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24 October 2019
Former Jacksonville High School Teacher Sentenced to More Than 9 Years for Distributing Child Sexual Abuse Video over the InternetRead the Press Release
Jacksonville, Florida – United States District Judge Timothy J. Corrigan has sentenced Jordan Frederic Schemmel (38, Ormond Beach) to nine years and two months in federal prison for distributing depictions of child sexual abuse over the internet. Schemmel had pleaded guilty on May 22, 2019. Schemmel was also sentenced to a 10-year term of supervised release and ordered to register as a sex offender upon his release.
According to court documents, on September 5, 2018, Schemmel, using the username “Profsunrise15,” responded to a message on an internet bulletin board frequented by individuals with a sexual interest in children and incest. The message had been posted by an undercover FBI agent. Schemmel began an online conversation with the agent using a popular social messaging application. After some conversation about his sexual interest in children between the ages of 9 and 13, Schemmel sent a video to the agent that depicted a young child being sexually assaulted by an adult male, and later sent a photo depicting similar criminal conduct with a child. During this time, Schemmel was a teacher at Terry Parker High School in Jacksonville.
On October 19, 2018, FBI agents and other law enforcement officers executed a search warrant at Schemmel’s residence in Jacksonville. During an interview, Schemmel stated that he was interested in incest and bestiality, that he had sent the child-pornographic video using the app, and that he had tried unsuccessfully to stop viewing child pornography after receiving sexual gratification from it. Forensic examination of Schemmel’s smartphone and a USB thumb drive seized from his residence revealed that he had collected 102 images and 28 videos depicting child pornography, several of which depicted the sadistic sexual abuse of young children.
This case was investigated by the Federal Bureau of Investigation, U.S. Customs and Border Protection, and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It 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.
Former Hennepin County Employee and Husband Sentenced to Prison for Theft of Government FundsRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of ROBERT ANTHONY COLEMAN, 46, to one year and one day in prison and YOLANDA YVETTE COLEMAN a/k/a YOLANDA YVETTE PITTMAN, 51, to six months in prison for conspiring to defraud multiple government social services programs over the course of several years. The defendants, who pleaded guilty on May 8, 2019, were sentenced on October 23, 2019, before Senior Judge David S. Doty in U.S. District Court in Minneapolis, Minnesota.
According to the defendants’ guilty pleas and documents filed with the court, from 2002 through December 2016, PITTMAN was employed by the Hennepin County Human Services and Public Health Department (HSPHD). From at least October 2009, PITTMAN’s job duties gave her access to computer databases used in processing applications for government benefits intended to assist low-income persons with food, medical, and other living expenses, including Medical Assistance and SNAP food stamp benefits. During this time, PITTMAN became romantically involved with COLEMAN, who was a HSPHD client prior to and continuing into their relationship. PITTMAN and COLEMAN were married on August 17, 2014.
According to the defendants’ guilty pleas and documents filed with the court, from October 2010 through August 2018, PITTMAN and COLEMAN conspired to fraudulently obtain Section 8 rental housing assistance subsidies, SNAP benefits, Medical Assistance benefits, Supplemental Security Income (SSI) benefits from the Social Security Administration, and other public assistance, by concealing information and submitting false applications to the government entities responsible for implementing these programs. For example, PITTMAN and COLEMAN failed to disclose that they resided together while COLEMAN received Section 8, SNAP, Medical Assistance, and SSI public assistance benefits. PITTMAN also acted as COLEMAN’S Personal Care Attendant (PCA) for several years, with COLEMAN’S Medical Assistance benefits paying for these PCA services. The total loss amount was $248,838.
This case was the result of an investigation conducted by the Department of Housing and Urban Development – Office of the Inspector General, Hennepin County Fraud Investigations Unit, and the Social Security Administration – Office of the Inspector General.
Assistant U.S. Attorney Sarah Hudleston and Special Assistant U.S. Attorney Lindsey Middlecamp prosecuted the case.
Defendant Information:
ROBERT ANTHONY COLEMAN, 46
Minneapolis, Minn.
Convicted:
- Conspiracy to commit theft of government funds, 1 count
Sentenced:
- One year and one day in prison
- Three years of supervised release
YOLANDA YVETTE COLEMAN, a/k/a YOLANDA YVETTE PITTMAN, 51
Minneapolis, Minn.
Convicted:
- Conspiracy to commit theft of government funds, 1 count
Sentenced:
- Six months in prison
- Two years of supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Former Director of Corporate Law at Global Technology Company Indicted for Insider TradingRead the Press Release
NEWARK, N.J. – The former corporate secretary and director of corporate law at a global technology company headquartered in Cupertino, California, was indicted today for orchestrating a five-year insider trading scheme, U.S. Attorney Craig Carpenito announced.
Gene Levoff, 45, of San Carlos, California, was indicted on six counts of securities fraud and six counts of wire fraud. Levoff was initially charged by complaint in February 2019.
According to documents filed in this case and statements made in court:
Between February 2011 and April 2016, Levoff – the top corporate attorney at “Company-1,” who also served as the company’s assistant secretary and corporate secretary –allegedly misappropriated material, nonpublic information about Company-1’s financial results and then executed trades involving the company’s stock. This scheme to defraud Company-1 and its shareholders allowed Levoff to realize profits of approximately $227,000 on certain trades and to avoid losses of approximately $377,000 on others.
Levoff used his position as a member and co-chairman of Company-1’s Disclosure Committee – which reviewed and discussed the company’s draft quarterly and yearly earnings materials and periodic U.S. Securities and Exchange Commission (SEC) filings before they were disclosed to the public – to obtain material, nonpublic financial information about Company-1. Levoff used this confidential information to buy and sell stock in Company-1 ahead of its quarterly earnings announcements. When Levoff discovered that Company-1 had posted strong revenue and net profit for a given financial quarter, he purchased large quantities of stock, which he later sold for a profit once the market reacted to the news. When he learned that Company-1 had posted lower-than-anticipated revenue and net profit, he sold large quantities of Company-1 stock, avoiding significant losses.
Levoff was subject to Company-1’s regular quarterly “blackout periods,” which prohibited individuals who had access to material nonpublic information from engaging in trades until a certain period after the company disclosed its financial results to the public. Levoff ignored this restriction, as well as the company’s broader Insider Trading Policy – which he was responsible for enforcing – and instead repeatedly executed trades based on material, nonpublic information without Company-1’s knowledge or authorization. On several occasions, Levoff executed trades within a blackout period after notifying other individuals subject to the restriction that they were prohibited from buying or selling Company-1 stock until the blackout period terminated.
The securities fraud counts carry a maximum penalty of 20 years in prison and a $5 million fine. The wire fraud counts carry a maximum penalty of 20 years and a fine of the greater of $250,000 or twice the gain derived from or loss caused by the offense.
The U.S. Securities and Exchange Commission (SEC) previously filed a civil complaint against Levoff based on the same conduct.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation. He also thanked the SEC, for the assistance provided by its Enforcement Division, and Company-1, which cooperated with law enforcement over the course of the investigation.
The government is represented by Senior Trial Counsel Courtney A. Howard of the Economic Crimes Unit and Assistant U.S. Attorney Daniel V. Shapiro, Chief of the Economic Crimes Unit.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Former Director of Perry County Family Center Pleads Guilty to EmbezzlementRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that the former Executive Director of the Perry County Family Center, Shelly A. Dreyer-Aurila, age 53, of New Bloomfield, Pennsylvania, pleaded guilty on October 22, 2019, before Senior U.S. District Court Judge Sylvia H. Rambo, for embezzlement of funds involving federal programs.
According to United States Attorney David J. Freed, Dreyer-Aurila admitted that between 2010 and 2017, as Executive Director of the 501(c)(3) charitable organization in New Bloomfield, Pennsylvania, knowingly embezzled and converted to her own personal use more than $200,000 under the care and control of the Center. The Center annually receives more than $10,000 in federal grants from the U.S. Department of Health and Human Services through the Pennsylvania Department of Health and Human Services to fund programs such as its Maternal, Infant & Early Childhood Home Visiting program and its Child Abuse Prevention program.
The case was investigated by the Pennsylvania Department of State, Bureau of Enforcement and Investigation, Charitable Investigation Unit. Assistant U.S. Attorney James T. Clancy is prosecuting the case.
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 for this offense is 10 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 Chairman of Rochester Housing Authority Facing Additional Charges in Superseding IndictmentRead 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 grand jury has returned a 28-count superseding indictment charging George H. Moses, 50, of Rochester, NY, with conspiracy to commit wire fraud, wire fraud, and aggravated identity theft. The conspiracy and wire fraud charges carry a maximum penalty of 20 years in prison and a $250,000 fine, while the aggravated identity theft charge carries a mandatory consecutive term of two years in prison. In May 2018, the defendant was charged in a two-count indictment for making false statements to the FBI. Those charges are also part of the superseding indictment, and carry a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that according to the superseding indictment, the new charges involve alleged schemes to defraud Quad A for Kids and Rochester Housing Charities.
Moses is the Executive Director of North East Area Development Association (NEAD) in Rochester, a not-for-profit neighborhood organization governed by a volunteer board of directors, which worked with city officials and agencies to revitalize and stabilize the Sector 8 neighborhood in the northeast quadrant of Rochester. The defendant was also the Chairman of the Board of Commissioners of the Rochester Housing Authority (RHA) until 2018, and a member of the board of directors of the Rochester Housing Charities (RHC) from March 2015 to 2017.
Former Rochester City Councilmember Adam McFadden was the Executive Director of Quad A for Kids, which provided after-school and extended-day learning programs at some elementary schools in the Rochester City School District. The organization operated as an entity separate from the Rochester City School District and received funding from the Rochester Area Community Foundation Initiatives Inc. (RACF). Quad A for Kids shared some of the RACF’s administrative staff but employed its own executive director, executive assistant, and program staff. McFadden also owned Caesar Development LLC, a limited liability company located in Rochester.
Moses is accused of conspiring with Adam McFadden to defraud Quad A for Kids and the RACF. In August 2017, and February 2018, McFadden created two false invoices stating that Quad A for Kids owed NEAD $4,000 for purported training and other services NEAD provided on behalf of Quad A for Kids at various Rochester City schools. Moses and McFadden fraudulently caused the RACF, on behalf of Quad A for Kids, to pay NEAD $8,000, knowing that services were never provided. McFadden then created two invoices which falsely stated that NEAD owed his company Caesar Development LLC a total of $7,000 for purported consultation services Caesar Development LLC provided to NEAD. In fact, Caesar Development LLC did not provided such consultation services to NEAD. Earlier this month, McFadden pled guilty in federal court for his role in the Quad A for Kids fraud and is awaiting sentencing.
Moses is also charged with defrauding the RHC by causing the RHC to overpay the RHC’s Executive Director’s salary and to make other payments to the Executive Director to which the Executive Director was not entitled. The defendant then received a portion of the funds which were overpaid to the Executive Director, either in the form of a cash payment or a wire transfer to a bank account controlled by Moses. Specifically, between January 2018 and September 2019, the defendant caused the RHC to pay to the RHC’s Executive Director $500 in salary every two weeks to which the Executive Director was not entitled. Moses then caused $380 from each fraudulent payment to be transferred to the defendant’s bank account without the knowledge of the Executive Director.
“As alleged in the superseding indictment, Mr. Moses, a public servant, unlawfully sought to divert public money to himself,” noted U.S. Attorney Kennedy. “This Office, together with our partners in law enforcement, will remain vigilant in our efforts to bring to justice all of those, like the defendant, who decide to betray the public trust in order to line their own pockets.”
The superseding indictment is the result of an investigation by the Federal Bureau of Investigation, Rochester Office, under the direction of Special Agent-in-Charge Gary Loeffert; the Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent-in-Charge Brad Geary; and the Internal Revenue Service, Criminal Investigations Division, under the direction of Jonathan D. Larsen, Special Agent-in-Charge, New York Field Office.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Five Indicted in Insurance Fraud Scheme Involving a Staged AccidentRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced today the Indictment of DAMIAN K. LABEAUD (“LABEAUD”), age 47, of New Orleans and LUCINDA THOMAS (“THOMAS”), age 63, MARY WADE (“WADE”), age 55, JUDY WILLIAMS (“WILLIAMS”), age 59, and DASHONTAE YOUNG (“YOUNG”), age 25, all of Houma, Louisiana. These five defendants were charged in a six-count federal indictment with one (1) count of Conspiracy to Commit Wire Fraud in violation of Title 18, United States Code, Section 371 and five (5) counts of Wire Fraud in violation of Title 18, United States Code, Section 1343. If convicted, the defendants face a maximum penalty of five (5) years for Count 1 and twenty (20) years as to Counts 2-6. Upon their release from prison, each defendant can be placed on a term of supervised release up to five (5) years and fined up to $250,000.00 per count.
According to the Indictment, on June 6, 2017, THOMAS, WADE, WILLIAMS, and YOUNG drove from Houma, LA, to meet with LABEAUD for the purpose of staging an automobile accident in order to obtain money through fraud. After their meeting, THOMAS, WADE, WILLIAMS, and YOUNG agreed to allow LABEAUD to drive THOMAS’ 2009 Chevrolet Avalanche vehicle. The defendants then drove around the vicinity of Chef Menteur Highway and Downman Road of New Orleans until they located a 2017 Freightliner tractor-trailer operated by an Arkansas trucking company. At approximately 12:30 P.M., LABEAUD intentionally collided with the tractor-trailer. LABEAUD then exited THOMAS’ vehicle and instructed THOMAS to get behind the wheel of THOMAS’ Avalanche to make it appear that THOMAS was driving the vehicle at the time of the staged accident.
THOMAS, WADE, WILLIAMS, and YOUNG contacted the New Orleans Police Department (“NOPD”) and falsely reported that THOMAS had been the driver of the Avalanche and that the traitor-trailer had struck her vehicle. LABEAUD then returned to the scene and also made false statements to the NOPD that he had witnessed the accident and that the driver of the tractor-trailer had been at fault.
According to the Indictment, before and after the staged accident, LABEAUD contacted Attorney A and arranged a meeting with THOMAS, WADE, WILLIAMS, and YOUNG at a fast food restaurant on Chef Menteur Highway. It is further alleged in the Indictment that Attorney A paid LABEAUD $7,500.00 on the day of the staged accident. Attorney A then demanded approximately $1,000,000.00 per plaintiff in settlement for THOMAS, WADE, and WILLIAMS. Attorney A then filed two lawsuits in the Civil District Court (“CDC”) for the Parish of Orleans. Both of the lawsuits filed in CDC by Attorney A were removed to the U.S. District Court for the Eastern District of Louisiana. The Indictment alleges that THOMAS, WADE, and WILLIAMS each provided false testimony in various depositions taken in conjunction with the lawsuits filed by Attorney A.
Ultimately, but only after a year of pursuing their fraudulent lawsuits, did THOMAS, WADE, and WILLIAMS settle their cases for $7,500.00 each. Each of these five defendants are charged with substantive counts of Wire Fraud based on settlement payments issued by the victim trucking company.
THOMAS, WADE, WILLIAMS, and YOUNG were ordered to appear for an initial appearance and arraignment on this Indictment. LABEAUD was arrested today by special agents with the Federal Bureau of Investigation after the indictment was returned by the Grand Jury.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Federal Bureau of Investigation, Louisiana State Police, and the Metropolitan Crime Commission with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Supervisor of the Financial Crimes Unit, Assistant U.S. Attorney Edward Rivera, Assistant U.S. Attorney Shirin Hakimzadeh, and Trial Attorney Jared Hasten of the U.S. Department of Justice’s Fraud Section, Health Care Fraud Unit.
Felon Pleads Guilty to Unlawful Possession of A FirearmRead the Press Release
RENO, Nev. — Donte Jamar Smith, 41, of Reno, pleaded guilty today to felon in possession of a firearm, U.S. Attorney Nicholas A. Trutanich announced.
According to court documents, Reno Police officers encountered Smith at a street intersection in Reno on July 27, 2019, asleep inside a running vehicle in a travel lane and smelling of alcohol. Upon exiting the vehicle, Smith became noncompliant with officers and during a search of his pants pocket, he was found in possession of a stolen .380 caliber semi-automatic firearm. Smith falsely informed the officers that he had been issued a concealed weapon permit. Smith is unable to lawfully possess firearms because he previously sustained three felony convictions in Clark County for offenses including Robbery with a Deadly Weapon, Burglary with use of a Deadly Weapon, and Ex-Felon in Possession of a Firearm. As Smith was escorted to a patrol vehicle, he attempted to flee on foot but was tackled and subdued.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Megan Rachow is prosecuting the case.
Smith is scheduled to be sentenced by Chief U.S. District Judge Miranda Du on February 24, 2020. Smith faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is part of Project Safe Neighborhoods (PSN), a program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime. For more information about PSN, visit www.justice.gov/usao-nv.
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Felon Indicted for Armed CarjackingRead the Press Release
St. Louis – A federal grand jury returned an indictment today against Brandon Shell, 20, of St. Louis City, Missouri, on multiple criminal counts stemming from a carjacking that took place on October 12, 2019.
According to court documents, on October 12, 2019, in the 3700 block of Juniata, Brandon Shell approached a group of four people with a gun in his hand. As he held the victims at gunpoint, Shell demanded their money and keys to the car they had just parked, a 2013 Kia Optima. The victims, fearing for their safety, gave Shell their money and the keys. Shell fled the scene in the car. St. Louis Metropolitan Police Department officers were able to track the stolen car, which was found in the 5300 block or Oriole near Pine Lawn, a short time after the robbery. Shell got out of the car and continued to flee on foot. The police officers ultimately apprehended Shell and took him into custody.
Shell has been charged with three felony counts of carjacking; brandishing a firearm in furtherance of a violent crime; and being a felon in possession of a firearm.
If convicted, carjacking carries a penalty of not more than fifteen years and a fine of $250,000; brandishing a firearm in furtherance of a violent crime carries a penalty of not less than seven years and no more than life and a fine of $250,000; and being a felon in possession carries a penalty of not more than ten years and a fine of $250,000.
The St. Louis Metropolitan Police Department and the Federal Bureau of Investigation jointly investigated the case.
Charges set forth in the indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Federal jury convicts disgruntled employee of arson at Savannah's historic Gryphon Tea RoomRead the Press Release
SAVANNAH, GA: A Savannah man is facing a substantial prison sentence after a federal jury returned a guilty verdict against him.
Chase Anthony Davis, 30, of Savannah, was convicted of Arson on Thursday, Oct. 24, 2019, after a three-day trial in U.S. District Court, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Davis faces a sentence of five to 20 years in prison, followed by a period of supervised release. There is no parole in the federal system.
According to evidence presented at trial, on the evening of May 8, 2019, Davis, an employee of the Gryphon Tea Room, broke into the landmark restaurant located at 337 Bull Street in Savannah’s Historic District. Davis set six separate fires in the dining room area of the restaurant owned by the Savannah College of Art and Design. The fires self-extinguished, and the property damage caused to the restaurant has since been restored.
Gryphon shares space with The Arts Café and The Scottish Rite Temple and is closely connected with St. John’s Episcopal Church and numerous historic residential structures. It is housed in an adapted early 20th century apothecary constructed between 1913 and 1926.
“It’s fortunate that this malicious arson attack from a disgruntled employee failed to destroy a historical treasure in Savannah, and a welcome victory for justice that a jury of his peers is holding Davis accountable,” said U.S. Attorney Christine. “We commend the Savannah Fire Department, the Savannah Police Department, Savannah College of Art and Design security personnel and the Bureau of Alcohol, Tobacco, Firearms, and Explosives for their combined efforts to make our district safer.”
“This verdict shows ATF and the U.S. Attorney’s Office realize that starting a fire is a crime of violence that places innocent people’s lives and property in harm’s way, and demonstrates their collaborative efforts to fight the crime of arson,” said Beau Kolodka, Assistant Special Agent in Charge of the Atlanta Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (AFT).
This case was investigated by the ATF and the Savannah Police Department, and was prosecuted for the United States by Assistant U.S. Attorneys Joshua Bearden and Jenna Solari.
Federal Jury Convicts Twin Falls Man of Producing Child PornographyRead the Press Release
BOISE – U.S. Attorney Bart Davis announced today that a federal jury sitting in Boise returned guilty verdicts on October 18, 2019, against Seth Anthony Johnson, 35, of Twin Falls, Idaho, on charges that he sexually exploited an 8-year-old child by using her to produce sexually explicit images. The jury also found Johnson guilty of possessing child pornography and sexually exploiting an 8-year-old girl while required to register as a sex offender under federal and state law. The trial began on October 15 and concluded Friday afternoon when the jury returned their verdicts. The case was tried before Chief U.S. District Judge David C. Nye.
According to court records, Johnson was arrested on November 29, 2017. At that time, federal agents discovered six images of child pornography on his cell phone. After eight months of investigation, agents identified the minor victim as an eight-year-old girl. Agents also determined that Johnson had produced the images of child pornography with his cell phone. At the time that he did so, Johnson was required to register as a sex offender under federal and state law due to a prior rape conviction.
The charge of sexual exploitation of a child carries a mandatory penalty of life in prison. The charge of possession of child pornography is punishable by up to 20 years in prison, a fine of up to $250,000, and at least 5 years and up to lifetime of supervised release. For being a registered sex offender at the time he exploited the child, Johnson also faces a consecutive mandatory penalty of 10 years imprisonment, which must be served consecutively to any other term of imprisonment.
Sentencing is set for February 19, 2020, before Judge Nye at the federal courthouse in Boise.
This case was investigated by Homeland Security Investigations and the U.S. Marshals Service.
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.”
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Eight pounds of meth found in spare tire sends California man to prisonRead the Press Release
BILLINGS—A California man was sentenced to more than 15 years in prison today after law enforcement officers found eight pounds of methamphetamine hidden in a spare tire of the rental vehicle he was driving, U.S. Attorney Kurt Alme said.
Manuel Paz Sanchez, Jr., 32, of Sacramento, CA, pleaded guilty in May to possession with intent to distribute meth.
U.S. District Judge Susan P. Watters sentenced Sanchez to 15 years and eight months in prison and to five years of supervised release.
The prosecution said in court records that a Montana Highway Patrol trooper stopped a Ford sedan that Sanchez was driving on Dec. 12, 2017 near Columbus. Sanchez, the sole occupant, had rented the vehicle three days earlier in Sacramento and told the trooper he was driving to Bismarck, N.D. from Idaho, where he had been visiting family. Sanchez planned to fly back to California from Bismarck. The trooper found Sanchez’s story suspicious and asked permission to search the vehicle. Sanchez consented.
Law enforcement officers found in the car a tire repair kit, which they thought was unusual for a rental vehicle. Officers removed the spare tire from the trunk and the spare appeared to be deflated. Officers took the spare to a repair shop in Columbus, where the tire was removed from the rim. Inside the tire were six, vacuum-sealed packages containing approximately 8.3 pounds, or about 30,000 doses, of meth.
Assistant U.S. Attorney Tom Godfrey prosecuted the case, which was investigated by the Drug Enforcement Administration.
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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Department of Justice Awards more than $85.3 Million in Grants to Address School ViolenceRead the Press Release
The Department of Justice announced this week it has awarded more than $85.3 million to bolster school security—including funding to educate and train students and faculty—and support first responders who arrive on the scene of a school shooting or other violent incident.
“These federal resources will help to prevent school violence and give our students the support they need to learn, grow, and thrive,’ said Attorney General William P. Barr. “By training faculty, students and first responders, and by improving school security measures, we can make schools and their communities safer.”
The grants award more than $5 million in funding to prevent violence in schools in the Western District of Texas. President Trump signed the STOP School Violence Act into law in March 2018, authorizing grants that are designed to improve threat assessments, train students and faculty to provide tips and leads, and prepare law enforcement officers and emergency professionals to respond to school shootings and other violent incidents. The grant programs are managed by OJP’s Bureau of Justice Assistance and the Justice Department’s Office of Community Oriented Policing Services.
The Bureau of Justice Assistance, within the Department’s Office of Justice Programs, and the Office of Community Oriented Policing Services manage the programs and administer the grants, which include funds to:
- Develop school threat assessment teams and pursue technological solutions to improve reporting of suspicious activity in and around schools;
- Implement or improve school safety measures, including coordination with law enforcement, as well as the use of metal detectors, locks, lighting and other deterrent measures;
- Train law enforcement to help deter student violence against others and themselves;
- Improve notification to first responders through implementation of technology that expedites emergency notifications;
- Develop and operate anonymous reporting systems to encourage safe reporting of potential school threats;
- Train school officials to intervene when mentally ill individuals threaten school safety; and
- Provide training and technical assistance to schools and other awardees in helping implement these programs.
For more details about these individual award programs, as well as listings of individual 2019 awardees, visit https://go.usa.gov/xVJuV.
About the Office of Justice Programs:
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal justice system. More information about OJP and its components can be found at www.ojp.gov.
About the Office of Community Oriented Policing Services:
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1994, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of approximately 130,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit www.cops.usdoj.gov.
DOJ reaches $6.4 million settlement with large engineering and scientific consulting firm regarding overbilling on government contractsRead the Press Release
Seattle – The U.S. Department of Justice and CH2M Hill have reached a $6.4 million settlement to resolve allegations that CH2M Hill overbilled the U.S. Air Force for environmental consulting work and then continued to overbill despite an audit highlighting the problem, announced U.S. Attorney Brian T. Moran. At issue is the use of consulting staff who did not meet the minimum educational requirements of two Air Force contracts.
“We rely on those who apply for, and receive, government contracts to fulfill their end of the deal -- and that includes making sure that the personnel on the job are qualified for the job,” said U.S. Attorney Brian T. Moran. “As stewards of American's tax dollars, we need to make sure we get what we paid for.”
According to the settlement agreement, in 2017, CH2M Hill headquartered in Englewood, Colorado and with offices in Bellevue, Washington, reported an overpayment from the Air Force and paid the government $10,529,707. The sum represents $8,323,179 in overbilling and $2,206,528 in interest between 2003 and 2014. In connection with that agreement, CH2M Hill admits that it billed under the government contract for employees who did not meet the educational and work experience qualifications in the contract.
The government contends that CH2M Hill knew of the overpayment as early as 2011, but attempted to keep the information secret by claiming that an audit of its labor practices was privileged information. Under the law, the government is allowed to collect double damages, but due to statute of limitations constraints, that amount is capped at $6,400,000.
“This investigation highlights the patience and perseverance of the Air Force Office of Special Investigations’ Office of Procurement Fraud Investigations and our Department of Defense and Department of Justice partners, who work diligently day in and day out to identify and neutralize fraudulent activity affecting the DoD and our U.S. Government,” said Special Agent Anthony Walker, AFOSI Office of Procurement Fraud Investigations, Detachment 2. “No company or person who defrauds the U.S. Government is outside of the reach of justice.”
CH2M Hill is not admitting any wrongdoing with the settlement, which resolves all claims.
The case was investigated by the Defense Contract Audit Agency (DCAA) and the settlement was negotiated by Assistant United States Attorneys Kayla Stahman and Pooja Davé.
DEA will now accept vaping cartridges as the agency and partners hold National Prescription Drug Take Back Day on Saturday October 26Read the Press Release
The National Prescription Drug Take Back Day initiative continues to remove ever-higher amounts of opioids and other medicines from the nation’s homes, where they are vulnerable to misuse, theft or abuse by family members and visitors, including children and teens.
DEA and its national, tribal and community partners will hold National Prescription Drug Take Back Day across the country on Saturday, October 26. The service is free and anonymous.
Vaping cartridges will now be accepted as part of the event.
Now in its ninth year, DEA has collected a total of nearly 11 million pounds (more than 5,400 tons) of expired, unused and unwanted prescription medications through its Take Back Day events. During the April 2019 event, they collected nearly 940,000 pounds of prescription drugs -- more than twice the weight of the Statue of Liberty.
DEA and its community partners set up drop off sites across the nation where individuals turned in their unused, unneeded or expired prescription medications, as well as vaping cartridges. This weekend, approximately 6,000 collection sites manned by nearly 5,000 partner law enforcement agencies will be open 10 a.m. to 2 p.m. local time. The public can find a nearby collection site at www.DEATakeBack.com or by calling 800-882-9539. (DEA cannot accept liquids, needles or sharps.)
“I encourage everyone to go into their medicine cabinets this Saturday and safely dispose of their leftover pills and medication,” U.S. Attorney Justin Herdman said. “We know of far too many heartbreaking stories of addiction that begin with someone abusing or misusing prescription medication. Drug Take Back Day is a way for everyone to get involved in combating this drug epidemic that has devastated so many families here in Ohio.”
Rates of prescription drug abuse in the United States continue to be alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. The majority of prescription drug abusers say they get their drugs free from friends and family, including from the home medicine cabinet. Take Back Day is a unique opportunity for Americans to protect their homes and medicine cabinets from theft and abuse.
DEA to Accept Electronic Vaping Devices and Cartridges as Part of National Prescription Drug Take Back Day this Saturday, Oct. 26thRead the Press Release
MIAMI - U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida joins the Drug Enforcement Administration (DEA) in announcing that this Saturday, October 26, 2019, from 10 a.m. to 2 p.m., DEA will host events throughout the country, including in South Florida, in support of National Prescription Drug Take Back Day. The initiative is an effort to rid homes of potentially dangerous expired, unused, and unwanted prescription drugs, as well as vaping devices and cartridges. The service is free and anonymous.
With robust public participation over the course of 16 prior events, the National Prescription Drug Take Back Day initiative continues to remove ever-higher amounts of opioids and other medicines from the nation’s homes, where they are vulnerable to misuse, theft or abuse by family members and visitors, including children and teens.
For the first time, DEA will now accept vaping devices and cartridges at any of its drop-off locations during National Prescription Drug Take Back Day. It is important to note that DEA cannot accept devices containing lithium ion batteries. If batteries cannot be removed prior to drop-off, DEA encourages individuals to consult with stores that recycle lithium ion batteries.
Concerns have been raised across the United States over illnesses and death caused by vaping and the high youth vaping initiation rates. In an effort to support a healthy lifestyle and energetic population, especially among America’s youth, DEA is committed to doing all it can to help safely dispose of vaping devices and substances.
U.S. Attorney Ariana Fajardo Orshan said, "I encourage everyone in our South Florida community to bring their unused, unwanted and expired medications, as well as vaping devices and cartridges, to a local collection site this Saturday. Help us to stop the wake of destruction and devastation caused by the opioid crisis and protect our loved ones from harm.”
"DEA’s National Prescription Drug Take Back Initiative helps get unused and unwanted prescription medications out of circulation and ensures their safe disposal," said Acting Administrator Uttam Dhillon. "This year, we are taking a step further by accepting vaping devices and cartridges as we work with our federal partners to combat this emerging public health threat to the nation’s youth."
Now in its tenth year, DEA has collected a total of more than 11 million pounds (almost 6,000 tons) of expired, unused and unwanted prescription medications through its Take Back Day events. DEA is continuing to register law enforcement partners and collection sites for the upcoming Take Back Day. As of Oct. 15th, more than 4,500 registered law enforcement partners will assist with more than 5,250 registered sites and 135 tribal locations across the country, with more being added each day.
Florida will have over 200 collections located throughout the state. The public can find a nearby collection site at www.DEATakeBack.com or by calling or 800-882-9539 or the DEA Miami Office at 571-362-3098.
National Take Back Day has received enthusiastic public support since its inception in 2010. Last April, the public turned in 469 tons (937,443pounds) of prescription drugs at more than 6,258 sites operated by the DEA and its 4,969 local and tribal partners.
For more information about the harms of youth vaping, please visit: https://www.justthinktwice.gov/facts/vaping-what-you-should-know.
DEA prepares for prescription drug take back across MontanaRead the Press Release
BILLINGS -- U.S. Attorney Kurt Alme will join the Drug Enforcement Administration in support of the 18th National Prescription Drug Take Back Day on Saturday, Oct. 26. The biannual event will be held from 10 a.m. to 2 p.m., at 26 collection sites across Montana. The event is an effort to rid homes of potentially dangerous expired, unused, and unwanted prescription drugs.
New for this campaign, the DEA will be accepting vaping devices and cartridges, in addition to tablets, capsules, patches and other medications in solid form.
“The primary way opioid abusers first get pills is from family, friends or the medicine cabinet. That’s why getting rid of unneeded and expired prescriptions is an important step Montanans can take to prevent opioid abuse and addiction,” U. S. Attorney Alme said.
“The DEA, along with its community partners, will be collecting unused, unneeded and expired prescription medications. In addition, DEA will also accept vaping devices and cartridges with no questions asked. Just place your items in a bag or box and, in Billings, drop them off in the parking lot area of the Elks Lodge, located at 934 Lewis Ave., or the First Interstate Bank parking lot, located at 730 Main Street, in the Heights,” said DEA Montana Resident Agent in Charge Stacy Zinn-Brittain.
Last April, Americans turned in 468 tons (937,443 pounds) of prescription drugs at 6,258 sites operated by the DEA and more than 4,969 of its state and local law enforcement partners. Montanans turned in 4,113 pounds of prescription drugs, including 78 pounds from Indian reservations, at the April event.
The disposal service is free and anonymous, no questions asked. The DEA cannot accept liquids, needles, or sharps, only pills or patches. Flushing medications down the toilet or throwing them in the trash pose safety and health hazards. This initiative addresses the public safety and health issues that surround medications languishing in home cabinets, becoming highly susceptible to diversion, misuse, and abuse.
For more information or to locate a collection site near you, go the DEA Prescription Drug Take Back Day web site at https://takebackday.dea.gov/#collection-locator where you can search by zip code, city, or state.
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Craig Cowles Pleads Not Guilty to Tax Evasion ChargesRead the Press Release
The United States Attorney for the District of Vermont announced that Craig Cowles, 51, of Richmond, pleaded not guilty today in United States District Court in Burlington to tax-related fraud charges. U.S. Magistrate Judge John M. Conroy released Cowles on conditions pending trial, which has not been scheduled.
On September 25, a federal grand jury in Rutland returned an indictment charging Cowles with five counts of tax evasion and 14 counts of structuring bank transactions to avoid currency reporting requirements. According to the indictment, Cowles is the owner of Cowles Excavating, an earth-moving business located in Richmond. The indictment charges that between 2012 and 2017, Cowles generated approximately $2.8 million in gross revenue from Cowles Excavating and other businesses he operated. It alleges that during that period, Cowles filed no tax returns with the Internal Revenue Service and paid no federal income taxes despite earning hundreds of thousands of dollars in net profits.
The indictment further accuses Cowles of structuring financial transactions to avoid federal currency reporting requirements. Under law, a financial institution must file a report with the Secretary of the Treasury whenever a customer engages in a financial transaction, such as a bank deposit or withdrawal, that involves more than $10,000 in cash. According to the indictment, Cowles structured a number of transactions to avoid this reporting requirement. He allegedly did this by breaking down checks he received from business clients into cash amounts that were slightly under $10,000, then using additional funds from the checks to buy cashiers checks payable to himself. Cowles often converted these cashiers checks into additional cash. Federal law prohibits anyone from structuring deposits and withdrawals that are intended to circumvent the $10,000 cash reporting requirement.
The United States Attorney emphasizes that the charges in the indictment are merely accusations and that the defendant is presumed innocent unless and until he is proven guilty.
The tax evasion charges are punishable by up to five years of imprisonment and a fine of up to $100,000. The structuring charges are also punishable by up to five years of imprisonment and a fine of up to $250,000. The actual sentence in the event of a conviction would be determined with reference to federal sentencing guidelines.
The case was investigated by the Criminal Investigation Division of the Internal Revenue Service.
Cowles is represented by Tris Coffin and Tim Doherty. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Couple Operating Alabama Construction Company Sentenced to Prison for Payroll Tax FraudRead the Press Release
BIRMINGHAM – A Crane Hill husband and wife were sentenced to 20 months collectively in prison today for failing to pay over payroll taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, U.S. Attorney Jay E. Town for the Northern District of Alabama and Internal Revenue Service Criminal Investigation Special Agent in Charge Thomas J. Holloman.
U.S. District Judge Liles C. Burke sentenced WALTER MICHAEL WILLIAMS to 13 months in prison and AMY BUTLER WILLIAMS to 7 months in prison for failing to pay over payroll taxes. According to court documents and information provided to the court, Walter Michael Williams and Amy Butler Williams operated Dixie Steel Erectors (DSE), a commercial construction business in Hanceville, Alabama. Walter Michael Williams, president and owner of DSE, and Amy Williams, bookkeeper and office manager of DSE, were responsible for withholding and paying over DSE’s payroll taxes. During 2012 and 2013, DSE accrued payroll tax liabilities and the Williamses withheld those taxes from the pay of the business’s employees, but willfully failed to pay over the withheld amounts to the Internal Revenue Service (IRS). Instead, the Williamses caused DSE to pay for a number of their personal expenses, including mortgages, alimony, and football season tickets. The Williamses also failed to file personal tax returns, and failed to file corporate tax returns for DSE.
“Employers who lead their employees to believe that they are properly paying their taxes, but instead pocket that money for their own greed and personal use, are not above the law,” Town said. “The imposition of prison sentences in these cases show that the Justice Department remains steadfast in its commitment to seek equal justice under the law, and that access to power and wealth will not protect white collar criminals from the bars of a federal prison.”
In addition to the term of imprisonment imposed, the Williamses were ordered to serve three years of supervised release and to pay restitution in the amount of $502,683.23 to the IRS.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Town commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant United States Attorneys Allison Garnett and Melissa Atwood, who are prosecuting the case
Couple Operating Alabama Construction Company Sentenced to Prison for Payroll Tax FraudRead the Press Release
A Crane Hill, Alabama, husband and wife were sentenced to 20 months collectively in prison yesterday for failing to pay over payroll taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Jay E. Town for the Northern District of Alabama.
U.S. District Judge Liles C. Burke sentenced Walter Michael Williams to 13 months in prison and Amy Butler Williams to seven months in prison for failing to pay over payroll taxes. According to court documents and information provided to the court, Walter Michael Williams and Amy Butler Williams operated Dixie Steel Erectors (DSE), a commercial construction business in Hanceville, Alabama. Walter Michael Williams, DSE’s president and owner, and Amy Williams, DSE’s bookkeeper and office manager, were responsible for withholding and paying over DSE’s payroll taxes. During 2012 and 2013, DSE accrued payroll tax liabilities and the Williamses withheld those taxes from the pay of the business’s employees, but willfully failed to pay the withheld funds to the Internal Revenue Service (IRS). Instead, the Williamses caused DSE to pay for a number of their personal expenses, including mortgages, alimony, and football season tickets. The Williamses also failed to file personal tax returns, and failed to file corporate tax returns for DSE.
In addition to the term of imprisonment imposed, the Williamses were each ordered to serve three years of supervised release and to pay restitution in the amount of $502,683.23 to the IRS.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Town commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant United States Attorneys Allison Garnett (formerly of the Tax Division) and Melissa Atwood, who are prosecuting the case.
Convicted Murderer Sentenced for Drug and Firearms CrimesRead the Press Release
NEWPORT NEWS, Va. – A Newport News man was sentenced today to 25 years in prison for possession of a firearm in furtherance of drug trafficking crime, felon in possession of a firearm and possession with intent to distribute marijuana.
“Willie Hardy, Jr., has a significant and lengthy criminal history of violence,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “In addition to being convicted of murder, he has been convicted of multiple other violent offenses, including violence against women. This is precisely the type of criminal that needed the attention of federal law enforcement and significant time in prison. I have no doubt that Newport News is safer with Hardy off the streets and behind bars.”
According to court documents, Willie M. Hardy, Jr., 47, engaged in drug trafficking while armed and while on federal supervision. In May 2018, Newport News Police Department received information that Hardy was trafficking drugs while armed out of a residence in Newport News. At the time, Hardy was on federal supervision for a September 2009 federal conviction for possession with intent to distribute marijuana and felon in possession of a firearm. In February 2018, Hardy stopped communicating with his probation officer, and a federal arrest warrant was issued for Hardy in March 2018. Based upon the information investigators received, law enforcement obtained a search warrant for the residence in May 2018. After executing the search warrant, law enforcement recovered two firearms, marijuana and heroin from within the residence. Investigators interviewed Hardy, who confessed that he distributed marijuana and within the last five weeks had been middlemanning heroin. Hardy also admitted to receiving both firearms.
“This case demonstrates ATF’s commitment to supporting our law enforcement partners with investigative leads generated by our National Integrated Ballistic Information Network (NIBIN),” said Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division. “This cutting edge technology matches ballistic evidence to crime scenes, helping law enforcement identify suspects and solve crimes much faster than is otherwise possible. Tools like NIBIN are crucial to the safety of our communities because they allow law enforcement to swiftly remove violent offenders like Hardy from our streets.”
While in custody on firearms and drug charges, Hardy attempted to obstruct justice by making jail calls to see if someone else who was not a felon would take responsibility for the firearm, and even contemplated having someone write an affidavit on his behalf.
After a four day jury trial, Hardy was convicted of possession of a firearm in furtherance of drug trafficking crime, felon in possession of a firearm and possession with intent to distribute marijuana.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; and Steve R. Drew, Chief of Newport News Police, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen. Assistant U.S. Attorney Megan M. Cowles prosecuted the case.
This 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.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:18-cr-77.
Contract Officer and Government Contractor Arrested on Bribery and Wire Fraud ChargesRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that Richard Vaughan, 72, and Donald Garner, 47, were arrested yesterday and have been charged in a 31 count indictment with bribery and wire fraud related to Small Business Association (“SBA”) “set-aside” contracts with the United States Department of Veterans Affairs (“VA”).
Vaughan was a VA contract officer representative (“COR”) and was responsible for awarding and managing numerous contracts awarded by the VA, including certain Service-Disabled Veteran-Owned Small Business (SDVOSB) “set-aside” contracts. Vaughan also had “Purchase Card Program” authorization to spend approximately $600,000 per year on “micro-purchases” for nonstandard supplies and services for the VA.
Garner was the owner and manager of Veteran Ability, LLC, a government contractor that provided various services, such as snow removal and housekeeping, to the U.S. government, including the VA in Anchorage, Alaska.
From June 2015 through January 2017, Garner paid at least $29,235 in bribes to Vaughan in exchange for, among other things, preferential treatment in awarding certain VA contracts and purchase card orders and certifying payments on deficient invoices submitted by Garner for work that was unnecessary or never performed. The scheme resulted in Garner receiving the benefit of payments of approximately $725,226.56 under a VA snow removal contract, $776,272.00 under a VA housekeeping contract, and purchase card payments in the amount of $194,330.40.
If convicted both defendants face a maximum of 20 years in prison, a $250,000 fine, and 3 years of supervised release for the most serious charges in the indictment. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Federal Bureau of Investigation (FBI), United States Department of Veterans Affairs Office of the Inspector General, Small Business Administration Office of the Inspector General, and General Services Administration Office of the Inspector General, conducted the investigation leading to the indictment in this case. This case is being prosecuted by Assistant U.S. Attorneys Ryan D. Tansey and Kyle Reardon.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Columbus man sentenced to prison for illegally exporting goods to IranRead the Press Release
COLUMBUS, Ohio – A Central Ohio man was sentenced in U.S. District Court today for exporting gas and oil pipeline parts to Iran for more than a decade in deliberate violation of a U.S. embargo and trade sanctions.
Behrooz Behroozian, 64, of Columbus, was sentenced to 20 months in prison.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio; Joseph M. Deters, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Douglas R. Hassebrock, Acting Assistant Secretary for Export Enforcement, Bureau of Industry and Security, U.S. Department of Commerce, announced the sentence handed down today by Senior U.S. District Judge James L. Graham.
Behroozian was born in Iran in 1955 and entered the United States in 1976. He became a naturalized U.S. citizen in 1987.
According to the sentencing memorandum filed in this case, Behroozian used an intermediary company, Sumar Industrial Equipment, to attempt to cover-up that he was illegally supplying industrial equipment to Iran in violation of the Emergency Economic Powers Act (IEEPA).
Behroozian exported manifolds, valves and connectors used for industrial pipelines in the gas and oil refinement industry to Iran via Sumar and profited $35,000 to $40,000 per year. This violated embargo and trade sanctions, which have been imposed upon Iran by the United States since May 1995.
In November 2006, Behroozian became the owner and operator of a computer parts supplier in Dublin, Ohio called Comtech International. Comtech had no storefront and made no domestic sales. It seldom exported computer parts. Instead, Comtech primarily exported industrial equipment to Sumar in the United Arab Emirates for further exportation to Iran.
“Behroozian profited financially by strengthening the economy of one of the world’s most infamous state sponsors of terrorism,” U.S. Attorney Glassman said. “The parts obtained by Behroozian benefited the Iranian gas and petrochemical industry. Not only did Behroozian’s crimes diminish the effectiveness of American trade sanctions, but they also undermined America’s national security.”
“Behrooz Behroozian willfully violated export control laws by sending dual-use items to Iran, furthering their military and economic capabilities,” stated FBI Cincinnati Acting Special Agent in Charge Joseph M. Deters. “The sentencing today is an example of the FBI's commitment to partnering with other U.S. government agencies to vigorously enforce laws designed to keep sensitive items out of the hands of nations and individuals hostile to the U.S. The FBI will continue these efforts to protect our national security and stop the illegal export of protected information and technology.”
“For over a decade, Behrooz Behroozian repeatedly violated export control laws and aided Iranian entities in procuring controlled components that have both commercial and military uses in deliberate violation of a U.S. embargo and trade sanctions. With this sentence, he will be held accountable for circumventing critical U.S. laws designed to protect our national security interests,” said Acting Assistant Secretary for Export Enforcement Douglas R. Hassebrock.
U.S. Attorney Glassman commended the cooperative investigation by the FBI and U.S. Department of Commerce, as well as Assistant United States Attorneys Douglas W. Squires, Timothy J. Prichard and S. Courter Shimeall and Department of Justice National Security Division Trial Attorney Will Mackie, who are representing the United States in this case.
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Columbus Man Sentenced to Prison for Illegally Exporting Goods to IranRead the Press Release
A Central Ohio man was sentenced in U.S. District Court today for exporting gas and oil pipeline parts to Iran for more than a decade in deliberate violation of a U.S. embargo and trade sanctions.
Behrooz Behroozian, 64, of Columbus, was sentenced to 20 months in prison.
“For years, this defendant deliberately sought to defeat and evade the Iranian sanctions for personal gain while supplying critical equipment to the Iranian industrial complex. As this case demonstrates, the desire for specialized American technology and the willingness to illegally supply it to hostile countries are very real and ever present,” said Assistant Attorney General for National Security John C. Demers. “The Department of Justice and our law enforcement partners remain committed to identifying, disrupting, and prosecuting this kind of criminal conduct.”
“Behroozian profited financially by strengthening the economy of one of the world’s most infamous state sponsors of terrorism,” said Benjamin C. Glassman, U.S. Attorney for the Southern District of Ohio. “The parts obtained by Behroozian benefited the Iranian gas and petrochemical industry. Not only did Behroozian’s crimes diminish the effectiveness of American trade sanctions but they also undermined America’s national security.”
“Behoorz Behroozian willfully violated export control laws by sending dual-use items to Iran, furthering their military and economic capabilities,” stated FBI Cincinnati Acting Special Agent in Charge Joseph M. Deters. “The sentencing today is an example of the FBI's commitment to partnering with other U.S. government agencies to vigorously enforce laws designed to keep sensitive items out of the hands of nations and individuals hostile to the U.S. The FBI will continue these efforts to protect our national security and stop the illegal export of protected information and technology.”
“For over a decade, Behrooz Behroozian repeatedly violated export control laws and aided Iranian entities in procuring controlled components that have both commercial and military uses in deliberate violation of a U.S. embargo and trade sanctions. With this sentence, he will be held accountable for circumventing critical U.S. laws designed to protect our national security interests,” said Acting Assistant Secretary for Export Enforcement Douglas R. Hassebrock.
Behroozian was born in Iran in 1955 and entered the United States in 1976. He became a naturalized U.S. citizen in 1987.
According to the sentencing memorandum filed in this case, Behroozian used an intermediary company, Sumar Industrial Equipment, to attempt to cover-up that he was illegally supplying industrial equipment to Iran in violation of the Emergency Economic Powers Act (IEEPA).
Behroozian exported manifolds, valves and connectors used for industrial pipelines in the gas and oil refinement industry to Iran via Sumar and profited $35,000 to $40,000 per year. This violated embargo and trade sanctions imposed upon Iran by the United States in May 1995.
In November 2006, Behroozian became the owner and operator of a computer parts supplier in Dublin, Ohio, called Comtech International. Comtech had no storefront and made no domestic sales. It seldom exported computer parts. Instead, Comtech primarily exported industrial equipment to Sumar in the United Arab Emirates for further exportation to Iran.
Assistant Attorney General Demers and U.S. Attorney Glassman commended the cooperative investigation by the FBI and U.S. Department of Commerce, as well as Assistant United States Attorneys Douglas W. Squires, Timothy J. Prichard and S. Courter Shimeall and Department of Justice National Security Division Trial Attorney Will Mackie, who are representing the United States in this case.
Charleston Woman Sentenced for Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – A Charleston woman was sentenced to prison for a federal drug crime, announced United States Attorney Mike Stuart. Stephanie Lawhorn, 39, was sentenced to 36 months in prison and 5 years of supervised release for possession with intent to distribute fentanyl and methamphetamine.
“Lawhorn was a poly-drug dealer,” said United States Attorney Mike Stuart. “One by one, we’re sending poison peddlers to federal prison.”
Lawhorn previously admitted that on September 27, 2018, she was stopped by police officers for a traffic violation while driving in Belle, West Virginia. Officers found 15 grams of fentanyl and 115 grams of methamphetamine in her car, which Lawhorn admitted she intended to sell.
The Belle Police Department conducted the investigation. United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney Chris R. Arthur is handling the prosecution.
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Camden Man Sentenced to Nine Years in Prison for Armed Robbery Spree of Businesses and Banks in Camden and Burlington CountiesRead the Press Release
CAMDEN, N.J. – A Camden man was sentenced today to 108 months in prison for robbing seven businesses and banks in West Berlin, Cinnaminson, Maple Shade, Mount Holly, Haddon Township, and Voorhees, New Jersey, U.S. Attorney Craig Carpenito announced.
William Carter, 51, previously pleaded guilty before U.S. District Judge Renée Marie Bumb to an information charging him with one count of Hobbs Act robbery. Judge Bumb imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
From Dec. 12, 2016, through March 10, 2017, Carter planned, coordinated, and recruited accomplices to assist him in robbing seven businesses and banks in Camden and Burlington Counties. In each robbery, Carter selected his accomplices, instructed them on their roles, directed them to wear masks and wield firearms, and served as the getaway driver.
In addition to the prison term, Judge Bumb sentenced Carter to three years of supervised release and ordered him to pay restitution of $99,187.
Several of Carter’s associates have already been sentenced as part of this case. Tammond Hill, 21, of Philadelphia, Pennsylvania, previously pleaded guilty and was sentenced to 115 months in prison. Rabon Watkins, 23, of Camden, previously pleaded guilty and was sentenced to 92 months in prison. Steven Cooley, 29, of Woodlynne, New Jersey, previously pleaded guilty and was sentenced to 60 months in prison.
U.S. Attorney Carpenito credited special agents of the ATF Newark Division, under the direction of Special Agent in Charge Charlie J. Patterson, with the investigation leading to today’s sentencing. He also thanked the ATF Philadelphia Division, under the direction of Special Agent in Charge Don Robinson; the Camden County Prosecutor’s Office, under the direction of Acting Prosecutor Jill S. Mayer; the Berlin Township Police Department, under the direction of Chief Leonard Check; the Haddon Township Police Department, under the direction of Chief Mark Cavallo; the Voorhees Township Police Department, under the direction of Chief Louis Bordi, the Maple Shade Police Department, under the direction of Chief Christopher J. Fletcher; the Mount Holly Police Department, under the direction of Chief Richard Spitler; and the Cinnaminson Police Department, under the direction of Chief Rich Calabrese, for their assistance in this case.
The government is represented by Assistant U.S. Attorney Kristen M. Harberg of the United States Attorney’s Office Criminal Division in Camden.
Defense counsel: Maggie Moy Esq., Assistant Federal Public Defender, Camden
Barbour County woman sentenced for methamphetamine chargeRead the Press Release
ELKINS, WEST VIRGINIA – Chelsey Farley, of Philippi, West Virginia, was sentenced to 21 months incarceration for a methamphetamine distribution charge, U.S. Attorney Bill Powell announced.
Farley, age 27, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine” in August 2018. Farley admitted to possessing crystal methamphetamine, also known as “Ice,” in November 2016 in Barbour County.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Mountain Region Drug & Violent Crimes Task Force investigated.
U.S. District Judge John Preston Bailey presided.
Bank robber released and strikes again, now heads back to prisonRead the Press Release
McALLEN, Texas – A 55-year-old McAllen resident has been ordered to federal prison after he admitted to robbing another bank, announced U.S. Attorney Ryan K. Patrick.
Joe Wayne Galipp pleaded guilty Aug. 8, 2019, admitting he robbed the Vantage Bank located on 2nd Street in McAllen.
Today, U.S. District Judge Randy Crane handed Galipp a 60-month sentence to be immediately followed by three years of supervised release. At the hearing, the court heard about a 2004 convenience store robbery and a 2013 bank robbery. After serving his federal sentence for the bank robbery, he was ordered to be on supervised release, during which time he committed the instant offense. The court revoked the remainder of that term and ordered he serve five months to be served concurrently to the current sentence. In handing down the sentence, the court noted the seriousness of Gallip’s prior criminal history and continued criminal conduct.
In May 2019, Galipp entered the Vantage Bank, approached a teller and demanded money from the till. The teller ultimately relented after his repeated commands. Galipp then placed the money in a bag he had brought with him and fled on foot.
Later that same day, law enforcement apprehended Galipp and positively identified him through security camera footage. At that time, he was in possession of the bag containing the money.
In 2013, U.S. District Judge Andrew Hanen sentenced Galipp to a 41-month sentence for the previous bank robbery. Galipp had entered a Bank of America in Harlingen, dressed in a trench coat, hat and sunglasses. He then approached the teller with a handwritten note demanding the money, after which he fled on foot.
Galipp has been and will remain in custody where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The McAllen Police Department and FBI conducted the investigation. Assistant U.S. Attorney Laura Garcia prosecuted the case.
Atlanta man sentenced to ten years for possession of child pornographyRead the Press Release
ATLANTA - Michael Frost, who was previously convicted and served a sentence in federal prison for possession of child pornography, has been sentenced for possessing child pornography including images of children as young as seven.
“Frost made a decision to go back to victimizing children even though he has already been jailed once for it,” said U.S. Attorney Byung J. “BJay” Pak. “Child pornography is disgusting and it is a second victimization of a child who has already been traumatized. Our office will continue to pursue and prosecute those who prey on children. Additionally, we will pursue criminals who use the dark web to avoid prosecution for their illicit activities.”
“Clearly prison time was not a deterrent that kept Frost from continuing his abhorrent behavior,” said Special Agent in Charge of FBI Atlanta, Chris Hacker. “If he thought he could hide behind the dark web, he was wrong, thanks to the cooperative work of the FBI and our local law enforcement partners. Now Frost will serve several more years in prison where he won’t be able to victimize any more children.”
“There is no work in law enforcement more important than protecting children. Officers, agents and prosecutors at all levels of our profession take great pride in capturing and prosecuting vile men and women that aim to victimize children. We are so grateful for our working relationship with the FBI and the U.S. Attorney’s Office, and this is a great example of our partnerships leading to the apprehension of another child predator,” Chief John Robison, Alpharetta Department of Public Safety.
“Again a person intent on victimizing our children has been brought to answer for his criminal acts. Only through continued diligence by local, state and federal law enforcement can these online predators be stopped. The Forsyth County Sheriff’s Office is committed to working with our partner agencies and prosecutors to stop these criminals. Kudos to FBI Atlanta, the U.S. Attorney’s Office and the Alpharetta Department of Public Safety for their assistance. Cases like this should serve as a warning to these criminals, that there is no room to hide when you endanger our children. We will not stop and we will find you and hold you accountable for your criminal acts,” said Forsyth County Sheriff Ron Freeman.
According to U.S. Attorney Pak, the charges and other information presented in court: During an undercover operation on the dark web, an area on the Internet where illegal content is uploaded and shared, law enforcement identified an IP address assigned to a physical address in Cumming, Georgia where child pornography had been downloaded, and interviewed the occupant at that address. The occupant was not involved in downloading child pornography, but told law enforcement that Michael Frost visited regularly and used his personal laptop computer to access the web when at the address.
When law enforcement obtained a search warrant for Frost’s address in Atlanta, Georgia, they seized multiple electronics that contained tens of thousands of images and videos of children as young as seven years old engaged in sodomy and other sexually explicit activity. Defendant had been previously convicted in 2002 in federal court of possessing child pornography and served approximately three years in federal prison.
Michael Frost, 49, of Atlanta, Georgia, was sentenced by U.S. District Court Judge Leigh Martin May to ten years in prison followed by ten years supervised release, and ordered to register as a sex offender for life. He was also ordered to pay a special assessment of $5,100, and restitution of $20,000 to victims. Frost was convicted of these charges on July 19, 2019, after he pleaded guilty.
The Federal Bureau of Investigation, Forsyth County Sheriff’s Office, and Alpharetta Police Department investigated this case, with assistance from the Atlanta Police Department.
Special Assistant U.S. Attorney Diane C. Schulman prosecuted the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Aggravated sex abuse, arson sends Poplar man to prisonRead the Press Release
GREAT FALLS--A Poplar man who admitted sexually abusing a teenage girl and of burning down a house on the Fort Peck Indian Reservation was sentenced this week to 10 years and one month in prison, six years of supervised release and ordered to pay $60,000 restitution, U.S. Attorney Kurt Alme said.
Clifford William John Youpee, 32, pleaded guilty in April to aggravated sexual abuse and to arson of a dwelling in two separate cases.
U.S. District Judge Brian M. Morris presided at the Oct. 23 hearing.
In court records filed in the case, the prosecution said that in September 2016, a teenage girl reported that Youpee had raped her the night before. The victim had fallen asleep in a house and awoke to Youpee putting his hand up her shirt. The victim told Youpee to stop but he held her down and raped her.
The arson occurred on Oct. 20, 2017 after Youpee and another person were upset that they were removed from staying in a residence used by people as place to live and sleep. To seek retribution for being removed, Youpee and the other person both decided to burn the house to the ground. Witnesses confirmed that Youpee and the individual were the only persons in the residence immediately prior to it burning. The fire marshal responded and concluded the fire was set intentionally because there were two separate origins in the residence. The Fort Peck Housing Authority was owed $60,000 in restitution.
Assistant U.S. Attorney Ryan Weldon prosecuted the cases, which were investigated by the FBI and Fort Peck Tribes Department of Law and Justice.
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Admitted Gang Member Pleads Guilty to Firearm and Drug ChargesRead the Press Release
PROVIDENCE – An admitted member of the “East B Bop Milla Blood” street gang, previously convicted on state firearm and assault charges, today pleaded guilty in U.S. District Court to federal firearm and drug charges.
Damon A. Winslow, 25, of Providence, pleaded guilty to a three-count information charging him with being a felon in possession of a firearm, possessing a firearm in furtherance of drug trafficking, and possession with intent to distribute marijuana, announced United States Attorney Aaron L. Weisman, Special Agent in Charge of the Boston Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Kelly D. Brady, and Providence Police Chief Hugh T. Clements, Jr.
According to court documents and information presented to the Court, On March 12, 2019, during a Project Safe Neighborhoods investigation, members of the Rhode Island ATF Task Force and Providence Police executed a federal court-authorized search of Winslow’s residence and seized a fully loaded .45 caliber pistol, more than 150 rounds of assorted ammunition, and approximately 3.5 ounces of marijuana.
At the time of the search, Winslow told members of law enforcement that he purchased the firearm, which was missing its serial number, for approximately $300. Winslow said he had a gun because he was a member of a gang, specifically the Bloods. He also admitted to selling marijuana.
According to court documents, Winslow was convicted in Rhode Island state court in May 2017 on a felony charge of carrying a pistol without a license. Court records indicate that Winslow was arrested again on January 10, 2018, for violating the terms of his probation when, among other things, he committed simple assault and resisted arrest after a fight involving rival gang members at the Garrahy Judicial Complex in Providence. On May 1, 2018, he was convicted of simple assault and resisting arrest and sentenced to 10 months incarceration at the ACI.
Winslow is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on January 30, 2020.
Felon in possession of a firearm is punishable by statutory penalties of up to 10 years imprisonment and a term of supervised release of 3 years. Possession of a firearm in furtherance of drug trafficking is punishable by up to life imprisonment with a mandatory 5-year term of incarceration consecutive to any other sentence imposed in this matter and a term of supervised release of 5 years. Possession with intent to distribute marijuana is punishable by up to 5 years imprisonment and a term of supervised release of no less than 2 years.
This Project Safe Neighborhoods case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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13 convicted in $189 million Medicare kickback schemeRead the Press Release
HOUSTON – With the plea of a 46-year-old Houston man, 13 people now stand convicted in the healthcare scam involving Continuum Healthcare and its various health centers in the Houston area, announced U.S. Attorney Ryan K. Patrick.
Steven Houseworth admitted to conspiring to pay and receive kickbacks relating to the Medicare program today.
A total of 12 others have been convicted in relation to the scheme. A federal jury convicted Cheryl Waller, 73, of Houston, March 2, 2017, after a three-day trial on one count of conspiracy to pay and receive kickbacks and one count of receiving kickbacks. Those all convicted on the conspiracy count include James Bobino, 50, Ernestine Johnson, 60, Jackie Harris, 56, and Vermon Lacy III, 35, all of Houston; David Edson, 71, Palm Harbor, Florida; Jeffery Parsons, 60, Crockett; Aretha Johnson, 67, Wimberley; Inger Michelle Pace, 57, Missouri City; Ronald Turner, 59, Fresno; Deborah Davis, 56, Atlanta, Georgia; and Mary Browning, 71, Beasley. Edson and Parsons were also convicted of two counts of money laundering. Johnson also pleaded guilty to one count of money laundering, while Pace and Turner each further admitted to paying and receiving kickbacks.
Houseworth, Edson and Parsons were part of the executive team for Continuum Healthcare LLC, which owned Westbury Community Hospital in Houston as well as community mental health centers in the Houston area known by their locations as Hornwood, Baytown and Missouri City.
During his plea today, Houseworth admitted to participating in a kickback scheme to pay co-defendants to bring patients to Continuum. He admitted to causing Medicare to pay $1.5 million based on false and fraudulent claims.
Each location operated a partial hospitalization program (PHP). The PHP was supposed to be a treatment program for individuals with mental illness, intended to closely resemble a highly structured, short-term hospital inpatient program. However, while it was a distinct and organized intensive treatment program, it offered less than 24-hour daily care.
In 2010, Continuum opened Westbury Community Hospital with Hornwood and Baytown becoming outpatient centers, continuing to operate their existing PHPs under the Westbury name. Westbury also opened a PHP.
Houseworth, Edson and Parsons were responsible for the day-to-day operation of Continuum/Westbury and were involved in the implementation of the various kickback programs. Numerous people were referred for treatment in exchange for payment. However, the vast majority did not qualify for PHP services, because they were not experiencing an acute psychotic episode or were actually suffering from mental retardation, dementia or Alzheimer’s.
Aretha Johnson, Pace, Bobino, Waller, Browning and Davis each owned personal care homes in Houston, while Ernestine Johnson, Harris, Lacy and Turner were marketers for Continuum. Each admitted receiving payment to refer the patients, receiving amounts ranging from $130,000 t0 $2.6 million each.
In total, Continuum billed Medicare approximately $189 million in total for fraudulent PHP services and Medicaid paid approximately $66 million on those clams.
U.S. District Judge Gray Miller accepted the plea and has set sentencing for Jan. 23, 2020, at which time Houseworth faces up to five years in prison and a possible $250,000 maximum fine. Housworth was permitted to remain on bond pending that hearing.
The FBI, Department of Health and Human Services - Office of the Inspector General, Texas Attorney General's Medicaid Fraud Control Unit and IRS - Criminal Investigation participated in the joint investigation. Assistant U.S. Attorneys Tina Ansari and Special Assistant U.S. Attorney Justin Blan are prosecuting the case.
13 Members and Associates of Mac Baller Brims Charged with Racketeering, Narcotics, and Firearms OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, James O’Neill, the Commissioner of the New York City Police Department (“NYPD”), and Peter C. Fitzhugh, Special Agent-in-Charge of the New York Field Office of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), today announced the unsealing of an Indictment charging 13 members and associates of the Mac Baller Brims gang that operated in and around the Mount Hope section of the Bronx with racketeering, narcotics, and firearms offenses, including five attempted murders between September 2018 and July 2019.
Of the 13 defendants, eight – DERRICK CASADO, a/k/a “Big Bank,” a/k/a “Papa D,” JUSTIN COLON, a/k/a “Lindo,” MICHAEL ROWE, a/k/a “MJ,” CARLOS RIVERA, a/k/a “Nug,” JAHUAN POLLARD, a/k/a “Flip,” CARLOS ROSARIO, a/k/a “Baby Bottle,” a/k/a “Carlito,” a/k/a “Barlito,” a/k/a “Barlos,” JUAN TEJADA, a/k/a “Gotti,” and CHRISTIAN LIVERMAN – were taken into federal custody in New York earlier today. They were presented before Magistrate Judge Debra Freeman today. Defendant DAVON MCCULLOUGH, a/k/a “Yung,” a/k/a “Dayday,” was also taken into federal custody in Virginia earlier today, and he was to be presented before Magistrate Judge Lawrence R. Leonard today. Two other defendants – DARRELL LAWRENCE, a/k/a “Capo,” and GIBRIL DARBOE, a/k/a “Mouse,” a/k/a “G Money” – are currently in state custody in Maine on related charges and will be presented in the District of Maine on a later date. The case has been assigned to U.S. District Judge J. Paul Oetken.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, the defendants wreaked havoc on the Mount Hope section of the Bronx, through acts of violence and narcotics trafficking as members of the Mac Baller Brims. Thanks to the outstanding work of our law enforcement partners at the NYPD, HSI, and DEA, the defendants now face federal charges for these very serious crimes.”
Police Commissioner James O’Neill said: “This case highlights the NYPD’s relentless pursuit of those few individuals who drive the worst kinds of violence and disorder. Our success reflects how New Yorkers share in our responsibility to keep families and neighborhoods safe to aid us in reducing crime beyond our record-lows. I want to commend our partners in the U.S. Attorney’s Office for the Southern District, and the members of Homeland Security Investigations, and the DEA, for working together to dismantle a group allegedly responsible for shootings, robberies, drug-dealing, and more.”
HSI Special Agent-in-Charge Peter C. Fitzhugh said: “This investigation exemplifies law enforcement partnerships prevailing over a criminal enterprise only looking to benefit from chaos. HSI will not back down and will not stop our fight to secure our communities and our nation from violence and narcotics distribution. Criminal organizations like the Mac Baller Brims should take note that combined law enforcement efforts like this investigation with HSI, the NYPD and DEA along with the United States Attorney’s Office in the Southern District of New York only thrive our resolve to end their existence and eliminate any financial gains they hope to profit.”
According to the allegations in the Indictment unsealed today in Manhattan federal court[1]:
The Mac Baller Brims were a criminal enterprise, and their members and associates committed numerous acts of violence, including shootings, in and around the Bronx. They engaged in such acts to preserve and protect their power, territory, and profits, and to promote and enhance the gang and its criminal activities. Members of the gang also enriched themselves by committing robberies and by selling drugs, such as crack cocaine, heroin, fentanyl, cocaine, oxycodone, and marijuana, including in New York and in Maine. While conducting their drug business, members and associates of the gang used, carried, and possessed firearms, and members of the gang brandished and fired those guns on multiple occasions since 2017.
Count One of the Indictment charges DARRELL LAWRENCE, DAVON MCCULLOUGH, GIBRIL DARBOE, DERRICK CASADO, JUSTIN COLON, MICHAEL ROWE, CARLOS RIVERA, JAHUAN POLLARD, CARLOS ROSARIO, DAVONTE GARCIA, and JOSE NOUEL with conspiring to conduct and participate in the conduct and affairs of the Mac Ballers enterprise through a pattern of racketeering activity, including through acts involving murder, robbery, and narcotics distribution.
Counts Two and Three charge ROWE with assault and attempted murder in aid of racketeering in connection with a September 14, 2018, shooting, and a related firearms offense.
Counts Four and Five charge COLON with assault and attempted murder in aid of racketeering in connection with a March 9, 2019, shooting, and a related firearms offense.
Counts Six and Seven charge CASADO with assault and attempted murder in aid of racketeering in connection with a May 17, 2019, shooting, and a related firearms offense.
Counts Eight and Nine charge ROSARIO with assault and attempted murder in aid of racketeering in connection with a July 18, 2019, attempted shooting, and a related firearms offense.
Counts Ten and Eleven charge ROSARIO with assault and attempted murder in aid of racketeering in connection with a July 20, 2019, shooting, and a related firearms offense.
Count Twelve charges LAWRENCE, MCCULLOUGH, DARBOE, CASADO, COLON, ROWE, RIVERA, POLLARD, ROSARIO, GARCIA, and NOUEL, as well as JUAN TEJADA and CHRISTIAN LIVERMAN, with conspiring to distribute and possess with intent to distribute crack cocaine, heroin, fentanyl, cocaine, oxycodone, and marijuana.
Count Thirteen charges LAWRENCE, MCCULLOUGH, DARBOE, CASADO, COLON, ROWE, RIVERA, POLLARD, ROSARIO, GARCIA, NOUEL, TEJADA and LIVERMAN with using, carrying, possessing, brandishing, and discharging firearms during and in relation to a narcotics conspiracy.
* * *
Charts containing the names, ages, residences, charges, and maximum penalties for the defendants are set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding work of the NYPD and HSI on this investigation, and thanked the Drug Enforcement Administration for its assistance.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Frank Balsamello and Jamie Bagliebter are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
COUNT
CHARGE
DEFENDANTS
MAX. PENALTIES
1
Racketeering conspiracy
18 U.S.C. § 1962(d)
DARRELL LAWRENCE
DAVON MCCULLOUGH
GIBRIL DARBOE
DERRICK CASADO
JUSTIN COLON
MICHAEL ROWE
CARLOS RIVERA
JAHUAN POLLARD
CARLOS ROSARIO
DAVONTE GARCIA
JOSE NOUEL
Life in prison
2
Assault and attempted murder in aid of racketeering
18 U.S.C. §§ 1959 and 2
MICHAEL ROWE
20 years in prison
3
Using, carrying, possessing, brandishing, and discharging a firearm
18 U.S.C.
§§ 924(c)(1)(A)(i), (ii), (iii), and 2MICHAEL ROWE
Life in prison
Mandatory minimum of 10 years in prison
4
Assault and attempted murder in aid of racketeering
18 U.S.C. §§ 1959 and 2
JUSTIN COLON
20 years in prison
5
Using, carrying, possessing, brandishing, and discharging a firearm
18 U.S.C.
§§ 924(c)(1)(A)(i), (ii), (iii), and 2JUSTIN COLON
Life in prison
Mandatory minimum of 10 years in prison
6
Assault and attempted murder in aid of racketeering
18 U.S.C. §§ 1959 and 2
DERRICK CASADO
20 years in prison
7
Using, carrying, possessing, brandishing, and discharging a firearm
18 U.S.C.
§§ 924(c)(1)(A)(i), (ii), (iii), and 2DERRICK CASADO
Life in prison
Mandatory minimum of 10 years in prison
8
Assault and attempted murder in aid of racketeering
18 U.S.C. §§ 1959 and 2
CARLOS ROSARIO
20 years in prison
9
Using, carrying, possessing, and brandishing a firearm
18 U.S.C.
§§ 924(c)(1)(A)(i), (ii), and 2CARLOS ROSARIO
Life in prison
Mandatory minimum of 7 years in prison
10
Assault and attempted murder in aid of racketeering
18 U.S.C. §§ 1959 and 2
CARLOS ROSARIO
20 years in prison
11
Using, carrying, possessing, brandishing, and discharging a firearm
18 U.S.C.
§§ 924(c)(1)(A)(i), (ii), (iii), and 2CARLOS ROSARIO
Life in prison
Mandatory minimum of 10 years in prison
12
Narcotics conspiracy
21 U.S.C. § 846
DARRELL LAWRENCE
DAVON MCCULLOUGH
GIBRIL DARBOE
DERRICK CASADO
JUSTIN COLON
MICHAEL ROWE
CARLOS RIVERA
JAHUAN POLLARD
CARLOS ROSARIO
DAVONTE GARCIA
JOSE NOUEL
JUAN TEJADA
CHRISTIAN LIVERMAN
Life in prison
Mandatory minimum of 10 years in prison
13
Using, carrying, possessing, brandishing, and discharging firearms
18 U.S.C.
§§ 924(c)(1)(A)(i), (ii), (iii), and 2DARRELL LAWRENCE
DAVON MCCULLOUGH
GIBRIL DARBOE
DERRICK CASADO
JUSTIN COLON
MICHAEL ROWE
CARLOS RIVERA
JAHUAN POLLARD
CARLOS ROSARIO
DAVONTE GARCIA
JOSE NOUEL
JUAN TEJADA
CHRISTIAN LIVERMAN
Life in prison
Mandatory minimum of 10 years in prison
DEFENDANT
AGE
RESIDENCE
DARRELL LAWRENCE, a/k/a “Capo”
29
Bronx, New York
DAVON MCCULLOUGH, a/k/a “Yung,” a/k/a “Dayday”
32
Newport News, Virginia
GIBRIL DARBOE, a/k/a “Mouse,” a/k/a “G Money”
22
Bronx, New York
DERRICK CASADO, a/k/a “Big Bank,” a/k/a “Papa D”
19
Bronx, New York
JUSTIN COLON, a/k/a “Lindo”
20
Bronx, New York
MICHAEL ROWE, a/k/a “MJ”
19
Bronx, New York
CARLOS RIVERA, a/k/a “Nug”
18
Bronx, New York
JAHUAN POLLARD, a/k/a “Flip”
18
Bronx, New York
CARLOS ROSARIO, a/k/a “Baby Bottle,” a/k/a “Carlito,” a/k/a “Barlito,” a/k/a “Barlos”
18
Bronx, New York
DAVONTE GARCIA, a/k/a “VT”
22
Bronx, New York
JOSE NOUEL, a/k/a “Tutu”
22
Bronx, New York
JUAN TEJADA, a/k/a “Gotti”
19
Bronx, New York
CHRISTIAN LIVERMAN
27
Bronx, New York
23 October 2019
Wichita Pharmacist Gets 12.5 Years for Unlawfully Distributing Rx DrugsRead the Press Release
WICHITA, KAN. – A Wichita-area pharmacist was sentenced today to 150 months in federal prison for unlawfully dispensing opioid prescription drugs, U.S. Attorney Stephen McAllister said.
Ebube Otuonye, 47, Bel Aire, Kan., was convicted on charges of conspiracy to unlawfully distribute prescription drugs, unlawfully distributing prescription drugs and health care fraud.
The crimes occurred while Otuonye owned and operated Neighborhood Pharmacy at 2810 E. 21st in Wichita, where he filled prescriptions for patients of Dr. Steven R. Henson. In October 2018, Henson was convicted of unlawfully distributing prescription drugs outside the usual course of professional medical practice and without a legitimate medical purpose. In March 2019, Henson was sentenced to life in federal prison.
During trial in July, prosecutors presented evidence that Henson’s patients had difficulty filling Henson’s prescriptions at pharmacies other than Neighborhood Pharmacy. Otuonye’s pharmacy charged more than other pharmacies and he set up a system requiring Henson’s patients to fill three non-narcotic prescriptions when filling a narcotic prescription.
A sign in the pharmacy said: “You may use another pharmacy if all you want to fill is (a) narcotic prescription.”
Evidence at trial showed Henson’s patients took their prescriptions to Otuonye himself because another pharmacist at Neighborhood Pharmacy refused to fill them. Prosecutors argued that Otuonye failed to perform his professional responsibilities by continuing to fill prescriptions for Henson’s patients despite warning signs including: Large numbers of prescriptions for highly addictive drugs, customers paying cash, multiple patients coming in at once with Henson’s prescriptions and patients from the same family presenting identical prescriptions.
Otuonye filled prescriptions for more than 21,600 tablets of oxycodone, more than 48,600 tablets of methadone, more than 18,000 tablets of hydromorphone and more than7,800 tablets of alprazolam.
Prosecutors also presented evidence that Otuonye submitted claims to Medicare and Medicaid for filling Henson’s prescriptions.
McAllister commended the Drug Enforcement Administration, the Johnson County Sheriff’s Office, the Lee’s Summit, Mo., Police Department, the Overland Park Police Department, the U.S. Department of Health and Human Services, the Kansas Board of Pharmacy, the Heart of America Regional Computer Forensics Laboratory, the Newton Police Department, the Wichita Police Department, Assistant U.S. Attorney Mona Furst, Assistant U.S. Attorney Jason Hart, and Special Assistant U.S. Attorney Katherine Andrusak for their work on the case.
Westminster Woman Sentenced for Stealing Social Security BenefitsRead the Press Release
BOSTON – A Westminster woman was sentenced today in federal court in Worcester for stealing Social Security benefits.
Theresa Kenda Benedict, 56, was sentenced by U.S. District Court Judge Timothy Hillman to six months of home confinement, two years of probation and ordered to pay restitution of $46,310. In May 2019, Benedict pleaded guilty to one count of theft of public funds and four counts of making false statements. Benedict was arrested and charged in June 2018.
Benedict served as the representative payee for a disabled individual who was receiving Social Security benefits. In 2013, 2014, 2015, and 2016, Benedict informed the Social Security Administration that she used all of the money she received as a representative payee for the beneficiary. In fact, Benedict had used some of the money for her own expenses. Between December 2007 and March 2016, Benedict stole approximately $46,310.36 in Social Security benefits intended for the disabled individual.
United States Attorney Andrew E. Lelling and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit prosecuted the case.
Washington Resident Pleads Guilty to Filing a False Tax Return That Failed to Report over $1 Million Held in Offshore Swiss Bank AccountRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that John Thomas Blandi, age 74, of Spokane, Washington, pleaded guilty to filing a false tax return with the Internal Revenue Service (“IRS”) that failed to report over $1 million in income earned in a foreign investment account.
According to court documents, Blandi, a U.S. citizen, held $5,221,514 in an offshore account in Switzerland. The offshore account generated $1,430,000 in income that Blandi did not report on his 2013 income tax return. As a result, Blandi underreported his 2013 tax liability by $598,700.
Blandi maintained the unreported income in an offshore Swiss “insurance wrapper” policy. An “insurance wrapper” policy was an insurance product offered by Swiss and other insurance companies and asset managers primarily to U.S. citizens to allow for asset protection and global investment benefits that was also used by some citizens to evade U.S. taxes. Insurance wrapper policies were private placement life insurance or annuity accounts that combined the benefits of insurance with those of private banking by funding a life insurance policy or annuity policy with investment assets of the client. In many instances, the product would not qualify for treatment as life insurance under United States law. The offshore insurance company would maintain the policy assets in an offshore bank account in the name of the insurance company, rather than the U.S. citizen, while the U.S. citizen still maintained a level of control over the assets and how they were invested. Blandi had an obligation to report this offshore financial account to the IRS on his tax return. He did not.
Blandi’s insurance wrapper policy involved a Swiss-based External Asset Manager (“EAM”) who implemented the investment strategy Blandi desired and managed the assets in a custodial offshore bank account. Blandi communicated with the EAM regarding his offhsore investments, and expressed concerns about creating reportable events that would result in the United States authorities being notified about his offshore account.
Blandi also concealed his foreign financial account and foreign income from the tax professional who prepared his 2013 income tax return. Blandi’s tax return falsely claimed that he did not have a financial interest in or signature authority over a foreign financial account.
United States Attorney Hyslop said, “As he admitted, John Blandi tried to conceal over $1 million in income in an offhsore bank account from the IRS. Today’s plea is a reminder that the United States Attorney’s Office for the Eastern District of Washington continues to work with the IRS to investigate and prosecute individuals who may use off shore accounts to engage in conduct violating U.S. tax laws. I commend the outstanding and dedicated work of the IRS Criminal Investigation special agents who worked on this matter.”
“Placing unreported income in an offshore account is not tax planning, it’s tax evasion,” said IRS-Criminal Investigation’s Special Agent in Charge Justin Campbell. “IRS-Criminal Investigation has been very open about our aggressive efforts to combat offshore tax fraud schemes. We will investigate and seek prosecution of taxpayers who are concealing unreported income in offshore accounts in an attempt to evade their tax obligations.”
Blandi faces a maximum sentence of three years in federal prison, a one-year term of supervised release, restitution and monetary penalties. Senior United States District Judge Wm. Fremming Nielsen set Blandi’s sentencing for January 21, 2020.
This case was investigated by the Internal Revenue Service, Criminal Investigation. This case was prosecuted by George J.C. Jacobs, III, Assistant United States Attorney for the Eastern District of Washington.
Ware Man Pleads Guilty to Sexual Exploitation ChargesRead the Press Release
BOSTON – A Ware man pleaded guilty today in federal court in Springfield after being charged with sexual exploitation charges.
Walter Brown, 74, pleaded guilty to one count of conspiracy to commit sexual exploitation of a child, two counts of sexual exploitation of a child, one count of conspiracy to commit sex trafficking and two counts of sex trafficking. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Jan. 22, 2020. Brown was arrested on July 14, 2017, and has been detained since that time.
On Oct 11, 2019, co-defendant Claire Poole was sentenced to 125 months in prison after pleading guilty to conspiracy to commit sex trafficking and two counts of sex trafficking.
Poole moved to the Springfield area in early 2017 and later helped co-defendant Walter Brown have sex with a teenage girl. Brown induced the girl to provide pornographic videos and to have sex with him on two occasions by paying her money. Poole acted as a go-between, first by conveying Brown’s initial offer to the girl and then by relaying Brown’s messages to the victim, which included negotiations about what Brown would pay. Poole also provided a cell phone to produce the pornographic videos, and Poole transported the minor to Brown’s house in Ware for sex on two occasions.
The sex trafficking charges provide for a minimum mandatory sentence of 10 years and up to a lifetime in prison, a minimum of five years and up to a lifetime of supervised release and a fine of $250,000. The charges of sexual exploitation of a child provide for a minimum mandatory sentence of 15 years and up to 30 years in prison, a minimum of five years and up to a lifetime of supervised release and a fine of $250,000. Sentences are imposed by a federal district judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Ware Police Chief Shawn Crevier; Monson Police Chief Stephen Kozloski; and Amherst Police Chief Scott Livingstone made the announcement today. Assistant U.S. Attorney Alex J. Grant of Lelling’s Springfield Branch Office is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Wagoner Man Pleads Guilty to ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Robert Leroy Dennington, age 36, of Wagoner, Oklahoma, entered a guilty plea to Conspiracy, in violation of Title 18, United States Code, Section 371, punishable by not more than 5 years imprisonment, a fine up to $250,000.00, or both.
The Indictment alleges that beginning on or about April 12, 2019, and continuing until on or about April 13, 2019, in the Eastern District of Oklahoma, the defendant did knowingly and intentionally conspire, confederate and agree with others both known and unknown to the grand jury, to commit offenses against the United States in violation of Title 18, United States Code, Section 472, namely, Uttering Counterfeit Obligations of the United States.
The charges arose from an investigation by the Wagoner Police Department and the United States Secret Service.
The Honorable Steven P. Shreder, U.S. 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.
Assistant United States Attorney Clay Compton represented the United States.
Upstate New York Contractors Combine to Pay More than $1 Million to Resolve False Claims Act InvestigationRead the Press Release
SYRACUSE, NEW YORK – Upstate Construction Services, LLC (Upstate) and Structural Associates, Inc. (Structural) have agreed to pay more than $1 million in total to resolve allegations that they improperly obtained government contracts set-aside for companies qualified as historically underutilized business zone (HUBZone) firms, announced United States Attorney Grant C. Jaquith.
The United States occasionally utilizes government contracting to promote small businesses, including firms that qualify as HUBZone entities. To be eligible for these contracts, a firm must qualify as a small business, have its principal office located in a HUBZone, and have a certain percentage of employees live in a HUBZone.
The settlements resolve allegations that Upstate (which was a qualified HUBZone entity) and Structural (which was not) entered into a set of agreements – including two Silent Joint Venture Agreements – that were not disclosed to the government. The agreements enabled Upstate to obtain bonding on jobs that it otherwise would not have been able to obtain, and in exchange Structural (which could not have bid on the jobs itself or as part of a joint venture with Upstate) received approximately half of Upstate’s profits on government contracts worth millions of dollars.
United States Attorney Grant C. Jaquith said: “Openness and integrity are critical to the fair and effective implementation of federal contracting assistance programs, including programs designed to help small businesses from economically distressed communities. Secret agreements between firms to share profits on government contracts undermine the integrity of these programs, which we will continue to protect by persistently pursuing these cases with our investigative partners.”
“The settlement agreement announced today is the successful resolution of a joint investigation conducted by the Defense Criminal Investigative Service (DCIS), the U.S. Army Criminal Investigation Command and the U.S. Attorney’s Office, Northern District of New York,” stated Leigh-Alistair Barzey, Special Agent-in-Charge, DCIS Northeast Field Office. “The integrity of the U.S. Department of Defense procurement process is of vital importance and is a DCIS investigative priority. The DCIS will continue to work with its law enforcement partners to hold Defense Contractors accountable and ensure that quality products and services are provided to the U.S. military in compliance with contractual requirements.”
The investigation and settlement were the result of a coordinated effort among the U.S. Attorney’s Office for the Northern District of New York, the Defense Criminal Investigative Service, and the United States Army Criminal Investigation Command. The United States was represented by Assistant U.S. Attorney Michael D. Gadarian.
United States Seeks Forfeiture of Real Estate in Mexico Purchased by Cartel Leader Rafael Caro Quintero with Proceeds of His Drug Trafficking OrganizationRead the Press Release
A civil complaint against eight real properties located in and around Guadalajara, Mexico was unsealed today in federal court in Brooklyn. The properties described in the complaint are alleged to have been purchased by Rafael Caro Quintero with drug proceeds obtained through his leadership of the Caro Quintero drug trafficking organization, a faction of the Mexican organized crime syndicate known as the Sinaloa Cartel.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), announced the complaint.
“Today’s efforts to seize properties Caro Quintero purchased with blood money reaped from the drug trafficking, addiction and violence he sowed in the United States and Mexico is just the latest step in our pursuit of justice,” stated United States Attorney Donoghue. “We will never forget that Caro Quintero is responsible for the murder of Special Agent Camarena and he now faces a stark choice between the only available endings - an American prison or a Mexican grave, and now is the time to choose.” Mr. Donoghue extended his grateful appreciation to the DEA New York Division Organized Crime and Drug Enforcement Strike Force, as well as the DEA Raleigh Resident Office and DEA Mexico City Country Office for their assistance with the case.
“The atrocities of Rafael Caro Quintero are not forgotten, and the history of the terror that he has inflicted serves as a constant reminder to the DEA that we will never stop the pursuit for justice,” stated DEA Special Agent-in-Charge Donovan. “We are proud to show the world, with the unsealing of this civil complaint, that DEA’s commitment to uncover Caro Quintero’s infrastructure and criminal associates is unwavering. DEA will never forget. We will not relent.”
According to the forfeiture complaint, between January 1980 and March 2015, the Caro Quintero drug trafficking organization was involved in the transportation of multi-ton quantities of marijuana, multi-kilogram quantities of methamphetamine and multi-kilogram quantities of cocaine from Mexico to the United States. As part of its investigation, law enforcement learned that Caro Quintero used proceeds from the sale of illegal narcotics to purchase real estate in and around his home area of Guadalajara. Caro Quintero allegedly placed the properties in the names of family members to conceal his ownership of the properties and use of illegal proceeds to purchase them, and to prevent Mexican authorities from seizing them.
Caro Quintero is a fugitive from several indictments in the United States, and is on the FBI’s list of “Ten Most Wanted” criminals. In April 2018, an indictment was unsealed in federal court in Brooklyn charging Caro Quintero with leading a continuing criminal enterprise and other crimes, including his participation in the 1985 kidnapping, torture and murder of DEA Special Agent Enrique “Kiki” Camarena. A $20 million reward provided by the United States Department of State is being offered for information leading to his capture.
The government’s case is being prosecuted by Assistant United States Attorney Brendan G. King of the Office’s Asset Forfeiture Unit, and Gina M. Parlovecchio, Michael P. Robotti, Erin Reid and Patricia E. Notopoulos of the Office’s International Narcotics and Money Laundering Section.
E.D.N.Y. Docket No. 19-CV-5748 (ENV)
United States Files Lawsuit Against State of California for Unlawful Cap and Trade Agreement with the Canadian Province of QuebecRead the Press Release
The United States today filed a civil complaint against the state of California, several of its officers, the California Air Resources Board, and the Western Climate Initiative Inc., for unlawfully entering a cap and trade agreement with the Canadian Province of Quebec.
“The state of California has veered outside of its proper constitutional lane to enter into an international emissions agreement. The power to enter into such agreements is reserved to the federal government, which must be able to speak with one voice in the area of U.S. foreign policy,” said Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Environment and Natural Resources Division. “California’s unlawful cap-and-trade agreement with Quebec undermines the President’s ability to negotiate competitive agreements with other nations, as the President sees fit.”
The Supreme Court has recognized that the interests of cities, counties and states, and the American people as a whole, requires the federal power in foreign relations to be reposed exclusively in the federal government, keeping it free from local interference.
According to the complaint, filed today in the Eastern District of California, the defendants have pursued or are attempting to pursue an independent foreign policy in the area of greenhouse gas regulation. The Constitution prohibits states from making treaties or compacts with foreign powers, yet California entered into a complex, integrated cap-and-trade program with the Canadian province of Quebec in 2013 without congressional approval.
California’s agreement with Quebec, which the Western Climate Initiative facilitates (and where the Western Climate Initiative’s board is run by California and Quebec governmental actors), interferes with the proper execution of these federal responsibilities. Accordingly, today’s complaint asks the court to uphold the exclusive role of the federal government in conducting our foreign policy by declaring the agreement — and related statutes and regulations —unconstitutional, and enjoining their operation.
United States Attorney’s Office, Inter-Religious Council of Linn County, and Cedar Rapids Civil Rights Commission Host Forum on Protecting Places of WorshipRead the Press Release
CEDAR RAPIDS, IA –United States Attorney Peter E. Deegan, Jr., the Inter-Religious Council of Linn County, and the Cedar Rapids Civil Rights Commission hosted a community forum on October 22, 2019, focused on protecting places of worship. Leaders of the interfaith community, representatives of houses of worship, and other community stakeholders and members attended. They discussed hate crime laws, identifying and reporting hate crimes, and best practices for creating safe and secure houses of worship.
Speakers and panelists included law enforcement officials from the FBI, U.S. Dept. of Homeland Security, United States Attorney’s Office for the Northern District of Iowa, Linn County Attorney’s Office, the Cedar Rapids Police Department, and the Linn County Sherriff’s Office. A second panel of community faith leaders was moderated by Ms. Sarika Bhatka and included panelists Rev. Dr. Sherri Ilg, Krishna Iyer, Rev. Leoma Leigh-Williams, Imam Hassan Selim, and Rabbi Todd Thalblum.
United States Attorney Deegan expressed appreciation to the agencies involved and the community members attending for their willingness to discuss issues that communities across the state and country encounter. No one in our community should feel threatened because of his or her religion, and everyone should feel safe when going to their chosen house of worship,” said Deegan. “All of these organizations and people coming together shows that Iowans want to be proactive when it comes to keeping our communities safe.”
“The FBI is tasked with defending civil rights in the United States, and the Constitution guarantees that everyone in the United States has freedom to practice their own religion,” said Special-Agent-in-Charge Kristi Johnson of the Omaha Field Division of the FBI. “No one deserves to live in fear because of how they choose to worship.”
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Two southern district of Ohio attorneys recognized as part of national attorney general's awardsRead the Press Release
WASHINGTON – United States Attorney General William P. Barr recognized two attorneys from the Southern District of Ohio as part of the 67th Annual Attorney General’s Awards Ceremony today.
Deputy Criminal Chief Brenda S. Shoemaker and Assistant United States Attorney Andrew M. Malek were two of 11 individuals to receive the Attorney General’s Award for Distinguished Service, the second highest award for employee performance.
Shoemaker and Malek were part of the team that played a key role in targeting South Korean oil companies that rigged bids and defrauded the U.S. Department of Defense.
Throughout the course of a conspiracy that lasted more than a decade, five South Korean oil companies conspired to raise the price of key contracts that provided fuel on U.S. military bases in South Korea.
The team obtained guilty pleas from five companies and criminal fines, civil penalties and damages to the United States totaling more than $350 million.
“Andy Malek and Brenda Shoemaker are fantastic AUSAs, and this recognition is well warranted. Working together with the Antitrust and Civil Divisions of the Department of Justice and with our law enforcement partners, AUSAs Malek and Shoemaker have demonstrated our ability and resolve to reach around the world to hold accountable those who defraud the United States military. I’m proud of their work,” U.S. Attorney Glassman said.
In total, 295 department employees were recognized for their distinguished public service. Sixty-two other individuals outside of the department were also honored for their work.
This year’s program honors individuals across the department and our federal, state, local, and tribal partners for their self-less efforts, protecting our national security and our civil rights, addressing rising violent crime in our communities, going after gangs and those trafficking in dangerous narcotics and human beings. The awards also honor the work of civil and environmental litigation, which enforces the rule of law and upholds our Constitution. They also recognize employees whose ideas and efforts save taxpayer dollars and help our government operate more effectively and efficiently, among other contributions to public safety and good governance.
The annual ceremony recognizes employees and other individuals who have demonstrated exceptional achievements, leadership, and service to the Department of Justice and the American people.
“Our greatest strength in our fight for justice is our people – the thousands of men and women who have dedicated their careers, often at great personal sacrifice, to working for justice in America,” said Attorney General William P. Barr. “As we reflect on the contributions of each of the 357 individuals we honor today, we should hold them up as examples of excellence that continue to inspire our own commitment, and also as reminders of the professionalism and the qualities exhibited throughout the Department.”
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Two New York Men Charged with Fentanyl TraffickingRead the Press Release
BOSTON – Two New York City men were arrested on Monday, Oct. 21, 2019, and charged with drug trafficking in federal court in Boston.
James De La Cruz, 28, and Juan Santos Roque, 46, were charged with conspiracy to distribute and possession with intent to distribute more than 400 grams of fentanyl. The defendants were arrested in Peabody, Mass., and remain in federal custody pending a detention hearing.
It is alleged that De La Cruz spoke with a cooperating witness several times in September and October 2019, and met with the cooperating witness to arrange a large drug shipment from New York to the Boston area. On Oct. 21, 2019, De La Cruz and Santos Roque drove from New York to Peabody, Mass. with approximately 10 kilograms of suspected fentanyl and six kilograms of suspected heroin in a hidden compartment in Santos Roque’s vehicle. After meeting with the cooperating witness, law enforcement agents arrested both men.
The charge of conspiracy to distribute more than 400 grams of fentanyl carries a mandatory minimum sentence of 10 years in prison and up to life in prison, at least five years of supervised release and a maximum fine of $10 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 and Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Valuable assistance was provided by the Federal Bureau of Investigation, Boston Field Division; the Drug Enforcement Administration, New England Field Division; the Massachusetts State Police; the Massachusetts Attorney General’s Office; and the Dartmouth and Peabody Police Departments. Assistant U.S. Attorney Stephen W. Hassink of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Individuals Sentenced for Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Ronnie Anthony Martinez, age 42, of Fresno, California, was sentenced to 152 months’ imprisonment and 5 years of supervised release; and Charles Dewey Sellers III, age 44, of Atlanta, Georgia, was sentenced to 241 months’ imprisonment and 5 years of supervised release for Drug Conspiracy, in violation of Title 21, United States Code, Sections 846, 841(a)(1) and 841(b)(1)(A). The charges arose from an investigation by the Sequoyah County Sherriff’s Office, the Drug Enforcement Administration (“DEA”) McAlester Resident Office, the DEA Fresno Enforcement Group 1, the DEA Atlanta HIDTA Group 1, the Georgia Bureau of Investigations, and the Oklahoma District 18 Drug Task Force.
The Superseding Indictment alleged that beginning in or about November 2017, and continuing until on or about June 26, 2018, within the Eastern District of Oklahoma and elsewhere, the defendants, Charles Dewey Sellers, III, and Ronnie Anthony Martinez willfully and knowingly combined, conspired, confederated and agreed with others known and unknown to the Grand Jury, to commit offenses against the United States in violation of Title 21, United States Code, Section 846 as follows: to possess with intent to distribute and to distribute 50 grams or more of methamphetamine (actual), a Schedule II controlled substance.
United States Attorney Brian J. Kuester said, “This investigation was led by agents in the DEA McAlester Resident Office and began as a result of information obtained by the Sequoyah County Sheriff’s Office. That information led investigators to numerous states and required assistance from other DEA offices and state and local agencies. Because of this team effort by agents and prosecutors in this office, a drug trafficking organization that had been distributing methamphetamine across several states has had its operations disrupted and its members are being held accountable.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearings. Assistant United States Attorney Shannon Henson represented the United States.Two Everett Men Charged with Money Laundering ConspiracyRead the Press Release
BOSTON – Two Everett men were indicted yesterday in connection with their role in a money laundering conspiracy.
Lindsley J. Georges, 27, and Dave Guillaume, 24, were indicted on one count of conspiracy to commit money laundering. The defendants were previously charged by criminal complaint in July 2019.
According to the indictment, in December 2017 and January 2018, customer accounts at Santander Bank and TD Bank were compromised and more than $900,000 fraudulent withdrawals were used to purchase bank checks in the names of several entities. Georges and Guillaume deposited the fraudulently obtained bank checks to business accounts they opened at TD Bank and Bank of America, after which they made substantial withdrawals of cash and checks. Guillaume allegedly opened two of the business accounts using false names, as well as a fraudulent driver’s license.
The charge of money laundering conspiracy provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $500,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement. Assistant U.S. Attorneys Leslie A. Wright and Mark J. Balthazard of Lelling’s Securities and Financial Fraud Unit are prosecuting the cases.
The details contained in charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Tulsa Man Sentenced for Stealing $426, 220 from his EmployerRead the Press Release
A former American Parking employee was sentenced today in U.S. District Court for defrauding BancFirst and his employer of $426,220.36, announced U.S. Attorney Trent Shores.
U.S. District Judge Claire V. Eagan sentenced Jerry Albert Wiley, 70, of Tulsa, to 24 months in federal prison to be followed by three years of supervised release. Judge Eagan further ordered restitution be paid to American Parking in the amount of $426, 220.32.
“White collar criminals can devastate small business owners who are vital contributors to our local economy,” said U.S. Attorney Trent Shores. “In this case, Defendant Wiley fraudulently stole nearly half a million dollars from his employer, American Parking. What he is learning now is that there are serious consequences for his greed fueled criminal acts.”
In his position as controller at American Parking, Wiley directed authorized funds transfers related to business expenses from the company’s corporate checking account at BancFirst. Starting Jan. 5, 2018, Wiley knowingly abused his position by transferring funds from American Parking’s accounts at BancFirst to accounts owned and controlled by one of Wiley’s acquaintances. The defendant claimed that he lost the funds after sharing them with an online acquaintance to pursue a personal investment opportunity. In return for the investment, Wiley had hoped to receive $100,000,000 from the acquaintance’s supposed inheritance.
The United States argued that Mr. Wiley was not a helpless victim but an experienced, well-educated professional motivated by greed. The prosecution contended that Wiley could have obtained the funds to assist his acquaintance through a number of legal means, but instead knowingly bilked American Parking out of nearly half a million dollars in order to eventually receive a greater payout from the promised “inheritance”.
The FBI conducted the investigation; Assistant U.S. Attorney Richard M. Cella prosecuted the case.
Texas meth ring handed massive sentencesRead the Press Release
McALLEN, Texas – Several Fort Worth area meth runners and their recruiter have been sentenced for their roles in a half-year meth importing conspiracy, announced U.S. Attorney Ryan K. Patrick. The case involved the seizure of seven meth loads with a combined weight of more than 150 kilograms.
Aren Reyes, 23, Teresa Gonzales, 27, Francisca Baez, 53, and Yesenia Garcia, 27, all of Fort Worth; and Ofelia Hernandez Vasquez, 26, Saginaw, pleaded guilty in late 2017.
Today, U.S. District Judge Micaela Alvarez handed the main recruiter - Reyes - a 240-month sentence to be immediately followed by three years of supervised release. Also sentenced today were drug mules Gonzales and Garcia, who received respective sentences of 58 and 60 months in federal prison. Vasquez was sentenced to a term of 40 months, while Baez was ordered to serve a 75-month term of imprisonment. Both were drug smugglers in the organization.
In handing down the sentences, the court noted this was not the only load of drugs Gonzalez, Garcia and Vasquez had smuggled and could have changed their minds at any time and not participated in the long drive from Fort Worth. The court also mentioned that even if Baez was unable to stop her son - Reyes - from narcotics trafficking, she could have avoided joining her son in his criminal activities. Prior to assessing the 20-year sentence upon Reyes, Judge Alvarez considered the number of individuals he recruited into the drug trafficking ring and how many he affected with such a serious and destructive drug as meth.
Reyes was the main recruiter of drug mules for this drug trafficking organization and would frequently accompany them to the Rio Grande Valley to coordinate the importation of the drugs into the U.S. She would also travel up to Houston and occasionally, to the state of Georgia. He would escort the mules to make sure they got the drugs successfully past ports of entry and checkpoints.
On April 30, 2017, Vasquez and her brother, Manuel Martinez, 40, Saginaw, Texas, were arrested at the Anzalduas port of entry with approximately 30 kilos of meth in their vehicle. The drugs were stashed in a load of milk and juice containers to try to avoid suspicion. Martinez was sentenced previously to 120 months in for his role in the crime.
The next months, Garcia and Gonzales were arrested at the Progreso port of entry. They attempted to smuggle 11 kilograms of meth into the country in their vehicle - hidden in bags of candy.
Reyes also used his boyfriend, Brandon Morrison, and his mother, Baez, in the scheme. On Aug. 6, 2017, Morrison and Baez pushed a cart loaded with drinks into the Brownsville Port of Entry from Mexico. Upon Investigation, authorities soon discovered 15 kilograms of meth hidden within the coconut water bottles in Morrison’s cart. Morrison previously received a 122-month sentence.
All will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney David A. Lindenmuth is prosecuting the cases.
Texas Man Convicted of Conspiring to File False Tax Returns with Stolen Identities Purchased on the InternetRead the Press Release
A Grand Prairie, Texas, resident was found guilty yesterday of conspiring to commit wire fraud, wire fraud, and aggravated identity theft, in connection with a scheme to file false tax returns using stolen identities, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and Scott W. Murray, U.S. Attorney for the District of New Hampshire.
According to the evidence presented at trial, from 2011 through 2014, Emmanuel Akoto, also known as “Kofi,” purchased from third parties more than 560 stolen identities of other people and used the stolen identities to file false tax returns with the Internal Revenue Service (IRS). These returns listed fake income and tax withholdings and sought fraudulent refunds, which Akoto and his co-conspirators loaded onto pre-paid debit cards. At one point, Akoto tried to purchase identities from a United States Secret Service undercover agent, asking through email how much it would cost to buy the “newest” identities. The wide-ranging conspiracy involved others in Texas, California, Georgia, and Ghana.
Akoto is scheduled to be sentenced on Jan. 29, 2020 by U.S. District Judge Steven J. McAuliffe. Akoto faces a statutory maximum sentence of 20 years in prison for conspiracy to commit wire fraud and each wire fraud offense. He also faces a mandatory minimum sentence of two years in prison for aggravated identity theft. He also faces a period of supervised release, restitution, and monetary penalties. Akoto’s co-defendant, Jeffrey Quaye, pleaded guilty in July 2018 to conspiracy to commit wire fraud and aggravated identity theft for his role in the scheme. Quaye is scheduled to be sentenced on Nov. 5, 2019.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Murray thanked special agents of IRS–Criminal Investigations and the Secret Service, who conducted the investigation, and Trial Attorney Sean Green, and Assistant United States Attorney Arnold Huftalen, who tried the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Syracuse Man Sentenced to Nearly Four Years for Heroin and Fentanyl DistributionRead the Press Release
SYRACUSE, NEW YORK - Jondell Middlebrooks, age 39, of Syracuse, was sentenced today to serve 46 months in prison based on his guilty plea to the distribution, and possession with intent to distribute, heroin, fentanyl, and acetyl fentanyl, announced United States Attorney Grant C. Jaquith, Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Field Division, and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
In imposing the sentence, Chief United States District Judge Glenn T. Suddaby also ordered Middlebrooks to serve three years of supervised release following his term of incarceration, and ordered Middlebrooks to forfeit to the United States a money judgment reflecting the proceeds of his illegal activity. As part of his guilty plea, Middlebrooks admitted to distributing drugs on the south side of Syracuse from February through December 2018.
This case was investigated by the U.S. Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the Syracuse Police Department, Gang Violence Task Force, the New York State Police, and the Onondaga County Sheriff’s Office, and was prosecuted by Assistant U.S. Attorney Nicolas Commandeur.
Statement by U.S. Attorney Jessie K. Liu on D.C. Council Hearing Regarding Hate Crimes in the District of ColumbiaRead the Press Release
WASHINGTON – Jessie K. Liu, U.S. Attorney for the District of Columbia, issued the following statement regarding today’s hearing before the Council of the District of Columbia, Committee on the Judiciary & Public Safety, entitled “Hate Crimes in the District of Columbia and the Failure to Prosecute by the Office of the United States Attorney.”
The U.S. Attorney’s Office for the District of Columbia believes that prosecuting bias-related crimes is critical to keeping our community safe. When one member of a group is the victim of a bias-related crime, all members carry with them a fear that they, too, may be targeted because of who they are. The Office, in partnership with law enforcement, uses all appropriate prosecutorial tools to hold perpetrators of such crimes accountable. We also work constructively with the community to understand their concerns and to find ways to address those concerns.
This morning, I sent the Committee a letter regarding the Office’s investigation and prosecution of potential bias-related crimes. Among other things, the letter explains that the Office brings criminal charges in the vast majority of cases presented to us by our law enforcement partners as potential bias-related crimes. Of the 204 potentially bias-related incidents flagged by the Metropolitan Police Department (MPD) in 2018, only 59 resulted in arrests that were presented to the Office for prosecution. Similarly, of the 178 alleged bias-related incidents flagged by MPD in 2017, only 55 were presented for prosecution. In 2018, the Office brought charges for the underlying criminal offense in 52 of the 59 incidents. In 2017, the Office brought charges for the underlying criminal offense in 49 of the 55 incidents. As of June 30, 2019, MPD flagged 23 incidents resulting in arrests as potential bias-related crimes. The Office brought charges for the underlying criminal offense in 19 of the 23 incidents.
We also continue to engage energetically with the community on this issue, including hosting quarterly meetings of the Hate-Bias Task Force, a collaboration of agency and community partners in the District of Columbia who focus on addressing the needs of affinity groups in the city and combating bias-related crimes. In response to feedback from the community, we also have made several changes to our procedures for reviewing potential bias-related crimes, such as appointing an additional hate-crimes coordinator within the Office to review potential bias-related crimes and assist in their investigation and prosecution.
We regularly participate in open dialogue about combating bias-related crimes, and we will continue to have those conversations. But we will not testify in person at today’s hearing, as its title shows that the Committee has reached a conclusion – that the Office is failing to prosecute potential bias-related offenses – before a full and fair consideration of the facts. This unjustly maligns the Office’s dedicated career prosecutors, who carefully review every arrest identified as a potential bias-related crime and make principled charging decisions based solely on the law and the facts. We remain eager to work with all of our community partners to seek justice in potential bias-related crimes and to enhance public safety, and we look forward to doing so in a collaborative and open-minded fashion.