilot programs created to help combat the devastating opioid crisis that is ravaging families and communities across America and to prosecute individuals that are contributing to the opioid epidemic.
Six Leaders of the Conservative Vice Lords/Concrete Cartel Street Gang Sentenced for Federal Racketeering (RICO), Business and Pharmacy Robberies, Firearms and Drug Trafficking ChargesRead the Press Release
Memphis, TN – Six Leaders of the Conservative Vice Lords/Concrete Cartel Street Gang, a nation-wide street gang with its origin and home base in Chicago, Illinois, were recently sentenced for federal Racketeering (RICO), Business and Pharmacy Robberies, Firearms and Drug Trafficking charges. D. Michael Dunavant, U.S. Attorney, announced the sentences today.
At trial, the evidence proved the Concrete Cartel and its members operate mainly in Memphis, Shelby County, Tennessee and North Mississippi and that its leadership consists of a regional/southern leader, a statewide leader, a citywide leader and community/division leaders (Whitehaven, Orange Mound, East Memphis, South Memphis and North Memphis).
Within the organization, there are different areas of responsibilities or roles: Ministers of Command, Chief Violators, Chiefs of Security, Chief Enforcers, Ministers of Literature, Lieutenants and Foot Soldiers. Members rise to these positions through acts of violence, including but not limited to shootings, robberies, and drug trafficking. The Concrete Cartel encourages the robbery of businesses, mainly pharmacies, to take opioids and other Schedule II controlled substances to enrich themselves and the membership through drug trafficking.
The evidence further proved that Davante Turner, 26, a/k/a/"Star," William Pinkney, 22, a/k/a/ "Wild," Markease Alexander, 26, a/k/a/ "Citi," Nernest Nesby, 25, a/k/a/ "Neno," Tondwin Lewis, 26, a/k/a/ "T-Luey," and Ariq Rayford, 22, a/k/a/ "Curry," committed multiple acts of business robberies while using firearms. In the case of pharmacy robberies, they then distributed or sold the opioids or controlled substances on the streets of Memphis and elsewhere.
Along with the RICO charge against them, the defendants were also sentenced for their participation in the following armed business robberies, using firearms:
• July 18, 2015, Davante Levert Turner and others robbed the CVS Pharmacy at 786 N. Germantown Parkway, Memphis, Tennessee. During this robbery, Turner and others took the following drugs from the business: Oxycodone, Fentanyl, and Methylphenidate.
• February 15, 2016, Ariq Rayford and others robbed the Walgreens Pharmacy at 4653 Elvis Presley Blvd, Memphis, Tennessee. Rayford attempted to take Roxicodone drugs from the business.
• April 30, 2016, Nernest Nesby and others robbed the Mojo Vapors at 6522 Quince, Memphis, Tennessee, taking money and merchandise from the business.
• April 30, 2016, Nernest Nesby and others robbed the Exxon Mobil Gas Station at 6021 Mt. Moriah, Memphis, Tennessee, taking money from the business.
• April 30, 2016, Nernest Nesby and others robbed the CVS Pharmacy at 6620 Winchester Road, Memphis, Tennessee, taking money from the business.
• May 1, 2016, Nernest Nesby and others attempted to rob the Circle K at 7195 Winchester Road, Memphis, Tennessee.
• May 1, 2016, Nernest Nesby and others robbed the Exxon at 6455 E. Shelby Drive, Memphis, Tennessee, taking money from the business.
• July 22, 2016, Markease Alexander and others robbed the CVS Pharmacy at 786 N. Germantown Parkway Road, Memphis, Tennessee. During the robbery, Alexander and others took the following drugs from the business: Oxycodone, Oxymorphine, and Oxymorphone. Lashawn Shannon distributed the drugs for Alexander and others.
• November 1, 2016, Markease Alexander and others robbed the CVS Pharmacy at 2115 Union Avenue, Memphis, Tennessee. Alexander and others took the following drugs from the business: Oxycodone and Acetaminophen, Dextroamphetamine, Oxycodone, Methylphenidate, Lisdexamfetamine, and Oxycodone Hydrochloride.
• July 5, 2017, Davante Levert Turner, Tondwin Lewis, and William Pinkney robbed the CVS Pharmacy at 6620 Winchester Road, Memphis, Tennessee. Turner, Lewis and Pinkney attempted to take Roxicodone drugs from the business.
Each defendant was sentenced by U.S. District Court Judge Thomas L. Parker, as follows:
• Ariq Rayford was sentenced on October 18, 2019, to 140 months of imprisonment followed by 5 years supervised release;
• William Pinkney was sentenced on September 4, 2019, to 160 months of imprisonment followed by 3 years supervised release;
• Tondwin Lewis was sentenced on September 27, 2019, to 220 months imprisonment followed by 3 years supervised release;
• DaVante Turner was sentenced on October 22, 2019, to 240 months imprisonment followed by 5 years supervised release;
• Markease Alexander was sentenced on October 23, 2019, to 264 months imprisonment followed by 3 years supervised release;
• Nernest Nesby, was sentenced on September 26, 2019, to 481 months imprisonment followed by 3 years supervised release.
U.S. Attorney D. Michael Dunavant said, "Dismantlement of criminal gangs is a top priority of this office and the Department of Justice, and this case represents the collaborative efforts of federal, state, and local law enforcement to target several significant violent leaders and participants in the Conservative Vice Lords organization. As a result of these sentences, the Concrete Cartel has been decimated, and violent gang members will be rightly punished and removed from the streets for decades. We are taking the fight to the gangs in West Tennessee, and we are relentless in our resolve."
The case was investigated by the FBI’s Safe Streets Task Force and theMulti-Agency Gang Unit (MGU) of the Memphis Police Department.
Assistant U.S. Attorneys Kevin Whitmore and Raney Irwin prosecuted this case on behalf of the government.
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Sioux City Woman to Federal Prison for Meth ConspiracyRead the Press Release
A woman who conspired to distribute methamphetamine was sentenced October 25, 2019, to more than seven years in federal prison.
Winona Freemont, 35, from Sioux City, Iowa, pled guilty on June 11, 2019, to conspiring to distribute methamphetamine within a protected location.
At the plea hearing, Freemont admitted that from about July 2017 through April 2018 she participated in the distribution of more than 7 pounds of mixed methamphetamine in Sioux City. Freemont distributed methamphetamine at a residence that was within 1000 feet of Cook Park. Freemont admitted that she and others involved in the conspiracy would travel to Omaha, NE to obtain up to pounds of methamphetamine to bring back to Sioux City to distribute to others.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Freemont remains in custody of the United States Marshal until she can be transported to a federal prison. Freemont was sentenced to 90 months’ imprisonment. She must also serve 6-year term of supervised release following any imprisonment.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-4018. Follow us on Twitter @USAO_NDIA.
Seven Charged with Crimes Related to the Manufacture and Distribution of Pills Laced with Fentanyl and Other Controlled SubstancesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a 27-count superseding indictment last Thursday against two brothers and five others, adding charges, including firearms and money laundering to an indictment first filed in May that charged them with a conspiracy to manufacture counterfeit pills containing fentanyl and other controlled substances, U.S. Attorney McGregor W. Scott announced.
The superseding indictment charges Jamaine Barnes, 37, of Stockton, with engaging in a continuing criminal enterprise from at least Sept. 27, 2015 through May 16, 2019. Jamaine Barnes and his brother Jamar Barnes, 37; Kavieo Wiley, 23; Vincent Patterson, 26, Kadrena Watts, 39; and Chevele Richardson, 33, all of Stockton, are charged with conspiracy to manufacture, distribute, and possess with intent to distribute fentanyl, heroin, methamphetamine, and U-47700 (a synthetic opioid).
The superseding indictment charges Jamaine Barnes with distribution of fentanyl and four counts of money laundering; Jamaine Barnes and Wiley with possession with intent to distribute methamphetamine on a premises where children are present; Jamaine Barnes and Watts with manufacture of methamphetamine on a premises where children reside; Jamaine Barnes, Wiley, Patterson, and Richardson with possession of a firearm in furtherance of a drug trafficking crime; and Jamaine Barnes, Wiley, and Richardson with being a felon in possession of a firearm.
Two counts of using a cellphone to facilitate a drug trafficking offense were added against Lamont Thibodeaux, 40, of Houston, Texas, who is also charged with attempt to possess with intent to distribute a controlled substance. Thibodeaux has not been arrested.
According to court documents, the conspiracy involved the manufacture (using pill press machines) and distribution of counterfeit pharmaceutical tablets containing fentanyl, heroin, and U-47700, as well as purported Ecstasy/MDMA pills containing methamphetamine. Seized emails showed purchases from China of pill press parts and dies (molds for stamping logos and markings onto counterfeit pills) as well as controlled substances and other chemicals.
Charges from the original indictment remain pending against Johnesha Thompson, 42, and Jeremy Barnett, 32, both of Stockton, who were charged with conspiracy to manufacture, distribute, and possess with intent to distribute fentanyl, heroin, methamphetamine, and U‑47700. Barnett was also charged with distributing fentanyl. Tashawn Dickerson, 39, of Riverbank, has pleaded guilty to possession with intent to distribute methamphetamine and awaits sentencing.
This case is the product of an investigation by the Drug Enforcement Administration, California Highway Patrol, San Joaquin METRO Narcotics Task Force, and the Tri-County Drug Enforcement Team (TRIDENT) Task Force with assistance from Homeland Security Investigations, the U.S. Marshals Service, the U.S. Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Stockton Police Department, the Sacramento County High Intensity Drug Trafficking Area (HIDTA) Task Force, and the San Joaquin County Sheriff’s Office. Assistant U.S. Attorney David W. Spencer is prosecuting the case.
If convicted, the defendants face a variety of statutory penalties. Jamaine Barnes faces a minimum of 20 years and up to life in prison if convicted for engaging in a continuing criminal enterprise. The penalties for the other charges carry a range of minimum and maximum statutory penalties. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Sanford Health Entities to Pay $20.25 Million to Settle False Claims Act Allegations Regarding Kickbacks and Unnecessary Spinal SurgeriesRead the Press Release
The Department of Justice announced today that hospital entities Sanford Health, Sanford Medical Center, and Sanford Clinic (collectively, Sanford), of Sioux Falls, South Dakota, have agreed to pay $20.25 million to resolve False Claims Act allegations that they knowingly submitted false claims to federal healthcare programs resulting from violations of the Anti-Kickback Statute and medically unnecessary spinal surgeries. The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally-funded programs.
“Kickbacks can compromise a physician’s medical judgment, result in unnecessary procedures, and increase healthcare costs for everyone,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “We will continue to hold healthcare providers accountable when they violate the rules intended to safeguard the integrity of federal healthcare programs and the welfare of their beneficiaries.”
The settlement announced today resolves allegations that Sanford knew that one of its top neurosurgeons was improperly receiving kickbacks from his use of implantable devices distributed by his physician-owned distributorship (POD). Sanford allegedly received warnings from the neurosurgeon’s physician colleagues and others about the alleged kickback scheme and was aware of the heightened compliance risks associated with PODs. In addition, the neurosurgeon’s colleagues and others repeatedly warned Sanford that the neurosurgeon was performing medically unnecessary procedures involving the devices in which he had a substantial financial interest. The United States alleged that, despite these repeated warnings, Sanford continued to employ the neurosurgeon, continued to allow him to profit from the devices he used in surgeries performed at Sanford, and continued to submit claims to federal healthcare programs for these surgeries, including procedures that were medically unnecessary.
“Kickback schemes and other improper financial incentives create inherent conflicts of interest and warp the medical decision-making process,” said U.S. Attorney Ron Parsons for the District of South Dakota. “This office will continue to aggressively pursue anyone who colludes to violate federal law and compromise the integrity of our healthcare system.”
Contemporaneous with the civil settlement, Sanford entered into a Corporate Integrity Agreement (CIA) with the Department of Health and Human Services Office of Inspector General. The CIA requires, among other things, that Sanford maintain a compliance program, implement a risk assessment program, and hire an Independent Review Organization to review Medicare and Medicaid claims at Sanford Medical Center. It also increases individual accountability by requiring compliance-related certifications from Sanford Medical Center’s board of directors and key executives.
“More than six years ago the Department of Health and Human Services Office of the Inspector General warned in a fraud alert that PODs were inherently suspect under the Anti-Kickback Statute. Unfortunately, these distributors remain questionable,” said Curt L. Muller, Special Agent in Charge, Office of Inspector General at the U.S. Department of Health and Human Services (HHS-OIG). “Patients in government healthcare programs rightly expect that surgeries are medically indicated, not performed to increase provider profits.”
The settlement resolves allegations originally brought in a lawsuit filed by Drs. Carl Dustin Bechtold and Bryan Wellman, surgeons at Sanford, under the whistleblower, or qui tam, provision of the False Claims Act, which allows private parties to bring suit on behalf of the government and to share in any recovery. The whistleblowers will receive $3.4 million of the settlement proceeds.
The settlement was the result of an investigation by the Department of Justice’s Civil Division, the U.S. Attorney’s Office for the District of South Dakota, and HHS-OIG. As part of the settlement, Sanford has agreed to cooperate with the Department of Justice in litigation related to alleged co-defendants, and the hospital system has taken various remedial steps, including terminating the employment of the neurosurgeon in question and prohibiting all Sanford physicians from profiting from their use of medical devices at Sanford.
The lawsuit is captioned United States ex rel. Bechtold, et al. v. Asfora, et al., No. 4:16-cv-04115-LLP (D.S.D.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Sanford Health Entities to Pay $20.25 Million to Settle False Claims Act Allegations Regarding Kickbacks and Unnecessary Spinal SurgeriesRead the Press Release
The Department of Justice announced today that hospital entities Sanford Health, Sanford Medical Center, and Sanford Clinic (collectively, Sanford), of Sioux Falls, South Dakota, have agreed to pay $20.25 million to resolve False Claims Act allegations that they knowingly submitted false claims to federal healthcare programs resulting from violations of the Anti-Kickback Statute and medically unnecessary spinal surgeries. The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally-funded programs.
“Kickbacks can compromise a physician’s medical judgment, result in unnecessary procedures, and increase healthcare costs for everyone,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “We will continue to hold healthcare providers accountable when they violate the rules intended to safeguard the integrity of federal healthcare programs and the welfare of their beneficiaries.”
The settlement announced today resolves allegations that Sanford knew that one of its top neurosurgeons was improperly receiving kickbacks from his use of implantable devices distributed by his physician-owned distributorship (POD). Sanford allegedly received warnings from the neurosurgeon’s physician colleagues and others about the alleged kickback scheme and was aware of the heightened compliance risks associated with PODs. In addition, the neurosurgeon’s colleagues and others repeatedly warned Sanford that the neurosurgeon was performing medically unnecessary procedures involving the devices in which he had a substantial financial interest. The United States alleged that, despite these repeated warnings, Sanford continued to employ the neurosurgeon, continued to allow him to profit from the devices he used in surgeries performed at Sanford, and continued to submit claims to federal healthcare programs for these surgeries, including procedures that were medically unnecessary.
“Kickback schemes and other improper financial incentives create inherent conflicts of interest and warp the medical decision-making process,” said U.S. Attorney Ron Parsons for the District of South Dakota. “This office will continue to aggressively pursue anyone who colludes to violate federal law and compromise the integrity of our healthcare system.”
Contemporaneous with the civil settlement, Sanford entered into a Corporate Integrity Agreement (CIA) with the Department of Health and Human Services Office of Inspector General. The CIA requires, among other things, that Sanford maintain a compliance program, implement a risk assessment program, and hire an Independent Review Organization to review Medicare and Medicaid claims at Sanford Medical Center. It also increases individual accountability by requiring compliance-related certifications from Sanford Medical Center’s board of directors and key executives.
“More than six years ago the Department of Health and Human Services Office of the Inspector General warned in a fraud alert that PODs were inherently suspect under the Anti-Kickback Statute. Unfortunately, these distributors remain questionable,” said Curt L. Muller, Special Agent in Charge, Office of Inspector General at the U.S. Department of Health and Human Services (HHS-OIG). “Patients in government healthcare programs rightly expect that surgeries are medically indicated, not performed to increase provider profits.”
The settlement resolves allegations originally brought in a lawsuit filed by Drs. Carl Dustin Bechtold and Bryan Wellman, surgeons at Sanford, under the whistleblower, or qui tam, provision of the False Claims Act, which allows private parties to bring suit on behalf of the government and to share in any recovery. The whistleblowers will receive $3.4 million of the settlement proceeds.
The settlement was the result of an investigation by the Department of Justice’s Civil Division, the U.S. Attorney’s Office for the District of South Dakota, and HHS-OIG. As part of the settlement, Sanford has agreed to cooperate with the Department of Justice in litigation related to alleged co-defendants, and the hospital system has taken various remedial steps, including terminating the employment of the neurosurgeon in question and prohibiting all Sanford physicians from profiting from their use of medical devices at Sanford.
The lawsuit is captioned United States ex rel. Bechtold, et al. v. Asfora, et al., No. 4:16-cv-04115-LLP (D.S.D.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Saint Paul Felon Sentenced to 110 Months in Prison for Violent Attempted Robbery, Drug-Trafficking and Multiple Firearms ViolationsRead the Press Release
United States Attorney Erica H. MacDonald announced the sentencing of MICHAEL CORTEZ REED, 27, to 110 months in prison for the violent attempted robbery of a Walgreens pharmacy, as well as drug-trafficking and firearms violations. REED, who pleaded guilty to five felony counts on June 21, 2019, was sentenced today before Senior Judge David S. Doty in U.S. District Court in Minneapolis, Minnesota.
According to his guilty plea and documents filed in court, on August 27, 2017, REED entered a Walgreens pharmacy in St. Paul, Minnesota, violently assaulted a store employee and forced the employee to open to store’s drug vault in an attempt to steal controlled substances. The employee told REED that the vault was on a time-delay and that it could not be opened. REED ran out of the store when the store manager confronted him. REED also admitted that between September 13, 2017 and September 5, 2018, he was in possession of over 25 grams of methamphetamine, small amounts of heroin and cocaine, and three firearms, including a Ruger model P95DC nine-millimeter semi-automatic firearm, a Phoenix Arms model Raven 25 .25-caliber semi-automatic pistol, and a Kahr Arms model P380 .380-caliber semi-automatic pistol. The Ruger firearm was loaded with an extended 30-round magazine attached to it, and the Kahr Arms firearm had been previously reported stolen. Because he is a felon, REED is prohibited under federal law from possessing any type of firearm or ammunition at any time.
The Hobbs Act, passed by Congress in 1946, allows federal prosecutors to prosecute individuals who commit robberies of businesses engaged in interstate commerce.
This case was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Saint Paul Police Department. This case is part of Project Safe Neighborhoods, an initiative that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.
Assistant United States Attorneys Benjamin Bejar and Thomas Calhoun-Lopez prosecuted the case.
Defendant Information:
MICHAEL CORTEZ REED, a/k/a “Hyphy,” 27
St. Paul, Minn.
Convicted:
- Attempted interference with commerce by robbery (Hobbs Act), 1 count
- Felon in possession of a firearm, 3 counts
- Possession with intent to distribute methamphetamine, 1 count
Sentenced:
- 110 months in prison
- Five years of supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Postal Employee Pleads Guilty to Theft of Mail MatterRead the Press Release
Cassandra Rheuport, 30, from Rolfe, Iowa, pled guilty to theft of mail by a postal employee, on October 23, 2019, in United States District Court in Sioux City.
Rheuport admitted that from about February 2018 through July 28, 2018, she opened mail and/or stole mail entrusted to her as an employee of the United States Postal Service. Rheuport stole at least $395, as well as narcotic medications prescribed for others. At the time of the thefts, Rheuport was a city carrier assistant assigned to the Pocahontas Post Office.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Rheuport remains free on bond previously set pending sentencing. Rheuport faces a possible maximum sentence of 5 years’ imprisonment without the possibility of parole, a fine of up to $250,000, a mandatory special assessment of $100, and a term of supervised release of up to one year following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Ron Timmons and was investigated by the U.S. Postal Service Office of Inspector General Office of Investigations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is CR19-3051. Follow us on Twitter @USAO_NDIA.
Owner of New Jersey Tax Return Preparation Business Sentenced to Prison for Tax FraudRead the Press Release
A Keasbey, New Jersey, tax return preparer was sentenced to 29 months in prison today for filing false tax returns on behalf of clients and failing to file his own tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Craig Carpenito of the District of New Jersey.
According to documents filed in this case and statements made in court, David Patterson, 38, owned and operated D&D Tax Service LLC, a tax preparation business. Through the firm, he prepared fraudulent tax returns for tax year 2012 in which he knowingly falsified his clients’ medical and dental expenses, gifts to charity, and unreimbursed employee expenses. At times, he took portions of his clients’ tax refunds and deposited them without authorization into bank accounts he maintained or controlled. Patterson also failed to file individual income tax returns for himself, and to pay federal income taxes, for 2013 through 2015.
In addition to the prison term, Judge Salas sentenced Patterson to one year of supervised release and ordered restitution of $290,321 to be paid to the IRS.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Carpenito thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorney Eric Powers and Assistant U.S. Attorney Jonathan M. Peck, who prosecuted this case.
Additional information about the Tax Division and its enforcement efforts can be found on the division’s website.
Operation Free Market Update: Huntington Woman Pleads Guilty to Federal Drug ConspiracyRead the Press Release
HUNTINGTON, W.Va. – A Huntington woman pled guilty today to a federal drug conspiracy charge, announced United States Attorney Mike Stuart. Maechelle Relf, 27, entered a guilty plea to an indictment charging her with conspiracy to distribute heroin and fentanyl.
“Relf is one of seven defendants charged in Operation Free Market,” said United States Attorney Mike Stuart. “During the investigation of this drug network operating between Detroit and Huntington, law enforcement seized approximately 130 grams of fentanyl and 120 grams of heroin.”
Relf admitted that between December 2018 and May 2019 she conspired with other individuals to distribute heroin and fentanyl in Huntington, West Virginia. Relf admitted that she would travel to Detroit, Michigan to obtain heroin for George Lockhart for him to sell in Huntington.
Relf faces up to twenty years in federal prison when she is sentenced on February 3, 2020.
Operation Free Market was a long-term drug investigation in the Huntington area. The investigation was the result of a joint effort by the Drug Enforcement Administration and the Violent Crime and Drug Task Force West.
The plea hearing was held before United States District Judge Robert C. Chambers. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
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Officials from the U.S., Canada and Mexico Participate in 2019 Trilateral Meeting in Ottawa to Discuss Antitrust EnforcementRead the Press Release
Assistant Attorney General Makan Delrahim of the U.S. Department of Justice Antitrust Division, President Alejandra Palacios of the Mexican Federal Economic Competition Commission, Federal Trade Commission Chairman Joseph J. Simons and Canadian Commissioner of Competition Matthew Boswell.The heads of the antitrust agencies of the United States, Canada and Mexico met today in Ottawa, Canada, to hold an annual dialogue on antitrust enforcement and policy priorities.
The meeting included Assistant Attorney General Makan Delrahim of the U.S. Department of Justice Antitrust Division, Federal Trade Commission Chairman Joseph J. Simons, Canadian Commissioner of Competition Matthew Boswell and President Alejandra Palacios of the Mexican Federal Economic Competition Commission.
The discussions covered a range of topics including enforcement and collaboration involving digital markets, updates on agency developments, international cooperation and challenges to antitrust enforcement faced by each agency.
“International collaboration is a vital part of the work of the Antitrust Division and it is especially important for us to maintain close relationships with our enforcement partners next door,” said Assistant Attorney General Delrahim. “Our shared tradition of cross-border collaboration helps ensure a competitive marketplace for consumers throughout North America.”
“As the economies of the U.S., Canada, and Mexico become increasingly interconnected, it is vital that we cooperate closely with our Canadian and Mexican counterparts on emerging digital economy competition matters and other issues of mutual concern,” said FTC Chairman Simons. “As today’s meeting demonstrates, our close cooperation can serve as a model for the world.”
The meetings build on the foundations built by the 1995 cooperation agreement between the United States and Canada, the 2000 agreement between the United States and Mexico and the 2001 agreement between Canada and Mexico. The agreements commit the antitrust agencies to cooperate and coordinate with each other to make their antitrust policies and enforcement as consistent and effective as possible.
Newport Beach Man Gets Federal Prison Time for Stealing Endangered Ring-Tailed Lemur from Santa Ana ZooRead the Press Release
SANTA ANA, California – An Orange County man was sentenced today to three months in federal prison for breaking into the Santa Ana Zoo after hours and stealing North America’s oldest ring-tailed lemur in captivity to keep the endangered animal as his pet.
Aquinas Kasbar, 19, of Newport Beach, was given the 90-day prison sentence by United States District Judge Andrew J. Guilford, who also ordered him to pay $8,486 in restitution to the zoo.
Kasbar pleaded guilty on July 8 to one misdemeanor count of unlawfully taking an endangered species. He broke into the Santa Ana Zoo on July 27, 2018 after it had closed for the day. He then used bolt cutters to cut a hole in the zoo’s enclosures for lemurs and capuchin monkeys, which enabled several of the animals to escape, though they were later recovered.
While inside the zoo, Kasbar stole Isaac, a 32-year-old, ring-tailed lemur (lemur catta) and the oldest such lemur in captivity in North America. (Isaac turned 33 years old in July; a lemur’s lifespan typically is between 20 years and 25 years.) The ring-tailed lemur is native to Madagascar and is on a list of the 25 most endangered primates, according to court documents. Ring-tailed lemurs are endangered, in part, because of the illegal pet trade, court papers state.
Kasbar then placed Isaac in a plastic drawer that lacked ventilation holes, court papers state. The next day, Kasbar abandoned the animal in front of a Newport Beach hotel, leaving him in the same plastic drawer with two notes placed on it, which read, “Lemur (with tracker)” and “This belongs to the Santa Ana Zoo it was taken last night please bring it to police,” according to court documents. Kasbar’s actions resulted in a loss to the Santa Ana Zoo of approximately $8,486. Isaac later was returned unharmed to the zoo.
his case was investigated by the FBI, the U.S. Fish and Wildlife Service, the Newport Beach Police Department, and the Santa Ana Police Department.
This matter was prosecuted by Assistant United States Attorneys Daniel H. Ahn of the Santa Ana Branch Office and Erik M. Silber of the Environmental and Community Safety Crimes Section.
New Haven Man Pleads Guilty to Heroin Trafficking Charge, Faces 10 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that BRIAN K. BACKMAN, also known as “B,” “NYB” and “New York B,” 54, of New Haven, pleaded guilty today in New Haven federal court to a heroin trafficking offense.
This matter stems from an investigation headed by the FBI’s New Haven Safe Streets/Gang Task Force and New Haven Police Department that targeted drug trafficking and related acts of violence by members, former members and associates of the “Island Brothers” street gang in New Haven. The investigation, which included court-authorized wiretaps and controlled purchases of narcotics, also revealed that the drug trafficking organization had established a base of operation in Fitchburg, Massachusetts. The investigation subsequently identified a second drug trafficking network that involved the large-scale distribution of heroin.
During the investigation, Backman was identified as a supplier of heroin to members of the New Haven drug trafficking organization. Backman was intercepted over multiple wiretaps discussing the acquisition of heroin from a supplier in New York for redistribution in and around New Haven. On June 16, 2019, Backman sent a courier to pick up approximately 10,000 bags of heroin from a New York supplier. The courier and another co-conspirator were arrested after the courier arrived with the drugs at a Hamden parking lot.
On July 9, 2019, a grand jury in New Haven returned a 15-count indictment charging Backman and 24 other individuals with various offenses. Backman has been detained since his arrest on July 10, 2019.
Backman pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute one kilogram or more of heroin, and offense that carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life. He is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on January 13, 2020, in Hartford.
This matter is being investigated by the FBI’s New Haven Safe Streets/Gang Task Force, New Haven Police Department, Milford Police Department, Hamden Police Department, East Haven Police Department, Connecticut State Police, Connecticut Department of Correction and the U.S. Drug Enforcement Administration.
This case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan, Peter D. Markle and Elena L. Coronado.
Missouri Man Sentenced to Nearly Two Years in Prison for His Role in “Field of Schemes” Organic Grain Fraud Involving More than $120 Million in Total Fraudulent SalesRead the Press Release
A Missouri man who assisted in perpetrating the largest organic grain fraud scheme in United States history was sentenced today to nearly two years in federal prison. Another Missouri man and three farmers from Nebraska were previously sentenced to federal prison for their roles in a scheme to defraud customers across the country.
John Burton, age 52, from Clarksdale, Missouri, received the prison term after a May 10, 2019 guilty plea to one count of conspiracy to commit wire fraud. Evidence at sentencing showed that Burton grew grain that was not organic and sold it to Randy Constant, knowing that Constant was going to market and sell the grain as organic. By selling his grain to Constant, Burton was able to receive a premium, selling the grain for more than he could have on the open market. Burton also worked for Constant, raising grain on farm fields that Constant either owned or rented. While doing this work, Burton often sprayed Constant’s fields with chemicals and fertilizers, even though he knew those substances were not allowed on organic fields. Burton either sold or raised over $5,000,000 in crops for Constant. Overall, Constant’s scheme involved at least $142,433,475 in grain sales, and the vast majority of those sales were fraudulent in that the grain he sold was not organic even though it was marketed as organic.
Burton was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Burton was sentenced to 22 months’ imprisonment. He was also ordered to forfeit over $1,000,000 in proceeds from his crime and was ordered to pay a $100,000 fine.
The case was prosecuted by Assistant United States Attorneys Jacob Schunk and Anthony Morfitt and investigated by the United States Department of Agriculture – Office of Inspector General and the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number are 19-CR-2025.
Follow us on Twitter @USAO_NDIA.
Mississippi Man Sentenced to Federal Prison for Defrauding Baton Rouge BusinessesRead the Press Release
United States Attorney Brandon J. Fremin announced today that U.S. Chief Judge Shelly D. Dick sentenced Bruce Aaron Boulton, age 49, of Woodville, Mississippi, to 51 months in federal prison following his conviction for mail fraud and wire fraud. The Court further sentenced Boulton to three years of supervised release following his term of imprisonment, and ordered him to pay restitution in the amount of $584,142.70.
According to admissions made during his guilty plea, Boulton was employed by Kleinpeter Farms Dairy, LLC, as a safety and fleet manager from 2013 to 2015. During the course of his employment with Kleinpeter, Boulton created false and fictitious companies for the purpose of defrauding Kleinpeter. He then created fraudulent invoices from these companies which he used to bill Kleinpeter, and which reflected repairs on Kleinpeter vehicles that were not actually performed. This caused Kleinpeter to issue checks to Boulton’s fictitious companies which were then deposited into a bank account he controlled. This scheme caused Kleinpeter to pay him approximately $305,373 to which he was not entitled.
Boulton then continued his scheme with Angelle Concrete Group, LLC (“Angelle”), one of the largest producers of ready-mix concrete in the greater Baton Rouge area. At Angelle, Boulton was employed as an Assistant Fleet Manager from June of 2015 until January of 2018. While at Angelle, Boulton again created fictitious companies for the purpose of defrauding Angelle. As part of his scheme, Boulton created and submitted fraudulent invoices and monthly expense reports. These fraudulent billings caused Angelle to pay Boulton for work his fictitious companies never actually performed on Angelle’s vehicles and equipment. Boulton’s scheme caused Angelle and its insurance company to suffer a loss of $278,769.56.
U.S. Attorney Fremin stated, “My office will continue to aggressively pursue those who use their positions of trust to steal from their employers. Such betrayal often risks the financial livelihoods of their co-workers and may threaten the financial integrity of their employers. I am proud of our prosecutors and the special agents from the United States Secret Service who worked on this very important matter.”
Tara McLeese, Resident Agent in Charge of the United States Secret Service in Baton Rouge praised the efforts of investigators and the talented prosecutors from the United States Attorney’s Office for bringing Boulton to justice. McLeese said, “Financial crimes are not victimless crimes and have real impact on our community. Today’s sentencing reflects the aggressive efforts of the United States Secret Service and our partners, to combat financial based crimes in the Middle District of Louisiana.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the United States Secret Service and prosecuted by Assistant United States Attorney Peter J. Smyczek.
Minot Air Force Base Man Sentenced on Charges of Distribution of Child PornographyRead the Press Release
Bismarck – U.S. Attorney Drew H. Wrigley announced that Chief Federal District Court Judge Daniel L. Hovland today sentenced Carl Deshawn Dean, age 21, Minot Air Force Base, ND to serve 7 years in prison, followed by 10 years of supervised release, after Dean plead guilty to Distribution of Images Depicting the Sexual Exploitation of a Minor. The defendant was also ordered to pay $3,000 in restitution and $100 in special assessments to the Crime Victim’s Fund.
Between December 2016 and March 2, 2018, while serving as an Airman at the Minot Air Force Base, Dean solicited, received, and distributed child pornography. As part of his illicit efforts, Dean created a fake female persona, and communicated with numerous individuals around the world in order to receive images of child pornography. The Air Force Office of Special Investigations (AFOSI) investigation determined, through its investigation, that Dean sought out multiple individuals who had access to children and asked if these individuals would be willing to take nude photographs of or participate in sexual acts with these children.
AFOSI reviewed Dean’s electronic media and determined that he possessed 878 images and 42 videos of apparent child pornography; of which 693 unique images and 15 unique videos matched known child pornography images. Dean used social networking and instant messaging applications, including Gmail, Facebook, Google Hangouts, Snapchat, and WhatsApp to solicit child pornography. Additionally, Dean shared images and videos of child pornography between 200 to 300 times. Finally, on approximately 15 occasions, Dean used messaging applications to create or record files from children he coerced to send him sexual images.
“The defendant deviously utilized electronic and social media platforms to illegally trade in vile images of sex crimes committed against children,” said U.S. Attorney Drew Wrigley, “we commend the investigators in this case, as we work together to aggressively prioritize protecting children and someday eradicating the child pornography industry.”
On July 31, 2019, Dean pleaded guilty to distribution of child pornography.
This case was investigated by the United States Air Force Office of Special Investigations and the Minot Police Department.
Assistant United States Attorney Jonathan J. O’Konek prosecuted the case.
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Middlesex County Tax Preparer Sentenced to 29 Months in Prison for FraudRead the Press Release
NEWARK, N.J. – A Keasbey, New Jersey, tax preparer was sentenced today to 29 months in prison for filing a false tax return for two clients and failing to file a tax return, U.S. Attorney Craig Carpenito announced.
David Patterson, 38, previously pleaded before U.S. District Judge Esther Salas to one count of aiding and assisting in the preparation of a false tax return and one count of willfully failing to file his own tax return. Judge Salas imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Patterson owned and operated D&D Tax Service LLC, a tax preparation business located in Keasbey. He admitted to preparing a fraudulent tax return on behalf of two clients for tax year 2012 in which he knowingly falsified the clients’ medical and dental expenses, gifts to charity, and unreimbursed employee expenses. Patterson admitted that at times he split portions of his clients’ tax refunds into bank accounts he maintained or controlled. He also admitted that he failed to file an individual income tax return for himself, and pay federal income taxes, for calendar year 2013.
In addition to the prison term, Judge Salas sentenced Patterson to one year of supervised release and ordered him to pay restitution of $290,321 to the United States. He is also not permitted to run a tax preparation business until the end of his supervised release.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur in Newark and special agents of the U.S. Attorney’s Office, District of New Jersey, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jonathan M. Peck of the U.S. Attorney’s Office and Trial Attorney Eric B. Powers of the Department of Justice Tax Division.
Defense counsel: James Friedman Esq., New Brunswick, New Jersey
Manhattan Man Pleads Guilty to Sex TraffickingRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that WILLIAM BAZEMORE pled guilty today to sex trafficking of a female victim by force, fraud, or coercion. BAZEMORE pled guilty before U.S. District Judge Analisa Torres.
U.S. Attorney Geoffrey S. Berman said: “William Bazemore used violence and coercion to force a woman to engage in commercial sex for his own profit. With Bazemore’s guilty plea today, we seek to deliver justice for a victim of sex trafficking and exploitation, and to deter others from engaging in this heinous criminal conduct.”
According to the Indictment, as well as statements made during BAZEMORE’s plea proceeding:
In or about 2017, BAZEMORE was the leader of a criminal enterprise (the “Organization”) involved in various criminal acts, including drug distribution and sex trafficking, in and around New York City, Maine, and Connecticut. Members and associates of the Organization transported heroin and crack cocaine between New York, Connecticut, and Maine, at times using women suffering from drug addiction as drug couriers to secrete drugs on their persons and transport drugs and drug proceeds in vehicles controlled by the Organization. In addition, BAZEMORE and other members and associates of the Organization used force and coercion to cause a female drug customer (“Victim-1”) to engage in commercial sex for their financial gain, and took actions to prevent Victim-1 and others from cooperating with law enforcement against the Organization.
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BAZEMORE, 39, of New York, New York, was arrested on March 3, 2019, while in state custody in Maine, and has been in federal custody since. BAZEMORE pled guilty to one count of sex trafficking by force, fraud, or coercion, which carries a maximum sentence of life in prison and a mandatory minimum sentence of 15 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
BAZEMORE is scheduled to be sentenced by Judge Torres on March 12, 2020.
BAZEMORE’s co-defendant, Warren Bryant, is scheduled for trial on December 9, 2019.
Mr. Berman praised the outstanding investigative work of the Federal Bureau of Investigation, the New York City Police Department, and the Special Agents of the U.S. Attorney’s Office for the Southern District of New York.
This case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Jacqueline Kelly, Danielle Sassoon, and Lauren Schorr Potter are in charge of the prosecution.
Man Pleads Guilty to Escape from A Correctional Facility, Bank Robbery and CarjackingRead the Press Release
LAS VEGAS, Nev. — William Etheridge, 56, pleaded guilty today to 11 counts of bank robbery, carjacking, and escape, U.S. Attorney Nicholas A. Trutanich announced.
According to court documents, on May 18, 2017, Etheridge escaped from the Northwest Regional Reentry Center, a contracted correctional facility of the Federal Bureau of Prisons in Oregon, where he was in custody for a federal bank robbery conviction. Shortly after his escape, between June 2, 2017 and July 19, 2017, Etheridge robbed nine banks in Oregon and Washington, and attempted to rob another bank in Oregon.
On July 25, 2017, Etheridge, armed with a black pellet gun, stole $18,120 from a WestStar Credit Union in Las Vegas. He then demanded a ride in one of the victim tellers’ cars. When none of the tellers volunteered to provide him with a ride, he told one of the tellers to leave the bank with him. Upon leaving the bank, Etheridge used force and violence to carjack a vehicle with two victims inside. At Etheridge’s request, the victims dropped him off at a motorcycle dealership in Las Vegas to purchase a motorcycle for use as a getaway vehicle. Shortly thereafter, law enforcement arrested Etheridge at the dealership.
This case was the product of an investigation by the FBI and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Nicholas Dickinson is prosecuting the case.
Etheridge was investigated in three federal jurisdictions for his crimes, including the District of Nevada, the Western District of Washington, and the District of Oregon.
Etheridge is scheduled to be sentenced by U.S. District Judge Jennifer A. Dorsey on January 27, 2020. Etheridge faces a maximum statutory penalty of 20 years in prison and a $250 fine for the bank robbery charge; 15 years in prison and a $250,000 fine for the carjacking charge; and five years in prison and a $250,000 fine for the escape charge. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
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Lengthy Prison Sentences Handed Down in Continuing Violent Crime Investigations in Public Housing AreasRead the Press Release
NASHVILLE, Tenn. – October 28, 2019 – Four Nashville men received lengthy prison sentences last week for a series of violent crimes connected to investigations in or near the J.C. Napier and Tony Sudekum public housing developments, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Rodrecus M. Smith, aka, Lil Rod, 31, was sentenced on Thursday to 34 years in prison in connection with the October 2013 murder of Mario McKnight, during the robbery of another person. On that day, Smith had gone to a home in the Edgehill community of Nashville to rob a drug dealer during a high stakes dice game. Armed with a Mac/Tek style firearm with an extended magazine, Smith robbed the drug dealer of $5,000 and pointed the weapon at others, threatening to shoot anyone who interfered.
During the robbery, Mario McKnight was in the immediate area picking up laundry from a dry cleaning van and in an attempt to escape the violence, he jumped into the back of the van and urged the driver to leave the area. As the van drove past, Smith fired into the van, striking McKnight and killing him. Smith was then driven away from the area by Martez Parham, who conspired with Smith to commit the robbery. Smith was subsequently indicted on state charges but remained a fugitive until June 2014, when he was arrested by the U.S. Marshals Fugitive Task Force. Smith was indicted by a federal grand jury in June 2016. While in custody and awaiting trial, Smith made numerous attempts to prevent witnesses from testifying against him. During the third day of a jury trial in December 2018, Smith abruptly pleaded guilty to all charges, including conspiracy to commit robbery affecting commerce; carrying, brandishing and discharging a firearm resulting in death; possession of ammunition by a convicted felon; and two counts of witness tampering.
Darryl Starks, 35, was sentenced on Thursday to 15 years in prison. Starks was charged in connection with four shootings, all of which occurred in or adjacent to the J.C. Napier neighborhood, three of which were precipitated by Starks’ belief that Martez Parham had been involved in the robbery and murder in the Edgehill incident described above, which resulted in the death of Starks’ friend, Mario McKnight. Starks pleaded guilty to the charges in April 2017.
Starks participated in the shooting of Joshua Woods on October 16, 2014, whom he believed to have sided with Parham during a physical altercation between Starks and Parham. Woods was shot multiple times but survived.
On March 23, 2015, Starks shot into a vehicle with a 12-gauge shotgun, after becoming involved in another physical altercation during a dice game. No one was injured during that incident.
On July 16, 2015, Starks drove another person through the J.C. Napier neighborhood looking for Martez Parham and Ernest Eddie. That person was armed with a semi-automatic handgun and intended to shoot them. Upon seeing them, the individual fired at them and missed, but struck a woman who was holding a young child in her arms. The bullet struck the woman in the head and caused life-threatening injuries.
A few hours later, during the early morning hours of July 17, 2015, Starks returned to the J.C. Napier neighborhood with Terrance Kimbrough, armed with a rifle and a shotgun. Starks and Kimbrough engaged in a shootout with the brother of the female victim shot earlier. Two other innocent women were struck by gunfire during this incident and received medical treatment. Starks and Kimbrough were taken into custody on July 28, 2015, after an extensive manhunt by law enforcement. Kimbrough was previously sentenced in March to 42 years in prison.
Ernest Eddie, 30, was sentenced on Wednesday, to 61 months in prison. Eddie was indicted in August 2015, with being a convicted felon in possession of a firearm, in connection with the shooting incident on July 16, 2015. Through witness interviews and social media posts, investigators determined that Eddie, and Martez Parham, had been in possession of a .45 caliber handgun during this incident. Eddie pleaded guilty in September 2015.
Martez Parham, 27, was also sentenced on Wednesday to 27 years in prison for the robbery and conspiracy; witness tampering; and being a convicted felon in possession of firearms. Parham pleaded guilty in May 2017.
These cases were investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Metropolitan Nashville Police Department and prosecuted by Assistant U.S. Attorneys Sunny A.M. Koshy and Philip H. Wehby. This is part of an on-going effort to curb violent crime in the public housing areas of Nashville and investigations are continuing.
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Leader of the Castro Enterprise Involved in Armed Home Invasions that Targeted Victims of Indian and Asian Ancestry Sentenced to PrisonRead the Press Release
A Texas woman was sentenced to 37 years in prison for her role as the leader of several robbery crews that traveled across the United States in order to conduct armed home invasions of families of Indian and Asian descent. Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Agent in Charge Steven M. D’Antuono of the FBI’s Detroit Field office made the announcement.
Chaka Castro, 44, of Houston, Texas, was sentenced by U.S. District Court Judge Laurie J. Michelson of the Eastern District of Michigan, who presided over the trial. After a five-week trial, Castro was convicted of one count of Racketeer Influenced and Corrupt Organizations (RICO) conspiracy, four counts of assault with a dangerous weapon in aid of racketeering and four counts of use of a firearm during and in relation to a crime of violence.
According to evidence presented at trial, from 2011 to 2014, Castro and her robbery crews committed a string of home invasions in Georgia, New York, Ohio, Michigan and Texas. The leader of the robbery crews was Castro, who would generate lists of robbery targets in various states around the county, specifically families of Asian and Indian ancestry, and then assign crews to carry out the armed robberies of these families within their homes. Once Castro assigned a crew to a particular area, members of the group would travel to that location, conduct surveillance and execute the robberies. The crews utilized a particular modus operandi in each of the robberies. They disguised their appearance with clothing and bandanas so that victims of their robberies would have difficulty identifying them. They would openly carry and brandish firearms to gain control of the victims and then immediately corral the victims, including children, into one location in the home. At least one robber would then restrain the victims with duct tape and threats of violence, as another partner would ransack the home in search of cash, jewelry and electronics to steal. The group organized their trips to involve multiple home invasion robberies over a series of days.
The FBI’s Ann Arbor Office investigated the case with the assistance of federal agencies including U.S. Immigrations and Customs Enforcement’s Homeland Security Investigations, U.S. Secret Service and local law enforcement agencies in Michigan, including Washtenaw County Sherriff’s Office, Ann Arbor Police Department and Canton Police Department; local law enforcement agencies in Ohio, including Beachwood Police Department; local law enforcement agencies in Georgia, including the Cobb County District Attorney’s Office, Cobb County Police Department, Gwinnett County Police Department, Duluth Police Department and Milton Police Department; local law enforcement agencies in New York, including Nassau County Police Department; the Tennessee Highway Patrol and local law enforcement agencies in Texas including Allen Police Department, Coppell Police Department, Flower Mound Police Department, Carrollton Police Department, Lewisville Police Department and Southlake Police Department.
Trial Attorneys Marianne Shelvey and Beth Lipman of the Criminal Division’s Organized Crime and Gang Section prosecuted the case.
Law Enforcement Authorities to Host 11th Annual Cybercrime Prevention Symposium for Educators, Parents and StudentsRead the Press Release
LOS ANGELES – The United States Attorney’s Office, the FBI, and a coalition of law enforcement agencies and community organizations today are hosting the 11th Annual Cybercrime Prevention Symposium at the California Endowment in downtown Los Angeles. The day-long seminar for more than 400 educators, parents, and middle and high school students will present a wide array of information on cyber safety, technology crime and digital reputation.
This year’s Symposium will address a wide range of cybercrime topics with law enforcement and community speakers conducting age-appropriate interactive discussions on issues including smartphone safety, online behavior, online exploitation, harassment and peer pressure of children and teens, digital reputation, cyberbullying, internet dangers, and sextortion.
Highlights of today’s Symposium will include a collaborative presentation by students from the Theatre Department at California State University, Northridge called “Improvising Online,” and the traditional lunchtime appearance of surprise celebrity guests from Disney television programs.
“Cyberspace has become a dangerous place for adults and children alike. It is incumbent on law enforcement to provide the community with the necessary skills to stay safe in this online world,” said United States Attorney Nick Hanna. “This important Symposium plays a vital role in presenting a variety of relevant approaches and tactics that will guide children and adults to safer online behavior.”
“Say ‘no’ to anyone who pressures you online for sexual images or information about yourself, and say something to a trusted adult if your information has been compromised,” said Paul Delacourt, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “We urge parents to monitor their child’s activity online, discuss the speed with which information spreads on the Internet, and ensure awareness of the life-altering consequences of making the wrong choices. Our annual Cyber Symposium in Los Angeles provides us an opportunity to teach hundreds of kids about the latest dangers targeting them online so that they can serve as ambassadors in their communities and help us prevent the ability of sexual predators to operate in cyberspace.”
Cybercrime Safety Challenge 2018-2019 awards will be presented at the Symposium to the winning schools from last year’s contest. The Technology and Research Award will be presented to Our Lady of Refuge School in Long Beach. The Impact Award will be given to St. Charles Borromeo School in North Hollywood, and the Creativity Award will be awarded to St. Thomas More School in Alhambra.
“The Archdiocese of L.A. is proud to be a partner in this ongoing and collaborative effort to keep young people safe online – we are especially grateful that students in our schools are taking what they learn at the symposium and transforming that knowledge into creative and impactful programs they then deliver at their parishes and schools,” said Heather T. Banis, Victims Assistance Ministry Coordinator for the Archdiocese of Los Angeles.
Student teams from each of the schools attending this year’s Symposium will be invited to participate in the 9th Annual Cyber safety Challenge. This contest asks students to develop a cyber safety program at their respective schools to educate the entire student body on the various risks associated with cybercrime. The contest promotes good cyber etiquette by challenging students to engage in creating the cyber safety programs. Students participating in this challenge will have their contest entries judged by a panel of experts, and the winning school will be announced in June 2020.
“With the ever emerging new frontiers of technology can also come peril,” said Los Angeles City Attorney Mike Feuer. “My office and our law enforcement partners continue to work tirelessly to keep our kids safe when they are online.”
Coming together under the umbrella of the Inter-Agency Council on Child Abuse and Neglect (ICAN), law enforcement agencies participating in this year’s Symposium include the United States Attorney’s Office, the FBI, the Los Angeles City Attorney’s Office, the Los Angeles County District Attorney’s Office, the Los Angeles County Sheriff’s Department and the Los Angeles Police Department - Internet Crimes Against Children Task Force (ICAC).
“Children growing up in this high tech age are being targeted by online predators at an alarmingly high rate,” said Deanne Tilton Durfee, Executive Director for the ICAN. “Each year, this Symposium provides participants with resources and tools to help children learn how to protect themselves and be safe in the cyber world, while enjoying all of the benefits of the fast-growing technologies.”
The Cybercrime Prevention Symposium is hosted this year by the Archdiocese of Los Angeles. The planning committee also includes representatives from Santa Monica-UCLA Medical Center, the Anti-Defamation League, Fox Entertainment Group, The Walt Disney Co., and Warner Bros. Entertainment.
Justice Department Welcomes Colorado Joining T-Mobile/Sprint SettlementRead the Press Release
Colorado is seeking to join the United States, Florida, Kansas, Louisiana, Nebraska, Ohio, Oklahoma and South Dakota in settling claims relating to the proposed merger of T-Mobile and Sprint, the Department of Justice announced today. The settlement requires a substantial divestiture package in order to enable a viable facilities-based competitor to enter the market. Further, the settlement will facilitate the expeditious deployment of multiple high-quality 5G networks for the benefit of American consumers and entrepreneurs.
“We are pleased that Colorado has left the New York and California litigation and is seeking to join our settlement,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “The merger, with the divestitures, will benefit Coloradoans and American consumers nationwide.”
The Department’s Antitrust Division and now eight co-plaintiff states have sued to block this transaction, and have agreed to settle the lawsuit based on the proposed settlement. That settlement, if approved by the court, would resolve the Justice Department’s and the co-plaintiff states’ competitive concerns.
Under the terms of the proposed settlement, T-Mobile and Sprint must divest Sprint’s prepaid business, including Boost Mobile, Virgin Mobile and Sprint prepaid, to Dish Network Corp., a Colorado-based satellite television provider. The proposed settlement also provides for the divestiture of certain spectrum assets to Dish. Additionally, T-Mobile and Sprint must make available to Dish at least 20,000 cell sites and hundreds of retail locations. T-Mobile must also provide Dish with robust access to the T-Mobile network for a period of seven years while Dish builds out its own 5G network.
T-Mobile US Inc. is a Delaware corporation headquartered in Bellevue, Washington. In 2018, T-Mobile posted revenues of more than $43 billion. Deutsche Telekom AG, a German corporation headquartered in Bonn, Germany, is the controlling shareholder of T-Mobile US Inc.
Sprint Corporation is a Delaware corporation headquartered in Overland Park, Kansas. In 2018, its posted revenue was over $32 billion. Sprint is controlled by SoftBank Group Corp., a Japanese Corporation headquartered in Tokyo, Japan.
Jennifer Dwyer Pleads Guilty to Embezzling over $2 Million from EmployerRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Jennifer Dwyer, 49, of St. Johnsbury, Vermont, pled guilty today in federal court to one count of wire fraud involving the embezzlement of approximately $2.2 million over a ten-year period from her Lyndonville employer, Northeast Agriculture Sales, Inc. (“NEAG”). U.S. District Judge Christina Reiss accepted Dwyer’s guilty plea and ordered her released pending sentencing. Sentencing is scheduled for February 11, 2020. At sentencing, Dwyer faces a maximum possible penalty of 20 years in prison. However, the sentence will be determined by the court with reference to the advisory U.S. Sentencing Guidelines.
According to the Indictment, NEAG is a family business established in 1987 with locations in Lyndonville, Vermont and Maine. Dwyer was NEAG’s bookkeeper from approximately 1998 to 2017. As bookkeeper, her responsibilities included customer billing, handling company accounts, and managing NEAG’s payroll system. By pleading guilty, Dwyer admitted that between 2007 and 2017, she embezzled approximately $2,221,079.47 from NEAG through unauthorized electronic transfers of funds from NEAG’s payroll account to her personal checking account. Dwyer used the misappropriated funds on on-line gambling and to pay personal debts and expenses.
As part of her plea agreement with the government, Dwyer stipulated that she embezzled $2.2 million dollars from NEAG, and that in doing so she abused a position of trust that allowed her to commit and conceal the embezzlement. The plea agreement obligates Dwyer to pay restitution of approximately $2.2 million to NEAG, and to make specified lump-sum restitution payments prior to sentencing. The plea agreement provides that should Dwyer fail to make those payments by the time of sentencing, specified items of personal property will be subject to forfeiture. As part of her agreement with the government, Dwyer has consented to the repossession and sale of a camper that she partially paid for with embezzled funds. She has further agreed to restitution payments equaling the value of her interest in two pick-up trucks and a tractor. Finally, Dwyer has agreed to pay restitution corresponding to the value of her interest in her home and land in St. Johnsbury.
The government previously forfeited Dwyer’s 2015 GMC Sierra 2500 truck as proceeds of the embezzlement. By agreement with the government, Dwyer also sold a 2016 Sea-Doo watercraft and trailer. The proceeds of the sale will be applied to restitution at the time of sentencing.
United States Attorney Christina E. Nolan noted: “Embezzlement by its very nature is a betrayal of trust. This family-owned Northeast Kingdom small business suffered a devastating loss and deception by a person it had employed for years. The U.S. Attorney’s Office is committed to rectifying such egregious wrongs and combatting large-scale frauds.”
“Plain and simple, this case is about greed and mistrust,” said James Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation. “Jennifer Dwyer chose to steal from the very people who gave her the opportunity to be a part of their family business. The FBI takes our responsibility very seriously to investigate and pursue those who commit fraud for personal gain and we will continue to work with our partners to hold them accountable.”
The Federal Bureau of Investigation conducted the investigation in this matter, with assistance from the Lyndonville Police Department.
This prosecution is being handled by First Assistant U.S. Attorney Kevin J. Doyle. Jennifer Dwyer is represented by Natasha Sen, Esq. of Brandon.
Ishpeming Woman Sentenced for CyberstalkingRead the Press Release
GRAND RAPIDS, MICHIGAN - Theresa Louise Harris, 56, of Champion, Michigan, was sentenced to serve 24 months in the Federal Bureau of Prisons for cyberstalking numerous victims in and around Marquette, Michigan. Chief U.S. District Judge Robert J. Jonker also imposed a two-year period of supervised release and a $10,000 fine.
From 2014 through August 2018, Harris continued a stream of harassment towards a former boyfriend and his family and friends consisting of thousands of unwanted contacts through spoofed phone calls, text messages, multiple fake Facebook accounts as well as many unsigned cards, letters and notes sent to the victim. Harris aided her harassment by hacking into multiple cell phone accounts and by creating fake social media accounts in the names of the victims and others. She collected personal information on the victims, including their social security numbers, dates of birth, and banking information. At sentencing, Harris apologized to the victim and his family and friends and acknowledged the harm that she had inflicted. Judge Jonker denied Harris’s request for leniency and observed that the persistent and pervasive conduct did not support a lesser sentence. As part of the sentence, Judge Jonker also ordered a mental health assessment and treatment for Harris.
U.S. Attorney Andrew Birge noted that October is Domestic Violence Awareness Month. “Cyberstalking is another form of mental and emotional abuse. The trauma inflicted can outlast physical scars. My Office is dedicated to protecting victims of domestic abuse, whether it manifests as physical assault or cyberstalking.”
The case was investigated by the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorneys Maarten Vermaat and Daniel Y. Mekaru.
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Iowa Man Cannot Run Away from Prison Time for Dealing DrugsRead the Press Release
A man who trafficked meth in Iowa and had numerous prior criminal convictions was sentenced October 23, 2019, to 14 years in federal prison.
Chase Kincaid Secrist, age 26, from Mechanicsville, Iowa, received the prison term after a May 6, 2019, guilty plea to conspiracy to distribute controlled meth.
In a plea agreement, Secrist admitted he was part of a conspiracy to sell methamphetamine in Iowa in 2018. In September 2018, officers attempted to stop Secrist while he was driving. Secrist refused to stop and then led officers on a high-speed chase. The chase lasted 23 minutes. During the chase, Secrist threw a gun and meth from his car.
Secrist’s criminal history includes a felony child endangerment conviction and a felony burglary conviction. Secrist has also been convicted multiple times for operating cars without owners consent, trespass, public intoxication, voluntary absence, possession of marijuana, disorderly conduct, criminal mischief, leaving the scene of an accident, and absence from custody
Secrist was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Secrist was sentenced to 168 months’ imprisonment. Secrist must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Secrist is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and investigated by, the Tipton Police Department, Cedar County Sheriff’s Office, Muscatine County Drug Taskforce, and the University of Iowa Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-cr-122.
Follow us on Twitter @USAO_NDIA.
Informational Seminar Held in Asheville Aims to Educate Veterans and Those Who Serve About Scams and Financial FraudRead the Press Release
ASHEVILLE, N.C. – The U.S. Attorney’s Office for the Western District of North Carolina and the FBI, in partnership with the AARP NC in the Mountain Region, the Buncombe County Sheriff’s Office and the Land of Sky Regional Council, hosted an informational seminar today in Asheville, to educate veterans and those who serve about financial scams and how to prevent becoming victims of fraud, announced U.S. Attorney Andrew Murray.
Scammers are targeting veterans at an alarming rate. According to a 2017 study conducted by the AARP, U.S. military veterans are twice as likely as nonveterans to fall victims of financial fraud. Of those surveyed, 80 percent of veterans reported being the target of a scam related to their military service.
Examples of financial fraud targeting veterans which were discussed during this morning’s informational session are:
- Benefits fraud and scams promoting secret” government benefits programs.
- Scams related to military records.
- Fundraising for fake military/veterans charities.
- Scams involving Veterans Affairs (VA) loans.
- Bogus investment schemes targeting older veterans to help “boost” their pensions.
- Identity theft.
“As a Coast Guard veteran, I am enraged that scammers are looking to get rich at the expense of our veterans and those currently serving our country. We have a responsibility to protect our brave servicemen and women and their families from financial exploitation and financial peril caused by scam artists. I want to thank the FBI, the AARP, the Buncombe County Sheriff’s Office, and Land of Sky Regional Council for partnering with us in this important mission. It’s time to take action and stop the fraud,” said U.S. Attorney Murray.
“AARP has a long history of safeguarding Americans’ financial security. We are proud to work with partners to empower those who have protected our country with the knowledge that they can use to protect themselves from frauds and scams that target veterans and their loved ones from their guaranteed benefits,” said Rebecca Chaplin, Associate State Director with AARP.
“The Area Agency on Aging at Land of Sky Regional Council was happy to partner with the Department of Justice/U.S. Attorney’s Office for the Western District of North Carolina, the FBI, and AARP to host this event. One of our goals is to reduce the criminal victimization of older adults and caregivers, including veterans. We want to decrease unwarranted fear and crime and improve the safety and quality of life for all. We do this through outreach opportunities as education is the key to prevention,” said LeeAnne Tucker, Director of the Area Agency on Aging.
Below are some tips shared with participants during the seminar on how to avoid falling victim to a financial scam:
- Don’t share personal information such as your social security number, with anyone you don’t know.
- Don’t pay a fee for obtaining your military records.
- Don’t be lured by “special deals” available only to veterans.
- Delete phishing emails and ignore harassing phone calls.
- Don’t give cash upfront in exchange for future pension payments.
- Don’t fall for a high-pressure sales pitch or a lucrative business deal.
- If a scammer approaches you, take the time to talk to other service members, or a family
member.
- Keep in mind that if you send money once, you’ll be a target for life.
- A good rule of thumb is, if it’s too good to be true, it’s likely a scam.
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In March 2019, the U.S. Attorney’s Office and the FBI announced the Western District’s Elder Justice Initiative, which aims to combat elder financial exploitation by expanding efforts to investigate and prosecute financial scams that target seniors; educate older adults on how to identify scams and avoid getting ripped off by scammers; and promote greater coordination with law enforcement partners.
U.S. Attorney Murray thanked the FBI, the AARP, the Buncombe County Sheriff’s Office, and the Land of Sky Regional Council for their assistance in organizing today’s seminar.
For more information about the U.S. Attorney’s Office Elder Justice Initiative, please visit: https://www.justice.gov/usao-wdnc/elder-justice-initiative.
To view our Public Service Announcement, please visit: https://youtu.be/qBGGAA7Mxbo
Indictments Unsealed Alleging Pay-To-Play Bribery Scheme by Manager, Trucking Companies at Utah FedEx Ground HubRead the Press Release
SALT LAKE CITY – Four indictments unsealed in U.S. District Court Monday afternoon allege several trucking companies in Utah paid more than $1 million in bribes to the Utah FedEx Ground hub manager as a part of a scheme to exploit the employee’s position within FedEx Ground (FXG) to make the trucking businesses as lucrative as possible. Ten individuals are charged in the indictments.
Announcing the indictments today are U.S. Attorney for Utah John W. Huber, Special Agent in Charge Paul Haertel of the FBI’s Salt Lake City Field Office, Special Agent in Charge Tara Sullivan of IRS-Criminal Investigation, Special Agent in Charge Jeffrey Dubsick of the U.S. Department of Transportation Office of Inspector General, and Michael Mentavlos, Special Agent in Charge of the Defense Criminal Investigative Service’s Southwest Field Office.
According to charging documents, FXG operates approximately 39 hubs or distribution centers to move packages around the country. One of the hubs is located in North Salt Lake City in Utah. FXG contracts with local trucking companies to transport packages on behalf of the company. Ryan Lee Mower, age 47, of Bountiful, was FXG’s highest-ranking employee in Utah from at least 2008 to October 2019. His primary responsibilities included overseeing the FXG contract service providers and ensuring that each local trucking company complied with FXG policies and regulations.
One of the four indictments, for example, alleges that by fraudulently obtaining runs, allowing unauthorized runs to continue, boosting miles and receiving payment for “ghost runs,” falsely reporting accidents, and falsely reporting miles to gain income – among other things, five co-conspirators received approximately $150 million in FedEx Ground revenue and paid $300,000 in bribes to Mower.
“Fair play, honest dealings, and transparency are core values in the American business landscape. Bribery and corrupt practices are not,” said U.S. Attorney John W. Huber. “The conduct alleged in the indictment not only runs counter to societal expectations for American business, it runs afoul of the laws of the United States. The alleged unjust enrichment comes at the expense of those who play by the rules in the market place.”
"These individuals allegedly exchanged bribes for business opportunities, and, as a result, lined their pockets with hundreds of millions of dollars spent on property, luxury cars, and other extravagances," said Paul Haertel, Special Agent in Charge of the FBI's Salt Lake City Field Office. "The FBI will never turn a blind eye to those who operate fraudulently because legitimate businesses should be allowed to compete on fair and level playing fields. The FBI is thankful for the collaboration of our law enforcement partners and the cooperation of FedEx to secure these indictments and arrests."
Tara Sullivan, Special Agent in Charge for IRS-Criminal Investigation said, “Ryan Mower allegedly received more than $1million in illegal income, which he did not claim on his tax returns, by taking bribes to provide an unfair advantage to other trucking companies. IRS Criminal Investigation is proud to assist its law enforcement partners in utilizing our unique financial investigative experience.”
“Maintaining public safety on our nation’s highways is paramount to protecting our families our economy and our way of life,” stated Jeffrey Dubsick, regional Special Agent-in-Charge of the U.S. Department of Transportation Office of Inspector General. “Motorists expect and deserve the highest standards of safety from trucking companies whose business is transporting goods on taxpayer-funded roads. The arrests in this case demonstrate our commitment to protecting the traveling public from commercial operators allegedly content with placing profit over public safety through actions that undermine important DOT regulations.”
"The Defense Criminal Investigative Service (DCIS) will aggressively pursue allegations of fraud and corruption impacting the Department of Defense (DoD)," stated Michael Mentavlos, Special Agent in Charge, Southwest Field Office. "Along with our Law Enforcement partners, DCIS is committed to safeguarding the integrity of precious taxpayer resources and will exhaust all appropriate criminal, civil and administrative actions against those individuals that choose to defraud the government and the DoD."
U.S. v Tuchinsky, Mower, et al
Six individuals are charged in one indictment with 16-counts of wire fraud conspiracy, promotional money laundering, and money laundering in connection with a 10-year conspiracy the indictment alleges started in 2009.
Charged in this indictment are Yevgeny Felix Tuchinsky, age 59, who has resides in Salt Lake City and San Diego, Alexsander Vasiliyevich Barsukov, age 52, of Salt Lake City, Konstantin Mikhaylovich Tomilin, age 50, who has homes in Salt Lake City and Pennsylvania, Leonid Isaakovich Teyf, age 58, of Raleigh, North Carolina, Felix Tsipelzon, age 48, of South Jordan, and Mower.
Five of the defendants were involved in some way with Salt Lake Trucking Group (SLTG). SLTG Ground is comprised of several trucking companies that contract to carry packages for FedEx Ground.
The indictment alleges the co-conspirators used Mower’s position to game FXG’s process governing the awarding of new runs and that Mower helped the co-conspirators grow their business larger than FXG allowed by submitting false information to FXG. Using Mower’s position, the co-conspirators falsified mileage reports and, on occasion, Mower would inflate or boost the number of weekly miles driven by one or more of the co-conspirators’ companies. Additionally, the trucking companies received payments from FXG for “ghost routes” never actually run by a trucking company, the indictment alleges.
The Salt Lake Trucking Group received about $150 million in FXG revenue during the approximate 10-year period of the conspiracy. During that same period, the indictment alleges the co-conspirators paid approximately $300,000 in bribes to Mower.
US v Ugarte and Mower
Hubert Ivan Ugarte, age, 52, of Draper and Mower are charged with four counts of wire fraud and six counts of money laundering in connection with the alleged bribery scheme. Ugarte owned and operated several trucking companies.
The indictment alleges that by fraudulently obtaining assigned runs, obscuring business ownership and growth, covering up failed contractual performances, and falsely reporting miles to gain unearned income, Ugarte’s companies received approximately $90 million in FXG revenue over the past eight years and paid Mower at least $490,000 in bribes, according to the indictment.
US v Kovacevic, Mower, et al
Davor Kovacevic, age 41, and Zlate Balulovski, age, 41, of West Jordan and Mower are charged with seven counts of wire fraud and three counts of money laundering in an indictment alleging that around April 2012, Kovacevic and Balulovski began bribing Mower. In exchange, Kovacevic and Balulovski asked for and received favors, preferential treatment, and assistance in defrauding FXG.
Kovacevic and Balulovski own and operate several trucking companies in Utah.
According to the indictment, the defendants used Mower’s position to game FXG’s process governing the awarding of new truck routes to FXG contract service providers, to falsify or boost mileage reports so that FXG paid the defendants’ companies more than they were entitled to, and to receive payments for “ghost routes” or runs never actually run by a trucking company.
As a result of the fraud, the indictment alleges the defendants’ companies received approximately $21,373,873 in FXG net revenue over the past seven and a half years and paid Mower approximately $165,000 in bribe payments.
US v Murdock and Mower
William Shayne Murdock, age 42, of Providence, Utah, and Mower are charged in a 10-count indictment with wire fraud, promotional money laundering, concealment money laundering, and money laundering. Murdock owns several trucking companies in Utah. Sometime around February 2014, Murdock began paying Mower bribes. In exchange, Murdock asked for and received favors and assistance in defrauding FXG, according to the indictment.
Fox example, at some time in 2014, one of Murdock’s trucking companies was awarded a FedEx freight run from Salt Lake City to Pennsylvania to Memphis. The indictment alleges Mower determined that based on FXG policies, he should have posted this run as an assigned run so that other contracted service providers could compete for the run. Mower did not post the run. He allowed Murdock trucking companies to operate the unauthorized assigned run for about five years.
By fraudulently obtaining assigned runs, obscuring business ownership and growth, and falsely reporting miles to gain unearned income, Murdock’s companies received about $19 million in FXG revenue over the past five years. During that period, Murdock paid bribes to Mower of at least $50,000.
US v Mower
Mower is charged with five counts of filing false tax returns in a Felony Information unsealed Monday. The charges allege Mower failed to include income in individual income tax returns he filed for several tax years. For example, in February 2016, he filed a return stating that his adjustable gross income for the 2015 tax year was $112,113, knowing he had received at least $223,088.54 in additional income. In a return for tax year 2016, he reported income of $111,835 when he knew that he had received at least $348,877.85 in additional income.
Seizures
In addition to the criminal charges, the United States obtained seizure warrants to deprive the defendants of the profits of their alleged criminal conduct by seizing 25 pieces of real property, 60 bank accounts, investments, cars, boats, snowmobiles, motorcycles, ATVs, trailers, jewelry and firearms. Items seized during a case are held while the case is litigated. The process is finalized with a forfeiture order signed by the Court.
Arrests/court hearings
Balulovski, Kovacevic, Barsukov, Tsipelzon, Tomilin and Murdock were arrested Friday and have initial appearances Monday afternoon in federal court. An arrest warrant has been issued for Ugarte. Mower has been issued a summons for an initial appearance Wednesday. Tuchinsky was arrested in San Diego Friday. A detention hearing has been set for Tuesday at 9:45 a.m. in San Diego. Teyf is in federal custody in North Carolina in an unrelated case.
The potential maximum penalty for wire fraud conspiracy/wire fraud is 20 years in prison. Promotional money laundering and concealment of money laundering counts each have potential 20-year sentences. The potential sentence for money laundering is up to 10 years in prison. Filing a false tax return has a potential maximum sentence of three years per count.
Indictments are not findings of guilt. Defendants charged in indictments are presumed innocent unless or until proven guilty in court.
Illinois State Representative Charged with Offering Bribe to Fellow Lawmaker in Return for Support of LegislationRead the Press Release
CHICAGO — Illinois State Rep. LUIS ARROYO has been charged in federal court with offering a bribe to a fellow state lawmaker in an effort to influence and reward the lawmaker for supporting legislation that would benefit Arroyo’s private lobbying client.
Arroyo, 65, of Chicago, is charged with one count of federal program bribery, according to a criminal complaint and affidavit filed in U.S. District Court in Chicago. Arroyo made an initial court appearance this morning before U.S. Magistrate Judge Maria Valdez and was ordered released on a personal recognizance bond. The next court date was not immediately set.
The complaint was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI; and Kathy A. Enstrom, Special Agent-in-Charge of the Chicago office of the IRS Criminal Investigation Division. The government is represented by Assistant U.S. Attorneys Christopher Stetler and James Durkin.
Arroyo has represented the 3rd District in the Illinois House of Representatives since 2006. He has also managed Spartacus 3 LLC, a private lobbying firm in Chicago.
According to the complaint, on Aug. 2, 2019, Arroyo offered to pay $2,500 per month to an Illinois state senator in return for the senator’s support of sweepstakes-related legislation that would benefit one of Arroyo’s lobbying clients. On Aug. 22, 2019, Arroyo met with the senator at a restaurant in Skokie and provided him a check for $2,500 as an initial payment, with the expectation that additional payments would be made for the next six to 12 months, the complaint states. The check was made payable to a nominee of the senator for the purpose of concealing the illicit payment, the complaint states.
Federal program bribery is punishable by up to ten years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines. The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Illegal Alien Pleads Guilty to Unlawful Return After RemovalRead the Press Release
Gulfport, Miss. – Benjamin Sanchez-Perez, 28, an illegal alien from Mexico, pled guilty today before U.S. District Judge Louis Guirola, Jr., to unlawful return of an alien after removal, announced U.S. Attorney Mike Hurst, Jere T. Miles, Special Agent in Charge of U.S. Immigration & Customs Enforcement's Homeland Security Investigations (HSI) in New Orleans, and Gregory K. Bovino, Chief Patrol Agent of the Border Patrol’s New Orleans Sector.
Sanchez-Perez will be sentenced by Judge Guirola on January 28, 2020, at 10:00 a.m. He faces a maximum penalty of two years in prison and a $250,000 fine, as well as Department of Homeland Security removal proceedings.
On September 12, 2019, an agent with the Harrison County Sheriff’s Department Interdiction Unit conducted a traffic stop on Interstate 10. Indicators of illegal alien smuggling were detected and a Border Patrol Agent was called to assist. Agents made contact with the driver of the vehicle and the front seat passenger, who was the driver’s husband. Among the passengers in the vehicle were three men, including Sanchez-Perez, who were determined to be illegal aliens to the United States who had returned after being formally removed. All vehicle occupants were transported to the Border Patrol Station in Gulfport, for further processing and investigation.
An HSI Special Agent and an HSI Task Force Agent arrived at the station to assist with the investigation. Sanchez-Perez was determined to have entered the United States through Nuevo Laredo, Mexico, about four days before his arrest in Mississippi. Further investigation revealed that Sanchez-Perez had been previously removed from the United States on March 28, 2019, through Miami, Florida. At the time of his removal, Sanchez-Perez was prohibited from entering, attempting to enter, being in the United States, or applying for admission to the United States, for at least five years.
U.S. Attorney Hurst praised the cooperation exhibited by the U.S. Department of Homeland Security, Homeland Security Investigations, the U.S. Border Patrol, and the Harrison County Sheriff’s Department. Assistant U.S. Attorney Stan Harris is the prosecutor for the case.
Houston man heads to prison for committing two bank robberiesRead the Press Release
HOUSTON – A 34-year-old man has been ordered to federal prison following his conviction of robbing two banks in the Houston area, announced U.S. Attorney Ryan K. Patrick. William Jeffery Ellis pleaded guilty July 29.
Today, U.S. District Judge Andrew S. Hanen ordered him to prison for 46 months as to each count to run concurrently and to be immediately followed by three years of supervised release.
Authorities identified Ellis as the perpetrator of two robberies – Smart Financial on E FM 1960 in April 2019 and Comerica Bank on W FM 1960 the previous month.
In each of the robberies, an unarmed Ellis demanded money using a threatening note taped to his backpack. The employees complied because they were frightened.
The FBI and Harris County Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Jennie Basile is prosecuting the case.
This is an example of coordination between law enforcement who are part of the Houston Law Enforcement Violent Crime Initiative which combines personnel and resources from numerous federal, state and local agencies. The goal is to proactively fight and reduce violent crime across the Greater Houston area by targeting the region’s most violent offenders, augmenting investigative and prosecutorial efforts, and enhancing training, public awareness and education.
The case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.
Harrison County man sentenced to 10 years for methamphetamine distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Rex Allen Rowan, II, of Clarksburg, West Virginia, was sentenced today to 120 months incarceration for distributing methamphetamine, U.S. Attorney Bill Powell announced.
Rowan, age 31, pled guilty to one count of “Possession with the Intent to Distribute Methamphetamine” in May 2019. Rowan admitted to distributing more than 50 grams of crystal methamphetamine in September 2018 in Harrison County.
Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and explosives and the Clarksburg Police Department investigated.
U.S. District Judge Thomas S. Kleeh presided.
Greensburg Physician Pleads Guilty to Drug Distribution, Health Care Fraud and Money LaunderingRead the Press Release
PITTSBURGH – A Greensburg physician pleaded guilty in federal to three counts of distribution of buprenorphine, a Schedule III controlled substance, outside the usual course of professional practice; one count of health care fraud; and one count of money laundering, United States Attorney Scott W. Brady announced today.
Nabil Jabbour, 68, a physician who previously operated an addiction-medicine practice out of offices in Greensburg and Connellsville, Pennsylvania, pleaded guilty before United States District Judge Arthur J. Schwab.
During his plea hearing, Jabbour admitted that on three occasions between July 2016 and December 2016 he unlawfully prescribed buprenorphine to undercover law enforcement officers. Buprenorphine is commonly used in the treatment of patients suffering from opioid addiction, and it is sold under the trade names Suboxone, Subutex, or Zubsolv. As Jabbour acknowledged, none of the undercover officers to whom he prescribed buprenorphine suffered from opioid use disorder. Jabbour further admitted that he did not accept insurance from his patients, requiring instead that they pay him in cash—typically $100 for an initial office visit and $80 for each subsequent visit. Although Jabbour did not accept insurance, he admitted that he caused Medicare and Medicaid, two government-funded health benefit programs, to cover the costs of fraudulent buprenorphine prescriptions that he wrote for his patients. Finally, Jabbour pleaded guilty to one count of money laundering based on a transaction he initiated at the Meadows Casino in July 2016 involving $13,960 in cash derived from his unlawful distribution of buprenorphine.
Pursuant to a written plea agreement, the defendant also accepted responsibility for unlawfully distributing buprenorphine on fourteen additional occasions, maintaining his office locations in Greensburg and Connellsville as drug-involved premises, and laundering cash from his buprenorphine practice, in the form of cash transactions exceeding $10,000, at the Meadows Casino during four additional trips to the casino. The defendant also agreed that he was responsible for between 10,000 and 20,000 doses of unlawful buprenorphine prescriptions, and that he caused losses to Medicare and Medicaid of up to $40,000.
Sentencing has been set for March 2, 2020, at 10 a.m.
Jabbour faces a maximum sentence of ten years’ imprisonment and a fine of $500,000 for each distribution count, a maximum sentence of 10 years’ imprisonment and a fine of $250,000 for the health care fraud charge, and a maximum sentence of 10 years’ imprisonment and a fine of $250,000 for the money laundering charge. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Eric G. Olshan is prosecuting this case on behalf of the government.
The investigation leading to the filing of charges in this case was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit, which combines personnel and resources from multiple federal and state agencies to combat the growing prescription opioid epidemic, including the Drug Enforcement Administration, Pennsylvania Office of Attorney General – Medicaid Fraud Control Unit, Internal Revenue Service – Criminal Investigation, and U.S. Department of Health and Human Services – Office of Inspector General. The Pennsylvania State Police, the Pennsylvania Office of the Attorney General – Narcotics Unit, Greensburg City Police, South Greensburg Police, and Westmoreland County Sheriff’s Office also provided assistance during the investigation and prosecution of Jabbour.
Fort Wayne Man Sentenced To15 Years in PrisonRead the Press Release
FORT WAYNE – Scott Trischler, age 25, of Fort Wayne, Indiana was sentenced before U.S. District Court Judge Holly A. Brady upon his plea of guilty of sexual exploitation of a minor, announced U.S. Attorney Kirsch.
Trischler was sentenced to 180 months in prison followed by 5 years of supervised release, and a special assessment of $5,100 was also imposed.
According to documents in this case, Trischler communicated with a victim who was 12 years of age while he was playing with her as an administrator of an online game. He continued to communicate with the victim after finding out his/her age and after the victim’s parents attempted to stop the communication. He encouraged the victim to communicate with him on other online platforms and began engaging in sexually explicit communications. He was also able to convince the victim to send digital still and video images that were sexually explicit which he saved to his phone and eventually transferred to his computer.
The initial charges were filed and handled by the US Attorney’s office in the Eastern District of California, Fresno Office, and the defendant was arrested and pled guilty here in the Northern District of Indiana. The case was investigated by FBI in the Sacramento California Division, along with the Madera County Sheriff’s Department, and these law enforcement entities received assistance from the Fort Wayne Resident Office of the FBI, including members of its Violent Crimes Against Children (VCAC) Task Force Officers. The case was handled by Assistant United States Attorney Stacey R. Speith.
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Fort Wayne Man Sentenced to 78 Months in PrisonRead the Press Release
FORT WAYNE – Shea Smith, age 48, of Fort Wayne, Indiana was sentenced before U.S. District Court Judge Holly A. Brady upon his plea of guilty of receipt of material depicting the sexual exploitation of minors, announced U.S. Attorney Kirsch.
Smith was sentenced to 78 months in prison followed by 5 years of supervised release and was ordered to forfeit the items involved in the commission of the offense.
According to documents in this case, from approximately July 2014 through July 2017, Smith received materials depicting the sexual exploitation of minors. In his plea agreement, Smith agreed to forfeit the following items: desktop computers, laptop computers, a camera and a hard drive.
The case was investigated by FBI’s Violent Crimes Against Children (VCAC) Task Force. The case was handled by Assistant United States Attorney Lesley J. Miller Lowery.
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Former Postal Service Employee Sentenced to 11 Years in Prison for Scheme in Which USPS Trucks Were Robbed at GunpointRead the Press Release
LOS ANGELES – A former United States Postal Service employee was sentenced today to 132 months in federal prison for participating in two armed robberies and one theft of USPS trucks carrying cash – incidents that caused nearly a quarter million dollars in losses and significant trauma to one of its victims who later took his own life.
William Crosby IV, 33, of Inglewood, was sentenced this morning by United States District Judge S. James Otero, who also ordered Crosby to pay $238,457 in restitution.
On July 31, Crosby pleaded guilty to one count of robbery of United States property and one count of brandishing a firearm in furtherance of a violent crime.
Between August 2017 and March 2018, while a USPS employee, Crosby conspired with others to plan two armed robberies and a theft of USPS trucks carrying cash. The armed robberies and theft caused cash losses of $238,457, Crosby admitted in his plea agreement.
“These violent episodes left lasting impressions on the (victim) USPS drivers, including one, who according to his loved ones and his supervisor, suffered extreme emotional trauma after the robbery before he apparently tragically took his own life,” prosecutors wrote in the government’s sentencing memorandum.
Crosby is a former acting USPS supervisor and knew when the agency transported cash generated from the sale of money orders and USPS merchandise – information that is not known to all of its employees, according to court documents.
On August 1, 2017, Crosby signaled to his co-conspirators that a USPS truck carrying a large amount of cash was on the loading dock at the Dockweiler Post Office in South Los Angeles. A co-conspirator wearing a USPS shirt walked onto the loading dock and stole a container inside the truck that contained approximately $128,236 in cash.
On February 1, 2018, Crosby – who then was assigned to the Wagner Post Office in Los Angeles near the city boundary with Inglewood -- provided information to co-conspirators that a USPS truck carrying cash was leaving the facility. During the robbery, in which Crosby acted as a lookout, a minivan blocked the USPS truck just outside the Wagner Post Office, the robber threatened the truck driver at gunpoint, and the robber stole $37,658 in cash.
On March 1, 2018, while Crosby was taking sick leave without pay from his job at the Wagner Post Office, he again conspired to rob a post office, this time the Dockweiler Post Office, where he previously worked. Less than one hour before the robbery, Crosby parked at a grocery store parking lot across the street from the Dockweiler Post Office in a spot where he could see the post office’s loading dock area.
After the USPS truck left the facility, Crosby, along with his co-conspirators, followed the truck, according to the plea agreement. Crosby’s co-defendant -- his half-brother, Myron Crosby, 28, of Athens -- used a rented a Mercedes-Benz SUV to box in the USPS truck as it exited the southbound 110 Freeway at Slauson Avenue. At that time, another co-conspirator exited another vehicle, brandished a gun to control the USPS driver, and stole $72,563 in cash.
Myron Crosby pleaded guilty on August 19 to one count of robbery of United States property. Myron Crosby’s sentencing hearing is scheduled for November 25, at which time he will face a statutory maximum sentence of 25 years in federal prison.
This matter was investigated by the United States Postal Inspection Service and the United States Secret Service.
The case is being prosecuted by Assistant United States Attorneys Thomas F. Rybarczyk of the Public Corruption and Civil Rights Section and Jeffrey M. Chemerinsky of the Violent and Organized Crime Section.
Former Pittsburgh Man Pleads in Conspiracy to Traffic Heroin, Fentanyl and Fentanyl AnalogRead the Press Release
PITTSBURGH, PENNSYLVANIA – A former resident of Pittsburgh, Pennsylvania has pleaded guilty to charges of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
Daniel Espy, age 35, pleaded guilty to conspiracy to possess with the intent to distribute heroin, possession with intent to distribute heroin, furanyl fentanyl, and fentanyl, and possession with the intent to distribute heroin before United States District Judge Marilyn S. Horan. Judge Horan scheduled sentencing for February 18, 2020. The defendant was detained after his initial appearance in federal court and will remain detained pending sentencing.
According to information presented to the court, from November 2016 to April 2017, Espy conspired with other individuals to acquire heroin to distribute in Allegheny County. On March 3, 2017, during an investigation by City of Pittsburgh Bureau of Police Narcotics and Vice Division and the DEA, investigators stopped Espy in a car in which a mixture of fentanyl and fentanyl analogues was recovered. On April 4, 2017, investigators recovered a large amount of heroin from a stash location used by Espy and other co-conspirators in the City of Pittsburgh. Laboratory testing revealed that the packaging for that heroin contained Espy’s fingerprints.
Espy faces a maximum total sentence of not more than 30 years in prison, a fine of not more than $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case on behalf of the government.
City of Pittsburgh Bureau of Police – Narcotics and Vice Division, the Drug Enforcement Agency, and the Pennsylvania Attorney General’s Office conducted the investigation leading to the plea in this case.
Former Monessen School Bus Driver Pleads Guilty to Possessing Videos Showing the Sexual Exploitation of ChildrenRead the Press Release
PITTSBURGH - A resident of Monessen, Pennsylvania, pleaded guilty in federal court to a charge of possession of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
Jack Brian LaForte, age 55, pleaded guilty to one count before Senior United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that the investigation into LaForte began when Homeland Security Investigations received information about an upload of a child pornographic material from an IP address that resolved to LaForte’s Monessen residence. On or about June 14, 2019, law enforcement seized various electronics during the execution of a search warrant at the residence, including a laptop computer. A forensic review the laptop revealed videos depicting the sexual exploitation of minors, including of prepubescent minors who had not attained 12 years of age. The videos discovered by law enforcement included depictions of the lewd and lascivious display of the minors’ genitals; the penetration of minors by adults; and minors engaging in oral sex with adults.
Judge Schwab scheduled sentencing for March 17, 2019. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued defendant on bond.
Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government.
Homeland Security Investigations conducted the investigation that led to the prosecution of LaForte.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former City of Pittsburgh Police Officer Sentenced for Making False Statements to Federal AgentsRead the Press Release
PITTSBURGH, PA – A former City of Pittsburgh Police Officer and resident of Allegheny County was sentenced in federal court to one year of probation with 90 days of home detention for his conviction on two counts of making false statements to government agents, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Arthur J. Schwab imposed the sentence on Antoine Cain, age 50. According to information presented to the Court, Mr. Cain, who was a 25-year veteran police officer for the City of Pittsburgh at the time, provided false information on two occasions to federal agents in the course of a federal investigation into an armed bank robbery that occurred in January of 2018 at the Citizens Bank in Crafton, PA.
Despite knowing the identity of the individual who had robbed the bank – that is, Brent Richards, who is the son of Melissa Kane, the woman with whom Mr. Cain was in a relationship – on two separate occasions in July of 2018, when questioned by federal agents, Cain denied knowing who had robbed the bank. It was not until he was confronted a third time by federal agents, in September of 2018, and informed by those agents that they had information that he did know the identity of the bank robber, that Cain admitted that he knew Brent Richards had robbed the bank and failed to tell federal agents on the two previous occasions that he had spoken with them. Specifically, Cain admitted that Brent Richards told him that he had "hit" a bank, which Cain understood to mean that Brent Richards had committed a bank robbery, and Melissa Kane told him that Brent Richards had robbed the Citizens Bank, wearing a mask and using a bb gun and that Brent Richards had been covered up so law enforcement could not prove that it was Brent Richards who had robbed the bank.
Both Ms. Kane and Mr. Richards have plead guilty in federal court in their respective cases and are awaiting sentencing.
Assistant United States Attorneys Rebecca L. Silinski and Eric G. Olshan prosecuted this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Antoine Cain.
Drug Felon on Federal Supervised Release Will Spend 3+ Years in Prison for Illegally Possessing and Handgun and AmmunitionRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to three years and one month (37 months) in prison and three years supervised release on his conviction of violating the federal narcotics laws, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Arthur J. Schwab imposed the sentence on Kedren Broadus, age 36, of Pittsburgh, Pennsylvania.
According to information presented to the court, on or about November 13, 2017, Pittsburgh Bureau of Police Officers pulled over a vehicle in which Broadus was a passenger. Broadus is individual with a prior felony conviction for Possession with Intent to Distribute Cocaine Base, and he was on federal supervised release at the time of this offense. At the traffic stop, Broadus fled on foot, and he dropped a.40 caliber Glock 23 handgun during the chase. When the police eventually apprehended Broadus, he had additional ammunition in the backpack he was carrying. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm or ammunition.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
United States Attorney Brady commended the Pittsburgh Bureau of Police and the Federal Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation leading to the successful prosecution of Broadus. This case was prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.