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23 October 2019
Dunbar Man Sentenced for Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – A Dunbar drug dealer was sentenced to federal prison for a drug crime, announced United States Attorney Mike Stuart. Samuel Manriquez, 34 was sentenced to 15 months in prison for distribution of furanyl fentanyl and U-47700. Furanyl fentanyl is an analog of fentanyl and U-477001 is a synthetic opioid. The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) and the Metropolitan Drug Enforcement Network Team (“MDENT”).
“Manriquez was caught selling deadly and powerful drugs on Charleston’s West Side,” said United States Attorney Mike Stuart. “We are laser focused and working with a sense of urgency to get drug dealers and their poisons off of our streets.”
Manriquez previously admitted that on May 8, 2017, on Delaware Avenue in Charleston he sold a confidential informant U-47700 and furanyl fentanyl. He also admitted that there was a firearm present during the drug transaction. Manriquez admitted that on the same date and at the same location, he sold another confidential informant U-47700.
Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorney Ryan A. Saunders is handling the prosecution.
This case is 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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Dorchester Man Sentenced on Counterfeiting ChargesRead the Press Release
BOSTON – A Dorchester man was sentenced yesterday in federal court in Boston for selling counterfeit bills.
Franklin Perry, 53, was sentenced by U.S. Senior District Court Judge George A. O’Toole Jr. to 15 months in prison, two years of supervised release and forfeiture. In April 2019, Perry pleaded guilty to one count of dealing in counterfeit currency and two counts of passing and uttering counterfeit obligations of the United States. Perry was arrested in August 2018 during a law enforcement sweep targeting federal drug, firearms and counterfeiting offenses.
On June 27, 2018, Perry sold 10 counterfeit $100 bills to an individual who was working with federal law enforcement officers. On July 25, 2018, Perry purchased items from a retail store in Westwood, including an ink jet printer, with $500 in counterfeit $100 bills. That same day, he also purchased items at another retail store in Walpole with $500 in counterfeit bills. All of the counterfeit bills were manufactured using an inkjet printer on real currency that had been bleached first.
On Aug. 23, 2018, five inkjet printers, cleaning solution, bleach, counterfeit currency and real currency were found during a search of Perry’s residence.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Stephen A. Marks, Special Agent in Charge of the U.S. Secret Service, Boston Field Division, made the announcement. Assistant U.S. Attorney S. William Abely of Lelling’s Major Crimes Unit prosecuted the case.
Doctor of Osteopathic Medicine Sentenced for Drug DistributionRead the Press Release
CHARLESTON, W.Va. – A Doctor of Osteopathic Medicine was sentenced to federal prison for drug distribution, announced Acting United States Attorney Lisa G. Johnston. Mathew Sisson, 29, was sentenced to 57 months in prison for distributing oxycodone for no legitimate medical purpose and outside the bounds of professional practice. Sisson was also ordered to serve three years of supervised release following his release from prison.
Sisson previously admitted that while holding an education permit granted by the West Virginia Board of Osteopathic Medicine, he participated in a training program at the Charleston Area Medical Center (CAMC) located in Charleston, Kanawha County, West Virginia. The training program authorized him to practice medicine and prescribe controlled substances within the confines of the program. Sisson acknowledged that his privileges at CAMC and the limited permit issued by the West Virginia Board of Osteopathic Medicine did not permit him to issue prescriptions that were not for legitimate medical purposes, and issued outside the course of professional medical practice.
According to Sisson, he met with an individual on October 17, 2017 in the CAMC lobby and provided a written prescription for 60 oxycodone 30 mg pills to that individual. At the time Sisson provided the prescription, the individual was not a patient of the CAMC program, nor was another physician supervising Sisson at the time. Sisson admitted that he did not do a physical exam on the individual and that the prescription he provided was not for legitimate medical purposes, and outside the bounds of a professional medical practice. Sisson also previously admitted to providing prescriptions for controlled substances to individuals who were not patients in CAMC’s program from September 2017 through January 2018.
The Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant United States Attorney Monica D. Coleman handled the prosecution.
United States Attorney Mike Stuart was recused from this prosecution.
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Des Peres Man Sentenced to 15 Years in Prison for Production of Child PornographyRead the Press Release
St. Louis, MO – William Timothy Hopmeier, 48, of Des Peres, was sentenced to 15 years in prison for his involvement in production of child pornography. Hopmeier appeared before United States District Judge Audrey G. Fleissig.
According to court documents, from June 2017 to January 31, 2018, Hopmeier used a cell phone to video record two minor females engaging in sexually explicit conduct on several occasions.
The St. Louis County Police Department and the Federal Bureau of Investigation investigated the case. Assistant U.S. Attorney Rob Livergood is handling the case for the U.S. Attorney’s Office.
Dayton man sentenced to 77 months in prison for possessing firearm after felony convictionRead the Press Release
DAYTON – James Jamar Warren, 33, of Dayton, was sentenced in U.S. District Court to 77 months in prison for possessing a firearm as a convicted felon.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Joseph Deters, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Jonathan McPherson, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Montgomery County Sheriff Rob Streck announced the sentence handed down today by U.S. District Judge Thomas M Rose.
According to court documents, investigators from the RANGE Task Force served a search warrant at Warren’s west Dayton residence on March 27, 2019. They found two handguns, a rifle and more than 50 rounds of ammunition. Investigators checked Warren’s criminal history and determined that he had been convicted in Montgomery County in 2008 of felonious assault and drug trafficking. Federal law prohibits people with felony convictions from owning or possessing firearms or ammunition.
Agents arrested Warren on April 1. He has been in custody since his arrest. Warren pleaded guilty on July 8 to one count of possession of a firearm by a convicted felon.
After Warren completes his prison sentence, he will remain under court supervision for three years. The court also ordered Warren to forfeit the firearms and ammunition.
This case is being prosecuted as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. Attorney Glassman commended the cooperative investigation by the FBI Southern Ohio Safe Streets Task Force, the ATF and the Montgomery County Sheriff’s Office, as well as Assistant United States Attorney Andrew Hunt, who is representing the United States in this case.
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Department of Justice Awards More Than $85.3 Million in Grants to Address School Violence and Combat Drug TraffickingRead the Press Release
SIOUX FALLS – The Department of Justice announced it has awarded more than $85.3 million to bolster school security — including funding to educate and train students and faculty — and support first responders who arrive on the scene of a school shooting or other violent incident.
“These federal resources will help to prevent school violence and give our students the support they need to learn, grow, and thrive,’ said Attorney General William P. Barr. “By training faculty, students and first responders, and by improving school security measures, we can make schools and their communities safer.”
The 2018 STOP School Violence Act authorized the Department of Justice to create a series of grant award programs under a School Violence Prevention Program. This year, the Department made 215 awards to schools, districts and other jurisdictions throughout the United States.
The South Dakota Department of Public Safety was awarded grants for the following: $500,000 for School Violence Technology and Threat Assessment Solutions for Safer Schools Program, $998,240 for a State School Safety Center, and a $500,000 for a School Violence Prevention and Mental Health Training Program.
“The Department of Justice is committed to school safety,” said U.S. Attorney Ron Parsons. “These new federal grants will help to secure our schools and keep our children protected and safe.”
Additionally, the Department of Justice Office of Community Oriented Policing Services (COPS) awarded the South Dakota Attorney General’s office $714,268 as part of the COPS Anti-Heroin Task Force Program Awards.
“We are also pleased to announce this substantial new grant to help our drug task forces combat the opioid crisis,” continued U.S. Attorney Parsons. “Every life is precious. This new funding will help us dismantle drug trafficking organizations and relieve the misery they inflict on our communities.”
The Bureau of Justice Assistance, within the Department’s Office of Justice Programs, and the Office of Community Oriented Policing Services manage the programs and administer the grants, which include funds to:
- Develop school threat assessment teams and pursue technological solutions to improve reporting of suspicious activity in and around schools;
- Implement or improve school safety measures, including coordination with law enforcement, as well as the use of metal detectors, locks, lighting and other deterrent measures;
- Train law enforcement to help deter student violence against others and themselves;
- Improve notification to first responders through implementation of technology that expedites emergency notifications;
- Develop and operate anonymous reporting systems to encourage safe reporting of potential school threats;
- Train school officials to intervene when mentally ill individuals threaten school safety; and
- Provide training and technical assistance to schools and other awardees in helping implement these programs.
More details about these individual award programs, as well as listings of individual 2019 awardees, can be found here.
About the Office of Justice Programs:
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal justice system. More information about OJP and its components can be found at www.ojp.gov.
About the Office of Community Oriented Policing Services:
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1994, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of approximately 130,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit www.cops.usdoj.gov.
DEA to Accept Electronic Vaping Devices and Cartridges as Part of National Prescription Drug Take Back Day on SaturdayRead the Press Release
Memphis, TN – U.S. Attorney D. Michael Dunavant joins the Drug Enforcement Administration in announcing that on Saturday, October 26, 2019, DEA will hold its National Prescription Drug Take Back Day. The biannual event will be held from 10 a.m. to 2 p.m. at thousands of collection sites around the country, including here at Kroger, 7615 Highway 70 Bartlett, Tennessee. The event is an effort to rid homes of potentially dangerous expired, unused, and unwanted prescription drugs. The service is free and anonymous.
With robust public participation over the course of 16 prior events, the National Prescription Drug Take Back Day Initiative continues to remove ever-higher amounts of opioids and other medicines from the nation’s homes, where they are vulnerable to misuse, theft or abuse by family members and visitors, including children and teens.
For the first time, DEA will now accept vaping devices and cartridges at any of its drop-off locations during National Prescription Drug Take Back Day. It is important to note that DEA cannot accept devices containing lithium ion batteries. If batteries cannot be removed prior to drop-off, DEA encourages individuals to consult with stores that recycle lithium ion batteries.
Concerns have been raised across the United States over illnesses and death caused by vaping and the high youth vaping initiation rates. In an effort to support a healthy lifestyle and energetic population, especially among America’s youth, DEA is committed to doing all it can to help safely dispose of vaping devices and substances.
U.S. Attorney D. Michael Dunavant said: "Addressing the opioid crisis in our communities requires a comprehensive approach which includes prevention, education, treatment, and enforcement. The DEA National Prescription Drug Take Back event allows everyone to participate in prevention and education that promotes public safety, and I encourage all West Tennesseans to turn in your unused, unwanted, and expired medications. Together, we can prevent addiction, injury and death, and educate the public about the dangers of prescription drug abuse."
"DEA’s National Prescription Drug Take Back Initiative helps get unused and unwanted prescription medications out of circulation and ensures their safe disposal," said Acting Administrator Uttam Dhillon. "This year, we are taking a step further by accepting vaping devices and cartridges as we work with our federal partners to combat this emerging public health threat to the nation’s youth."
Now in its tenth year, DEA has collected a total of more than 11 million pounds (almost 6,000 tons) of expired, unused and unwanted prescription medications through its Take Back Day events. DEA is continuing to register law enforcement partners and collection sites for the upcoming Take Back Day. As of October 15, 2019, more than 4,500 registered law enforcement partners will assist with more than 5,250 registered sites and 135 tribal locations across the country, with more being added each day Collection sites will be open from 10 a.m. to 2 p.m. local time. The public can find a nearby collection site at www.DEATakeBack.com or by calling 800-882-9539.
National Prescription Drug Take Back Day has received enthusiastic public support since its inception in 2010. Last April, the public turned in 469 tons (937,443pounds) of prescription drugs at more than 6,258 sites operated by the DEA and its 4,969 local and tribal partners.
Rates of prescription drug abuse in the United States continue to be alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. The majority of prescription drug abusers say they get their drugs free from friends and family, including from the home medicine cabinet. Take Back Day is a unique opportunity for Americans to protect their homes and medicine cabinets from theft and abuse.
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DEA Prescription Drug Take Back Day is October 26Read the Press Release
BIRMINGHAM – Saturday is the Drug Enforcement Administration’s 18th National Prescription Drug Take Back Day, announced U.S. Attorney Jay E. Town.
“Most of us have a loaded gun with a hair-trigger with no safety in our medicine cabinets in our homes…and most of us don’t even realize it,” Town said. “Let’s do our part to protect our loved ones by getting rid of those prescription drugs in our possession that we no longer need. Not only does this make us all safer, it raises awareness to the dangers of prescription drug abuse, opioid addiction, and shines a bright light on the new threat of counterfeit pills hitting the streets.”
Now in its tenth year, DEA has collected a total of more than 11 million pounds (almost 6,000 tons) of expired, unused and unwanted prescription medications through its Take Back Day events. As of October 21, more than 5,250 collection sites manned by more than 4,500 registered law enforcement partners will be open from 10:00 a.m. to 2 p.m. local time. The public can find a nearby collection site at www.DEATakeBack.com or by calling 800-882-9539. This service is free and anonymous.
For the first time, DEA will now accept vaping devices and cartridges – in addition to tablets, capsules, patches and other medications in solid forms – at any of its drop off locations. DEA is doing all it can to help dispose safely of vaping devices and liquids to get these products off our street and out of the hands of children. It is important to note that DEA cannot accept devices containing lithium ion batteries. If batteries cannot be removed prior to drop-off, DEA encourages individuals to consult with stores that recycle lithium ion batteries.
The National Prescription Drug Take Back Day Initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse and abuse. The rate of prescription drug abuse in the United States is alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs.
National Take Back Day has received robust public support since its inception in 2010. Last April, the public turned in 469 tons (937,443pounds) of prescription drugs at more than 6,258 sites operated by the DEA and its 4,969 local and tribal partners.
For more information about the dangers of drugs please visit DEA’s websites at www.JustThinkTwice.com, www.GetSmartAboutDrugs.com and www.dea.gov
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Corporate Insider Convicted of Conspiring with Others at Long Island Boiler Room to Pump and Dump Stock on Unsuspecting Elderly InvestorsRead the Press Release
A federal jury in Central Islip returned a guilty verdict on all counts this afternoon against Michael Watts, a former registered broker, for his role in a conspiracy to promote and manipulate the price of shares in Hydrocarb Energy Corp. (Hydrocarb) and other companies. Specifically, Watts was convicted of conspiracy to commit securities fraud, securities fraud, conspiracy to commit wire fraud, money laundering conspiracy and money laundering. The verdict followed a three-week trial before United States District Judge Joanna Seybert. When sentenced, Watts faces a maximum sentence of more than 20 years’ imprisonment.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, announced the verdict.
“With today’s verdict, the jury has delivered a measure of closure to the victims, many of them elderly and vulnerable, who were preyed upon by Watts and his co-conspirators,” stated United States Attorney Donoghue. “The defendant will face another reckoning when he is sentenced for his crimes.”
As proven at trial, from 2014 to 2016, Watts and his co-conspirators at a Melville-based boiler room artificially inflated the price and trading volume of Hydrocarb stock. They did so through an illegal cold-calling campaign that used lies and high-pressure sales tactics to lure victim investors, including many elderly victims, into purchasing stock. Watts, who was one of the largest shareholders in Hydrocarb and knew that the business was failing, also used the boiler room to dump more than $2 million worth of Hydrocarb shares that he owned or controlled on unsuspecting investors in the months leading to the company’s April 2016 bankruptcy. The government has alleged that the conspiracy’s market manipulation fraudulently inflated the stock price of Hydrocarb and four other companies by more than $147 million.
Watts is the 13th defendant convicted in this case. Three others are scheduled for trial in January 2020. Four defendants have been sentenced for their roles in the scheme: Ronald Hardy was sentenced to 10 years’ imprisonment; Dennis Verderosa was sentenced to six years’ imprisonment; McArthur Jean was sentenced to four years’ imprisonment; and Emin Cohen was sentenced to two years’ imprisonment.
United States Attorney Donoghue thanked the Federal Bureau of Investigation, New York Field Office, for its hard work and dedication in leading the investigation, and expressed his appreciation to the Securities and Exchange Commission and the Financial Industry Regulatory Authority, Inc., Criminal Prosecution Assistance Group for their cooperation and assistance.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Whitman G.S. Knapp and Kaitlin T. Farrell are in charge of the prosecution.
The Defendant:
MICHAEL WATTS
Age: 63
Sugarland, TexasE.D.N.Y. Docket No. 17-CR-372 (JS)
Cazenovia Man Sentenced to 45 Years for Sexually Exploiting a ChildRead the Press Release
SYRACUSE, NEW YORK – Naven Conley, age 75, of Cazenovia, New York, was sentenced today to serve 45 years in prison for sexually exploiting a child, announced United States Attorney Grant C. Jaquith; Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of United States Homeland Security Investigations (HSI); and New York State Police Superintendent Keith Corlett.
As part of his guilty plea, Conley admitted that on three separate occasions he engaged in sexually explicit conduct with a minor who was under the age of 7, and produced videos capturing that conduct over the course of three years. Conley further admitted that from 2016 through 2018 he used a cellular telephone to record sex acts that he engaged in with the child. In addition, to that conduct, Conley also admitted that he possessed 21 images and 15 video files depicting child pornography that he received over the internet, and that he showed those images and videos to the child victim in his efforts to convince the child to engage in sex acts with him.
Chief United States District Judge Glenn T. Suddaby also imposed a lifetime term of supervised release, which will start after Conley is released from prison, and ordered a $300 special assessment. As a result of his conviction, Conley will be required to register as a sex offender upon his release from prison.
Conley’s case was investigated by the New York State Police, Troop D, Computer Crimes Unit and United States Homeland Security Investigations (HSI) and prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown as a part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is 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 https://www.justice.gov/psc.
California Woman Sentenced to 7 Months in Federal Prison for Her Role in Staged Accident SchemeRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that Stephanie Stock, age 44, of Los Banos, California, was sentenced after having pleaded guilty on April 26, 2019, to one count of conspiracy to commit mail and wire fraud. Chief United States District Judge Thomas O. Rice sentenced Stock to a 7-month term of imprisonment, to be followed by a 3-year term of court supervision after she is released from federal prison. Chief Judge Rice also ordered Stock to pay restitution in the amount of $10,000 and forfeiture of $10,000.
According to information disclosed during court proceedings, Stock was involved in a staged automobile accident in Henderson, Nevada, that defrauded insurance companies out of $257,157. Stock allowed her Toyota 4Runner to be deliberately driven by another individual into a Jaguar XK8 occupied by co-conspirator Sandra Victoria Talento and another individual. Before police arrived, and in furtherance of the scheme, the person who deliberately crashed Stock’s vehicle was driven away from the scene by another individual. Stock then posed as the “at fault” driver to police and the insurance companies.
United States Attorney Hyslop said, “Staged accident automobile insurance fraud is not a victimless crime. It affects every driver, as fraud causes insurance rates to increase. It also distracts police and medical personnel from responding to legitimate distress calls. I commend the FBI, IRS Criminal Investigation and U.S. Marshals Service for their outstanding work investigating this case.”
This case was investigated by the Federal Bureau of Investigation, Internal Revenue Service Criminal Investigation, U.S. Marshals Service and U.S. Attorney’s Office for the Eastern District of Washington Criminal Healthcare Fraud Investigator, with assistance from the National Insurance Crime Bureau. This case was prosecuted by George J.C. Jacobs, III, and Brian Donovan, Assistant United States Attorneys for the Eastern District of Washington.
Brooklyn Man Pleads Guilty to Stealing More Than $80,000 from New York State Assemblyman’s Campaign AccountRead the Press Release
Earlier today in federal court in Brooklyn, Maruf Alam, the former chief of staff for a New York State assemblyman, pleaded guilty to wire fraud for stealing more than $80,000 of donor contributions from the assemblyman’s campaign account for his own personal use. Alam admitted that, as part of the scheme, he filed false reports to the New York State Board of Elections (NYSBOE) to conceal his years-long theft. The proceeding took place before United States District Judge Ann M. Donnelly. When sentenced, Alam faces up to 20 years in prison.
The guilty plea was announced by Richard P. Donoghue, United States Attorney for the Eastern District of New York.
“Alam was caught with his hand in the till, and now he must face the consequences,” stated United States Attorney Donoghue. “Those who corrupt the political campaign contribution process to enrich themselves will be caught and prosecuted.” Mr. Donoghue extended his grateful appreciation to the Federal Bureau of Investigation, New York Field Office, and to the enforcement staff at the NYSBOE for their assistance during the investigation.
Alam was employed by a New York State assemblyman in various capacities since 2008, including as chief of staff. He also acted, on a voluntary basis, as treasurer for the assemblyman’s campaign account, and was responsible for filing periodic disclosure reports with the NYSBOE that reported contributions received and expenditures made by the assemblyman’s campaign committee. Between approximately January 2012 and January 2019, Alam stole a total of approximately $80,000 from that account, which were funds that had been contributed to support the assemblyman’s candidacy, and deposited the cash into his personal account.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Nathan Reilly and Maria Cruz Melendez are in charge of the prosecution
The Defendant:
MARUF ALAM
Age: 29
Brooklyn, New YorkE.D.N.Y. Docket No. 19-CR-342 (AMD)
Brandon Man Sentenced to 10 Years in Federal Prison for Trafficking MethamphetamineRead the Press Release
Jackson, Miss. – John Barrett Cotting, 39, of Brandon, was sentenced yesterday by U.S. District Judge Carlton W. Reeves to 120 months in federal prison, followed by three years of supervised release, for conspiring to possess with intent to distribute 50 grams or more of actual methamphetamine, announced U.S. Attorney Mike Hurst and Special Agent in Charge Brad L. Byerley with the Drug Enforcement Administration. Cotting was also ordered to pay a $1,500 fine.
Cotting was indicted following an extensive investigation, dubbed “Drama Queen,” targeting illegal methamphetamine distribution in Central Mississippi. During a prostitution sting, agents received messages from Cotting who wanted to meet for sexual purposes related to a Backpage.com ad. Cotting stated that he was willing to bring narcotics with him to the meeting. Once Cotting arrived at the meeting location, agents retrieved approximately 140 grams of actual methamphetamine intended for distribution. Cotting pled guilty before Judge Reeves on July 2, 2019 to conspiracy to possess with intent to distribute 50 grams or more of actual methamphetamine.
The case was investigated by the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Marshals Service, Hinds County Sheriff’s Office, Jones County Sheriff’s Office, Jackson Police Department, Richland Police Department, Mississippi Bureau of Narcotics and the Internal Revenue Service. It was prosecuted by Assistant United States Attorney Chris Wansley.
Bellevue Man Sentenced for Possessing Child PornographyRead the Press Release
PITTSBURGH, PA – A suburban Pittsburgh resident has been sentenced in federal court to four years’ (48 months’) imprisonment and 10 years of supervised release on his conviction of possession of child pornography, United States Attorney Scott W. Brady announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Monday on Christopher Morrison, 26, of Bellevue, Pennsylvania.
According to information presented to the court, on June 20, 2018, Adams Township Police officers seized Morrison’s cellular phone during a narcotics related traffic stop. Upon extracting the contents of the phone, officers observed multiple images of suspected child pornography. The Federal Bureau of Investigation forensically examined the phone, and confirmed that Morrison possessed approximately 700 images and 11 videos that depicted the sexual exploitation of a minor, and multiple screen captures of the defendant browsing child pornography. The court was further informed that some of pornography depicted minors under the age of 12 years, as well as minors who were bound at the ankles with their mouths duct-taped.
The Federal Bureau of Investigation and the Adams Township Police Department conducted the investigation that led to the prosecution of Morrison.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Attorney General William Barr Recognizes Department Employees and Others for Their Service at 67th Annual Attorney General AwardsRead the Press Release
Four Assistant U.S. Attorneys for the Southern District of Florida Among Honorees
WASHINGTON – Attorney General William P. Barr recognized 295 department employees for their distinguished public service today at the 67th Annual Attorney General’s Awards Ceremony. Sixty-two other individuals outside of the department were also honored for their work. This annual ceremony recognizes employees and other individuals who have demonstrated exceptional achievements, leadership, and service to the Department of Justice and the American people.
“Our greatest strength in our fight for justice is our people – the thousands of men and women who have dedicated their careers, often at great personal sacrifice, to working for justice in America,” said Attorney General William P. Barr. “As we reflect on the contributions of each of the 357 individuals we honor today, we should hold them up as examples of excellence that continue to inspire our own commitment, and also as reminders of the professionalism and the qualities exhibited throughout the Department.”
“The extraordinary efforts undertaken by Assistant U.S. Attorneys Adam Fels, Andrea Goldbarg, Lynn Kirkpatrick and John Shipley, to ensure that justice is served and that the rules of professional conduct are upheld, are undeniably deserving of these prestigious honors,” stated U.S. Attorney Ariana Fajardo Orshan. “Their contributions have helped to protect the public from the scourge of illicit drugs and violence, and to promote professional responsibility within the legal profession. The Southern District of Florida is incredibly proud of their unwavering commitment to the highest caliber of public service.”
This year’s program honors individuals across the department and our federal, state, local, and tribal partners for their self-less efforts, protecting our national security and our civil rights, addressing rising violent crime in our communities, going after gangs and those trafficking in dangerous narcotics and human beings. The awards also honor the work of civil and environmental litigation, which enforces the rule of law and upholds our Constitution. They also recognize employees whose ideas and efforts save taxpayer dollars and help our government operate more effectively and efficiently, among other contributions to public safety and good governance.
Assistant U.S. Attorney John C. Shipley, Jr., was part of a team that was recognized for its outstanding litigation assistance with respect to critical ethical and professional responsibility issues that arose in the case of U.S. v. Philip Esformes, et al., the single largest healthcare fraud case ever brought against individuals by the Department of Justice involving over $1 billion in false and fraudulent claims to Medicare and Medicaid for services that were not provided, were not medically necessary, or were procured through the payment of kickbacks. The recipients were called upon to independently review and defend Department of Justice attorneys and special agents against charges of prosecutorial misconduct and invasion of the defense camp. The team exhibited a high degree of professionalism and responsibility by making a thorough, yet independent, evaluation of the facts and then skillfully represented the interests of the U.S. by presenting the facts and legal argument in a manner best suited to achieve the best result for the case, defend the reputational interests of their colleagues, and maintain the Department’s commitment to professional integrity.
Assistant U.S. Attorneys Adam S. Fels, Andrea Goldbarg, and Lynn M. Kirkpatrick, along with the rest of the prosecution team received the sole award of the Department’s highest recognition, the Exceptional Service Award. This team successfully investigated and convicted Joaquín Guzmán Loera, also known as “El Chapo,” one of the most notorious international drug cartel leaders. Guzmán was a principal leader of the Sinaloa Cartel, a Mexico- based international drug trafficking organization responsible for importing and distributing staggering quantities – tens of thousands of tons – of narcotics from Central and South America into the U.S. over a 25-year period. The cartel controlled significant portions of Mexico and relied on the use of violence and corruption to maintain its power. Guzmán directed his hitmen to kidnap, interrogate, torture, and kill members of rival drug organizations, at times carrying out acts of violence personally. Guzmán also utilized a sophisticated encrypted communications network to operate the global narcotics trafficking operation. To maintain his grip on certain parts of Mexico and further the interests of the cartel, Guzmán took advantage of a vast network of corrupt Government officials from local law enforcement officers, prison guards, and State officials to high-ranking members of the armed forces and politicians. Although indicted in multiple districts across the country, the U.S. Attorney’s Office for the Southern District of Florida, the Department’s Narcotic and Dangerous Drug Section, and the U.S. Attorney’s Office for the Eastern District of New York combined their efforts and resources to seek justice in a U.S. federal court in Brooklyn, New York for Guzman’s 25-year continuing criminal enterprise, plus multiple substantive international narcotics trafficking and weapons charges. The resulting 12- week trial included testimony from 56 witnesses; 14 cooperating witnesses; narcotics seizures totaling over 130,000 kilograms of cocaine and heroin; and the seizure of weapons, ledgers, text messages, letters, videos, and voice recordings detailing the drug trafficking activity of Guzmán and his co- conspirators. On Feb. 12, 2019, Guzmán was convicted by a Federal jury in Brooklyn of all counts of the superseding indictment. On July 17, 2019, Guzmán was sentenced to life in prison plus 30 years. The Court also ordered Guzmán to pay $12.6 billion pursuant to a forfeiture judgment.
Attorney General William Barr Recognizes Department Employees and Others for Their Service at 67th Annual Attorney General AwardsRead the Press Release
John Gay and Mary Toscano from U.S. Attorney’s Office Also Recognized by City of Newark for Roles in Formation and Leadership of Newark Violent Crime Initiative
NEWARK, N.J. – Attorney General William P. Barr recognized 295 department employees for their distinguished public service today at the 67th Annual Attorney General’s Awards Ceremony. Sixty-two other individuals outside of the department were also honored for their work. This annual ceremony recognizes employees and other individuals who have demonstrated exceptional achievements, leadership, and service to the Department of Justice and the American people.
“Our greatest strength in our fight for justice is our people – the thousands of men and women who have dedicated their careers, often at great personal sacrifice, to working for justice in America,” Attorney General Barr said. “As we reflect on the contributions of each of the 357 individuals we honor today, we should hold them up as examples of excellence that continue to inspire our own commitment, and also as reminders of the professionalism and the qualities exhibited throughout the Department.”
“I am extremely proud that our law enforcement partners have been chosen for these prestigious awards,” U.S. Attorney Carpenito said. “The Violent Crime Initiative has proven to be effective in making the streets of Newark safer for all citizens, and it works because of the tremendous cooperation among city, state, county and federal law enforcement.”
In the District of New Jersey, six members of state and local law enforcement won the William French Smith Award for Outstanding Contributions to Cooperative Law Enforcement – the only such award presented by the Attorney General this year. This award recognizes State and local law enforcement officials who have made significant contributions to cooperative law enforcement endeavors. New Jersey’s recipients were recognized for their contributions to the Violent Crime Initiative (VCI) to Improve Public Safety in Newark.
The recipients are:
Sgt. Christopher J. Bozios Jr., Bureau of Narcotics, Essex County Sheriff’s Office; Detective Sgt. John M. Marcelli, Professional Standards Bureau, Essex County Prosecutor’s Office; Lt. R. Craig Costello, Regional Operations Intelligence Center, N.J. State Police; Sgt. Matthew J. Testa, Special Operations Group, N.J. Parole Board; and Capt. William Mehalaris and Anthony S. Venancio, both of the Major Crimes Division, Newark Department of Public Safety, Police Division.
The VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety as a community-wide cooperative effort aimed at combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate, share intelligence, and pool resources to prosecute violent offenders who endanger the safety of the community. VCI has not only improved the community, but has strengthened relationships among federal, state, county and city agencies as a result of the trust developed among the participants.
The VCI’s community-wide, collaborative approach has had a powerful impact on improving the community, which is experiencing a sharp decrease in overall crime, in general, and violent crime, in particular. Due in part to the VCI’s concentrated efforts, overall crime in Newark has been reduced 15 percent over the past year. The VCI, and other measures, have had an even greater impact on violent crime, with a 30 percent reduction in shooting victims between 2017 and 2018. In 2019, the number of shooting victims and shooting incidents have again declined significantly, with a reduction of 39 percent compared to the same period in 2018. Newark officials said there have been 30 fewer murders, 150 fewer shootings and 500 fewer robberies. Overall, according to the Newark Department of Public Safety, there have been 800 fewer victims of violent crime since the VCI’s creation.
Also today, Newark Mayor Ras J. Baraka issued an official proclamation honoring Assistant United States Attorneys John Gay, Chief of the Criminal Division, and Mary Toscano, Deputy Chief of the Criminal Division, for their contributions and founding and leading the VCI to reduce violent crime. Mayor Baraka’s proclamations stated that the VCI “has had a dramatic impact on crime in Newark,” and credited Gay and Toscano for their work “to make Newark a safer, more empowered, and more equitable City.”
“We commend the hard work of the men and women of the Police Division,” Newark Department of Public Safety Director Anthony F. Ambrose said. “We also thank the U.S. Attorney’s Office for their dedication and commitment in successfully prosecuting these cases, which has definitely made Newark a safer place. The beneficiaries are the members of the public, who have seen 150 fewer people shot and 30 fewer funerals.”
“We congratulate today’s recipients for this well-deserved and hard-earned recognition,” Newark FBI Special Agent in Charge Gregory W. Ehrie. “We are proud to work alongside them toward the common goal of reducing violent crime in Newark and improving the quality of life for our neighbors.”
“I congratulate all my state and federal partners in being recognized for their hard work and dedication in combatting drug trafficking violence,” DEA Special Agent in Charge Susan A. Gibson said. “I am so proud of the cooperative efforts and their unrelenting dedication to arrest those who prey on the innocent.”
“The Newark Violent Crime Initiative (VCI) has been a major component for success in addressing the most violent offenders and groups that wreak havoc in our communities,” ATF Special Agent in Charge Charlie J. Patterson said. “ATF is proud to serve with our partner organizations, in doing the meaningful and impactful work of making our communities safer, one case at a time. On behalf of the ATF Newark Field Division, I extend my gratitude to the Newark VCI participating agencies, especially to our local and State counterparts who are often the catalyst to the VCI’s overall success. ATF remains steadfast in our support of the Newark VCI, and we look forward to continued success in combatting violent crime in and around Newark.”
“Information sharing and collaboration are the keys to reducing violent crime in our state and the Newark Violent Crime Initiative stands out as a model of what we can accomplish when we work together,” New Jersey Attorney General Gurbir S. Grewal said. “I am proud to work with United States Attorney Craig Carpenito, Newark Public Safety Director Anthony Ambrose, Newark Police Chief Darnell Henry, and Colonel Patrick Callahan of the NJ State Police on this groundbreaking effort to improve public safety. I congratulate the dedicated men and women who are on the front lines of this initiative and are being recognized today. With this award, I am certain that the Newark Violent Crime Initiative will become a national model for law enforcement agencies across the country to follow.”
“The New Jersey State Police is proud to be a part of a cooperative partnership of dedicated individuals determined to improve the quality of life for the residents of the City of Newark by targeting recidivist, violent offenders and removing them from the streets,” Col. Patrick Callahan, superintendent of the state police, said. “The members of the Newark Violent Crime Initiative bring great credit and distinction to their agencies for their outstanding efforts, and although they are law enforcement professionals who perform their duties seeking no praise, it is nevertheless a great honor for them to be recognized at the 67th Annual Attorney General's Award Ceremony.”
Attorney General William Barr Recognizes Department Employees and Others for Their Service at 67Th Annual Attorney General AwardsRead the Press Release
WASHINGTON – Attorney General William P. Barr recognized 295 department employees for their distinguished public service today at the 67th Annual Attorney General’s Awards Ceremony. Sixty-two other individuals outside of the department were also honored for their work. This annual ceremony recognizes employees and other individuals who have demonstrated exceptional achievements, leadership, and service to the Department of Justice and the American people.
“Our greatest strength in our fight for justice is our people – the thousands of men and women who have dedicated their careers, often at great personal sacrifice, to working for justice in America,” said Attorney General William P. Barr. “As we reflect on the contributions of each of the 357 individuals we honor today, we should hold them up as examples of excellence that continue to inspire our own commitment, and also as reminders of the professionalism and the qualities exhibited throughout the Department.”
This year’s program honors individuals across the department and our federal, state, local, and tribal partners for their self-less efforts, protecting our national security and our civil rights, addressing rising violent crime in our communities, going after gangs and those trafficking in dangerous narcotics and human beings. The awards also honor the work of civil and environmental litigation, which enforces the rule of law and upholds our Constitution. They also recognize employees whose ideas and efforts save taxpayer dollars and help our government operate more effectively and efficiently, among other contributions to public safety and good governance.
Attorney General Recognizes the District of North Dakota for Exceptional Work in Operation Hard CopyRead the Press Release
WASHINGTON, DC – Attorney General William P. Barr today awarded the District of North Dakota with The Attorney General’s Award for Fraud Prevention for Exceptional Work in Operation Hard Copy to Combat Fraud against the Elderly and Most Vulnerable at the 67th Annual Attorney General’s Awards Ceremony, held at the Daughters of the American Revolution Constitution Hall, Washington, DC. This annual ceremony honors employees and other individuals who have demonstrated exceptional achievements, leadership, and service to the Department of Justice and the American people. The Award for Fraud Prevention recognizes exceptional dedication and effort to prevent, investigate, and prosecute fraud, white collar crimes, and official corruption. The District received the award for its work in “Operation Hard Copy”.
“Operation Hard Copy” targeted a transnational telemarketing advance-fee fraud scheme commonly known as the Jamaican Lottery Fraud. The scheme was designed to prey on elderly and otherwise vulnerable victims and caused them to send their life savings to scammers operating overseas. The District of North Dakota worked with law enforcement to spearhead a multi-year investigation resulting in the extradition of 14 Jamaican nationals and the successful prosecution of 31 defendants in the U.S. District Court for the District of North Dakota. The investigation identified over 100 victims in 31 states and 97 cities across the United States, with reported losses in excess of $6 million. Individual victims lost as little as $199 and as much as $850,000. Nationwide, the number of victims targeted by scammers is likely in the millions, with estimates of annual losses in excess of $1 billion.
“Our greatest strength in our fight for justice is our people – the thousands of men and women who have dedicated their careers, often at great personal sacrifice, to working for justice in America, said Attorney General William P. Barr. “As we reflect on the contributions of each of the 357 individuals we honor today, we should hold them up as examples of excellence that continue to inspire our own commitment, and also as reminders of the professionalism and the qualities exhibited throughout the Department.”
“This award recognizes many years of arduous investigative and prosecutorial work, and it highlights the nationwide impact of toppling a fraudulent enterprise responsible for taking millions of dollars from victims all across North Dakota and the United States,” said Unites States Attorney Drew H. Wrigley. “These fraudsters were stopped in their tracks and scores of potential victims were protected up ahead. This marks the very first time that a North Dakota case has been selected for the prestigious Attorney General’s Award and this team will be commemorated in our office, in a place of honor.”
This marks the first-ever Attorney General’s Award presented to the District of North Dakota. Only one Award for Fraud Prevention was given this year. Other awards presented at this year’s program honor Department employees, and federal, state, local, and tribal partners, for their selfless efforts protecting national security and civil rights, addressing rising violent crime and pursuing gang trafficking in dangerous narcotics and human beings. The awards also honor the work of civil and environmental litigators, who enforce the rule of law and uphold the Constitution. The awards also recognize employees whose ideas and efforts save taxpayer dollars and help the government operate more effectively and efficiently, among other contributions to public safety and good governance. Recipients include 295 Department employees, and 62 other individuals outside of the Department, for their distinguished public service.
THE ATTORNEY GENERAL’S AWARD FOR FRAUD PREVENTION RECIPIENTS:
Assistant U.S. Attorneys from the District of North Dakota:
Nicholas W. Chase
Jonathan J. O’Konek
James Patrick Thomas
Legal Assistants from the District of North Dakota:
Renita A. Berger
Trina M. Gilhooly
Jacqueline K. Haag
Paralegal Specialist from the District of North Dakota:
Leigh A. Johnson
Victim/Witness Specialists from the District of North Dakota:
Beth M. Lang
Dimple A. Smith
Trial Attorneys, Fraud Section Criminal Division, Washington DC:
Leila E. Babaeva
Lorinda I. Laryea
Federal Bureau of Investigation, Bismarck, Minneapolis Division:
Special Agent Francis W. Gasper
U.S. Marshals Service, Investigative Operations Division:
Supervisory Deputy U.S. Marshal Henry E. Geberth III
U.S. Postal Inspection Service, Miami Division:
Postal Inspector B. Scott Horne
Apollo, PA Man Conspired to Distribute More than 100 Pounds of Marijuana He Received from a Source in Denver, ColoradoRead the Press Release
PITTSBURGH - A resident of Apollo, Pennsylvania, pleaded guilty in federal court to a charge of conspiring to distribute more than 50 kilograms of marijuana, United States Attorney Scott W. Brady announced today.
Stephen Michael Lerch, 27, pleaded guilty to one count before United States District Judge William S. Stickman, IV.
In connection with the guilty plea, the court was advised that from May 2018 until October 2, 2018, Lerch received numerous parcels of marijuana and vaping cartridges containing THC from a drug source based in Denver, Colorado. Lerch’s source also delivered bulk amounts of marijuana to locations identified by Lerch in Western Pennsylvania. The conspiracy began to unravel when United States Postal Inspectors searched a parcel Lerch had mailed to his source. The parcel contained $27,500 in United States currency. Afterwards, Postal Inspectors searched the source’s apartment and found large amounts of cash and drug evidence. The Pittsburgh Field Office of the Drug Enforcement Administration was notified of this discovery and initiated an investigation of Lerch. On October 2, 2018, agents and task force officers of the DEA executed a search warrant at Lerch’s residence. The DEA recovered several pounds of marijuana from the residence along with two firearms; a vacuum sealer; a money counter; and $25,161.00 in cash. During the search, the investigators also learned that Lerch maintained accounts at S & T Bank and TD Ameritrade. These contents of these accounts were later seized pursuant to seizure warrants. Under the terms of his plea agreement, Lerch also agreed to the forfeiture of a Subaru Crosstrek and $102,290.79 on the basis that they were obtained from drug trafficking.
Judge scheduled sentencing for March 25, 2020. The law provides for a total sentence of 30 years in prison, a fine of $$2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court released Lerch on bond.
Assistant United States Attorney Michael Leo Ivory is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, the United States Postal Inspection Service, and the West Metro Drug Task Force-Sheriff’s Office, Jefferson County, Colorado conducted the investigation that led to the prosecution of Lerch.
Amsterdam Hospital to Pay Civil Penalty for Violations of the Controlled Substances ActRead the Press Release
ALBANY, NEW YORK – St. Mary’s Healthcare in Amsterdam, New York, agreed to pay a $15,000 penalty as a result of its Narcotic Treatment Program’s (NTP) failure to create and maintain records required by the Controlled Substances Act (CSA), announced United States Attorney Grant C. Jaquith.
In March 2019, Drug Enforcement Administration diversion investigators inspected St. Mary’s NTP and noted multiple recordkeeping violations. When St. Mary’s relocated its NTP in October 2018, the NTP failed to conduct the required initial inventory of methadone at the new location. Furthermore, the NTP omitted material information on multiple forms required by DEA, which are used to order and track controlled substances. The forms omitted information such as quantity of packages ordered, date the containers were received, and the correct supplier. The lack of an initial inventory, combined with incomplete forms, made it difficult to determine whether diversion was occurring at the NTP. Diversion occurs when controlled substances are transferred from legitimate distribution channels to illegitimate distribution channels. Since this matter was brought to its attention, St. Mary’s created a new position for a registered nurse to oversee controlled substance dispensing at the NTP and is implementing a policy to enhance its compliance with the CSA recordkeeping requirements.
“Reliable recordkeeping is a cornerstone of the safe distribution of prescribed drugs,” said United States Attorney Grant C. Jaquith. “This settlement demonstrates that medical facilities that do not accurately keep track of addictive drugs will be held accountable. I commend St. Mary’s for promptly taking responsibility and changing its practices to enhance its compliance with the Controlled Substances Act and encourage all medical facilities to examine their own practices and ensure they are in full compliance.”
This case was investigated by the DEA’s Diversion Unit in Latham, New York. The United States was represented by Assistant U.S. Attorney Christopher R. Moran.
Alien Indicted on Illegal and Unlawful Alien in Possession of a FirearmRead the Press Release
WILMINGTON – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Wilmington has returned an indictment charging TELESFORO RENZAURES-JACOME, age 32, of Mexico, with illegal and unlawful alien in possession of a firearm.
If convicted RENZAURES-JACOME, found in Lenoir County, would face maximum penalties of ten years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
Homeland Security Investigations is investigating this case.
Akron man indicted on fentanyl and heroin chargesRead the Press Release
An Akron man was indicted today in federal court for dealing fentanyl and heroin.
Weston D. McDaniels, 34, was indicted on one count each of possession with intent to distribute fentanyl and of possession with intent to distribute heroin.
McDaniels possessed 300 grams or more of heroin and fentanyl on September 13 that was purchased in for distribution elsewhere, according to the indictment.
The Greater Akron Area Safe Streets Task Force, the Akron Police Department, Ohio State Highway Patrol and the Federal Bureau of Investigation investigated the case. It is being prosecuted by Assistant U.S. Attorney Damoun Delaviz.
If convicted, the defendant’s sentence will be determined by the Court after a 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.
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.
Akron Carfentanil Dealer Sentenced to 120 Months in PrisonRead the Press Release
HUNTINGTON, W.Va. – An Akron, Ohio man was sentenced to federal prison for a drug trafficking crime, announced United States Attorney Mike Stuart. Martel Trayvelle Easton, 21, was sentenced to 120 months in prison for possession with intent to distribute carfentanil. Easton was also ordered to serve a 5 year term of supervised release following completion of his prison sentence. Carfentanil is a form of fentanyl but 100 times more powerful, and 10,000 times more powerful than morphine. It is used as an elephant tranquilizer, and is commonly mixed with heroin and known on the street as “pink heroin.”
“One gram of carfentanil could kill 50,000 people. Easton’s arrest may have saved the lives of nearly 10 million people,” said United States Attorney Mike Stuart. “I commend law enforcement for the perilous work they do every single day to remove dangerous drug dealers from our communities.”
Easton previously pled guilty to possessing with intent to distribute over 196 grams of carfentanil and admitted that on February 7, 2018, the Huntington Violent Crime and Drug Task Force, along with member of the Huntington Police Department, served a search warrant at 1217 10th Avenue in Huntington after seeing drug trafficking activity from that apartment, which was being used a storage house for drugs. Easton was in the apartment when law enforcement entered and ran out the back door while throwing cash. After a brief struggle, Easton was subdued and arrested. Law enforcement also seized a dealer amount of methamphetamine during the search.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Greg McVey handled the prosecution.
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AG William Barr Recognizes Department Employees and Others for Their Service at 67th Annual Attorney General AwardsRead the Press Release
WASHINGTON – Attorney General William P. Barr recognized 295 department employees, including three from the U.S. Attorney’s Office in the Western District of Pennsylvania, for their distinguished public service today at the 67thAnnual Attorney General’s Awards Ceremony. Sixty-two other individuals outside of the department were also honored for their work. This annual ceremony recognizes employees and other individuals who have demonstrated exceptional achievements, leadership, and service to the Department of Justice and the American people.
"Our greatest strength in our fight for justice is our people – the thousands of men and women who have dedicated their careers, often at great personal sacrifice, to working for justice in America," said Attorney General William P. Barr. "As we reflect on the contributions of each of the 357 individuals we honor today, we should hold them up as examples of excellence that continue to inspire our own commitment, and also as reminders of the professionalism and the qualities exhibited throughout the Department."
Assistant U.S. Attorneys Charles A. Eberle IV and Soo C. Song, and Legal Assistant Susan E. Eichhorn, along with personnel from the National Security Division and the Federal Bureau of Investigation, were recognized for their extraordinary efforts in United States v. Aleksei Sergeyevich Morenets, et al. The investigation involved a criminal hacking operation based out of Moscow and the theft and public dissemination of the records of 250 athletes, including U.S. Olympians. In addition to targeting anti-doping agencies, multiple public and private agencies were targeted in retaliation to the ban of Russian athletes.
"This team skillfully facilitated the cooperation of law enforcement worldwide, which led to the indictment in Pittsburgh of seven Russian military hackers, and the successful shutdown of the websites the defendants used to disseminate the private information," said U.S. Attorney Brady. "The deterrent effect of this investigation and the resulting charges have had global implications."
This year’s program honors individuals across the department and our federal, state, local, and tribal partners for their self-less efforts, protecting our national security and our civil rights, addressing rising violent crime in our communities, going after gangs and those trafficking in dangerous narcotics and human beings. The awards also honor the work of civil and environmental litigation, which enforces the rule of law and upholds our Constitution. They also recognize employees whose ideas and efforts save taxpayer dollars and help our government operate more effectively and efficiently, among other contributions to public safety and good governance.
AG Barr recognizes SDTX attorneys for work on hate crime caseRead the Press Release
HOUSTON – Attorney General William P. Barr recognized two Southern District of Texas (SDTX) employees for their distinguished public service at the 67th Annual Attorney General’s Awards Ceremony today.
This annual ceremony, held in Washington D.C., recognizes employees and other individuals who have demonstrated exceptional achievements, leadership and service to the Department of Justice and the American people.
Assistant U.S. Attorneys Sharad Khandelwal and Kate Suh were recognized along with Department of Justice Trial Attorney Saeed Mody for the successful prosecution of Marq Vincent Perez.
On Jan. 28, 2017, Perez burned down a mosque in Victoria.
An investigation revealed Perez had broken into the mosque a week earlier, tried to blow up a car using a homemade bomb, recruited others to “scope out” other mosques and threatened to burn the mosque down if it was rebuilt
The trial commenced for a week and involved testimony from more than 25 witnesses. The federal jury in Victoria returned guilty verdicts July 16, 2018, on all counts as charged. They found Perez responsible for a hate crime in the burning of the mosque, use of fire to commit a felony and for possessing an unregistered destructive device for an incident that occurred Jan. 15, 2017.
Observing that this case struck at the heart of what it means to be an American because it concerned a core right of religious freedom, the district court sentenced Perez to more than 24 years in prison.
“Our greatest strength in our fight for justice is our people – the thousands of men and women who have dedicated their careers, often at great personal sacrifice, to working for justice in America,” said Barr. “As we reflect on the contributions of each of the 357 individuals we honor today, we should hold them up as examples of excellence that continue to inspire our own commitment, and also as reminders of the professionalism and the qualities exhibited throughout the Department.”
This year’s program honored individuals across the department and federal, state, local and tribal partners for their self-less efforts, protecting national security and civil rights, addressing rising violent crime in our communities, going after gangs and those trafficking in dangerous narcotics and human beings. The awards also honor the work of civil and environmental litigation, which enforces the rule of law and upholds our Constitution. They also recognize employees whose ideas and efforts save taxpayer dollars and help our government operate more effectively and efficiently, among other contributions to public safety and good governance.
212 Month Prison Sentence for Convicted Felon Guilty of Possessing Methamphetamine with Intent to Distribute While on Federal Supervised Release, State ParoleRead the Press Release
MACON, Ga.— A Monroe County, Georgia man with a lengthy criminal history was sentenced Tuesday to 212 months in federal prison after admitting he possessed methamphetamine with the intent to distribute it while serving both a federal supervised release sentence and a state parole sentence for drug related crimes, announced Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. U.S. District Judge Tilman E. “Tripp” Self sentenced Chadwick Brown, 38, of Forsyth, Georgia to 188 months in prison followed by 5 years of supervised release for his most recent crime of possession of methamphetamine with intent to distribute. Mr. Brown was further sentenced to 24 months imprisonment for violating the terms of his federal supervised release by possessing the methamphetamine with intent to distribute it, that term of imprisonment to run consecutive, for a total of 212 months in prison. There is no parole in the federal system.
Mr. Brown entered a guilty plea to possession with intent to distribute methamphetamine on May 29, 2019, nearly a year after he ran from two Georgia Department of Community Supervision (DCS) officers attempting to execute a state parole violation. After a foot chase, Mr. Brown was apprehended in possession of methamphetamine, other drugs, a digital scale and cash. Mr. Brown admitted he was attempting to distribute methamphetamine.
“It is critical that released offenders comply with any and all conditions post release from their prison sentence. Failure to do so can lead to prosecution and additional prison time,” said U.S. Attorney Charlie Peeler. “I want to thank the Department of Community Supervision for their efforts ensuring that those returning to society post-prison are in compliance while protecting the safety of our citizens.”
“DCS officers work tirelessly to protect our communities by ensuring those whom we supervise remain in compliance with the conditions of their supervision. We recognize this cannot be done alone and appreciate the support of our fellow partners in law enforcement,” said Brian Tukes, External Affairs Director, Georgia Department of Community Supervision.
Two Georgia DCS officers executed a parole warrant on Mr. Brown on May 9, 2018 at a Forsyth residence. Mr. Brown took off running after being approached by the DCS officers. When he was apprehended in a neighbor’s yard, officers discovered numerous illegal drugs on him, including methamphetamine, a digital scale and $1,579 in cash. Mr. Brown is a career offender with multiple drug related convictions dating back to 2002. Mr. Brown was sentenced in 2012 to 48 months in prison and three years supervised release after pleading guilty in 2011 to one count maintaining drug involved premises in U.S. District Court, Middle District of Georgia. Also in 2012, Mr. Brown was sentenced to 20 years in state prison, with the first eight years in confinement and the balance on probation, for possession with intent to distribute cocaine in Meriwether County Superior Court. Mr. Brown was actively on federal supervised release and state probation at the time of his 2018 arrest in this case.
The case was investigated by the Georgia Department of Community Supervision, the Georgia Bureau of Investigation and the Monroe County Sheriff’s Office. Assistant U.S. Attorney Steven Ouzts prosecuted 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.
11 Eastern District of New York Employees and Two Former Assistant U.S. Attorneys Receive Attorney General AwardsRead the Press Release
WASHINGTON – Eight Assistant United States Attorneys (AUSA), three paralegal specialists and two former AUSAs from the Eastern District of New York (EDNY) were among the 295 department employees recognized by Attorney General William P. Barr for their distinguished public service today at the 67th Annual Attorney General’s Awards Ceremony. Sixty-two other individuals outside of the department were also honored for their work. This annual ceremony recognizes employees and other individuals who have demonstrated exceptional achievements, leadership and service to the Department of Justice and the American people.
“Our greatest strength in our fight for Justice is our people – the thousands of men and women who have dedicated their careers, often at great personal sacrifice, to working for Justice in America, said Attorney General William P. Barr. “As we reflect on the contributions of each of 357 individuals we honor today, we should hold them up as examples of excellence that continue to inspire our own commitment, and also as reminders of the professionalism and the qualities exhibited throughout the Department.”
“The EDNY honorees, together with our law enforcement partners, successfully litigated extremely complex cases on a world stage, prosecuting Joaquin “El Chapo” Guzman for his countless crimes against the people of the United States and Mexico as a leader of the Sinaloa drug cartel, uncovering corruption and financial crimes at the French multinational bank Société Générale S.A., and dismantling a transnational human trafficking enterprise responsible for the sexual slavery of women trapped in its clutches,” stated United States Attorney Richard P. Donoghue. “This Office is proud of the far-reaching justice the honorees achieved as a result of their exceptional work.”
This year’s program honors individuals across the department and our federal, state, local and tribal partners for their self-less efforts protecting our national security and civil rights, addressing rising violent crime in our communities, interdicting gangs and those trafficking in dangerous narcotics and human beings. The awards also honor civil and environmental litigation, which enforces the rule of law and upholds our Constitution. They also recognize employees whose ideas and efforts save taxpayer dollars and help our government operate more effectively and efficiently, among other contributions to public safety and good governance.
The Attorney General’s David Margolis Award for Exceptional Service.
United States v. Joaquin "El Chapo" Guzman
The recipients of the Department of Justice’s highest award are Assistant United States Attorneys Gina Parlovecchio, Andrea Goldbarg, Hiral Mehta, Patricia Notopoulos and Michael Robotti; Paralegal Specialists Huda Abouchaer, Melissa Bennett and Eileen Rosado, and the members of their team from the United States Attorney's Office, Southern District of Florida, Department of Justice Criminal Division, Federal Bureau of Investigation, Homeland Security Investigations and Drug Enforcement Administration were also recognized for their exceptional achievements in the investigation and prosecution of Joaquin “El Chapo” Guzman. Guzman was a principal leader of the Sinaloa Cartel, a Mexico-based international drug trafficking organization responsible for importing and distributing staggering quantities – 10s of thousands of tons - of narcotics from Central and South America into the United States over a 25-year period. The cartel controlled significant portions of Mexico and relied upon violence and corruption to maintain its power. Guzman directed his hitmen to kidnap, interrogate, torture and kill members of rival drug organizations, and at times he personally carried out acts of violence. Guzman utilized a sophisticated encrypted communications network to operate the global narcotics trafficking operation. To maintain his grip on parts of Mexico and further the interests of the cartel, Guzman took advantage of a vast network of corrupt government officials, from local law enforcement officers, prison guards and state officials, to high ranking members of the armed forces, as well as politicians. Although indicted in multiple U.S. districts, Guzman was ultimately extradited to EDNY to face the most comprehensive case against him, alleging a 25-year continuing criminal enterprise (CCE), plus multiple substantive international narcotics trafficking and weapons charges. Following a 12-week trial that included testimony from 56 witnesses, l4 cooperating witnesses, narcotics seizures totaling over 130,000 kilograms of cocaine and heroin, weapons, ledgers, text messages, letters, videos and intercepted recordings detailing the drug trafficking activity of Guzman and his co-conspirators, on February 12, 2019, Guzman was convicted of all counts of the superseding indictment. On July 17, 2019, Guzman was sentenced to life imprisonment plus 30 years for his role as a leader of a CCE, a charge that included 26 drug-related violations and one murder conspiracy. The Court also ordered Guzman to pay $12.6 billion in forfeiture. This successful prosecution was the capstone to a decades-long effort to bring Guzman to justice.
The Attorney General’s Award for Distinguished Service
United States v. Société Générale S.A.
The recipients of the Department of Justice’s second highest award are Assistant United States Attorneys David Pitluck and James McDonald, former Assistant United States Attorney Matthew Amatruda and the members of their team from the DOJ Criminal Division, Federal Bureau of Investigation and Internal Revenue Service were recognized for their outstanding work in a multi-year (2012 - 2018) investigation that uncovered significant financial crimes at French multinational bank Société Générale S.A. (“SGA”), and led to a successful criminal prosecution of the bank resulting in penalties of more than $860 million. When combined with regulatory penalties imposed in a parallel Commodity Futures Trading Commission case, the total penalties paid by SGA exceeded $l billion. The team found and reviewed voluminous electronic and documentary material establishing violations of the Foreign Corrupt Practices Act (FCPA), as well as commodities fraud through the manipulation of LIBOR. The investigation required identifying and obtaining foreign bank records and reviewing thousands of audio recordings made by SGA employees. In addition, the team conducted multiple international interviews and coordinated with witnesses and law enforcement authorities from an array of foreign countries to obtain the evidence that led to the successful prosecution. As part of the FCPA case, SGA Société Générale Acceptance N.V, a subsidiary of SGA, pled guilty to conspiracy to violate the FCPA. SGA entered into a deferred prosecution agreement to resolve the FCPA and LIBOR charges. Notably, the FCPA prosecution team provided significant assistance to French criminal authorities to facilitate the first simultaneous resolution of an FCPA case with the French government. These cases demonstrate the value of robust and coordinated criminal enforcement, both within the Department and with its law enforcement partners in the U.S. and abroad, and the Department's commitment to holding accountable large financial institutions that engage in corruption and manipulation in the financial markets.
United States v. Rendon Reyes
Assistant United States Attorney Maggie Lee, former Assistant United States Attorney Taryn Merkl and the members of their team from the Civil Rights Division, Criminal Section, and Homeland Security Investigations were recognized for their outstanding work in dismantling a transnational human trafficking enterprise that operated for over a decade, compelling multiple young women and girls into prostitution through deception, manipulation, sexual assault, physical violence, psychological coercion, forced abortions and threats against the victims, their families and their children. The Rendon-Reyes prosecution team led an extensive investigation, spanning multiple U.S. and Mexican jurisdictions, utilizing victim-centered strategies to identify, stabilize and protect the victims of the trafficking organization. The team of prosecutors, victim specialists, paralegals and special agents coordinated extensively with Mexican anti-trafficking authorities, through the U.S.-Mexico Bilateral Human Trafficking Enforcement Initiative, to execute an enforcement action carried out simultaneously on both sides of the border, resulting in the arrests of all eight members of this notorious human trafficking organization. The team went on to secure rapid extraditions of the defendants apprehended in Mexico, and convictions of all defendants charged in a 27-count indictment with multiple counts of racketeering and racketeering conspiracy, involving predicate acts of sex trafficking, money laundering and related violations. In January 2019, the prosecutions culminated in sentences of 15 to 25 years’ imprisonment for the lead defendants and restored the lives of multiple victims.
22 October 2019
Vapes and Cartridges to be Accepted During National Drug Take Back DayRead the Press Release
KANSAS CITY, KAN. – Vapes and cartridges will be accepted at drop off locations throughout Kansas during National Drug Take Back Day Saturday, Oct. 26, U.S. Attorney Stephen McAllister said.
“The public is welcome to dispose safely of vaping devices and liquids to get these products off our streets and out of the hands of children,” McAllister said.
As usual, the sites participating in the Drug Enforcement Administration-sponsored event also will accept prescription drug tablets, capsules and patches. Sites will be open from 10 a.m. to 2 p.m.
According to the 2018 National Survey on Drug Use and Health, 9.9 million Americans misused controlled prescription drugs. The study showed a majority of those drugs were obtained from family and friends, often from the home medicine cabinet.
During the most recent National Drug Take Back Day in April, 4,969 law enforcement agencies participated at 6,258 sites. They collected more than 468 tons of unused drugs. To find a site near you visit https://takebackday.dea.gov/ and use the collection site locator.
Vallejo Man Sentenced to 12 Years in Prison for Being a Felon in Possession of a FirearmRead the Press Release
SACRAMENTO, Calif. — Sammy Davis Dewitt Morgan, 38, of Vallejo, was sentenced today by U.S. District Judge John A. Mendez to 12 years in prison for being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court records, in Dec. 2017, Morgan led police on a high-speed chase through a residential area in Vallejo at speeds that reached 75 miles per hour. The chase ended when Morgan lost control of his car and crashed into the security fencing at a local business. When Morgan got out of his car, officers detained him in handcuffs. As the officers were doing so, they found a .40-caliber pistol with a 22-round extended magazine in Morgan’s waistband. Afterwards, the officers conducted a parole search at Morgan’s apartment and found ammunition in various calibers. Morgan cannot lawfully possess firearms or ammunition because he has previously been convicted of six felony offenses. Morgan pleaded guilty on Oct. 23, 2018.
This case was the product of an investigation by the Vallejo Police Department with assistance from the FBI’s Solano County Violent Crimes Task Force and the Solano County District Attorney’s Office.
U.S. Marshals Auctioning Collection of 149 Classic, Luxury VehiclesRead the Press Release
Washington, DC – The U.S. Marshals are holding a live auction in Woodland, California, at 9 a.m. PDT Saturday, Oct. 26, for approximately 149 classic, luxury and performance vehicles from a federal civil case involving the owners of the defunct DC Solar company in the Eastern District of California.
The auction will be held at Apple Towing, 550 N. Pioneer Ave., Woodland, CA 95776. The auction will also be simulcast on the web, so people can participate without having to attend in person.
An auction preview will take place from 8 a.m. to 4 p.m. Thursday, Oct. 24, and Friday, Oct. 25, at the same location as the auction. Prebidding is currently underway via the Apple Auctioneering Company website, www.appleauctioneeringco.com.
“It is rare for the U.S. Marshals to hold an auction of such a stunning collection of vehicles,” said Chief Deputy U.S. Marshal Lasha Boyden with the Sacramento office of the U.S. Marshals. “We’ve got classic 1960s Ford Mustangs, 1990s Humvees, a 1960 Austin-Healey, and even a 1978 Pontiac Trans Am that was owned by Burt Reynolds as a memento of the car he drove in the movie ‘Smokey and the Bandit.’”
The vehicles are being sold pursuant to an interlocutory sale order in the federal case United States v. 2011 BMW 328i, et al., case number 19-mc-00053 in the Eastern District of California.
For more information and photos: auction website: www.appleauctioneeringco.com
The Department of Justice Asset Forfeiture Program is a key component of the federal government’s law enforcement efforts to combat major criminal activity by disrupting and dismantling illegal enterprises, depriving criminals of the proceeds of illegal activity, deterring crime and restoring property to victims. The U.S. Marshals Service plays a critical role in identifying and evaluating assets that represent the proceeds of crime as well as efficiently managing and selling assets seized and forfeited by DOJ.
U.S. Department of Justice awards Washington State nearly $5.3 million for testing backlog of sexual assault kitsRead the Press Release
Seattle – U.S. Attorney Brian T. Moran announced today that the Washington State Patrol and the State Attorney General’s Office received four grants totaling nearly $5.3 million to reduce the backlog of untested rape kits and improve the scientific capacity of the state crime labs.
“In my long career as a prosecutor, I saw first-hand the value of DNA evidence to solve crimes and get violent predators off the street,” said U.S. Attorney Moran. “DOJ understands that we cannot leave untested evidence languishing in storage. These funds will help Washington keep up with the scientific advances in DNA that can both identify the guilty and exonerate the innocent.”
The Washington State Attorney General’s Office was awarded two grants: $1.5 million is directed at inventorying, testing and tracking unsubmitted rape kits and an additional $1 million was awarded to expand the collection of DNA from offenders and its submission to the Combined DNA Index System (CODIS).
The Washington State Patrol was awarded two grants totaling more than $2.7 million. The largest grant, $1,857,667 is to increase the capacity of all the WSP crime labs, including equipping a new DNA section in the Vancouver, Washington crime lab. One goal of the grant is to reduce the backlog of cases. The second WSP lab grant for $920,951 is aimed at digitizing and storing some 480,000 case records currently archived in off-site storage so that they can more easily be accessed for investigation.
The grants were awarded by the Bureau of Justice Assistance and the National Institute of Justice.
For additional information on individual grants, please contact the recipient organizations.
U.S. Attorney Announces Statistics on Cases Charged in the Northern District of CaliforniaRead the Press Release
SAN FRANCISCO – U.S. Attorney David L. Anderson released statistics today from the U.S. Department of Justice reporting on the numbers of criminal defendants charged in the Northern District of California during the 2019 fiscal year ended September 30, 2019. Also presented were statistics identifying the numbers of defendants charged in fiscal year 2018.
According to the statistics, the Office of the United States Attorney filed cases against a total of 671 defendants in FY 2019, an increase of more than 24% from the 540 defendants charged the previous year. The increase in criminal case filings includes the highest ever number of defendants charged federally in the Northern District of California in two categories of cases: violent crime (up 35% from 163 defendants in FY 2018 to 220 defendants in FY 2019) and firearms violations (up 19% from 159 defendants in FY 2018 to 187 defendants in FY 2019). Cases filed against defendants in drug cases also increased during FY 2019: in 2018, the Northern District of California charged drug offenses against 145 defendants whereas in FY 2019, the office charged 230 defendants in drug cases, an increase of 53% in the number of defendants charged in drug cases. Immigration filings decreased by 5% from 39 defendants in FY 2018 to 37 in FY 2019. White collar filings increased 8% from 102 defendants in FY 2018 to 111 defendants in FY 2019.
“Our objective is to serve the community, vindicate federal interests, and uphold the rule of law," stated U.S. Attorney Anderson. "Although the most recent statistics reflect a massive acceleration of our practice, the case charging statistics are one but only one of the many ways we use to measure our achievement of that objective.”
“The acceleration of our case charging statistics is equally balanced between expanded outreach and practice improvement.”
“Amidst a background of gun violence and gun debate, our job is to vigorously enforce the gun laws that Congress has passed and the Courts have upheld,” Anderson said.
U.S. Attorney Announces Office Collects over $2.3 MillionRead the Press Release
BOISE – United States Attorney Bart M. Davis announced today that his office’s Financial Litigation Unit collected more than $1.6 million in criminal restitution, fines, and assessments and in civil debts for the fiscal year that ended September 30, 2019. In some cases, the U.S. Attorney’s Office worked in conjunction with litigating components of the U.S. Department of Justice. Of the total collected, approximately $1.3 million were criminal restitution, fines, and/or assessments, and approximately $325,179 were civil debts. In addition, the Asset Forfeiture Unit collected approximately $721,211 in proceeds and instruments of crime in criminal and civil forfeiture actions.
“Our collection and asset forfeiture staff of attorneys, paralegals, analysts, and fiscal agents ensure that those who have caused loss to victims pay those victims back and ensure that those who have profited from committing crimes in the District of Idaho are deprived of the proceeds and tools of their crimes,” said Davis. “These same folks also ensure that those who owe the federal government money, as a result of litigation in this District or as a result of longtime debt, make appropriate payments. This year, all of these dedicated individuals have done outstanding work and served this office, the taxpayers, and this community well.”
Victims of crime receive funds collected in criminal restitution cases. In fiscal year 2019, the U.S. Attorney’s Office, through the Financial Litigation Unit, collected over $1.168 million in criminal restitution that was or will be distributed to victims of crime. Other criminal collections such as fines go into the Crime Victims Fund. From there, funds are distributed to the Idaho Crime Victims Compensation Program, the Idaho Council on Domestic Violence and Victim Assistance, and similar programs across the country. Money recovered from the illegal proceeds of criminal activity through forfeiture is returned to victims, used to offset the costs of operating federal prisons, and shared with local, state, and federal law enforcement agencies to help fight crime. Other recoveries go back to agency creditors.
During the fiscal year, some notable criminal restitution collections include approximately $150,600 paid by the defendant in a child pornography case and over $77,366 and $55,372 recovered from real estate sales and refinances to pay fraud restitution in two separate cases. In addition, over $24,382 was collected from the sale of a home in a child exploitation case to pay restitution. The Treasury Offset Program helped collected almost $200,000 toward restitution and fine debt.
Forfeitures valued at approximately $721,211 included currency, vehicles, and real property related to trafficking in controlled substances, fraud, child exploitation, and other serious crimes. Forfeitures also included approximately 146 firearms used or possessed during criminal activities. Forfeited firearms typically are destroyed, to prevent their use in future crimes. In some cases, the United States shared, or will share, seized money and property with local investigating agencies. In victim cases, the U.S. Attorney’s Office works to direct proceeds of forfeiture to crime victims.
As for civil debts and penalties, the Financial Litigation Unit collects civil penalties for violations of regulations involving, among other things, controlled substances, environmental protection, damage to federal property, and procurement fraud. It also collects civil debts for defaulted loans.
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U.S. Attorney Andrew Murray Testifies Before U.S. Senate Judiciary SubcommitteeRead the Press Release
WASHINGTON, D.C. – On October 22, 2019, United States Attorney Andrew Murray testified at a hearing before the Senate Judiciary Subcommittee on Sanctuary Jurisdictions: The Impact on Public Safety." U.S. Attorney Murray's oral remarks, as prepared, are below:Chairman Graham, Ranking Member Feinstein, and other distinguished Members of the Committee, thank you for the opportunity to speak with you today regarding the challenges faced by law enforcement in jurisdictions with sanctuary policies.
Over the past several decades, lawmakers in a number of states and municipalities have enacted laws intended to limit police involvement in federal immigration enforcement activities. These sanctuary policies protect known criminal aliens who have been arrested for committing crimes unrelated to their immigration status.
I currently serve as the United States Attorney for the Western District of North Carolina which encompasses the City of Charlotte. As U.S. Attorney, and previously as the District Attorney for Charlotte, I’ve witnessed firsthand the devastating impact that sanctuary policies can have on the community. I’ve seen how these policies destroy the lives of innocent victims and their families.
There are two very recent cases in Charlotte that serve as unfortunate examples of the clear threat to public safety that such policies pose. In May, Mr. Pineda-Anchecta was arrested not once, but twice, by local law enforcement for assaulting a female, strangulation, and kidnapping, among other offenses. Each time Pineda-Anchecta was arrested, ICE filed a detainer with the Mecklenburg County Sheriff’s Office requesting that he be held in custody so that immigration officers could have a reasonable period of time to determine his true identity and immigration status. Each time, the federal detainer was ignored by the Sheriff’s office, and Pineda-Anchecta was released without ICE being notified. Prior to his second arrest by the police, Pineda-Anchecta engaged in an hours-long standoff at an apartment complex with a Charlotte police SWAT team, potentially exposing many innocent bystanders and law enforcement officers to serious harm. After Pineda-Anchecta was released from state custody a second time, he allegedly strangled, restrained and kidnapped the same victim from the first crime. He was eventually located and arrested by ICE, following an intensive and exhaustive search. At the time of his arrest by ICE, Pineda-Anchecta and another individual were sitting in a vehicle, with a readily available pistol and ammunition.
A second example is Leonardo Pacheco, a Honduran citizen and a repeat immigration violator, who was arrested in June by local law enforcement, for the alleged first degree rape of an eleven-year-old child. Once again, the Mecklenburg County Sheriff’s Office ignored an ICE detainer and the defendant was released from jail the day after his arrest. Nearly two months later, during a targeted enforcement operation, ICE was able to take the defendant into federal custody. For nearly two months, as a result of the Sheriff’s reckless sanctuarypolicy, the defendant was free to potentially harm other innocent and helpless children.
Over a recent nine-month period, there were at least 23 other foreign nationals who had been released back to the community as a result of the local Sheriff’s refusal to comply with ICE detainers. Among those released are individuals charged with serious criminal offenses, such as sex offenses, serious assaults, kidnappings and attempted murder, to name a few. Some of these individuals are still at-large despite law enforcement’s best efforts to locate and arrest them.
This is just part of a growing list of unlawfully present criminal aliens who could have been arrested and removed from the United States. Yet, current sanctuary policies allow them to remain in this country, at the expense of the safety of our communities and our law enforcement.
Unfortunately, what I have witnessed in North Carolina is not unique - innocent men, women and children are becoming victims of preventable crimes across the country every day due to sanctuary policies.
The American people deserve a lawful immigration system that keeps us safe and serves our national interest. The Department of Justice is committed to supporting all of our nation’s state, local, and tribal law enforcement, and to working with anyone who seeks to protect our communities from violent criminals.
Mr. Chairman, I thank you for holding this hearing on such an important issue. I look forward to answering any questions you may have.
Download remarks in PDF format:
USA Murray 10.22 Sanctuary Hearing Oral RemarksTwo plead guilty to participation in a Ponzi scheme involving $2.5 billion in transactions and $1 billion in lossRead the Press Release
SACRAMENTO, Calif. — Two defendants pleaded guilty today to their participation in a massive fraud scheme involving a solar energy company in Benicia, that defrauded investors of approximately $1 billion, U.S. Attorney McGregor W. Scott announced. Those losses resulted from investment transactions in solar energy hardware valued at approximately $2.5 billion.
According to court documents, between 2011 and 2018, the solar energy company manufactured mobile solar generator units (MSG), solar generators that were mounted on trailers. The company touted the versatility and environmental sustainability of the MSGs and claimed that they were used by cellphone companies to provide emergency power to cell towers in the case of a power failure. They were also claimed to be used to power lights at sporting and other events.
The company solicited investors by claiming that there were very favorable federal tax benefits associated with investments in alternative energy. The company structured the transactions in order to maximize the tax benefits to the investors. Investors would buy the MSGs without ever taking possession of them. They would pay a percentage of the sales price and finance the balance with the company. Then the investors would lease the MSGs back to the company, which in turn leased them to third parties. A portion of the lease revenue would be used to pay the investors’ debts to the company and to the investors. The third‑party leases, however, generated little income and the company paid early investors with funds contributed by later investors.
According to court documents, Ronald J. Roach, 53, of Walnut Creek, a certified public accountant, provided accounting and tax services to the solar energy company. To trick investors, Roach prepared years of financial statements that falsely characterized investments to purchase MSGs as revenue earned from the rental of those MSGs. Roach and his co-conspirators used those fraudulent financial statements to hide from investors the company’s use of later investor payments to pay financial obligations the company made to earlier investors—in a classic, Ponzi-like scheme. Roach also pleaded guilty to securities violations associated with the same investment fraud scheme.
Joseph W. Bayliss, 44, of Martinez, a general contractor and electrician who provided services to the solar energy company, pleaded guilty to conspiring with Roach and others in connection with the same scheme to defraud investors. Bayliss admitted to preparing thousands of false reports certifying the existence and operating specifications of thousands of MSGs sold to investors. Bayliss admitted that, for at least two years, he signed many of those false reports knowing that the MSGs associated with them did not exist, and knowing investors would rely on those false reports. Bayliss also admitted that, at the direction of a co-conspirator, he flew to Las Vegas to destroy evidence after the execution of search warrants at the company’s headquarters and other locations in December 2018.
This case is the product of an investigation by the Federal Bureau of Investigation, IRS‑Criminal Investigation, and the Federal Deposit Insurance Corporation Office of Inspector General. Assistant U.S. Attorneys André M. Espinosa and Kevin C. Khasigian are prosecuting the case.
The investigation is ongoing. Roach and Bayliss are schedule to be sentenced by U.S. District Judge John A. Mendez on Jan. 28, 2020. Roach faces a maximum statutory penalty of 10 years in prison. Bayliss faces a maximum statutory penalty of five years in prison. The actual sentences, 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.
Two Texas Women Indicted for Money Laundering SchemeRead the Press Release
TYLER, Texas – U.S. Attorney Joseph D. Brown announced that two Texas women have been indicted on money laundering charges in the Eastern District of Texas.
Pamela Sue Hannan, 66, of Sherman, Texas, and Pamela Sue Jennings, 68, of Houston, Texas, were indicted by a federal grand jury on October 16, 2019. The defendants were both charged with conspiracy to commit money laundering.
According to the indictment, Hannan and Jennings are alleged to have laundered funds received from romance scam victims and from victims of other fraudulent schemes on behalf of their co-conspirators, who were based outside of the United States. In order to facilitate the scheme, Hannan and Jennings opened bank accounts in the names of businesses which purported to provide legitimate services. In reality, these businesses were used to facilitate the money laundering scheme. Together, Hannan and Jennings received more than $880,000 from victims of the scheme. The majority of the funds they received were subsequently transferred overseas to their co-conspirators.
If convicted, Hannan and Jennings each face up to 20 years in federal prison.
This case is being investigated by the U.S. Department of Homeland Security-Homeland Security Investigations with assistance from the U.S. Postal Inspection Service, the Sherman Police Department, and the Appleton (Wisconsin) Police Department. It is being prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld.
A grand jury indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Two Chicago Police Officers Convicted of Fraudulently Obtaining Search Warrants and Obstructing JusticeRead the Press Release
CHICAGO — A federal jury today convicted two Chicago Police officers of fraudulently obtaining search warrants and stealing cash and drugs from properties they searched.
Officers XAVIER ELIZONDO and DAVID SALGADO were assigned to a gang team in the Chicago Police Department’s Tenth District. According to evidence at trial, the officers conspired to submit materially false information to state court judges to fraudulently obtain search warrants that enabled them to enter various properties and seize cash and drugs. The officers would then steal the items and falsify police reports to conceal the thefts.
Elizondo, 47, and Salgado, 39, both of Chicago, were found guilty on all counts against them, including conspiracy to commit theft, deprivation of civil rights, embezzlement, and obstruction of justice. Salgado was also charged and convicted of making a false statement to the FBI. Sentencings were set for Jan. 23, 2020, before U.S. District Judge Matthew F. Kennelly.
The convictions were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI. The Chicago Police Department provided valuable assistance. The government is represented by Assistant U.S. Attorneys Sean J.B. Franzblau and Ankur Srivastava.
Obstruction of justice is punishable by up to 20 years in prison. The embezzlement and civil rights counts each carry a maximum sentence of ten years, while the conspiracy and false statement counts are each punishable by up to five years.
Treasurer of Political Action Committees Pleads Guilty to Filing False Reports with Federal Election CommissionRead the Press Release
ALEXANDRIA, Va. – An Arlington political consultant who served as the treasurer of multiple Political Action Committees (PACs) pleaded guilty today to lying to the Federal Election Commission (FEC) about approximately $32,500 in payments of PAC money that he directed to himself and a close friend.
According to court documents, Scott Buchanan Mackenzie, 66, from 2011 through 2018, in the Eastern District of Virginia and elsewhere, Mackenzie was the treasurer of approximately 52 PACs, including Conservative StrikeForce, Conservative Majority Fund, Tea Party Majority Fund and Conservative Majority SuperFund. In that role, Mackenzie was responsible for complying with campaign finance laws and regulations and for filing accurate disclosure reports with the FEC that detailed the PACs’ true income and expenditures.
Person A was a resident of Winchester, Virginia, who had a personal relationship with Mackenzie and with whom Mackenzie shared a joint bank account. Between October 2011 and June 2014, Mackenzie caused approximately $32,500 in payments to Person A from bank accounts belonging to Conservative StrikeForce, Conservative Majority Fund and Conservative Majority SuperFund. Mackenzie falsely reported to the FEC that Person A received these payments for work that Person A had purportedly provided to Conservative StrikeForce and Conservative Majority Fund. In fact, as Mackenzie knew, Person A—an umbrella retailer with no experience in political fundraising—did not provide any of the purported services to these PACs. The funds were deposited into the bank account that Mackenzie shared with Person A.
In addition, Mackenzie also made false statements to the FEC to conceal the unlawful use of funds raised by Conservative Majority Fund and Tea Party Majority Fund to pay at least $172,200 in legal fees that Conservative StrikeForce and affiliated companies had incurred from a civil lawsuit brought by a former gubernatorial candidate for Virginia.
Finally, Mackenzie admitted that he participated in a scheme to use conduits (also known as straw donors) to make contributions to candidates running for federal public office. Mackenzie used conduits to make these contributions in order to evade limits that federal law placed on individual campaign contributions, as well as prohibitions against corporate contributions.
As part of his guilty plea, Mackenzie agreed to pay $172,200 in restitution to victims of his scheme to illegally funnel money between PACs to pay legal fees.
Mackenzie pleaded guilty to one count of making a false statement to the FEC and faces a maximum penalty of five years in prison when sentenced on Feb. 21, 2020. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division; and Timothy R. Slater, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after U.S. District Judge Liam O’Grady accepted the plea. Assistant U.S. Attorney Kimberly R. Pedersen and Trial Attorneys Bill Gullotta and John Taddei of the Criminal Division’s Public Integrity Section (PIN) are prosecuting the case. Former PIN trial attorney Molly Gaston provided significant assistance in 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. 1:19-cr-309.
Treasurer of Multiple Political Action Committees Pleads Guilty to Filing False Reports with the FECRead the Press Release
A Virginia political consultant who served as the treasurer of multiple Political Action Committees (PACs) pleaded guilty today to lying to the Federal Election Commission (FEC) about more than $32,000 in payments of PAC money that he directed to himself and a close friend.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia and Assistant Director in Charge Timothy R. Slater of the FBI’s Washington Field Office made the announcement.
Scott Buchanan Mackenzie, 66, of Arlington, Virginia, pleaded guilty to one count of making a false statement to the FEC before U.S. District Judge Liam O’Grady of the Eastern District of Virginia. A sentencing hearing is scheduled for Feb. 21, 2020, before Judge O’Grady.
According to admissions Mackenzie made in connection with his guilty plea, from 2011 through 2018, in the Eastern District of Virginia and elsewhere, Mackenzie was the treasurer of approximately 52 PACs, including Conservative StrikeForce, Conservative Majority Fund, Tea Party Majority Fund and Conservative Majority SuperFund. In that role, Mackenzie was responsible for complying with campaign finance laws and regulations and for filing accurate disclosure reports with the FEC that detailed the PACs’ true income and expenditures.
Person A was a resident of Winchester, Virginia, who had a personal relationship with Mackenzie and with whom Mackenzie shared a joint bank account. Between October 2011 and June 2014, Mackenzie caused approximately $32,500 in payments to Person A from bank accounts belonging to Conservative StrikeForce, Conservative Majority Fund and Conservative Majority SuperFund. Mackenzie falsely reported to the FEC that Person A received these payments for work that Person A had purportedly provided to Conservative StrikeForce and Conservative Majority Fund. In fact, as Mackenzie knew, Person A—an umbrella retailer with no experience in political fundraising—did not provide any of the purported services to these PACs. The funds were deposited into the bank account that Mackenzie shared with Person A.
In addition, Mackenzie also made false statements to the FEC to conceal the unlawful use of funds raised by Conservative Majority Fund and Tea Party Majority Fund to pay at least $172,200 in legal fees that Conservative StrikeForce and affiliated companies had incurred from a civil lawsuit brought by a former gubernatorial candidate for Virginia.
Finally, Mackenzie admitted that he participated in a scheme to use conduits (also known as straw donors) to make contributions to candidates running for federal public office. Mackenzie used conduits to make these contributions in order to evade limits that federal law placed on individual campaign contributions, as well as prohibitions against corporate contributions.
As part of his guilty plea, Mackenzie agreed to pay $172,200 in restitution to victims of his scheme to illegally funnel money between PACs to pay legal fees.
The FBI’s Washington Field Office is investigating the case. Trial Attorneys Bill Gullotta and John Taddei of the Criminal Division’s Public Integrity Section (PIN) and Assistant U.S. Attorney Kimberly Pedersen of the Eastern District of Virginia are prosecuting the case. Former PIN attorney Molly Gaston provided significant assistance in the case.
Six Members of Global Insider Trading Ring Charged in Manhattan Federal CourtRead the Press Release
Audrey Strauss, Attorney for the United States acting under authority conferred by 28 U.S.C. § 515, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of four indictments and the arrests of three members of a wide-ranging international insider trading ring. BRYAN COHEN, an investment banker based in New York, and TELEMAQUE LAVIDAS, the son of a member of the board of directors of Ariad Pharmaceuticals, Inc. (“Ariad”), which, until 2017, was a Boston-based publicly traded company, were both arrested on Friday in Manhattan. JOSEPH EL-KHOURI, a securities trader, was arrested yesterday in the United Kingdom, and the United States Government will be seeking his extradition to the United States. BENJAMIN TAYLOR and DARINA WINDSOR, former investment bankers who worked in London, as well as GEORGIOS NIKAS, a securities trader who also owns various business interests in Europe and the United States, including a chain of Greek restaurants in New York, remain at large.
Deputy U.S. Attorney Audrey Strauss said: “The insider trading charges announced today lay bare a long-running international scheme stretching over the course of years, whose participants earned tens of millions of dollars in illicit profits from illegally trading on stolen inside information. Our Office, along with our law enforcement partners, will vigorously prosecute those who steal such information and the traders who profit off of it.”
FBI Assistant Director William F. Sweeney Jr. said: “As alleged, the indictments announced today detail very deliberate activity by both current and former investment bankers, securities traders, and even the son of a corporate board member to illegally profit from receiving or providing advanced knowledge of nonpublic information about publicly traded companies. When one has access to material, nonpublic information, they’re afforded significant knowledge that could give them a competitive edge in stock and options trading. Exploiting this knowledge is illegal, and the FBI will continue to investigate and prosecute those who cheat the system in this way.”
As alleged in the Indictments unsealed in Manhattan federal court:[1]
The defendants charged were members of a global insider trading ring. As part of the ring’s illicit conduct, insiders at multiple investment banks obtained material, nonpublic information (“MNPI”) about publicly traded companies and provided that information, sometimes through middlemen, to securities traders who paid for that information in order to place timely, profitable securities trades based on that MNPI. Members of this ring took steps to evade detection by law enforcement, including by using unregistered “burner” cellphones and encrypted applications to communicate. In total, the stolen MNPI was used by securities traders to earn tens of millions of dollars in illegal profits. The charges announced today include charges against investment banking insiders, a close relative of a corporate insider, as well as securities traders who traded on the MNPI.
Investment Bankers Benjamin Taylor and Darina Windsor
Between 2012 and 2016, BENJAMIN TAYLOR and DARINA WINDSOR were investment bankers working in the London offices of two global investment banking advisory firms (“Investment Bank A” and “Investment Bank B,” respectively). By virtue of their employment at those firms, they had access to MNPI relating to corporate transactions involving clients of Investment Bank A and Investment Bank B, and were able to access computer files relating both to transactions to which they were assigned, and those to which they were not assigned. Both TAYLOR and WINDSOR were required to keep that MNPI strictly confidential, and they regularly attested that they were complying with their employers’ policies prohibiting insider trading.
Notwithstanding those attestations, TAYLOR and WINDSOR violated their duties of trust and confidence by stealing MNPI from their investment bank employers relating to numerous corporate transactions. Specifically, TAYLOR stole information from Investment Bank A and sold it to middlemen, and WINDSOR stole information from Investment Bank B and provided it to TAYLOR, who sold it to the same middlemen. TAYLOR and WINDSOR knew that the MNPI they had stolen would be sold to securities traders, who would be able to execute profitable securities transactions in advance of the MNPI becoming public. TAYLOR and WINDSOR received from the middlemen over $1 million of benefits, including cash, expensive trips, and luxury watches, for the MNPI they provided.
In total, TAYLOR and WINDSOR provided the middlemen with information about approximately 16 different corporate transactions, all relating to companies whose securities were listed on United States exchanges. The MNPI that TAYLOR and WINDSOR stole, and then sold, yielded tens of millions of dollars of illicit profits, including by securities traders residing in Switzerland and the United Kingdom.
TAYLOR, who passed the MNPI to the middlemen, used encrypted messaging applications and unregistered “burner” cellphones to communicate with other members of the scheme and arrange in-person meetings to discuss their scheme. One of the securities traders who received the MNPI that TAYLOR and WINDSOR stole occasionally purchased the relevant securities and then provided the MNPI to journalists for the purpose of causing them to write news stories relating to the MNPI that could influence a company’s stock price.
The indictment charging TAYLOR and WINDSOR has been assigned to United States District Judge Vernon S. Broderick.
Investment Banker Bryan Cohen
COHEN is an investment banker working in the investment banking division of a global investment banking advisory firm (“Investment Bank C”). By virtue of his employment at Investment Bank C, COHEN had access to MNPI relating to corporate transactions, and was under duties and obligations to keep that MNPI strictly confidential. COHEN previously worked in the London office of Investment Bank C, and later transferred to its New York office.
Notwithstanding his duties to keep the MNPI confidential, between 2015 and 2017, COHEN stole MNPI from Investment Bank C and passed it to a European securities trader in order to trade based on the MNPI. COHEN informed the securities trader both about corporate acquisitions as well as updates about how the deals were progressing over time. Some of the inside information that COHEN provided related to companies whose securities were listed on United States exchanges. The information that COHEN provided ultimately resulted in substantial profits for the traders who received it and traded based on it. In exchange for providing MNPI he stole from Investment Bank C, COHEN received benefits, including cash, from the securities trader.
COHEN took steps to conceal his scheme, including communicating through “burner” cellphones and receiving cash in person and through intermediaries.
The indictment charging COHEN has been assigned to United States District Judge William H. Pauley III.
Securities Trader Joseph El-Khouri
EL-KHOURI is a securities trader who resides in London, England. Between February and October 2015, he provided cash, gifts, and other benefits, including travel and expensive hotel stays, to a middleman, in exchange for obtaining MNPI about corporate transactions that had been stolen by TAYLOR and WINDSOR and provided to the middleman in exchange for cash and gifts, part of which were used to compensate TAYLOR and WINDSOR for providing that information. In total, EL-KHOURI placed trades in the stocks of at least six companies based on the MNPI and prior to the companies announcing their acquisitions to the public, and generated nearly $2 million in illicit profits from those trades.
EL-KHOURI and the middleman regularly communicated both in person and by phone about their scheme, including by using encrypted messaging applications and “burner” phones that they destroyed and replaced on a regular basis, in order to avoid detection by law enforcement.
The indictment charging EL-KHOURI has been assigned to United States District Judge John G. Koeltl.
Securities Trader Georgios Nikas and Telemaque Lavidas
NIKAS’s Trading Based on MNPI Stolen from Investment Banks
NIKAS is a securities trader who also owns various business interests in Europe and the United States, including a chain of Greek restaurants in New York. NIKAS received MNPI concerning acquisitions and potential acquisitions of publicly traded companies from another securities trader in the scheme. NIKAS knew that the MNPI was obtained from insiders at investment banks who breached their duties in stealing and passing on the information.
NIKAS began trading with the other securities trader based on MNPI that had been collected from investment banking insiders in 2010. From December 2012 through 2017, they obtained MNPI from TAYLOR, WINDSOR, and COHEN, all of whom had stolen the MNPI from their respective investment banks. NIKAS then executed securities trades, both in his own name and in a purported hedge fund that he and the other securities trader used to trade based on the stolen MNPI. NIKAS ultimately placed trades in the securities of at least 12 companies, which were listed on United States exchanges, based on stolen MNPI, and reaped millions of dollars in profits.
NIKAS and others involved in the scheme also took numerous steps to conceal their activity, including using multiple “burner” cellphones to communicate with each other. COHEN even picked up the “burner” cellphones that he used to communicate with other members of the scheme from a restaurant owned and operated by NIKAS in New York.
NIKAS’s Trading Based on MNPI Obtained from Lavidas and Stolen from Ariad
NIKAS also obtained MNPI concerning Ariad from LAVIDAS, the relative of a corporate insider. NIKAS and LAVIDAS together engaged in a scheme, beginning in 2013, to steal confidential inside information from Ariad, a biotechnology company headquartered in Boston that was marketing Iclusig, a drug for treatment of leukemia, for their personal use. NIKAS and LAVIDAS were friends, and NIKAS also had a personal relationship with a member of the board of directors of Ariad (“Director-1”), who was LAVIDAS’s father. LAVIDAS used his connection to Director-1 to obtain MNPI about Ariad and then provided that information to NIKAS, who reaped millions of dollars in profits by trading based on that MNPI. NIKAS also provided the MNPI to another securities trader in the scheme, who also reaped substantial profits by trading on the information. During the course of the conspiracy, NIKAS paid LAVIDAS in exchange for the MNPI.
Specifically, on four separate occasions from 2013 through 2015, Director-1 became aware of MNPI relating to Ariad, and disclosed that information to LAVIDAS, who in turn disclosed it to NIKAS so that NIKAS could trade on it. Those four occasions included an announcement that the European Commission was expected to approve the marketing of Iclusig in or about early July 2013; concerns raised by the U.S. Food and Drug Administration (“FDA”) regarding clinical trials for Iclusig in or about September and October 2013; the resumption of marketing and distribution of Iclusig in the United States in or about November and December 2013; and a confidential offer to acquire Ariad by another company in or about the summer of 2015. In each instance, after NIKAS received the MNPI from LAVIDAS, he executed securities trades based on the MNPI, and then profited after the news was publicly announced.
The indictment charging NIKAS and LAVIDAS has been assigned to United States District Judge Denise Cote.
* * *
A chart listing the age, place of residence, and charges for each of the six charged defendants is attached. Various of the defendants are charged with conspiracy to commit securities fraud and fraud in connection with a tender offer, which carries a statutory maximum sentence of five years in prison, conspiracy to commit wire fraud and securities fraud, which carries a statutory maximum sentence of 20 years in prison, securities fraud pursuant to Title 15 of the United States Code, which carries a statutory maximum of 20 years in prison, fraud in connection with a tender offer, which carries a statutory maximum of 20 years in prison, wire fraud, which carries a statutory maximum of 20 years in prison, and securities fraud pursuant to Title 18 of the United States Code, which carries a statutory maximum of 25 years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Ms. Strauss praised the work of the FBI. She further thanked the Securities and Exchange Commission for its cooperation and assistance in this investigation. She added that the FBI’s investigation was ongoing. The Justice Department’s Office of International Affairs of the Department’s Criminal Division assisted in the investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Unit. Assistant U.S. Attorneys Richard Cooper and Daniel Tracer are in charge of the prosecution.
The allegations contained in the Indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
United States v. Benjamin Taylor and Darina Windsor, S7 19 Cr. 184 (VSB)
United States v. Bryan Cohen, 19 Cr. 741 (WHP)
United States v. Joseph El-Khouri, 19 Cr. 652 (JGK)
United States v. Georgios Nikas and Telemaque Lavidas, 19 Cr. 716 (DLC)
Name
Age
Place of residence
Charges
Number of counts
Benjamin Taylor
35
France
18 U.S.C. § 371 (conspiracy to commit securities fraud and fraud in connection with a tender offer)
18 U.S.C. § 1349 (conspiracy to commit wire fraud and securities fraud)
15 U.S.C. §§ 78j(b) and 78ff, 17 C.F.R. § 240.10b-5 (securities fraud)
15 U.S.C. §§ 78n(e) and 78ff, 17 C.F.R. §§ 240.14e-3(a) and 240.14e-3(d) (fraud in connection with a tender offer)
18 U.S.C. § 1343 (wire fraud)
18 U.S.C. § 1348 (securities fraud)
1
1
16
5
16
1
Darina Windsor
32
Thailand
18 U.S.C. § 371 (conspiracy to commit securities fraud and fraud in connection with a tender offer)
18 U.S.C. § 1349 (conspiracy to commit wire fraud and securities fraud)
15 U.S.C. §§ 78j(b) and 78ff, 17 C.F.R. § 240.10b-5 (securities fraud)
15 U.S.C. §§ 78n(e) and 78ff, 17 C.F.R. §§ 240.14e-3(a) and 240.14e-3(d) (fraud in connection with a tender offer)
18 U.S.C. § 1343 (wire fraud)
18 U.S.C. § 1348 (securities fraud)
1
1
13
5
13
1
Bryan Cohen
33
New York, New York
18 U.S.C. § 371 (conspiracy to commit securities fraud)
18 U.S.C. § 1349 (conspiracy to commit wire fraud and securities fraud)
1
1
Joseph El-Khouri
52
London, United Kingdom
18 U.S.C. § 371 (conspiracy to commit securities fraud and fraud in connection with a tender offer)
18 U.S.C. § 1349 (conspiracy to commit wire fraud and securities fraud)
15 U.S.C. §§ 78j(b) and 78ff, 17 C.F.R. § 240.10b-5 (securities fraud)
15 U.S.C. §§ 78n(e) and 78ff, 17 C.F.R. §§ 240.14e-3(a) and 240.14e-3(d) (fraud in connection with a tender offer)
18 U.S.C. § 1343 (wire fraud)
18 U.S.C. § 1348 (securities fraud)
1
1
6
2
6
1
Georgios Nikas,
a/k/a “George Nikas”
54
New York, New York
Greece
18 U.S.C. § 371 (conspiracy to commit securities fraud)
18 U.S.C. § 371 (conspiracy to commit securities fraud and fraud in connection with a tender offer)
18 U.S.C. § 1349 (conspiracy to commit wire fraud and securities fraud)
15 U.S.C. §§ 78j(b) and 78ff, 17 C.F.R. § 240.10b-5 (securities fraud)
15 U.S.C. §§ 78n(e) and 78ff, 17 C.F.R. §§ 240.14e-3(a) and 240.14e-3(d) (fraud in connection with a tender offer)
18 U.S.C. § 1343 (wire fraud)
18 U.S.C. § 1348 (securities fraud)
1
1
2
11
3
11
2
Telemaque Lavidas
38
New York, New York
Greece
18 U.S.C. § 371 (conspiracy to commit securities fraud)
8 U.S.C. § 1349 (conspiracy to commit wire fraud and securities fraud)
15 U.S.C. §§ 78j(b) and 78ff, 17 C.F.R. § 240.10b-5 (securities fraud)
18 U.S.C. § 1343 (wire fraud)
18 U.S.C. § 1348 (securities fraud)
1
1
3
3
1
[1] As the introductory phrase signifies, the entirety of the text of the Indictments, and the description of the Indictments set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Seneca Falls Man Sentenced for Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Matthew A. Urquhart, 33, of Seneca Falls, NY, who was convicted of possession of child pornography, was sentenced to serve to 44 months in prison and 10 years supervised release by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Kyle P. Rossi, who handled the case, stated that FBI Special Agents identified the defendant actively trading child pornography from a trailer residence in Seneca Falls. Subsequently, FBI agents assisted by the Seneca Falls Police Department and Seneca County Sheriff’s Office, searched two residences that Urquhart occupied. Digital items belonging to Urquhart were seized. A forensic analysis determined that the defendant possessed multiple images and videos of child pornography, including images that depicted the sexual abuse of prepubescent minors.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; the Seneca Falls Police Department, under the direction of Chief Stuart W. Peenstra; and the Seneca County Sheriff’s Office, under the direction of Sheriff W. Timothy Luce.
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Sauk Rapids Man Sentenced to 15 Months in Prison for Filing False Tax ReturnsRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of ADAM M. LASHINSKI, 41, to 15 months in prison for filing false tax returns. LASHINSKI, who pleaded guilty on June 25, 2019, was sentenced on October 21, 2019, before Senior Judge Paul A. Magnuson in U.S. District Court in Saint Paul, Minnesota.
According to the defendant’s guilty plea and documents filed in court, LASHINSKI, who falsely claimed to be a certified public accountant, prepared and filed dozens of fraudulent federal and state individual income tax returns for his acquaintances between 2013 and 2015. LASHINSKI admitted to repeatedly filing returns in the names of the taxpayers that omitted taxable income and claimed false adjustments, deductions, and business expenses, which resulted in larger refunds than what the taxpayers were actually entitled to receive. The total tax loss was $208,550.00
This case was the result of an investigation conducted by the Criminal Investigation Division of the IRS, with assistance from the Minnesota Department of Revenue.
Assistant U.S. Attorney Robert M. Lewis prosecuted this case.
Defendant Information:
ADAM M. LASHINSKI, 41
Sauk Rapids, Minn.
Convicted:
- Filing false tax returns, 1 count
Sentenced:
- 15 months in prison
- One year of supervised release
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Sacramento Man Sentenced to 10 Years in Prison for Possessing Methamphetamine for DistributionRead the Press Release
SACRAMENTO, Calif. — Andre Ramon Washington, 47, of Sacramento, was sentenced today by U.S. District Judge John A. Mendez to 10 years in prison for possessing methamphetamine for distribution, U.S. Attorney McGregor W. Scott announced.
According to court records, federal agents began investigating Washington based on reports that he was distributing narcotics from his home in Sacramento. In 2017 and 2018, agents identified two of Washington’s suppliers — co-defendants Roland Adrian Jufiar, 44, and David Garcia Romero, 44, both from Sacramento. In March 2018, federal agents executed search warrants at Washington’s, Jufiar’s, and Romero’s homes. At Washington’s home, the agents found approximately 1 pound of powder cocaine, a half-pound of cocaine base (crack cocaine), over 2 pounds of methamphetamine, and a 9 mm pistol. Agents found narcotics and firearms at the co-defendants’ homes as well. Washington pleaded guilty on June 25.
In August, Jufiar and Romero pleaded guilty to separate narcotics offenses. They are scheduled to be sentenced in Nov. 2019.
This case is the product of an investigation by the Drug Enforcement Administration with assistance from the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; the Sacramento County Sheriff’s Department; the Sacramento Police Department; the Citrus Heights Police Department; and the Folsom Police Department.
Rogers Physician Arrested for Over-Prescribing Opiates and for Making A False StatementRead the Press Release
Fayetteville, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas and Justin King, Assistant Special Agent in Charge of the Drug Enforcement Administration, announced today that Dr. Robin Ann Cox was arrested today on federal charges. A federal grand jury in the Western District of Arkansas indicted Dr. Cox on one count of Prescribing Without a Legitimate Medical Purpose Outside the Scope of a Professional Practice and one count of Willfully and Knowingly Making a Material False Statement to Federal Investigators.
According to the Indictment, the Drug Enforcement Administration (DEA), Little Rock District Office (LRDO) Tactical Diversion Squad and Diversion groups along with the DEA Fayetteville Resident Office (FRO) initiated an investigation into the Arkansas Medical Clinic in Rogers, AR in 2019. Investigators received multiple complaints from local pharmacists, residents, and police departments in the Northwest Arkansas area of a suspected “pill mill” located in Rogers, Arkansas. Investigators identified Dr. Cox as the physician associated with the clinic and analyzed prescription drug monitoring data attributed to Dr. Cox’s prescribing habits from the date the clinic opened in May 2018 through the middle of September 2019. This analysis revealed Dr. Cox to be a suspected over-prescriber of opioids, and other evidence in the case revealed that many of Dr. Cox’s opioid prescriptions were not written in the usual course of professional practice. Further, Dr. Cox made false statements to agents of the DEA regarding the legitimacy of prescriptions bearing her signature. In the time period analyzed, Dr. Cox prescribed 214,050 tablets of oxycodone, with a street value of approximately $3,204,765 if diverted. Investigators also discovered that approximately 90% of the patients to whom Dr. Cox prescribed controlled substances during that time received a prescription for at least one opioid.
Other agencies participating in the investigation are the Federal Bureau of Investigation (FBI), Texarkana Police Department, the United States Department of Health and Human Services Office of Inspector General (HHS), the Springdale Police Department and the Rogers Police Department. Special Assistant United States Attorney Anne Gardner is prosecuting the case for the United States.
An Indictment is merely an accusation. An arrest warrant represents a finding of probable cause. A person is presumed innocent unless or until he or she is proven guilty beyond a reasonable doubt in a court of law.
Rochester Man Sentenced for Robbery SpreeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Tayvon Rosier, 32, of Rochester, NY, who was convicted of four counts of Hobbs Act robbery, was sentenced to serve to 92 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Sean C. Eldridge, who handled the case, stated that Rosier committed a series of armed robberies at Rochester stores in February 2018, including:
• On February 13, 2018, at the Family Dollar Store at 189 Portland Avenue, Rosier displayed what appeared to be a silver handgun, and demanded money from a store employee. Defendant left with approximately $246.48.
• On February 21, 2018, at the Malcho’s Market Sunoco at 480 Plank Road, Rosier displayed what appeared to be a silver handgun, and told an employee to “give me all the money and show me the tray.” The defendant left with approximately $117 from the store.
• Also on February 21, 2018, at the Fast Trac at 4200 West Henrietta Road, Rosier displayed what appeared to be a silver handgun to a store employee and demanded money and cigarettes. The defendant left the store with approximately $207 in cash, and $781.50 in cigarettes.
• On February 25, 2018, at the 7-Eleven at 3995 West Henrietta Road, Rosier displayed what appeared to be a silver handgun, and demanded money and cigarettes from a store employee. Rosier left the store with approximately $45 in cash, and $714 in cigarettes.The sentencing is the result of an investigation by the Rochester Police Department, under the direction of Chief La’Ron Singletary; the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter; and the Federal Bureau of Investigation, Major Crimes Task Force, under the direction of Special Agent-in-Charge Gary Loeffert.
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Rochester Man Pleads Guilty for His Role in Drug ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Ricardo Casado, 31, of Rochester, NY, pleaded guilty to conspiracy to possess with intent to distribute, and distribution of, quantities of fentanyl and cocaine, before Chief U.S. District Judge Frank P. Geraci, Jr. The charge carries a maximum penalty of 20 years in prison, and a $1,000,000 fine.
Assistant U.S. Attorney Matthew T. McGrath, who is handling the case, stated that Casado was a member of a drug trafficking organization led by his brother, co-defendant Jose Casado. Between December of 2017 and May 15, 2019, the organization distributed large quantities of fentanyl, cocaine, and crack cocaine out of drug houses located on Clifford Avenue and Treyer Street in Rochester.
On January 25, 2019, Ricardo Casado sold 80 baggies of fentanyl and 80 baggies of cocaine in exchange for $600, on behalf of the drug trafficking organization.
The plea is the result of an investigation by the Rochester Police Department, under the direction of Chief La’Ron Singletary, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
Sentencing is scheduled for January 10, 2020, at 11:00 a.m. before Judge Geraci.
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Presque Isle Man Pleads Guilty to Federal Firearm OffenseRead the Press Release
Bangor, Maine: A Presque Isle man pleaded guilty today in federal court in Bangor to possession of a firearm by an unlawful user of controlled substances, U.S. Attorney Halsey B. Frank announced.
According to court records, Samual Mathers, 33, was pulled over while riding as a passenger in a vehicle on April 3, 2018. Officers searched him and found a loaded firearm, methamphetamine and a methamphetamine pipe on his person. He admitted to being an addict who had been using daily for over a year. He also admitted to possessing multiple firearms. A subsequent search of his home revealed over a dozen firearms and ammunition.
Mathers faces up to 10 years imprisonment and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; and the Maine Drug Enforcement Agency investigated the case.
Pittsburgh Man Charged with Receiving and Possessing Child PornographyRead the Press Release
PITTSBURGH, Pa. - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh, Pennsylvania, on charges of receipt and possession of material depicting the sexual exploitation of minors, United States Attorney Scott W. Brady announced today.
The two-count Indictment named James Franklin Young, age 36, as the sole defendant.
According to the Indictment, on or before November 14, 2018, through on or about August 28, 2019, Young received material depicting the sexual exploitation of minors, and on August 28, 2019, Young knowingly possessed videos and images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
The law provides for a term of imprisonment of not less than five years, and not more than 20 years, a fine of $250,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
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 (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Overland Park Man Sentenced to 8+ Years for 44,000 Images of Child PornRead the Press Release
KANSAS CITY, KAN. – An Overland Park man who admitted he collected more than 44,000 images of child porn and shared some with other computer users was sentenced today to 100 months in federal prison, U.S. Attorney Stephen McAllister said.
Robert A. Weick, 33, Overland Park, Kan., pleaded guilty to one count of distributing child pornography. Weick came under investigation when a task force officer from the FBI used a file-sharing program to download child pornography from Weick’s computer. When investigators served a search warrant at Weick’s home, they discovered approximately 44,000 images and 500 videos containing child pornography.
Weick also was ordered to pay $40,000 in restitution to victims who have been identified by the National Center for Missing and Exploited Children. McAllister commended the FBI and Assistant U.S. Attorney Kim Flannigan for their work on the case.
October 26 Is Prescription Drug Take Back DayRead the Press Release
United States Attorney Peter G. Strasser wants to encourage the public to participate in the Drug Enforcement Administration’s (DEA) 17th National Prescription Drug Takeback Day on Saturday, October 26, 2019. The event is an effort to rid homes of potentially dangerous expired, unused, and unwanted prescription drugs and will be held from 10:00 a.m. to 2:00 p.m., at thousands of collection sites around the country, including several here in the Eastern District of Louisiana.
Rates of prescription drug abuse in the United States continue to be alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. The majority of prescription drug abusers say they get their drugs free from friends and family, including from the home medicine cabinet. Take Back Day is a unique opportunity for Americans to protect their homes and medicine cabinets from theft and abuse.
For the first time, DEA will now accept vaping devices and cartridges at any of its drop off locations during National Prescription Drug Take Back Day. It is important to note that DEA cannot accept devices containing lithium ion batteries. If batteries cannot be removed prior to drop-off, DEA encourages individuals to consult with stores that recycle lithium ion batteries.
“DEA’s National Drug Take Back Initiative is one of the most important tools in combating the prescription drug abuse epidemic, stated U.S. Attorney Peter G. Strasser. “Not only does this program prevent unwanted or expired prescription drugs from flooding our communities and landing in the wrong hands, it protects our environment by offering a safe alternative disposal method.”
“Prescription drugs often end up in the wrong hands, feeding an epidemic that kills more Americans than car accidents. DEA’s Take Back Initiative provides citizens an easy and safe way to dispose of unused and unwanted prescription medications. This year, we are taking it a step further by accepting vaping devices and cartridges as we work with our federal partners to combat this emerging public health threat to the nation’s youth,” said DEA Special Agent in Charge Brad L. Byerley.
Over the past 10 years, DEA has collected a total of nearly 11 million pounds (more than 5,400 tons) of expired, unused, and unwanted prescription medications through its Take Back Day events. This weekend, approximately 6,000 collection sites will be manned by nearly 5,000 partner law enforcement agencies. The service is free and anonymous.
In the New Orleans Field Division, the following amounts were collected last April: Louisiana – 7,046 pounds; Mississippi – 3,753 pounds; Alabama – 6,800 pounds; and Arkansas – 28,073 pounds.
For more information or to locate updated collection sites near you, please go the DEA Prescription Drug Take Back Day web site at https://takebackday.dea.gov/#collection-locator where you can search by zip code, city, or state.
DEA Take Back Day PSA: https://youtu.be/KH5lF8gzm9s