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Friday 13 September 2019
Davis Resident Convicted by Jury in California Driver’s License FraudRead the Press Release
SACRAMENTO, Calif. — David Sun, 53, of Davis, was found guilty today on all counts related to a scheme to fraudulently obtain California Class A and Class B commercial driver licenses (CDLs) for the students of his commercial driving school, U.S. Attorney McGregor W. Scott announced.
After a 7-day trial, a jury found Sun guilty of one count of conspiracy to commit unauthorized access of a computer and to produce identification documents without lawful authority, eight counts of production of identification documents without lawful authority, and one count of conspiracy to produce identification documents without lawful authority and to transfer identification documents produced without lawful authority.
According to court documents and evidence produced at trial, Sun operated a driving school named Commercial Driver Institute USA in the East Bay with a parking lot in Richmond. Sun primarily catered to Mandarin and Cantonese speaking students. He helped students get Class A or Class B commercial driver licenses that allowed them to drive large vehicles like tractor-trailer trucks and buses. Sun typically charged $2,500 to $6,500 per student.
Sun committed two different types of fraud: a testing conspiracy where Sun helped his California students fraudulently bypass the required written or driving tests to get commercial licenses, and a residency conspiracy where Sun recruited students from New York and helped them pose as California residents to get a California CDL. Sun would arrange for the licenses to be mailed to the students who had returned to their actual home state of New York.
Sun’s students struggled with the written tests because of their English language limitations so he helped them bypass the written testing requirements for learner’s permits. Those permits were issued from DMV’s Walnut Creek office under one employee’s login from at least November 2014 through January 2016. None of Sun’s students in the conspiracy or charged counts ever went to that Walnut Creek DMV office or passed the tests on the dates indicated in DMV’s records. Sun instructed his students to attempt the written tests, which they did at various DMV offices in the Bay Area. If they failed, Sun took their DMV receipt, which would show their unique California DMV number, and a fraudulent permit would issue from the Walnut Creek DMV after fraudulent passing scores were entered under the Walnut Creek employee login.
On occasion, Sun provided his students with a Bluetooth device to wear during the driving test, and instructed them to wear a beanie to conceal it, so that Sun could tell the student what to say and do during the test. In addition, on many occasions Sun took his students to a particular license examiner at the DMV in Santa Rosa with whom Sun had a personal relationship. Evidence at trial showed that Sun was paid extra money to guarantee they would pass the driving tests.
This case is the product of an investigation by the California Department of Motor Vehicles Office of Internal Affairs and Homeland Security Investigations. Assistant U.S. Attorneys Rosanne L. Rust and Christopher S. Hales are prosecuting the case.
Sun is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on Dec. 9. Sun faces a total statutory maximum penalty of 15 years and 5 years in prison respectively for the conspiracy counts, as well as a maximum of 15 years in prison for each of the eight counts of production of identification documents without lawful authority. The actual 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.
Convicted Felon Sentenced to 92 Months for Illegally Possessing a Firearm During a Domestic Violence IncidentRead the Press Release
Memphis, TN – Edward Drummer, 36, has been sentenced to 92 months in federal prison for being a convicted felon in possession of a firearm. U.S. Attorney D. Michael Dunavant announced the sentence today.
According to information presented in court, on January 29, 2018, Memphis Police officers responded to an aggravated assault/domestic violence call at a residence. During an argument, a female victim and her twelve-year-old son were held at gunpoint by her boyfriend of one month, Edward Drummer. The victim and her son managed to escape and called the police. Officers found Drummer hiding inside a closet and located the firearm he used inside a kitchen stove. The firearm was a Smith & Wesson .22 caliber pistol.
Drummer has a significant prior criminal history for violence, including felony convictions for aggravated robbery with a deadly weapon and aggravated burglary, as well as misdemeanor convictions for possession of marijuana and resisting arrest.
On September 5, 2019, U.S. District Court Judge Thomas L. Parker sentenced Drummer to 92 months in federal prison followed by 2 years supervised release.
U.S. Attorney D. Michael Dunavant said, "Reducing violent crimes committed with firearms is the top priority of this office and the Department of Justice. Prohibited persons in possession of firearms such as convicted felons, persons with histories of domestic violence, and unlawful users of illegal narcotics present a known and immediate risk of violence to their families and the community at large. This is exactly the type of dangerous offender that the PSN Task Force is designed to target, and I commend their work in holding Drummer responsible and removing him from our streets for over 7 years."
The case was investigated by the Project Safe Neighborhoods (PSN) Task Force, which includes the U.S. Attorney’s Office; the Shelby County District Attorney’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); the Memphis Police Department; and the Shelby County Sheriff’s Office, who have all joined together to address gun-related crimes through targeted investigations and aggressive prosecution.
Assistant U.S. Attorney Raney Irwin prosecuted this case on behalf of the government.
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Center Point Man Sentenced to 50 Years for Producing, Distributing Child PornographyRead the Press Release
BIRMINGHAM – A federal judge yesterday sentenced a Center Point man to 50 years in prison for producing child pornography, announced U.S. Attorney Jay E. Town and FBI Special Agent in Charge Johnnie Sharp, Jr.
U.S. District Judge Annemarie Axon sentenced DENNIS JAMES HUDSON JR., 28, also known as D.J. Zygi Hudson, Zygi Hudson, Tyler Johnson and Brandon McDaniels, on 5 counts of producing child pornography and one count of distributing child pornography. Hudson pled guilty in January 2019, for persuading persons under the age of 18 to engage in sexually explicit conduct and transmit images of that conduct over the internet, and to distributing child pornography using the internet and a file-sharing website.
“A long prison sentence is well-deserved for this defendant,” Town said. “We commend the FBI and ALEA for their work to diligently monitor the internet using every available resource to catch yet another child predator. He will now spend the next 50 years gazing at prison bars instead of a computer screen.”
“Hudson deserves every day of this sentence, as he used the internet for his own perverse behavior,” Sharp said. “Let this be a reminder to all parents to monitor your children's internet use. Know who they are communicating with and promptly report anything suspicious.”
FBI investigated the case, along with the Alabama Law Enforcement Agency. The case was prosecuted by Assistant United States Attorneys Manu Balachandran and Leann White.
Bronx Man Sentenced to over 26 Years in Prison for 2011 Gang-Related MurderRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that DEANDRE MORRISON, a/k/a “D-Nice,” was sentenced today to 318 months in prison for the murder of Danny Delgado on August 1, 2011. MORRISON shot and killed Delgado at the direction of a high-ranking member of the MacBallas, a subset of the Bloods street gang, in the Bronx. MORRISON was sentenced by U.S. District Judge Denise Cote, after previously pleading guilty to racketeering conspiracy and narcotics conspiracy offenses.
U.S. Attorney Geoffrey S. Berman said: “Deandre Morrison executed Danny Delgado in cold blood right outside his home. For this senseless act of violence, Morrison will now serve over 26 years in prison. We thank the NYPD and the DEA for their tireless work pursuing justice in this case.”
According to court filings and statements made in connection with the sentencing proceeding:
Beginning in or around 2011, MORRISON was an associate of the MacBallas, who sold crack cocaine in MacBalla territory. On or about August 1, 2011, a high-ranking member of the MacBallas approached MORRISON and asked him to kill Danny Delgado because the high-ranking gang member believed that Delgado had publicly disrespected him. MORRISON agreed to commit the murder, which was a means for him to increase his status among the MacBallas. That same night, MORRISON walked to Delgado’s residence on East 153rd Street in the Bronx, walked up to Delgado, and opened fire, shooting Delgado three times, then fled on foot. Delgado died from his injuries later that night. After committing this murder, MORRISON gained both membership and heightened status within the MacBallas, and he remained a member of the gang for years.
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In addition to the prison term, MORRISON, 28, of the Bronx, New York, was sentenced to 3 years of supervised release.
Mr. Berman praised the outstanding investigative work of the NYPD and the DEA.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Christopher Clore, Maurene Comey, and Justin Rodriguez are in charge of the prosecution.
Bloods Gang Member Indicted for Racketeering and Double Homicide on Long IslandRead the Press Release
Taheem Smith, a member of the Bloods street gang, was arraigned this afternoon before United States Magistrate Judge Gary R. Brown in federal court in Central Islip on an 11-count indictment charging him with racketeering, murders in aid of racketeering of David Arzu and Janelle Curella, robbery, firearms charges and narcotics possession and distribution. Smith was arrested yesterday and was ordered remanded pending trial by Magistrate Judge Brown.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York Field Office (HSI), and Geraldine Hart, Commissioner, Suffolk County Police Department (SCPD), announced the charges.
“As alleged, the defendant murdered an innocent man and woman to increase and maintain his own standing in the ruthless Bloods street gang,” stated United States Attorney Donoghue. “This Office and our law enforcement partners will continue working unrelentingly to end the violent careers of gang members like Smith and decimate gangs like the Bloods to which they belong.” Mr. Donoghue expressed his appreciation to the FBI’s Long Island Gang Task Force for their work on the case.
"Violent gangs believe they can act with impunity, as if their actions don't impact innocent people,” stated FBI Assistant Director-in-Charge Sweeney. “Mr. Smith allegedly killed two people just to rob them. No amount of money is worth a human life. Our FBI Long Island Gang Task Force and law enforcement partners continue our determination to stop all illegal gang activity from destroying the peace in communities, and bring the members and leadership to justice.”
“It is alleged that just over three years ago, Smith murdered two during a robbery on a Bay Shore street. As a member of the Bloods gang, Smith’s proclivity for weapons, violence and drugs regularly spilled out into our Long Island neighborhoods,” stated HSI Special Agent-in-Charge Fitzhugh. “Partnerships among law enforcement continues to be paramount in gang investigations because our communities can no longer tolerate the volatility associated with criminal gangs.”
“These charges levied upon Mr. Smith today exemplify our commitment to apprehending those who act on such violence and prey on those who are vulnerable,” stated SCPD Commissioner Hart. “We will continue to work with the Eastern District of New York and our law enforcement partners on all levels to dismantle gang activity and rid our communities of illicit drugs and unlawful behavior.”
As alleged in the indictment and court filings and proceedings, on the evening of September 2, 2016, David Arzu, Janelle Curella and two friends were walking toward the Long Island Railroad Station in Bay Shore. Smith and his co-conspirator approached the group, brandished firearms, and demanded the victims’ money and valuables. During a struggle, Arzu and Curella were shot. They died of their wounds a short time later.
The charges in the indictment are allegations, and the defendant is presumed to be innocent unless and until proven guilty. If convicted, Smith faces up to a maximum sentence of life imprisonment.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the its renewed focus on targeting violent criminals, directing all U.S. Attorneys’ 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.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Christopher C. Caffarone and Mark E. Misorek are in charge of the prosecution.
The Defendant:
TAHEEM SMITH (also known as “Ta”)
Age: 25
Farmingville, New YorkE.D.N.Y. Docket No. 19-CR-417 (ADS)
Berkeley County woman admits to firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Cassandra Elaine Riggs, of Hedgesville, West Virginia, has admitted to a firearms charge, United States Attorney Bill Powell announced.
Riggs, age 30, pled guilty to one count of “Unlawful Possession of a Firearm.” Riggs, who is prohibited from having a firearm or ammunition because of previous felony convictions, admitted to having a .223 caliber semi-automatic rifle in October 2018 in Berkeley County.
Riggs faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods 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.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the United States Probation Office investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Belle Vernon Man Sentenced to 2 More Years in Prison for New Supervised Release Violations, This Time on the Day of His ReleaseRead the Press Release
PITTSBURGH, PA – A former Fayette County resident has been sentenced in federal court to two years (24 months) in prison for violating multiple conditions of his supervised release, United States Attorney Scott W. Brady announced today.
United States District Judge Cathy Bissoon imposed the sentence yesterday on Eric Seighman, age 36, formerly of Belle Vernon, Pennsylvania.
According to information presented to the court, Seighman had previously been sentenced to 30 months’ imprisonment and three years of supervised release for conspiring to possess and pass thousands of dollars of counterfeit currency. He had also been sentenced to an additional 24 months’ imprisonment for prior violations of his supervised release. Seighman began his current term of supervised release on August 6, 2019, and was arrested by Pittsburgh Police the same day on charges of possession of a controlled substance, possession of marijuana, and possession of drug paraphernalia; those charges are pending against him. Evidence presented to the court also indicated that, during the first week of his supervised release term, Seighman attempted to smuggle syringes and stamp bags of suspected heroin into the residential re-entry facility where he was staying, and later left the facility without permission.
Judge Bissoon found that Seighman had violated the conditions of his supervised release by committing another crime; unlawfully possessing a controlled substance; failing to notify his probation officer of his arrest; and failing to reside in a residential re-entry facility and abide by its rules. The court revoked Seighman’s supervised release and imposed the maximum sentence allowed by law, 24 months in prison, after considering factors such as the seriousness of Seighman’s violations, his criminal history, and the need for deterrence and to protect the public.
Assistant United States Attorney Adam N. Hallowell prosecuted this case on behalf of the government.
United States Attorney Brady commended the U.S. Probation Office and the Pittsburgh Bureau of Police for their efforts in this matter.
Allentown Man Is Sentenced to Ninety Months Imprisonment for Drug TraffickingRead the Press Release
WILKES-BARRE - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Andrew Perez, age 31, of Allentown, Lehigh County, was sentenced yesterday by Senior U.S. District Court Judge A. Richard Caputo to ninety months’ imprisonment and four years on supervised release for his role in a Monroe County-based heroin and cocaine trafficking conspiracy.
According to United States Attorney David J. Freed, Perez previously pleaded guilty to conspiring with others to distribute between 700 grams and 1 kilogram of heroin (which is equivalent to 28,000 to 40,000 individual doses of heroin), as well as additional amounts of crack cocaine, in the Monroe County area between May and July 2015. Perez was one of eleven individuals indicted by a grand jury in July 2015 and charged with conspiring to distribute heroin, powder cocaine and crack cocaine in the Monroe County area.
The case was investigated by the Drug Enforcement Administration (DEA) and the Pocono Mountain Regional Police Department. Assistant United States Attorney Robert J. O’Hara prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This prosecution is also part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
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8 More Gadsden, Jackson, and Calhoun County Residents Charged in Drug Trafficking ConspiracyRead the Press Release
TALLAHASSEE, FLORIDA – A federal grand jury returned a superseding indictment, charging eight additional defendants with federal drug trafficking offenses. The indictment arises from an investigation that previously resulted in charges against twelve other defendants for offenses stemming from a long-term investigation into drug trafficking. The superseding indictment was announced today by Lawrence Keefe, United States Attorney for the Northern District of Florida.
The newly charged defendants are:
• Otis Goulds, 58, of Chattahoochee, Florida;
• Savanna Price, 20, of Marianna, Florida;
• Travis Smith, 37, of Malone, Florida;
• Charles Randolph Corbin, 46, of Blountstown, Florida;
• Justin Cribley, 36, of Chattahoochee, Florida;
• Zanntayfey Yohoun Bennett, 35, of Quincy, Florida;
• Jeremy Williams, 29, of Greenwood, Florida; and
• Tanya Henry, 41, of Grand Ridge, Florida
The superseding indictment and arrests resulted from an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) Operation, which targeted a drug trafficking organization headed by Jermaine Hadley. The organization is alleged to be responsible for the distribution of methamphetamine, cocaine, and MDMA throughout the north-central Florida Panhandle between 2018 and 2019. The superseding indictment is a continuation of the prosecution that commenced with the original indictment returned in May.
If convicted, the eight new defendants face penalties ranging up to and including life imprisonment and fines up to $20 million.
The case was investigated by a number of federal, state, and local agencies, including the Drug Enforcement Administration, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Marshals Service, the U.S. Department of Agriculture, the Gadsden County Sheriff’s Office, the Jackson County Sheriff’s Office, the Florida Highway Patrol, the Chattahoochee Police Department, the Tallahassee Police Department, the Leon County Sheriff’s Office, the Calhoun County Sheriff’s Office, the Florida Department of Law Enforcement, and the Florida Air National Guard Counterdrug Program. The case is being prosecuted by Assistant United States Attorney Eric Mountin.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt and dismantle the targeted criminal organization and seize its assets.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html
11 Charged after Investigation into Gang-Related Drug Distribution and Violence in HartfordRead the Press Release
U.S. Attorney John H. Durham, Brian C. Turner, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, and Jason Thody, Interim Chief of the Hartford Police Department, today announced that 11 men have been charged with various federal offenses related to the distribution of fentanyl and other narcotics in Hartford and, the illegal possession of firearms.
In July 2019, after a spate of gun violence in Hartford, the FBI’s Northern Connecticut Violent Crimes Gang Task Force, DEA, Hartford Police Department and other law enforcement agencies, including the East Hartford Police Department and Connecticut State Police, initiated an investigation targeting gang-related drug distribution and associated violence in north Hartford. The investigation has included numerous controlled purchases of narcotics.
On September 11, 2019, a grand jury in Hartford returned seven indictments charging 10 of the defendants. Nine defendants were arrested this morning, one defendant was previously arrested on a state parole violation, and one defendant was arrested and indicted in August. All are presently detained.
In association with today’s arrests, law enforcement conducted four federal search warrants and recovered two firearms in the home of one of the defendants.
During today’s operation, several individuals also were arrested on various state charges.
Unless otherwise noted, the following individuals are Hartford residents and were arrested today:
PEDRO ALVARADO, 43, is charged in a two-count indictment with one count of possession of a firearm by a convicted felon, and one count of possession of marijuana with intent to distribute. The indictment alleges that, on July 24, 2019, Alvarado possessed a loaded Smith & Wesson, Model 422, .22 caliber handgun, and marijuana. Prior to that date, Alvarado was convicted in state court of felony risk of injury, assault, larceny and narcotics offenses.
HANEEF BROOKS, 40, is charged in an indictment with one count of possession of a firearm by a convicted felon. The indictment alleges that, on July 15, 2019, Brooks possessed a 7.62x39mm Norinco SKS rifle. Prior to that date, Brooks was convicted in state court of felony weapon possession and drug offenses.
NATHANIEL DEJESUS, 19, is charged in a three-count indictment with one count of possession with intent to distribute, and distribution of, cocaine base (“crack”), one count of possession with intent to distribute, and distribution of, fentanyl and cocaine base; and one count of possession with intent to distribute fentanyl and cocaine base. It is alleged that DeJesus possessed and/or distributed the narcotics on three occasions in August 2019.
BRIAN EVANS, 20 and JORDAN MADDOX, 22, are charged in a five-count indictment with possession with intent to distribute, and distribution of, fentanyl. The indictment alleges that Evans and Maddox distributed the drug on multiple occasions in July and August 2019. During one of the transactions, Maddox also distributed a quantity of crack cocaine. A search of Evans’ residence today revealed two firearms.
JOSHUA JENKINS, 26, KENDALL FAIR, 20, and TRELIQUE WARD, 20, are charged in a 10-count indictment with various offenses related to the distribution of fentanyl and crack cocaine between July and September 2019. Ward was previously arrested for a state parole violation and is currently in state custody.
SHAUN HAWKINS, 42, is charged in an indictment with three counts of possession with intent to distribute, and distribution of, cocaine base, related to his distribution of the drug on three occasions in August and September 2019.
CHRISTIAN PATTERSON, 19, is charged in a three-count indictment with one count of possession with intent to distribute, and distribution, of cocaine base, and two counts of possession with intent to distribute, and distribution of fentanyl and cocaine base. It is alleged that Patterson distributed the drugs in August and September 2019.
On August 21, 2019, a grand jury returned an indictment charging McCLENDON JONES, 39, of Bloomfield, with two counts of possession with intent to distribute multiple controlled substances, including, fentanyl, heroin, cocaine base, cocaine, PCP and marijuana. On August 8, 2019, it is alleged that Jones sped away from investigators who were conducting a traffic stop in Hartford. Jones’ vehicle struck a city transit bus and then another vehicle before it crashed into a fence on Mahl Avenue. After Jones was apprehended, a search of the vehicle revealed approximately 47 grams of crack cocaine, a half-pound of marijuana, 100 bags of packaged fentanyl, and 60 bags of packaged heroin. A subsequent search of Jones’ residence revealed a glass jar containing approximately 28 grams of liquid PCP, 1,000 bags of packaged fentanyl/heroin, 145 grams of powder cocaine, 350 grams of crack, 27 grams of fentanyl, 230 grams of raw heroin, 12 pounds of marijuana, and $8,000 in cash. Jones has been detained since his arrest.
U.S. Attorney Durham stressed that charges are not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
The U.S. Postal Inspection Service, Manchester Police Department, West Hartford Police Department and the North Central SWAT Team assisted today’s arrests.
These cases are being prosecuted by Assistant U.S. Attorneys Michael J. Gustafson, S. Dave Vatti and Geoffrey M. Stone.
Thursday 12 September 2019
U.S. Citizen Extradited from Brazil Pleads Guilty to Wire Fraud ChargesRead the Press Release
BOSTON – A former accountant pleaded guilty today in federal court in Boston in connection with a $2 million wire fraud scheme.
Christopher Morris, 48, formerly of Lowell and Chelsea, Mass., pleaded guilty to four counts of wire fraud and 12 counts of unlawful monetary transactions. U.S. District Court Senior Judge Douglas P. Woodlock scheduled sentencing for Dec. 10, 2019. In November 2014, Morris was charged in an indictment in the District of Massachusetts. In May 2019, he was extradited from Brazil, where he had been living since 2013.
Morris admitted that he participated in a wire fraud scheme targeting his employer PBS Distribution (PBSd), a media distribution business with operations in Allston and elsewhere. Morris’ position gave him access to U.S. mail addressed to PBSd’s accounting department, including checks payable to PBSd. Beginning as early as January 2008 and continuing through September 2012, Morris took more than $2 million in checks under the guise of depositing them into PBSd’s bank accounts, but he instead endorsed them to himself and deposited them into a personal bank account. Morris used his access to PBSd’s accounting system to conceal the theft by, among other steps, fraudulently causing credits to be issued to the accounts of customers whose checks he stole, and by causing PBSd’s general ledger to be altered to show that the same customers had made payments. Morris spent the proceeds of the scheme on a lavish lifestyle that included, among other expenses, year-long apartment rentals in New York City’s Greenwich Village and Tribeca neighborhoods, the down payment, purchase and upkeep of a waterfront condominium in Chelsea, and luxury clothing, dining and travel, including a $16,000 two-week South American cruise.
The charges of wire fraud provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000 on each count. The charge of unlawful monetary transactions provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of the greater of either $250,000 or twice the value of the criminally derived property. 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 Division; Joseph W. Cronin, Postal Inspector in Charge of the U.S. Postal Inspection Service, Boston Field Division; and Boston Police Commissioner William G. Gross made the announcement today. The U.S. Marshals Service for the District of Massachusetts and the U.S. Department of Justice’s Office of International Affairs provided assistance with Morris’ extradition to the United States, and Lelling thanked Brazilian authorities for their cooperation in this matter. Assistant U.S. Attorney Seth B. Kosto, of Lelling’s Cybercrime Unit, is prosecuting the case.
U.S. Attorney: $750,000 Federal Grant Will Support Wichita Gun Crime CenterRead the Press Release
WICHITA, KAN. – A $750,000 grant from the U.S. Department of Justice will help the Wichita Police Department set up a gun crime center, U.S. Attorney Stephen McAllister said today.
The grant is part of a federal initiative aimed at putting more resources into cities that are fighting violent crime problems.
“We want the Wichita Police Department to have more tools to fight violent crime,” U.S. Attorney Stephen McAllister said. “Technology, intelligence and community engagement are the keys to identifying firearms used in crimes and successfully prosecuting armed criminals.”
In its application for the grant, the Wichita Police Department outlined plans to develop a Crime Gun Intelligence Center (CGIC), including a crime analyst, an investigator, training, software for data analysis, bullets, cameras, a remote test fire system, microscope, bullet detection sensors, a CGIC prosecutor and forensic examiner. The plan includes funding for Wichita State University to serve as a research partner. The federal Bureau of Alcohol, Tobacco, Firearms and Explosives will work with police on the project.
Funding is being provided by the Justice Department’s Bureau of Justice Assistance through the National Crime Gun Intelligence Center initiative. For more information. More information on the program is available at https://crimegunintelcenters.org/
U.S. Attorney Bryan Schroder Announces Efforts Made to Address Public Safety Crisis in Rural AlaskaRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced an update on efforts made by law enforcement agencies to address the public safety crisis in rural Alaska. In May 2019, Attorney General William P. Barr came to Alaska to personally examine the public safety situation in the vast rural areas of the state. Based on that visit, Attorney General Barr declared a law enforcement emergency in rural Alaska under the Emergency Federal Law Enforcement Assistance (EFLEA) program, making $6 million immediately available to the State of Alaska for critical law enforcement needs. Recognizing that Alaska has the highest per capita crime rate in the country, and the unique circumstances of Alaska’s geographical and jurisdictional landscape, the Attorney General authorized additional funding, and several long-term measures to support village public safety and victim services. A summary of the grant awards and ongoing agency efforts are below.
Formation of the RAAVEN Working Group
In his announcement of emergency funding for public safety in rural Alaska, Attorney General Barr tasked the U.S. Attorney for the District of Alaska to form a rural Alaska violent crime reduction working group. Within days, U.S. Attorney Bryan Schroder formed the group, now called the Rural Alaska Anti-Violence Enforcement (RAAVEN) Working Group. Initially, the group helped coordinate the law enforcement and prosecution resources provided by Attorney General Barr, including the $6 million EFLEA grant, and almost $5 million in Tribal Resource Grant Funds, both discussed below. In addition to members from the federal, state, and local law enforcement community, RAAVEN will also form a consultation group with Alaska Native leaders, working on medium and long-term planning to address violent crime issues in rural Alaska.
EFLEA Grant Award to the Alaska Department of Public Safety (DPS)
Based on the Attorney General’s declaration of a law enforcement emergency in rural Alaska, the State of Alaska Department of Public Safety (DPS) applied for, and was awarded, $6 million from DOJ’s EFLEA Program. DPS proposed to use this funding to address the high rates of domestic violence, sexual assault, and other violent crimes in the state by subgranting funds to Alaska Native organizations and villages to address critical public safety infrastructure needs in rural Alaska to support law enforcement services within communities.
DPS is actively developing the sub-grant solicitation for communities and tribal entities to apply for a portion of the $6 million made available through the EFLEA Program. The funding is expected to be available starting Oct. 1, 2019, for qualifying infrastructure projects, such as holding cells. Quality infrastructure for public safety purposes will help ease recruitment and retention issues in rural Alaskan communities.
With the notable call for more public safety options in rural Alaska, the Alaska Police Standards Counsel has increased its outreach to communities to help screen Village Police Officer (VPO) applicants. Additionally, training opportunities for VPOs and Tribal Police Officers (TPOs), through Yuut Elitnaurviat (YE) Corporation, commonly known as Yuut, has increased. An extra academy was added to the training schedule for October 2019. Providing training in rural Alaska makes it less burdensome for recruits and existing VPOs to attend. Yuut provides training and education opportunities for the people of the Yukon-Kuskokwim Delta Region.
COPS Grant Award
On July 30, 2019, Department of Justice’s Office of Community Oriented Policing Services (COPS) awarded nearly $5 million through the Tribal Resources Grant Program for the hiring, equipping, and training of VPOs and TPOs working in rural Alaska. The awards are as follows:
Tribal Agency
Funding for Equipment
Funding for Hiring
Positions Funded
Akiachak Native Community
$58,074
$241,429
3
Central Council Tlingit and Haida
$204,721
$0
0
Chickaloon Native Village
$4,378
$286,831
1
Holy Cross Tribe
$113,999
$185,457
1
Kasigluk Elders Council
$42,212
$255,077
1
Kodiak Area Native Association
$177,566
$0
0
Maniilaq Association
$253,562
$0
0
Native Village of Kipnuk
$41,199
$109,137
1
Native Village of Kwinhagak
$59,443
$108,211
1
Native Village of Mekoryuk
$7,260
$169,823
2
Native Village of Napaskiak
$31,829
$249,106
2
Native Village of Nulato
$58,837
$223,445
1
Native Village of Ruby
$79,681
$197,539
1
Native Village of Scammon Bay
$38,628
$249,216
2
Native Village of Tanacross
$75,074
$185,538
1
Native Village of Tununak
$73,017
$129,853
1
Northway Village
$70,819
$180,314
1
Sitka Tribe of Alaska
$300,000
$0
0
Venetie Village Council
$38,302
$249,944
1
Yakutat Tlingit Tribe
$241,681
$0
0
U.S. Attorney’s Office, District of Alaska
On July 24-25, 2019, representatives from the U.S. Attorney’s Office participated in live trainings in Anchorage and Bethel, hosted by DOJ’s Office of Bureau of Justice Assistance (BJA), Office of Victims of Crime (OVC), COPS, and Office of Tribal Justice (OTJ), on providing guidance to potential applications and tribal associations on how to access the OCV tribal set-aside grants for victim services. During the week of Aug. 18, 2019, U.S. Attorney Schroder joined community members, along with officials from the White House and the U.S. Department of the Interior (DOI) at the Reclaiming our Native Communities Roundtable in Nome, Alaska. Members of the U.S. Attorney’s Office also attended a Public Safety Listening Session in Bethel, Alaska the same week to discuss ways to address public safety challenges in the region.
Part of the resources authorized by Attorney General Barr included three new federal prosecutor positions focused on rural Alaska. The U.S. Attorney’s Office has selected one new attorney and is currently reviewing resumes for two additional prosecutors who will have an emphasis on criminal cases in rural Alaska.
U.S. Drug Enforcement Administration (DEA)
In the last 30 days, the Drug Enforcement Administration (DEA), in partnership with the Bureau of Alcohol Tobacco, Firearms and Explosives (ATF), the Alaska State Troopers (AST), and the Tanana Chief’s Conference, visited villages in the interior and the north coastal Alaska regions, discussing collaborative public safety and prevention measures with community leaders and local law enforcement officers. DEA also held community outreach visits with the students of each village, highlighting gun safety and the DEA Red Ribbon program, the nation’s oldest and largest drug prevention program.
Also, DEA Diversion Investigators visited with community leaders, pharmacists and medical professionals throughout the North Slope. Productive conversations regarding the on-going opioid epidemic, record keeping and federal regulations were discussed. Efforts are on-going and visits will continue throughout Alaska.
Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF)
Since Aug. 19, 2019, ATF, in partnership with DEA, AST, and the Tanana Chiefs Conference, traveled to villages in the interior and the north coastal Alaska regions, discussing collaborative public safety and prevention measures with the community leaders and local law enforcement officers. During this time, ATF participated in community outreach visits with students of each village highlighting the importance of firearms safety. Additionally, ATF informed community leaders of existing federal firearm statutes that can be applied to address violent offenders within their communities and also provided information on resources available to victims of domestic violence.
ATF efforts will continue throughout rural Alaska and will include training sessions for state and local law enforcement officers that will focus on firearms enforcement training to improve state and local law enforcement response to firearms related crimes, and identification of offenders suitable for prosecution.
U.S. Postal Inspection Service (USPIS)
Starting on Aug. 18, 2019, the USPIS, DEA, HSI, and ATF, have been conducting drug enforcement operations looking for controlled substances destined to rural Alaska. These operations resulted in the seizure of approximately 30,000 controlled pills along with other suspected controlled substances.
U.S. Marshals Service (USMS)
The U.S. Marshals continue to work in partnership with AST in rural Alaska. Rob Heun, U.S. Marshal for Alaska, is currently hosting the U.S. Marshals Service Director Donald Washington to address the role the Marshals will play in Attorney General Barr’s initiative. As part of this assessment, on Sept. 10, 2019, the USMS spent the day in Bethel and Tuntutuliak. During this time, the USMS coordinated equipment needs for AST, met with the Association of Village Council Presidents (AVCP), met with village leaders in Tuntutuliak, and coordinated with Yuut and the lower Kuskokwim School District regarding kid’s camps.
This announcement was made as part of the Rural Alaska Anti-Violence Enforcement (RAAVEN) Working Group’s ongoing efforts to build the capacity of federal, state, and tribal law enforcement in rural Alaska. The RAAVEN Working Group, led by the U.S. Attorney’s Office, encourages extensive collaboration among law enforcement at all levels, rural communities, Alaska Native groups, victim service organizations, and care providers. Current law enforcement members of the working group include the U.S. Attorney’s Office (USAO), State of Alaska Department of Public Safety (DPS), State of Alaska Department of Law (DOL), the U.S. Marshals Service (USMS), FBI, DEA, ATF, the U.S. Postal Inspection Service (USPIS), Homeland Security Investigations (HSI), the U.S. Coast Guard (USCG), and the Anchorage Police Department (APD).
U.S. Attorney Announces Settlement of Civil Fraud Claims Against Italian Textile Company for Scheme to Use U.S. Subsidiary to Underpay Customs DutiesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Troy Miller, Director, Field Operations New York, U.S. Customs and Border Protection (“CBP”), announced today that the United States has filed and settled a civil fraud lawsuit against MIROGLIO TEXTILE S.R.L. (“MIROGLIO”), an Italian textile manufacturer, and its wholly owned, New York City-based subsidiary, MIROGLIO TEXTILES USA, INC (“MIROGLIO USA”). As alleged in the Government’s complaint, MIROGLIO used sham intermediary “sales” to MIROGLIO USA at fraudulent, artificially low values, in order to underpay customs duties on goods that in fact MIROGLIO sold directly to United States customers at higher prices. Pursuant to the settlement, MIROGLIO and MIROGLIO USA admit and accept responsibility for conduct alleged in the complaint, agree to pay the United States a sum of $650,000, and agree to implement a policy to ensure future compliance with customs laws, including rules governing transactions between related parties like MIROGLIO and MIROGLIO USA. The settlement was approved yesterday by United States District Judge Louis L. Stanton.
U.S. Attorney Geoffrey S. Berman said: “Importers cannot use related-party companies to simply make up values out of whole cloth, but must pay duties based on legitimately reported values. We will be vigilant to ensure that companies pay the customs duties they owe when importing goods into the country.”
CBP Field Operations Director Troy Miller said: “The case filed today is a testament to the dedication of our partners in the United States Attorney's Office, Homeland Security Investigations, and our CBP officers, auditors, import specialists, and attorneys in enforcing our nation’s trade laws and punishing those perpetrating this type of fraud.”
The Government’s complaint-in-intervention alleges that for each sale of fabric, decals, and other products MIROGLIO made to a customer in the United States, MIROGLIO created a simultaneous sham transaction to its subsidiary MIROGLIO USA at an artificial discount unrelated to any bona fide market factor. MIROGLIO and MIROGLIO USA reported that fraudulent sale to CBP as the basis to calculate duties upon entry of the goods into the United States, which MIROGLIO USA claimed it was then independently reselling to end customers. But MIROGLIO USA never made any legitimate payment for its sham purchases from MIROGLIO, never took any inventory aside from a few sample pieces, and played no role in selecting the end customers or setting the terms of sale. The sham sales by MIROGLIO to MIROGLIO USA existed solely on paper and solely for the purpose of falsely undervaluing goods and reducing the customs duties that would apply. MIROGLIO and MIROGLIO USA also falsely certified to CBP that these fraudulent transactions were not affected by their related-party status.
As part of the settlement, MIROGLIO and MIROGLIO USA agreed to pay $650,000 and to implement a written compliance policy that will include measures to ensure that they properly report related-party transactions and pay duties on the full, actual value of all future imports. In addition, MIROGLIO and MIROGLIO USA admit, acknowledge, and accept responsibility for the following conduct:
- The reported values in the paper transactions between MIROGLIO and MIROGLIO USA were wholly influenced by the two companies’ status as related parties, and were based on an arbitrary discount calculated to reduce customs duties rather than on any legitimate market factors.
- MIROGLIO USA never paid proper consideration and in most cases did not receive or hold the goods that MIROGLIO USA supposedly purchased from MIROGLIO.
- MIROGLIO USA had no meaningful control over the transactions actually underlying the imports in question, as MIROGLIO USA had no authority to determine or negotiate the products to be sold, their prices, or the identity of end customers.
- MIROGLIO and MIROGLIO USA reported the low, artificial prices on CBP entry forms and associated invoices even though MIROGLIO and MIROGLIO USA were aware at all times that the reported information was incorrect. As a result, MIROGLIO and MIROGLIO USA caused an underpayment of customs duties that were due to the United States.
In connection with the filing of the lawsuit and settlement, the Government intervened in a private whistleblower lawsuit that had been filed under seal pursuant to the False Claims Act.
* * *
Mr. Berman thanked CBP for its efforts and ongoing support and assistance with the case.
This case is being handled by the Office’s Civil Frauds Unit. Assistant United States Attorney Stephen Cha-Kim is in charge of the case.
Two Men Federally Indicted for Armed Bank Robberies in Three Wisconsin CountiesRead the Press Release
United States Attorney Matthew D. Krueger announced today that two Waupun men were federally indicted for their involvement in three armed bank robberies in Waukesha, Washington, and Sheboygan Counties in 2019. Justin S. Smith, age 36, and William D. Balgie, age 35, were charged with committing robberies on the following dates at the following locations:
- April 8, 2019, at the National Exchange Bank and Trust in Allenton, Wisconsin;
- June 17, 2019, at the Cornerstone Bank in Menomonee Falls, Wisconsin; and
- August 9, 2019, at the National Exchange Bank and Trust in Glenbeulah, Wisconsin.
If convicted, each man faces up to 25 years in prison on each armed bank robbery count.
This matter is being investigated by the FBI’s Milwaukee Area Violent Crimes Task Force, the Milwaukee District Attorney’s Investigator’s Office, the Menomonee Falls Police Department, the Washington County Sheriff’s Office, the Waupun Police Department, the Sheboygan County Sheriff’s Office, the Slinger Police Department, the Plymouth Police Department, the Beaver Dam Police Department, and the District Attorney’s Offices in Sheboygan, Washington, and Waukesha Counties. It is being prosecuted by Assistant United States Attorney Margaret B. Honrath.
The public is cautioned that an indictment is merely a charge and the defendants are presumed innocent until and unless proven guilty.
# # # #
Two Kentucky Men Convicted for Concealing Corporate Contributions to U.S. Senate CampaignRead the Press Release
A federal jury in Kentucky found two men guilty of conspiring to use more than $206,670 of corporate funds to make contributions to the campaign of a candidate for United States Senate and for causing the concealment of these contributions from the Federal Election Commission (FEC).
Assistant Attorney General Brian A. Benczkowski of the Department of Justice’s Criminal Division, U.S. Attorney Robert M. Duncan Jr. for the Eastern District of Kentucky and Special Agent in Charge James Robert Brown Jr. of the FBI’s Louisville Field Office made the announcement.
Following a five-week trial, the jury convicted Gerald G. Lundergan of Lexington, Kentucky, of one count of conspiracy, one count of making corporate campaign contributions, four counts of causing the submission of false statements to the FEC and four counts of causing the falsification of documents with the intent to obstruct and impede a matter within the FEC’s jurisdiction. The jury convicted Dale C. Emmons of Richmond, Kentucky, of one count of conspiracy, one count of making corporate campaign contributions, two counts of causing the submission of false statements and two counts of causing the falsification of documents with the intent to obstruct and impede.
According to the evidence presented at trial, Lundergan used the funds of S.R. Holding Company Inc. (S.R. Holding), a company he owned, to pay for services provided by consultants and vendors to a campaign for a United States Senate seat in the 2014 election cycle. The candidate for this seat was Lundergan’s daughter, Alison Lundergan Grimes. The evidence established that Lundergan caused the issuance of a number of payments from S.R. Holding funds for services that included audio-video production, lighting, recorded telephone calls and campaign consulting, between July 2013 and December 2015.
The corporate contributions also included monthly payments from S.R. Holding to Emmons and his company during this period. Emmons provided services to the campaign and sought and received compensation from Lundergan and S.R. Holding. Emmons also used the funds of his corporation, Emmons & Company Inc., to pay other vendors and a campaign worker for services rendered to the campaign. Those services included recorded telephone calls, technological support services, and other campaign-related expenses.
The evidence established that Lundergan and Emmons concealed these activities from other officials associated with the campaign. Their concealments caused the campaign unwittingly to file false reports with the FEC because the reports failed to disclose the source and amount of the corporate contributions.
Deputy Chief Robert J. Heberle of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Andrew T. Boone and Kate K. Smith are prosecuting the case.
Two Investigations in Waco and Bell County Areas Net 16 Arrests Today on Federal Firearms and Narcotics Trafficking ChargesRead the Press Release
This morning, federal and state authorities arrested 16 individuals stemming from two separate investigations into narcotics trafficking in the Waco and Bell County areas, announced United States Attorney John F. Bash; FBI Special Agent in Charge Christopher Combs; Drug Enforcement Administration (DEA) Special Agent in Charge Will Glaspy, Houston Division; Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden; Texas Department of Public Safety Director Steven McCraw; Waco Police Chief Ryan Holt; McLennan County Sheriff Parnell McNamara; and, Lacy Lakeview Police Chief John Truehitt.
The first investigation, conducted by FBI, DEA, TXDPS, Waco Police Department, McLennan County Sheriff’s Office and Lacy Lakeview Police Department, resulted in nine (9) arrests today and three (3) prior arrests based on five (5) federal grand jury indictments unsealed today in Waco. During this investigation, authorities seized approximately two kilograms of methamphetamine, four kilograms of cocaine, approximately $50,000 in U.S. Currency, four firearms (including a Mini Draco AK47 assault style pistol), several pounds of marijuana and several hundred THC vaping pens. Also in regards to this investigation, authorities today seized seven (7) firearms, including two (2) AR-15’s (one with night vision equipment), one (1) AK47 pistol, and one (1) AK47 rifle, and approximately $3,600 in U.S. Currency.
- XAVIER ANGELO HERNANDEZ, et al. INDICTMENT – W19cr258
This indictment charges eight (8) defendants with conspiracy to possess with intent to distribute at least 500 grams of methamphetamine in the Waco area since September 2018. Each defendant faces between ten years and life in federal prison upon conviction. Individuals charged in the Hernandez indictment include:
Name, Age, Residence
Xavier Angelo Hernandez (aka “X”), 23, Waco
**Steven Matthew Ochoa, 29, Waco
Julio Cesar Cruz, 26, Waco
Martin Zuniga, Jr., 19, Waco
Gaspar Sardaneta Martinez (aka “Garza”), 28, Waco
Carline Stone Bolding, 49, Elm Mott, TX
Cheryl Ann Flanagan (aka “Cheryl Guajardo “), 40, Waco
Sabrina Maria Sardaneta, 28, Robinson, TX
- CHRISTOPHER MIKEL CLARK INDICTMENT – W19cr256
This indictment charges Christopher Mikel Clark (aka “Little Chris”), age 20 of Waco, with one count of possession of a firearm in furtherance of a drug trafficking crime. Clark faces a mandatory minimum of five years in federal prison upon conviction. In June 2019, authorities executed a search warrant at the defendant’s residence where they recovered marijuana and a Mini Draco AK47 assault style pistol.
- JOSEPH RYAN EDWARDS INDICTMENT – W19cr257
This indictment charges Joseph Ryan Edwards, age 26 of Waco, with one count of possession of a firearm in furtherance of a drug trafficking crime. Edwards faces a mandatory minimum of five years in federal prison upon conviction. During a traffic stop in June 2019, law enforcement searched the defendant’s vehicle and found a .380 caliber pistol, 41 THC Oil pens, and approximately $2,900.00 in U.S. Currency.
- STEVEN MATTHEW OCHOA INDICTMENT – W19cr260
This indictment charges previously named defendant, Steven Ochoa, with one count of possession with intent to distribute at least 500 grams of cocaine. Ochoa faces between five years and 40 years in federal prison upon conviction. In August 2019, Ochoa was arrested with four (4) kilos of cocaine and approximately $16,000 in U.S. Currency.
- AMOR ESPERANZA ZUNIGA, et al. INDICTMENT – W19CR271
This indictment charges **Amor Esperanza Zuniga (aka “Stony Zuniga”), age 19 of Waco, with one count of possession with intent to distribute at least 50 grams of methamphetamine and one count of possession of a firearm in furtherance of a drug trafficking crime. The indictment also charges Zuniga and **Heraclio Santos Carreon, age 41 of Waco, with one count of conspiracy to possess with intent to distribute methamphetamine. Each drug charge calls for between five years and 40 years in federal prison upon conviction. The firearms charge calls for a mandatory minimum of five years in federal prison upon conviction. During a traffic stop on July 21, 2019, authorities searched the defendants’ vehicle and discovered approximately 100 grams of methamphetamine and an RG 14, .22 caliber revolver.
**Defendants Steven Ochoa, Amor Zuniga and Heraclio Carreon were already in custody prior to today.The second investigation, conducted by TXDPS, FBI, DEA and HSI, resulted in seven (7) arrests today stemming from a single federal grand jury indictment unsealed today in Waco.
GERMAN ZARZOZA MORENO, et al. INDICTMENT – W19cr259
Today, authorities arrested seven (7) individuals charged in this indictment. They are:
Name, Age, Residence
German Zarzoza Moreno, 33, Temple, TX
Raul Montes, 47, Galena Park, TX
Jaime Estrada, Jr., 20, Temple
Jesus Alberto Garcia Zuniga, 25, Temple
Erik Enrique Hernandez, 32, Temple
Luis Carlos Jimenez, Jr., 26, Temple
Ezequiel Orozco, 29, Temple
This indictment charges Moreno, Montes and Estrada with one count of conspiracy to possess with intent to distribute more than 500 grams of cocaine and one count of conspiracy to possess with intent to distribute more than 500 grams of methamphetamine. Zuniga and Hernandez are only charged in the cocaine conspiracy count. Jimenez and Orozco are only charged in the methamphetamine conspiracy count. Those charged in the methamphetamine conspiracy face between ten years and life in federal prison upon conviction. Those charged in the cocaine conspiracy face between five and 40 years in federal prison. Under the direction of Moreno and Montes, the defendants allegedly distributed cocaine and methamphetamine in the Temple area since May 2018.
In regards to this investigation, authorities conducted a coordinated search/arrest operation today in the Temple and Houston areas. Today’s operation resulted in the seizure of approximately 2,853 grams of cocaine, 8.4 grams of ecstasy, and 31.9 grams of marijuana. Authorities also seized a .45 caliber Smith and Wesson pistol, a false battery compartment, a kilogram press, and several other items indicative of distribution and transportation of cocaine and methamphetamine.
The U.S. Marshals Service provided valuable assistance with today’s arrests. All of those arrested today remain in federal custody. Detention hearings are expected to occur next week before U.S. Magistrate Judge Jeffrey Manske in Waco.
Assistant U.S. Attorneys Christopher Blanton and Stephanie Smith-Burris are prosecuting these cases on behalf of the Government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
- XAVIER ANGELO HERNANDEZ, et al. INDICTMENT – W19cr258
Two Indictments for Marijuana Cultivations in Six Rivers National Forest and Shasta Trinity National ForestRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned two indictments today charging a total of seven defendants with conspiracy to cultivate marijuana, marijuana cultivation, and depredation of federal lands, U.S. Attorney McGregor W. Scott announced.
According to court documents in the first case, between July 19 and Aug. 17, Cornelio Morales Rodriguez, 35, of Oaxaca, Mexico; and Ukiah residents Kevin Humberto Quijada Colocho, 23, and Damian Isaac Rios Faber, 20, were involved in the cultivation of 1,806 marijuana plants east of Haman Ridge in Six Rivers National Forest. About 100 pounds of processed marijuana were seized at the site. The defendants are also charged with depredation of federal lands and resources.
This case is the product of an investigation by the Trinity County Sheriff’s Department, the U.S. Forest Service, the California Department of Fish and Wildlife, the California Highway Patrol Northern Division Air Operations, and the Trinity County District Attorney’s Office.
According to court documents in the second case, between May 23 and Aug. 28, Timothy Charles Wilson, 70, of Pioneer; Filemon Padilla Martinez, 54, of Mexico; Oscar Francisco-Diego, 31, of Guatemala; and Francisco Gomez Sanchez, 37 of Chiapas, Mexico, were involved in the cultivation of 1,054 marijuana plants in the Tomhead Mountain area in in Shasta-Trinity National Forest.
This case is the product of an investigation by the U.S. Forest Service, the Tehama County Sheriff’s Department, and the California Department of Fish and Wildlife with assistance from the Amador County Sheriff’s Office and the California Department of Justice. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting both cases.
If convicted of the marijuana charges, the defendants face a mandatory minimum penalty of 10 years in prison, and a maximum penalty of life in prison and a $10 million fine. If convicted of damaging public lands, the defendants face a maximum penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account several variables. These charges are only allegations; the defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Two Huntsville Men Arrested for Conspiracy to Distribute Fentanyl That Caused a DeathRead the Press Release
BIRMINGHAM – Federal agents arrested two Huntsville men for conspiracy to distribute fentanyl, a potent synthetic opioid painkiller, which resulted in a death, announced U.S. Attorney Jay E. Town and Drug Enforcement Administration Assistant Special Agent in Charge Clay Morris.
A two-count indictment charges Antonio Lavar Burton, a/k/a Fat Tony, 35, and Quincy Cortez McClendon, 35, with conspiring to distribute and possession with the intent to distribute fentanyl, that resulted in a death in November 2017 in Madison County. The grand jury returned the indictment against Burton and McClendon in August 2019.
“A tiny fraction of a gram of fentanyl can be lethal, and as dealers add it to more and more drugs, it is causing both fatal and non-fatal overdoses,” Town said. “Death and destruction of this criminal behavior will not be tolerated, and will be severely punished.”
“Time and time again we have warned drug dealers that we will relentlessly and aggressively bring them to justice in order to protect our children and communities,” Morris said. “We will not sit idly by while drug dealers continue to plague our streets with any drugs, especially fentanyl.”
The penalty for distributing a controlled substance that results in death is 20 years to life in prison and a maximum $1 million fine.
DEA investigated the case, in partnership with the Huntsville Police Department and the Madison County District Attorney’s Office and the United States Marshals Service, which Assistant U.S. Attorney Robert J. Becher Sr. is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Two Convicted for Concealing Corporate Contributions to U.S. Senate CampaignRead the Press Release
FRANKFORT, Ky. – A federal jury sitting in Frankfort found Gerald G. Lundergan, of Lexington, Ky., and Dale C. Emmons, of Richmond, Ky., guilty of conspiring to use more than $206,670 of corporate funds to make contributions to the campaign of a candidate for United States Senate and for causing the concealment of these contributions from the Federal Election Commission (FEC).
Brian A. Benczkowski, Assistant Attorney General of the Department of Justice’s Criminal Division; Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; and James Robert Brown, Jr., Special Agent in Charge of the Federal Bureau of Investigation’s Louisville Field Office, made the announcement.
After two hours of deliberations following a five-week trial, the jury convicted Lundergan of one count of conspiracy, one count of making corporate campaign contributions, four counts of causing the submission of false statements to the FEC, and four counts of causing the falsification of documents with the intent to obstruct and impede a matter within the FEC’s jurisdiction. The jury convicted Emmons of one count of conspiracy, one count of making corporate campaign contributions, two counts of causing the submission of false statements, and two counts of causing the falsification of documents with the intent to obstruct and impede.
According to the evidence presented at trial, Lundergan used the funds of S.R. Holding Company, Inc. (S.R. Holding), a company he owned, to pay for services provided by consultants and vendors to a campaign for a United States Senate seat in the 2014 election cycle. The candidate for this seat was Lundergan’s daughter, Alison Lundergan Grimes. The evidence established that Lundergan caused the issuance of a number of payments from S.R. Holding funds for services that included audio-video production, lighting, recorded telephone calls, and campaign consulting, between July 2013 and December 2015.
The corporate contributions also included monthly payments from S.R. Holding to Emmons and his company during this period. Emmons provided services to the campaign and sought and received compensation from Lundergan and S.R. Holding. Emmons also used the funds of his corporation, Emmons & Company, Inc., to pay other vendors and a campaign worker for services rendered to the campaign. Those services included recorded telephone calls, technological support services, and other campaign-related expenses.
“The jury’s verdict reinforces the fundamental principle that rules apply to everyone,” said United States Attorney Robert M. Duncan, Jr. “The defendants' actions were deliberately designed to evade reporting requirements that serve to protect the integrity and transparency of federal elections. Stated simply, they knew what they were doing was wrong. This prosecution would not have been possible without the dedicated work of the trial team and all our law enforcement partners.”
The evidence established that Lundergan and Emmons concealed these activities from other officials associated with the campaign. Their concealments caused the campaign unwittingly to file false reports with the FEC because the reports failed to disclose the source and amount of the corporate contributions.
“Fairly and honestly selecting our country's leaders is at the very foundation of our democracy, and the integrity of the system must be protected,” said James R. Brown, Jr., Special Agent in Charge Louisville Field Office. “Today's conviction should serve notice that FBI Louisville and the U.S. Attorney's Office are fully committed to investigating and prosecuting those who wish to corrupt the election process.”
The United States was represented by Assistant U.S. Attorneys Andrew T. Boone and Kate K. Smith and Deputy Chief Robert J. Heberle of the Criminal Division’s Public Integrity Section.
Lundergan and Emmons will appear for sentencing on January 22, 2020. They each face up to 5 years in prison for the conspiracy conviction, each corporate campaign contribution conviction, and each false statement conviction; up to 20 years in prison for each obstruction conviction; and a maximum fine of $250,000 per conviction. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing the sentences.
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Twice-Removed Mexican National Is Sentenced to 10 Years in Prison for Trafficking MethamphetamineRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Andrew Murray announced today that Adolfo Figueroa-Almanza, 32, of Mexico, was sentenced to 120 months in prison and five years of supervised release on charges of possession with intent to distribute methamphetamine, and illegal reentry by an aggravated felon. U.S. District Judge Robert J. Conrad, Jr. presided over the sentencing.
According to court documents and today’s sentencing hearing, on April 27, 2018, law enforcement in Union County attempted to conduct a traffic stop of the vehicle Figueroa-Almanza was driving. Figueroa-Almanza did not stop, and sped away in an attempt to evade law enforcement. Figueroa-Almanza was arrested shortly thereafter, after he tried to flee on foot. Court records show that, at the time of his arrest, Figueroa-Almanza was found to be in possession of approximately 898 grams of methamphetamine. Court records also show that Figueroa-Almanza was previously deported or removed from the United States on December 8, 2015, and again on March 24, 2017.
* * *
In a separate case, Judge Conrad also sentenced today Marco Pimentel De La Cruz, 33, of Mexico, to 24 months in prison. According to court records, on September 4, 2018, law enforcement determined that De La Cruz illegally possessed a SCCY Industries LLC model CPX-2 9 mm caliber handgun, and that he produced or attempted to produce a false identification document. In December 2018, De La Cruz pleaded guilty to unlawful possession of a firearm by a felon and production of a fraudulent identification document.
In making today’s announcement, U.S. Attorney Murray thanked the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Charlotte for their investigation of both cases, and commended the Union County Sheriff’s Office for their assistance with the investigation of Figueroa-Almanza.
Assistant U.S. Attorney Steven Kaufman is prosecuting the case against Figueroa-Almanza. Assistant U.S. Attorney Kenneth Smith is handling the prosecution against De La Cruz.
Truck Driver Pleads Guilty to Unlawfully Dumping 3,000 Gallons of Diesel Fuel, Prompting Evacuation of Elementary SchoolRead the Press Release
ALBANY – The driver of a diesel fuel truck who dumped thousands of gallons of diesel fuel onto land draining into a Thomasville, Georgia creek in 2018, shutting down a school and causing a federally-led clean-up, entered a guilty plea for his crime in federal court Tuesday, announced Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. Jaron Coleman, 40, of Oakville, Georgia, pleaded guilty to one count of Unauthorized Discharge of Oil in the Waters of the United States on Tuesday, September 10, 2019 before U.S. District Judge Louis Sands. Mr. Coleman’s sentencing date has not been scheduled.
According to the Statement of Fact entered in Court, on April 19, 2018, Mr. Coleman admitted that he dumped approximately 3,000 gallons of fuel on the ground near a gas station in Thomasville, Georgia after he realized he had loaded the wrong product for a delivery in Pelham, Georgia. Mr. Coleman, who was working for Eco Energy, did not have any permit or authorization to discharge the diesel fuel. The diesel fuel dumped on the ground migrated into an adjacent storm water drainage system that flows directly into a creek. The unnamed creek is a tributary of Good Water Creek which flows into Oquina Creek and then into the Ochlockonee River, a traditionally navigable water of the United States, and protected by the Clean Water Act. Under the Clean Water Act, diesel fuel is considered “oil” and the amount discharged was a harmful quantity. The discharge caused the Environmental Protection Agency (EPA) to engage in a costly clean-up and caused the evacuation of Garrison Pilcher Elementary School in Thomasville, Georgia on the same day as the incident, after school officials discovered a large amount of diesel fuel had swelled in ditches around the school.
“Illegal dumping into our waterways damages one of our most precious resources. Its harmful repercussions flow well beyond the confines of the initial dump site,” said Charlie Peeler, the U.S. Attorney. “We want the public to know that dumping is illegal and can carry serious consequences, including federal prosecution. I want to thank the EPA for its efforts to quickly respond to, investigate and clean up this mess.”
“The illegal discharge of fuel can threaten human health and damage the environment,” said Andy Castro, Special Agent in Charge of EPA's criminal enforcement program in Georgia. “EPA and our law enforcement partners are committed to enforcing environmental laws to protect our communities.”
The case was investigated by the EPA. Assistant U.S. Attorney Robert McCullers is prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Three Men Sentenced for the 2012 Bronx Murder of Brian GrayRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that SEAN PETER, a/k/a “Huggie,” JASON CAMPBELL, a/k/a “Holiday,” a/k/a “Fish,” and STEVEN SYDER were sentenced today for the murder of Brian Gray on October 2, 2012. PETER was sentenced to 23 years in prison, CAMPBELL was sentenced to 23 years in prison, and SYDER was sentenced to 20 years in prison. The defendants were convicted following a six-day jury trial in December 2018 before United States District Judge Naomi Reice Buchwald, who imposed today’s sentences.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As the evidence at trial established, the defendants murdered Brian Gray in cold blood and injured two others. Now, as a result of the jury’s verdict, and the extraordinary efforts of our law enforcement partners, the defendants will spend decades in prison for their heinous
According to the evidence introduced at trial:
On October 2, 2012, CAMPBELL and SYDER spotted Brian Gray and his friends at a neighborhood bodega in the Bronx. CAMPELL and SYDER soon met up with PETER, who had confronted Gray weeks earlier during an attempted drug robbery. The defendants traced the path of Gray and his friends and went to PETER’s residence where they armed themselves with guns stashed in a trash can outside. The defendants then ambushed Gray and his friends outside a residence on Barker Avenue and opened fire, fatally shooting Gray and injuring two others.
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In addition to their prison sentences, PETER, 36, CAMPBELL, 33, and SYDER, 36, all of the Bronx, New York, were each sentenced to three years of supervised release.
Mr. Berman praised the investigative efforts of the Violent Crime Task Force of the Federal Bureau of Investigation and the New York City Police Department. Mr. Berman also thanked the Teaneck Police Department for their assistance with the investigation.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Sagar K. Ravi, Jacqueline C. Kelly, and Christopher J. Clore are in charge of the prosecution.
Three Defendants Sentenced to over 33 Years Combined for Conspiracy to Distribute Methamphetamine in Fort Smith, ArkansasRead the Press Release
Fort Smith, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas announced today that three individuals were sentenced by the United States District Court for Conspiracy to Distribute Methamphetamine in the Fort Smith, Arkansas area. The Honorable P.K. Holmes, III presided over the sentencing hearings in the United States District Court in Fort Smith.
According to court records, on November 30, 2018, at approximately 12:08 p.m., A Fort Smith Police Department K-9 Officer conducted a traffic stop on a black Honda vehicle in the area of North 54th and Plum Street in Fort Smith, Arkansas, after identifying Bobby Sriprasert, as the driver of the vehicle. The officer had prior knowledge that Sriprasert had numerous warrants out of Fort Smith and Sebastian County. When the officer caught up with the Honda, it was backed into a driveway of a nearby residence and Sriprasert was standing outside the vehicle. The officer observed two individuals later identified as Omar Castanon and Cory Miller sitting in the black Honda. As the officer attempted to take Sriprasert into custody, he was able to see in plain view through the open window what he believed to be a firearm in the middle of back seat. While Sriprasert, Castanon, and Miller were taken into custody, a strong odor of burnt marijuana was omitting from inside the vehicle. A search of the vehicle resulted in the officer locating, approximately 360 grams of suspected methamphetamine inside a plastic gallon size zip lock bag, a marijuana cigarette (blunt), a Taurus, model Judge, .45/410 caliber, a Keltech, model P32, .32 caliber, a small amount of marijuana, digital scales and 6 baggies of suspected methamphetamine.
The suspected methamphetamine was sent to the DEA Southeast Laboratory for analysis and it was determined to be 294 grams of actual methamphetamine.
Defendants in this conspiracy received the following sentences:
Bobby Sriprasert, age 28, of Fort Smith, Arkansas was sentenced yesterday to 188 months in federal prison followed by five years of supervised release on one count of Conspiracy to Distribute Methamphetamine. Sriprasert was indicted in the Western District of Arkansas in December 2018 and plead guilty in March 2019.
Omar Castanon, age 23, of Fort Smith, Arkansas was sentenced yesterday to 120 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine. Castanon was indicted in the Western District of Arkansas in December 2018 and plead guilty in March 2019.
Cory Rashun Miller, age 30, of Fort Smith, Arkansas was sentenced today to 90 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine. Miller was indicted in the Western District of Arkansas in December 2018 and plead guilty in March 2019.
This case was investigated by the Fort Smith Police Department, Sebastian County Sheriff’s Office and the Drug Enforcement Administration. Assistant United States Attorney’s Candace Taylor prosecuted the case for the Western District of Arkansas.
Three Charged in Scheme to Defraud Four Churches and A DeveloperRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Philip R. Bartlett, Inspector-in-Charge of the New York Field Division of the United States Postal Inspection Service (“USPIS”), announced today the unsealing of an indictment charging JEFFREY N. CROSSLAND, RAYMOND E. ROBINSON, and STEPHEN C. PARENTE with participating in a conspiracy to defraud four churches and a development company out of more than $3.5 million. CROSSLAND was arrested this morning at his home in Santa Monica, California, ROBINSON was arrested this morning at his home in Leander, Texas, and PARENTE was arrested this morning at his home in Buford, Georgia.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, these three defendants devised a complex scheme to provide unconventional construction loans to churches and other development projects. But instead of helping to build houses of worship, the defendants allegedly built a house-of-cards, Ponzi-like scheme. Now all three have been arrested and face 20 years in prison for their crimes.”
USPIS Inspector-in-Charge Philip R. Bartlett said: “This case highlights the fact that when money is involved scammers don’t care where it comes from, even if it comes from parishioners at local churches. There will always be a day of reckoning and today is that day.”
According to the allegations contained in the Indictment[1]:
CROSSLAND was a managing member of Crossland Capital Partners, LLC (“Crossland Capital”), a purported broker dealer focused on “real estate related capital raising,” located in Santa Monica, California. He also controlled JC Funding Group, also located in Santa Monica, which was represented to be a corporate entity overseeing various subsidiary lending companies under the JC Funding name. PARENTE controlled Eagle Capital Investment Partners, LP (“Eagle Capital”), a purported private financial advisory consultancy practice based in Georgia. ROBINSON was a minister, and was employed by a church-building company based in Missouri, ran Ray Robinson Ministries – a purported consulting firm for churches – and, along with PARENTE, had an ownership interest in Eagle Capital.
In early 2013, CROSSLAND, ROBINSON, and PARENTE began working together purporting to offer unconventional loans to churches and others for construction projects. They targeted victims, particularly churches, by capitalizing on ROBINSON’s role as a minister and builder of churches. ROBINSON was responsible for finding clients, PARENTE was responsible for reviewing clients’ financial profiles and assisting them through the loan application process, and CROSSLAND was supposed to provide the funding for the loans.
CROSSLAND, ROBINSON, and PARENTE perpetrated a scheme in which they defrauded clients (the “Victims”) by inducing them to enter into purported loan agreements, in which the Victims were required to deposit money into a “production account” or “escrow holding account” at an Ohio bank (the “Escrow Account”). Based on the defendants’ false representations that the deposited money would remain safe and secure in the Escrow Account, the Victims deposited a total of more than $3.5 million into the Escrow Account.
Contrary to the defendants’ representations, the money did not remain in the Escrow Account. Shortly after the Victims wire-transferred their deposit money, an attorney who controlled the Escrow Account (“Attorney-1”), acting on CROSSLAND’s instructions, transferred more than half of the deposit money to bank accounts controlled by an individual in Michigan (“Individual-1”) and an entity controlled by Individual-1. Individual-1 then transferred much of that deposit money to bank accounts outside the United States. Attorney-1 also transferred nearly $1 million of the deposit money to the bank account of a New Jersey law firm. Thereafter, approximately $400,000 was transferred to a bank account controlled by a second individual (“Individual-2”), and the remaining approximately $600,000 was used to pay Individual-2’s tax obligations and legal fees.
In order to perpetuate the scheme and conceal the fraud, CROSSLAND had Attorney-1 and Individual-1 transfer some of certain Victims’ deposit money to other Victims and falsely represent that these money transfers were loan draw payments. In actuality, CROSSLAND never had money to fund the Victims’ loans. In addition to providing certain Victims with funds the defendants claimed to be loan draw payments, in order to perpetuate the scheme and conceal the fraud, CROSSLAND and ROBINSON also participated in telephone conversations with, and sent emails to, the Victims, with the intention of (a) lulling them into believing that their loans would be funded and/or their deposits returned, and (b) preventing them from reporting their conduct to law enforcement authorities and/or taking legal action against them.
In this way, from April 2013 through March 2015, CROSSLAND, ROBINSON, and PARENTE fraudulently induced Victims to transfer more than $3.5 million to the Escrow Account. The purported loans were never funded and millions of dollars in deposits were lost.
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CROSSLAND, 63, of Santa Monica, California, ROBINSON, 67, of Leander, Texas, and PARENTE, 51, of Buford, Georgia, are each charged with one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the U.S. Postal Inspection Service and Special Agents of the United States Attorney’s Office. Mr. Berman also thanked the Westchester County District Attorney’s Office, the Knoxville, Tennessee, field office of the Federal Bureau of Investigation, and the United States Attorney’s Office for the Eastern District of Tennessee for their assistance.
The case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorney Margery B. Feinzig is in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment charging the defendants and the descriptions of the Indictment constitute only allegations, and every fact described should be treated as an allegation.
Texas Man Charged with Failure to Register as a Sex OffenderRead the Press Release
NEW ORLEANS - U.S. Attorney Peter Strasser announced that JEREMY JASON SHIPMAN, age 30, of Bexar County, Texas, was charged Thursday, September 12, 2019 by grand jury indictment with one count of failure to register as a sex offender under the federal Sex Offender Registration and Notification Act (SORNA).
If convicted, SHIPMAN faces a maximum term of 10 years in prison and a $250,000.00 fine. He also faces a term of supervised release of between 5 years and life.
U.S. Attorney Strasser reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the United States Marshals Service, the New Orleans Police Department, and the Bexar County Sheriff’s Office in this matter. He also extended his thanks to the Orleans Parish District Attorney’s Office for their assistance. Assistant United States Attorney Spiro G. Latsis is in charge of the prosecution.
Tennessee and Alabama Women Sentenced for Bank and Mail FraudRead the Press Release
Jackson, Miss. –Shakedra Verleece Smith, of Nashville, Tennessee, and Sheri Youse a/k/a Sheri Johnson, of Birmingham, Alabama, were sentenced today by Senior U.S. District Judge Tom S. Lee for their roles in a conspiracy to commit bank and mail fraud, announced U.S. Attorney Mike Hurst and Jere T. Miles, Special Agent in Charge of Immigration and Customs Enforcement’s Homeland Security Investigations in New Orleans, and Shawn Wolfe, Resident Agent in Charge of the United States Secret Service in Mississippi.
Smith and Youse were each sentenced to 60 months’ probation with 6 months of home confinement. Smith was ordered to pay $40,000 in restitution and Youse was ordered to pay $55,000 in restitution.
Smith and Youse conspired with each other to apply for fraudulent automobile loans at Magnolia Federal Credit Union in Hinds County, Mississippi. The conspiracy spanned from March 2017 through October 2018. The fraudulent loan applications contained false information to include computer-generated numbers in lieu of their legitimate social security numbers and places of employment. Magnolia Federal Credit Union relied on the information provided in the automobile loan applications and processed loans in each of the defendant’s names. The false representations caused Magnolia Federal Credit Union to mail checks in amounts from $25,000 to $55,000 to what was later determined to be a fictitious automobile dealership. The defendants never intended to purchase or take possession of the vehicles that were referenced in the fraudulent loans.
The defendants were indicted on October 24, 2018. Youse pled guilty before Judge Lee on February 7, 2019, and Smith pled guilty on February 28, 2019.
“Those who defraud our financial institutions are defrauding all American taxpayers. I appreciate our law enforcement partners and prosecutor for catching these criminals and ensuring that our victims and taxpayers are protected,” said U.S. Attorney Hurst.
“This case makes clear that scammers who believe they can avoid accountability for their financial schemes are mistaken," said Jere T. Miles, Special Agent in Charge of ICE, Homeland Security Investigations in New Orleans. "HSI is committed to using its broad investigative authorities to investigate financial crimes and seek prosecution of offenders. We are appreciate of our partnership with the U.S. Attorney’s Office and U.S. Secret Service to successfully prosecute this case and will continue to work with our partners to identify and stop these crimes.”
The case was investigated by Homeland Security Investigations and the United States Secret Service. It was prosecuted by Assistant United States Attorney Erin Chalk.
Ten people indicted for their roles in a conspiracy in which the leader allegedly controlled large shipments of fentanyl stamped into pills, heroin, cocaine and other drugs from Mexico to Cleveland while using a cellular phone smuggled into prisonRead the Press Release
Ten people were indicted for their roles in a conspiracy in which the leader allegedly controlled large shipments of fentanyl stamped into pills, heroin, cocaine and other drugs from Mexico to Cleveland while using a cellular phone smuggled into his prison cell.
Named in the 17-count indictment filed in U.S. District Court in Cleveland are: Jose Lozano-Leon, 41, a Mexican citizen who was living in Painesville; Mario Hernandez-Leon, 31, of Mexico; Clemente Gutierrez-Meraz, 27, of Mexico; Lorne Franklin, 45, of Cleveland; Leevern Coleman, 49, of Bedford; Belen Orozco-Sigala, 36, of Painesville; Najee Amir Evans, 28, of Cleveland; Troy Pinnock, 47, of Cleveland; Damon Bybee, 60, of Garfield Heights, and Montez Vanburen, 38, of Cleveland.
All ten are charged with conspiracy to distribute controlled substances.
“The lead defendant is accused of running an international drug trafficking organization from a jail cell in Ohio,” U.S. Attorney Justin Herdman said. “He has come to this country illegally and allegedly made his living selling the same kinds of drugs that are killing our friends and neighbors. He is an importer of pain and will be prosecuted accordingly.”
“Arrests like these are saving lives," said DEA Detroit Field Division Special Agent in Charge Keith Martin. "In Ohio and other parts of the country, we are seeing an increase in these blue pills that at first glance appear to be legitimately produced oxycodone, but in fact are laced with fentanyl. By working collaboratively with our law enforcement partners, we are getting members of this drug trafficking organization off the streets where they can no longer push these lethal drugs into our communities.”
“Carfentanil is 10,000 times more powerful than morphine -- a speck the size of a grain of sand may be fatal,” Ohio Attorney General Dave Yost said. “Our communities are exponentially safer thanks to the work of this task force.”
According to the indictment and related court documents:
Lozano-Leon (“Lozano”) is alleged to be the leader of the Lozano drug trafficking organization. Lozano is indicted in October 2018 for illegal reentry. He was found to be in the United States on October 17, 2018, after having been deported in 2017. Lozano pleaded guilty to that charge earlier this year and was sentenced to 18 months in federal prison. He was incarcerated at the Northeast Ohio Correctional Center (NEOCC) in Youngstown.
Beginning at least in November 2018, Lozano allegedly used a smuggled, contraband cellular telephone to communicate with other defendants and manage the Lozano drug trafficking organization from his prison cell at NEOCC.
Lozano spoke frequently with the co-defendants and others to arrange shipments of drugs from Mexico and other locations to Cleveland, for distribution in Northeast Ohio. The group allegedly specialized in pills containing fentanyl and/or fentanyl analogues but which appeared to be prescription oxycodone, according to the indictment.
The group also allegedly trafficked heroin, methamphetamine, cocaine and marijuana, according to the indictment.
Hernandez-Leon (“Hernandez”) allegedly obtained drugs for the organization in Mexico and arranged for them to be smuggled into the United States and sent to co-conspirators in Northeast Ohio. He often traveled between Tijuana and San Diego to receive drug proceeds and deliver payments to suppliers in Mexico, according to the indictment.
Gutierrez-Meran (“Gutierriez”) operated from Mexico and arranged for shipments of drugs and transfers of money, according to the indictment.
Franklin received shipments of drugs in Cleveland arranged by Lozano, which he then sold the drugs in the Cleveland area. He also arranged for cash drug proceeds to be sent to Arizona, California and Mexico, according to the indictment.
Coleman, while incarcerated at a federal prison in Michigan, helped Lozano communicate with and direct actions of the co-conspirators, including Franklin, according to the indictment.
For example, shortly after midnight on April 11, 2019, Lozano and Gutierrez texted about a shipment of pills Gutierrez sent to a location in Cleveland. Minutes later, Lozano texted Franklin: “TOMORROW DA SKITTLES (fentanyl pills) ARRIVE AT (an address in Cleveland) AROUND NOON. WE GOTTA GET PAPER (money) ASAP SO WE CAN PAY EVERYBODY UP,” according to the indictment.
Later that day, Lozano and Franklin discussed via text the arrival of 5,000 fentanyl pills and that they needed to pay $27,500 for the drugs, according to the indictment.
On April 29, 2019, Lozano and Hernandez spoke by phone. Lozano explained he had recruited a driver who entered the U.S from Mexico and would drive drugs from San Diego to Cleveland, according to the indictment.
Lozano, on April 26, 2019, had a discussion by phone with another person about how strong Lozano wanted the fentanyl pills to be on a scale of one to ten. Lozano requested the pills by about an eight or nine, stating he did not want any “issues” (overdoses), according to the indictment.
Franklin, on June 16, 2019, had a conversation with an unidentified woman who asked Franklin why he wanted to be near Union Avenue. Franklin responded: “I sell drugs out there on Union. I sell drugs. I make my money on Union. That’s [what] I do on Union.” He later continued, “I sell (expletive) drugs! I’ve been selling drugs since 1992! I’ve been [at] the same (expletive) spot since 1992,” according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case was investigated by the Drug Enforcement Administration, Ohio Bureau of Criminal Investigation, U.S. Postal Inspection Service, U.S. Customs and Border Protection, Ohio State Highway Patrol, Cleveland Heights Police Department, Lake County Narcotics Drug Task Force, Cleveland Division of Police, Euclid Police Department, Cuyahoga County Sheriff’s Department, U.S. Marshal Service and Northeast Ohio Correctional Center. It is being prosecuted by Assistant U.S. Attorney Elliot Morrison.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The OCDETF Program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking, money laundering and violent criminal organizations operating domestically and internationally. The principle mission of the OCDETF Program is to identify, disrupt and dismantle the most serious drug trafficking, money laundering and violent criminal organizations and those primarily responsible for the nation’s drug supply.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Stony Brook University Professor Indicted for Stealing over $200,000 in Cancer Research FundsRead the Press Release
Geoffrey Girnun, an Associate Professor in the Department of Pathology and Director of Cancer Metabolomics at the Renaissance School of Medicine at Stony Brook University (“SBU”) was charged in a seven-count indictment unsealed today with theft of state and federal government funds, wire fraud and money laundering. Girnun allegedly submitted fraudulent invoices for research equipment to SBU from sham companies he created to conceal his theft of funds from cancer-related research grants issued by the National Institutes of Health (“NIH”) and SBU. Girnun was arrested this morning and is scheduled to be arraigned this afternoon in federal court in Central Islip before United States Magistrate Judge Arlene R. Lindsay.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Scott J. Lampert, Special-Agent-in-Charge, Department of Health and Human Services, Office of Inspector General (HHS-OIG), announced the charges.
According to the indictment, in or about 2013 and 2017, Girnun formed shell companies Atlas Metabolomics, LLC (“Atlas”) and Empyrean Biosciences, LLC (“Empyrean”), which purportedly provided research items and equipment for the defendant’s cancer-related research projects. Girnun then submitted fraudulent electronic invoices to SBU for payment to the companies for equipment, goods and services that were never received or provided. SBU used NIH and SBU grant funds to pay the shell companies over $200,000. Girnun transferred the NIH and SBU grant funds into his personal bank accounts and used the funds for personal expenses, including payments toward the mortgage on his home.
“Professor Girnun’s alleged theft of federal and state grant funds earmarked for cancer research can be explained in two words: pure greed,” stated United States Attorney Donoghue. “He will now be held to account in a federal courtroom.”
“As millions of Americans place their faith in programs established to fund cancer-related research, Geoffrey Girnun, a professor, allegedly siphoned money from grant funds established for this very purpose,” stated FBI Assistant Director-in-Charge Sweeney. “While people continued to suffer from their illnesses, Girnun made payments toward his personal mortgage with the money he stole. His conduct is despicable, and it won’t be tolerated.”
“Taxpayers fund medical research with the hope that promising scientific breakthroughs will result in much-needed treatments and cures for patients. Because the money for medical research is limited and the need for scientific advances is great, it’s incredibly important to clamp down on those who would steal such grant money for personal gain,” stated HHS-OIG Special Agent-in-Charge Lampert. “Professor Girnun will face the consequences of his actions.”
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Girnun faces up to 20 years’ imprisonment.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Erin E. Argo and Madeline O’Connor are in charge of the prosecution.
The Defendant:
GEOFFREY GIRNUN
Age: 48
Woodmere, New YorkE.D.N.Y. Docket No. 19-CR-416 (DJH)
St. Louis Man Indicted for Robbing the St. Louis Community Credit UnionRead the Press Release
St. Louis, MO –Shayne McKee, 27, of St. Louis, MO, was indicted today on three felony counts including bank robbery, brandishing a firearm during a crime of violence, and felon in possession of a firearm stemming from the armed robbery of the St. Louis Community Credit Union located at 7345 West Florissant Avenue in Jennings, Missouri.
According to the indictment, on May 5, 2018, McKee and an accomplice entered the St. Louis Community Credit Union on West Florissant Avenue in Jennings, Missouri. Once inside, McKee announced a robbery, pulled a gun on bank employees, and demanded money. Ultimately, McKee and his accomplice left with U.S. currency belonging to and in the custody of the credit union.
If convicted, the charge of bank robbery carries a maximum penalty of 20 years in prison and a $250,000 fine; felon in possession carries a maximum sentence of 10 years in prison and a $250,000 fine; and brandishing a firearm in furtherance of a crime of violence carries a mandatory minimum sentence of seven years in prison to be served consecutively to any other sentence imposed and a fine of $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The Federal Bureau of Investigation and the Saint Louis County Police Department are investigating this 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.
St. Charles Man Sentenced to 20 Years for Distributing Heroin that Resulted in DeathRead the Press Release
St. Louis, MO – Anthony Marion, a/k/a “Bird,” 36, of St. Charles, Missouri, was sentenced to 240 months in prison for heroin distribution that resulted in death from the use of such heroin. Marion appeared today before the Honorable Rodney W. Sippel.
According to court documents, co-defendant Lauren Martinez agreed to provide two individuals with heroin on February 26, 2016. She contacted her source, Marion, who met Martinez in the parking lot of a White Castle restaurant in St. Charles, Missouri. There, Marion provided heroin to Martinez, who then provided it to the victim. At the time she distributed the heroin, Martinez described it as “strong” and cautioned the victim to be careful. During a later interview, Martinez admitted that she knew multiple people who had overdosed on heroin.
Despite learning of the individual’s death, Martinez and Marion continued to distribute heroin in the subsequent weeks and months. As part of the on-going investigation into the heroin-related death, investigators arranged and made a controlled purchased of heroin from Marion and Martinez in March 2016. On May 9, 2016, Marion was arrested for possession of heroin and a firearm.
Marion pleaded guilty to one count of distributing heroin resulting in death in February and Martinez pleaded guilty to one count of heroin distribution in February and is scheduled to be sentenced on September 13.
The O’Fallon Police Department and the St. Charles County Regional Drug Task investigated this case.
Springdale Man Sentenced to 27 Years in Federal Prison for Sexual Exploitation of A ChildRead the Press Release
Fayetteville, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Forrest Hittle, age 35, was sentenced today to 327 months in federal prison without the possibility of parole followed by 25 years of supervised release on one count of Sexual Child Exploitation. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in early November of 2018, the mother of a 12 year old female reported to the Springdale Police Department that Forrest Hittle had sexually molested her daughter and took pictures of the abuse. During a forensic interview, the minor disclosed multiple instances of sexual abuse by Hittle. In response, law enforcement obtained a search warrant for Hittle’s cellular phone and computers. A forensic examination of his phone revealed a sexually explicit image of the minor. Hittle was subsequently arrested for Rape. He was later indicted on federal charges and pleaded guilty in March 2019.
This case was investigated by the Springdale Police Department, Homeland Security Investigations, and the Northwest Arkansas Internet Crimes Against Children (ICAC) Task Force. Assistant United States Attorney Dustin Roberts prosecuted the case for the United States.
South Texas Woman Sent to Prison for Attempting to Smuggle Meth Through CheckpointRead the Press Release
CORPUS CHRISTI, Texas – A 44-year-old Lyford woman has been sentenced for possessing with the intent to distribute more than 26 kilograms of methamphetamine, announced U.S. Attorney Ryan K. Patrick. Jacqueline Barrera pleaded guilty June 19, 2019.
Today, U.S. District Judge David S. Morales handed her a 120-month sentence to be immediately followed by five years of supervised release. In handing down the sentence, Judge Morales noted the seriousness of the offense and the potential sentence.
On April 17, 2019, Barrera drove a white Mitsubishi Lancer into the primary inspection area of the Border Patrol Checkpoint located near Sarita. A search of the vehicle revealed bundles of methamphetamine concealed within speaker boxes in the trunk of the car.
She has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This Drug Enforcement Administration conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
South Florida Health Care Facility Owner Sentenced to 20 Years in Prison for Role in Largest Health Care Fraud Scheme Ever Charged by the Department of JusticeRead the Press Release
A federal district judge sentenced a south Florida health care facility owner to 20 years in prison today after being found guilty in the largest health care fraud scheme charged by the U.S. Justice Department. The case involves a decades-long scheme of kickbacks and money laundering in connection with fraudulent claims to Medicare and Medicaid for services deemed medically unnecessary.
Philip Esformes, 50, of Miami Beach, Florida, was sentenced by U.S. District Judge Robert N. Scola of the Southern District of Florida, who also sentenced Esformes to three years supervised release. A hearing to determine restitution and forfeiture has been scheduled for Nov. 21.
After an eight-week jury trial, Esformes was found guilty in April 2019 of one count of conspiracy to defraud the United States, two counts of receipt of kickbacks in connection with a federal health care program, four counts of payment of kickbacks in connection with a federal health care program, one count of conspiracy to commit money laundering, nine counts of money laundering, two counts of conspiracy to commit federal program bribery and one count of obstruction of justice
“For nearly two decades, Philip Esformes bankrolled his lavish lifestyle with taxpayer dollars, paying bribes with impunity and robbing Medicare and Medicaid by billing for services that people did not need or get,” said Assistant Attorney General Brian A. Benczkowski. “It is a credit to the tenacity of our prosecutors and law enforcement partners that the man behind one of the biggest health care frauds in history will be spending 20 years in prison.”
“Philip Esformes will now spend years in prison for orchestrating a kick-back and money laundering scheme that defrauded America’s health care system out of millions of dollars,” said U.S. Attorney Fajardo Orshan of the Southern District of Florida. “The U.S. Attorney’s Office for the Southern District of Florida remains committed to working with our partners at the Department’s Criminal Division, the FBI and HHS-OIG to root out health care fraud and protect taxpayer dollars for patient care.”
“Philip Esformes is a man driven by almost unbounded greed,” said Deputy Special Agent in Charge Denise M. Stemen of the FBI’s Miami Field Office. “The illicit road Esformes took to satisfy his greediness led to millions in fraudulent health care claims, the largest amount ever charged by the Department of Justice. Along that road, Esformes cycled patients through his facilities in poor condition where they received inadequate or unnecessary treatment, then improperly billed Medicare and Medicaid. Taking his despicable conduct further, he bribed doctors and regulators to advance his criminal conduct and even bribed a college official in exchange for gaining admission for his son to that university. The FBI and its partners are constantly investigating health care fraudsters, big and small, who steal money from taxpayers at the expense of patients in need of quality medical care.”
“Healthcare fraud is a hidden tax costing billions of dollars every year and, as in this case, too often threatens the very health of vulnerable patients,” said Special Agent in Charge Omar Pérez Aybar for the Office of Inspector General of the U.S. Department of Health and Human Services (HHS-OIG). “Esformes – who provided shoddy medical care – stands convicted of fraud and is now paying the price. We continue working tirelessly with our law enforcement partners to protect people in government health programs.”
According to the evidence presented at trial, between January 1998 and July 2016, Esformes led an extensive health care fraud conspiracy involving a network of assisted living facilities and skilled nursing facilities he owned. Esformes bribed physicians to admit patients into his facilities. Then, he cycled the patients through his facilities where they often failed to receive appropriate medical services or received medically unnecessary services billed to Medicare and Medicaid. Several witnesses testified to the poor conditions in the facilities and the inadequate care patients receive.
Esformes concealed the poor conditions and scheme from authorities by bribing an employee of a Florida state regulator for advance notice of surprise inspections scheduled to take place at his facilities. The evidence further showed Esformes used his criminal proceeds to make a series of extravagant purchases, including luxury automobiles and a $360,000 watch. Esformes also used criminal proceeds to bribe the basketball coach at the University of Pennsylvania in exchange for his assistance in gaining admission for his son into the university.
Altogether, the evidence established that Esformes personally benefited from the fraud and received in excess of $37 million.
Esformes’s coconspirator, physician’s assistant Arnaldo Carmouze, previously pleaded guilty to conspiracy to commit health care fraud and was sentenced on April 10, 2019, to 80 months in prison and was ordered to pay $12,590,761 in restitution. Co-conspirator Odette Barcha also pleaded guilty to one count of conspiracy to violate the anti-kickback statute. Barcha was sentenced on April 3 to 15 months in prison and three years of supervised release and was ordered to pay $704,516.00 in restitution.
This case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida, with assistance from Florida Attorney General’s Office Medicaid Fraud Control Unit. The case was prosecuted by Fraud Section Acting Health Care Fraud Chief Allan Medina and Assistant Chief Drew Bradylyons, and Trial Attorneys Elizabeth Young, James Hayes and Jeremy Sanders, as well as Assistant U.S. Attorneys John Shipley and Dan Bernstein of the Southern District of Florida. Assistant U.S. Attorneys Alison Lehr, Nalina Sombuntham and Daren Grove of the Southern District of Florida handled the forfeiture aspects of the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.
Somerset Man Pleads Guilty to Illegal Participation in Bank LoanRead the Press Release
BOSTON – A Somerset man pleaded guilty in federal court in Springfield yesterday to illegally participating in a loan with a financial institution.
Anthony Riccitelli, 60, pleaded guilty to one count of participation in loan with financial institution. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Dec. 11, 2019. In July 2019, Riccitelli was charged by information.
Riccitelli admitted today that he loaned $80,000 to Diecast Connections Company, Inc., based in Chicopee, at the same time that he served as a bank officer for Blue Hills Bank. Riccitelli proposed that Blue Hills Bank enter into a $4.2 million loan package with Diecast without disclosing to Blue Hills Bank the $80,000 in private loans he had made to Diecast. Shortly after the closing on the loan, Riccitelli received $80,000 of the loan proceeds, unbeknownst to Blue Hills Bank.
The charging statute provides for a sentence of up to 30 years in prison, five years of supervised release and a fine of $1 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 Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorney Alex J. Grant of Lelling’s Springfield Branch Office is prosecuting the case.
Settlement with the Department of Justice and the EPA Prohibits Performance Diesel Inc. from Selling Diesel Engine Defeat DevicesRead the Press Release
Today, the U.S. Department of Justice and the Environmental Protection Agency (EPA) announced a settlement with Performance Diesel Inc. (PDI) to resolve alleged violations of the Clean Air Act (CAA) associated with the manufacture, sale and installation of aftermarket products that defeat the emissions control systems of heavy-duty diesel engines. As part of the settlement, PDI has agreed to stop the sale of all products the government alleges violate the CAA. PDI will also pay a civil penalty of $1,100,000 over two years due to their limited financial ability to pay a higher penalty.
“This settlement prohibits PDI from selling illegal devices that defeat motor vehicle emissions controls and make an end run around federal laws that protect the public’s health,” said Principal Deputy Assistant Attorney General Jonathan D. Brightbill of the Justice Department’s Environment and Natural Resources Division. “The Justice Department will not tolerate this abuse of law and will continue to prosecute those responsible for trading in these illegal products.”
“Performance Diesel Inc. manufactured, sold and installed thousands of aftermarket defeat devices, and as a result thousands of heavy-duty trucks now operate without the filters, catalysts and other emissions controls that keep our air clean,” said EPA Assistant Administrator for Enforcement and Compliance Assurance Susan Bodine. “Today’s settlement will prevent future violations by requiring PDI to ensure that their products do not adversely affect emissions.”
The United States alleges that PDI sold at least 5,549 aftermarket products that defeat the emissions control systems of heavy-duty diesel engines in violation of the CAA. Before May 1, 2018, PDI manufactured, sold and installed electronic tuning software, known as “tunes,” that allowed PDI to disable emissions control devices, or otherwise bypass, defeat or render inoperative parts of the engine used to comply with CAA emission standards. PDI’s aftermarket products are designed for use with numerous models of heavy-duty diesel engines manufactured by Caterpillar, Cummins, Detroit Diesel, International and Paccar.
Included in the terms of this settlement, PDI must:
- Stop sale of all products that violate the CAA according to the government’s complaint.
- For new tuning products, demonstrate a reasonable basis that their products do not increase emissions by obtaining a California Air Resources Board (CARB) Executive Order (EO) prior to manufacture, sale, offering for sale and installation of products.
- For existing products not currently covered by a CARB EO, demonstrate a reasonable basis by submitting a complete application to CARB that covers the tunes prior to manufacture, sale, offering for sale and installation. Under this consent decree, a complete application includes emission test results sufficient to satisfy CARB’s requirements for obtaining a CARB EO.
The settlement has been lodged in the U.S. District Court for the State of Utah for a period of 30 days for public notice and comment. The first penalty payment is due within thirty days of entry of the Consent Decree. To read the Consent Decree: https://www.justice.gov/enrd/consent-decrees.
EPA has recently added a National Compliance Initiative on Stopping Aftermarket Defeat Devices for Vehicles and Engines. This case is an important step in that initiative. To read about EPA’s National Compliance Initiative: https://www.epa.gov/enforcement/national-compliance-initiative-stopping-aftermarket-defeat-devices-vehicles-and-engines.For more information on the settlement, please visit: https://www.epa.gov/enforcement/performance-diesel-inc-clean-air-act-settlement-information-sheet.
Serial Robber Sentenced to Prison for 13 Armed RobberiesRead the Press Release
RICHMOND, Va. – A Chesapeake man was sentenced today to more than 12 1/2 years in prison for using a knife to rob over a dozen convenience stores and gas stations within the Eastern District of Virginia.
“Over 10 days earlier this year, the Carter brothers went on a violent and dangerous crime spree,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Michael Carter not only robbed 13 businesses, but he used a knife to threaten, to intimidate, and to terrify innocent individuals inside those businesses. The Carter brothers have shown they are a clear danger to the safety of our communities.”
According to court documents, from January 5 through January 15, Michael Thomas Carter, 29, Michael Carter, with the help of his brother, Joseph Carter, went on a 10 day crime spree that included numerous robberies and an attempted robbery of businesses in Richmond, Henrico, Chesterfield, and Hanover. Wearing a mask and armed with a knife, Michael Carter robbed 13 convenience stores and attempted to rob yet another convenience store. The FBI’s Central Virginia Violent Crimes Task Force (CVVCTF), working with local law enforcement, was able to identify the Carter brothers as the suspects involved in this string of robberies in which one masked man, armed with a knife, entered each business to demand cash from the business before fleeing the scene. Officers of the CVVCTF identified the car used by the Carters and began surveillance.
“In a brief but violent crime spree, Michael Thomas Carter and his accomplices committed more than a dozen armed robberies in the City of Richmond, Chesterfield, Hanover and Henrico Counties, targeting citizens and businesses alike,” said David W. Archey, Special Agent in Charge of the FBI’s Richmond Field Office. “The FBI’s Central Virginia Violent Crimes Task Force worked with its local partners to end Mr. Carter’s criminal activity, and will continue to investigate violent offenders who target commercial institutions for robbery. The FBI is grateful for these partnerships, as well as that of the United States Attorney’s Office, during this investigation.”
On January 15, law enforcement located the car approximately 10 minutes after the Carters robbed a gas station in Chesterfield. Detectives followed the car as the Carters drove into Richmond, and watched as Joseph Carter purchased narcotics from two locations in the city. When a traffic stop was initiated, Michael Carter ran from the car and hid in the woods. With the help of Air Unit and K-9 units, officers were able to locate Michael Carter and the clothing that he attempted to discard in the woods. Knives, clothing, and a black mask were recovered from the car. During the execution of a search warrant on the home of the brothers, some items stolen from the businesses were recovered.
Joseph Carter will be sentenced on October 10 for his role as the getaway driver for these crimes.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and David W. Archey, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by U.S. District Judge M. Hannah Lauck. Assistant U.S. Attorney Janet Jin Ah Lee prosecuted the case.
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. 3:19-cr-56.
Senegalese National Admits Impersonating Deceased U.S. Citizen Since 1988Read the Press Release
Special Assistant U.S. Attorney Jeffrey D. Hill (619) 546-7924
NEWS RELEASE SUMMARY – September 12, 2019
SAN DIEGO – Almamy Baba Ly pleaded guilty in federal court today to identity theft charges, admitting that he misused the identity of a deceased American citizen for 31 years in order to obtain identification documents and thousands of dollars in federal, state and local government benefits.
During a hearing before U.S. Magistrate Judge Jill L. Burkhardt, Ly acknowledged that in 1988 he assumed the identity of Lyle Lindsey, a native San Diegan and son of a military veteran, who died in a tragic automobile accident as a toddler in 1957. Ly admitted that he was born in Senegal, that he was without legal status to reside in the United States, and that he used an altered copy of Lindsey’s birth certificate to apply first for a Social Security number and then for a California Identification Card and Driver’s License. Over the next 31 years, Ly was convicted of numerous crimes, including drug sales and robbery, under Lyle Lindsey’s identity.
Ly also pleaded guilty to Receiving Stolen Public Money, admitting that from 2012 until 2019, he used Lindsey’s identity to apply for and receive over $80,000 in federal student loans and Pell Grants. In his plea agreement, Ly also admitted to applying for CalFresh / Supplemental Nutrition Assistance Program (SNAP) benefits in 2017 as Lindsey, and to thereafter receiving thousands of dollars in benefits that he was not legally entitled to receive.
In July 2019, United States Border Patrol agents simultaneously served a search warrant and arrested Ly at his residence in La Mesa, California. During the search, agents seized a recently issued Senegalese national identification card with Ly’s true name and date of birth. The arrest and search warrant were the culmination of a lengthy investigation by the United States Border Patrol, with the assistance of the California Department of Motor Vehicles, the Department of State, and the United States Embassy and Homeland Security Investigations in Dakar, Senegal.
“This was an especially sophisticated and devious fraud that victimized U.S. taxpayers for decades and forced a family to revisit a traumatic loss,” said U.S. Attorney Robert Brewer. “Finding out that someone is committing crimes in the name of a child who was lost many years ago brings unacceptable anxiety to his survivors. Identity thieves target hundreds of thousands of deceased Americans every year, but I’m proud to say that because of the efforts of federal agents and prosecutor Jeffrey Hill, one of the most egregious and enduring violators has been stopped.”
On behalf of the United States Border Patrol, San Diego Chief Patrol Agent Douglas E. Harrison stated: “I am grateful and proud of the tenacity, persistence, and hard work that our agents and law enforcement partners have demonstrated over the past several months, which have resulted in this conviction.”
As a part of his plea agreement, Ly agreed to make full restitution to the United States Department of Education and to the County of San Diego for the $88,551 in government benefits that he fraudulently obtained by his crimes. Ly faces up to 55 years in federal prison and a fine of up to $1 million at his sentencing before U.S. District Judge Anthony J. Battaglia on December 2, 2019.
DEFENDANT Case Number 19-cr-2864-AJB
Almamy Baba Ly La Mesa, California.
SUMMARY OF CHARGES
Unlawful Production of an Identification Document – Title 18, U.S.C., Section 1028(a)(1)
Maximum penalty: Fifteen years in prison, $250,000 fine
Theft of Public Property – Title 18, U.S.C., Section 641
Maximum penalty: Ten years in prison, $721,817.70 fine, restitution
AGENCIES
United States Border Patrol – Sector Intelligence Unit / Chula Vista Station
United States Homeland Security Investigations
California Department of Motor Vehicles Investigations Division
Bureau of Public Assistance Investigations, County of San Diego
Sacramento Man Indicted for Assaulting a Court Security OfficerRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment today against Adam Fuller, 33, of Sacramento, charging him with assault on a federal employee or officer, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Aug. 27, Fuller assaulted a court security officer outside the United States Federal Courthouse in Sacramento by punching him in the face, causing injury to the security officer.
This case is the product of an investigation by the Federal Protective Services and U.S. Marshals Service. Assistant U.S. Attorney Cameron L. Desmond and Special Assistant U.S. Attorney Stephen Cody are prosecuting the case.
If convicted, Fuller faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Richmond Man Sentenced to 130 Months for Armed Drug TraffickingRead the Press Release
LEXINGTON, Ky.—Edward J. Anderson, IV, 32, of Richmond, was sentenced Thursday to 130 months in federal prison, by United States District Judge Karen K. Caldwell, for possession with intent to distribute fentanyl and methamphetamine and possession of a firearm in furtherance of drug trafficking.
In September 2018, officers with the Madison County HIDTA Task Force, arrested Anderson outside his home in Madison County. During a search officers located approximately 8 ounces of fentanyl, approximately 24 ounces of methamphetamine, and a stolen 9mm handgun. During his plea, Anderson admitted the firearm possessed in furtherance of drug trafficking.
Under federal law, Anderson must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the United States Probation Office for three years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky and Tommy Estevan, Special Agent in Charge of the ATF Louisville Field Division, jointly made the announcement.
The ATF, Madison County HIDTA task force, and the Richmond Police Department conducted the investigation. The United States was represented by Assistant United States Attorney Cynthia T. Rieker.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The PSN program was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Redding Man Charged with Child Pornography OffensesRead the Press Release
SACRAMENTO, Calif. — On August 29, a federal grand jury returned a two-count indictment against William Dan Powell, 67, of Redding, charging him with possession of child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, Powell possessed pornographic material depicting prepubescent children. Powell is scheduled to be arraigned today in Sacramento.
This case is the product of an investigation by the Federal Bureau of Investigation and the Shasta County Sheriff’s Office. Assistant U.S. Attorney Mira Chernick is prosecuting the case.
If convicted, Powell faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Ramer Man Sentenced to 111 Months in Prison for Federal Firearms and Drug ChargesRead the Press Release
Montgomery, AL – Yesterday, Willis Lydell Cogburn, 31, of Ramer, Alabama, was sentenced to 111 months in prison for being a felon in possession of a firearm, possession of a controlled substance with intent to distribute, and possession of a firearm in furtherance of a drug trafficking crime, announced United States Attorney Louis V. Franklin, Sr., Troy Police Chief Randall Barr, and ATF Special Agent in Charge Marcus Watson. Following his prison sentence of just over nine years, he will be subject to five years of supervised release. There is no parole in the federal system.
The evidence presented at his June 2019 trial showed that in the early morning hours of Saturday, July 8, 2017, Troy Police officers were patrolling the downtown area after responding to a disturbance call. After the issues with the initial call were cleared, officers began to patrol the area near a bar on Love Street where a crowd had gathered. There they found Cogburn in a vehicle with his car stereo playing loudly. When officers approached the car to address the noise issue, they noticed an open container of alcohol in the vehicle and detected the smell of marijuana.
Upon questioning, Cogburn became uncooperative and confrontational. Officers asked Cogburn to get out of the vehicle and opened the driver’s door to remove him. Cogburn then placed the vehicle in reverse and drove backwards for approximately 50 feet before hitting another vehicle and coming to a stop. A Troy police officer was standing in the car’s doorway and had to cling to the vehicle to avoid being struck by the open door as the car moved backwards. Luckily, no one was injured.
Once Cogburn was removed from the vehicle, officers searched the car and found a significant amount of marijuana, digital scales, and a .38 caliber revolver. Small amounts of cocaine and methamphetamine were also discovered. Having previously been convicted of a felony, Cogburn was prohibited from possessing a firearm.
“Unfortunately, carrying guns and selling drugs are synonymous,” stated U.S. Attorney Franklin. “Firearms are used by dealers to protect their drugs and money, with no regard to the danger it presents to our communities or law enforcement. I am thankful for the work of the Troy Police Department and the ATF in this case, and I am grateful that no officers were injured despite the reckless behavior of the defendant.”
“This was a very dangerous situation that escalated quickly,” stated Troy Police Chief Randall Barr. “Our officers did a great job taking this individual into custody and showed great restraint in preventing the situation from escalating any further. We truly appreciate our partnership with the U.S. Attorney’s office and the great work that they do to help us bring these cases to a successful conclusion. Cogburn’s arrest, conviction and significant sentence should make a strong statement and go a long way in keeping dangerous criminals and drug dealers off of our streets and out of our community.”
ATF Special Agent in Charge, Marcus Watson remarked, “Protecting the public by the removal of the criminal element that commits acts of violence with a firearm was the result of the combined efforts by ATF, the Troy Police Department and the U.S. Attorney’s Office.”
The case was investigated by the Troy Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with assistance from the Montgomery County Sheriff’s Office and the Alabama Department of Forensic Sciences. Assistant United States Attorneys Joshua Wendell and Robert Nichols prosecuted the case.
Project Safe Neighborhoods (PSN) Update: Six Appear in Federal Court for Gun CrimesRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced that six defendants appeared in federal court this week for various gun crimes.
“As part of PSN, we’re working hard with ATF and state and local law enforcement to reduce violent crime in our communities,” said United States Attorney Mike Stuart. “Prosecuting violators of federal gun laws is vital to our efforts. Week after week, we take more prohibited persons with guns off our streets and put them behind bars.”
Four men appeared in United States District Court in Charleston on felon in possession charges:
Tijuan Tyson, 31, of Charleston, was sentenced to 24 months in prison for being a felon in possession of a firearm. Tyson previously admitted that on October 19, 2015, he was approached by officers because he looked similar to a suspect involved in a robbery. He appeared nervous, had his hands in his pocket, and dropped a bag of suspected marijuana on the ground prior to taking off on foot. He was apprehended and during a search incident to arrest, officers located the loaded and operable Arsenal CO, 9 mm caliber pistol, which was listed as stolen, in his pocket. Tyson is prohibited from possessing firearms because he has been convicted of the felony of Use of an Access Device With the Intent to Defraud. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Charleston Police Department conducted the investigation. United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney Ryan A. Saunders handled the prosecution.
Dakota Zachary Williams, 24, of St. Albans, was sentenced to 15 months in prison for possession of a firearm by a felon. At public court hearings, it was established that on January 19, 2019, police stopped Williams for erratic driving in St. Albans. Williams told an officer that he was swerving because he was rolling a blunt while driving and that he had marijuana in his cup holder. Investigators recovered the marijuana and also found a loaded pistol under the driver’s seat. They arrested Williams and found that he was carrying more marijuana, various pills, and around 3 grams of methamphetamine. Further, on February 12, 2019, police arrested Williams again in the parking lot of Walmart in Nitro, where Williams had shoplifted an item. On scene, investigators found Williams carrying another loaded firearm, marijuana, and a box of ammunition. Williams had previously been convicted for felony wanton endangerment in 2016 and his right to possess a firearm was not restored. The St. Albans Police Department, Nitro Police Department, and the ATF conducted the investigation. Senior United States District Judge John T. Copenhaver, Jr., presided over the hearing. Assistant United States Attorney Drew O. Inman handled the prosecution.
Shannon Brown, 43, of Charleston, pled guilty to being a felon in possession of a firearm. Brown admitted that on June 6, 2019, he possessed a Smith and Wesson, .40 caliber handgun, in and affecting interstate commerce. Brown had previously been convicted of two prior drug felonies on August 12, 1998 and July 13, 2004, in the Circuit Court of Kanawha County, WV, and was aware that he was prohibited from possessing a firearm. Brown faces up to 10 years in prison when sentenced on January 30, 2020. The Charleston Police Department and the ATF conducted the investigation. United States District Judge Irene C. Berger presided over the hearing. Assistant United States Attorney Steven I. Loew is handling the prosecution.
William Ware, 41, of Ohio, was sentenced to 60 months in prison for being a felon in possession of ammunition. On May 18, 2017, Charleston Police investigated a call that shots were fired on 6th Street in Charleston. The defendant and his vehicle matched the description provided by witnesses of who fired the shots. Charleston Police found magazine with 12 shot of ammunition in the driver side floor of the vehicle after pulling Defendant over on Bagley Street. Defendant had three prior felony convictions, and did not have his rights restored to possess firearms or ammunition. The Charleston Police Department and the ATF conducted the investigation. United States District Judge Irene C. Berger presided over the hearing. Assistant United States Attorney Chris Arthur handled the prosecution.
In addition, two Huntington men pled guilty before United States District Judge Robert C. Chambers to being felons in possession of firearms.
Randall Allen Eplion, Jr., 30, admitted that, on April 5, 2019, officers with the Huntington Police Department executed a search warrant at his residence located at 427 Rear 6th Avenue, Apartment E in Huntington . During the search, officers found Eplion in possession of a number of firearms including a .45 caliber pistol, a 5.56 mm rifle, and a 12 gauge shotgun. Eplion was prohibited from possessing firearms based on a prior conviction for first degree robbery in Cabell County. Eplion admitted as part of his plea that he possessed a total of 21 firearms that officers located during the search. Some of the firearms were stolen and Eplion admitted that he traded methamphetamine for a number of the firearms. Eplion also admitted that the 5.56 mm rifle qualified as a machinegun, the 12 gauge shotgun qualified as a short-barrel shotgun, and that neither of the firearms were registered as required by federal law. Eplion faces up to 10 years in prison when sentenced on December 16, 2019. The ATF and the Huntington Police Department conducted the investigation. Assistant United States Attorney Joseph F. Adams is handling the prosecution.
Jeremy Bartram, 27, admitted that on July 6, 2019 the West Virginia State Police conducted a traffic stop on his vehicle in the area of 16th Street Road in Huntington. Bartram admitted to the Trooper that he possessed a handgun. The Trooper then searched the vehicle and found the firearm in a bag between Bartram’s feet. Bartram is prohibited from possessing a firearm because he was previously convicted of a felony offense. Bartram faces up to 10 years in prison when sentenced on December 16, 2019. The West Virginia State Police conducted the investigation. Assistant United States Attorney Stephanie Taylor is handling the prosecution.
These cases are being prosecuted as part of the Project Safe Neighborhoods (PSN) program, 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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Pittsburgh Felon Pleads Guilty to Bank Robbery and Firearms ChargesRead the Press Release
PITTSBURGH, Pa. - A former resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to charges of bank robbery and being a felon in possession of a firearm, United States Attorney Scott W. Brady announced today.
Christian Elijah Moore, age 29, pleaded guilty to two counts before Chief United States District Court Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that, on September 5, 2017, Moore walked into the First National Bank in Homestead, PA and asked for change. While the teller was providing him with change, Moore placed his wallet on the counter and stated that his friend wanted him to give her a note. In the note, Moore threatened to shoot the teller if he she did not provide him with money.
The teller provided Moore with $1,055.00, as well as a GPS tracking device. As Moore was walking from the bank, he removed identifiable clothing and left the items in the bushes of the homes along his path. Officers later recovered the gray Adidas jacket that he was wearing during the bank robbery from the bushes of a home near the bank. He then walked to a jitney station and asked for a ride to Oakland. The jitney driver proceeded across the Homestead Grays Bridge. Moore observed Homestead police, who were alerted to the area by the GPS device, and instructed the jitney driver to make a U-turn and proceed to Hazelwood. After observing the vehicle make a U-turn, police stopped the vehicle. Moore immediately stated that he had just robbed the bank and the jitney driver had nothing to do with it. Officers recovered a loaded Kel-Tec semi-automatic .9mm pistol as well as the money and tracking device from Moore. As part of his confession, Moore admitted that when he woke up that day, he decided to rob a bank because he needed money and did not like having to wait.
Chief Judge Hornak scheduled sentencing for January 16, 2020. The law provides for a maximum total sentence of not more than 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history of the defendant.
Pending sentencing, the court ordered that Moore remain detained.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and Homestead Police Department conducted the investigation that led to the prosecution of Moore.
Pharmacy Owner Charged with Illegally Distributing Oxycodone and Operating A Health Care Fraud and Kickback SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Raymond P. Donovan, Special Agent in Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), Scott J. Lampert, Special Agent in Charge of the New York Office of the U.S. Department of Health and Human Services, Office of Inspector General (“HHS-OIG”), and James P. O’Neill, Commissioner of the New York City Police Department (“NYPD”), announced today the arrest of MICHAEL PAULSEN, the owner and operator of a pharmacy located in Staten Island. The Indictment unsealed today charges PAULSEN with conspiring to illegally distribute oxycodone, committing health care fraud, and providing “kickbacks” to customers from Medicare and Medicaid reimbursements to induce them to obtain substances from his pharmacy. PAULSEN will be presented before U.S. Magistrate Judge James L. Cott later today. The case is assigned to U.S. District Judge Paul A. Crotty.
U.S. Attorney Geoffrey S. Berman stated: “As alleged, the defendant abused his position as a pharmacy owner and his access to controlled substances for his personal gain, directly contributing to the glut of highly addictive opioids flooding the streets of the New York City area. Now he faces justice for his contribution to the opioid epidemic plaguing our communities.”
DEA Special Agent in Charge Raymond P. Donovan said: “Opioid abuse is America’s deadliest enemy killing more than 130 people daily. It is alleged that lives were endangered every time Michael Paulsen opened Regal Remedies’ front or back door to peddle unprescribed opioids. Working with our local, state, and federal partners, DEA’s priority is to investigate those responsible for pushing diverted pills, heroin, and fentanyl into our communities.”
HHS-OIG Special Agent in Charge Scott J. Lampert said: “Fueled by greed, opioid fraud schemes have devastated many communities around this country. We will continue to work with our law enforcement partners, and all available resources will be used to thoroughly investigate such alleged crimes.”
NYPD Commissioner James P. O’Neill said: “Opioids have a well-known history of destroying lives and devastating communities and this is why the NYPD and its law enforcement partners work relentlessly to bring to justice those who traffic them and seek to profit from them illegally. I want to thank the investigators and prosecutors who worked on this case - it is their dedication and hard work that keeps our communities safe.”
According to the allegations in the Indictment[1]:
From approximately March 2016 to September 2019, PAULSEN, who owned and operated a pharmacy in Staten Island, conspired with others to unlawfully distribute thousands of oxycodone pills to individuals who PAULSEN knew had no legitimate medical need for them, in exchange for lucrative cash payments.
In total, during that period, PAULSEN ordered for his pharmacy more than 170,000 oxycodone pills from pharmaceutical suppliers. However, during the same period, PAULSEN’s pharmacy dispensed approximately only 62,000 of those oxycodone pills with a prescription, or slightly more than one-third of the oxycodone pills that were ordered.
PAULSEN instead distributed significant quantities of oxycodone pills to the pharmacy’s customers, including his co-conspirators, who either did not have a prescription or had fraudulent prescriptions, in exchange for thousands of dollars. PAULSEN knew that at least some of those oxycodone pills would be resold at the street level. PAULSEN is not a registered pharmacist and is not authorized to distribute controlled substances such as oxycodone in New York State.
While operating his pharmacy, and in connection with his unlawful distribution of oxycodone pills, PAULSEN also perpetrated a scheme to defraud Medicare, Medicaid, and other insurance providers. PAULSEN instructed customers of his pharmacy to order particular products that were not medically necessary. PAULSEN then billed Medicare, Medicaid, and other insurance providers for reimbursements for those products, and provided a portion of those reimbursements as financial compensation to the customers.
* * *
PAULSEN, 41, of Staten Island, is charged with one count of conspiring to distribute and possess with the intent to distribute oxycodone illegally, which carries a maximum sentence of 20 years in prison; one count of committing health care fraud, which carries a maximum sentence of 20 years in prison; and one count of paying kickbacks to induce individuals to purchase items under a Federal health care program, which carries a maximum sentence of 10 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentence would be determined by a judge.
Mr. Berman praised the outstanding investigative work of the DEA’s New York Tactical Diversion Squad, which comprises agents and officers from the DEA, the NYPD, the New York State Police, New York State Department of Financial Services, New York National Guard and New York City Department of Investigation and New York State Department of Health Bureau of Narcotics Enforcement. Mr. Berman also thanked the HHS-OIG and the New York City Human Resources Administration for their work on the investigation.
Parts of this case were conducted under the auspices of the Organized Crime Drug Enforcement Task Force (“OCDETF”), a partnership among federal, state, and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
The prosecution of this case is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Elinor Tarlow and Daniel Wolf are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Pennsylvania Man Admits Role in Armed Bank RobberyRead the Press Release
CAMDEN, N.J. – A Pennsylvania man today admitted robbing a bank in Carneys Point, New Jersey, in July 2018 while brandishing a firearm, U.S. Attorney Craig Carpenito announced.
Kareem Moore, 29, of North Wales, Pennsylvania, pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to an indictment charging him with armed bank robbery and brandishing a firearm during a bank robbery.
According to documents filed in this case and statements made in court:
Moore admitted that on July 30, 2018, he and a conspirator walked into the Fulton Bank in Carneys Point and that he demanded cash while displaying a loaded handgun. Moore and the conspirator took the cash and fled. Responding officers arrived at the bank within minutes of the robbery, and, after a brief foot pursuit, tackled and arrested Moore.
The armed bank robbery charge carries a maximum potential penalty of 25 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The count of brandishing a firearm carries a mandatory minimum sentence of seven years, which must be served consecutively to any other sentence imposed. Sentencing is scheduled for Dec. 16, 2019.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the Salem County Prosecutor’s Office, under the direction of Prosecutor John T. Lenahan; officers of the Carneys Point Police Department, under the direction of Chief of Police Gerald A. Krivda; and officers of the Penns Grove Police Department, under the direction of Chief John T. Stranahan Sr., with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Kristen M. Harberg of the United States Attorney’s Office in Camden.
Defense counsel: Richard Coughlin Esq., Federal Public Defender, Camden
Pasco County Man Who Threatened Iraqi-American Family Pleads Guilty to Criminal Civil Rights ViolationRead the Press Release
Tampa, Florida – David Allen Boileau (58, Holiday) today pleaded guilty to criminal interference with a right to fair housing. He faces up to one year in federal prison. A sentencing date has not yet been set.
According to court documents, over the course of several months, Boileau engaged in a course of conduct intended to threaten and intimidate an Iraqi-American family so that they would move out of their neighborhood and, more broadly, leave the United States. The family, now naturalized United States citizens, had immigrated to the United States from Iraq in 2015 through a refugee visa.
Boileau threw screws at a car parked on the family’s property, broke into their house, and went through the family’s mail. Boileau also made several derogatory statements regarding their national origin and religion, referring to them as “ISIS” and an “eyesore to this country,” adding that he disliked Muslims and people of Middle Eastern descent. Witnesses reported that, on one occasion, Boileau yelled at the family to get out of his neighborhood and country. Boileau reported that his goal was to “take care of that family” and to “clean up America.” Boileau also threatened to kill witnesses who reported his conduct to local law enforcement authorities. As a result of Boileau’s conduct, the Iraqi-American family was afraid to be in their house and, at one point, left their home to stay with extended family.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Frank Murray.
Orange County Man Sentenced to 15 Years in Federal Prison for Participating in Dark-net Methamphetamine Distribution RingRead the Press Release
SANTA ANA, California – A Huntington Beach man was sentenced today to 180 months in federal prison for being part of a father-and-son crew that illegally distributed methamphetamine on one of the world’s largest dark-net marketplaces.
William Thomas Glarner III, 65, was sentenced by United States District Judge David O. Carter, who said that Glarner had “earned” his sentence and had “spent a lifetime” working his way to federal prison.
After a four-day trial, a federal jury in June found Glarner guilty of three methamphetamine distribution-related charges. Glarner was observed mailing packages of methamphetamine, including one to a dark-net customer, according to evidence presented at trial. A search warrant executed on March 14 on Glarner and his vehicle resulted in the seizure of more than 1.4 kilograms (3.1 pounds) of methamphetamine.
The term “dark-net” refers to computer networks that utilize some of the Internet, but provide greater anonymity, allowing vendors to sell goods and services – such as illegal drug sales – often in exchange for virtual currency.
Glarner was identified as part of an overall investigation into the dark-net activity of his son, William Thomas Glarner IV, a.k.a. “Billy,” 34, of Irvine, who pleaded guilty on June 17 to one felony count of possession with intent to distribute methamphetamine. The elder Glarner acted as a mailer of drugs for his son’s methamphetamine distribution operation.
Glarner IV admitted in his plea agreement that he used at least three monikers to obscure his true identity on the dark-net, including on the “Tor” dark-net browser, where he conducted more than 1,500 sales of controlled substances, including methamphetamine.
Glarner IV admitted he obtained drugs from various sources, and along with others, mailed drugs to dark-net customers nationwide by using such services as the United States Postal Service and commercial couriers. A search warrant executed at his residence and on his car on March 14 resulted in law enforcement officials recovering 2.5 kilograms (5.5 pounds) of methamphetamine, court papers state. Glarner IV admitted that some of this methamphetamine was packaged for purposes of distribution for orders placed on the dark-net.
Glarner IV is scheduled to be sentenced on November 4, at which time he will face a mandatory minimum sentence of 10 years in federal prison and a statutory maximum sentence of life in prison.
This case was investigated by U.S. Customs and Immigration Enforcement’s Homeland Security Investigations and the United States Postal Inspection Service. The La Habra Police Department assisted with the investigation as did the Costa Mesa Police Department, the Brea Police Department, the Cypress Police Department, and the Cass County Drug Task Force of North Dakota. This investigation was conducted with the support of the Organized Crime Drug Enforcement Task Force (OCDETF).
This matter is being prosecuted by Assistant United States Attorneys Puneet V. Kakkar and Kathy Yu of the International Narcotics, Money Laundering, and Racketeering Section.
Operation Mountaineer Highway Update: Fayette County Man Sentenced to 25 Years in Prison for Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced today that a Fayette County man was sentenced on his conviction for conspiracy to distribute heroin, methamphetamine, and oxycodone. Greg Coleman, 43, of Scarbro, was sentenced to 300 months, or 25 years, in federal prison. Stuart commended the cooperative investigative efforts of the Drug Enforcement Administration and the Central West Virginia Drug Task Force, with the support of the West Virginia State Police, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Fayette County Sheriff’s Department, the Beckley/Raleigh County Drug Task Force, the Southern Regional Drug and Violent Crime Task Force, the Fayetteville Police Department, and the Oak Hill Police Department.
“25 years in federal prison. 25 years. To put it in perspective, 25 years ago, there wasn’t an iPhone and Bill Clinton was in his first term. This is a significant sentence for a significant crime,” said United States Attorney Mike Stuart. “Coleman, already a felon, was a major poly-drug dealer with an arsenal of firearms. All that got him was a very long sentence in federal prison.”
At an earlier hearing, Coleman admitted that between October 2017 and July 31, 2018, he worked with other members of a drug trafficking organization operating in Fayette County to distribute heroin, methamphetamine, and oxycodone pills. Coleman admitted that during this time period, he distributed approximately three kilograms of heroin, approximately one-and-a-half kilograms of methamphetamine, and about 3000 oxycodone pills in and around the Southern District of West Virginia. Coleman also previously admitted that on July 16, 2018 he consented to a search of his residence by law enforcement officers. During the search, officers recovered 182 grams of heroin that Coleman had just obtained from another member of the drug trafficking organization and multiple guns. Coleman knew he was prohibited from possessing any firearms due to a prior felony conviction in Fayette County, West Virginia Circuit Court. As part of his plea agreement, Coleman agreed to forfeit 65 firearms to the United States.
The prosecution of Coleman culminated from a joint investigation conducted by federal, state, and local law enforcement agencies known as Mountaineer Highway.
Assistant United States Attorneys Timothy D. Boggess and Andrew J. Tessman handled the prosecution. United States District Judge Joseph R. Goodwin imposed the sentence.
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Oklahoma Woman Coerced a Minor to Travel from Ohio to PA to Engage in ProstitutionRead the Press Release
PITTSBURGH - A former resident of Tulsa, Oklahoma waived prosecution by Indictment and pleaded guilty to an Information in federal court to violations of Coercion and Enticement of Any Individual to Travel to Engage in Illegal Sexual Activity and Conspiracy to Commit the Offense of Coercion and Enticement of an Individual to Travel to Engage in Illegal Sexual Activity, United States Attorney Scott W. Brady announced today.
Shelby Summer Brown, 28, pleaded guilty to two counts before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that on or about March 6, 2018, to on or about March 14, 2018, Brown conspired and agreed with another individual, Oscar Carter, to knowingly persuade, induce, entice, and coerce an individual, Minor A (who had not yet attained the age of 18 years) to travel from Ohio to Pennsylvania, to engage in prostitution from March 6, 2018 through March 14, 2018.
Judge Bissoon scheduled sentencing for January 14, 2020. The law provides for a total sentence of not more than 25 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the Judge ordered Brown remain detained.
Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Cranberry Township Police, and the City of Pittsburgh Bureau of Police conducted the investigation that led to the rescue of the victim and the prosecution of Brown.
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 United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.