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Monday 16 September 2019
Former Corrections Officer, Union Treasurer Charged with Wire FraudRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Tony J. Liesenfeld, age 49, of Selinsgrove, Pennsylvania, was charged on September 13, 2019 in a felony information with wire fraud.
According to United States Attorney David J. Freed, the information alleges that between June 11, 2001 and November 25, 2015, Liesenfeld embezzled over $77,000 from American Federation of Government Employees Local 148. Liesenfeld allegedly used a union credit card to make unauthorized purchases and cash withdrawals, and forged checks from a union account to the same ends.
The case was investigated by the U.S. Department of Labor Office of Labor-Management Standards and is being prosecuted by Assistant U.S. Attorney Sean A. Camoni.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The highest maximum penalty under federal law for this offense is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Former Consultant to Airport Contractor Sentenced for Concealing Scheme to Defraud AirportRead the Press Release
Angelo D’Alessandro, 55, of Shelby Township, was sentenced today to 24 months probation and ordered to pay $73,000 in restitution, as well as a $5,000 fine, after having pleaded guilty to covering up co-defendant Gary Tenaglia’s efforts to defraud the Wayne County Airport Authority (WCAA) of over $1.5 million in 2012 and 2013, United States Attorney Matthew Schneider announced today.
Schneider was joined in the announcement by Rainer S. Drolshagen, Acting Special Agent-in-Charge of the Detroit Field Office of the Federal Bureau of Investigation, and Andrea M. Kropf, Special Agent-in-Charge of the Chicago Field Office of the United States Department of Transportation, Office of Inspector General.
According to court records, D’Alessandro, a business associate of Tenaglia’s, owned and operated a construction company, AQD Construction. Beginning in 2012, Tenaglia conceived and executed a scheme to defraud the WCAA by charging for the application of thousands of pounds of deicing salt called, “NAAC,” which was not applied. In order to conceal the fraudulent charges, Tenaglia fabricated invoices showing a purchase of NAAC for the WCAA from D’Alessandro’s construction company, which Tenaglia never purchased. After learning of Tenaglia’s scheme to defraud the airport, and assisting in its concealment, D’Alessandro failed to notify law enforcement of the crime.
The investigation of this case was conducted by the Federal Bureau of Investigation and the Department of Transportation. The case is being prosecuted by Assistant U.S. Attorneys Eaton P. Brown, Paul Kuebler, and R. Michael Bullotta.
First Wave of Indictments Returned in Jackson from U.S. Marshals Operation “Bluff City Blues”Read the Press Release
Jackson, TN – Three defendants have been indicted by a Federal Grand Jury in Jackson, TN on federal firearms offenses arising from the recent initiative led by the U.S. Marshals Service, Operation "Bluff City Blues". U.S. Attorney D. Michael Dunavant announced the new indictments today.
Operation "Bluff City Blues" was a two-week-long joint federal, state and local law enforcement initiative that resulted in the arrests of 214 individuals in West Tennessee. These individuals were arrested on a variety of criminal charges, including homicide, aggravated assault, robbery, carjacking, arson, drug distribution, illegal gun crimes and failure to register as sex offenders. Today, the first defendants arrested in that operation were indicted for the following offenses:
Isaac Caprice Williamson, of Jackson, TN – charged with one count of being a prohibited felon in possession of a firearm, pursuant to 18 U.S.C. 922(g)(1). The indictment alleges that Williamson was found to be in possession of a Glock 30 .45 caliber handgun during a traffic stop in Jackson, TN on August 20, 2019. Williamson is a convicted felon, having been convicted of multiple prior felony offenses in Madison Co., TN prior to his unlawful possession of the firearm on the above date.
Reginald Dontae Williamson, Jr., of Jackson, TN – charged with two counts of being a prohibited felon in possession of a firearm, pursuant to 18 U.S.C. 922(g)(1). The indictment alleges that Williamson, Jr. was found in possession of two firearms: a Cobray Mac-10 pistol and a Savage Stevens 320 12 gauge shotgun, during the execution of a state search warrant at his residence in Jackson on August 20, 2019. Williamson, Jr. is a convicted felon, having been convicted of multiple prior felony offenses in Madison Co., TN prior to his unlawful possession of the firearms on the above date.
Reggie Carnell James, Jr., of Jackson, TN - charged with three counts of being a prohibited felon in possession of a firearm, pursuant to 18 U.S.C. 922(g)(1). The indictment alleges that James, Jr. was found in possession of three firearms: a Glock 19 .9mm semi-automatic handgun, a Taurus PT111 .9mm semi-automatic handgun, and a Smith & Wesson .38 caliber revolver, during a search of his vehicle in Jackson on August 20, 2019. James, Jr. is a convicted felon, having been convicted of multiple prior felony offenses in Madison Co., TN prior to his unlawful possession of the firearms on the above date.
If convicted of the above federal firearms offenses, each defendant faces sentences of up to 10 years in prison for each count.
Operation "Bluff City Blues" was a coordinated violence reduction initiative led by the U.S. Marshals Service that brought together federal, state and local law enforcement partners, including the Jackson Police Department, the Madison County Sheriff’s Office, the Tennessee Highway Patrol in the Jackson Division, and the District Attorney General’s Office in Madison County, in an effort to reduce crime in West Tennessee by identifying and arresting violent fugitives, targeting violent gang activity, and collecting intelligence to allow for the systematic removal of individuals who have been charged with committing violent crimes in West Tennessee.
Assistant United States Attorney Joshua Morrow is prosecuting these cases on behalf of the government.
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Final Defendant Pleads Guilty in Connection with the State's Largest Methamphetamine SeizureRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty plea of PETER MARTIN, 35, for conspiring to distribute approximately 191 pounds of methamphetamine. MARTIN and co-conspirators FERNANDO RAMOS-MEZA, 34, JAVIER LOPEZ-LOPEZ, 47, and JUAN DANIEL VALDEZ-MENDOZA, 24, were indicted on November 7, 2018. MARTIN pleaded guilty today before Judge Patrick J. Schiltz in U.S. District Court in Minneapolis, Minnesota. He is scheduled to be sentenced on January 14, 2020.
According to the defendant’s guilty plea and documents filed in court, on September 11, 2018, law enforcement officers with the Cannon River Drug and Violent Crimes Task Force executed a search warrant at RAMOS-MEZA’s residence in north Minneapolis. During the search of the residence, officers located several items of contraband, including a 12-gauge sawed-off pump shotgun, and approximately 191 pounds of methamphetamine (with packaging).
This case is the result of an investigation conducted by the Cannon River Drug and Violent Crimes Task Force, Homeland Security Investigations, and the Minneapolis Police Department.
Assistant United States Attorney David P. Steinkamp is prosecuting the case.
Defendant Information:
PETER MARTIN, 35
Minneapolis, Minn.
Convicted:
- Conspiracy to distribute and possess with intent to distribute methamphetamine, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Federal Jury Convicts Rochester Man of Gun and Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal jury has convicted Sofonzia Mack, 37, of Rochester, NY, of possession with intent to distribute marijuana, and being a felon in possession of a handgun and ammunition. The charges carry a maximum penalty of 10 years in prison and a $500,000 fine.
Assistant U.S. Attorneys Matthew T. McGrath and Charles E. Moynihan, who handled the trial of the case, stated that on March 28, 2017, Rochester Police officers stopped a blue Kia Sedona in the 800 block of Exchange Street in Rochester after seeing the driver commit multiple violations of the New York State Vehicle and Traffic Law. As officers approached the vehicle, they smelled what they believed to be marijuana coming from inside. The driver and the defendant, who was in the front passenger seat, were directed to get out of the vehicle so officers could further investigate the smell.
While searching the defendant, officers found a .25 caliber, semiautomatic pistol in Mack’s jacket pocket. Officers could see the serial number on the firearm had been defaced and that it was loaded with four rounds of ammunition. Officers also seized 21 plastic vials containing marijuana in a draw-string bag, which the defendant had secured over his shoulder at the time of the stop, and over $900 in United States currency located in the center console.
On July 30, 2007, in Albany County Court, the defendant was convicted of Attempted Criminal Sale of a Controlled Substance in the Third Degree and sentenced to serve three years in prison. As a result, Mack was legally prohibited from possessing a gun.
The jury found the defendant not guilty of possessing a firearm in furtherance of a drug trafficking crime and knowingly possessing a defaced handgun.
The matter was brought by the United States Attorney’s Office as part of its Project Safe Neighborhoods (PSN) initiative. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The verdict is the result of an investigation by the Rochester Police Department, under the direction of Chief La’Ron Singletary, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge John B. DeVito, New York Field Division.
Sentencing is scheduled for December 5, 2019, at 10:00 a.m. before Judge David G. Larimer, who presided over the trial of the case.
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Father and two sons among six more defendants sentenced to prison in Operation Vanilla GorillaRead the Press Release
SAVANNAH, GA: Another round of sentencings in the Operation Vanilla Gorilla drug trafficking investigation is sending more defendants to substantial terms in federal prison.
Cody Penfield, 28, of Savannah, Ga., was sentenced Thursday, Sept. 12, 2019, in U.S. District Court in Savannah by Judge R. Stan Baker to 162 months in prison for Conspiracy to Possess with Intent to Distribute Methamphetamine, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia.
According to court filings and evidence presented in Court, Cody Penfield conspired with his brother, Nick Penfield, and his father, Michael Penfield, and others as part of a major drug trafficking organization that included associates of the Ghost Face Gangsters criminal street gang to distribute kilograms of crystal methamphetamine in the Southern District of Georgia and beyond. Nick Penfield is serving a sentence of 210 months in federal prison, and Mike Penfield is serving 175 months in federal prison. There is no parole in the federal system.
“A father and his two sons have now each been sentenced to more than a decade in prison for distributing poison throughout Georgia and the Southern District,” said U.S. Attorney Christine. “Instead of responsibly guiding his children, Mike Penfield teamed up with his adult sons to earn dishonest profit from criminal drug trafficking. They’ve now earned stiff prison sentences as payment for their crimes.”
All 43 defendants indicted in November and December 2018 in the conspiracy have pled guilty, and most have been sentenced to prison. Members of the drug-trafficking organization also recently sentenced include:
- Baby Dwayne Garrison, 55, of Bloomingdale, Ga., sentenced to 145 months in prison for Conspiracy to Possess with Intent to Distribute Methamphetamine;
- Mike Penfield, 54, Savannah, sentenced to 175 months in prison for Conspiracy to Possess with Intent to Distribute Methamphetamine;
- Marcus Logan Greco, 29, of Rincon, Ga., sentenced to 170 months of imprisonment for Conspiracy to Possess with Intent to Distribute Methamphetamine and Heroin, and to a consecutive 120 months in prison for Possession of a Firearm by a Prohibited Person;
- Robert Fuller, 40, of Richmond Hill, Ga., sentenced to 100 months of imprisonment for Conspiracy to Possess with Intent to Distribute Methamphetamine; and,
- David Rahn, 41, of Savannah, sentenced to 151 months in prison for Possession of Methamphetamine with Intent to Distribute.
Most of these defendants were on probation or parole when they committed the offenses, so the federal sentences will be run consecutive to the sentences for violating state probation or parole. After serving their federal sentences, each of the defendants will then be on federal supervision for at least three years.
Operation Vanilla Gorilla was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF), the premier U.S. Department of Justice program to dismantle multi-jurisdictional drug trafficking organizations. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Georgia Bureau of Investigations (GBI), the Drug Enforcement Administration (DEA), the Chatham-Savannah Counter Narcotics Team (CNT), the Georgia Department of Corrections Intelligence Division, the Savannah Police Department, the Chatham County Sheriff’s Office, the Bryan County Sheriff’s Office, the Richmond Hill Police Department, the Pooler Police Department, the Effingham County Sheriff’s Office and the Bloomingdale Police Department, with assistance from the U.S. Marshals Service.
The case is being prosecuted by Assistant United States Attorneys E. Greg Gilluly Jr. and Frank Pennington. For any questions, please contact the United States Attorney’s Office at (912) 652-4422.
Ex-Credit Union Manager Sentenced to More Than 14 Years in Federal Prison for $40 Million Embezzlement that Made Institution InsolventRead the Press Release
LOS ANGELES – The former manager of CBS Employees Federal Credit Union was sentenced today to 169 months in federal prison for a two-decade-long embezzlement that caused the credit union a loss of $40 million – a scheme that ultimately led to the financial cooperative being forced into insolvency.
Edward Martin Rostohar, 62, of Studio City, was sentenced by United States District Judge Otis D. Wright II.
Rostohar pleaded guilty on May 20 to one count of bank fraud. He used his position as a manager at the credit union, a federally insured financial institution, to make online payments from the credit union to himself or by forging the signature of another credit union employee on checks made payable to himself.
Prior to his three decades of employment at the credit union, Rostohar was a trained accountant and an examiner at the National Credit Union Administration (NCUA), a federal agency that regulates credit unions. During his approximately 20 years of embezzling from CBS Employees FCU, he used his senior position at the institution to falsify its records to hide his fraud and make credit union appear to be profitable despite it suffering more than $40 million in losses as a direct result of his scheme.
The scheme was exposed in March when a credit union employee, after discovering a $35,000 check payable to Rostohar, conducted an audit and discovered approximately $3.8 million in checks made payable to Rostohar between January 2018 and March 2019. Rostohar told law enforcement he gambled away much of the money and spent the rest on traveling by private jet, buying expensive watches, and giving his wife a weekly allowance of $5,000. Rostohar also started a coffee business in Reno, Nevada in December 2018, and he wrote tens of thousands of dollars’ worth of checks to himself to cover the business’s costs as well as to pay a $5,000 monthly mortgage on a home in Reno he recently purchased.
“(Rostohar) has the moral culpability of someone who was willing to leave as many as 43 depositors with deep losses so that he could wear $100,000 watches, buy a new vehicle every couple years, and impress women less than half his age with trips on private jets to international vacation resorts, Tiffany jewelry, and gambling parties,” the government wrote in the prosecution’s sentencing memorandum.
Rostohar has agreed to forfeit his ill-gotten gains, including bank accounts in his name and the names of his shell companies, four automobiles, including a Porsche, a Tesla and a Lexus, homes in Studio City, Reno, and Mexico, luxury watches, and jewelry.
Rostohar’s long-running fraud resulted in the decision by the NCUA to liquidate the credit union and discontinue its operations after determining the Studio City-based CBS Employees was insolvent with no prospect of restoring viable operations on its own. In March, University Credit Union of Westwood assumed CBS Employees’ assets, loans, and all member shares. At the time of its liquidation and sale, CBS Employees served 2,798 members and had assets of $21,037,558, according to the credit union’s most recent Call Report.
Rostohar has been in federal custody since his arrest on March 13.
This case was investigated by the Federal Bureau of Investigation and the Los Angeles Police Department.
This matter is being prosecuted by Assistant United States Attorneys Andrew G. Brown of the Major Frauds Section and Victor A. Rodgers, deputy chief of the Asset Forfeiture Section.
Employee at U.S. Military Base Admits to Accepting Bribes and KickbacksRead the Press Release
NEWARK, N.J. – A civilian employee of Picatinny Arsenal (PICA) and an employee of a defense contractor today admitted their roles in conspiring with others to receive bribes and other gratuities in return for assistance with the awarding of government contracts, U.S. Attorney Craig Carpenito announced.
Robert Dombroski, 64, of Branchville, New Jersey, a high ranking civilian employee at PICA, pleaded guilty before U.S. District Judge John Vazquez in Newark federal court to an information charging him with conspiring to commit wire fraud in order to accept or receive things of value in return for favorable assistance with government contracts and with making false claims against the United States.
Indra Nayee, 53, of Metuchen, New Jersey, pleaded guilty before Judge Vazquez to an information charging him with conspiring to give, offer or promise anything of value to a public official and to make false claims against the United States.
According to documents filed in this case and statements made in court:
Dombroksi worked at PICA, a U.S. Army installation in Morris County, New Jersey, for more than 30 years. PICA conducts research, development, acquisition and lifecycle management of advanced conventional weapons systems and advanced ammunitions and provides products and services to all branches of the U.S. military. Dombroski admitted that from at least January 2010 through December 2017, he conspired with other employees at PICA, with Subsystems Technology (STI) – a defense contracting firm that works with PICA and specializes in advanced engineering, advanced analytics, management consulting and IT services, including cyber-security – and employees of STI. He conspired to seek and accept gifts and other items of value, such as Apple products, luxury handbags, Beats headphones, and tickets to a luxury sky box at professional sporting events, valued at least $150,000 to $250,000, from STI in exchange for assistance in obtaining and retaining government contracts and other favorable assistance at PICA. He also admitted that in order to cover up his crimes, he filed false statements to the Department of Defense by failing to list the items of value he received from STI on his annual confidential financial disclosure form known as an OGE Form 450.
Nayee, an employee of STI, admitted that from January 2012 through December 2016, he conspired with STI and other employees of STI to offer gifts and other items of value to numerous individuals employed at PICA in order to obtain and retain contracts and other favorable assistance at PICA. He also admitted that he and other employees at STI, and the company, submitted false bills to the United States writing off the cost of the bribes as “materials” needed on United States government contracts, when in fact the gifts and other items of value were for the personal use and enjoyment of the employees at PICA and not for any legitimate government purpose.
The conspiracy charge to which Dombroski and Nayee pleaded guilty carries a maximum potential penalty of five years in prison and a maximum fine of $250,000 or twice the gross gain or loss associated with the offense, whichever is greatest. Sentencing for Dombroski is scheduled for Nov. 19, 2019, and sentencing for Nayee is scheduled for Dec. 16, 2019.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the U.S. Department of Defense, Defense Criminal Investigative Service, under the direction of Leigh-Alistair Barzey, Special Agent in Charge, DCIS Northeast Field Office; and the U.S. Army, Major Procurement Fraud Unit, Criminal Investigation Command, under the direction of Special Agent in Charge L. Scott Moreland, with the investigation leading to today’s guilty pleas.
The government is represented by Senior Trial Counsel Margaret Ann Mahoney of the U.S. Attorney’s Office’s National Security Unit in Newark.
Eagle Butte Man Sentenced for Third Degree BurglaryRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man convicted of Third Degree Burglary was sentenced on September 9, 2019, by U.S. District Judge Roberto A. Lange.
Michael Charlton, age 18, was sentenced to 6 months in federal prison, 6 months of home confinement, 3 years of supervised release, a special assessment to the Federal Crime Victims Fund in the amount of $100, and restitution in the amount of $6,785.83.
Michael Charlton was indicted by a federal grand jury on April 9, 2019. He pled guilty on June 18, 2019.
The conviction stemmed from an incident on January 29, 2019, where Charlton broke into a business in Eagle Butte, and stole over $2,500 in coins. While in the business, he also damaged several pieces of equipment, causing further loss to the victim.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Charlton was immediately turned over to the custody of the U.S. Marshals Service.
Dominican National Sentenced for Stealing Citizen’s Identity and Selling DrugsRead the Press Release
BOSTON – A Dominican national residing in Mattapan was sentenced today in federal court in Boston for Social Security fraud, aggravated identity theft, and drug possession.
Yhoan Alexis Nivar Rodriguez, 30, was sentenced by U.S. District Court Chief Judge Patti B. Saris to 43 months in prison. Nivar will be subject to deportation upon completion of his sentence. Nivar previously pleaded guilty to Social Security fraud, aggravated identity theft, and possession with intent to distribute fentanyl, cocaine, and crack cocaine.
Nivar was arrested and charged in a July 2018 federal law enforcement sweep of 25 individuals accused of document and benefit fraud. Dubbed “Double Trouble,” the investigation was conducted by Homeland Security Investigation’s Document and Benefit Fraud Task Force, comprised of local, state, and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity, and benefit fraud schemes.
On Dec. 15, 2015, Nivar went to a Registry of Motor Vehicles office in Braintree and successfully applied for a Massachusetts driver’s license using the name, date of birth, and Social Security number of a female U.S. citizen from Puerto Rico. In July 2018, federal agents executed a search warrant at Nivar’s apartment. Inside a safe in Nivar’s bedroom, agents recovered over 70 grams of fentanyl, cocaine, and crack cocaine packaged for street-level sales, plus a drug ledger and $1,500 cash. Another $2,753 cash was found on a table in the bedroom. Nivar admitted to buying and selling drugs.
United States Attorney Andrew E. Lelling; Jason Molina, Special Agent in Charge of Homeland Security Investigations in Boston; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and William B. Gannon, Special Agent in Charge of the U.S. Department of State, Diplomatic Security Service, Boston Field Office, made the announcement. Assistant U.S. Attorney Christine Wichers of Lelling’s Major Crimes Unit prosecuted the case.
Dominican National Pleads Guilty to Unlawful ReentryRead the Press Release
BOSTON – A Dominican national pleaded guilty today in federal court in Boston to illegally reentering the United States after being deported.
Diostene Pimental, 42, a Dominican national formerly residing in Boston, pleaded guilty to one count of unlawfully re-entering the United States after being deported. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for Dec. 9, 2019.
According to the indictment, Pimental was removed in November 2012 and subsequently re-entered the United States without permission. The indictment further alleges that Pimental was deported after being convicted of an aggravated felony.
Pimental faces a sentence of no greater than 20 years in prison, up to three years of supervised release, and a fine of up to $250,000. Pimental will be subject to deportation proceedings. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Marcos D. Charles, Acting Field Office Director, Enforcement and Removal Operations, U.S. Immigration and Customs Enforcement, Boston, made the announcement today. Assistant U.S. Attorney Bill Abely, Deputy Chief of Lelling’s Major Crimes Unit, is prosecuting the case.
Defendant who conspired to steal aircraft secrets pleads guiltyRead the Press Release
SAVANNAH, GA: A North Carolina man has admitted taking part in a conspiracy to steal design information from aircraft companies to speed up approval of competing airplane technology.
Craig German, 59, of Kernersville, N.C., entered a guilty plea to Conspiracy to Steal Trade Secrets in U.S. District Court in Savannah, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia.
German faces up to 10 years in prison, a $250,000 fine and three years of supervised release upon completion of his sentence. There is no parole in the federal system.
According to court documents and testimony, German agreed with his co-conspirators to steal trade secrets from aircraft companies in order to assist a competitor company in developing their own anti-ice aircraft technology. Without authorization, German copied anti-ice trade secret documents onto a storage device from the aircraft company for which he worked, and then emailed those documents to his co-conspirators.
“German and his co-conspirators stole the secrets of U.S. companies rather than do the hard work necessary to succeed,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “Our office takes the theft of intellectual property very seriously, and we will remain on the front lines of defending U.S. companies against this emerging economic threat.”
“Companies spend millions of dollars to develop trade secrets to compete in a free market system,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “We cannot allow anyone to circumvent the system by using illegal and deceptive practices to steal protected information. The FBI is committed to identifying and prosecuting anyone who does.”
The case is being investigated by the FBI, and prosecuted for the United States by Assistant U.S. Attorneys Jennifer G. Solari and Steven H. Lee.
Decatur County Man Sentenced to 8 Years in Federal Prison for Drug and Gun OffensesRead the Press Release
Jackson, TN – Joshua Emile Malone, 28, of Parsons, TN., has been sentenced to 97 months in federal prison for possession of methamphetamine with intent to distribute, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a convicted felon. U.S. Attorney D. Michael Dunavant announced the sentence today.
According to information presented in court, on April 12, 2018, during the execution of felony arrest warrants at a residence in Parsons, Tennessee, Malone was found at home with a loaded .22 caliber revolver and a loaded .45 caliber semi-automatic pistol. After law enforcement secured the house, they executed a search warrant and recovered the following items in Malone’s bedroom:
9.2 g marijuana
3.2 grams methamphetamine
Remington Model 770
Stevens Savage model 77C18I sawed off pump shotgun (15 in barrel)
2 digital scales
Glass pipe
(31) 12 gauge shotgun shells
(5) 20 gauge shotgun slugs
(26) .25 caliber pistol rounds
(11) .38 caliber pistol rounds
(50) .380 caliber pistol rounds
(2) .45 long Colt pistol rounds
(1) 30-30 rifle round
(1) 25-06 rifle round
(2) 300 win mag rifle rounds
(4) 10 gauge shotgun shells
(9) 16 gauge shotgun shells
U.S. Attorney D. Michael Dunavant said, "The U.S. Attorney’s Office is a full-service federal prosecution office, and we have the ability and intention to charge any violations of federal law, no matter where they occur in the Western District of Tennessee. This case demonstrates our focus on the priority areas of firearms and narcotics cases that impact public safety in our rural communities, and we appreciate the partnerships with our local law enforcement agencies in Decatur County."
On September 12, 2019, U.S. Chief District Court Judge S. Thomas Anderson sentenced Malone to 97 months imprisonment followed by 3 years supervised release.
"I'd like to thank the DOJ and the FBI for their assistance in the prosecution of this violent offender. My investigators are working extremely hard on removing these types of offenders from our county. Having a good working relationship with these federal agencies insures stiffer sentences for these offenders. It also sends a message to other offenders in our county that this department is serious about providing a safe environment for our children," said Decatur County Sheriff, Keith Byrd.
This case was investigated by the Decatur County Sheriff's Department, Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorney Hillary Parham prosecuted this case on behalf of the government.
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Dealer Admits Selling Deadly Fentanyl Laced PillsRead the Press Release
Sherri Walker Hobson (619) 546-6986
NEWS RELEASE SUMMARY – September 16, 2019
SAN DIEGO – Christopher James Stracuzzi entered a guilty plea in federal court today, admitting that he distributed fentanyl that resulted in the death of a San Diego man. Stracuzzi will be sentenced on December 2, 2019 at 9 a.m., before U.S. District Judge Thomas J. Whelan.
According to court documents, on July 18, 2018, at approximately 8:43 p.m., the San Diego Police Department received a 911 call about an unconscious male passed out on the floor in his apartment. His roommate attempted to perform CPR even though she was groggy from have taken a pill herself. Paramedics arrived on scene and unsuccessfully attempted resuscitation. The man was pronounced dead at 9:12 p.m.
The roommate of the deceased man told investigators that Stracuzzi sold the deceased 12 tablets that the deceased believed to be oxycodone pills. Both the roommate and the deceased man took a pill. After learning from the Medical Examiner's Office that her roommate died of a fentanyl overdose, the roommate suspected that the pills they had taken that fateful night were not oxycodone, but were in fact, counterfeit pills containing fentanyl. When the DEA Southwest Regional Laboratory, tested the remaining 10 tablets, chemists determined they contained fentany1.
The Drug Enforcement Administration, Homeland Security Investigations, San Diego Police Department, Federal Bureau of Investigation and California State Department of Health Care Services, along with the San Diego District Attorney’s Office and the U.S. Attorney’s Office, are part of a team that investigates and prosecutes fatal overdose cases.
“Dealers beware: You will be held responsible for the deaths of your customers,” said U.S. Attorney Robert “But we can’t reverse the tragedy of the shattered lives of the victims and their families. I cannot say this any more strongly or directly: Don’t take these black market pills. You may pay the ultimate price for this terrible mistake.”
“Tragic cases of overdose deaths caused by fentanyl will leave scars on families in our communities for decades to come,” said HSI San Diego SAC Dave Shaw. “HSI is committed to working with our partners to remove this scourge from our streets. We urge everyone to take the time to learn about these deadly drugs and take the steps necessary to protect their families and loved ones.”
“We are living in a world where drug cartels are getting rich from making counterfeit pills that contain fentanyl and we are paying a heavy price, in blood,” said DEA Special Agent in Charge Karen Flowers. “There is no quality control or FDA oversight. If you didn’t get that pill directly from a pharmacy with a prescription in your name, you won’t be able to tell if the pill is real or counterfeit. Even the experts can’t tell until it is examined in a laboratory. When you crush or swallow that blue pill that looks like a 30 mg oxycodone tablet, you are risking your life. I’ll say it again, your dealer, BFF, lover, or classmate may become your murderer and the medical examiner your personal physician. Life is precious. Don’t gamble yours away for a quick high that sends you home from the party in a body bag.”
These case is being prosecuted by Assistant United States Attorney Sherri Walker Hobson.
DEFENDANT Case Number 19CR0368W
Christopher James Stracuzzi San Diego
SUMMARY OF CHARGES
Title 21 U.S.C. §§ 841(a) & 841(b)(1)(C) Distribution of Fentanyl Resulting in Death
Title 18 U.S.C. § 2 Aiding and Abetting
Maximum penalty: Life in custody, with a mandatory minimum penalty of 20 years
AGENCIES
Drug Enforcement Administration
Homeland Security Investigations
San Diego Sheriff’s Office
San Diego Police Department
Federal Bureau of Investigation
Department of Health Care Services
DeKalb felon sentenced for robbing multiple Waffle House restaurants and a motelRead the Press Release
ATLANTA – Joseph Orlando Hood, a career offender, has been sentenced following his armed robbery of three Waffle House restaurants and a DeKalb County motel.
“Hood threatened the lives of multiple citizens and law enforcement officers during his crime spree,” said U.S. Attorney Byung J. “BJay” Pak. “He demonstrated a complete lack of concern for the victims in this case and justly deserved this lengthy prison sentence.”
“Criminals who choose to use guns to harm or intimidate their victims have no regard for others,” said ATF Special Agent in Charge Arthur Peralta. “Mr. Hood initiated those acts of violence and his actions placed many innocent people at risk of great bodily harm or worse.”
According to U.S. Attorney Pak, the charges, and trial transcript: Hood robbed three Waffle House restaurants and a motel during a one-week span. Two of the restaurant robberies occurred on the same day. Hood shot at a customer during one of the Waffle House robberies. While he missed the customer, Hood nearly struck a Waffle House employee. During the motel robbery, Hood hit an employee on the head with the butt of his gun, knocking the employee unconscious.
Hood’s robbing spree ended during the early morning hours of November 17, 2016. That day, Hood entered a local bar and grill restaurant and walked towards a backroom where customers were seated. Hood pointed two firearms at the customers and demanded money. While Hood was taking money from the customers, one of the men tried to escape. Hood fired his gun at the man and chased him through the Bar, while firing additional rounds.
After fleeing the restaurant, Hood exchanged gunfire with the bar’s owner. During the gun battle, the bar owner shot Hood in the leg. Hood then fled to a nearby apartment complex, where DeKalb County police officers arrested him. The officers transported Hood to a local hospital from where Hood subsequently escaped. Shortly after, Atlanta Police officers apprehended him.
Joseph Orlando Hood, 32, of Scottsdale, Georgia was sentenced by U.S. District Judge Steve C. Jones to 39 years in federal prison, followed by five years of supervised release. On February 12, 2019, a jury found Hood guilty of four counts of Hobbs Act robbery and four counts of brandishing a firearm during those robberies.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the DeKalb County Police Department.
Assistant U.S. Attorneys Dash A. Cooper and Joseph Plummer prosecuted the case.
This case was brought as a part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected].
Dallas County Woman Charged with Theft of Government Funds and Aggravated Identity TheftRead the Press Release
United States Attorney, Richard W. Moore, of the Southern District of Alabama announces that Tonya Lewis, a 39 year old resident of Selma, Alabama was charged in a two Count Indictment with Theft of Government Funds (Count One) and Aggravated Identity Theft (Count Two). The Indictment alleges that Lewis stole approximately $95,689.44 from HUD that was entrusted to the Selma Housing Authority and that she stole the identity of another person to obtain a credit card.
Upon conviction, Lewis will face a maximum penalty of 10 years of incarceration, a fine of $250,000 and a supervised release term of three years for Count One. Lewis faces a minimum mandatory two years consecutive to any other sentence imposed, a fine of $250,000 and a supervised release term of three year for Count Two.Nadine E. Gurley, Special Agent in Charge, HUD-OIG remarked, ” [a]s the Office of Inspector General for the U.S. Department of Housing and Urban Development (HUD), it is our responsibility to investigate allegations of fraud against HUD and HUD funded agencies such as the Selma Housing Authority. We will continue to promote our efforts in conjunction with the U.S. Attorney’s Office during this investigation.”
An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until and unless he or she is proven guilty at trial.
Dallas County Man Found Guilty of Possession of a Firearm After Felony ConvictionRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Jarriet Rascoe, a 32 year old resident of Selma, Alabama was found guilty of possession of a firearm after conviction of a felony. The trial was held on September 6, 2019.
The evidence produced at trial showed that on February 7, 2019, Rascoe knew he was a felon. A Selma police officer conducted a traffic stop on a white Oldsmobile Cutlass being driven by Rascoe that was speeding. As the vehicles came to a stop, the officer ran a check on the tag of the vehicle. The vehicles came to a stop in Rascoe’s driveway. As the officer approached the driver’s side of the vehicle, Rascoe quickly exited the vehicle and said, “I don’t want a speeding ticket.” The officer told him to stop and stay where he was. Rascoe complied. The officer then asked Rascoe for his driver’s license and proof of insurance. Rascoe responded that he did not have his license on him and that he did not have insurance. Rascoe asked a child in the yard at his residence to retrieve his license from inside a different vehicle in the yard of the residence and the child did. The officer then ran Rascoe’s license and also learned that the tag came back to a different vehicle. The officer then believed that the vehicle may have been stolen. Next, he asked Rascoe if the vehicle was his and Rascoe said, “Yes.” Rascoe appeared nervous. The officer then asked Rascoe if he had illegal drugs or weapons in the vehicle. Rascoe replied, “No.” Next, the officer asked for permission to search the vehicle and Rascoe said, “No.” The officer decided to call for a K-9 unit. The K-9 unit arrived approximately four minutes later. The K-9 officer walked his dog around the vehicle and the dog alerted on the front driver’s door. A search was then conducted of the vehicle. Seized from the driver’s side floorboard was a very small quantity of marijuana. Seized from the trunk of the vehicle were three firearms. Two of the firearms were loaded. The firearms were described as a Smith & Wesson, model SD40, .40 caliber pistol, a Ruger, model P89, .9 caliber pistol and Smith & Wesson, model 51, .22 caliber revolver. Rascoe told the officers that he was aware of one of the firearms but not the other two. Rascoe asked the officers if the “feds were going to get the case?” One officer respond, I don’t know.” Rascoe asked again, “do you think the feds are gonna pick up this case?” That officer then responded, “You know you are a felon and should not be riding around with guns in the trunk.” At that time, Rascoe had been convicted of a felony.Officers of the Selma, AL Police Department along with special agents of the Bureau of Alcohol Tobacco Firearms and Explosives investigated the case and brought it to the U. S. Attorney's Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
Current and Former Precious Metals Traders Charged with Multi-Year Market Manipulation Racketeering ConspiracyRead the Press Release
Two current precious metals traders and one former trader in the New York offices of a U.S. bank (Bank A) were charged in an indictment unsealed today for their alleged participation in a racketeering conspiracy and other federal crimes in connection with the manipulation of the markets for precious metals futures contracts, which spanned over eight years and involved thousands of unlawful trading sequences.
Charged in the indictment are:
- Gregg Smith, 55, of Scarsdale, New York. Smith was an executive director and trader on Bank A’s precious metals desk in New York. He joined Bank A in May 2008 after it acquired another U.S. bank (Bank B).
- Michael Nowak, 45, of Montclair, New Jersey. Nowak was a managing director and ran Bank A’s global precious metals desk. He joined Bank A in July 1996.
- Christopher Jordan, 47, of Mountainside, New Jersey. Jordan joined Bank A in March 2006 and was an executive director and trader on Bank A’s precious metals desk in New York. Jordan left Bank A in December 2009 and worked as a precious metals trader at a Swiss bank (Bank C) in New York from March 2010 until August 2010. From June 2011 until October 2011, Jordan traded precious metals futures contracts as an employee of a financial service company (Company D) in New York.
“The defendants and others allegedly engaged in a massive, multiyear scheme to manipulate the market for precious metals futures contracts and defraud market participants,” said Assistant Attorney General Brian A. Benczkowski. “These charges should leave no doubt that the Department is committed to prosecuting those who undermine the investing public’s trust in the integrity of our commodities markets.”
“Smith, Nowak, Jordan, and their co-conspirators allegedly engaged in a complex scheme to trade precious metals in a way that negatively affected the natural balance of supply-and-demand,” said FBI Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office. “Not only did their alleged behavior affect the markets for precious metals, but also correlated markets and the clients of the bank they represented. For as long as we continue to see this type of illegal activity in the marketplace, we’ll remain dedicated to investigating and bringing to justice those who perpetrate these crimes.”
Each of the three defendants was charged with one count of conspiracy to conduct the affairs of an enterprise involved in interstate or foreign commerce through a pattern of racketeering activity (more commonly referred to as RICO conspiracy); one count of conspiracy to commit wire fraud affecting a financial institution, bank fraud, commodities fraud, price manipulation and spoofing; one count of bank fraud and one count of wire fraud affecting a financial institution. In addition, Smith and Nowak were each charged with one count of attempted price manipulation, one count of commodities fraud and one count of spoofing.
Smith is expected to make an initial appearance in the Southern District of New York before U.S. Magistrate Judge Judith C. McCarthy, and Nowak and Jordan are expected to make their initial appearances in the District of New Jersey before U.S. Magistrate Judge Michael A. Hammer. The case was indicted in the Northern District of Illinois and has been assigned to U.S. District Judge Edmond E. Chang.
As alleged in the indictment, between approximately May 2008 and August 2016, the defendants and their co-conspirators were members of Bank A’s global precious metals trading desk in New York, London and Singapore with varying degrees of seniority and supervisory responsibility over others on the desk. As it relates to the RICO conspiracy, the defendants and their co-conspirators were allegedly members of an enterprise—namely, the precious metals desk at Bank A—and conducted the affairs of the desk through a pattern of racketeering activity, specifically, wire fraud affecting a financial institution and bank fraud.
The indictment alleges that the defendants engaged in widespread spoofing, market manipulation and fraud while working on the precious metals desk at Bank A through the placement of orders they intended to cancel before execution (Deceptive Orders) in an effort to create liquidity and drive prices toward orders they wanted to execute on the opposite side of the market. In thousands of sequences, the defendants and their co-conspirators allegedly placed Deceptive Orders for gold, silver, platinum and palladium futures contracts traded on the New York Mercantile Exchange Inc. (NYMEX) and Commodity Exchange Inc. (COMEX), which are commodities exchanges operated by CME Group Inc. By placing Deceptive Orders, the defendants and their co-conspirators allegedly intended to inject false and misleading information about the genuine supply and demand for precious metals futures contracts into the markets, and to deceive other participants in those markets into believing something untrue, namely that the visible order book accurately reflected market-based forces of supply and demand. This false and misleading information was intended to, and at times did, trick other market participants into reacting to the apparent change and imbalance in supply and demand by buying and selling precious metals futures contracts at quantities, prices and times that they otherwise likely would not have traded, the indictment alleges.
As also alleged in the indictment, the defendants and their co-conspirators defrauded Bank A’s clients who had bought or sold “barrier options” by trading precious metals futures contracts in a manner that attempted to push the price towards a price level at which Bank A would make money on the option (barrier-running), or away from a price level at which Bank A would lose money on the option (barrier-defending). Namely, when barrier-running, the defendants and their co-conspirators would allegedly place orders for precious metals futures contracts in a way that was intended to deliberately trigger the barrier option held by Bank A. Conversely, when barrier-defending, the defendants and their co-conspirators would allegedly place orders for precious metals futures contracts in a way that was intended to deliberately avoid triggering the barrier option held by clients of Bank A.
The indictment also identifies two former Bank A precious metals traders, John Edmonds and Christian Trunz, as being among the defendant’s co-conspirators. Edmonds worked at Bank A from 2004 to 2017 and was a trader on Bank A’s precious metals desk, leaving as a vice president. On Oct. 9, 2018, Edmonds pleaded guilty in the District of Connecticut to an information charging him with one count of commodities fraud and one count of conspiracy to commit wire fraud, commodities fraud, price manipulation and spoofing. Trunz is a former precious metals trader at Bank A who worked at the bank from 2007 to August 20, 2019, leaving as an executive director. On Aug. 20, 2019, Trunz pleaded guilty in the Eastern District of New York to an information charging him with one count of conspiracy to engage in spoofing and one count of spoofing.
This case is the result of an ongoing investigation by the FBI’s New York Field Office. The Commodity Futures Trading Commission’s Division of Enforcement provided assistance in this case. Trial Attorneys Avi Perry and Matthew F. Sullivan of the Criminal Division’s Fraud Section are prosecuting the case.
The charges in the indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Individuals who believe that they may be a victim in these cases should visit the Fraud Section’s Victim Witness website for more information at https://www.justice.gov/criminal-fraud/victim-witness-program.
Couple Who Worked at Local Research Institute for 10 Years Charged with Stealing Trade Secrets, Wire FraudRead the Press Release
COLUMBUS, Ohio – A former Dublin, Ohio couple has been charged with crimes connected to stealing exosome-related trade secrets concerning the research, identification and treatment of a range of pediatric medical conditions.
John C. Demers, Assistant Attorney General for National Security, Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Todd A. Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the charges.
According to the indictment, Yu Zhou, 49, and Li Chen, 46, currently of San Diego, Calif., conspired to, attempted to and did steal scientific trade secrets related to exosomes and exosome isolation from Nationwide Children’s Hospital’s Research Institute for their own personal financial gain.
The defendants were arrested in California in July and the case was unsealed today at the defendants’ arraignments in federal court in Columbus at 2pm before U.S. District Judge Sarah D. Morrison.
Zhou and Chen are spouses who worked in separate medical research labs at the Research Institute for 10 years each (Zhou from 2007 until 2017 and Chen from 2008 until 2018). Exosomes play a key role in the research, identification and treatment of a range of medical conditions, including necrotizing enterocolitis (a condition found in premature babies), liver fibrosis and liver cancer.
The husband and wife allegedly founded a company in China in 2015 without the hospital’s knowledge. While Zhou and Chen continued to be employed by Nationwide Children’s, they marketed products and services related to exosome isolation through their Chinese company.
The indictment also alleges that in 2017, Zhou helped co-found an American biotechnology company. As of 2019, the company’s website advertised multiple products and services related to exosome isolation, including a kit that was developed from a trade secret created at a Nationwide Children’s research lab.
Zhou and Chen allegedly used the hospital’s Research Institute resources and equipment to conduct the exosome research for their unauthorized, outside work.
In November 2017, Zhou and Chen allegedly received more than $876,000 and stock related to an asset purchase agreement involving the American biotechnology company. It is also alleged Zhou entered into a stock purchase agreement with that same company under which he would receive $450,000.
Zhou resigned from the Research Institute at Nationwide Children’s, effective November 10, 2017. On January 31, 2018, Chen resigned from her position at the research institute.
Before his official last day of employment with the research institute, Zhou allegedly participated in a press release announcing the American company’s plans to market and distribute “proprietary exosome isolation systems” from its headquarters in Central Ohio.
“Nationwide Children’s Hospital devoted years of work and its own money to researching exosomes in order to promote honorable medical advances,” U.S. Attorney Glassman said. “The hospital’s Research Institute took reasonable measures to keep its trade secrets secret. I commend the cooperation of Nationwide Children’s throughout this investigation.”
“The theft of trade secrets is a growing threat that severely impacts our economy and our national security,” stated FBI Cincinnati Special Agent in Charge Todd Wickerham. “The FBI is committed to investigating these cases and working with all of our partners to protect intellectual property.”
Conspiring to, attempting to and committing theft of trade secrets is punishable by up to 10 years in prison. Conspiring to, attempting to and committing wire fraud carries a potential maximum sentence of up to 20 years in prison.
Assistant Attorney General Demers and U.S. Attorney Glassman commended the investigation of this case by the FBI, as well as Assistant United States Attorneys S. Courter Shimeall, Peter K. Glenn-Applegate and J. Michael Marous and National Security Division Trial Attorney Matthew J. McKenzie, who are prosecuting the case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Couple Who Worked at Local Research Institute for 10 Years Charged with Stealing Trade Secrets, Wire FraudRead the Press Release
A former Dublin, Ohio, couple has been charged with crimes related to stealing exosome-related trade secrets concerning the research, identification and treatment of a range of pediatric medical conditions announced Assistant Attorney General John C. Demers of National Security, U.S. Attorney Benjamin C. Glassman for the Southern District of Ohio, Assistant Director John Brown of the Counterintelligence division and FBI Special Agent in Charge Todd Wickerham of the Cincinnati division.
“Nationwide Children’s Hospital devoted years of work and its own money to researching exosomes in order to promote honorable medical advances,” U.S. Attorney Glassman said. “The hospital’s Research Institute took reasonable measures to keep its trade secrets secret. I commend the cooperation of Nationwide Children’s throughout this investigation.”
“The theft of trade secrets is a growing threat that severely impacts our economy and our national security,” stated FBI Cincinnati Special Agent in Charge Todd Wickerham. “The FBI is committed to investigating these cases and working with all of our partners to protect intellectual property.”
According to the indictment, Yu Zhou, 49, and Li Chen, 46, currently of San Diego, California, conspired to, attempted to and did steal scientific trade secrets related to exosomes and exosome isolation from Nationwide Children’s Hospital’s Research Institute for their own personal financial gain.
The defendants were arrested in July and the case was unsealed today at the defendants’ arraignments in federal court in Columbus at 2pm before U.S. District Judge Sarah D. Morrison.
Zhou and Chen are spouses who worked in separate medical research labs at the Research Institute for 10 years each (Zhou from 2007 until 2017 and Chen from 2008 until 2018). Exosomes play a key role in the research, identification and treatment of a range of medical conditions, including necrotizing enterocolitis (a condition found in premature babies), liver fibrosis and liver cancer.
The husband and wife allegedly founded a company in China in 2015 without the hospital’s knowledge. While Zhou and Chen continued to be employed by Nationwide Children’s, they marketed products and services related to exosome isolation through their Chinese company.
The indictment also alleges that in 2017, Zhou and Chen helped co-found an American biotechnology company. As of 2019, the company’s website advertises multiple products and services related to exosome isolation, including a kit that was developed from a trade secret created at a Nationwide Children’s research lab.
Zhou and Chen allegedly used the hospital’s Research Institute resources and equipment to conduct the exosome research necessary for their unauthorized, outside work.
In November 2017, Zhou and Chen allegedly received more than $876,000 and stock related to an asset purchase agreement involving the American biotechnology company. It is also alleged Zhou entered into a stock purchase agreement with that same company under which he would receive $450,000.
Zhou resigned from the Research Institute at Nationwide Children’s, effective Nov. 10, 2017. On Jan. 31, 2018, Chen resigned from her position at the research institute.
Before his official last day of employment with the research institute, Zhou allegedly participated in a press release announcing the American company’s plans to market and distribute “proprietary exosome isolation systems” from its headquarters in Central Ohio.
Conspiring to, attempting to and committing theft of trade secrets is punishable by up to 10 years in prison. Conspiring to, attempting to and committing wire fraud carries a potential maximum sentence of up to 20 years in prison.
Assistant Attorney General Demers and U.S. Attorney Glassman commended the investigation of this case by the FBI, as well as Assistant United States Attorneys S. Courter Shimeall, Peter Glenn-Applegate and J. Michael Marous and National Security Division trial attorney Matthew J. McKenzie, who are prosecuting the case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
Corrections Officer Sentenced for Scheme to Smuggle Opioids into MCI-NorfolkRead the Press Release
BOSTON – A former corrections officer at the Massachusetts Correctional Institute facility in Norfolk (MCI-Norfolk) was sentenced today in federal court in Boston in connection with a conspiracy to smuggle Suboxone strips into the facility for an inmate.
Steven J. Frazer, 29, of Cumberland, R.I., was sentenced by U.S. Senior District Court Judge George A. O’Toole Jr. to 30 days in prison, two years of supervised release and ordered to pay forfeiture of $2,500. In May 2019, Frazer pleaded guilty to an Information charging him with one count of conspiracy to possess a controlled substance with intent to distribute.
Beginning around Nov. 14, 2018, Frazer, who was working as a corrections officer, arranged with a cooperating witness to smuggle Suboxone strips into MCI-Norfolk to sell to inmates. Suboxone is a Class III controlled substance used to treat heroin addiction, but some people abuse it to get high. It is coveted as contraband in prisons across the nation and particularly in New England.
Around midnight on Sunday, Nov. 18, 2018, the cooperating witness met Frazer in a South Attleboro parking lot and provided him with 40 Suboxone strips, 24 pages of K2 (a synthetic cannabinoid, which is more powerful and more dangerous than marijuana), and $2,500 in cash. After the meeting – which was audio and video recorded by law enforcement – federal agents arrested Frazer.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Commissioner Carol A. Mici of the Massachusetts Department of Correction made the announcement today. Assistant U.S. Attorney Eugenia M. Carris of Lelling’s Public Corruption and Special Prosecutions Unit is prosecuting the case.
Chinese Government Employee Charged in Manhattan Federal Court with Participating in Conspiracy to Fraudulently Obtain U.S. VisasRead the Press Release
The Department announced today the arrest of Zhongsan Liu, who was charged by complaint for his involvement in a conspiracy to fraudulently obtain U.S. visas for Chinese government employees. Liu was arrested today in Fort Lee, New Jersey, and presented this afternoon in Manhattan federal court before the U.S. Magistrate Judge Ona T. Wang.
“We welcome foreign students and researchers, including from China, but we do not welcome visa fraud – especially on behalf of a government,” said Assistant Attorney General John C. Demers of National Security. “We will continue to confront Chinese government attempts to subvert American law to advance its own interests in diverting U.S. research and know-how to China.”
“As alleged Zhongsan Liu conspired to obtain research scholar visas fraudulently for people whose actual purpose was not research but recruitment,” said U.S. Attorney Geoffrey S. Berman. “Rather than helping to bring students to the U.S., Liu allegedly conspired to defraud this country’s visa system to advance his efforts to attract U.S. experts to China. Thanks to the FBI, this alleged abuse of the visa system has been halted.”
"Zhongsan Liu broke the law by seeking visas for employees of the government of The People's Republic of China to enter the United States under false pretenses. Individuals obtained visas under the guise of research scholars, but in reality their assignment was to recruit top U.S. talent to benefit the government of China," said Assistant Director John Brown of the FBI's Counterintelligence Division. "The FBI recognizes the immense benefit of academic freedom in our open society, and we will investigate those who break our laws in an effort to take advantage of that freedom.”
“The allegation that an employee of a foreign government has worked to mask the true purpose of an individual’s presence in the United States isn’t news to the FBI,” said FBI Assistant Director William F. Sweeney Jr. “This alleged behavior should be another alarm bell that foreign governments are constantly working to exploit research work being conducted throughout the United States. Not everyone shares the honest goal of conducting open research to benefit society as a whole. This case is another example of the pervasive and organized effort, in this instance an allegedly flat-out illegal one, to fulfill a top priority of collecting information to advantage a foreign adversary. Putting a halt to Mr. Liu’s alleged actions are an important and significant step to highlighting these activities. The FBI New York, along with our intelligence community partners, will continue to disrupt the behavior when it is detected.”
According to the allegations in the Complaint unsealed in Manhattan federal court:
From approximately 2017, up to and including September 2019, Liu participated in a conspiracy to fraudulently procure U.S. visas for employees of the government of the People’s Republic of China (PRC Government). Liu operates the New York office of the China Association for International Exchange of Personnel (CAIEP-NY). CAIEP-NY is a PRC Government agency that, among other things, recruits U.S. scientists, academics, engineers and other experts to work in China.
Liu worked with others, including other PRC Government employees in the United States, to fraudulently procure J-1 Research Scholar visas for a CAIEP-NY employee (CC-1) and a prospective CAIEP-NY employee (the CAIEP-NY Hire). The J-1 Research Scholar visa program permits foreign nationals to come to the United States for the primary purpose of conducting research at a corporate research facility, museum, library, university or other research institution.
In or about April 2018, CC-1 applied for and received a J-1 visa to conduct research at a particular U.S. university (University-1) located outside of New York. Although CC-1 represented to the U.S. Government that she was entering the United States for the primary purpose of conducting research at University-1, CC-1’s actual purpose in the United States consisted of performing full-time talent-recruitment work at CAIEP-NY. Liu helped CC-1 take measures to enhance her false appearance as a Research Scholar at University-1 by, among other things, directing CC-1 to report to University-1 upon her arrival in the United States; ensuring that CC-1 obtained a driver’s license in the state where University-1 is located; and instructing CC-1 to periodically visit University-1 while working full-time at CAIEP-NY.
In addition, Liu attempted to enable the CAIEP-NY Hire to obtain a J-1 Research Scholar visa under false pretenses. In particular, Liu reached out to contacts at multiple U.S. universities in order to arrange for a university to invite the CAIEP-NY Hire to come to the United States as a J-1 Research Scholar. In truth and in fact, however, Liu intended that the CAIEP-NY Hire’s primary purpose in the United States would consist of engaging full-time in the talent-recruitment work of CAIEP-NY.
Liu, 57, of Fort Lee, New Jersey, is charged with one count of conspiracy to commit visa fraud, which carries a maximum sentence of five years. 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.
Assistant Attorney General Demers and U.S. Attorney Berman praised the outstanding investigative work of the FBI, and thanked the U.S. Department of State, Department of Homeland Security, Homeland Security Investigations, and the Counterintelligence and Export Control Section of the U.S. Department of Justice’s National Security Division for their assistance.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorney Gillian Grossman is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Chinese Government Employee Charged in Manhattan Federal Court with Participating in Conspiracy to Obtain U.S. Visas FraudulentlyRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, John C. Demers, Assistant Attorney General for National Security, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and John Brown, Assistant Director of the FBI’s Counterintelligence Division, announced the arrest of ZHONGSAN LIU, for his involvement in a conspiracy to fraudulently obtain U.S. visas for Chinese government employees. LIU was arrested today in Fort Lee, New Jersey, and presented this afternoon in Manhattan federal court before the U.S. Magistrate Judge Ona T. Wang.
U.S. Attorney Geoffrey S. Berman stated: “As alleged Zhongsan Liu conspired to obtain research scholar visas fraudulently for people whose actual purpose was not research but recruitment. Rather than helping to bring students to the U.S., Liu allegedly conspired to defraud this country’s visa system to advance his efforts to attract U.S. experts to China. Thanks to the FBI, this alleged abuse of the visa system has been halted.”
Assistant Attorney General John C. Demers said: “We welcome foreign students and researchers, including from China, but we do not welcome visa fraud – especially on behalf of a government. We will continue to confront Chinese government attempts to subvert American law to advance its own interests in diverting U.S. research and know-how to China.”
FBI Assistant Director William F. Sweeney Jr. said: “The allegation that an employee of a foreign government has worked to mask the true purpose of an individual’s presence in the United States isn’t news to the FBI. This alleged behavior should be another alarm bell that foreign governments are constantly working to exploit research work being conducted throughout the United States. Not everyone shares the honest goal of conducting open research to benefit society as a whole. This case is another example of the pervasive and organized effort, in this instance an allegedly flat-out illegal one, to fulfill a top priority of collecting information to advantage a foreign adversary. Putting a halt to Mr. Liu’s alleged actions are an important and significant step to highlighting these activities. The FBI New York, along with our intelligence community partners, will continue to disrupt the behavior when it is detected.”
According to the allegations in the Complaint unsealed in Manhattan federal court[1]:
From approximately 2017, up to and including September 2019, LIU participated in a conspiracy to fraudulently procure U.S. visas for employees of the government of the People’s Republic of China (the “PRC Government”). LIU operates the New York office of the China Association for International Exchange of Personnel (“CAIEP-NY”). CAIEP-NY is a PRC Government agency that, among other things, engages in talent-recruitment for the benefit of the PRC. In particular, CAIEP recruits U.S. scientists, academics, engineers, and other experts to work in China.
LIU worked with others, including other PRC Government employees in the United States, to fraudulently procure J-1 Research Scholar visas for a CAIEP-NY employee (“CC-1”) and a prospective CAIEP-NY employee (“the CAIEP-NY Hire”). The J-1 Research Scholar visa program permits foreign nationals to come to the United States for the primary purpose of conducting research at a corporate research facility, museum, library, university, or other research institution.
In or about April 2018, CC-1 applied for and received a J-1 visa to conduct research at a particular U.S. university (“University-1”) located outside New York. Although CC-1 represented to the U.S. Government that she was entering the United States for the primary purpose of conducting research at University-1, CC-1’s actual purpose in the United States consisted of performing full-time talent-recruitment work at CAIEP-NY. LIU helped CC-1 take measures to enhance her false appearance as a Research Scholar at University-1 by, among other things, directing CC-1 to report to University-1 upon her arrival in the United States; ensuring that CC-1 obtained a driver’s license in the state where University-1 is located; and instructing CC-1 to periodically visit University-1 while working full-time at CAIEP-NY.
In addition, LIU attempted to enable the CAIEP-NY Hire to obtain a J-1 Research Scholar visa under false pretenses. In particular, LIU reached out to contacts at multiple U.S. universities in order to arrange for a university to invite the CAIEP-NY Hire to come to the United States as a J-1 Research Scholar. In truth and in fact, however, LIU intended that the CAIEP-NY Hire’s primary purpose in the United States would consist of engaging full-time in the talent-recruitment work of CAIEP-NY.
* * *
LIU, 57, of Fort Lee, New Jersey, is charged with one count of conspiracy to commit visa fraud, which carries a maximum sentence of five 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.
Mr. Berman praised the outstanding investigative work of the FBI, and thanked the U.S. Department of State, Department of Homeland Security - Homeland Security Investigations, and the Counterintelligence and Export Control Section of the U.S. Department of Justice’s National Security Division for their assistance.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorney Gillian Grossman is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the descriptions of the Complaint constitute only allegations, and every fact described should be treated as an allegation.
Cape Coral Man Sentenced to 8 Years for Possession of Child PornographyRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell today sentenced Warren Alan Baxter (54, Cape Coral) to eight years in federal prison for possession of child pornography. The court also ordered Baxter to forfeit his computer, hard drive, and cellphone, which he had used to facilitate the offense.
Baxter had pleaded guilty on June 20, 2019.
According to court documents, on June 5, 2018, law enforcement received a report that Baxter had asked a 17-year-old boy to send him nude photos. On July 5, 2018, pursuant to that report and a subsequent investigation, officers went to Baxter’s home. During an interview with officers, Baxter admitted that he had images of underage girls on his phone, and he provided the officers with his computer, hard drive, and cellphone. A search of those items revealed more than 700 videos and more than 900 images of minors engaging in sexually explicit conduct. Baxter acknowledged that he knew there were images of young children engaged in sexually explicit conduct on his devices and that he had obtained all of the images over the internet.
This case was investigated by the Federal Bureau of Investigation’s Innocent Images Task Force, with assistance from the Lee County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Charles D. Schmitz and Yolande G. Viacava.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Brazen theft crew stole jewelry and cash from temples around the countryRead the Press Release
ATLANTA – Valer Iazmin Varga, Robert-Auras Adam, and Ana-Loredana Adam, all Romanian nationals, have been arraigned on federal charges of conspiracy to transport, in interstate commerce, stolen goods with a value of at least $5,000 and transporting, in interstate commerce, gold jewelry with a value of at least $5,000, which the defendants stole from the Hindu Temple of Atlanta, in Riverdale, Georgia. Co-defendant Stela Patricia Varga was arrested on September 11, 2019 in Slidell, Louisiana on a federal arrest warrant related to the same charges.
“These defendants posed as tourists and allegedly stole gold and money from places of worship,” said U.S. Attorney Byung J. “BJay” Pak. “They exploited their victims’ custom of receiving visitors with open arms in their temples and religious centers, and also allegedly involved their minor children in their theft scheme.”
“It is deeply troubling and hard to fathom that criminals would exploit the tenets of one’s faith by taking advantage of their kindness,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Even though these suspects are alleged to have travelled from state to state to commit these crimes, they were not able to elude arrest, thanks to our partnerships with federal, state and local law enforcement agencies in six different states.”
According to U.S. Attorney Pak, the charges, and other information presented in court: The defendants traveled to Hindu and Buddhist places of worship in at least six states, including Georgia, for the purpose of stealing gold jewelry or cash. Visiting the temples during operating hours, the defendants allegedly posed as tourists and asked representatives of the temples questions regarding the customs and practices associated with the temples. As one or more of the defendants questioned temple staff members, other defendants stole gold jewelry and cash from the temples, sometimes taking gold jewelry directly from statues within the sanctuaries in the form of various deities.
Although the defendants allegedly attempted to interfere with the temples' security cameras, the defendants were captured on camera within the sanctuaries; and in some cases, the defendants were captured on film in the act of stealing jewelry. When three of the defendants were arrested on local charges in connection with the thefts in early June 2019, they were in possession of over $50,000 in U.S. currency, despite the fact that the defendants have no record of employment in the U.S.
Valer Iazmin Varga, 28, Robert-Auras Adam, 31, and Ana-Loredana Adam, 30, all Romanian nationals, were arraigned on September 11, 2019, before U.S. Magistrate Judge Russell G. Vineyard. The defendants were indicted by a federal grand jury in the Northern District of Georgia on August 20, 2019.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the FBI, Atlanta Division, Transnational Organized Crime Squad with assistance by the FBI’s New Orleans Gang Task Force, the Forsyth County Sheriff’s Office (Georgia), the Lilburn Police Department (Georgia), the Clayton County Police Department (Georgia), the Delaware County Sherriff’s Office (Ohio), the Bloomingdale Police Department (Illinois), the Lemont Police Department (Illinois), the Bridgeton Police Department (Missouri), and the Franklin Police Department (New Jersey).
Assistant U.S. Attorney Jessica C. Morris is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Braxton County woman admits to methamphetamine distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Brandi Dawn Singleton, of Burnsville, West Virginia, has admitted to her role in a methamphetamine distribution operation, United States Attorney Bill Powell announced.
Singleton, age 41, pled guilty to one count of Distribution of Methamphetamine in Proximity to a Protected Location.” Singleton admitted to selling methamphetamine near Gilmer County High School in September 2018.
Singleton faces at least one and up to 40 years incarceration and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Brandon S. Flower is prosecuting the case on behalf of the government. The Mountain Lakes Drug & Violent Crimes Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Belgrade man sentenced to 20 years in prison for child porn crimesRead the Press Release
MISSOULA—Belgrade resident John Michael Whitehead, who admitted child pornography crimes after sending an undercover agent images of children engaged in sexually explicit conduct, was sentenced today to 20 years in prison, followed by 20 years of supervised release and $3,000 restitution to one of the victims, U.S. Attorney Kurt Alme said.
Whitehead, 36, pleaded guilty in March to distribution of child porn and receipt of child porn.
Chief U.S. District Judge Dana L. Christensen presided.
“Child pornography crimes will not be tolerated in Montana and those who seek to harm children for sexual gratification will be prosecuted to the fullest extent of the law. Every person who distributes or receives child pornography re-injures the victims,” U.S. Attorney Alme said.
“I want to thank Assistant U.S. Attorney Cyndee Peterson, who prosecuted the case, along with the Internet Crimes Against Children Task Force, FBI, Homeland Security Investigations and Washington D.C. Internet Crimes Against Children Task Force. I also want to thank our Montana law enforcement partners, including the Gallatin County Sheriff’s Office, Bozeman Police Department, Belgrade Police Department, Lewis and Clark Sheriff’s Office, Helena Police Department and Montana Department of Child and Family Services,” U.S. Attorney Alme said.
"When crimes against children fall under the authority of the FBI, we will act swiftly to protect society's most vulnerable and investigate those who exploit them," said Paul Haertel, Special Agent in Charge of the FBI's Salt Lake City Field Office. “The FBI is appreciative of our law enforcement partners’ expeditious assistance and cooperation in ensuring the safety and welfare of Montana’s children.”
In court documents filed in the case, the prosecution said that in December 2018, an undercover agent with the FBI’s Task Force in Washington, D.C., was chatting online with Whitehead in a group known to exchange child porn. During the chat, Whitehead sent the agent an image of a child engaged in sexually explicit conduct. In January, Whitehead again sent the agent a video of a prepubescent child engaged in sexually explicit conduct with an adult male.
The investigation led to the execution of a search warrant of Whitehead’s residence on Jan. 9, 2019. Agents seized multiple items, including two smart phones. Whitehead admitted in an interview with agents that he had been using an app on his phone to trade child porn. Investigators found videos and images of child porn on the two phones.
Assistant U.S. Attorney Cyndee Peterson prosecuted the case, which was investigated by the Internet Crimes Against Children Task Force, FBI, Homeland Security Investigations and the Washington D.C. Internet Crimes Against Children Task Force.
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Baltimore Bail Bonds Business Owner Sentenced to 7 Years in Federal Prison for A Sex Trafficking Conspiracy Involving A Minor FemaleRead the Press Release
Baltimore, Maryland – U.S. District Judge Deborah K. Chasanow today sentenced Charles Mario Brown, Sr., age 48, of Baltimore, to seven years in federal prison, followed by 15 years of supervised release, for conspiracy to commit sex trafficking. Brown admitted that he operated a prostitution business involving a 16-year-old female, and at least four adult females, who performed commercial sex acts in the Baltimore area.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge John Eisert of Homeland Security Investigations (HSI); and Harford County Sheriff Jeffrey R. Gahler.
U.S. Attorney Robert K. Hur stated, “We will continue to work with our law enforcement partners to bring human traffickers to justice. These violent criminals exploit our most vulnerable for profit and must be stopped.”
According to Brown’s plea agreement, Brown and his co-conspirator met a 16-year-old runaway (“Victim 1”) in November 2016, while she was walking in Baltimore. Brown and the co-conspirator directed Victim 1 to meet with sex customers who called or sent text messages in response to online prostitution advertisements featuring the victim, which were posted by the conspirators. The conspirators agreed to provide Victim 1 with food and a place to stay in exchange for money she earned through commercial sex acts, and bought her lingerie that she wore in photos taken for prostitution ads. Brown drove Victim 1 to outcalls, where Victim 1 engaged in commercial sex acts and collected payment. Brown and the co-conspirator directed Victim 1 to give them at least some of the proceeds from her commercial sex acts, and she did so.
On December 9, 2016, an undercover Harford County Sheriff’s Office detective contacted a phone number found in the cell phone of a deceased male sex customer A.G. (A.G. suffered a fatal heroin overdose in a hotel room in Edgewood, Maryland in the presence of one of Brown’s adult female sex workers.) The detective contacted the phone number to arrange an overnight commercial sex date at a hotel in Edgewood and to request heroin. At the co-conspirator’s request, Victim 1 communicated with the detective to make arrangements for the commercial sex date, which included taking $1,000 for the purchase of heroin after arriving at the hotel.
As detailed in his plea agreement, Brown and the co-conspirator transported Victim 1 and an adult female to the hotel. Victim 1 and the woman went into the hotel room identified by the detective. Investigators recognized Victim 1 from prostitution ads posted online, and Victim 1 identified herself by the name listed in those ads. Brown and his co-conspirator, who were waiting in the SUV outside the hotel room, were arrested and their cell phones were seized. Forensic examination of the cell phones revealed numerous communications in furtherance of the prostitution business.
This case was investigated by law enforcement agencies who are members of the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members of the Task Force include federal, state, and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html. Suspected instances of human trafficking can be reported to HSI’s tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.
In addition, the case was prosecuted 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. For more information about Internet safety education, please visit www.justice.gov/psc and click on the “resources” tab on the left of the page.
United States Attorney Robert K. Hur commended Homeland Security Investigations and the Harford County Sheriff’s Office for their work in the Brown case. Mr. Hur thanked Assistant U.S. Attorney Matthew J. Maddox, who is prosecuting the case.
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Allentown Man Sentenced to 31 Months’ Imprisonment for Role in Heroin Trafficking ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Deovonie Birch, age 23, of Allentown, was sentenced on September 13, 2019 to serve 31 months’ imprisonment by Senior U.S. District Court Judge A. Richard Caputo, for his role in a conspiracy to distribute and possess with intent to distribute heroin.
According to United States Attorney David J. Freed, the defendant previously pleaded guilty to participating in the conspiracy during 2015 and 2016. Deovonie Birch admitted that he acted as a sub-distributor of heroin for his father, Robert Birch, who headed-up the conspiracy. The conspiracy obtained heroin from suppliers in New York and Allentown, and distributed it to customers in Carbon County, Pennsylvania, and elsewhere. Deovonie Birch was responsible for distributing between 60 and 80 grams of heroin, which is approximately equivalent to between 2300 and 3300 retail bags of heroin.
Judge Caputo also ordered Birch to serve three years on supervised release following his prison sentence.
Birch was indicted by a grand jury in September 2016, as a result of an investigation by agents of the Drug Enforcement Administration, members of the Pennsylvania State Police, and Allentown Police. Assistant United States Attorney Francis P. Sempa prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Allentown Man Guilty of Heroin Trafficking ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Robert Birch, age 46, of Allentown, pleaded guilty on September 13, 2019 to conspiracy to distribute more than 100 grams of heroin before Senior U.S. District Court Judge A. Richard Caputo.
According to United States Attorney David J. Freed, Birch admitted to regularly obtaining heroin from suppliers in New York and Allentown and distributing the drug in Carbon County, Pennsylvania, and elsewhere. Birch admitted to being responsible for distributing between 100 grams and 400 grams of heroin, which is approximately equivalent to between 4000 and 16,000 retail bags of heroin.
Judge Caputo scheduled sentencing for September 25, 2019.
Birch was indicted by a grand jury in September 2016, as a result of an investigation by agents of the Drug Enforcement Administration, members of the Pennsylvania State Police, and Allentown Police. Assistant United States Attorney Francis P. Sempa is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
The maximum penalty under federal law is 40 years’ imprisonment. The charge also carries a mandatory minimum penalty of five years in prison. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Akron Woman Sentenced to Prison for Trafficking Heroin, Carfentanil and MethamphetamineRead the Press Release
CHARLESTON, W.Va. – An Akron, Ohio, woman was sentenced to federal prison for a drug trafficking crime, announced United States Attorney Mike Stuart. Azriel Irene Westfall, 21, was sentenced to 18 months in prison for possession with intent to distribute heroin and methamphetamine. Westfall must also serve a three year term of supervised release after her prison term.
“Another Akron drug dealer bringing powerful and deadly drugs – 30 grams of a heroin and carfentanil mixture, heroin and methamphetamine - into our area,” said United States Attorney Mike Stuart. “We are working closely with our partners in Akron and the Northern District of Ohio. Our partnerships are growing stronger and our ability to stop drug dealers in the act is improving. We don’t want drug dealers here. If they come to my district and are arrested, they can plan on no return trips anytime soon. Westfall won’t being going home to Akron until she serves her time in federal prison.”
On February 28, 2018, police investigators executed a search warrant on a drug house on Mountain Road in Charleston, where Westfall was staying with several other people. The investigators searched Westfall’s purse and found close to 30 grams of a mixture of heroin and carfentanil (a powerful fentanyl analogue); almost 10 grams of heroin; and around 3 grams of ice methamphetamine. Westfall was also carrying over $6,000 in drug proceeds in her purse.
The Metropolitan Drug Enforcement Network Team (MDENT) and the Drug Enforcement Administration conducted the investigation. Senior United States District Judge John T. Copenhaver, Jr., imposed the sentence. Assistant United States Attorney Drew O. Inman handled the prosecution.
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"Serial Fraudster" Sentenced to 10 Years in Prison for Bank FraudRead the Press Release
ROCK ISLAND, Ill. – Ramsey Denwon Hampton, 49, of Chicago, has been ordered to serve 10 years in federal prison for defrauding IH Mississippi Valley Credit Union. On April 5, 2019, Hampton pleaded guilty to making false statements regarding his true identity to open an account at IH Mississippi Valley Credit Union, wherein he deposited forged checks and withdrew funds. When Hampton was arrested, he possessed the identities of more than 800 individuals.
At sentencing, on Sept. 13, 2019, the government requested a sentence above the range prescribed by the U.S. Sentencing Guidelines. Chief U.S. District Judge Sara Darrow agreed noting that Hampton is “a serial liar, a serial thief, and a serial fraudster,” and that Hampton’s criminal record and the manner in which he committed the offenses necessitated a sentence significantly higher than the Guidelines range. Judge Darrow found that Hampton committed a serious crime that required thought, intellect, scheming, and sophisticated methods to prey on his victims. In addition, Chief Judge Darrow noted that Hampton’s criminal record includes convictions for bank fraud, forgery, theft of mail, interstate transportation of stolen checks, check deception, deceptive practices, possession of fictitious driver’s licenses, identity theft, and aggravated identity theft.
The U.S. Secret Service and the Silvis Police Department conducted the criminal investigation. Assistant U.S. Attorney Alyssa Raya prosecuted the case on behalf of the government.
Friday 13 September 2019
Woodworth man pleads guilty to lying on federal firearms formRead the Press Release
ALEXANDRIA, La. – United States Attorney David C. Joseph announced that Jerry A. Morgan, 30, of Woodworth, Louisiana, pleaded guilty Tuesday before U.S. District Judge Dee D. Drell for making a false statement on a federal firearms transaction record, known as an ATF Form 4473.
According to the guilty plea, Morgan completed an ATF Form 4473 when he purchased 10 AR-15 style rifles from a licensed firearms seller in Lecompte, Louisiana, on November 29, 2017. On the form, Morgan said he was purchasing the firearms for himself, but in truth he was purchasing them for another individual, co-defendant Dagoberto Yanez, 26, of New Mexico. Yanez gave Morgan approximately $4,300 to cover the cost of the firearms purchase.
Yanez pleaded guilty on August 19, 2019, for conspiring to make false statements to a licensed firearm dealer. According to Yanez’s guilty plea, Yanez intended the guns to go to a drug-trafficking organization in Mexico.
Morgan faces five years in prison, three years of supervised release and a $250,000 fine. Judge Drell set Morgan’s sentencing for December 17, 2019. Yanez is scheduled to be sentenced on November 22, 2019.
The ATF investigated the case. Assistant U.S. Attorney Brian C. Flanagan is prosecuting the case.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. Project Safe Neighborhoods is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Washington Sex Offender Indicted for Child PornographyRead the Press Release
KANSAS CITY, Mo. – A Washington sex offender was indicted by a federal grand jury today for receiving and distributing child pornography.
David Lee Wilson, 37, was charged in an indictment returned by a federal grand jury in Kansas City, Mo. Wilson has a prior conviction for child molestation in Grays Harbor County, Washington, and is a registered sex offender.
Today’s indictment alleges that Wilson received and distributed child pornography beginning on Aug. 22, 2019, in Howell County, Missouri.
The charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Southwest Missouri Cyber Crimes Task Force, and the West Plains, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."United States Settles with United Parcel Service for Overcharging Federal Agencies under General Services Administration ContractRead the Press Release
The Department of Justice announced today that United Parcel Service Inc. (UPS) has agreed to pay the United States $8.4 million to resolve allegations that it overcharged federal agencies for package delivery services under a General Services Administration (GSA) contract.
“Contractors are expected to carefully comply with the pricing requirements of GSA contracts and other federal contracts,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “This settlement demonstrates that the government will hold accountable contractors that overcharge federal agencies by failing to follow the pricing terms of federal contracts.”
The settlement announced today resolves allegations that from 2007 to 2014, UPS failed to follow the Price Reductions Clause of the GSA contract, which required UPS to provide GSA with certain lower prices offered to another customer, resulting in the government paying more than it should have for package deliveries. Under the GSA contract, which is known as a Multiple Award Schedule Contract, UPS provided ground delivery service and air delivery service. The settlement covers ground delivery service.
"GSA's Office of Inspector General will continue to work with the Department of Justice to put the taxpayer first," said GSA Inspector General Carol Fortine.
This matter was jointly investigated by the GSA, Office of the Inspector General, and the Department of Justice’s Civil Division. The claims settled in this case are allegations only, and there has been no determination of liability.
UAW International Board Member Arrested and Charged with Embezzling UAW FundsRead the Press Release
A member of the United Auto Workers union’s International Executive Board was arrested today on a federal criminal complaint charging him with conspiring with other UAW officials to embezzle hundreds of thousands of dollars in union money for their own personal benefit along with other crimes, announced U.S. Attorney Matthew Schneider.
Joining in the announcement was Irene Lindow, Special Agent in Charge of the U.S. Department of Labor – Office of Inspector General, Rainer S. Drolshagen, Acting Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation, Manny Muriel, Special Agent in Charge of the Detroit, Michigan office of the Internal Revenue Service – Criminal Investigations, and Thomas Murray, District Director, U.S. Department of Labor – Office of Labor-Management Standards.
Vance Pearson, 58, of St. Charles, Missouri, was arrested today by federal agents in Missouri after being charged in a federal criminal complaint with taking part in a multiyear conspiracy to embezzle money from the International Union, United Automobile, Aerospace, and Agricultural Workers of America (UAW), to engage in mail and wire fraud, to file false reports with the Department of Labor, and to launder money. Pearson is the UAW’s Director of Region 5, which is headquartered in Hazelwood, Missouri. The UAW’s Region 5 covers the tens of thousands of UAW members from Missouri and the sixteen states to the southwest, including California. As Region 5 Director, Pearson is a member of the UAW’s International Executive Board, which governs the affairs of the union.
Pearson was arrested by federal agents in Missouri on the Detroit criminal complaint, and he is expected to make his initial appearance in federal court in St. Louis before being arraigned in Detroit. The complaint was unsealed after Pearson was arrested.
The Detroit criminal complaint charges Pearson with conspiring with other UAW officials to embezzle UAW money for the personal benefit of Pearson and other senior UAW officials by concealing personal expenditures in the cost of UAW Region 5 conferences held in Palm Springs, California, Coronado, California, and Missouri. Between 2014 and 2018, Pearson and other UAW officials submitted fraudulent expense forms seeking reimbursement from the UAW’s Detroit headquarters for expenditures supposedly incurred in connection with Region 5 leadership and training conferences. In truth, however, Pearson and his co-conspirators used the conferences to conceal the use of hundreds of thousands of dollars in UAW funds to pay for lavish entertainment and personal spending for the conspirators.
For example, Pearson and other senior UAW officials used UAW money to buy sets of golf clubs, individual clubs, and other golf equipment that cost thousands of dollars. In addition, Pearson and other UAW officials spent over $100,000 to purchase golf clothing, shirts, hats, sunglasses, golf balls, jackets, and fashion shorts from various pro shops at golf courses in California and Missouri. Pearson and the conspirators spent tens of thousands of dollars in UAW funds at the Indian Canyons golf course in Palm Springs on green fees for golfing outside of the time periods covered by the UAW Region 5 conferences that were used to conceal the extravagant personal spending of UAW funds.
Pearson and other UAW officials also spent hundreds of thousands of dollars in UAW funds to rent villas with individual pools in gated communities in Palm Springs for senior UAW officials for long periods of time outside of the dates set for the UAW conferences to which they were charged. UAW funds were also used to pay for meals for senior UAW officials at high-end restaurants outside the time periods of the UAW conferences to which they were charged.
The complaint also charges Pearson and his co-conspirators with embezzling over $60,000 for the purchase of boxes of cigars, humidors, cigar cutting equipment, and lighters from 2014 to 2018. The costs of the cigars were hidden within the expenses for the Region 5 conferences. Pearson caused the UAW to file false reports with the Department of Labor wherein the various embezzlement activity was concealed.
During search warrants executed last week in connection with the investigation, agents recovered dozens of cigars, humidors, and other tobacco-related items in the personal residences. In addition, agents seized hundreds of high-end bottles of liquor, hundreds of golf shirts, multiple sets of golf clubs, and tens of thousands of dollars in cash. Agents seized sets of golf clubs from Pearson’s UAW office and from the home of another UAW official that are consistent with the clubs purchased as part of the embezzlement scheme.
Each instance of embezzlement of union funds is punishable by five years in prison and a $10,000 fine. Mail and wire fraud carry a maximum sentence of 20 years imprisonment and a fine of $250,000. Money laundering carries a maximum sentence of 20 years in prison and a fine of up to $250,000.
U.S. Attorney Schneider commended the outstanding work of the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigations, the US Department of Labor – Office of Inspector General and the U.S. Department of Labor – Office of Labor-Management Standards in conducting a comprehensive criminal investigation into labor corruption activities involving a vital sector of the local and national economy.
A criminal complaint is only a charge and is not evidence of guilt. Every defendant is entitled to a fair trial in which it will be the government's burden to prove guilty beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorneys David A. Gardey and Steven Cares.
U.S. Attorney’s Office for the Eastern District of Washington and U.S. Department of Justice Civil Rights Division Host Community Roundtable to Increase Awareness of Sexual Harassment in HousingRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that the United States Attorney’s Office for the Eastern District of Washington and the United States Department of Justice (DOJ), Civil Rights Division, recently hosted roundtables in Yakima and Spokane, Washington, for community organizations to discuss the problem of sexual harassment in housing. The event included local law enforcement agencies, legal aid offices, fair housing organizations, shelters and transitional housing providers. Those organizations were invited because they often work with vulnerable populations who are most likely to become victims of sexual harassment in housing.
United States Attorney Hyslop said, “Sexual harassment in housing is often underreported. I encourage anyone who has been subjected to sexual harassment by his or her landlord or employer of a landlord to report it to the United States Attorney’s Office for the Eastern District of Washington. Sexual harassment is illegal under the Fair Housing Act, and my office is committed to enforcing the law and working to secure justice for victims of these offenses. We are extremely proud of our community partners joining us in a meaningful discussion on how to increase community awareness of, and identify barriers to reporting, sexual harassment in housing in the Eastern District of Washington.”
While most people are familiar with the problem of sexual harassment in the workplace, harassment also occurs in housing, and the Fair Housing Act prohibits it. Sexual harassment by landlords, property managers, maintenance workers, and others with power over housing often affects the most vulnerable populations - single mothers, women who are financially unstable, and women who have suffered sexual violence in their past. These women often do not know where to turn for help.
The United States Attorney’s Office for the Eastern District of Washington is working closely with the Civil Rights Division to spread the word here in the Eastern District of Washington about options to help victims experiencing sexual harassment or who experienced sexual harassment in housing in the past. Often it is community organizations, such as local law enforcement, legal aid offices, fair housing organizations, shelters and transitional housing providers, that are in the best position to identify housing abuses and recommend that victims report sexual harassment to DOJ’s Civil Rights Division. By increasing awareness and building strong partnerships, we can better combat this problem in our community.
Since launching the Sexual Harassment in Housing Initiative in 2017, the Department of Justice has filed 11 lawsuits alleging a pattern or practice of sexual harassment in housing. The Justice Department has filed or settled 15 sexual harassment cases since January 2017, and has recovered over $2.6 million for victims of sexual harassment in housing. These cases often involve egregious conduct, including allegations that defendants have exposed themselves sexually to current or prospective tenants, requested sexual favors in exchange for reduced rents or making necessary repairs, made unrelenting and unwanted sexual advances to tenants, and evicted tenants who resisted their sexual overtures. The DOJ’s investigations frequently uncover sexual harassment that has been ongoing for years or decades and identify numerous victims who never reported the conduct to federal authorities.
Roundtable discussions like the one that United States Attorney Hyslop hosted recently are an integral part of a DOJ initiative that seeks to identify barriers to reporting sexual harassment in housing, increase awareness of its enforcement efforts - both among victims and those they may report to - and collaborate with federal, state, and local partners to increase reporting and help women quickly and easily connect with federal resources.
DOJ encourages anyone who has experienced sexual harassment in housing, or knows someone who has, to contact the Civil Rights Division by calling (844) 380-6178 or emailing: [email protected].
Individuals who believe they may have been victims of discrimination may also contact the Civil Rights Coordinator for the United States Attorney’s Office for the Eastern District of Washington, Joseph P. Derrig, by calling 509-353-2767.
Two Washington residents sentenced to prison for trafficking meth, possessing firearmsRead the Press Release
HELENA—A man and woman who admitted to meth trafficking and firearms crimes were sentenced today to prison after their vehicle was stopped near Missoula and law enforcement found more than a pound of meth inside, U.S. Attorney Kurt Alme said.
Tavia Dion Blume, 40, of Monroe, WA, was sentenced to 14 years in prison and five years of supervised release.
Co-defendant Kyle Douglas Alverson, 25, of Lake Stevens, WA, was sentenced to 14 years and 11 months in prison and five years of supervised release.
Both Blume and Alverson pleaded guilty in April to conspiracy to distribute meth and to possess with intent to distribute meth and possession of a firearm in furtherance of a drug trafficking crime.
Senior U.S. District Judge Charles C. Lovell presided.
In court documents filed in the case, the prosecution said Blume and Alverson conspired with others to distribute meth and also possessed firearms for protection. The Montana Highway Patrol stopped a vehicle Blume was driving on Dec. 16. 2018 on Interstate 90 east of Missoula. Alverson was a passenger. Law enforcement seized the vehicle and served a search warrant on the vehicle. During the search, officers found three firearms and ammunition, seized about 692 grams, or about 1.5 pounds, of meth, $1,280 in U.S. currency and other items. One and a half pounds of meth is the equivalent of 5,436 doses.
When interviewed by law enforcement, Blume said she had started selling narcotics to pay off debts and admitted to having a gambling problem. Blume would buy meth and heroin from her source in Washington for resale in Montana. When arrested, Blume was on her fourth trip.
Alverson bought meth to resell from Blume and her source of supply. Together, Blume and Alverson decided he would get a Glock .380 caliber pistol, which was found in the vehicle. Blume admitted that she owned a Phoenix Arms .22LR caliber pistol and a Taurus 9mm pistol and had the firearms for protection from being robbed while dealing drugs. The two firearms also were found in the vehicle.
Assistant U.S. Attorney Tom Bartleson prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Montana Highway Patrol and the Missouri River Drug Task Force.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Two Mexican Drug Traffickers Arrested after Two-Kilogram Cocaine SeizureRead the Press Release
BOSTON – Two Mexican nationals were arrested and charged yesterday in federal court in Boston in connection with selling two kilograms of cocaine.
Carlos Acosta Estrella, 31, and his mother, Ana Guadalupe Acosta Grajeda, 56, were arrested on Thursday, Sept. 12, 2019 and charged in a criminal complaint with one count of possession with intent to distribute 500 grams or more of cocaine.
According to a criminal complaint, Estrella and Grajeda were arrested by law enforcement agents in East Boston after they were videotaped selling two kilograms of cocaine to a cooperating witness. Federal agents executed a search warrant of the East Boston apartment were the defendants were located and seized one kilogram of suspected fentanyl, one kilogram of suspected heroin, numerous cellphones, a high-powered tactical shotgun with a laser sight, and a box of ammunition for the shotgun.
The charging statute provides for a mandatory minimum sentence of five years and up to 40 years in prison, at least four years of supervised release, and a fine of $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Boston Police Commissioner William Gross made the announcement today. Assistant U.S. Attorney Christopher Pohl of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the criminal complaint are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Lebanon Men Indicted on Drug Conspiracy ChargesRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on September 11, 2019 that Juan Delvalle-Andino, 31, and Pablo Ortiz-Calzada, 33, both of Lebanon, were indicted by a federal grand on drug trafficking charges.
According to United States Attorney David J. Freed, the indictment alleges that Delvalle-Andino and Ortiz-Calzada conspired with one another to possess over 500 grams of cocaine, attempted to possess over 500 grams of cocaine, and in fact did possess some quantity of cocaine. The indictment further alleges that both individuals had previously been convicted in the Judicial District of Puerto Rico of serious drug felonies.
The case was investigated by the U.S. Postal Inspectors and the Pennsylvania State Police. The case is being prosecuted by Assistant U.S. Attorney Scott R. Ford.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 80 years in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Tupelo Loan Officer Sentenced for Bank FraudRead the Press Release
OXFORD, Miss. – A Tupelo bank officer and his co-defendant were sentenced today by U.S. District Judge Debra M. Brown in federal court in Greenville, Mississippi for bank fraud. Both had previously pled guilty before Judge Brown to one count of Bank Fraud, in violation of Title 18, United States Code, Section 1344. Judge Brown sentenced Max Miller, age 53, to serve 18 months imprisonment followed by two years of supervised release. James Nichols, age, 52, was sentenced to time served followed by 5 years of supervised release. Judge Brown ordered both Miller and Nichols to pay $374,261 in restitution to Renasant Bank.
Max Miller, without the knowledge of Renasant Bank, used his position as a loan officer at Renasant Bank to create loans in the name of specified borrowers when the loans were not actually intended for the named borrowers but were actually intended to benefit his co-defendant, James Nichols, who was not listed as the borrower on the loans. In addition to the scheme with Nichols, Miller also generated loans for his own benefit. As a result of this scheme, Renasant Bank suffered a financial loss of $374,261.
US Attorney Chad Lamar announced the sentences following Friday’s hearing and emphasized the importance of the case. “The United States Attorney’s Office is committed to holding accountable any individuals who violate federal law by defrauding the very financial institutions that employ them.” Lamar stated. “The actions of these individuals represent a betrayal not only of the bank they defrauded, but the public trust, and we appreciate the diligent investigation by our partners that helped bring these individuals to justice.”
"The FDIC OIG remains focused in our efforts to investigate financial fraud schemes impacting FDIC-insured financial institutions throughout the country." remarked Laurie Younger, Special Agent in Charge, FDIC-OIG, Dallas Field Office
“The Federal Housing Finance Agency Office of Inspector General (FHFA-OIG) is committed to investigating allegations of fraud committed by officers of financial institutions which are members of the 11 Federal Home Loan Banks (FHLBanks) because their crimes strike at the heart of the FHLBank System,” said Edwin Bonano, Special Agent in Charge of the FHFA-OIG’s Southeast Region Office. “We are proud to have partnered with the U.S. Attorney’s Office for the Northern District of Mississippi in this case.”
This case was investigated by the FDIC Office of Inspector General and the Federal Housing Finance Agency Office of Inspector General and prosecuted by AUSA Clay Dabbs.
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Tiger Enters Guilty Plea to Federal Bribery ChargeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Bristow, Oklahoma, resident GEORGE PHILLIP TIGER, age 69, entered a guilty plea today to Bribery Concerning Programs Receiving Federal Funds, in violation of Title 18, United States Code, Section 666(a)(1)(B), punishable by not more than 10 years imprisonment, up to a $250,000.00 fine, or both.
Tiger, the former Principal Chief of the Muscogee (Creek) Nation, was an agent of the Alabama-Quassarte Tribal Town (AQTT) from September 26, 2017 through December 4, 2018. His duties included serving as the Chairman of the Economic Development Authority (EDA) Board. The AQTT formed the EDA to identify, plan, initiate and develop tribal economic and industrial activities on behalf of the AQTT. The AQTT is an Indian tribal government and organization that received federal assistance in excess of $10,000.00 during any one-year period from January 1, 2012 through the date of the indictment. The AQTT is headquartered in Wetumka, Oklahoma.
The Indictment to which Tiger entered his guilty plea alleged that from on or about September 26, 2017 through on or about February 15, 2019, in the Eastern District of Oklahoma and elsewhere, Defendant George Phillip Tiger did corruptly solicit, demand, accept and agree to accept a thing of value from persons known to the Grand Jury, intending to be influenced and rewarded in connection with a transaction or series of transactions of the Alabama-Quassarte Tribal Town (AQTT) involving $5,000.00 or more.
“Mr. Tiger took advantage of the position of trust he had been given by the people of the Alabama-Quassarte Tribal Town. Instead of acting in the best interests of those he was appointed to serve, Tiger sought out and received unlawful profit for himself,” said United States Attorney Brian J. Kuester. “This office and the agencies who have been involved in this investigation are committed to identifying, investigating, and prosecuting those who corrupt the positions of trust and authority they hold.”
"While serving as an appointed official for the Alabama-Quassarte Tribal Town, Tiger repeatedly exploited his position by soliciting and accepting bribes related to Tribal business. This plea reinforces the message that law enforcement will not tolerate tribal officials who engage in corrupt activity for personal financial gain at the expense of the people they serve,” said Melissa Godbold, Special Agent in Charge of the FBI’s Oklahoma City Division.
"This case demonstrates the commitment of the Defense Criminal Investigative Service (DCIS), along with our law enforcement partners, to aggressively pursue those who damage the economic health of Tribal organizations and their business entities that support critical national security programs funded by the Department of Defense (DoD)," said Michael Mentavlos, Special Agent-in-Charge of the DCIS Southwest Field Office. "DCIS will continue to investigate corruption and fraud that affects the DoD through the exploitation of Small Business Programs designed to help disadvantaged groups.”
“The IRS is committed to devoting all resources necessary to assist our local, state, and federal law enforcement partners in evaluating financial aspects of criminal investigations,” said Tamera Cantu, IRS Special Agent in Charge of the Dallas Field Office. “Today’s guilty plea underscores that commitment, not only to our law enforcement partners, but to the taxpayers and citizens who rely on us to uphold and enforce the law.”
The Defense Criminal Investigative Service (DCIS), Office of Inspector General, the Federal Bureau of Investigation (FBI), Internal Revenue Service, Small Business Administration – Office of Inspector General, General Services Administration – Office of Inspector General, Army Criminal Investigations Division, and Naval Criminal Investigative Service participated in the investigation that lead to the Indictment.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report. The defendant was allowed to remain free on a personal recognizance bond pending a sentencing hearing.
Assistant United States Attorney Douglas Horn, Assistant United States Attorney Ryan Heatherman, and Special Assistant United States Attorney Courtney Jordan represented the United States at the plea hearing.
Texas Man Sentenced to 10 Years for Traveling to Wisconsin for Illegal Sexual Activity with MinorRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that today Robert Hosler, 27, Austin, Texas, was sentenced by Chief U.S. District Judge James D. Peterson to 10 years in federal prison for interstate communications and travel to engage in illegal sexual activity and for possessing child pornography.
Hosler was convicted in May following a one-day court trial of two counts involving interstate communications and travel to engage in illegal sexual activity. He also pleaded guilty to possessing child pornography. In August 2018, Hosler responded to an advertisement posted on the Internet, which offered a 12-year-old child for sexual purposes. In response to the ad, he flew from Texas to Minnesota, rented a car and travelled to a prearranged meeting location in Eau Claire, Wisconsin, where he was arrested by law enforcement officers on September 6, 2018. The advertisement was posted by an undercover law enforcement officer.
At the time of his arrest, Hosler possessed a cell phone containing visual depictions of minors engaging in sexually explicit conduct; at least one of the depictions was of a minor who had not attained 12 years of age. In his response to the ad, Hosler expressed an interest in the possibility of videotaping his sexual contact with the minor. At the time of his arrest, recording equipment was found in his car.
Judge Peterson called the defendant selfish and self-deluded, whose primary concern was his own sexual interest. Peterson was concerned that Hosler was able to persuade himself that having sex with a 12-year-old was an OK thing to do.
The charges against Hosler are the result of an investigation by the Eau Claire Police Department, Wisconsin Department of Justice Division of Criminal Investigation, Federal Bureau of Investigation, Department of Homeland Security, Central Texas Violent Crimes Task Force, Wisconsin State Patrol, and West Central Drug Task Force. Assistant U.S. Attorneys Elizabeth Altman and Diane Schlipper handled the prosecution.
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. Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Teacher Gets 35 Years for Child ExploitationRead the Press Release
GRAND RAPIDS, MICHIGAN - Philip Gordon Paauwe, 33, of Grandville, Michigan, was sentenced to serve 420 months in the Federal Bureau of Prisons for coercing and enticing a minor to produce child pornography. U.S. District Judge Paul L. Maloney also imposed a period of supervised release of 10 years and ordered Paauwe to pay $34,000 in restitution to the victim.
In sentencing Paauwe, Judge Maloney stated that in his 25 years as a judge, he has not often, or perhaps ever, seen this degree of depravity. Judge Maloney said that Paauwe’s "grotesque behavior" and the "degree of manipulation is just unbelievable" and found that Paauwe was a very dangerous individual who used his "teaching position to perpetrate this monstrosity." Judge Maloney denied the defense request for leniency and expressed his goal to protect children from the risk posed by Paauwe.
Paauwe came to the attention of law enforcement during an undercover operation where he initiated plans to have sex with a 13-year-old girl. Paauwe was originally charged in state court for child pornography found on his phone. Further investigation into those images disclosed that he had been exploiting an out-of-state 15-year-old girl to make child pornography. Local authorities then referred the matter for federal prosecution. In its sentencing memorandum, the U.S. Attorney’s Office opposed the defense request for leniency and noted Paauwe’s extreme sexual manipulation of the victim, his fantasies of raping and killing children, and his sexual misconduct related to his teaching position.
In announcing the sentence, U.S. Attorney Birge stated, "As a teacher of special needs and emotionally impaired students, Paauwe knew how to relate to and ultimately exploit the minors he targeted. The school environment itself was fodder for his perverted fantasies. He is every parent’s nightmare. And that is why it is so important for my office to hold him and criminals like him accountable."
"The defendant exploited children for his own personal gratification. The identification, investigation and prosecution of those who victimize and exploit the most vulnerable members of our society remains a top priority for the FBI and its law enforcement partners," said FBI Acting Special Agent in Charge Rainer Drolshagen.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney’s Office, county prosecutor's offices, the Internet Crimes Against Children task force (ICAC), federal, state, tribal, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following web site: https:www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.
This case was prosecuted by Assistant U.S. Attorneys Davin Reust and Daniel Mekaru, in cooperation with the Kent County Prosecutor’s Office, and investigated by WEBCHEX – a partnership of FBI, Michigan State Police, and other local agencies, including the Kent County Sheriff’s Department.
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Surge of Law Enforcement, Prosecution Resources Making Ogden PSN Target Area Safer for ResidentsRead the Press Release
PSN Target Enforcement Area Summary
- 963 months of prison imposed (80.25 years)
- 21 defendants sentenced (20 to prison, 1 on probation)
- Average prison is 48.15 months
- Screened cases involving 164 individuals
- 74 individuals have been charged
- Another 90 are under review or have been declined
- 115 weapons recovered as a part of cases filed – including a grenade launcher, 78 pistols
- 34,656.42 grams of drugs, including 29,766.63 grams of meth
- In 2018, Weber County CSI responded to 93 shooting incidents where casings or bullets were recovered. By Sept. 1, 2018, there had been 69 shootings. As of Sept. 1, 2019, they have responded to 32 shootings.
What is the PSN Target Enforcement Area: While the Utah PSN Task Force, along with other local and federal law enforcement agencies fulfill their duties and mission in every area of the state, the PSN Task Force has selected a 4.86 square mile area located primarily within Ogden City and Weber County for enhanced targeted enforcement. This area, selected for its history of firearm and drug related crimes, includes 8,047 households and more than 22,000 residents of Ogden City and Weber County. Through collaborative efforts and combined resources, the PSN Task Force is strategically targeting this area to detect, investigate, and disrupt those who violate state and federal laws, particularly firearm and drug related crimes. Offenders arrested as a part of the targeted enforcement action are being prosecuted in state or federal court based upon which jurisdiction that can provide the most appropriate sanction. In 2018, Ogden City experienced a historic 19.7% reduction in its Part 1 crimes. Ogden City leaders attribute much of the success of this reduction in crime to the coordinated work occurring within the PSN Target Enforcement Area.
Significant cases prosecuted as a part of the TEA:
U.S. v. Christopher J. Spraw, et al: Six individuals are charged in a six-count indictment with conspiracy to distribute methamphetamine, conspiracy to distribute heroin, possession of meth with intent to distribute (Buenrostro), and two counts of possession of heroin with intent to distribute (Buenrostro and Deroboam). Spraw is charged in the last count with possession of a firearm. According to a complaint filed in the case, the FBI, the Davis Metro Narcotics Strike Force and the Weber Morgan Strike Force initiated separate investigations based on information indicating Spraw, a member of the Silent Aryan Warriors (SAW), was working with others to sell large amounts of methamphetamine and heroin in Weber and Davis counties. The agencies joined forces to continue the investigation. Counts 3 and 4 of the indictment relate to approximately 195 pounds of meth and 1 pound of heroin found during the execution of a search warrant in Kearns. Spraw, age 49, is from Ogden. Other defendants include Manuel Ramblano Sanchez Jr., age 24, address unknown, Damian Buenrostro, age 22, of Kearns, Sheila Mary Deroboam, age 52, Heidi Lynn Openshaw, age 40, and Vanessa Dominguez, age 33, all of Ogden. Arrest warrants are pending for Sanchez and Buenrostro. The defendants face up to life in prison with a mandatory minimum 10 years if convicted of the conspiracy to distribute meth count.
U.S. v Lawley: Dijuan Michele Lawley, age 45, of Ogden, pleaded guilty to distribution of cocaine and possession of a firearm in furtherance of a drug trafficking crime in late May and was sentenced to 78 months in federal prison and five years of supervised release when he finishes his sentence. Lawley admitted he distributed approximately 2 grams of cocaine to another person, who was an ATF agent acting in an undercover capacity. He also admitted he possessed three firearms in furtherance of his drug trafficking crime. Lawley was initially in custody on another federal case that was dismissed Aug. 31, 2018. Five days after being released from custody, he made arrangements to sell cocaine. He was arrested by the ATF SWAT team with helicopter surveillance assistance from the Utah Department of Public Safety.
U.S. v Cordova: A two-day trial will start Oct. 22, 2019, before U.S. District Judge Robert J. Shelby for Rory Curtis Cordova, aka “Joker,” age 51, of Ogden, who faces two counts of possessing a firearm following a felony conviction. A criminal complaint filed Aug.15, 2018, alleges that around midnight on June 30, 2018, South Salt Lake City police officers responded to reports of gunfire at a residence. Officers learned that an unidentified individual had fired multiple shots at the residence from a vehicle. Eight bullets struck the residence. Two individuals were inside the home at the time. Based on the video information and additional information provided by a resident of the home, law enforcement officers were able to identify Rory Cordova as a suspect in the case. At approximately, 3:15 a.m., the complaint says, law enforcement officers from multiple agencies located Cordova’s vehicle in Ogden and took him into custody. During the course of the investigation, officers recovered several shell casings from inside Cordova’s vehicle where they also located a stolen Glock 26 9mm handgun. Firearms leave unique markings on ammunition and casings as it is discharged from the firearm. NIBIN stores images of those markings, which identify the signature of the firearm. These images are compared against other NIBIN entries for matches or “hits.” A “hit” indicates that the markings are the same on the ammunition or casings and would have been fired from the same firearm. NIBIN analysis revealed that the markings on the spent shell casings recovered from the scene of the South Salt Lake shooting matched the spent shell casings recovered from Cordova’s car. The NIBIN analysis also linked the Glock handgun recovered from Cordova’s vehicle to spent shell casings recovered from the scene of a shots fired call in Ogden on June 8, 2018. According to the complaint, the Ogden incident involved a man pulling up in front of a residence where a child’s birthday party was taking place. Shots were fired at the residence from the vehicle. Officers located several bullet holes and marks on the exterior of the residence, the front window of the residence, and the windshield of a vehicle parked in the driveway at the residence. Witness statements describing the shooter and the vehicle he was driving were consistent with Cordova and matched a vehicle registered to Cordova. Cordova is a documented Ogden Trece gang member and has felony convictions, leading to his restricted status under federal law firearms laws, according to charging documents. The potential maximum penalty for each of the counts in the complaint is 10 years in federal prison.
US v Armstrong: Charles Ray Armstrong, age 55, of West Valley City, who pleaded guilty to conspiracy to distribute more than 50 grams of methamphetamine, was sentenced to 117 months in federal prison Aug. 12, 2019. Armstrong admitted that he agreed to deliver meth to a location in Ogden. According to the court document, when he arrived to deliver the meth, he recognized the person purchasing the meth was an informant who worked with law enforcement. He immediately left the area and drove his vehicle to the freeway with law enforcement in pursuit. He admitted throwing the meth out the window of his vehicle. Police recovered a portion of the drugs. Testing done at the Utah Crime Lab found 94.83 grams of actual meth.
US v Sexton: Brandon Michael Sexton, age 44, of Ogden, is charged in a three-count indictment with possession of methamphetamine with intent to distribute, possession of heroin with intent to distribute, and possession of 19 firearms and associated ammunition following a felony conviction. An investigation conducted by the Weber Morgan Narcotics Strike Force resulted in Sexton’s arrest. A three-day jury trial is set for Oct. 15, 2019, before U.S. District Judge Jill N. Parrish. The maximum potential penalty for the charges in the indictment is life in prison with a 10-year mandatory minimum.
Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
Supai Man Sentenced to Prison for Domestic AssaultRead the Press Release
PHOENIX, Ariz. – This week, Anthony Paya, of Supai, Ariz., was sentenced by U.S. District Judge Diane J. Humetewa to 24 months of imprisonment to be followed by three years of supervised release. Paya had previously pleaded guilty to assault of an intimate partner or dating partner resulting in substantial bodily injury.
On May 10, 2018, Paya assaulted his partner, including by striking her multiple times with an extension cord. The assault occurred at a home in Supai, on the Havasupai Indian Reservation. Both Paya and the victim are enrolled members of the Havasupai Tribe.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Bureau of Indian Affairs – Office of Justice Services. The prosecution was handled by Assistant U.S. Attorney Alexander Samuels, District of Arizona, Phoenix.
St. Joseph Man Charged with Illegally Possessing 15 FirearmsRead the Press Release
KANSAS CITY, Mo. – A St. Joseph, Missouri, man has been charged in federal court with illegally possessing 15 firearms.
Bryan R. Harshman, 39, was charged in a criminal complaint filed in the U.S. District Court in Kansas City, Missouri, on Thursday, Sept. 12, with being a felon in possession of firearms. Harshman remains in federal custody pending a detention hearing.
According to an affidavit filed in support of the federal criminal complaint, law enforcement officers with the Drug Enforcement Administration, the Buchanan County, Mo., Sheriff’s Department, and the St. Joseph, Mo., Police Department, executed a search warrant at Harshman’s residence on Wednesday, Sept. 11. They seized a Mitchell 12-gauge shotgun, a Mossberg .22-caliber semi-automatic pistol, a Mossberg 12-gauge shotgun, a Noble Manufacturing 410-gauge shotgun, a New England Firearms 20-gauge sawed-off shotgun (all concealed in the wall of the second-floor porch), a loaded Mitchell 12-gauge shotgun, a Ruger .22-caliber rifle, a Marlin 12-gauge shotgun, a Jimenez Arms .22-caliber semi-automatic pistol, a Springfield 40 S&W caliber semi-automatic pistol, a Sears & Roebuck 12-gauge shotgun with an extra barrel, a Remington 12-gauge shotgun, and a sawed-off Mossberg 12-gauge shotgun with a defaced serial number.
In a second-floor office located near the firearms, the affidavit says, officers observed items used in the packaging and distribution of methamphetamine, including digital scales and baggies. Two of the bowls used to weigh substances on the digital scale field-tested positive for methamphetamine.
While officers searched Harshman’s residence, additional officers located Harshman at a local Waffle House and he was taken into custody. Officers also searched the Chevrolet SUV being rented by Harshman, which was in the parking lot. Officers found a loaded Glock .40-caliber semi-automatic pistol, a loaded Smith and Wesson .38 Special revolver, and a solvent trap that had been drilled and was open at both ends, apparently modified to be used as a suppressor, inside the vehicle.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Harshman has a prior felony conviction for distributing a controlled substance.
The charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Special Assistant U.S. Attorney Robert Smith. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Buchanan County, Mo., Sheriff’s Department, and the St. Joseph, Mo., Police Department.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.Springfield Man Sentenced to 16 Years for Illegal FirearmRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Missouri, man was sentenced in federal court today for illegally possessing a firearm.
Alexander Monday Coleman, 48, was sentenced by U.S. District Judge Roseann Ketchmark to 16 years in federal prison without parole. Coleman was sentenced as an armed career offender due to his prior felony convictions.
On Nov. 13, 2018, Coleman pleaded guilty to being a felon in possession of a firearm. Springfield police officers found a loaded KAHR Arms 9mm pistol in Coleman’s coat pocket when they searched him during a traffic stop on Jan. 26, 2017. Coleman was a passenger in the vehicle in which other individuals were in possession of illegal drugs, a scale, and drug paraphernalia.
According to court documents, Coleman was a former known member of the Grape Street Crips gang with a lengthy criminal history.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Coleman has prior felony convictions for assault (as well as multiple misdemeanor convictions for assault), possession of a controlled substance, possession of cocaine for resale, theft of property, unlawful possession of a firearm, grand theft of a motor vehicle, possession with intent to distribute a controlled substance, and delivery or manufacture of an imitation controlled substance. Coleman was on parole at the time of this federal offense.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Springfield, Mo., Police Department.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.Springdale Man Sentenced to More Than 27 Years in Federal Prison for Weapons and Drug PossessionRead the Press Release
Fayetteville, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Adrian Chavez Oviedo, age 28, was sentenced today to 330 months in federal prison, followed by five years of supervised release and ordered to pay a $9,700.00 fine for Aiding and Abetting in the Possession with Intent to Distribute Methamphetamine, Conspiracy to Distribute Methamphetamine and Felon in Possession of a firearm. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.According to court records, In May of 2018, agents with the DEA and detectives with the 4th Judicial Drug Task Force received information that Oviedo, was involved in drug trafficking in and around Springdale, Arkansas. On June 2, 2018, Oviedo was arrested by the Springdale Police Department for drug trafficking related crimes and incarcerated at the Washington County Jail. While incarcerated, detectives learned that Oviedo began distributing methamphetamine inside the facility and was directing individuals outside the facility to move drugs from a storage unit and collect drug debts owed to him. Detectives were able to locate a storage facility in Springdale, Arkansas, that had separate units rented to Oviedo. On June 7, 2018, detectives executed a search warrant on a storage unit registered to Oviedo and located two pistols, an assault rifle, approximately 573 grams of methamphetamine, 181 grams of heroin and digital scales inside. On June 12, 2018, Oviedo was interviewed and admitted to trafficking narcotics including methamphetamine. The DEA crime lab tested the seized methamphetamine and determined that it contained 515.9 grams of actual methamphetamine.
A federal grand jury indicted Oviedo in July 2018, and he entered a guilty plea in May 2019.
This case was investigated by the Drug Enforcement Administration, the 4th Judicial Drug Task Force and the Springdale Police Department. Assistant United States Attorney Denis Dean prosecuted the case for the United States.
South Florida Health Care Facility Owner Sentenced to 20 Years in Prison for Role in Largest Health Care Fraud Scheme Ever Charged by the Department of JusticeRead the Press Release
A federal district judge sentenced a south Florida health care facility owner to 20 years in prison today after being found guilty in the largest health care fraud scheme charged by the U.S. Justice Department. The case involves a decades-long scheme of kickbacks and money laundering in connection with fraudulent claims to Medicare and Medicaid for services deemed medically unnecessary.
Philip Esformes, 50, of Miami Beach, Florida, was sentenced by U.S. District Judge Robert N. Scola of the Southern District of Florida, who also sentenced Esformes to three years supervised release. A hearing to determine restitution and forfeiture has been scheduled for Nov. 21.
After an eight-week jury trial, Esformes was found guilty in April 2019 of one count of conspiracy to defraud the United States, two counts of receipt of kickbacks in connection with a federal health care program, four counts of payment of kickbacks in connection with a federal health care program, one count of conspiracy to commit money laundering, nine counts of money laundering, two counts of conspiracy to commit federal program bribery and one count of obstruction of justice
“For nearly two decades, Philip Esformes bankrolled his lavish lifestyle with taxpayer dollars, paying bribes with impunity and robbing Medicare and Medicaid by billing for services that people did not need or get,” said Assistant Attorney General Brian A. Benczkowski. “It is a credit to the tenacity of our prosecutors and law enforcement partners that the man behind one of the biggest health care frauds in history will be spending 20 years in prison.”
“Philip Esformes will now spend years in prison for orchestrating a kick-back and money laundering scheme that defrauded America’s health care system out of millions of dollars,” said U.S. Attorney Fajardo Orshan of the Southern District of Florida. “The U.S. Attorney’s Office for the Southern District of Florida remains committed to working with our partners at the Department’s Criminal Division, the FBI and HHS-OIG to root out health care fraud and protect taxpayer dollars for patient care.”
“Philip Esformes is a man driven by almost unbounded greed,” said Deputy Special Agent in Charge Denise M. Stemen of the FBI’s Miami Field Office. “The illicit road Esformes took to satisfy his greediness led to millions in fraudulent health care claims, the largest amount ever charged by the Department of Justice. Along that road, Esformes cycled patients through his facilities in poor condition where they received inadequate or unnecessary treatment, then improperly billed Medicare and Medicaid. Taking his despicable conduct further, he bribed doctors and regulators to advance his criminal conduct and even bribed a college official in exchange for gaining admission for his son to that university. The FBI and its partners are constantly investigating health care fraudsters, big and small, who steal money from taxpayers at the expense of patients in need of quality medical care.”
“Healthcare fraud is a hidden tax costing billions of dollars every year and, as in this case, too often threatens the very health of vulnerable patients,” said Special Agent in Charge Omar Pérez Aybar for the Office of Inspector General of the U.S. Department of Health and Human Services (HHS-OIG). “Esformes – who provided shoddy medical care – stands convicted of fraud and is now paying the price. We continue working tirelessly with our law enforcement partners to protect people in government health programs.”
According to the evidence presented at trial, between January 1998 and July 2016, Esformes led an extensive health care fraud conspiracy involving a network of assisted living facilities and skilled nursing facilities he owned. Esformes bribed physicians to admit patients into his facilities. Then, he cycled the patients through his facilities where they often failed to receive appropriate medical services or received medically unnecessary services billed to Medicare and Medicaid. Several witnesses testified to the poor conditions in the facilities and the inadequate care patients receive.
Esformes concealed the poor conditions and scheme from authorities by bribing an employee of a Florida state regulator for advance notice of surprise inspections scheduled to take place at his facilities. The evidence further showed Esformes used his criminal proceeds to make a series of extravagant purchases, including luxury automobiles and a $360,000 watch. Esformes also used criminal proceeds to bribe the basketball coach at the University of Pennsylvania in exchange for his assistance in gaining admission for his son into the university.
Altogether, the evidence established that Esformes personally benefited from the fraud and received in excess of $37 million.
Esformes’s coconspirator, physician’s assistant Arnaldo Carmouze, previously pleaded guilty to conspiracy to commit health care fraud and was sentenced on April 10, 2019, to 80 months in prison and was ordered to pay $12,590,761 in restitution. Co-conspirator Odette Barcha also pleaded guilty to one count of conspiracy to violate the anti-kickback statute. Barcha was sentenced on April 3 to 15 months in prison and three years of supervised release and was ordered to pay $704,516.00 in restitution.
This case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida, with assistance from Florida Attorney General’s Office Medicaid Fraud Control Unit. The case was prosecuted by Fraud Section Acting Health Care Fraud Chief Allan Medina and Assistant Chief Drew Bradylyons, and Trial Attorneys Elizabeth Young, James Hayes and Jeremy Sanders, as well as Assistant U.S. Attorneys John Shipley and Dan Bernstein of the Southern District of Florida. Assistant U.S. Attorneys Alison Lehr, Nalina Sombuntham and Daren Grove of the Southern District of Florida handled the forfeiture aspects of the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.