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22 October 2019
Additional Charges Filed Against University Athletic Officials and Others in College Admissions CaseRead the Press Release
BOSTON – A federal grand jury in the District of Massachusetts returned a superseding indictment bringing additional charges against seven university athletic officials and others previously charged in the college admissions case today.
Gordon Ernst, Donna Heinel, Jorge Salcedo, Mikaela Sanford, Jovan Vavic, Niki Williams and William Ferguson have been charged with conspiring to commit mail and wire fraud, and honest services mail and wire fraud, in connection with the previously charged scheme to accept bribes and engage in other forms of fraud to facilitate cheating on standardized admissions tests and to secure the admission of students to elite universities by designating them as purported athletic recruits or members of other favored admissions categories. Six of the defendants—Ernst, Heinel, Salcedo, Sanford, Vavic and Williams—also face substantive wire and honest services wire fraud charges in connection with the scheme.
In addition, three defendants, Ernst, Heinel, and Salcedo, face new charges of conspiring to commit federal programs bribery by soliciting and accepting bribes to facilitate the admission of students to the universities where they worked: Georgetown University, the University of Southern California, and The University of California – Los Angeles. Ernst is also charged with substantive counts of federal programs bribery and money laundering.
The defendants, who were arrested in March 2018, were previously charged with racketeering conspiracy in connection with the scheme.
Arraignment dates have not yet been scheduled. Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
The charge of racketeering conspiracy provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater and restitution. The charge of conspiracy to commit mail and wire fraud and honest services mail and wire fraud provides for a maximum sentence of 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of conspiracy to commit federal programs bribery provides for a sentence of up to five years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of mail and wire fraud and honest services mail and wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater and restitution. The charge of money laundering provides for a sentence of up to 10 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of conspiracy to commit mail fraud and honest services mail fraud and federal programs bribery provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. The Department of Education, Office of Inspector General provided assistance with the investigation. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright and Kristen A. Kearney of Lelling’s Securities and Financial Fraud Unit are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Additional Charges Filed Against Parents in College Admissions CaseRead the Press Release
BOSTON – A grand jury in the District of Massachusetts has returned additional charges against 11 of the 15 parents charged in the college admissions case.
The new charges in the third superseding indictment allege that 11 defendants – Gamal Abdelaziz, Diane Blake, Todd Blake, Mossimo Giannulli, Elisabeth Kimmell, Lori Loughlin, William McGlashan, Jr., Marci Palatella, John Wilson, Homayoun Zadeh, and Robert Zangrillo – conspired to commit federal program bribery by bribing employees of the University of Southern California (USC) to facilitate their children’s admission. In exchange for the bribes, employees of the university allegedly designated the defendants’ children as athletic recruits – with little or no regard for their athletic abilities – or as members of other favored admissions categories.
In addition to the conspiracy count, one defendant, John Wilson of Lynnfield, Mass., is charged with two counts of substantive federal programs bribery in connection with his efforts to use bribes to secure his children’s admission to Harvard University and Stanford University. As alleged in the indictment, USC, Harvard and Stanford all receive more than $10,000 annually in grants, subsidies or other forms of federal assistance.
Today’s indictment also includes additional charges of wire fraud and honest services wire fraud against four defendants—Joey Chen, William McGlashan, Jr., John Wilson and Robert Zangrillo—in connection with the previously charged scheme to use bribery and other forms of fraud to obtain falsified standardized test scores and admission to elite colleges and universities as purported athletic recruits or members of other favored admissions categories.
The defendants, all of whom were arrested in March 2019, were previously charged with conspiring with William “Rick” Singer and others, to bribe SAT and ACT exam administrators to allow a test taker to secretly take college entrance exams in place of their children, or to correct the children’s answers after they had taken the exams. The defendants were also previously charged with conspiring to launder the bribes and other payments in furtherance of the fraud by funneling them through Singer’s purported charity and his for-profit corporation, as well as by transferring money into the United States, from outside the United States, for the purpose of promoting the fraud scheme.
Arraignment dates have not yet been scheduled. Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
The charge of conspiracy to commit mail and wire fraud and honest services mail and wire fraud provides for a maximum sentence of 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of conspiracy to commit federal programs bribery provides for a sentence of up to five years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of conspiracy to commit money laundering provides for a maximum sentence of 20 years in prison, three years of supervised release, and a fine of $500,000 or twice the value of the property involved in the money laundering. The charge of wire fraud and honest services wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of federal programs bribery provides for a sentence of up to 10 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. The Department of Education, Office of Inspector General provided assistance with the investigation. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright and Kristen A. Kearney of Lelling’s Securities and Financial Fraud Unit are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
21 October 2019
Youth safety and support is the focus of four U.S. DOJ grantsRead the Press Release
Seattle – About $2 million in U.S. Department of Justice grant funding will flow into Washington State to bolster youth safety, combat gang activity and reduce racial disparities in the juvenile criminal justice system, announced U.S. Attorney Brian T. Moran.
“These grants support efforts to intervene early and stop youth crime and violence before it damages our community,” said U.S. Attorney Moran. “The grant to Seattle Public Schools may even save lives by stopping school violence before a tragedy happens.”
Seattle Public Schools was awarded $496,945 as part of the STOP School Violence Prevention and Mental Health Training Program. The funding will provide students and teachers with training to recognize and respond quickly to violence and to prevent acts of violence. The district will develop threat assessments and crisis intervention teams and an anonymous reporting system for threats, including those from people with mental health issues.
The Washington State Department of Social and Health Services received $872,897 for its work to reduce racial and ethnic disparities in the Washington State juvenile justice system. DSHS’ Office of Juvenile Justice is partnering with the Center for Study and Advancement of Justice Effectiveness (a joint operation of the University of Washington and Washington State University) and the Washington State Center for Court research. One goal is to build more culturally responsive and effective services into pre-court diversion.
The Children and Youth Justice Center received a $500,000 grant for its program to reduce gang related criminal activity. The grant monies will be used to expand and enhance gang prevention, gang resistance and intervention programs, and to expand community awareness about gang violence and its negative effects.
Finally, King County received $171,026 in funding for the newly constructed Children and Family Justice Center. The funding will focus on recruiting quality juvenile detention officers for the new facility.
For additional information on individual grants, please contact the recipient organizations. A fact sheet from DOJ is attached to this release.
department_of_justice_invests_about_85.pdfYonkers Man Charged with Attempted Murder of A Special Deputy United States MarshalRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), Michael Greco, the United States Marshal for the Southern District of New York (“USMS”), and John Mueller, Commissioner of the Yonkers Police Department (“YPD”), announced charges today against MICHAEL CABON for attempting to murder a federal law enforcement officer. The defendant was presented in White Plains federal court this afternoon before United States Magistrate Judge Lisa Margaret Smith.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, the defendant brazenly used deadly force against law enforcement seeking to effectuate a routine warrant. This incident is a solemn reminder of the dangers our law enforcement partners face each and every day. We will work tirelessly to ensure that those who put them in harm’s way face justice.”
FBI Assistant Director William F. Sweeney Jr. said: “People in this country break the law every day, and as law enforcement we are charged with investigating those crimes and holding those criminal accountable. We assume the physical risks when carrying out court ordered actions, but no one should lose their lives while those actions take place. I’m relieved this situation did not turn deadly which is a credit to the professionalism of the arresting officers and agents who were on scene.”
United States Marshal Michael Greco said: “This incident involving members of the U.S. Marshals NY/NJ Regional Fugitive Task Force, highlights the inherent dangers often facing our deputies and task force officers in the performance of their duties. Nevertheless, these courageous and dedicated law enforcement officers continue to uphold their sworn duty in the pursuit of justice without hesitation.”
Yonkers Police Commissioner John Mueller said: “Every officer knows the risks and dangers inherent to law enforcement work but still goes out every day into the world to do the complex and difficult job of keeping us safe. When an officer is assaulted, it is an attack upon our community, our residents, our society, and will be met with swift justice. I am grateful and relieved that the victim will recover and extremely proud of him and the officers at scene; despite being faced with deadly force, they took the defendant into custody and delivered him into the criminal justice system where he must now answer for his acts.”
As alleged in the Complaint[1]:
On October 18, 2019, a joint operation between the U.S. Marshals New York/New Jersey Regional Fugitive Task Force and local law enforcement sought to arrest CABON on a bench warrant issued by a Yonkers City Court Judge. In the course of that arrest, CABON wielded knives in both hands and attempted to stab arresting officers, including a Special Deputy United States Marshal (“Victim-1”). CABON successfully stabbed Victim-1 before being restrained and arrested by other officers. Victim-1 was immediately rushed to a nearby hospital and treated for his injuries.
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CABON, 29, of Yonkers, New York, is charged with one count of attempting to murder a federal officer and one count of using a deadly weapon to interfere with the performance of a federal officer’s official duties. Each count carries a maximum sentence of 20 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.
Mr. Berman praised the outstanding investigative work of the FBI’s Westchester County Safe Streets Task Force, which comprises Special Agents and Task Force Officers from the FBI, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, U.S. Probation, New York State Police, New York City Police Department, Westchester County Police Department, Westchester County District Attorney’s Office, Yonkers Police Department, Mount Vernon Police Department, Peekskill Police Department, Greenburgh Police Department and New Rochelle Police Department. He also thanked the Westchester County District Attorney’s Office for their assistance.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorney Shiva H. Logarajah is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the descriptions of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Woman imprisoned after attempt to smuggle meth with son in carRead the Press Release
LAREDO, Texas – A 26-year old Mexican native from Monterrey, Nuevo Leon, Mexico, has been ordered to federal prison following her conviction for conspiring with intent to distribute more than 40 kilograms of meth, announced U.S. Attorney Ryan K. Patrick. Claudia Janeth Ozuna-Celaya pleaded guilty July 3.
Today, U.S. District Judge Marina Garcia Marmolejo ordered Ozuna-Celaya to serve 87 months of imprisonment. Not a U.S. citizen, she is expected to face removal proceedings following the sentence. During the hearing, the court heard evidence regarding how the meth was hidden inside her car’s tires which required the use of buzz saws and welding torches to extract the bundles. In handing down the sentence, the court noted Ozuna-Celaya brought poison into the United States and made matters worse by including her child in wrongdoing. Judge Marmolejo admonished her in that there was no excuse or justification for her minor son to be with her when she committed this crime.
On March 15, Ozuna-Celaya drove a white Audi with Nuevo Leon license plates into the inspection area of the Border Patrol (BP) checkpoint near Interstate Highway 35 north of Laredo. At the time, her 4-year-old son was present in the vehicle.
During the immigration inspection, a service K-9 alerted to the possibility of concealed narcotics, and authorities immediately referred her to secondary inspection. There, they scanned the vehicle and discovered several abnormalities in the vehicle’s tires. Authorities subsequently searched the tires where they found multiple bundles totaling approximately 49.5 kilograms of meth with a purity of 99%. It is valued at approximately $871,000.
Upon questioning, she claimed to be the owner of the Audi and travelled regularly to San Antonio to go shopping with her cousin. A further investigation confirmed that cousin was not aware she was coming to visit her.
She has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation with assistance from BP. Assistant U.S. Attorney Francisco J. Rodriguez is prosecuting the case.
Wilkes-Barre Man Sentenced to over Seven Years’ Imprisonment for Drug TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that District Judge Robert D. Mariani sentenced Luis Enrique Martinez-Ortiz, age 27, of Wilkes-Barre, to 87 months’ imprisonment on October 16, 2019, for his role in a heroin, cocaine, and crack trafficking organization.
According to United States Attorney David J. Freed, Martinez-Ortiz, also known as “Chino,” pled guilty to conspiracy to distribute and possess with intent to distribute heroin, powder cocaine, and cocaine base, or “crack.” Martinez-Ortiz admitted responsibility for more than 100 grams of heroin, more than 500 grams of cocaine, and more than 28 grams of crack (100 grams of heroin is the equivalent of approximately 4,000 individual doses of heroin). The sentence was enhanced because the Court found that Martinez-Ortiz was either aware that a co-conspirator possessed a firearm or possessed a firearm himself, and because he maintained a premises, an apartment in Avoca, for the purposes of manufacturing or distributing controlled substances.
This indictment was the result of a year-long investigation, in part driven by multiple wiretaps, conducted by the U.S. Drug Enforcement Administration (DEA), Wilkes-Barre Police Department, and Pennsylvania State Police. Assistant U.S. Attorney Sean A. Camoni prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Wetzel County woman admits to selling meth near high schoolRead the Press Release
WHEELING, WEST VIRGINIA – Jaclyn Starkey, of New Martinsville, West Virginia, has admitted to selling methamphetamine, U.S. Attorney Bill Powell announced.
Starkey, age 27, pled guilty to one count of “Distribution of Methamphetamine in Proximity to a Protected Location.” Starkey admitted to selling methamphetamine near Magnolia High School in Wetzel County in April 2019.
Starkey faces up to 40 years incarceration and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Robert H. McWilliams, Jr. is prosecuting the case on behalf of the government. The Marshall County Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the West Virginia State Police investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
West Virginian Business Owners Plead Guilty to Failing to Pay Employment Taxes and Individual Income TaxesRead the Press Release
Two West Virginian business owners pleaded guilty today to conspiring to defraud the United States regarding their employment taxes and individual income taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Michael B. Stuart for the Southern District of West Virginia.
According to court documents, Russell and Karen Rucker, a married couple, operated Rucker, Billups and Fowler Inc. (RBF), an insurance agency located in Huntington, West Virginia. Russell Rucker was the president of RBF and since approximately late 2013, Karen Rucker served as a financial officer. Between September 2015 and September 2018, the Ruckers withheld approximately $143,226 in payroll taxes from the wages of RBF’s employees, which they did not pay over to the Internal Revenue Service (IRS) despite their obligation to do so. Instead, the Ruckers diverted portions of the withheld funds for their own personal benefit. For instance, from 2014 through 2016 the Ruckers continued to pay themselves over $500,000 in salary. In response to IRS collection efforts and in an attempt to conceal funds from the IRS, the Ruckers deposited money into the bank account of another individual. The Ruckers also attempted to evade IRS levies by using a series of bank accounts that they did not disclose to the IRS and by paying many of their bills, including their mortgage, in cash.
The Ruckers also attempted to evade payment of $114,911 of Russell Rucker’s 2001, 2002, and 2005 individual income taxes by disguising paychecks issued to Russell Rucker as non-taxable “note proceeds.” Additionally, the Ruckers have failed to file their individual income tax returns and RBF’s corporate returns for 2014 through 2017. The intended tax loss caused to the IRS by their conduct is more than $250,000.
Sentencing has been scheduled for Jan. 27, 2020. The Ruckers each face a statutory maximum sentence of five years in prison. They also face monetary penalties, a period of supervised release, and restitution.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Stuart commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Alexander Effendi and Lauren Archer of the Tax Division, who are prosecuting this case.
United States Attorney Benjamin C. Glassman announces resignationRead the Press Release
CINCINNATI – United States Attorney Benjamin C. Glassman, 44, of Greater Cincinnati, has announced his resignation effective 3pm on Nov. 1.
Glassman, a graduate of Rice University and Harvard Law School, joined the U.S. Attorney’s Office in 2005. After becoming Acting United States Attorney in March 2016, he has served as United States Attorney for the Southern District of Ohio since his appointment to that position by Attorney General Loretta Lynch in October 2016. He previously served as First Assistant United States Attorney, Acting Criminal Chief and Appellate Chief.
The office increased its total productivity every year during Glassman’s tenure. A chart of some of the most significant or noteworthy cases pursued under his leadership is attached.
These include the United States’ first-ever indictment and extradition of an alleged Chinese intelligence officer for attempted economic espionage, a prosecution for racketeering of the Ohio clique of MS-13 that has resulted in a life sentence for its leader, one of only two criminal cases in the nation against an opioid wholesaler and its executives, prosecutions arising out of several of the most significant financial frauds in the history of Ohio and West Virginia, the first-ever federal carfentanil-trafficking case, criminal civil rights prosecutions for hate crimes and other offenses under color of state law, crimes of public corruption, and far-reaching investigations and prosecutions for exploitation of the most vulnerable.
The U.S. Attorney’s Office also devoted increased resources and attention to federal civil rights laws, and has led significant civil litigation to enforce the guarantees of the Fair Housing Act and the Americans with Disabilities Act.
Glassman sought to address the opioid crisis and violent crime not only by devoting resources to those areas but also by building and leveraging partnerships among law enforcement at all levels of government.
The office developed task-force approaches to combatting opioid distribution, appointed prosecutors specifically for enforcement in that area, and partnered with the Criminal Division of the Department of Justice to multiply effectiveness.
Beginning in 2016, the office created violent crime working groups among law enforcement and prosecuting agencies to share intelligence and analytics, and to strategize the most effective ways to address those individuals responsible for a disproportionate share of violence.
Prevention efforts in these areas included outreach to middle and high school populations regarding opioid addiction and the student pledge against gun violence.
The district also completed call-in programs for high-risk probationers in all three seats of court and worked with the United States Probation Office to build programs to improve the reentry of citizens completing prison sentences.
Current data show that both fatal overdoses and violent crime in the district are declining.
During his tenure as United States Attorney, Glassman served on the Terrorism and National Security Subcommittee of the Attorney General’s Advisory Committee, as well as the Department of Justice’s Heroin & Opioid, Health Care Fraud, Domestic Terrorism, and MS-13 Working Groups. He is a member of the interagency Domestic Terrorism Executive Committee and currently chairs the executive board of the Ohio High Intensity Drug Trafficking Area. Glassman also personally litigated cases at both the trial and appellate levels and was the first in the last twenty years to try a criminal case in this district to verdict while serving as U.S. Attorney.
Law enforcement and community partners offered the following statements:
United States Marshal Pete Tobin
“Ben Glassman has a tremendous energy and enthusiasm for his work. He has been quick to publicly recognize the great work of law enforcement personnel in many agencies. He has always taken time to talk with any of us when we needed a word. Always with a smile, always with kindness, always a gentleman, he has created a special atmosphere among all of us in law enforcement within our district. He will be sorely missed by all of us.”
Dayton Police Chief Richard Biehl
“I have known Ben Glassman for nearly two decades and have been impressed with his career progression as an Assistant U.S. Attorney and most recently as the U.S Attorney for the Southern District of Ohio. In the past few years, the Dayton Police Department has worked closely with Ben Glassman and his prosecutorial team on enforcement strategies to address the opioid epidemic crisis in the Miami Valley that involved key arrests and prosecutions, helping to curtail the illicit drug market that had led to the largest number of overdose deaths regionally and nationally that I have witnessed in more than 40 years of law enforcement and community safety service. The recent federal charges filed against nineteen individuals for drug offenses related to the trafficking of fentanyl, cocaine, methamphetamine and heroin involving a regional drug ring is just one example. Also, U.S Attorney Glassman and his staff provided significant investigative support via expedited search warrants to examine digital evidence related to the suspect in the Oregon District mass shooting.
I have always been impressed with Ben’s professionalism, dedication to public service, and support of local, state and federal law enforcement partners in the pursuit of public safety and community justice. We will miss his great skill and dedication that has been of such great service to our community and the Miami Valley region!”
DEA Operational Support Assistant Administrator Tim Plancon
“Mr. Glassman has been a staunch ally of DEA’s efforts as we work to combat drug trafficking in Southern Ohio and the violence and devastation that inevitably follows. He is a tremendous prosecutor who has always focused on public safety and safeguarding Ohians.”
DEA Special Agent in Charge Keith Martin
“Under U.S. Attorney Glassman’s leadership this past summer, we saw the indictment of two executives of a now defunct wholesale drug distributor that was flooding the Appalachian region with millions of units of opioids. This historical step of holding a distributor accountable is just one example of his commitment to justice.”
IRS-CID Special Agent in Charge, Chicago Field Office, Kathy A. Enstrom
“From the moment Ben Glassman became the U.S. Attorney for Southern Ohio, he was dedicated to ensuring the most egregious criminals were investigated and brought to justice. The support that IRS Criminal Investigation received from Ben and his office demonstrated his commitment to ensuring tax and money laundering criminals were brought to justice. It was an honor and pleasure to work alongside Ben during my time as Special Agent in Charge of the Cincinnati Field Office.”
Cincinnati Police Chief Eliot K. Isaac
“U.S. Attorney Benjamin Glassman and the entire staff of the Southern District of Ohio have been amazing partners with the Cincinnati Police Department during Mr. Glassman’s tenure and we greatly appreciate his leadership. Under Attorney Glassman's leadership there have been several critical cases that have led to the successful prosecution of priority offenders who were causing significant harm to our community through gun violence and illicit drug trafficking. It has been a privilege to work with Attorney Glassman and we look forward to our continued collaboration with the Southern District of Ohio.”
Kim Jacobs, former Columbus Police Chief
"U.S. Attorney Ben Glassman epitomizes professionalism and integrity. He put country and community first and ensured that violent criminals were investigated and charged in accordance wih the law and justice. He was humble and effective at the same time."
Washintgon County Sheriff Larry Mincks
"It has been my pleasure to work with Ben for the last several years. Ben was the only U.S. Attorney who frequently visited Washington County and assisted us in criminal investigations. He utilized the assets of his office to prosecute criminals violating federal statutes who otherwise would have gone untouched. It was satisfying to know the federal government had an interest in our small community."
Jackie Congedo, Director, Jewish Community Relations Council of Cincinnati
“U.S. Attorney Glassman has been a true partner in the work of securing all faith communities in southwest Ohio. In the Jewish community, we are particularly grateful for his courageous, thorough, and precedent-setting prosecution of hate crime—sending a strong and urgent message that crime motivated by bias will not be tolerated. During a time when incidents of antisemitism and other forms of hate are on the rise, U.S. Attorney Glassman’s commitment to the cause of justice for targeted communities has been nothing short of critical, and we are truly grateful for his service.”
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Significant casesU.S. Attorney Announced Latest Assistant U.S. Attorney HiresRead the Press Release
Below please find for new Assistant U.S. Attorneys hired and placed in this office. Thank you.
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Brian Dunn came to the office after nearly 11 years as a deputy district attorney at the Denver District Attorney’s Office. Before that, he was in private practice at firms in Chicago and New York. He earned his law degree from the Georgetown University Law Center. Brian is assigned to the office’s Violent Crime and Immigration Enforcement Section of the Criminal Division.
Cyrus Chung came to the office after serving as an Assistant District Attorney in the Middlesex County District Attorney’s Office in Massachusetts. Prior to that he clerked for 1st Circuit Court of Appeals Judge Bruce M. Selya and Judge Richard J. Holwell of the Southern District of New York, and also spent 2 years in private practice. Cyrus earned his law degree from Harvard Law School. He is assigned to the office’s Narcotics Section of the Criminal Division.
R. Josh Player joined the office after 22 years of legal practice. During that time he was a Senior Attorney/Unit Chief for the Salt Lake County District Attorney’s Office, Assistant Attorney General for the State of Utah, a solo practitioner, and clerked for a State District Court Judge. Josh earned his law degree from Seattle University School of Law. He is assigned to the Durango Branch Office and focuses on Indian Country prosecutions and serves as the office’s trial liason.
Laura McNabb came to the office after 3 years in a private practice. She clerked for Colorado Supreme Court Chief Justice Nancy E. Rice and 10th Circuit U.S. Court of Appeals Judge David. M. Ebel. Laura earned her B.A. from the University of Denver and her J.D. from the University of Colorado Law School. Laura is assigned to the office’s Civil Division.
U.S. Attorney Andrew Murray to Testify Before U.S. Senate Judiciary SubcommitteeRead the Press Release
CHARLOTTE, N.C. – On October 22, 2019, United States Attorney Andrew Murray will testify at a hearing before the Senate Judiciary Subcommittee on Sanctuary Jurisdictions: The Impact on Public Safety,” scheduled to begin at 10:00 a.m.
Can be viewed via this link: https://www.judiciary.senate.gov/meetings/sanctuary-jurisdictions-the-impact-on-public-safety-and-victims
Tyler County man sentenced for firearms violationRead the Press Release
WHEELING, WEST VIRGINIA – Michael John Maisey, of Sistersville, West Virginia, was sentenced today to 37 months incarceration for a firearms charge, United States Attorney Bill Powell announced.
Maisey, age 49, pled guilty to one count of “Unlawful Possession of a Firearm” in May 2019. Maisey, being prohibited from possessing a firearm, admitted to having a 9mm caliber pistol in July 2018 in Tyler County.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Martinsville Police Department investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Two Lower Brule Men Sentenced for AssaultRead the Press Release
United States Attorney Ron Parsons announced that two Lower Brule, South Dakota, men convicted of Assault by Striking, Beating, or Wounding were sentenced by U.S. Magistrate Judge Mark A. Moreno.
Carlton Felicia, age 20, was sentenced on October 15, 2019, and Grant Whitney, age 21, previously sentenced on September 9, 2019, were both sentenced to 2 years of probation, and a special assessment to the Federal Crime Victims Fund in the amount of $25.
Felicia and Whitney were indicted by a federal grand jury on February 13, 2019. Felicia pled guilty on October 15, 2019, and Whitney pled guilty on July 19, 2019.
The convictions stemmed from an incident on July 1, 2018, when Felicia and Whitney were socializing with an individual and at some point in the evening, an argument began between the three of them. Felicia and Whitney struck and beat the victim about the head and face.
This case was investigated by the Bureau of Indian Affairs, Lower Brule Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Felicia and Whitney were both released following their sentencing hearings to begin serving their terms of probation.
Trucker Sentenced for Stealing Load of MeatRead the Press Release
KANSAS CITY, KAN. – A California trucker working for a Kansas freight brokerage was sentenced today to 15 months in federal prison for stealing a load of meat valued at more than $160,000, U.S. Attorney Stephen McAllister said.
Gegham Avetisyan, 37, Valley Village, Calif., pleaded guilty to one count of wire fraud. Avetisyan contracted with a trucking freight brokerage business in Olathe to deliver a load of meat to three locations in California. He faxed documents to the company in which he used the name Robert Ivanov. He picked up the meat at a packing plant in Omaha, but never delivered it.
McAllister commended the FBI and Assistant U.S. Attorney Chris Oakley for their work on the case.
Three defendants plead guilty to federal charges in sex trafficking ringRead the Press Release
ALBUQUERQUE, N.M. – Three defendants pleaded guilty on Oct. 15 in federal court to charges of sex trafficking and coercion and enticement to engage in prostitution.
Adonis Baker, 35, of Albuquerque, pleaded guilty to sex trafficking of a child. He admitted meeting “Jane Doe 6,” a teen between the ages of 15 and 18, while in Phoenix between Aug. 15, 2017, and Aug. 17, 2017. Baker convinced “Jane Doe 6” to get into his car by offering her drugs. Baker then drove her to Albuquerque, and took her to his apartment where he told her she was to engage in commercial sex acts. Baker faces a sentence of 14 years in prison based on the terms of his plea agreement.
Inkosi Grandberry, 38, of Albuquerque, pleaded guilty to transportation for prostitution by coercion and enticement. Grandberry admitted in a plea agreement to committing this offense on June 3, 2015. Grandberry aided and abetted Adonis Baker in persuading “Jane Doe 1” to travel by automobile from Phoenix to Albuquerque for prostitution. Grandberry paid for a hotel in Phoenix as part of the offense. Grandberry faces up to 20 years in prison.
Leotha Williams, 58, of Memphis, Tennessee, also pleaded guilty to transportation for prostitution by coercion and enticement. Williams admitted in a plea agreement to approaching “Jane Doe 2” with Adonis Baker at a bus stop in Albuquerque between June 2016 and September 2016. Williams and Baker instructed “Jane Doe 2” to get into a vehicle with them. They then traveled to Colorado Springs, Colorado, where Williams ensured “Jane Doe 2” engaged in prostitution. Williams faces 36 months to 60 months in prison under the terms of the plea agreement. The defendants will be sentenced at a later date to be scheduled by the court.
Homeland Security Investigations investigated this case with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Albuquerque Police Department, and the Bernalillo County Sheriff’s Office. Assistant U.S. Attorneys Letitia Simms and Joseph M. Spindle are prosecuting the case.
Texas Man Who Orchestrated Email Phishing Attack on Los Angeles Superior Court Sentenced to over 12 Years in Federal PrisonRead the Press Release
LOS ANGELES – A Texas man who was found guilty of hacking into the Los Angeles Superior Court (LASC) computer system, using the system to send approximately 2 million malicious phishing emails, and fraudulently obtaining hundreds of credit card numbers was sentenced this afternoon to 145 months in federal prison.
Oriyomi Sadiq Aloba, 33, of Katy, Texas, was sentenced by United States District Judge R. Gary Klausner, who also ordered Aloba to pay $47,479 in restitution.
In July 2017, Aloba and his co-conspirators targeted the LASC for a phishing attack. During the attack, the email account of one court employee was compromised and used to send phishing emails to co-workers purporting to be from the file-hosting service Dropbox. The email contained a link to a bogus website that asked for the users’ LASC email addresses and passwords. Thousands of court employees received the Dropbox email, and hundreds disclosed their email credentials to the attacker. The compromised email accounts then were used to send the roughly 2 million phishing emails.
These additional phishing emails purported to be from American Express, Wells Fargo, and other companies. Hyperlinks in the fraudulent emails led victims to a webpage that asked for their banking login credentials, personal identifying information, and credit card information. The link for the fake American Express website used source code that designated Aloba’s email account as the delivery address for the information that the victims input into the fake website.
After linking Aloba to the attack, investigators executed a search warrant at Aloba’s residence, which revealed a thumb drive in a toilet, a damaged iPhone in a bathroom sink, and a laptop computer with a smashed screen that was smeared with fresh blood. Nearby, agents found a broken mug, which apparently was used to smash the laptop computer, and observed blood on Aloba’s hands.
Following a three-day jury trial in July, Aloba was found guilty of one count of conspiracy to commit wire fraud, 15 counts of wire fraud, one count of attempted wire fraud, one count of unauthorized impairment of a protected computer, five counts of unauthorized access to a protected computer to obtain information, and four counts of aggravated identity theft. Aloba was remanded into custody after the verdicts were read.
Aloba’s targeting of the “largest court system in the world… merits special attention,” prosecutors wrote in a sentencing memorandum filed with the court. Aloba’s “conduct resulted in a substantial disruption to the administration of the LASC, including taking hundreds of employees offline for hours, at a minimum, and possibly days. His conduct diverted substantial resources from the critical tasks LASC personnel undertake daily, resulting in over $45,000 in losses to the LASC. And perhaps most importantly, he compromised the integrity of the LASC, which is a court system that thousands of people rely on to administer justice.”
Aloba was initially charged by the Los Angeles County District Attorney, but the matter was referred to the United States Attorney’s Office for federal prosecution.
A co-defendant, Robert Charles Nicholson, who used the online moniker “Million$Menace” and used stolen credit card information to make purchases, a 28-year-old resident of Brooklyn, New York, pleaded guilty in June to one count of conspiracy to commit wire fraud. Nicholson is scheduled to be sentenced by Judge Klausner on November 4. Three other defendants allegedly hired by Aloba to create the “phishing kits” remain at large outside the United States.
This matter was investigated by the Federal Bureau of Investigation and the Los Angeles County District Attorney’s Office.
This case is being prosecuted by Assistant United States Attorney Ryan White, Chief of the Cyber and Intellectual Property Crimes Section.
Texas Man Sentenced for Possession of Credit Card Counterfeiting DeviceRead the Press Release
CHARLESTON, W.Va. – A Texas man was sentenced to federal prison for possession of credit card counterfeiting devices and altered credit cards, announced United States Attorney Mike Stuart. Defendant Tofyk Ali Oro, 32, was sentenced to 14 months in prison and 3 years supervised release for possession of a device to counterfeit credit cards.
“Oro intended to victimize many individuals,” said United States Attorney Mike Stuart. “As a result of the excellent work of U.S. Postal Inspectors and U.S. Secret Service Agents, Oro will be going to federal prison instead of carrying out his fraudulent plans.”
Oro previously admitted that on November 30, 2018 he shipped 55 credit cards and the device equipment from Austin, Texas to Charleston, West Virginia. He further admitted the intent with the 55 cards was to defraud individuals whose accounts were linked to those cards.
The United States Secret Service and the United States Postal Inspection Service conducted the investigation. United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney Chris Arthur handled the prosecution.
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Staten Island Doctor Pleads Guilty to Illegally Distributing OxycodoneRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that NKANGA NKANGA, a Staten Island physician, pled guilty to illegally distributing oxycodone and other controlled substances. NKANGA pled guilty before United States Magistrate Judge Debra Freeman to narcotics conspiracy and distribution charges. NKANGA will be sentenced by United States District Judge Jesse M. Furman, to whom the case is assigned.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As he admitted today, Nkanga Nkanga violated the law and the oath of his profession by knowingly selling prescriptions for dangerous opioids to people who did not need them. Indeed, he sold prescriptions to people he had reason to believe were addicted to these potentially lethal drugs. Now he awaits sentencing for his role as a drug dealer masquerading as a doctor.”
According to the allegations in the Indictment to which NKANGA pled guilty, public court filings, and statements made in court:
From at least 2013 until late 2018, in exchange for cash payments, NKANGA wrote hundreds of oxycodone and other controlled substances prescriptions for patients he knew had no legitimate medical need for them, some of whom displayed visible signs of drug addiction. NKANGA wrote prescriptions for these highly addictive substances without conducting any physical examination, or seeing patients in an examination room. NKANGA wrote prescriptions in the names of patients who did not even visit his medical office. On one occasion, for instance, NKANGA asked a patient, “[H]ow many people are you representing today,” and then wrote prescriptions in the names of multiple people, even though three were not present. NKANGA regularly prescribed over 100 oxycodone pills per patient per month until mid-2018, when he reduced all patients’ monthly allotment, telling one patient he was “very worried” about scrutiny from law enforcement.
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NKANGA, 66, of Staten Island, New York, pled guilty to one count of conspiracy to distribute controlled substances and four counts of distribution of controlled substances. Each count carries a maximum sentence of 20 years in prison. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Sentencing before Judge Furman is scheduled for January 30, 2020, at 3:30 p.m.
Mr. Berman praised the outstanding investigative work of the Drug Enforcement Administration’s (“DEA”) New York Tactical Diversion Squad, the U.S. Department of Health and Human Services-Office of the Inspector General, and the New York City Police Department (“NYPD”). DEA’s Tactical Diversion Squad (Group TDS-NY) comprises agents and officers from the DEA, the NYPD, the New York State Police, New York State Department of Financial Services, and New York City Department of Investigation.
This case is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Nicolas Roos, Jacob R. Fiddelman, and Cecilia E. Vogel are in charge of the prosecution.
South Yarmouth Man Charged with Drug PossessionRead the Press Release
BOSTON – A South Yarmouth man was arrested on Friday, Oct. 18, 2019, and charged with fentanyl possession.
Roosevelt Wilkins, 33, was charged by indictment on one count of possession with intent to distribute 40 grams or more of fentanyl. Wilkins was detained pending a probable cause and detention hearing set for Oct. 25, 2019.
As alleged in the indictment, on April 1, 2019, Wilkins possessed and intended to distribute 40 grams or more of fentanyl in Brockton.
The charging statute provides for a minimum mandatory sentence of 5 years and up to 40 years in prison, four years to a lifetime of supervised release, and a fine of up to $5 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement today.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
South Bay Doctor Sentenced to Two Years in Prison for Unlawfully Distributing Hydrocodone and Committing Health Care FraudRead the Press Release
SAN JOSE – South Bay doctor Venkat Aachi was sentenced today to 24 months in prison for health care fraud and for distributing hydrocodone outside the scope of his professional practice and without a legitimate medical need, announced United States Attorney David L. Anderson, Drug Enforcement Administration (DEA) Special Agent in Charge Chris Nielsen, Federal Bureau of Investigation Special Agent in Charge John F. Bennett, U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) Special Agent in Charge Steven J. Ryan, and the California Department of Justice Bureau of Medi-Cal Fraud and Elder Abuse (BMFEA). The sentence was handed down by the Honorable Edward J. Davila, U.S. District Judge.
Aachi, 52, of Saratoga, pleaded guilty to the charges on March 25, 2019. According to the plea agreement, Aachi was a licensed physician who operated a pain clinic in San Jose and maintained a DEA registration number authorizing him to prescribe controlled substances. Aachi admitted that from September 18, 2017, through July 2, 2018, he wrote hydrocodone-acetaminophen prescriptions that were outside the scope of his professional practice and not for a legitimate medical purpose.
“Dr. Venkat Aachi went from doctor to drug dealer when he prescribed highly addictive painkillers without a physical examination or legitimate medical need,” stated DEA Special Agent in Charge Chris Nielsen. “Regardless of title or degree, no one is above the law. DEA will hold medical practitioners accountable if they operate outside the scope of their professional practice, putting patients and lives others at risk.”
“Physicians who unlawfully prescribe opioids are directly contributing to the opioid crisis,” said FBI Special Agent in Charge John F. Bennett. “Venkat Aachi violated his oath and the trust of our community by illicitly pushing controlled substances to persons without need. The FBI, along with our local, state and federal partners, will continue to investigate and pursue medical professionals who violate the public's trust and defraud our healthcare system.”
“Aachi abused his medical license to prescribe controlled substances and, as a result, will be serving time behind bars,” said Steven J. Ryan, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “This sentence is a warning to criminals who knowingly commit fraud and perpetuate the nation’s opioid epidemic.”
“The message we are sending today is clear: if you prescribe dangerous drugs in an irresponsible manner, we are coming after you,” said Attorney General Becerra. “Medical professionals should be safeguarding the welfare of their patients, not risking their lives. My office will continue to work with our law enforcement partners to fight against all forms of healthcare fraud in California.”
The plea agreement describes transactions in which Aachi improperly distributed hydrocodone. For example, in November of 2017, he wrote a prescription enabling a patient to receive 90 hydrocodone-acetaminophen pills. Aachi did not conduct a physical examination of the patient nor discuss the patient’s pain or response to prior medication. Aachi acknowledged that he knew the prescriptions were not for a legitimate medical purpose and that he did not write the prescriptions in the usual course of his professional practice. Aachi also admitted that on July 2, 2018, he falsely submitted to an insurance company a false and fraudulent claim for payment for healthcare benefits, items, and services. Aachi admitted he acted with the intend to defraud the insurance company.
In filings submitted by the government in connection with Aachi’s sentencing, the government wrote that over the course of just one year, Aachi wrote 5,992 prescriptions for controlled substances, the majority of which were for narcotics. Further, from September 2017, to July 2018, four undercover law enforcement agents posed as new patients. They visited Aachi about four times each, and after each visit, they received a prescription for a schedule II controlled substance with little to no physical examination.
A federal grand jury indicted Aachi on October 9, 2018, charging him with six counts of distributing drugs outside the scope of professional practice, in violation of 21 U.S.C. § 841(a)(1) and (b)(1)(C), and one count of health care fraud, in violation of 18 U.S.C. § 1347. Aachi pleaded guilty to one count under each statute.
In addition to the prison term, Judge Davila ordered Aachi to serve 3 years of supervised release and ordered him to pay $82,616.85 in restitution. Judge Davila ordered Aachi to begin serving his sentence on January 22, 2020.
Assistant U.S. Attorney Shailika Kotiya is prosecuting the case with the assistance of Andy Ding. This prosecution is the result of investigations by the DEA, FBI, HHS-OIG, and the BMFEA. Through the BMFEA, the California Department of Justice regularly works with other law enforcement agencies to investigate and prosecute fraud perpetrated on the Medi-Cal program against a wide variety of healthcare providers, including doctors and pharmaceutical companies.
Somerset County Woman Stole $164K in Social Security Payments Meant for Her Dead Mother-in-LawRead the Press Release
JOHNSTOWN, Pa. - A resident of Meyersdale, Pa., pleaded guilty in federal court to a charge of theft of government funds, United States Attorney Scott W. Brady announced today.
Donalee Harvey, 72, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that from Dec. 3, 1997, to March 2, 2018, Harvey did receive and convert falsely to her own use a total of $164,862, which represents approximately 236 separate Social Security Administration benefit payments made to another person to which she was not entitled. That person was her mother-in-law, V.H., who died in 1985.
Judge Gibson scheduled sentencing for Feb. 27, 2020, at 10:00 a.m. The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Arnold P. Bernard, Jr. is prosecuting this case on behalf of the government.
The Social Security Administration, Office of Inspector General, conducted the investigation that led to the prosecution of Harvey.
Shawnee Man Sentenced to 168 Months for Methamphetamine Distribution, Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Claude J. Jeffers, Jr., age 38, of Shawnee, Oklahoma, was sentenced to 168 months’ imprisonment and 5 years of supervised release for Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A), and for Felon In Possession Of Firearm, in violation of Title 18 United States Code, Sections 922(g)(1) and 924(a)(2). The charges arose from an investigation by the Oklahoma Highway Patrol and the Drug Enforcement Administration.
The Indictment alleged that on August 8, 2018, within the Eastern District of Oklahoma, the defendant knowingly and intentionally possessed with intent to distribute 50 grams or more of methamphetamine (actual), a Schedule II controlled substance. Additionally, the Indictment alleged that the defendant knowingly possessed a firearm which had been shipped and transported in interstate commerce after he had been convicted of a crime punishable by imprisonment for a term exceeding one year.
United States Attorney Brian J. Kuester said, “The number of deaths in Oklahoma resulting from methamphetamine overdoses continue to rise. Dosage units of methamphetamine seized as a result of a law enforcement investigations do not reach potential users and do not cause death. I applaud the diligent work of the Oklahoma Highway Patrol and the DEA against the dealers of the poison that has taken countless lives.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Jarrod Leaman represented the United States.
Scottsdale, Arizona Man Sentenced to 60 Months for Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Javier Ivan Torres, age 29, of Scottsdale, Arizona, was sentenced to 60 months’ imprisonment and 3 years of supervised release for Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A). The charges arose from an investigation by the Oklahoma Highway Patrol and the Drug Enforcement Administration.
The Indictment alleges that on December 27, 2018, within the Eastern District of Oklahoma, the defendant knowingly and intentionally possessed with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
United States Attorney Brian J. Kuester said, “The defendant had hoped to profit by transporting methamphetamine across the country and delivering it to Memphis. Because of the diligent work of the Oklahoma Highway Patrol, his business venture ended in Sequoyah County, Oklahoma. As deaths related to methamphetamine overdoses continue to rise, interdiction, investigation, and prosecution of drug dealers must continue to be a priority.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Ryan Heatherman represented the United States.
SDTX groups among those awarded school violence grantsRead the Press Release
HOUSTON – Four Southern District of Texas (SDTX) school districts and a state agency area among those receiving Department of Justice (DOJ) grants to bolster school security and support first responders. DOJ announced the awards today, totaling more than $85.3 million, designed to educate and train students and faculty as well as support first responders who arrive on the scene of a school shooting or other violent incident.
“Creating a safe learning environment for our children is necessary,” said U.S. Attorney Ryan K. Patrick. “These grants will help local school districts and first responders train and create systems and programs that make our schools safer and better prepared for serious events.”
“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.”
Among those in the SDTX receiving various grants include the McAllen, Humble, Pasadena and Mission Consolidated Independent School Districts (ISD), Humble ISD Police Department and Texas Department of Public Safety.
President Trump signed the STOP School Violence Act into law in March 2018, authorizing grants designed to improve threat assessments, train students and faculty to provide tips and leads, and prepare law enforcement officers and emergency professionals to respond to school shootings and other violent incidents.
The Office of Justice Program’s (OJP) Bureau of Justice Assistance and DOJ’s Office of Community Oriented Policing Services manage the programs and administer the grants, which include funds to:
- Develop school threat assessment teams and pursue technological solutions to improve reporting of suspicious activity in and around schools;
- Implement or improve school safety measures, including coordination with law enforcement, as well as the use of metal detectors, locks, lighting and other deterrent measures;
- Train law enforcement to help deter student violence against others and themselves;
- Improve notification to first responders through implementation of technology that expedites emergency notifications;
- Develop and operate anonymous reporting systems to encourage safe reporting of potential school threats;
- Train school officials to intervene when mentally ill individuals threaten school safety; and
- Provide training and technical assistance to schools and other awardees in helping implement these programs.
For more details about these individual award programs, as well as listings of individual 2019 awardees, visit https://go.usa.gov/xVJuV.
About the OJP:
‘Principal Deputy Assistant Attorney General Katharine T. Sullivan directs the OJP which 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 (COPS):
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1994, COPS 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.
Rosebud Woman Sentenced for Assault with a Dangerous WeaponRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, woman convicted of Assault With a Dangerous Weapon was sentenced on October 21, 2019, by U.S. District Judge Roberto A. Lange.
Victoria Smashed Ice, age 27, was sentenced to 27 months in federal prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Smashed Ice was indicted by a federal grand jury on May 14, 2019. She pled guilty on July 22, 2019.
The conviction stemmed from an incident that occurred in Rosebud on April 1, 2019, wherein Smashed Ice repeatedly kicked a child, while wearing cowboy boots.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Michael J. Elmore prosecuted the case.
Smashed Ice was immediately turned over to the custody of the U.S. Marshals Service.
Prior Federal Fraud Convict Arrested on New Charges of Bank Fraud, Wire Fraud, and Aggravated Identity TheftRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that last Thursday in federal court, CHARLES GILBERT MURPHY, 63, of Apex, NC, was charged in a 26-count federal indictment alleging various acts of Bank Fraud, Wire Fraud, Making False Statements on a Loan, Making False Statements to the FBI, Aggravated Identity Theft, and Subscribing to False Tax Returns. He was arrested by the FBI today in Raleigh.
The Indictment alleges that MURPHY, both directly and through the use of various entities and individuals, engaged in a number of frauds and schemes to cause individuals and businesses to part with their money.
The Indictment alleges that MURPHY was subject to collection efforts by the United States Government arising from a prior federal conviction for Wire Fraud in June of 1999 in this same district. As such, the Indictment alleges that MURPHY caused family members to open bank accounts for him in the name of various companies he controlled, referred to in the Indictment as the “Murphy Entities.” These entities were Toxic Solutions LLC (“Toxic Solutions”), Biological Marine Remediation LLC (“Bio-Remediation”), Bio Marine Remediation LLC (“Bio-Marine”), Bio Separation Systems, LLC (“Bio-Separation”), On-Site Solutions LLC (“On-Site Solutions”), and On-Site Technologies LLC (“On-Site Technologies”).
The Indictment alleges that MURPHY used the bank accounts in the name of the Murphy Entities to conduct his personal business. In particular, the Indictment alleges that in an effort to obtain loan proceeds from banks and lenders, Murphy created and caused to be created various false documents which were given to bank and lender underwriters and agents in support of loans. Such false documents included false bank statements for Toxic Solutions, false tax returns for Toxic Solutions, and false statements regarding revenue.
In addition to his attempts to obtain lender monies using false documents, the Indictment alleges that MURPHY also used the Murphy Entities to obtain money from individuals and entities under false and fraudulent pretenses. According to the Indictment, MURPHY represented that the Murphy Entities performed environmental cleanup activities, such as water remediation. MURPHY purported to offer to various entrepreneurial victims the opportunity to purchase exclusive rights to perform environmental cleanup services in a given geographic area. MURPHY also purported to sell the equipment necessary to perform the cleanup services. In furtherance of the scheme, MURPHY frequently presented false documents to the entrepreneurs to make it appear that funds had been allocated for services to be performed in the geographic area where the victims had purchased the exclusive rights. In reality, the documents justifying the exclusive rights purchase were falsified, and MURPHY took the money without providing all of the equipment purchased.
The Indictment asserts that after MURPHY conducted the scheme in the name of one of the Murphy Entities, he shifted the scheme to one of the other Murphy Entities to perpetuate the fraud. MURPHY also began to use some of the Murphy Entities for the purposes of obtaining merchant cash advances from commercial lenders. In doing so, MURPHY misrepresented, among other things, the revenues of his company, and the fact that he had obtained other merchant cash advances.
In addition to the foregoing schemes upon lenders and individuals, the Indictment also alleges that MURPHY conducted a fraud upon banks by presenting and causing to be presented to the banks numerous false and fraudulent checks.
In July of 2018, the Federal Bureau of Investigation interviewed MURPHY concerning the foregoing schemes. After being warned that lying to the FBI was a federal offense, the Indictment charges that MURPHY nevertheless made numerous materially false and fraudulent statements during the interview.
Lastly, the Indictment alleges that in the midst of carrying out the aforementioned frauds, MURPHY was also filing false tax returns. The Indictment alleges that despite receiving substantial sums of cash from the Murphy entities, MURPHY never included this information on his tax returns.
If found guilty, the maximum punishment for Bank Fraud and Making False Statements on a Loan is up to 30 years in prison. The maximum punishment for Wire Fraud is up to 20 years in prison. The maximum punishment for Making False Statements to the FBI is up to 5 years in prison. The maximum punishment for Subscribing to False Tax Returns is up to 3 years in prison. The maximum punishment for Aggravated Identity Theft is not less than, nor more than 2 years in prison consecutive to any other term of imprisonment imposed.
The Government continues to investigate all losses associated with the frauds alleged in the Indictment. If you feel that you may have been a victim of any of these offenses, and have not already reported losses to the Government, please contact the FBI or the US Attorney’s Office.
An Indictment is an allegation of a crime. The defendant is presumed under the law to be innocent until proven guilty.
The Federal Bureau of Investigation, the Internal Revenue Service - Criminal Investigation and the North Carolina Department of the Secretary of State investigated this case. Assistant United States Attorney William M. Gilmore represents the United States.
Pennsylvania man admits to role in a drug distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Armand Taylor, of Penn Hills, Pennsylvania, has admitted to his role in a drug distribution operation, U.S. Attorney Bill Powell announced.
Taylor, also known as “Scrap,” age 26, pled guilty to one count of “Distribution of Heroin.” Taylor admitted to selling heroin in June 2017 in Harrison County.
Taylor faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Traci M. Cook is prosecuting the case on behalf of the government. The case was investigated by the Greater Harrison Drug and Violent Crimes Task Force and the West Virginia State Police Bureau of Criminal Investigation.
U.S. Magistrate Judge Michael John Aloi presided.Pecos Credit Union C.E.O. and Former State Employee Sentenced to Federal Prison for Financial Institutional Fraud Conspiracy and Failure to File a Tax ReturnRead the Press Release
In Pecos today, a federal judge sentenced Reeves County Teachers Credit Union (RCTCU) Chief Executive Officer and former state of Texas employee James T. “Jimmy” Dutchover to eight (8) months in federal prison for defrauding the credit union and willfully failing to file a federal income tax return, announced U.S. Attorney John F. Bash; FBI Special Agent in Charge Christopher Combs, San Antonio Division; and, Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge Richard D. Goss, Houston Field Office.
In addition to the prison term, U.S. District Judge David Counts ordered that Dutchover pay a $4,000 fine as well as all taxes, penalties and interest owed to the IRS. That amount has yet to be determined. Judge Counts also ordered that Dutchover be placed on supervised release for a period of three (3) years after completing his prison term. Dutchover will remain on bond pending formal notification by the U.S. Bureau of Prisons as to the date and facility he is to surrender to begin serving his prison term.
On May 29, 2019, Dutchover pleaded guilty to a Superseding Information charging him with one count of conspiracy to defraud RCTCU and to obtain money and property owned by it or under its care, custody and control by means of materially false and fraudulent pretenses and representations, and one count of willfully failing to file a federal income tax return.
The government noted at sentencing that Dutchover conspired with then State Senator Carlos Uresti to obtain $10,000 from RCTCU by having a loan made in the name of a relative of Dutchover, which was in reality for the benefit of Uresti and was ultimately paid to the victim in the FourWinds case, Denise Cantu. Further, for the year 2015, Dutchover, having received gross income from several sources, including approximately $9,197 from the State of Texas, wage income in the amount of approximately $107,153 from the Reeves County Teachers Credit Union, and approximately $77,350 from his sole proprietorship, Derich Enterprises, willfully failed to make an income tax return to the IRS.
The FBI’s Public Corruption Task Force consisting of investigators from the FBI and IRS–CI investigated this case. Assistant U.S. Attorneys William R. Harris and Joseph E. Blackwell prosecuted this case for the government.
Paterson, New Jersey, Man Sentenced to 25 Years in Prison for Distributing HeroinRead the Press Release
NEWARK, N.J. – A Paterson, New Jersey, man was sentenced today to 300 months in prison for the distribution of kilogram quantities of heroin, U.S. Attorney Craig Carpenito announced.
Reinaldo Rodriguez, 30, a/k/a “Memo,” and “Killa,” was convicted in April 2019 of conspiracy to distribute a kilogram or more of heroin and possession with the intent to distribute heroin following a four-day trial before U.S. District Judge Susan D. Wigenton, who imposed the sentence today in Newark federal court.
According to documents filed in this case and the evidence presented at trial:
From June 2015 through April 20, 2016, Rodriguez participated in a conspiracy to distribute heroin to street-level drug dealers in the Paterson area. The conspirators obtained their heroin from a supplier in Bronx, New York, where it was packaged and stamped “Goosebumps,” “Transformers,” “Wendy’s” and “New Jack City,” designating the source. Law enforcement officials conducted surveillance while Rodriguez delivered stamped “bricks” of heroin to a confidential source. Rodriguez also was heard discussing drug trafficking on court-authorized wiretaps.
In addition to the prison term, Judge Wigenton sentenced Rodriguez to six years of supervised release.
U.S. Attorney Carpenito credited special agents and task force officers of the U.S. Drug Enforcement Administration, New Jersey Division, under the direction of Special Agent in Charge Susan A. Gibson, and the Paterson Police Department, under the direction of Police Director Jerry Speziale and Police Chief Troy Oswald, with the investigation leading to today’s sentencing.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies dedicated to identifying and dismantling the most serious drug trafficking, weapons trafficking and money laundering organizations.
The government is represented by Assistant U.S. Attorney Jamie L. Hoxie of the Cyber Crimes Unit and Assistant U.S. Attorney Heather Suchorsky of the Organized Crime/Gangs Unit of the U.S. Attorney’s Office in Newark.
Defense counsel: John P. McGovern Esq. and Christopher Dunn Esq., Newark
Passaic County Man Admits Role in Stealing Employer’s Toothpaste FormulasRead the Press Release
NEWARK, N.J. – A former research technician and scientist for a worldwide consumer products company that researched, developed, designed, manufactured, marketed, and sold oral care consumer products today admitted stealing toothpaste formulas from the company, U.S. Attorney Craig Carpenito announced.
Muamer Reci, 57, of Haskell, New Jersey, pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging him with one count of conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court:
In August 2012, two individuals established a consumer hygiene and cleaning products company, Reci & Sons, which, in November 2015, established a subsidiary, Reci Enterprises, in Macedonia. Reci never disclosed the existence of Reci & Sons or Reci Enterprises to his employer (Victim 1).
A document dated July 31, 2016, and titled “Project Eurodent” was recovered from Reci’s work email account. The document (the Eurodent Business Plan) described a plan for Reci Enterprises to develop, manufacture, and sell a toothpaste named Eurodent. The Eurodent Business Plan listed as one of its objectives to “Launch Reci Enterprises research labs, and manufacturing complex to the public by fourth quarter of Year 2017.” The Eurodent Business Plan valued the business at roughly $2 million.
As the anticipated construction date for manufacturing facility approached, Reci sent several emails to an individual at Reci & Sons attaching Victim 1’s proprietary toothpaste formulas for existing products and an unreleased toothpaste product, as well as proprietary laboratory procedures for Victim 1’s products. For example, on Aug. 9, 2017, Reci sent an email to “Person 1” stating: “[p]rint this [sic] formulas and file them.” Attached to the email were proprietary toothpaste formulas belonging to Victim 1, including formulas for a dry mouth toothpaste that Victim 1 had not yet launched and a children’s toothpaste marketed by Victim 1. The email also attached the formula for Reci Enterprises’ Eurodent toothpaste, which contained proprietary signature features of an existing Victim 1 product.
The wire fraud count with which Reci is charged carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for Feb. 10, 2020.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Ari B. Fontecchio of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Defense counsel: Ronald Ricci Esq., Totowa, New Jersey
Parents in College Admissions Case Plead GuiltyRead the Press Release
BOSTON – A California husband and wife charged in the college admissions scandal pleaded guilty today in federal court in Boston.
Manuel Henriquez, 55, the founder of Hercules Capital, and his wife, Elizabeth Henriquez, 56, both of Atherton, Calif. pleaded guilty today to an indictment charging one count of conspiracy to commit mail and wire fraud and honest services mail and wire fraud and one count of conspiracy to commit money laundering. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for March 5 and Feb. 7, 2020, respectively.
Beginning in 2015, the Henriquezes conspired with Rick Singer, and others, to have their daughters’ college entrance exams corrected, thereby fraudulently inflating their scores; Elizabeth Henriquez agreed with Singer to facilitate the admission of her older daughter to Georgetown University as a purported athletic recruit.
In October 2015, co-conspirator Mark Riddell purported to proctor the SAT exam for the Henriquezes’ older daughter, but in actuality, Riddell provided her with the answers. Soon after, the Henriquezes wired $15,000 to Singer’s personal bank account and $10,000 to Singer’s for-profit college counseling business. Singer used some of that money to pay Riddell. Beginning in 2015, Elizabeth Henriquez agreed to pay Singer an amount, ultimately totaling $400,000, to facilitate their older daughter’s admission to Georgetown as a purported tennis recruit. After their daughter was admitted to Georgetown in the spring of 2016, the Henriquezes made a $400,000 donation to Singer’s sham charity, Key Worldwide Foundation, to pay for the fraud, and Singer, in turn, made payments to Ernst personally.
In 2016 and 2017, the Henriquezes participated in the ACT and SAT cheating scheme on multiple occasions for their younger daughter in exchange for payments funneled through KWF.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
The charge of conspiracy to commit mail and wire fraud and honest services mail and wire fraud provides for a maximum sentence of 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of conspiracy to commit money laundering provides for a maximum sentence of 20 years in prison, three years of supervised release and a fine of $500,000 or twice the value of the property involved in the money laundering. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright and Kristen A. Kearney of Lelling’s Securities and Financial Fraud Unit are prosecuting the cases.
The details contained in the court documents are allegations and the remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Parent in College Admissions Case Pleads GuiltyRead the Press Release
BOSTON – A California woman pleaded guilty today in federal court in Boston to paying $300,000 to participate in both the college entrance exam cheating scheme and athletic recruitment scheme.
Michelle Janavs, 48, of Newport Coast, Calif., pleaded guilty to an indictment charging her with one count of conspiracy to commit mail and wire fraud and honest services mail and wire fraud and one count of conspiracy to commit money laundering. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Feb. 25, 2020.
Beginning in 2017, Janavs conspired with Rick Singer and others to secure her children’s admission to selective colleges and universities through bribery and fraud. On Oct. 28, 2017, Janavs’ older daughter took the ACT exam at a test center in West Hollywood that Singer “controlled” through a corrupt test proctor, Mark Riddell, who reviewed and corrected her answers. In November 2017, Janavs sent a $50,000 check to KWF to pay for the fraud. In February 2019, Janavs older daughter again took the ACT at the West Hollywood Test Center, and Riddell corrected her answers. Later that month, Janavs wired $25,000 to KWF and mailed a $25,000 check to KWF. Singer, in turn, passed bribes to Riddell and to Igor Dvorskiy, the administrator of the test center.
Beginning in 2018, Janavs agreed to with Singer to facilitate her older daughter’s admission to the University of Southern California (USC) as a purported volleyball recruit. In August 2018, Janavs emailed Singer photos of her daughter playing volleyball. In October 2018, a USC athletics administrator, Donna Heinel, secured approval to admit Janavs’ daughter from the USC subcommittee for athletic admissions based on the falsified athletic credentials. Later that month, Janavs mailed Heinel a $50,000 check made payable to USC Women’s Athletic Fund. Janavs was arrested before her older daughter received her formal admission to USC and, accordingly, did not pay the remaining $150,000 of the initially agreed upon amount.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
The charge of conspiracy to commit mail and wire fraud and honest services mail and wire fraud provides for a maximum sentence of 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of conspiracy to commit money laundering provides for a maximum sentence of 20 years in prison, three years of supervised release, and a fine of $500,000 or twice the value of the property involved in the money laundering. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright and Kristen A. Kearney of Lelling’s Securities and Financial Fraud Unit are prosecuting the cases.
The details contained in the court documents are allegations and the remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Owner of Pharmacies Convicted of Conspiracy to Defraud IRSRead the Press Release
TRENTON, N.J. – The owner of several retail pharmacies, including a pharmacy in Piscataway, New Jersey, was convicted today on charges he conspired to defraud the IRS, U.S. Attorney Craig Carpenito announced.
Rao Desu, 52, of Warren, New Jersey, was convicted on all counts of the indictment against him: two counts of conspiracy to defraud the IRS and four counts of aiding and assisting in subscribing to false tax returns, following a two-week trial before U.S. District Judge Michael A. Shipp in Trenton federal court. The jury deliberated less than four hours before returning the guilty verdicts.
According to documents filed in this case and statements made in court:
Rao Desu was a 50 percent owner in DVS Pharma Inc., (d/b/a Heights Pharmacy), a retail pharmacy in Piscataway. Darshna Desai was the other 50 percent owner and worked as the lead pharmacist. From April 2004 through November 2013, Desu conspired with Desai to conceal from the IRS the cash income that was earned by the pharmacy as part of a cash-skimming scheme. In particular, Desu’s relative, who assisted at times in the operation of several of Desu’s businesses, instructed Desai to separate the cash earned by Heights Pharmacy from other income received, remove a portion of the cash that was paid to Desai as cash salary, and then split the remainder in two, with one portion given to Desu and the other portion given to Desai.
Desu was also a 50 percent owner of Manvihar Pharmacy (d/b/a Arthur Avenue Pharmacy) in Bronx, New York. The other 50 percent owner in Arthur Avenue Pharmacy worked at Arthur Avenue Pharmacy as the lead pharmacist. From June 2005 through November 2013, Desu conspired with the co-owner to conceal from the IRS the cash income that was earned by the pharmacy as part of a separate cash-skimming scheme. Specifically, Desu instructed the co-owner to separate the cash earned by Arthur Avenue Pharmacy from other income received, and to split the cash in two, giving half to Desu and giving half to the co-owner.
For tax years 2004 through 2012 Desu and Desai filed false corporate income tax returns, IRS Forms 1120S, for Heights Pharmacy, which failed to disclose the cash that Desai received in salary and that was split between Desu and Desai. From tax year 2005 through 2012, Desu and the co-owner filed false IRS Forms 1120S for Arthur Avenue Pharmacy, which failed to disclose the cash that was split between Desu and co-owner. Accordingly, for tax years 2004 through 2012, Desu filed false personal income tax returns, IRS Forms 1040, which failed to disclose the cash that Desu received from both Heights Pharmacy and Arthur Avenue Pharmacy.
Desai pleaded guilty to conspiracy to defraud the IRS in 2014. Her sentencing is scheduled for Feb. 26, 2020.
Conspiracy to defraud the IRS carries a maximum potential penalty of five years in prison and a $250,000 fine. Assisting and aiding in subscribing to false tax returns carries a maximum potential penalty of three years in prison and a $100,000 fine. Desu’s sentencing will be scheduled at a later date.U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s guilty verdicts. He also thanked special agents of the U.S. Department of Justice - Office of the Inspector General, under the direction of Special Agent in Charge Guido Modano, for their role in the investigation.
The government is represented by Assistant U.S. Attorneys Jacques S. Pierre and Elaine K. Lou of the Special Prosecutions Division.
Defense counsel: Jay Nanavati Esq., and Mayling C. Blanco Esq., New York
Orange County Man Sentenced to Nearly Five Years in Prison for Vehicular Assault that Severely Injured Federal OfficerRead the Press Release
SANTA ANA, California – An Aliso Viejo man was sentenced today to 57 months in federal prison for deliberating driving his Mercedes-Benz sedan into and severely injuring a U.S. Customs and Border Protection employee at the federal building in Laguna Niguel.
Geoffrey Donald Rickner, 48, was sentenced by United States District Judge James V. Selna.
Rickner pleaded guilty on May 14 to one felony count of assault on a federal employee by use of a dangerous and deadly weapon and inflicting bodily injury.
On March 3, 2016, Rickner deliberately drove his Mercedes-Benz into CBP Security Specialist Jose Gutierrez at the Chet Holifield Federal Building, which is commonly known as the Ziggurat Building. Mr. Gutierrez was in a well-marked crosswalk and was wearing his federal employee identification card at the time of the attack. He suffered permanent and life-threatening injuries – including head trauma, broken ribs, internal bleeding and badly damaged legs – that put him in the hospital for nearly three weeks and continue to cause him pain and physical impairment.
When Rickner struck Mr. Gutierrez, the vehicle was travelling at such a high rate of speed that it continued traveling into the Ziggurat, going through a metal garage door, and stopping only when it struck a concrete wall inside the building.
By the time of the March 2016 attack, Rickner had been involved in a years-long dispute with the IRS regarding his tax situation, according to the prosecution’s sentencing memorandum. Though he had worked and earned money, Rickner, a certified financial planner, became involved in a “tax denial” group, stopped paying taxes, and began incurring large civil penalties for non-payment of tax.
“Although the financial mess was entirely of his own making, the resulting stress made defendant frustrated and angry…with the IRS and, more generally, the U.S. government,” according to the government’s sentencing brief.
In the hours leading up to the assault, Rickner had been seen behaving suspiciously, prompting building security personnel at one point to detain him. At that time, he made comments about owing money to the IRS. Rickner had shown up to the Ziggurat Building earlier that day to talk with someone at the IRS, despite not having an appointment. Rickner was told to leave the premises, and he did. But he returned later in the day, during which time he was seen pacing the building in an agitated manner, and he subsequently got into his car, later crashing into Mr. Gutierrez in the crosswalk.
The investigation in this case was conducted by the FBI and the U.S. Treasury Inspector General for Tax Administration.
This matter was prosecuted by Assistant United States Attorney Robert J. Keenan of the Santa Ana Branch Office.
Onondaga County Receives Nearly $250,000 in DOJ Funding to Address School SecurityRead the Press Release
SYRACUSE, NEW YORK – Today, 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 safety of our schools is a critical public safety priority. These federal funds will help school districts in Onondaga County enhance their efforts to prevent school violence and address mental health crises effectively, with staff training and youth activities that will facilitate their focus on teaching and learning,” said United States Attorney for the Northern District of New York Grant C. Jaquith.”
The STOP School Violence Prevention and Mental Health Training Program included a grant of $249,989 in funding to prevent violence in Onondaga County schools. President Trump signed the STOP School Violence Act into law in March 2018, authorizing grants that are designed to improve threat assessments, train students and faculty to provide tips and leads, and prepare law enforcement officers and emergency professionals to respond to school shootings and other violent incidents. The grant programs are managed by OJP’s Bureau of Justice Assistance and the Justice Department’s Office of Community Oriented Policing Services.
The Bureau of Justice Assistance, within the Department’s Office of Justice Programs, and the Office of Community Oriented Policing Services manage the programs and administer the grants, which include funds to:
- Develop school threat assessment teams and pursue technological solutions to improve reporting of suspicious activity in and around schools;
- Implement or improve school safety measures, including coordination with law enforcement, as well as the use of metal detectors, locks, lighting and other deterrent measures;
- Train law enforcement to help deter student violence against others and themselves;
- Improve notification to first responders through implementation of technology that expedites emergency notifications;
- Develop and operate anonymous reporting systems to encourage safe reporting of potential school threats;
- Train school officials to intervene when mentally ill individuals threaten school safety; and
- Provide training and technical assistance to schools and other awardees in helping implement these programs.
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.
North Dakota Woman Indicted for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Ron Parsons announced that a Bismarck, North Dakota, woman has been indicted by a federal grand jury for Conspiracy to Distribute Methamphetamine.
Melissa Rose Decoteau, a/k/a Melissa Rose Bobtail Bear, age 34, was indicted on July 16, 2019. She appeared before U.S. Magistrate Judge William D. Gerdes on October 16, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 40 years in federal prison and/or a $5,000,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that beginning at a time unknown, but no later than March 1, 2018, and continuing to June 17, 2018, Decoteau, knowingly and intentionally, combined, conspired, confederated, and agreed with others to knowingly and intentionally distribute and possess with intent to distribute 50 grams or more of methamphetamine.
The charge is merely an accusation and Decoteau is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Decoteau was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
More Than $900,000 Awarded to Local Schools to Address ViolenceRead the Press Release
KANSAS CITY, Mo. – More than $900,000 in grants have been awarded to schools in the Western District of Missouri to bolster school security – including funding to educate and train students and faculty and to support first responders who arrive on the scene of a school shooting or other violent incident.
“Our kids’ schools should be safe environments where they can focus on learning, free from threats of violence,” said U.S. Attorney Tim Garrison. “These STOP School Violence grants help provide the resources our schools need to protect students, including partnering with local law enforcement.”
Six school districts received a total of $912,288 in grants from the Department of Justice, in addition to a $999,372 grant awarded to the Missouri Department of Public Safety.
“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.”
Recipients of grant awards in the Western District of Missouri are: • Raytown Consolidated School District 2: $250,000 (anonymous reporting technology)
• Warsaw R-IX School District: $142,068 (school violence prevention)
• City of Breckenridge: $120,593 (school violence prevention)
• Stoutland R-II School District: $84,055 (school violence prevention)
• South Pemiscot R-V Schools: $96,663 (school violence prevention)
• Lawson R-XIV School District: $315,572 (school violence prevention)
• Missouri Department of Public Safety: $999,372 (to create or enhance state school safety centers)Five of the school district grants fall under the COPS’ School Violence Prevention Program. This is the second year the COPS program will provide K-12, primary and secondary schools up to 75 percent funding for the following school safety measures: • Coordination with law enforcement; • Training for local law enforcement officers to prevent student violence against others and themselves; • Metal detectors, locks, lighting, and other deterrent measures; • Technology for expedited notification of local law enforcement during an emergency; • Any other measure that the COPS Office determines may provide a significant improvement in security.
The Department of Justice announced today that more than $85.3 million in grants were awarded nationally. The STOP School Violence Act authorizes grants that are designed to improve threat assessments, train students and faculty to provide tips and leads, and prepare law enforcement officers and emergency professionals to respond to school shootings and other violent incidents.
The Bureau of Justice Assistance, within the Department’s Office of Justice Programs, and the Office of Community Oriented Policing Services manage the programs and administer the grants, which include funds to: • Develop school threat assessment teams and pursue technological solutions to improve reporting of suspicious activity in and around schools; • Implement or improve school safety measures, including coordination with law enforcement, as well as the use of metal detectors, locks, lighting and other deterrent measures; • Train law enforcement to help deter student violence against others and themselves; • Improve notification to first responders through implementation of technology that expedites emergency notifications; • Develop and operate anonymous reporting systems to encourage safe reporting of potential school threats; • Train school officials to intervene when mentally ill individuals threaten school safety; and
• Provide training and technical assistance to schools and other awardees in helping implement these programs.For more details about these individual award programs, as well as listings of individual 2019 awardees, visit https://go.usa.gov/xVJuV
About the Office of Justice Programs: The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal justice system. More information about OJP and its components can be found at www.ojp.gov.
About the Office of Community Oriented Policing Services: The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1994, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of approximately 130,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit www.cops.usdoj.gov.Michigan Sex Offender Sentenced to Life for Traveling to Destin to Have Sex with A ChildRead the Press Release
PENSACOLA, FLORIDA – Ronald Roscoe, 56, of Traverse City, Michigan, was sentenced in federal court today to life in prison for attempted enticement of a minor, travel with intent to engage in illicit sexual conduct, and transporting material involving sexual exploitation of minors. The sentence was announced by Lawrence Keefe, United States Attorney for the Northern District of Florida.
“It’s hard to imagine the level of depravity that leads someone to try to entice an adolescent into a sexual encounter,” Keefe said. “The depth of moral corruption behind this scheme is the reason the U.S. Attorney’s Office is unyielding in its prosecution of these predators.”
In September 2018, an undercover Okaloosa County Sheriff’s Office investigator began chatting online to identify individuals interested in exploiting children. An individual, later identified as Roscoe, sent a private message via a social media platform to the investigator, who was posing as a 12-year-old girl. Over the next month, Roscoe discussed engaging in sexual activity with the investigator posing as the girl and about meeting “her” in Florida.
During the week of October 15, 2018, Roscoe informed the “girl” that he had purchased an airplane ticket to fly from Michigan to Florida to engage in sexual activity with her over the upcoming weekend. Law enforcement located a hotel in Destin where Roscoe had reserved a room. Roscoe was arrested at the Destin-Fort Walton Beach Airport. A search of his cellular telephone revealed child pornography images and videos depicting children under age 12.
“This child predator thought he was traveling to Florida to have sex with a child,” said Micah
McCombs, Tampa Assistant Special Agent in Charge with Homeland Security Investigations. “Instead, he was stopped by HSI special agents and our partners at the Okaloosa County Sheriff’s Office, highlighting the important work of the North Florida Internet Crimes Against Children Task Force.”The case was investigated by Homeland Security Investigations, the Okaloosa County Sheriff’s
Office, and the North Florida Internet Crimes Against Children Task Force. The case was prosecuted by First Assistant United States Attorney Jeffrey M. Tharp.The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of
Florida website. For more information about the United States Attorney’s Office, Northern
District of Florida, visit http://www.justice.gov/usao/fln/index.html.Massachusetts Man Sentenced to 24 Months for Traveling to New Hampshire to Engage in Illicit Sexual ConductRead the Press Release
CONCORD- Jean Fouad Yazbek, 63, of Norwood, Massachusetts, was sentenced in federal court on Friday to 24 months in prison for traveling to New Hampshire with intent to engage in illicit sexual conduct, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, in October 2018, members of the New Hampshire Internet Crimes Against Children Task Force conducted an undercover investigation targeting online sexual offenders. As part of this investigation, a detective created an undercover online persona of a 15-year-old girl (“UC”) residing in Nashua, New Hampshire. Various individuals, including Yazbek, began messaging the UC on social media soon after the account was registered. Beginning on October 2, 2018, and continuing through October 8, 2018, Yazbek engaged in sexually-charged conversations over social media with the UC. In their conversations, Yazbek discussed his desire to engage in various sex acts, including sexual intercourse, with the UC whom he believed was a 15-year-old girl.
On October 8, 2018, Yazbek drove from Massachusetts to Nashua, New Hampshire, to meet the UC and engage in illicit sexual conduct at a local hotel. When Yazbek arrived, he encountered law enforcement officers instead and was placed under arrest. Yazbek admitted that he had planned to meet a 15-year-old girl whom he had met online. He further admitted that he intended to engage in illicit sexual conduct, including sexual intercourse, with the girl. According to Yazbek, he had checked into a local hotel prior to his arrest, and his hotel room contained a brand new phone, a teddy bear, undergarments, and a backpack containing shaving equipment, lubricant, and condoms. Yazbek gave written consent to search his hotel room. Officers later searched his hotel room and found the items described by Yazbek during his interview.
Yazbek previously pleaded guilty on May 14, 2019.
“Protecting the well-being of our children is a high priority of the law enforcement community,” said U.S. Attorney Murray. “It is disturbing that criminals are lurking online and seeking to prey upon children in the Granite State. Thankfully, this defendant’s efforts to victimize a young girl were thwarted by excellent law enforcement work. Predators who use the internet should be aware that law enforcement officers will be alert and watching. We will not hesitate to bring federal charges against those who threaten the safety of children in New Hampshire.”
“Yazbek thought he was traveling across state lines to have sex with a 15 year old, but his fantasy came to an abrupt end when he found himself in handcuffs” said Jason J. Molina, acting Special Agent in Charge of HSI Boston. “Today’s sentencing should send a strong message to those who seek to sexually exploit children – state lines will not impede the efforts of the law enforcement community in safeguarding our children and bringing predators to face justice.”
This matter was investigated by the Nashua Police Department, Immigration and Customs Enforcement’s Homeland Security Investigations, and the New Hampshire Internet Crimes Against Children Task Force. The case was prosecuted by Assistant U.S. Attorney Cam Le.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Manhattan U.S. Attorney Announces Forfeiture of North Korean Cargo VesselRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and John C. Demers, Assistant Attorney General for National Security, announced today the entry of a judgment of forfeiture regarding the M/V Wise Honest (the “Wise Honest”), a 17,061-ton, single-hull bulk carrier ship flagged in the Democratic People’s Republic of Korea (“DPRK” or “North Korea”). The Wise Honest, one of the largest North Korean-flagged vessels, was used to conduct large illicit shipments of coal from North Korea and to import heavy machinery back to the DPRK. Payments for maintenance, equipment, and improvements of the Wise Honest were made in U.S. dollars through unwitting U.S. banks, in violation of U.S. law and United Nations Security Council resolutions.
U.S. Attorney Geoffrey S. Berman said: “Today’s judgment of forfeiture finalizes the U.S. government’s seizure of the Wise Honest and officially takes this North Korean vessel out of commission. It will no longer be used to further a criminal scheme. Using the full set of tools at our disposal, we will continue to investigate and prosecute attempts to evade U.S. sanctions, including by the North Korean regime.”
Assistant Attorney General for National Security John C. Demers said: “This order of forfeiture sinks the Wise Honest’s career as one of North Korea’s largest sanctions-busting vessels. The Department of Justice will continue to pursue other property used to violate U.S. and international sanctions, around the globe, with the cooperation of our international partners.”
According to documents filed in Manhattan federal court:
Pursuant to the International Emergency Economic Powers Act (“IEEPA”) and the North Korea Sanctions and Policy Enhancement Act of 2016 (“NKSPEA”), the DPRK and individuals or entities that the Department of the Treasury, Office of Foreign Assets Control (“OFAC”) has determined are involved in the facilitation of proliferation of weapons of mass destruction (“WMDs”) are prohibited from engaging in transactions with U.S. persons, involving U.S.-origin goods, or using the U.S. financial system. The United Nations Security Council has similarly prohibited the provision of goods, technology, and services to North Korea, including the sale, supply, or transfer of coal.
From November 2016 through April 2018, the Wise Honest was used by Korea Songi Shipping Company, an affiliate of Korea Songi General Trading Corporation – which, in 2017, OFAC determined was “subordinate to the [Korean People’s Army] and involved in exporting North Korean coal” – and one of Korea Songi Shipping Company’s representatives, Kwon Chol Nam, to export coal from North Korea to foreign purchasers and import machinery to North Korea (the “Korea Songi Scheme”).
On March 14, 2018, the Wise Honest was loaded with coal in Nampo, North Korea. On April 2, 2018, Indonesian maritime authorities intercepted and detained the Wise Honest. Although maritime regulations require vessels like the Wise Honest engaged in international voyages to operate an automatic identification system (“AIS”) capable of providing information about the vessel to other ships and to coastal authorities, and despite its March 2018 voyage from North Korea, the Wise Honest had not broadcast an AIS signal since August 4, 2017.
Participants in the Korea Songi Scheme additionally attempted to conceal the Wise Honest’s DPRK affiliation by falsely listing the Wise Honest’s nationality or the origin of the illicit coal on board the vessel in shipping documentation, for example, as from Tanzania or Russia.
In connection with Korea Songi Scheme, Kwon paid for numerous improvements, equipment purchases, and service expenditures for the Wise Honest in U.S. dollars through U.S. financial institutions. Such transfers constitute a provision of services by U.S. banks to both the sender and recipient of the funds, and U.S. law prohibits banks from providing such services to North Korean parties. In connection with the March 2018 shipment of coal on board the Wise Honest alone, payments totaling more than $750,000 were transmitted through accounts at a U.S. financial institution.
On May 9, 2019, the U.S. Attorney’s Office filed a civil forfeiture complaint against the Wise Honest, which had previously been seized pursuant to a warrant issued in the Southern District of New York. Today’s judgment of forfeiture was ordered by U.S. District Judge P. Kevin Castel.
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Mr. Berman praised the outstanding investigative work of the Federal Bureau of Investigation and its New York Field Office, Counterintelligence Division, and thanked the Department of Justice’s Money Laundering and Asset Recovery Section’s Program Operations Unit and Office of International Affairs, the U.S. Coast Guard, and the Department of State for their assistance.
Mr. Berman also thanked Fred and Cindy Warmbier, the parents of the late Otto Warmbier, for their willingness to voluntarily withdraw their claim in the action in order to facilitate the forfeiture of the Wise Honest.
The case is being handled by the Office’s Terrorism and International Narcotics Unit and Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorneys David W. Denton Jr. and Benet J. Kearney are in charge of the case, with assistance from Trial Attorney Christian Ford of the Counterintelligence and Export Control Section.
Manchester Man Sentenced to 70 Months for Cocaine Trafficking and Firearms ChargesRead the Press Release
CONCORD - United States Attorney Scott W. Murray announced that Mark Manapsal, 35, of Manchester, was sentenced in federal court to 70 months in prison for distribution of cocaine, possession of cocaine with intent to distribute, and being a felon in possession of a firearm.
According to court documents and statements made in court, on August 17, 2016, and November 2, 2016, Manapsal sold cocaine to an individual who was cooperating with law enforcement officers. On November 29, 2016, Manapsal, a convicted felon who is prohibited from possessing guns, sold a semi-automatic rifle to the cooperating individual for $900. On March 22, 2017, Manapsal was found in possession of 497 grams of cocaine when his vehicle was stopped by the New Hampshire State Police in Nashua.
Manapsal previously pleaded guilty on July 11, 2019.
“Armed drug traffickers present a serious threat to public safety,” said U.S. Attorney Murray. “In order to protect our community, law enforcement agencies in New Hampshire are working together to identify, prosecute, and incarcerate drug dealers. Drug dealers who increase the risk to the public by using firearms should expect to find themselves in federal prison.”
"The FBI is all too familiar with what havoc can result from a semi-automatic rifle being sold into the wrong hands. Mark Manapsal was a convicted felon and cocaine pusher when he brokered the sale of an AM-15 he told the buyer was given to him to cover a drug debt," said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. "Drugs and guns are a dangerous mix. Today's sentence should deliver that message to Mr. Manapsal loud and clear."
“DEA is committed to bring to justice those that distribute cocaine,” said DEA Special Agent in Charge Brian D. Boyle. “Today’s sentence not only holds Mr. Manapsal accountable for his crimes but serves as a warning that DEA and its local, state and federal law enforcement partners will do everything in our power to keep this drug off the streets of New Hampshire.”
The case was investigated by the FBI, DEA, New Hampshire State Police, and the Manchester Police Department. The Bureau of Alcohol, Tobacco, Firearms and Explosives also provided assistance. Assistant United States Attorney Jennifer Cole Davis prosecuted the case.
This investigation was conducted by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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Man Who Sold Guns at Reno Gun Shows Charged with Unlicensed Sale of FirearmsRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a six-count indictment last Thursday against Gary Osterhout, 65, of Sparks, Nevada, charging him with unlawful dealing in firearms and five counts of unlawful sale of a firearm to an out-of-state resident, U.S. Attorney McGregor W. Scott announced.
According to court documents, Osterhout routinely purchased guns from federally licensed firearms dealers and then turned around and sold the guns for a markup at unregulated guns shows throughout Nevada. Osterhout sold guns without filling out the required ATF paperwork and without conducting a background check. During the four-year period between March 2015, and February 2019, Osterhout purchased over 290 guns. At least 14 of those guns were later found by law enforcement as part of criminal investigations.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Justin Lee is prosecuting the case.
If convicted, Osterhout faces a maximum statutory penalty of five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
Macy Man Sentenced to 24 Months for Domestic AssaultRead the Press Release
United States Attorney Joe Kelly announced that Dwight Morris, 37, was sentenced today in federal court in Omaha for Domestic Assault by a Habitual Offender. The Honorable Laurie Smith Camp sentenced Morris to 24 months’ imprisonment. There is no parole in the federal prison system. After his release from prison, Morris will serve a three-year term of supervised release.
In August 2018 the female victim reported to law enforcement that Morris had physically abused her over a period of days, including striking her face and body and choking her. Officers observed bruising on various parts of the victim’s body consistent with her reports. Morris has two previous convictions for crimes, which, if subject to federal jurisdiction, would constitute domestic assault.
This case was investigated by Omaha Nation Law Enforcement Services and the Federal Bureau of Investigation.
Lexington Man Sentenced to 235 Months in Federal Prison for Trafficking Heroin and Crystal MethamphetamineRead the Press Release
LEXINGTON, Ky. - A Lexington man, Juan Gomez, 29, who was found guilty by a federal jury in June, of possession with the intent to distribute heroin and methamphetamine, was sentenced today to 235 months in federal prison, by Chief United States District Judge Danny Reeves.
The evidence presented at his trial established that Gomez was originally charged in December 2015, with possession with intent to distribute heroin, after he wrecked his vehicle into a telephone pole and the heroin was found in his vehicle. Then, in July 2017, while intoxicated, Gomez wrecked his vehicle into the back of an off duty University of Kentucky police officer. A search of the vehicle yielded over 15 pounds of crystal methamphetamine, several pounds of marijuana, and approximately $60,000 in drug proceeds.
Under federal law, Gomez must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for five years. Additionally, Gomez was ordered to forfeit $60,131.
“Investigating and prosecuting drug distribution cases like this one is and will continue to be a significant priority for our Office,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “The defendant intended to distribute two types of dangerous drugs – heroin and methamphetamine – that have both caused great damage to our District. The sentence imposed by the Court reflects the seriousness of the defendant’s conduct and the devastating impact of these drugs on those that use them. Working with our partners in law enforcement, we are committed to holding drug traffickers like the defendant accountable for their actions and stopping the flow of drugs into our communities.”
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Dan Dodds, Special Agent in Charge of the DEA; and Chief Lawrence Weathers of the Lexington Police Department, jointly announced the sentence.
The investigation was conducted by the Lexington Police Department and the Drug Enforcement Administration (DEA). The United States was represented by Assistant U.S. Attorneys Roger W. West and Tashena Fannin.
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Lane County School District Awarded Justice Department Grant for School Violence PreventionRead the Press Release
WASHINGTON— Today, 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.
Lane County School District was among the award recipients, receiving $370,289 under the department’s STOP Violence Prevention and Mental Health Training Program.
“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.”
“These awards are an important first step toward addressing the epidemic of school and community violence in our country. We cannot stop until every last student goes to school knowing it is a safe place to learn and grow. It saddens me to know this is not the current reality for many young people. I’m encourage by the work of the Lane County School District and other educators who are working diligently to change this narrative and reality. Congratulations and keep up the great work” said Billy J. Williams, U.S. Attorney for the District of Oregon.
President Trump signed the STOP School Violence Act into law in March 2018, authorizing grants that are designed to improve threat assessments, train students and faculty to provide tips and leads, and prepare law enforcement officers and emergency professionals to respond to school shootings and other violent incidents. The grant programs are managed by OJP’s Bureau of Justice Assistance and the Justice Department’s Office of Community Oriented Policing Services.
The Bureau of Justice Assistance, within the Department’s Office of Justice Programs, and the Office of Community Oriented Policing Services manage the programs and administer the grants, which include funds to:
- Develop school threat assessment teams and pursue technological solutions to improve reporting of suspicious activity in and around schools;
- Implement or improve school safety measures, including coordination with law enforcement, as well as the use of metal detectors, locks, lighting and other deterrent measures;
- Train law enforcement to help deter student violence against others and themselves;
- Improve notification to first responders through implementation of technology that expedites emergency notifications;
- Develop and operate anonymous reporting systems to encourage safe reporting of potential school threats;
- Train school officials to intervene when mentally ill individuals threaten school safety; and
- Provide training and technical assistance to schools and other awardees in helping implement these programs.
For more details about these individual award programs, as well as listings of individual 2019 awardees, visit https://go.usa.gov/xVJuV.
About the Office of Justice Programs:
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal justice system. More information about OJP and its components can be found at www.ojp.gov.
About the Office of Community Oriented Policing Services:
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1994, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of approximately 130,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit www.cops.usdoj.gov.
Kansas Schools Receive Federal Grants for Student SafetyRead the Press Release
KANSAS CITY, KAN. – Three Kansas school systems have received federal grants to help make students safer, U.S. Attorney Stephen McAllister said.
The money for Kansas is part of more than $85 million the Department of Justice has awarded nationally to bolster school security – including funding to educate and train faculty – and support first responders who arrive on the scene of a school shooting or other violent incident.
“Schools should be safe places to learn and grow,” McAllister said. “We’re listening to students, parents, teachers and law enforcement officers throughout Kansas who told us they need help.”
The Kansas grants include:
- $249,998 to Smoky Hill/Central Kansas Education Service Center in a category that includes funding for developing and operating anonymous reporting systems to encourage safe reporting of potential school threats.
- $452,913 to USD 417 Morris County Public Schools from the Office of Community Oriented Policing Services’ (COPS’) School Violence Prevention Program
- $332,438 to Wichita Public Schools USD 259 from the COPS’ School Violence Prevention Program
The COPS School Violence Prevention Program provides funding to improve school safety through violence prevention including training law enforcement officers in how to prevent student violence, installing metal detectors, locks, lighting and other deterrents, as well as technology to get notification to law enforcement faster during emergencies.
Justice Department Awards over $273.4 Million to Improve Public Safety, Serve Crime Victims in American Indian and Alaska Native CommunitiesRead the Press Release
WASHINGTON – The Department of Justice announced on Oct. 18 that it has awarded over $273.4 million in grants, including $2.9 million to four tribes in Montana, to improve public safety, serve victims of crime, combat violence against women and support youth programs in American Indian and Alaska Native communities.
“Violent crime and domestic abuse in American Indian and Alaska Native communities remain at unacceptably high levels, and they demand a response that is both clear and comprehensive,” said Attorney General William P. Barr. “We will continue to work closely with our tribal partners to guarantee they have the resources they need to curb violence and bring healing to the victims most profoundly affected by it.”
In Montana, the Chippewa Cree Tribe of the Rocky Boy’s Reservation, the Confederated Salish and Kootenai Tribes on of the Flathead Reservation, the Assiniboine and Sioux Tribes of the Fort Peck Reservation and the Northern Cheyenne Tribe were awarded a total of $2,902,538 in funding.
The Chippewa Cree Tribe received $250,000, the Confederated Salish and Kootenai Tribes received $488,049, the Assiniboine and Sioux Tribes received $1,714,489 and the Northern Cheyenne Tribe received $450,000.
“This funding will help address the unacceptable violence and domestic abuse suffered by many Native American women and girls in Montana. Through these grants, tribes will be able to provide more public safety and correctional alternatives for adults and children, along with services to reduce violence against women and support healing. We must continue to work closely with our tribal partners to stop the violence and abuse,” U.S. Attorney Kurt Alme said.
Nationwide, 236 grants were awarded to 149 American Indian tribes, Alaska Native villages and other tribal designees through the Coordinated Tribal Assistance Solicitation, a streamlined application for tribal-specific grant programs. Of the $118 million awarded via CTAS, just over $62.6 million comes from the Office of Justice Programs, about $33.1 million from the Office on Violence Against Women and more than $23.2 million from the Office of Community Oriented Policing Services. A portion of the funding will support tribal youth mentoring and intervention services, help native communities implement requirements of the Sex Offender Registration and Notification Act, and provide training and technical assistance to tribal communities. Another $5.5 million was funded by OJP’s Bureau of Justice Assistance to provide training and technical assistance to CTAS awardees.
The Department also announced awards and other programming totaling $167.2 million in a set-aside program to serve victims of crime. The awards are intended to help tribes develop, expand and improve services to victims by supporting programming and technical assistance. About $25.6 million of these awards were awarded under CTAS and are included in the $118 million detailed above.
CTAS funding helps tribes develop and strengthen their justice systems’ response to crime, while expanding services to meet their communities’ public safety needs. The awards cover 10 purpose areas: public safety and community policing; justice systems planning; alcohol and substance abuse; corrections and correctional alternatives; children’s justice act partnerships; services for victims of crime; violence against women; juvenile justice; violent crime reduction; and tribal youth programs.
The Department also provided $6.1 million to help tribes to comply with federal law on sex offender registration and notification, $1.7 million in separate funding to assist tribal youth and nearly $500,000 to support tribal research on missing and murdered indigenous women and children and other public safety-related topics.
The announcement is part of the Justice Department’s ongoing initiative to increase engagement, coordination and action on public safety in American Indian and Alaska Native communities.
A listing of the announced CTAS awards is available at: https://www.justice.gov/tribal/awards. A listing of all other announced tribal awards are available at: https://go.usa.gov/xVJuE.
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Illegal Alien from Mexico and Jones County Man Who Dealt Drugs near Children’s Hospital Plead Guilty to Drug ConspiracyRead the Press Release
Jackson, Miss. – Edgar Leonel Soto-Leon, 31, an illegal alien from Mexico, and Matthew Williams, 32, of Jones County, Mississippi, pled guilty Friday before U.S. District Judge Henry T. Wingate to conspiracy to distribute 2.6 pounds of methamphetamine and 2.1 pounds of heroin, announced U.S. Attorney Mike Hurst and Drug Enforcement Administration (DEA) Special Agent in Charge Brad L. Byerley.
“These unconscionable actions of dealing drugs near a children’s hospital after coming to this country illegally necessitate swift consequences, for which I applaud our DEA agents and prosecutors for bringing these criminals to justice. We will continue to be vigilant in protecting our children and citizens by holding accountable those who violate our laws and endanger our communities,” said U.S. Attorney Mike Hurst.
Sometime around May 1, 2019, Williams and Soto-Leon reached an agreement to distribute heroin and methamphetamine. To assist Soto-Leon, Williams made contact with one or more individuals in order to find a buyer for illegal drugs in the possession of Soto-Leon. Through these contacts by Williams, a buyer was identified. Williams spoke directly to the buyer and stated that Soto-Leon was in possession of approximately 3 pounds of methamphetamine known as “ICE” and one kilogram of heroin that he was trying to sell. Williams connected the buyer to Soto-Leon, who began communicating directly with the buyer. Soto-Leon and the buyer reached an agreement on the price for all of the methamphetamine and heroin.
Unknown to either Williams or Soto-Leon, the buyer was actually an undercover DEA officer who made an audio recording of his conversations with Williams and Soto-Leon.
On May 2, 2019, Soto-Leon and the buyer met at a location near the Blair E. Batson Hospital in Jackson where Soto-Leon provided the buyer with methamphetamine and heroin. Williams had assisted the buyer and Soto-Leon by giving them directions to the place where they met. Lab tests later confirmed that Soto-Leon had provided 414.7 grams of methamphetamine which was 99% pure and 424.2 grams of heroin. Soto-Leon and the buyer agreed to meet the next day, when Soto-Leon would provide even more methamphetamine and heroin.
On May 3, 2019, Soto-Leon and the buyer met at a location in Pearl, Mississippi, where Soto-Leon again gave the buyer methamphetamine and heroin. Lab tests later confirmed that Soto-Leon had provided 772.4 grams of methamphetamine which was 98% pure and two containers of heroin containing 344.6 grams heroin and 228.8 grams of heroin. Once the second batch of controlled substances were given to the buyer, law enforcement immediately arrested Soto-Leon. Williams was arrested a few days later.
In total, Soto-Leon and Williams conspired to sell and sold 2.6 pounds of methamphetamine and 2.1 pounds of heroin to the undercover DEA officer. The methamphetamine sold is a type of methamphetamine known as “ICE” due to its purity.
Soto-Leon and Williams will be sentenced by Judge Wingate on February 11, 2020. Both defendants face a minimum sentence of 10 years in prison and a maximum sentence of life in prison, followed by 5 years of supervised release, and up to a $10,000,000 fine.
The case was investigated by the DEA, the Hinds County Sheriff’s Department, the Pearl Police Department, and the Richland Police Department. The case is being prosecuted by Assistant United States Attorney Dave Fulcher.
Huntington Man Pleads Guilty to Selling HeroinRead the Press Release
HUNTINGTON, W.Va. – A Huntington man already on federal supervised release for a prior drug and firearm conviction pled guilty today to selling heroin earlier this year, announced United States Attorney Mike Stuart. Quentin J. Parker, 31, pled guilty to distribution of heroin.
“A repeat offender,” said United States Attorney Mike Stuart. “Parker was still under federal supervision for previous offenses when he was caught distributing heroin. Now he’ll be going back to federal prison.”
Parker admitted that, on February 6, 2019, he directed a confidential informant to come to a parking lot in the 200 block of 4th Avenue in Huntington to purchase heroin. Once the informant arrived, Parker entered the informant’s vehicle and sold the informant heroin. At the time of the offense, Parker was serving a term of supervised release based on convictions he received in 2011 for distributing crack cocaine and being a felon in possession of a firearm.
Parker faces up to 20 years in prison when sentenced on January 27, 2020 for the heroin distribution. Parker additionally faces up to 24 months in prison for violating the terms of his supervised release.
The Drug Enforcement Administration conducted the investigation. United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Joseph F. Adams is handling the prosecution.
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Hip Hop Producer "Mally Mall" Pleads Guilty to Unlawful Prostitution BusinessRead the Press Release
LAS VEGAS, Nev. – Hip hop producer Jamal Rashid, commonly known as “Mally Mall,” pleaded guilty today in federal court to unlawfully owning and operating a prostitution business guised as escort businesses, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
Rashid, 44, pleaded guilty to one count of use of an interstate facility in aid of unlawful activity. U.S. District Judge Richard F. Boulware II, accepted the guilty plea and scheduled a sentencing hearing for January 21, 2020.
According to information contained in the plea agreement, between April 2002 and September 2014, Rashid owned, operated, and managed several businesses in Clark County, Nev., that purported to offer legal escort services. Rashid admitted that he carried on an unlawful prostitution business through these escort businesses. He routinely used or caused others to use cell phones and other means to cause women who worked at his escort businesses to conduct acts of prostitution in Clark County. In some instances, Rashid’s credit card was used to pay for the airfare and other travel-related expenses and he used various paid websites, such as Backpage and Eros, to advertise the women for prostitution purposes. Furthermore, Rashid induced and enticed numerous women to engage in prostitution.
The case was investigated by the FBI. Assistant U.S. Attorney Nicholas Dickinson is prosecuting the case.
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