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Wednesday 11 September 2019
281 Arrested Worldwide in Coordinated International Enforcement Operation Targeting Hundreds of Individuals in Business Email Compromise SchemesRead the Press Release
WASHINGTON – Federal authorities announced September 10, 2019 a significant coordinated effort to disrupt Business Email Compromise (BEC) schemes that are designed to intercept and hijack wire transfers from businesses and individuals, including many senior citizens. Operation reWired, a coordinated law enforcement effort by the U.S. Department of Justice, U.S. Department of Homeland Security, U.S. Department of the Treasury, U.S. Postal Inspection Service, and the U.S. Department of State, was conducted over a four-month period, resulting in 281 arrests in the United States and overseas, including 167 in Nigeria, 18 in Turkey and 15 in Ghana. Arrests were also made in France, Italy, Japan, Kenya, Malaysia, and the United Kingdom (UK). The operation also resulted in the seizure of nearly $3.7 million.
BEC, also known as “cyber-enabled financial fraud,” is a sophisticated scam often targeting employees with access to company finances and businesses working with foreign suppliers and/or businesses that regularly perform wire transfer payments. The same criminal organizations that perpetrate BEC also exploit individual victims, often real estate purchasers, the elderly, and others, by convincing them to make wire transfers to bank accounts controlled by the criminals. This is often accomplished by impersonating a key employee or business partner after obtaining access to that person’s email account or sometimes done through romance and lottery scams. BEC scams may involve fraudulent requests for checks rather than wire transfers; they may target sensitive information such as personally identifiable information (PII) or employee tax records instead of, or in addition to, money; and they may not involve an actual “compromise” of an email account or computer network. Foreign citizens perpetrate many BEC scams. Those individuals are often members of transnational criminal organizations, which originated in Nigeria but have spread throughout the world.
“The Department of Justice has increased efforts in taking aggressive enforcement action against fraudsters who are targeting American citizens and their businesses in business email compromise schemes and other cyber-enabled financial crimes,” said Deputy Attorney General Jeffrey Rosen. “In this latest four-month operation, we have arrested 74 people in the United States and 207 others have been arrested overseas for alleged financial fraud. The coordinated efforts with our domestic and international law enforcement partners around the world has made these most recent actions more successful. I want to thank the FBI, more than two dozen U.S. Attorney’s Offices, U.S. Secret Service, U.S. Postal Inspection Service, Homeland Security Investigations, IRS Criminal Investigation, U.S. Department of State’s Diplomatic Security Service, our partners in Nigeria, Ghana, Turkey, France, Italy, Japan, Kenya, Malaysia, and the UK, and our state and local law enforcement partners for all of their hard work to combat these fraud schemes and protect the hard-earned assets of our citizens. Anyone who engages in deceptive practices like this should know they will not go undetected and will be held accountable.”
“The FBI is working every day to disrupt and dismantle the criminal enterprises that target our businesses and our citizens,” said FBI Director Christopher A. Wray. “Cooperation is the backbone to effective law enforcement; without it, we aren’t as strong or as agile as we need to be. Through Operation reWired, we’re sending a clear message to the criminals who orchestrate these BEC schemes: We’ll keep coming after you, no matter where you are. And to the public, we’ll keep doing whatever we can to protect you. Reporting incidents of BEC and other internet-enabled crimes to the IC3 brings us one step closer to the perpetrators.”
“The Secret Service has taken a multi-layered approach to combating Business Email Compromise schemes through our Global Investigative Operations Center (GIOC),” said U.S. Secret Service Director James M. Murray. “Domestically, the GIOC assists Secret Service Field Offices and other law enforcement partners with analysis and investigative tactics to enhance the impact of local BEC investigations. Internationally, the GIOC targets and identifies transnational organized crime networks that perpetrate these cyber-enabled financial fraud schemes. Through this approach, the Secret Service continues to strive to protect the citizens of the United States and our financial infrastructure from these complex crimes.”
“Homeland Security Investigations (HSI), together with its law enforcement partners, has proven once again, that cyber-enabled financial fraud will not be tolerated in the United States,” said Acting Director Matthew T. Albence of U.S. Immigration and Customs Enforcement (ICE). “Operation reWired sends a clear message to criminals, that no matter how or where crimes are committed, we will do everything within our means to dismantle criminal enterprises that seek to manipulate U.S. institutions and taxpayers.”
“The consequences of this type of fraud scheme are far reaching, affecting not only people in the United States, but also across the world,” said Chief Postal Inspector Gary Barksdale. “This investigation is just another example of how effective law enforcement agencies can be when they join forces. By working together, we can keep our communities and our vulnerable populations safe from financial exploitation. The U.S. Postal Inspection Service is proud to be at the forefront of the fight against fraud and Postal Inspectors will continue to adapt to the ever changing landscape to stop the scammers and protect our customers.”
“In unraveling this complex, nationwide identity theft and tax fraud scheme, we discovered that the conspirators stole more than 250,000 identities and filed more than 10,000 fraudulent tax returns, attempting to receive more than $91 million in refunds,” said Chief Don Fort of IRS Criminal Investigation. “We will continue to work with our international, federal and state partners to pursue all those responsible for perpetrating this fraud, preying on innocent victims and attempting to cheat the U.S. out of millions of dollars.”
“The investigation of these crimes crossed international borders,” said Director Todd J. Brown of the U.S. Department of State’s Diplomatic Security Service (DSS). “Today’s charges are another successful example of our commitment to working together with both foreign colleagues abroad as well as local, state and federal law enforcement partners here at home in the pursuit of those who commit cyber-related financial crimes.”
A number of cases involved international criminal organizations that defrauded small to large sized businesses, while others involved individual victims who transferred high dollar funds or sensitive records in the course of business. The devastating effects these cases have on victims and victim companies affect not only the individual business but also the global economy. According to the Internet Crime Complaint Center (IC3), nearly $1.3 billion in loss was reported in 2018 from BEC and its variant, Email Account Compromise (EAC), nearly twice as much as was reported the prior year. BEC and EAC are prevalent scams and the Justice Department along with our partners will continue to aggressively pursue and prosecute the perpetrators, including money mules, regardless of where they are located.
Money mules may be witting or unwitting accomplices who receive ill-gotten funds from the victims and then transfer the funds as directed by the fraudsters. The money is wired or sent by check to the money mule who then deposits it in his or her own bank account. Usually the mules keep a fraction for “their trouble” and then wire the money as directed by the fraudster. The fraudsters enlist and manipulate the money mules through romance scams or “work-at-home” scams, though some money mules are knowing co-conspirators who launder the ill-gotten gains for profit.
BEC scams are related to, and often conducted together with, other forms of fraud such as:
- “Romance scams,” where victims are lulled into believing they are in a legitimate relationship, and are tricked into sending or laundering money under the guise of assisting the paramour with an international business transaction, a U.S. visit, or some other cover story;
- “Employment opportunities scams,” where victims are convinced to provide their PII to apply for work-from-home jobs, and, once “hired” and “overpaid” by a bad check, to wire the overpayment to the “employer’s” bank before the check bounces;
- “Fraudulent online vehicle sales scams,” where victims are convinced they are purchasing a nonexistent vehicle and must pay for it by sending the codes of prepaid gift cards in the amount of the agreed upon sale price to the “seller;”
- “Rental scams,” where a scammer agrees to rent a property, sends a bad check in excess of the agreed upon deposit, and requests the overpayment be returned via wire before the check bounces; and
- “Lottery scams,” where victims are convinced they won an international lottery but must pay fees or taxes before receiving the payout.
Starting in May 2019, this coordinated enforcement action targeted hundreds of BEC scammers. Law enforcement agents executed over 214 domestic actions including arrests, money mule warning letters, and asset seizures and repatriations totaling nearly $3.7 million. Local and state law enforcement partners on FBI task forces across the country, with the assistance of multiple District Attorney’s Offices, also arrested alleged money mules for their role in defrauding victims.
Among those arrested on federal charges in BEC schemes include:
- Following an investigation led by the FBI’s Chicago Division, Brittney Stokes, 27, of Country Club Hills, Illinois, and Kenneth Ninalowo, 40, of Chicago, Illinois, were charged in the Northern District of Illinois with laundering over $1.5 million from proceeds of BEC scams. According to the indictment, a community college and an energy company were defrauded into sending approximately $5 million to fraudulent bank accounts controlled by the scammers. Banks were able to freeze approximately $3.6 million of the $5 million defrauded in the two schemes. Law enforcement officials seized a 2019 Range Rover Velar S from Stokes and approximately $175,909 from Stokes and Ninalowo.
- As a result of a joint investigation by the FBI, HSI, and DSS, Opeyemi Adeoso, 44, of Dallas, Texas, and Benjamin Ifebajo, 45, of Richardson, Texas, were arrested and charged in the Northern District of Texas with bank fraud, wire fraud, money laundering, and conspiracy. Adeoso and Ifebajo are alleged to have received and laundered at least $3.4 million. In furtherance of their scheme, they are alleged to have assumed 12 fictitious identities and defrauded 37 victims from across the United States.
- As part of a larger investigation by the FBI and the USSS in Miami, Yamel Guevara Tamayo, 36, of Miami, Florida, and Yumeydi Govantes, 39, of Miami, Florida, were charged in the Southern District of Florida with laundering more than $950,000 of proceeds of BEC scams. The two individuals were also responsible for recruiting approximately 18 other individuals to serve as money mules, who laundered proceeds of BEC scams for an international money laundering network. The victims of the BEC scams included title companies, corporations, and individuals. The individuals were indicted June 18, 2019 and arrested June 20, 2019. The change of plea for both individuals is scheduled for Sept. 16.
- In an investigation by FBI Atlanta, two individuals were charged in the Northern District of Georgia for their involvement in a Nigeria-based BEC scheme that began with a $3.5 million transfer of funds fraudulently misdirected from a Georgia-based health care provider to accounts across the United States. Two Nigerian nationals, Emmanuel Igomu, 35, of Atlanta, Georgia, and Jude Balogun, 29, of San Francisco, California, have been arrested on charges of aiding and abetting wire fraud for their part in receiving and transmitting monies derived from the BEC.
- Following an investigation by the FBI, Cyril Ashu, 34, of Austell, Georgia; Ifeanyi Eke, 32, of Sandy Springs, Georgia; Joshua Ikejimba, 24, of Houston, Texas; and Chinedu Ironuah, 32, of Houston, Texas, were charged in the Southern District of New York with one count of conspiracy to commit wire fraud and one count of wire fraud for their involvement in a Nigeria-based BEC scheme that impacted hundreds of victims in the United States, with losses in excess of $10 million.
An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The cases were investigated by the FBI, U.S. Secret Service, U.S. Postal Inspection Service, ICE’s Homeland Security Investigations (HSI), IRS Criminal Investigation and U.S. Department of State’s Diplomatic Security Service. U.S. Attorney’s Offices in the Districts of Arizona; Central, Eastern and Southern California; Colorado; Delaware; Southern Florida; Northern Georgia; Northern Illinois; Kansas; Eastern Louisiana; Massachusetts; Nebraska; Nevada; Southern New York; Middle North Carolina; Northern Ohio; Oregon; Northern, Western and Southern Texas; Western Tennessee; Eastern Virginia; Eastern Washington, and elsewhere have ongoing investigations some of which have resulted in arrests in Nigeria. The Justice Department’s Computer Crime and Intellectual Property Section, Money Laundering and Asset Recovery Section, and Office of International Affairs of the Criminal Division provided assistance. District Attorney’s Offices of Harris County, Texas; Fort Bend County, Texas; and Washington County, Arkansas are handling state prosecutions. Additionally, private sector partners and the Nigerian Economic and Financial Crimes Commission, Ghana Police Service (GPS) and Economic and Organized Crime Office (EOCO), Turkish National Police (TNP) Cyber Department, Direction Centrale de la Police aux Frontieres (PAF) of France, Squadra Mobile Di Caserta and Italian National Police, National Police Agency of Japan, Tokyo Metropolitan Police Department (TPMD), Royal Malaysian Police, Directorate of Criminal Investigations (DCI) of Kenya and the National Crime Agency (NCA), North Wales Police, Metropolitan Police Service and Hertfordshire Constabulary of the UK provided significant assistance.
This operation serves as a model for international cooperation against specific threats that endanger the financial well-being of each member country’s residents. Deputy Attorney General Rosen expressed gratitude for the outstanding efforts of the participating countries, including law enforcement actions that were coordinated and executed by the Economic and Financial Crimes Commission (EFCC) in Nigeria to curb business email compromise schemes that defraud businesses and individuals alike.
The Justice Department’s efforts to confront the growing threat of cyber-enabled financial fraud led to the formation of the BEC Counteraction Group (BCG), which assists U.S. Attorney’s Offices and the Department with the coordination of BEC cases and the centralization of related expertise. The BCG facilitates communication and coordination between federal prosecutors, serves as a bridge between federal prosecutors and federal agents, centralizes and manages institutional knowledge and training, and participates in efforts to educate the public about protecting themselves and their organizations from BEC scams.
The BCG draws upon the expertise of the following sections within the Department’s Criminal Division: the Computer Crime and Intellectual Property Section, which regularly investigates and prosecutes cases involving computer crimes, including network intrusions; the Fraud Section, which manages complex litigation involving sophisticated fraud schemes; the Money Laundering and Asset Recovery Section, which brings experience in seizing assets obtained through criminal activity; the Office of International Affairs, which plays a central role in securing international evidence and extradition; and the Organized Crime and Gang Section, which contributes strategic guidance in prosecuting complex transnational criminal cases.
Operation reWired was funded and coordinated by the FBI and the Justice Department’s International Organized Crime Intelligence and Operations Center (IOC-2) and follows “Operation Wire Wire,” the first coordinated enforcement action targeting hundreds of BEC scammers. That effort, announced in June 2018, resulted in the arrest of 74 individuals, the seizure of nearly $2.4 million, and the disruption and recovery of approximately $14 million in fraudulent wire transfers.
Victims are encouraged to file a complaint online with the IC3 at bec.ic3.gov. The IC3 staff reviews complaints, looking for patterns or other indicators of significant criminal activity, and refers investigative packages of complaints to the appropriate law enforcement authorities in a particular city or region. The FBI provides a variety of resources relating to BEC through the IC3, which can be reached at www.ic3.gov.
For more information on BEC scams, visit: https://www.ic3.gov/media/2019/190910.aspx.# # #
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27 Year Old Klemme, IA Man Sentenced to Federal PrisonRead the Press Release
A man who was in possession of a stolen firearm and methamphetamine was sentenced Tuesday, September 11, 2019 to more than 12 years in federal prison.
Jacob Dean Ganseveld, age 27, from Klemme, Iowa, received the prison term after a guilty plea to one count of possession with intent to distribute methamphetamine and one count of possession of a firearm in furtherance of a drug trafficking crime.
In a plea agreement, Ganseveld admitted to distributing methamphetamine. On January 6, 2019, law enforcement stopped Ganseveld for multiple traffic violations. An officer’s K9 smelled a controlled substance coming from Ganseveld’s car. After searching the car, police located eight baggies containing methamphetamine, marijuana, multiple syringes, as well as a digital scale with methamphetamine residue. Police also discovered a revolver and a box of ammunition. Ganseveld admitted to possessing the gun in furtherance of a drug trafficking crime as well as distributing methamphetamine.
Ganseveld was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Ganseveld was sentenced to 145 months’ imprisonment and must pay a special assessment of $200. Ganseveld must also serve a 4-year term of supervised release after the prison term. There is no parole in the federal system.
Ganseveld is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Jack Lammers and investigated by Hancock County Sheriff’s Office, Garner Police Department and the Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-3012.
Tuesday 10 September 2019
Ymer Shahini Pleads Guilty to Securities Fraud Conspiracy in Connection with Scheme to Defraud Investors and ShareholdersRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that YMER SHAHINI pled guilty today before United States District Judge P. Kevin Castel in connection with his role in a scheme to defraud shareholders of a publicly traded company and the investing public.
U.S. Attorney Geoffrey S. Berman said: “Ymer Shahini has now admitted to his vital role in a multimillion-dollar fraud. He knowingly served as a straw man to conceal beneficial ownership of stock, which facilitated a fraudulent scheme that reaped tens of millions in illegal profits.”
According to the allegations contained in the Indictment:
From 2009 to 2011, YMER SHAHINI, along with co-defendants Jason Galanis, John Galanis, Derek Galanis, Gary Hirst, and Gavin Hamels, engaged in a scheme to defraud the shareholders of a publicly traded company called Gerova Financial Group, Ltd. (“Gerova”), and the investing public, by obtaining secret control over millions of shares of Gerova stock and then manipulating the market for the stock as the defendants caused their secretly held shares to be sold. As part of the scheme, the defendants fraudulently generated demand for Gerova stock by bribing investment advisers to purchase for client accounts the Gerova stock that was sold by the defendants, thereby enabling the defendants to cash out from the scheme and make millions in illegal profits.
As a part of the scheme to defraud, Jason Galanis obtained such control over Gerova so as to be able to cause Gerova to enter into transactions of his design, and for his benefit, including the issuance of Gerova stock. Jason Galanis obtained this control without identifying himself as an officer or director of Gerova to avoid the SEC-imposed bar that prohibited him from holding such positions at publicly traded companies. Among other means and methods, Jason Galanis, with the assistance of Gary Hirst, caused more than five million shares of Gerova stock, which represented nearly half the company’s public float and which was intended for Jason Galanis’s ultimate benefit, to be issued to and held in the name of YMER SHAHINI, who knowingly served as a foreign nominee for Jason Galanis. SHAHINI, Jason Galanis, John Galanis, Derek Galanis, and Hirst understood that the purpose of the stock grant to SHAHINI was to disguise Jason Galanis’s ownership interest in the stock, and to evade the SEC’s regulations for issuing unregistered shares of stock.
At the same time, and as a further part of the scheme to defraud, John Galanis and Derek Galanis, among others, with the knowledge and approval of YMER SHAHINI and Jason Galanis, opened and managed brokerage accounts in the name of SHAHINI (the “SHAHINI Accounts”), effected the sale of Gerova stock from the SHAHINI Accounts, and received and concealed the proceeds, knowing that this activity was designed to conceal from the investing public Jason Galanis’s ownership of and control over the Gerova stock.
Jason Galanis also fraudulently induced investment advisers, including Gavin Hamels and others, to purchase shares of Gerova stock in the investment advisers’ client accounts by offering compensation and/or other benefits to the respective investment adviser. By causing the purchase of Gerova stock at the time, quantity, and/or price of their choosing, Jason Galanis was able to, among other things, effectuate the sale of large quantities of Gerova stock from the SHAHINI Accounts that Jason Galanis controlled while artificially maintaining the price of Gerova stock through coordinated match trading. Such coordinated trading served to manipulate the market for Gerova stock and deceive the investing public. As a result, Jason Galanis and his co-conspirators reaped nearly $20 million in profits.
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SHAHINI, 49, a citizen of Kosovo, was the first defendant extradited to the United States pursuant to the extradition treaty between the United States and the Republic of Kosovo, which went into effect on June 13, 2019. SHAHINI pled guilty to one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison. SHAHINI will be sentenced by Judge Castel on December 12, 2019, at 2:15 p.m.
The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Berman praised the work of the United States Postal Inspection Service and the Federal Bureau of Investigation, and thanked the U.S. Securities and Exchange Commission for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Brian Blais, Rebecca Mermelstein, and Elizabeth Espinosa are in charge of the prosecution.
Winnebago Man Sentenced for Sexual Abuse of a MinorRead the Press Release
United States Attorney Joe Kelly announced that Ricky T. Wolfe, 19, of Winnebago, was sentenced today in federal court of sexual abuse of a minor. Senior United States District Court Judge Laurie Smith Camp sentenced Wolfe to 18 months in prison. Wolfe will begin a five-year term of supervised release following his release from prison.
Wolfe, then 18, engaged in a sexual act with a 13-year-old on the Winnebago Reservation in December 2018. He claimed it was consensual. Minors do not have the capacity to consent and individuals who are 18 or older and more than four years older than a child under the age of 16 violate federal law.
This case was investigated by the Winnebago Police Department and the Federal Bureau of Investigation.
West Virginia Pharmacist Found Guilty of Drug Trafficking in Eastern KentuckyRead the Press Release
PIKEVILLE, Ky.— Jackson Noel, a pharmacist operating Buffalo Drug Inc., in Buffalo WV., was found guilty on Tuesday of conspiring to dispense and distribute oxycodone and oxymorphone.
Proof at trial established that as part of the conspiracy Noel unlawfully dispensed oxycodone and oxymorphone pills from the pharmacy to out-of-state customers, including customers from Kentucky. Noel dispensed the pills on a cash only basis.
According to the indictment, Noel began conspiring and distributing the drugs in June 2015 through December 2016 in Pike County, the Eastern District of Kentucky, and elsewhere.
Noel will be sentenced in December 2019 and faces up to 20 years in prison, as well as a $1 million fine and at least three years of supervision after release.
“The defendant’s unlawful dispensing of powerful opioid pills contributed to the crisis currently affecting the Appalachian region, and our District, specifically,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “The jury’s verdict ensures that the defendant will be held accountable for his actions. I commend the efforts of the various law enforcement and regulatory agencies who played a role in this investigation.”
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Dan Dodds, Acting Special Agent in Charge of the DEA; and Richard W. Sanders, Commissioner, Kentucky State Police jointly announced the jury’s verdict.
The investigation was conducted by the DEA, KSP, Kentucky Office of the Attorney General, the Putnam County, West Virginia, Sheriff’s Office, and the West Virginia Board of Pharmacy. The United States was represented by Assistant U.S. Attorney Sam Dotson.
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United States Attorney Mike Stuart Issues Statement on Fayette County's HIDTA DesignationRead the Press Release
FAYETTE COUNTY WILL NOW BE PART OF THE APPALACHIA HIDTA (AHIDTA)
CHARLESTON, W.VA. – United States Attorney Mike Stuart issued the following statement about Fayette County’s designation as a High Intensity Drug Trafficking Area (HIDTA) by the White House Office of National Drug Control Policy (ONDCP):
“West Virginia and the Southern District is once again the recipient of great news in the fight against drug peddlers. This is big news and Fayette County earned its HIDTA designation. I was happy to go to bat for Fayette County throughout the designation process, but it was Fayette County law enforcement that hit the ball out of the park. The law enforcement agencies working in Fayette County earned this designation through hard work, collaboration and leadership committed to a team approach. Operation Mountaineer Highway is a great example of collaborative, team oriented law enforcement in which agencies including the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the West Virginia State Police, the Central West Virginia Drug and Violent Crime Task Force, the West Virginia National Guard, the Fayetteville Police Department, the Fayette County Sheriff’s Department, the Oak Hill Police Department, the National Park Service, the Fayette County Prosecuting Attorney’s Office and many others, worked together, collaboratively and in close partnership, to dismantle a multi-state, poly-drug network operating from South Carolina to New Jersey. The ONDCP and the AHIDTA have provided enormous resources and support in our fight against drug dealers, drug thugs, and drug trafficking organizations that wrought devastation, despair, and death to our communities. It is an honor to work arm-in-arm with our partners in the Appalachia HIDTA. Congratulations Fayette County on your hard-earned designation.”
The ONDCP press release on new HIDTA county designations can be found here: https://trumpwhitehouse.archives.gov/briefings-statements/ondcp-designates-13-new-counties-curb-drug-trafficking/
Follow us on Twitter: SDWVNews and USAttyStuart
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Un hombre de Mississippi condenado a 11 años por quemar una cruzRead the Press Release
El Honorable Juez Keith Starrett, del Tribunal Federal de Distrito para el Distrito Sur de Mississippi, condenó al acusado Louie Bernard Revette, de 38 años de edad, a 11 años de cárcel por cargos federales que se basan en su quema de cruces del 24 de octubre del 2017 en Seminary, Mississippi. Previamente, Revette se había declarado culpable el 12 de abril del 2019 a un cargo de interferencia al derecho a la vivienda, lo que es una vulneración de derechos civiles, y un cargo de confabulación a emplear un incendio para cometer un delito federal grave. Revette, junto con un coconspirador que él había reclutado, construyó y quemó una cruz de madera cerca de la casa de la víctima, M.H., un menor de edad que vivía en una zona residencial de Seminary habitada principalmente por afroestadounidenses. Quemó la cruz para amenazar, asustar e intimidar a M.H. y a otros residentes afroestadounidenses por motivos de su raza y color de piel y por vivir en y ocupar residencias en esa zona de Seminary.
«El acusado aterrorizó a miembros comunitarios sencillamente por motivos de su raza y el lugar donde vivían», afirmó el Fiscal General Auxiliar de la División de Derechos Civiles, Eric Dreiband. «El Departamento de Justicia no tolerará estos actos de odio y seguiremos enjuiciando delitos de odio como este en la medida que lo permita la ley».
«Cualquier individuo que infunda temor y terror en nuestros vecinos y conciudadanos por motivos del color de su piel se les aplicará, desde la Fiscalía Federal, todo el peso de la ley», declaró Mike Hurst, el Fiscal Federal para el Distrito Sur de Mississippi. «No hay un lugar en nuestra sociedad o nación para este tipo de comportamiento, y haremos todo lo posible por prevenir estos actos racistas y enjuiciar a aquellos que estén decididos a cometer estos delitos».
«Todo vecino de Mississippi tiene derecho a sentirse seguro en su comunidad, pero delitos como este no hacen más que reabrir viejas cicatrices que todavía se están curando», dijo Michelle A. Sutphin, la Agente Especial Encargada del FBI en Mississippi. «El FBI, junto con nuestros socios, no tolerará delitos motivados por el odio y perseguiremos activamente a cualquiera que los cometa».
Este caso fue investigado por la Oficina Local del FBI en Jackson, Mississippi, incluyendo el Equipo de Trabajo del FBI para promover las Calles Seguras y el Equipo de Trabajo de Jackson contra la Corrupción Pública. Julia Gegenheimer, Consejera Especial de Litigios de la División de Derechos Civiles del Departamento de Justicia, y Candace Mayberry, Fiscal Federal Auxiliar para el Distrito Sur de Mississippi, enjuiciaron el caso.
Tucson Couple Sentenced to 5 Years Prison for Weapons SmugglingRead the Press Release
TUCSON, Ariz. – On September 3, 2019, Michael Justin Huynh, 29, of Tucson, Arizona, was sentenced by U.S. District Court Judge Jennifer G. Zipps to 63 months’ imprisonment. Huynh’s co-defendant, Katie Ellen O’Brien, 28, also of Tucson, was sentenced by Judge Zipps to 60 months’ imprisonment on January 16, 2019. Both had previously pleaded guilty to smuggling AK-type and .50 caliber semiautomatic assault rifles from the United States into Mexico.
Between June of 2017 and January of 2018, Huynh and O’Brien together purchased a total of at least 16 AK-type semiautomatic rifles and three .50 caliber semiautomatic rifles. They purchased these firearms for another individual whom they knew was a drug trafficker, and provided the firearms to the trafficker with the knowledge that they would be smuggled into Mexico and provided to a criminal organization.
The investigation in this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with assistance from the United States Postal Service Office of Inspector General. The prosecution was handled by Angela W. Woolridge, Assistant U.S. Attorney, District of Arizona, Tucson.
Stamford Man Sentenced to Prison for Cocaine Distribution OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that NORMAN PETERS, also known as “Ski,” 38, of Stamford, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 18 months of imprisonment, followed by three years of supervised release, for cocaine distribution offenses.
According to court documents and the evidence presented during his trial, between approximately September 2015 and May 2016, Bobby Gutierrez, also known as “B.O.,” and others, including his brother Wilfredo Gutierrez, conspired to distribute at least 10 kilograms of heroin in Fairfield County. Bobby Gutierrez and others also acquired kilogram quantities of cocaine from sources located in Florida and New York and sold the drug locally.
On April 1, 2016, Peters was intercepted over a court-authorized wiretap arranging to purchase 14 grams of cocaine from Gutierrez. Peters was then observed meeting with Gutierrez at B & B Deli in Bridgeport, which was owned by the Gutierrez family and served as a hub for drug dealing. Investigators stopped Peters after he drove from Bridgeport to Stamford. A search of his person revealed approximately 14 grams of cocaine.
On February 21, 2019, Peters was convicted after trial of one count of possession with intent to distribute cocaine, and one count of use of a telephone to facilitate a drug trafficking felony.
On November 21, 2016, Bobby Gutierrez pleaded guilty to one count of conspiracy to possess with intent to distribute 500 grams or more of cocaine and one count of conspiracy to possess with intent to distribute 100 grams or more of heroin. On April 24, 2017, he was sentenced to 160 months of imprisonment and was ordered to forfeit $171,462 in cash that was seized during the investigation.
On March 16. 2017, Wilfredo Gutierrez was sentenced to 180 months of imprisonment.
This investigation was conducted by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force, Stamford Police Department, Norwalk Police Department and Connecticut State Police. The case was prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and Elena L. Coronado.
Stamford Man Arraigned on Firearm ChargeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that KEVIN GENIS, 26, of Stamford, has been charged by indictment with one count of possession of a firearm by a previously convicted felon.
The indictment was returned by a grand jury in New Haven on August 20, 2019. Genis appeared today before U.S. Magistrate Judge Robert M. Spector in New Haven and entered a plea of not guilty to the charge. Genis has been detained since his arrest on June 27, 2019.
As alleged in court documents, on May 28, 2019, an individual working with law enforcement purchased a Century Arms International 7.62 caliber AK pistol and 10 rounds of ammunition from Genis for $900.
It is further alleged that, in November 2015, Genis was convicted in state court of three counts of possession with intent to sell narcotics.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
If convicted of the offense, Genis faces a maximum term of imprisonment of 10 years.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Stamford Police Department. The case is being prosecuted by Assistant U.S. Attorney Maria del Pilar Gonzalez.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
St. Croix Man Sentenced to 41 Months for Possession of a Firearm while Under Indictment for Robbery, Assault, and Other Firearms ChargesRead the Press Release
St. Croix, USVI – United States Attorney Gretchen C.F. Shappert announced today that Ameade Williams, 24, of St. Croix, was sentenced to 41 months of incarceration for possession of a firearm while under indictment by District Court Judge Wilma A. Lewis on September 9, 2019. Judge Lewis also ordered Williams to pay a fine in the amount of $1,000.00, to supervised release for three years, and to pay a special assessment of $100.00.
On September 11, 2018, Virgin Islands police and other law enforcement officers executed a search warrant at the Williams’ residence located at No. 4E Two Williams, Frederiksted, St. Croix, Virgin Islands. During the search, police uncovered a .223 Kel Tec pistol with two attached loaded magazines each containing 30 live rounds on a living room couch. They also uncovered a 9mm firearm loaded with 13 rounds. Firearm analysis revealed that both firearms were operable. Williams admitted that the firearms belonged to him. At the time of the search he was facing robbery, assault and firearm charges in the Superior Court of the Virgin Islands in an unrelated matter.
The case was investigated by the Virgin Islands Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorney Alphonso Andrews, Jr.
St. Croix Man Sentenced to 41 Months for Possession of a Firearm While Under Indictment for Robbery, Assault, and Other Firearms ChargesRead the Press Release
St. Croix, USVI – United States Attorney Gretchen C.F. Shappert announced today that Ameade Williams, 24, of St. Croix, was sentenced to 41 months of incarceration for possession of a firearm while under indictment by District Court Judge Wilma A. Lewis on September 9, 2019. Judge Lewis also ordered Williams to pay a fine in the amount of $1,000.00, to supervised release for three years, and to pay a special assessment of $100.00.
On September 11, 2018, Virgin Islands police and other law enforcement officers executed a search warrant at the Williams’ residence located at No. 4E Two Williams, Frederiksted, St. Croix, Virgin Islands. During the search, police uncovered a .223 Kel Tec pistol with two attached loaded magazines each containing 30 live rounds on a living room couch. They also uncovered a 9mm firearm loaded with 13 rounds. Firearm analysis revealed that both firearms were operable. Williams admitted that the firearms belonged to him. At the time of the search he was facing robbery, assault and firearm charges in the Superior Court of the Virgin Islands in an unrelated matter.
The case was investigated by the Virgin Islands Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorney Alphonso Andrews, Jr.
Seven Nigerian Nationals Indicted in International Phishing, Romance Scam, and Other Cyber Financial Fraud SchemesRead the Press Release
BOSTON – Seven Nigerian nationals were charged in indictments unsealed today in connection with their roles in expansive online fraud schemes targeting individuals and businesses in the United States, including phishing schemes, romance scams, business email compromise schemes, work-at-home scams, identity theft schemes, theft of personally identifiable information (PII) and credit card theft.
Chukwuemeka Francis Meke, a/k/a “Meke Angelo,” a/k/a “Lvrkdnona,” was charged on July 23, 2019, with conspiracy to commit computer fraud and abuse, wire fraud conspiracy, and aggravated identity theft. Jude Akhigbe, Happy Chukwuma, and Uche Solomon were charged on Aug. 20, 2019, with two counts of wire fraud conspiracy. Micahel Eromosele Iyoriobhe and Ajibola Ayomide Olanrewaju were charged on Sept. 3, 2019, with wire fraud conspiracy, unlawful possession of means of identification, and aggravated identity theft. Talib Gbolahan a/k/a “Talib Gbolahan Nkosi,” a/k/a “Loco Smith,” was charged with wire fraud and aggravated identity theft. All four indictments were unsealed today in Boston.
According to the indictments, the defendants each participated in a variety of international online fraud schemes. The defendants and their co-conspirators each deployed “phishing kits” that mimicked the appearance of legitimate websites to gather online credentials. In some cases, those credentials themselves were used to obtain money and property from U.S. victims. For instance, Gbolahan, using a “phishing kit” that mimicked the appearance of the dating websites “SeniorPeopleMeet” and “OurTime,” directly obtained account credentials, personally identifiable information, and payment card data from individuals who thought they were visiting those websites. Gbolahan then used that credit card information to make fraudulent purchases.
In other cases, certain defendants created fictitious online personas to develop online romantic relationships with individuals in the U.S., and then leveraged those relationships to obtain money and property. For instance, Iyoriobhe, using the personas “Alisha Keary” and “Alisha White,” and Olanrewaju, using the persona “Rita Mercer,” established online relationships with men in the United States pretending to be an American woman living overseas. Iyoriobhe and Olanrewaju conspired together to obtain money from these men through various ruses, such as pretending to travel to the United States to see the victim, but needing assistance paying taxes on an inheritance.
Individuals across the country, including in the Massachusetts towns of South Easton, Lynn, Gloucester, Lawrence, Somerville, North Dartmouth, and others, were victimized by the defendants’ online fraud schemes.
The fraud schemes targeted businesses as well as individuals. For instance, Meke and his co-conspirators were charged with using the emails and passwords of three employees from a retail company based in Massachusetts that employs more than 25,000 people and has locations in more than a dozen states, to send an email to another employee, seeking to transfer $300,000 from the company to pay a vendor. This type of scheme is known as a business email compromise (BEC) scheme.
The indictments in the District of Massachusetts are part of an ongoing national effort by the Department of Justice to address online fraud schemes that target United States citizens from abroad, often based out of Nigeria. Today, the Department of Justice announced significant actions, including 281 arrests in Operation reWired, a nationwide coordinated effort to disrupt BEC and other cyber-enabled financial frauds. Several actions were taken this summer in the District of Massachusetts as part of Operation reWired, including the arrests of Chukwuemeka Eze, who was charged by complaint with bank fraud and money laundering on June 11, 2019, and Seyon Balogun a/k/a “Oshine,” who was indicted in a money laundering conspiracy on July 9, 2019.
The wire fraud and wire fraud conspiracy charges provide for a sentence of up to 20 years in prison, and the conspiracy and possession of a means of identification charges provide for a sentence of up to five years in prison. The aggravated identity theft charges provide for a mandatory sentence of two-years in prison that must run consecutively to any other sentence imposed. Each charge also provides for up to three years of supervised release, a fine of $250,000 or twice the gross gain/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 Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Assistant U.S. Attorneys Amy Harman Burkart, David J. D’Addio, Seth B. Kosto, and Mackenzie A. Queenin of Lelling’s Cybercrime Unit are prosecuting the cases unsealed today.
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.
Second Member of Heroin-Fentanyl Conspiracy SentencedRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Arthur Jones, 41, Chicago, Illinois, was sentenced today by Chief U.S. District Judge James D. Peterson to three years in federal prison for conspiring to distribute fentanyl-laced heroin in the Madison area from May through November of 2018. Jones and his co-conspirator Corey Douglas, 28, also of Chicago, both pleaded guilty to this charge on June 5, 2019. Douglas was sentenced by Judge Peterson on August 29 to a three-year prison sentence.
Jones maintained a residence in Fitchburg that police knew from their investigation was a stash house for drugs. Douglas was arrested by Dane County Narcotics Task Force officers on November 29, 2018, after he left the residence. At that time, Douglas possessed almost 12 grams of a mixture of heroin and fentanyl pre-packaged for street-level sale. A subsequent search of the residence maintained by Jones resulted in the discovery of more than 80 grams of additional heroin and fentanyl mixture.
In sentencing both Jones and Douglas, Judge Peterson weighed the defendants’ lack of criminal history against the danger associated with distributing a mixture of heroin and fentanyl throughout the community. Despite the lack of criminal history, Judge Peterson said the offense deserved a significant sentence because of the higher risk of an overdose death associated with a mixture of heroin and fentanyl, and the defendants’ repeated exploitation of others’ addiction.
The charges against Arthur Jones and Corey Douglas were the result of an investigation conducted by the Dane County Narcotics Task Force. The prosecution of the case has been handled by Assistant U.S. Attorney Robert Anderson.
Purdy Man Sentenced to 15 Years for Drug Trafficking, Illegal FirearmRead the Press Release
SPRINGFIELD, Mo. – A Purdy, Mo., man was sentenced in federal court today for possessing methamphetamine to distribute and illegally possessing a firearm.
Guadalupe Urbina-Rodriguez, 71, was sentenced by U.S. District Judge M. Douglas Harpool to 15 years in federal prison without parole.
Urbina-Rodriguez was found guilty at trial on March 26, 2019, of possessing methamphetamine to distribute, possessing a firearm in furtherance of a drug-trafficking crime, and being a felon in possession of a firearm.
A federal postal inspector seized a package on Aug. 31, 2018, that was addressed to Urbina-Rodriguez’s address. The package, which contained 430.8 grams of pure methamphetamine, was purportedly mailed from a nonexistent address in California. The postal inspector delivered the package to Urbina-Rodriguez, who was sitting in a chair under a tree in the front yard. Urbina-Rodriguez had a loaded Marlin .22-caliber rifle sitting beside him. Law enforcements officers then executed a search warrant of the residence and seized the package.
According to court documents, Urbina-Rodriguez was involved in a large-scale conspiracy to distribute methamphetamine from California to various places across the country, including Missouri. Twelve additional packages originating in California were delivered to Urbina-Rodriguez’s residence in 2018. When the packages arrived, two women retrieved them from Urbina-Rodriguez. He received a cash payment each month in exchange for accepting packages.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Urbina-Rodriguez has four prior felony convictions related to drug trafficking or possessing a controlled substance and a prior felony conviction for maintaining a public nuisance.
This case was prosecuted by Special Assistant U.S. Attorney Jessica R. Keller and Supervisory Assistant U.S. Attorney Randall D. Eggert. It was investigated by the Ozarks Drug Enforcement Team, the Cassville, Mo., Police Department, the Barry County, Mo., Sheriff’s Office, the U.S. Postal Inspection Service, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.Pulaski County Woman Sentenced to 33 Months as part of Department of Justice’s Elder Fraud CrackdownRead the Press Release
LONDON, Ky. – Mitzi Shawn Sears, 59, of Nancy, was sentenced to 33 months in federal prison Monday by United States District Judge Robert E. Wier for taking over half a million dollars from an elderly couple, as part of a bank fraud scheme.
Sears must pay $502,780.10 in restitution and forfeit her rights to a property she purchased with the victims’ money. Upon release from prison, Sears will be on supervised release for five years.
According to her plea agreement, Sears convinced the victims to buy a certain piece of real property in Pulaski County with her as an investment. Sears then told the victims that the property was part of a lawsuit and they needed to provide more funds to pay attorneys and others in order to finish the transaction, but the transaction never existed. To keep the victims unaware of the scheme, Sears pretended to be various people in phone calls and drafted fake emails. When the victims ran out of money to give to Sears, they took out a $40,000 loan and provided their bank with the false information that Sears had given to them.
Sears used those checks to purchase a different property in Nancy that she must now forfeit. Additionally, Sears forged 16 checks belonging to the victims.
“Working with our law enforcement partners, we are committed to holding accountable those who of engage in financial exploitation of elderly victims,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “The defendant’s fraud scheme deprived the victims’ of a substantial amount of money. The sentence imposed reflects the seriousness of her offense.”
U. S. Attorney Duncan, Special Agent in Charge James Robert Brown, Federal Bureau of Investigation, and Commissioner Richard W. Sanders, Kentucky State Police jointly announced the sentence.
The investigation was conducted by the Federal Bureau of Investigation and the Kentucky State Police. Assistant U.S. Attorney Dmitriy Slavin represented the United States.
This prosecution is part of the Department of Justice’s efforts, together with federal and state partner agencies, to investigate and combat elder financial exploitation and obtain restitution for vulnerable victims. For information on the Kentucky Elder Justice Task Force, including how to report abuses, please visit: https://www.justice.gov/usao-edky/elder-justice-task-force.
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Previously Convicted Cocaine Trafficker Sentenced to Four Years in Federal Prison for Illegally Possessing FirearmsRead the Press Release
Hattiesburg, Miss. – Joe Lamont Gholar, 46, formerly of Jefferson Davis County, Mississippi, was sentenced today by Senior U.S. District Judge Keith Starrett to 48 months in federal prison, followed by 3 years of supervised release, for being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst, Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Special Agent-in-Charge Brad L. Byerley with the Drug Enforcement Administration (DEA).
On June 9, 2015, agents with the Drug Enforcement Administration Hattiesburg High Intensity Drug Trafficking Area (HIDTA) team served a search warrant at a residence where Gholar was living. Gholar was present during the search, and 35 rounds of .380 ammunition were found in his room. A .380 caliber pistol was found in a vehicle for which Gholar was the only driver, and a shotgun and rifle belonging to Gholar were also found on the premises. Gholar was previously convicted in the Western District of Texas for possession with intent to distribute cocaine.
Gholar was indicted on October 18, 2017 for being a felon in possession of a firearm. He pled guilty before Judge Starrett on February 1, 2018.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration. It was prosecuted by Assistant U.S. Attorney Stan Harris.
Portland, Indiana Man Sentenced to 15 Years in PrisonRead the Press Release
FORT WAYNE- Zackary Galloway, 28, of Portland, Indiana was sentenced by U.S. District Court Judge Holly A. Brady after pleading guilty to possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking offense, announced U.S. Attorney Thomas L. Kirsch II.
Galloway was sentenced to a total of 180 months in prison followed by 5 years of supervised release.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Portland Police Department and Jay County Prosecuting Attorney’s Office. This case was handled by Assistant United States Attorney Anthony Geller.
Pinon Man Sentenced to Prison for Violent Crimes Committed in Grand Canyon National ParkRead the Press Release
PHOENIX, Ariz. – Last month, Nathaniel Vernon Dempsey, of Pinon, Ariz., was sentenced by U.S. District Judge Dominic W. Lanza to 30 months of imprisonment to be followed by 3 years of supervised release. Dempsey had previously pleaded guilty to burglary and assault on a federal officer.
On October 10, 2018, Dempsey went to his girlfriend’s residence inside Grand Canyon National Park. While no one was home, Dempsey burglarized the residence and stole several items. After his girlfriend returned home later that night, Dempsey returned to the home, tried to force his way inside again, and threatened her with a knife. Law Enforcement Rangers with the National Park Service responded to the home. When a Ranger ordered Dempsey to get on the ground, Dempsey refused. Dempsey, holding a knife in each hand, then charged at the Ranger. The Rangers eventually took Dempsey into custody without anyone being seriously injured.
The investigation in this case was conducted by the National Park Service – Investigative Services Branch. The prosecution was handled by Assistant U.S. Attorney Alexander Samuels, District of Arizona, Phoenix.
Owners of Pasco County Marketing Firm Plead Guilty for Conspiring to Pay Healthcare KickbacksRead the Press Release
Tampa, Florida – Frank Monte (40, Valrico) and Kimberley Anderson (52, New Port Richey) today pleaded guilty to conspiracy to pay healthcare kickbacks. Each faces up to five years in federal prison and each has also agreed to forfeit $1,717,925.50 in assets.
According to the plea agreement, in May 2014, Monte and Anderson, acting on behalf of their marketing company Centurion Compounding, Inc., entered into a marketing agreement with the owners of a Pinellas County-based pharmacy called Lifecare. Centurion employed sales representatives to market compounded medications, specifically creams for pain and scars, among others, to beneficiaries of healthcare plans, especially TRICARE. These creams typically ranged in price from $900 to $21,000 for a one-month supply. Between June and November 2014, Monte, Anderson, the owners of LifeCare pharmacy (Carlos Mazariegos and Benjamin Nundy), and a Pinellas-based physician (Dr. Anthony Baldizzi), agreed that, in exchange for paying kickbacks to Baldizzi equal to 10% of the after-cost amount of each claim paid by TRICARE or other health care benefit programs, Baldizzi would write prescriptions for compounded medications filled by LifeCare for Centurion-recruited patients. Mazariegos, acting on behalf of the conspirators, made cash payments and provided other things of value to Baldizzi as kickbacks, including a new BMW M3.
During the conspiracy, Baldizzi wrote prescriptions for compounded creams and the conspirators caused the submission of claims for these creams to TRICARE, which resulted in TRICARE paying LifeCare more than $4.4 million. The profit to LifeCare for these creams was approximately $4 million. A substantial portion of these claims resulted from TRICARE patients recruited by Centurion. Pursuant to the agreement of the parties, LifeCare received 45% of the profits, Centurion expected to receive 45% of the profits, and Baldizzi was promised 10% of the profits.
Using the profits from the conspiracy, Monte and Anderson purchased real property and luxury automobiles. The following items were seized and forfeited: $8,730.50 in cash; a 2009 Bentley Continental; a 2012 Lamborghini Aventador; a 2012 Itasca motorhome, a 2011 Mercedes-Benz SLS AMG; a 2014 Maserati; a 2005 Ford GT; a 2012 Fisker Karma; real property in Land O Lakes; a 2010 Ferrari California; a 2013 McLaren 12C Spider; a 2012 Porsche Panamera; and real property in Plant City.
Separately charged co-conspirators Carlos Mazariegos and Benjamin Nundy previously pleaded guilty to conspiracy to commit health care fraud. Anthony Baldizzi previously pleaded guilty to conspiracy to commit healthcare fraud and receiving healthcare kickbacks. Mazariegos, Nundy, and Baldizzi are scheduled to be sentenced in November and December 2019.
The guilty pleas of Monte and Anderson conclude a multi-agency investigation that lasted more than five years, resulting in the successful prosecution of 10 defendants. As a result of this investigation, TRICARE claims totaling more than $58 million have been repaid or reversed, and an additional $6 million has been repaid to TRICARE by the conspirators.
This case was investigated by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services Office of Inspector General, the Defense Investigative Service, the Internal Revenue Service – Criminal Investigation, and U.S. Air Force Office of Special Investigation. It is being prosecuted by Assistant United States Attorneys Mandy Riedel, Colin McDonell, and Suzanne Nebesky.
Omaha Man Sentenced for Distributing MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that Mark Davis, 47, of Omaha, Nebraska, was sentenced Monday to 186 months in prison by Senior United States District Judge Laurie Smith Camp for possession with intent to distribute five grams or more of methamphetamine (actual). In addition to his prison term, Davis will serve four years of supervised release following his release from prison.
On January 28, 2018, officers pulled Davis over for operating a vehicle with a defective driver’s side brake light. Officers saw a digital scale in plain view on Davis’s lap. A probable cause search was conducted on Davis, and officers found approximately 5 grams of methamphetamine in Davis’s pocket.
A subsequent search of the vehicle resulted in officers locating an additional one and a half ounces of methamphetamine. A total of 47 grams of actual methamphetamine was recovered.
This case was investigated by the Omaha Police Department.
Occupational Therapist Sentenced to Federal Prison for Illegally Accessing Private Health Data and Stealing OpioidsRead the Press Release
A licensed occupational therapist who improperly accessed the private health and residence information of at least 1,900 patients, and then entered or burglarized thirteen homes across North Central Iowa in repeated attempts to steal prescription opioids from vulnerable and elderly persons, was sentenced September 9, 2019, to more than one year in federal prison.
Samantha Jo Rogers, age 33, from Mason City, Iowa, originally from Lapeer, Michigan, received the prison term after a March 11, 2019, guilty plea to one count of acquiring and attempting to acquire a controlled substance by misrepresentation, fraud, deception, and subterfuge, one count of wrongfully obtaining individually identifiable health information under false pretenses and with intent to use for personal gain, and one count of false statements relating to health care matters.
In a plea agreement and at sentencing, it was established that Rogers was an Iowa-licensed occupational therapist who worked for a North Iowa hospital and various therapy companies. From at least July 2017 through June 2018, Rogers illegally accessed the private health and residence information of no less than 1,900 patients at the hospital. Rogers also similarly accessed such information from one of the therapy companies no less than 1,572 times. Rogers then used this information to locate and travel to some of the residences and attempted to obtain the patients’ prescription pain medication on the pretense that she was a public health worker. On other occasions, Rogers used a crow bar to break down the patients’ doors and commit burglaries to obtain the narcotics. In early 2018, for example, Rogers burglarized the same Forest City home twice in attempts to steal an elderly man’s prescription pain killers.
Another one of Rogers’s victims was an elderly woman who had recently been discharged to her residence from a Waverly nursing home after receiving skilled nursing care. In January 2018, Rogers travelled to the woman’s home and falsely stated that the woman’s doctor did not want her taking her pain medications anymore. Rogers then took the medications from the woman. As a result of Rogers’s false statements, the woman’s family had to take the woman to the emergency room due to the excruciating pain she began experiencing. The woman eventually had to return to the Waverly nursing home for more skilled care as a result of Rogers’s actions. Then, after the woman was discharged a second time from the nursing home, Rogers returned to the woman’s home and knocked on her doors and windows trying to get into the home, until one of the woman’s family members arrived to help the elderly woman.
Rogers was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Judge Williams called Rogers’ crimes “egregious” and emphasized that the victims of her burglaries would never fully regain the sense of safety they had previously felt in their homes. Judge Williams also found it was “particularly egregious” when, less than a month after law enforcement officers had executed a search warrant at Rogers’ Mason City home, Rogers took a crow bar to another home as a part of her scheme.
Rogers was sentenced to 14 months’ imprisonment. She was ordered to make $524.59 in restitution to one of the victims of her burglaries and an additional $20.92 to Medicare. Rogers must also serve a three-year term of supervised release after the prison term, and she must forfeit her State of Iowa occupational therapy license to the United States. There is no parole in the federal system. After violating her pretrial release on numerous occasions, Rogers is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Tim Vavricek and investigated by the Department of Health and Human Services, Office of Inspector General, Office of Investigations, the Hancock County Sheriff’s Office, and the Mason City Police Department. The Worth County Sheriff’s Office, the Winnebago County Sheriff’s Office, the Hampton Police Department, the Clear Lake Police Department, and the Iowa State Patrol also assisted in Rogers’ prosecution.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-3051.
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Nevada Man Sentenced for Meth, Illegal FirearmsRead the Press Release
SPRINGFIELD, Mo. – A Nevada, Missouri, man was sentenced in federal court today for illegally possessing firearms and methamphetamine to distribute.
Justin Nolan, 28, was sentenced by U.S. District Judge M. Douglas Harpool to nine years in federal prison without parole.
On March 13, 2019, Nolan pleaded guilty to being a felon in possession of a firearm and to possessing methamphetamine with the intent to distribute.
Nevada police officers executed a search warrant at Nolan’s residence on April 4, 2018. Officers seized approximately 42 grams of methamphetamine, $5,898, and drug paraphernalia from an unlocked safe in Nolan’s bedroom. Officers also seized a loaded Jiminez Arms .380-caliber pistol and a stolen Iver Johnson Cadet .38-calbier revolver from a locked safe in the bedroom.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Nolan has a prior felony conviction for maintaining a public nuisance, related to maintaining a residence where illegal drugs were used, possessed, or distributed.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Nevada, Mo., Police Department and the Bureau of Alcohol, tobacco, Firearms and Explosives.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.National, State, Local and Tribal Government Officials Announce New Statewide Mississippi Human Trafficking Council to Combat This Violent CrimeRead the Press Release
Assistant Attorney General Eric Dreiband of the Justice Department’s Civil Rights Division joined U.S. Attorney Mike Hurst, Southern District of Mississippi, U.S. Attorney Chad Lamar, Northern District of Mississippi, Commissioner Marshall Fisher, Mississippi Department of Public Safety, and Philip Gunn, Speaker of the Mississippi House of Representatives, today to announce the creation and launch of a new, statewide Mississippi Human Trafficking Council.
Building on the foundation established by Governor Phil Bryant’s Human Trafficking Task Force Report from 2015, as well as task forces from around the country, the Mississippi Human Trafficking Council’s mission will be to prevent trafficking, protect victims, and prosecute criminals using a victim-centered, collaborative, and multi-disciplinary model. The Council will be led by three Co-Chairs: (1) Susan Bradley, Assistant U.S. Attorney, Northern District of Mississippi; (2) Kathlyn Van Buskirk, Assistant U.S. Attorney, Southern District of Mississippi; and (3) Ashlee Lucas, Mississippi Human Trafficking Coordinator, Mississippi Department of Public Safety.
“The Department of Justice is proud to announce the formation of the Mississippi Human Trafficking Council, which will serve as a crucial component to ongoing efforts to secure justice for victims of sex and labor trafficking crimes,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “This is the first statewide trafficking council, and it will help law enforcement more effectively prosecute criminals and protect the rights of victims. This is another strong step in the Department of Justice’s commitment to fighting violent crime and protecting the most vulnerable in our society.”
“Human trafficking is a crime against humanity, and the monsters who commit these crimes against our children and our fellow human beings will continue to face swift and certain justice in our district,” said U.S. Attorney Mike Hurst. “This Council will coordinate multiple entities and agencies, and help our citizens effectively battle this growing epidemic in our state. I want to thank our law enforcement, our prosecutors, and our governmental and non-governmental partners for stepping up to take this fight to the traffickers. At the end of the day, this is all about protecting victims, preventing trafficking and prosecuting the criminals.”
“We are so pleased to announce the launching of multiple regional human trafficking task forces throughout the state, Northern and Southern Districts,” said U.S. Attorney Lamar. “Not only are these task forces collaborative efforts by federal, state and local law enforcement, but also state service agencies and non-government service providers. The Human Trafficking Council and its committees, comprised of members from both Districts, will provide valuable direction and support.”
“The Mississippi Department of Public Safety is dedicated to building an effective Human Trafficking Division to combat those who prey upon, victimize and traffic others for sexual or labor purposes,” said Commissioner Marshall Fisher. “With the aid of the Human Trafficking Council, MDPS’s Human Trafficking Division has access to a team of state and federal resources to thwart these threats to our communities.”
“Strengthening and improving Mississippi’s human trafficking laws has been and continues to be one of my top priorities,” said Mississippi House Speaker Philip Gunn. “It’s important to me that we make the process work for these victims while we support those law enforcement personnel on the ground across our state who are on the front lines fighting human trafficking. I envision the Mississippi Human Trafficking Council being an important resource to complement our state’s five existing regional task forces by collaborating and offering assistance when and where needed,” said Mississippi House Speaker Philip Gunn.
- Steering Committee
The Council will have a Steering Committee, overseen by the Council Co-Chairs, and will be made up of the five subcommittee chairpersons along with the Council Co-Chairs. The Steering Committee will serve as the primary policy making body of the Council. The Steering Committee will discuss and propose recommendations for the Council, upon which the Co-Chairs will vote to approve or disapprove of such recommendations.
- Subcommittees
The Council will consist of five subcommittees and will focus on all forms of domestic and international human trafficking, to include commercial sex trafficking and labor trafficking, for the protection of both adult and minor victims. Each subcommittee chairperson will oversee the operation of each subcommittee, arranges logistics for meetings, keeps records of activities and issues, serves as a member of the Steering Committee and performs other duties as necessary for the efficient and productive operation of the Council.
The five subcommittees and chairpersons are:
- Outreach and Public Awareness Subcommittee
Chair: Mandy Davis, Mississippi Department of Public Safety
- Strategic Planning and Trafficking Protocol Subcommittee
Chair: Dr. Tamara Hurst, University of Southern Mississippi
- Policy and Legislation Subcommittee
Co-Chairs: Angela Cockerham, Mississippi House of Representatives; Lora Hunter, Mississippi Department of Public Safety
- Training Subcommittee
Chair: Paula Broome, Mississippi Attorney General’s Office
- Victim Service Subcommittee
Co-Chairs: Hollie Jeffery, Children’s Advocacy Center of Mississippi; Heather Wagner, Mississippi Department of Health
- Task Forces
The Council will also consist of small, regional Task Forces, made up of local, state, federal and tribal law enforcement, local prosecutors, and victim service providers, and will be led by an Assistant U.S. Attorney. These Task Forces will meet monthly and will share information, coordinate investigations, and discuss potential matters and active cases in preparation for prosecution.
The Department of Justice continues to fight human trafficking through investigating and prosecuting traffickers, dismantling transnational human trafficking networks, enhancing victim identification and protection of all victims of trafficking, and funding and providing domestic and international anti-trafficking programs. Information on the Department of Justice’s efforts to combat human trafficking can be found here. An update on human trafficking prosecution statistics can be found here.
National, State, Local and Tribal Government Officials Announce New Statewide Mississippi Human Trafficking CouncilRead the Press Release
Jackson, Miss. – Assistant Attorney General Eric Dreiband of the Justice Department’s Civil Rights Division joined U.S. Attorney Mike Hurst, Southern District of Mississippi, U.S. Attorney Chad Lamar, Northern District of Mississippi, Commissioner Marshall Fisher, Mississippi Department of Public Safety, and Philip Gunn, Speaker of the Mississippi House of Representatives, today to announce the creation and launch of a new, statewide Mississippi Human Trafficking Council.
Building on the foundation established byGovernor Phil Bryant’s Human Trafficking Task Force Report from 2015, as well as task forces from around the country, the Mississippi Human Trafficking Council’s mission will be to prevent trafficking, protect victims, and prosecute criminals using a victim-centered, collaborative, and multi-disciplinary model. The Council will be led by three Co-Chairs: (1) Susan Bradley, Assistant U.S. Attorney, Northern District of Mississippi; (2) Kathlyn Van Buskirk, Assistant U.S. Attorney, Southern District of Mississippi; and (3) Ashlee Lucas, Mississippi Human Trafficking Coordinator, Mississippi Department of Public Safety.
"The Department of Justice is proud to announce the formation of the Mississippi Human Trafficking Council, which will serve as a crucial component to ongoing efforts to secure justice for victims of sex and labor trafficking crimes," said Assistant Attorney General Eric Dreiband of the Civil Rights Division. "This is the first statewide trafficking council, and it will help law enforcement more effectively prosecute criminals and protect the rights of victims. This is another strong step in the Department of Justice’s commitment to fighting violent crime and protecting the most vulnerable in our society."
"Human trafficking is a crime against humanity, and the monsters who commit these crimes against our children and our fellow human beings will continue to face swift and certain justice in our district," said U.S. Attorney Mike Hurst. "This Council will coordinate multiple entities and agencies, and help our citizens effectively battle this growing epidemic in our state. I want to thank our law enforcement, our prosecutors, and our governmental and non-governmental partners for stepping up to take this fight to the traffickers. At the end of the day, this is all about protecting victims, preventing trafficking and prosecuting the criminals."
"We are so pleased to announce the launching of multiple regional human trafficking task forces throughout the state, Northern and Southern Districts," said U.S. Attorney Lamar. "Not only are these task forces collaborative efforts by federal, state and local law enforcement, but also state service agencies and non-government service providers. The Human Trafficking Council and its committees, comprised of members from both Districts, will provide valuable direction and support."
"The Mississippi Department of Public Safety is dedicated to building an effective Human Trafficking Division to combat those who prey upon, victimize and traffic others for sexual or labor purposes," said Commissioner Marshall Fisher. "With the aid of the Human Trafficking Council, MDPS’s Human Trafficking Division has access to a team of state and federal resources to thwart these threats to our communities."
"Strengthening and improving Mississippi’s human trafficking laws has been and continues to be one of my top priorities," said Mississippi House Speaker Philip Gunn. "It’s important to me that we make the process work for these victims while we support those law enforcement personnel on the ground across our state who are on the front lines fighting human trafficking. I envision the Mississippi Human Trafficking Council being an important resource to complement our state’s five existing regional task forces by collaborating and offering assistance when and where needed," said Mississippi House Speaker Philip Gunn.
I. Steering Committee
The Council will have a Steering Committee, overseen by the Council Co-Chairs, and will be made up of the five subcommittee chairpersons along with the Council Co-Chairs. The Steering Committee will serve as the primary policy making body of the Council. The Steering Committee will discuss and propose recommendations for the Council, upon which the Co-Chairs will vote to approve or disapprove of such recommendations.
II. Subcommittees
The Council will consist of five subcommittees and will focus on all forms of domestic and international human trafficking, to include commercial sex trafficking and labor trafficking, for the protection of both adult and minor victims. Each subcommittee chairperson will oversee the operation of each subcommittee, arranges logistics for meetings, keeps records of activities and issues, serves as a member of the Steering Committee and performs other duties as necessary for the efficient and productive operation of the Council.
The five subcommittees and chairpersons are:
1. Outreach and Public Awareness Subcommittee
Chair: Mandy Davis, Mississippi Department of Public Safety
2. Strategic Planning and Trafficking Protocol Subcommittee
Chair: Dr. Tamara Hurst, University of Southern Mississippi
3. Policy and Legislation Subcommittee
Co-Chairs: Angela Cockerham, Mississippi House of Representatives
Lora Hunter, Mississippi Department of Public Safety
4. Training Subcommittee
Chair: Paula Broome, Mississippi Attorney General’s Office
5. Victim Service Subcommittee
Co-Chairs: Hollie Jeffery, Children’s Advocacy Center of Mississippi
Heather Wagner, Mississippi Department of Health
III. Task Forces
The Council will also consist of small, regional Task Forces, made up of local, state, federal and tribal law enforcement, local prosecutors, and victim service providers, and will be led by an Assistant U.S. Attorney. These Task Forces will meet monthly and will share information, coordinate investigations, and discuss potential matters and active cases in preparation for prosecution.
The Department of Justice continues to fight human trafficking through investigating and prosecuting traffickers, dismantling transnational human trafficking networks, enhancing victim identification and protection of all victims of trafficking, and funding and providing domestic and international anti-trafficking programs. Information on the Department of Justice’s efforts to combat human trafficking can be found here. An update on human trafficking prosecution statistics can be found here.
Mother and Uncle Sentenced to Federal Prison for Drug Conspiracy Tied to 17 Year Old's DeathRead the Press Release
Charleston, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Lisa Cohen, age 55, and her brother Natale Colitte, age 51, both of North Charleston, were sentenced in federal court for conspiring to possess with intent to distribute and to distribute heroin, fentanyl, and methamphetamine. United States District Judge Richard M. Gergel, of Charleston, sentenced Cohen to 12 years in federal prison, to be followed by 3 years of supervised release, and sentenced Colitte to 8 years in federal prison, to be followed by 3 years of supervised release.
Evidence presented in the case established that Colitte began living with Cohen and her 17-year-old son Sebastian Cohen in late June 2017. Despite knowledge of her son’s substance abuse issues, Cohen routinely purchased heroin and sent Colitte to purchase heroin. Cohen and Colitte would then share the heroin while also allowing Sebastian to use the drugs. In September 2017, Cohen brought Sebastian home after a short stay at a treatment facility. She and Colitte initially began providing Sebastian with methamphetamine in an attempt to dissuade him from using heroin before ultimately sharing heroin with him again.
Despite their source of supply, Brian Lee (who is awaiting sentencing in a separate federal case), telling them that the heroin he was selling them was stronger than what he had previously been giving them, Cohen and Colitte still made no efforts to keep the drugs from Sebastian. On September 25, 2017, Cohen traded jewelry to her source of supply for what she believed was heroin and methamphetamine. The following day, Colitte became unconscious after injecting some of the drugs and was moved from the bathroom to the couch by Cohen and Sebastian. Later that night, Cohen found Sebastian unconscious on the kitchen floor. Sebastian was pronounced dead at the scene by paramedics and later testing showed that Sebastian died from an overdose of fentanyl, while also having methamphetamine in his system at the time of his death. Cohen and Colitte proceeded to finish using the remaining drugs the following day.
“The U.S. Attorney’s Office and our law enforcement partners are committed to stemming the tide of the opioid epidemic through strategic community partnerships as well as the aggressive prosecution of individuals who distribute these deadly drugs without regard for the lives of others,” said U.S. Attorney Lydon. “That a mother, aided by her brother, would willingly provide such dangerous drugs to her 17-year-old son, ultimately causing his death, is beyond comprehension. The tragic facts of this case demonstrate the dire impact this crisis is having on families across the country. We will continue to fight to provide some measure of justice to families like Sebastian’s, who have lost loved ones much too soon.”
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division stated, “An unprecedented, tragic loss of life in this investigation defines the severity of the prescription opioid crisis this country is experiencing. In this case, the defendants distributed opioids to Sebastian Cohen. Tragically, the drugs led to his death. DEA, its law enforcement partners and the U.S. Attorney’s Office are committed to bringing to justice those responsible for fueling this deadly crisis.”
The case was investigated by agents of the Drug Enforcement Administration and the North Charleston Police Department. Assistant United States Attorney Nick Bianchi of the Charleston Office is prosecuting the case.
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Mississippi Man Sentenced to 11 Years in Prison for CrossburningRead the Press Release
WASHINGTON – The Honorable Judge Keith Starrett, of the United States District Court for the Southern District of Mississippi, sentenced defendant Louie Bernard Revette, 38, to serve 11 years on federal charges for his commission of a crossburning on Oct. 24, 2017, in Seminary, Mississippi. Revette previously pled guilty on April 12, to one count of interference with housing rights, a federal civil rights violation, and one count of using fire to commit a federal felony. Revette, along with a co-conspirator whom he recruited, built and burned a wooden cross near the home of a juvenile victim, M.H., who lived in a predominantly African-American residential area of Seminary. He burned the cross to threaten, frighten, and intimidate M.H. and other African-American residents because of their race and color, and because they lived in and occupied residences in that area of Seminary.
“The defendant terrorized members of a community simply because of their race and where they lived,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Department of Justice will not tolerate these acts of hate, and we will continue to prosecute hate crimes like these to the fullest extent of the law.”
“Those who instill fear and terror into our neighbors and our fellow citizens because of the color of their skin will face the full weight and force of the law from the U.S. Attorney’s Office,” said U.S. Attorney Mike Hurst of the Southern District of Mississippi. “There is absolutely no place in our society or our country for this type of behavior, and we will do all that we can to prevent these racist acts and bring to justice those who are intent on committing these crimes.”
“All Mississippians have the right to feel safe in their communities, but crimes like these only tear open wounds that are still healing,” said Michelle A. Sutphin, Special Agent in Charge of the FBI in Mississippi. “The FBI and our partners will not tolerate crimes motivated by hate, and we will vigorously pursue those that commit them.”
This case was investigated by the FBI’s Jackson, Mississippi Field Office, including the FBI Safe Streets Task Force and the Jackson Public Corruption Task Force. Special Litigation Counsel Julia Gegenheimer of the Department of Justice Civil Rights Division and Assistant U.S. Attorney Candace Mayberry of the Southern District of Mississippi prosecuted the case.
Mississippi Man Sentenced to 11 Years for CrossburningRead the Press Release
The Honorable Judge Keith Starrett, of the United States District Court for the Southern District of Mississippi, sentenced defendant Louie Bernard Revette, 38, to serve 11 years on federal charges for his commission of a crossburning on Oct. 24, 2017, in Seminary, Mississippi. Revette previously pled guilty on April 12, to one count of interference with housing rights, a federal civil rights violation, and one count of using fire to commit a federal felony. Revette, along with a co-conspirator whom he recruited, built and burned a wooden cross near the home of a juvenile victim, M.H., who lived in a predominantly African-American residential area of Seminary. He burned the cross to threaten, frighten, and intimidate M.H. and other African-American residents because of their race and color, and because they lived in and occupied residences in that area of Seminary.
“The defendant terrorized members of a community simply because of their race and where they lived,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Department of Justice will not tolerate these acts of hate, and we will continue to prosecute hate crimes like these to the fullest extent of the law.”
“Those who instill fear and terror into our neighbors and our fellow citizens because of the color of their skin will face the full weight and force of the law from the U.S. Attorney’s Office,” said U.S. Attorney Mike Hurst of the Southern District of Mississippi. “There is absolutely no place in our society or our country for this type of behavior, and we will do all that we can to prevent these racist acts and bring to justice those who are intent on committing these crimes.”
“All Mississippians have the right to feel safe in their communities, but crimes like these only tear open wounds that are still healing,” said Michelle A. Sutphin, Special Agent in Charge of the FBI in Mississippi. “The FBI and our partners will not tolerate crimes motivated by hate, and we will vigorously pursue those that commit them.”
This case was investigated by the FBI’s Jackson, Mississippi Field Office, including the FBI Safe Streets Task Force and the Jackson Public Corruption Task Force. Special Litigation Counsel Julia Gegenheimer of the Department of Justice Civil Rights Division and Assistant U.S. Attorney Candace Mayberry of the Southern District of Mississippi prosecuted the case.
Michigan man sentenced to more than 16 years for drug and firearms chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Lamar Perdue, of Detroit, Michigan, was sentenced today to 195 months incarceration for drug distribution and firearms charges, United States Attorney Bill Powell announced.
“This is a significant sentence in a significant case. Methamphetamine, fentanyl, and firearms is a trifecta you do not want to be part of. When you combine these activities with a location near a school, the sentence is just and effective. We will continue to aggressively take action against those traveling to our communities to do our citizens harm. This prosecution is an example of excellent work by law enforcement and our prosecution team. More prosecutions are coming,” said Powell.
Perdue, age 21, pled guilty to one count of “Conspiracy to Possess With the Intent to Distribute and Distribute Controlled Substances,” one count of “Aiding and Abetting Possession With the Intent to Distribute Methamphetamine within 1000 Feet of a Protected Location,” one count of “Aiding and Abetting Possession With the Intent to Distribute Heroin within 1000 Feet of a Protected Location,” one count of “Aiding and Abetting Possession With the Intent to Distribute Fentanyl within 1000 Feet of a Protected Location,” and one count of “Aiding and Abetting Possession of Firearm in Furtherance of Drug Trafficking Crime” in May 2019.
Perdue was distributing the drugs near West Fairmont Middle School in Marion County. The crimes took place from the fall of 2018 to January 2019.
During the investigation, agents seized drugs valued at approximately $200,000, including over 1.9 kilos of methamphetamine, 80 grams of fentanyl, and hundreds of prescription pills, including opiates, and marijuana. The amount of fentanyl was enough to kill 40,000 people. Agents also found a rifle, two pistols, and more than $18,000 in cash in a rental property in Fairmont, West Virginia.
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 Traci M. Cook prosecuted the case on behalf of the government. The Three Rivers Drug and Violent Crimes Task Force, Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Mexican Foreign National Convicted of Methamphetamine TraffickingRead the Press Release
HOUSTON – A federal jury sitting in Houston has convicted a 34-year-old man for conspiracy and methamphetamine smuggling, announced U.S. Attorney Ryan K. Patrick. The jury deliberated for less than three hours following a three-day trial before convicting Rogelio Rivera Benito aka Mecanico, who illegally resided in Houston, for the conspiracy to possess with intent to distribute methamphetamine.
The jury heard testimony from co-defendant Mexican national Genaro Pavon Pena that Benito operated stash houses in Houston between July 2016 and late 2017. The stash houses were used to produce methamphetamine for distribution in Houston, and Benito and Pena had discussed the movement of methamphetamine and cash proceeds. The jury also heard from law enforcement officers regarding search warrants and seizures of more than 130 kilograms of methamphetamine between November 2016 and February 2018.
Benito removed gasoline tanks from vehicles coming from Mexico to extract liquid methamphetamine which was later processed into crystalized methamphetamine for distribution. Authorities seized 27 kilograms of methamphetamine April 4, 2017, which was directly tied to a stash house belonging to Pena. Testimony demonstrated that Benito delivered at least 25 kilos of methamphetamine he produced at his residence to the Pena residence before the seizure. Pena testified that the organization moved at least 500 kilograms of methamphetamine during the course of the conspiracy.
The defense argued that authorities did not seize drugs directly from Benito and that Pena falsely testified in order to receive a lesser sentence for his previous conviction. The jury was not convinced and convicted Benito as charged.
U.S. District Judge David Hittner presided over trial and set sentencing for Dec. 6, 2019. He has been and will remain in custody pending that hearing.
Pena, 32, and Edwin Sanchez-Villa, 27, of Houston, previously pleaded guilty for their roles in the conspiracy and are set for sentencing Nov. 5 and 20, 2019, respectively. All three men face a minimum of 10 years and up to life in federal prison.
The Drug Enforcement Administration conducted the investigation. Assistant U.S. U.S. Attorneys Edward Gallagher and Abe Martinez are prosecuting the case.
Meth Lab, False Statements and Illegal Re-Entry Indictments ReturnedRead the Press Release
LAREDO, Texas – A Laredo federal grand jury has returned several unrelated indictments, four of which involved a methamphetamine conversion lab, illegal firearms purchases and two habitual illegal aliens, announced U.S. Attorney Ryan K. Patrick.
Isidro Gonzalez, 44, Ismael Espinoza-Martinez, 37, Jesus Sanchez-Rico, 42, and Heriberto Castro-Escamilla, 45, were all originally charged by criminal complaint and have remained in custody. Today, a Laredo grand jury returned seven, one, one and seven-count indictments, respectively. They are all expected for their arraignments before U.S. Magistrate Judge Diana Song Quiroga in the near future.
Gonzalez is a legal permanent resident who resided in Dallas and is charged with importing more than 43 kilograms of methamphetamine and having a conversion lab found in a family home.
The indictment alleges that on July 30, 2019, federal agents searched his family home in Dallas, at which time, they allegedly found a liquid methamphetamine conversion lab, two kilograms of crystal methamphetamine, 13.5 kilograms of liquid methamphetamine and conversion equipment. They also discovered a box of empty bottles in his daughter’s bedroom closet that tested positive for methamphetamine residue, according to the charges.
The liquid methamphetamine was allegedly transported from Mexico via bus lines and couriers through Laredo, to the Dallas residence where he converted it into crystal methamphetamine.
If convicted, he faces a minimum of 10 years and up to life in prison and a possible $10 million maximum fine.
The two separate, but similar indictments against Mexican citizens Espinoza-Martinez and Sanchez-Rico allege they illegally re-entered the country on multiple occasions. According to the charges, Espinoza-Martinez was removed from the U.S. a total of six times - March 26, 2004, Sept. 19, 2006, March 4, 2008, Feb. 25, 2012, March 24, 2015, and Aug. 3, 2018. The 2015 removal followed his conviction for driving while intoxicated, according to court records. Nevertheless, he allegedly returned to the U.S. without authorization near Hebbronville once again Aug. 25, 2019.
Authorities apprehended Sanchez-Rico near Laredo for illegally re-entering the country Aug. 24, 2019, according to his charges. He had allegedly been removed July 21, 2009, March 10, 2010, and March 18, 2019. The final removal date was subsequent to a felony conviction for aggravated stalking.
If convicted, both men face up to 20 years in prison and a maximum $250,000 possible fine.
Castro-Escamilla is a U.S. citizen who had lived in Nuevo Laredo, Mexico, for 34 years. He is charged for his role in aiding and abetting others and for making a false statement in connection with the purchase of firearms. According to the criminal complaint, he purchased five AR-15 type semi-automatic rifles over the course of three months beginning March 27, 2019. On the federal form required for the purchases, he claimed the weapons were for himself when, in fact, they were allegedly going to Mexico, according to the charges.
If convicted, Castro-Escamilla faces up to 10 years in federal prison and a possible $250,000 maximum fine.
Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) conducted the Gonzalez investigation with the assistance of the Dallas County Sheriff’s Office. Border Patrol and HSI conducted the illegal re-entry investigations, while the Bureau of Alcohol, Tobacco, Firearms and Explosives handled the Castro-Escamilla investigation with the assistance of HSI, Border Enforcement Security Task Force and Laredo Police Department.
Assistant U.S. Attorney (AUSA) Mary McAuliffe is prosecuting the methamphetamine and firearms cases, while AUSA Adam Harper is handling the illegal re-entry matters.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless and until convicted through due process of law.Member of New Haven Drug Ring Sentenced to PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that NIGEL JONES, 37, of West Haven, was sentenced yesterday by U.S. District Judge Stefan R. Underhill in Bridgeport to 18 months of imprisonment, followed by five years of supervised release, for his role in a heroin and cocaine trafficking ring. Judge Underhill also ordered Jones to serve the first six months of his term of supervised release in home confinement.
This matter stems from a joint investigation headed by the DEA New Haven Task Force, FBI and New Haven Police Department into a New Haven-based drug trafficking organization that acquired and distributed heroin and cocaine.
During the investigation, law enforcement officers seized more than 500 grams of heroin, more than 300 grams of fentanyl, more than one kilogram of cocaine, three firearms, over $90,000 in cash, vehicles, jewelry and precious metals.
According to court documents and statements made in court, Jones purchased heroin from another member of the organization and sold the drug in smaller quantities to his own customers.
On April 19, 2018, a grand jury in New Haven returned an indictment charging Jones and 18 other individuals with narcotics trafficking offenses. Jones and several other members of the conspiracy were arrested on April 25, 2018.
On September 13, 2018, while he was released on bond, Jones was arrested by New Haven Police and charged with possession of a controlled substance and possession of a controlled substance with intent to sell after he was found in possession of distribution quantities of heroin and marijuana.
Jones’ federal bond was revoked and, on January 15, 2019, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute heroin and cocaine.
Jones criminal history includes a federal conviction in April 2014 for using a telephone to facilitate the commission of a drug trafficking felony. He was sentenced to 30 months of imprisonment for that offense.
The DEA New Haven Task Force includes participants from the U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia, Meriden, Derby, Middletown, Naugatuck and Waterbury Police Departments. The Connecticut Department of Correction, Milford Police Department and East Haven Police Department have assisted the investigation.
The case is being prosecuted by Assistant U.S. Attorney H. Gordon Hall.
Massachusetts Chiropractor Sentenced to Prison for Tax EvasionRead the Press Release
The owner of a chiropractic business was sentenced to 6 months in prison for tax evasion after pleading guilty to the charge in June 2019, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
Richard Rogers, a Northborough, Massachusetts chiropractor, operated his practice from his residence. According to court documents, Rogers evaded his taxes from 2012 through 2016 by concealing his income from the Internal Revenue Service (IRS). Rogers encouraged his clients to pay in cash and used a nominee bank account to negotiate check payments when he was not paid in cash. He paid creditors using postal money orders, and used credit card accounts opened with a fictitious social security number. Rogers also concealed the ownership of his residence by titling the property in the name of a trust. Rogers did not file federal tax returns from at least 2008 through 2016, despite his obligation to do so.
United States District Judge Timothy S. Hillman also ordered Rogers to pay $155,164 in restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant Chief John N. Kane and Trial Attorney Carl F. Brooker of the Tax Division, who prosecuted the case.
Manchester Man Pleads Guilty to Fentanyl TraffickingRead the Press Release
CONCORD - David Nguyen, 37, of Manchester, pleaded guilty in federal court to distributing fentanyl, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on November 1, 2018, a cooperating individual, at the direction of law enforcement officers, arranged to buy fentanyl at Nguyen’s apartment. The cooperating individual later went to Nguyen’s apartment and purchased a quantity of fentanyl.
On December 4, 2018, law enforcement officers executed a search warrant at Nguyen’s apartment, where they located two scales with drug residue.
Nguyen is scheduled to be sentenced on December 17, 2019.
“Fentanyl trafficking endangers public health and safety in Manchester and other communities throughout the State of New Hampshire,” said U.S. Attorney Murray. “Through Operation S.O.S., we are working with the Manchester Police Department and other law enforcement agencies in Hillsborough County to identify and prosecute those who are responsible for selling this deadly drug.”
This matter was investigated by the Manchester Police Department. The case is being prosecuted by Assistant U.S. Attorney Joachim Barth.
This case is part of Operation Synthetic Opioid Surge (S.O.S.). In July of 2018, Attorney General Jeff Sessions announced the creation of S.O.S., which is being implemented in the District of New Hampshire and nine other federal districts. The goal of S.O.S. is to combat the large number of overdoses and deaths associated with fentanyl and other synthetic opioids. In New Hampshire, the U.S. Attorney’s Office is focusing its efforts on prosecuting synthetic opioid trafficking cases arising in Hillsborough County, which includes Manchester and Nashua.
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Maine’s Project Safe Neighborhoods Initiative Seeks Applications for $100,000 in Available Grant FundingRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced today that up to $100,000 in grant funding is available for allocation to support Maine’s Project Safe Neighborhoods (PSN) initiative.
PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. Maine’s PSN program is coordinated by the United States Attorney’s Office.
The Maine Department of Public Safety, acting as the fiscal agent for Maine’s PSN program, is seeking proposals from eligible applicants for grant projects designed to create and foster safer neighborhoods through a sustained reduction in violent crime. Up to approximately $100,000 is available to fund programs focused on reducing violence associated with opioid trafficking, human trafficking, domestic violence, gun trafficking and firearm possession by prohibited persons throughout Maine. The state’s PSN Task Force is comprised of a variety of federal, state and local partners and stakeholders who want to spread the word about this funding to Maine communities, such as private citizens, civic leaders, law enforcement, prosecutors, state and local government, anti-violence advocates, organizations (both for-profit and nonprofit), school administrators, educators, students of all ages and members of the juvenile justice community who might wish to submit proposals.
A copy of the RFP, as well as the Question & Answer Summary and all amendments related to this RFP, may be obtained at the following website:
https://www.maine.gov/dafs/bbm/procurementservices/vendors/rfps
Proposals must be submitted to the State of Maine Division of Procurement Services, via email, at [email protected]. Proposal submissions must be received no later than 4:00 pm, local time, on October 3, 2019, when they will be opened. Proposals will be opened at the Burton M. Cross Office Building, 4th Floor, 111 Sewall Street, Augusta, Maine. Proposals not submitted to the Division of Procurement Services at the above email address by the October 3 deadline will not be considered for contract award.
Lexington Man Sentenced to 80 Months in Prison for Fentanyl TraffickingRead the Press Release
LEXINGTON, Ky. – Eldronte Domonique Washington, of Lexington, was sentenced Monday to 80 months in federal prison, by United States Senior District Judge Joseph M. Hood, for possession with intent to distribute 40 grams or more of fentanyl.
In December 2018, Lexington Police executed a search warrant on Washington’s residence and located 67 grams of fentanyl, multiple baggies, digital scales, three handguns (one stolen, one defaced), and $4,230 in cash. In his plea agreement, Washington admitted that he intended to distribute the fentanyl and further agreed to forfeit his interest in the handguns and currency. Washington pleaded guilty in May 2019.
Under federal law, Washington must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for four years following his release.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Dan Dodds, Acting Special Agent in Charge of the DEA; and Lawrence Weathers, Chief of the Lexington Police Department, jointly announced the sentence.
The investigation was conducted by the U.S. Drug Enforcement Administration and the Lexington Police Department. The United States was represented by Assistant U.S. Attorney David Kiebler.
This case was prosecuted as part of the Organized Crime and Drug Enforcement Task Force’s (OCDETF) Operation Synthetic Opioid Surge (SOS), a Department of Justice initiative designed to target trafficking of dangerous synthetic opioids.
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Kitchen Supervisor Pleads Guilty to Actions Related to Prohibited Relationship with Federal InmateRead the Press Release
LAREDO, Texas - A 51-year-old Laredo resident has admitted she made a false statement and provided contraband in prison, announced U.S. Attorney Ryan K. Patrick.
Oralia Aparicio pleaded guilty to one count of making a false statement and one count of providing contraband to a prison inmate.
Aparicio was employed by GEO Group Inc. as a Kitchen Supervisor at the Rio Grande Detention Center in Laredo. GEO is a Florida-based company that contracts with the Office of the Federal Detention Trustee to operate private corrections facilities.
In early November 2018, Aparicio began engaging in a prohibited romantic relationship with an inmate, including consensual sexual encounters in the warehouse and cleaning utility room of the Rio Grande Detention Center. In January 2019, Aparicio engaged in prohibited favoritism by providing the inmate with contraband nude photographs of herself which Aparicio snuck into the facility in an eyeglass case. At approximately the same time, she also began knowingly providing the inmate with other contraband, including food, an unidentified over-the-counter cold medicine (Xtra), Amoxicillin and a Vicks nasal inhaler.
Aparicio also provided the inmate with weekly to biweekly commissary deposits of up to $30. In order to conceal her prohibited relationship from officials, Aparicio intentionally submitted a fictitious name when making commissary deposits in the inmate’s account from Oct. 25, 2018, to Jan. 15, 2019.
U.S. District Judge Marina Garcia Marmolejo will impose sentencing Jan. 27, 2020. At that time, Aparico faces up to five years imprisonment as well as a $250,000 maximum possible fine.
The FBI and Department of Justice - Office of the Inspector General conducted the investigation.
Assistant U.S. Attorney Sebastian Edwards prosecuted this case.
Joint Statement by U.S. Attorney General William Barr and Minister of Justice of Georgia Thea TsulukianiRead the Press Release
Credit: Department of JusticeOn September 10, 2019, United States Attorney General William Barr met with Georgian Minister of Justice Thea Tsulukiani, to reaffirm the law enforcement partnership between the United States Department of Justice and the Ministry of Justice of Georgia.
Both officials recognized that an independent judiciary, an effective criminal justice system and the protection of human rights, particularly those of the most vulnerable members of society, such as children, are fundamental to the rule of law and an accountable government and democracy.
Attorney General Barr noted the excellent level of cooperation between the United States and Georgia on extradition matters and mutual legal assistance. Minister Tsulukiani, in turn, expressed gratitude for the capacity building support provided by the United States Department of Justice, the Office of Overseas Prosecutorial Development, Assistance, and Training (OPDAT) and its Tbilisi-based Resident Legal Advisors (RLA), particularly in terms of legislative drafting advice and skills development training within the criminal justice sector.
The Attorney General and Minister of Justice committed to continue cooperation in support of Georgia’s efforts to advance judicial reforms and further modernize the country’s criminal justice system. In particular, they expressed an intent to explore opportunities for the Department of Justice to furnish expertise and assistance to the Ministry of Justice with its work to reform Georgia’s penitentiary and probation systems with enhanced rehabilitation and resocialization services.
Inmate at FCI Gilmer sentenced for attempting to obtain suboxoneRead the Press Release
CLARKSBURG, WEST VIRGINIA – Dion Donita Turner, an inmate at FCI Gilmer in Glenville, West Virginia, was sentenced today to 12 months incarceration after admitted to attempting to possession contraband, United States Attorney Bill Powell announced.
Turner, age 42, is pled guilty to one count of “Attempt to Obtain a Prohibited Object (Narcotic).” Turner admitted to attempting to obtain suboxone inside FCI Gilmer in April 2019.
Assistant U.S. Attorney Brandon S. Flower prosecuted the case on behalf of the government. The Bureau of Prisons Special Investigation Services investigated.
U.S. District Judge Thomas S. Kleeh presided.
Hattiesburg Woman Sentenced to 4 Years in Federal Prison for Methamphetamine TraffickingRead the Press Release
Hattiesburg, Miss. – Lydia Walters, 34, of Hattiesburg, was sentenced today by Senior U.S. District Judge Keith Starrett to 48 months in federal prison, followed by 5 years of supervised release, for possession with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst, Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Special Agent in Charge Brad Byerley with the Drug Enforcement Administration (DEA). Walters was also ordered to pay a $5,000 fine.
Beginning in July 2016, ATF agents received information that Adrian Parker was distributing ounce quantities of methamphetamine at an apartment complex in Hattiesburg. On October 17, 2016, a confidential informant purchased 13.19 grams of methamphetamine from Parker at an apartment in Hattiesburg.
Further investigation revealed that Parker’s girlfriend, Lydia Walters, was also involved in distributing methamphetamine. On December 22, 2016, a DEA confidential informant purchased 17.3 grams of methamphetamine from Walters in the parking lot of a business on Highway 49 in Hattiesburg.
Walters was subsequently indicted for possession with intent to distribute methamphetamine and pled guilty before Judge Starrett on June 6, 2019.
Adrian Parker was indicted for his role and pled guilty before Judge Starrett to possession with intent to distribute methamphetamine on July 1, 2019. He will be sentenced by Judge Starrett on October 2, 2019 at 10:00 a.m.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Shundral H. Cole.
Hartford Gang Member Sentenced to 6 Years in Federal Prison for Distributing Fentanyl and HeroinRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that FRANKIE VEGA, also known as “Lips,” 35, of Hartford, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 72 months of imprisonment, followed by three years of supervised release, for distributing fentanyl and heroin.
According to court documents and statements made in court, this matter stems from an investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department’s Vice and Narcotics Division targeting gang violence and narcotics trafficking in Hartford. The investigation revealed that Wilson Velez, also known as “Wiso,” a member of the Almighty Latin Kings Nation (“Latin Kings”), was distributing heroin and fentanyl. Velez employed family members and other Latin Kings members and associates to process, package and distribute the drugs from apartment buildings on Hamilton Street and Elliot Street in Hartford. During the investigation, law enforcement conducted multiple controlled purchases of narcotics from Velez and other members of the drug trafficking organization.
In May 2017, investigators conducted two controlled purchases of fentanyl from Vega at his residence on Broad Street. On May 3, 2017, a court-authorized search of Vega’s residence revealed more than 1,000 bags of fentanyl/heroin and other items used to process and package narcotics for distribution. Vega was arrested on state charges on that date.
In November 2017, while he was released on bond in his state case, Vega was intercepted on a wiretap negotiating the purchase of 500 bags of fentanyl/heroin from Velez.
On May 1, 2018, a grand jury returned a 41-count indictment charging Velez, Vega and eight other members and associates of the Latin Kings.
Vega has been detained since his arrest on May 7, 2018. On March 4, 2019, he pleaded guilty to one count of possession with intent to distribute, and distribution of, heroin and fentanyl
In 2008, Vega was arrested after he fired his gun at Hartford Police officers pursuing him in a foot chase. Vega was sentenced to 15 years in prison, suspended after nine years, for that offense. He was released from state prison in April 2016.
Velez was arrested on federal narcotics offenses on December 7, 2017, and was subsequently released on bond. He has been detained since April 5, 2018, when his bond was revoked. On February 22, 2019, he pleaded guilty to one count of conspiracy to distribute one kilogram or more of heroin and/or 400 grams or more of fentanyl, and one count of conspiracy to use and carry a firearm in relation to, and furtherance of, a drug trafficking crime. He awaits sentencing.
The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
This case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Freedom Man Charged with Possession and Distribution of Drugs Resulting in a DeathRead the Press Release
PITTSBURGH - A resident of Freedom, PA, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
The two-count Indictment named Zachary Martin Cymbalak, 32, as the sole defendant.
According to the Indictment, on or about Jan. 6, 2019, Cymbalak possessed with the intent to distribute and distributed a mixture of heroin, acetyl fentanyl and fentanyl, which resulted in a death.
The law provides for a maximum total sentence of not less than 20 years in prison and a maximum of life, a fine of not more than $1,000,000, a term of supervised release of at least 3 years, or a combination thereof. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Special Assistant United States Attorney Chad R. Parks is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, Beaver County Drug Task Force, and Harmony Township Police Department conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Fort Myers Felon Sentenced to More Than 11 Years in Prison on Federal Drug and Firearms ChargesRead the Press Release
Fort Myers, FL – U.S. District Judge Sheri Polster Chappell has sentenced Jo’Shwan Danquell Hamilton (26, Fort Myers) to 11 years and 6 months in federal prison for possessing a firearm as a convicted felon, distributing controlled substances, and carrying a firearm in relation to a drug trafficking crime. The court also ordered Hamilton to forfeit a firearm and ammunition.
Hamilton had pleaded guilty on April 25, 2019.
According to court records, on three separate occasions in January and February 2018, Hamilton sold an undercover agent controlled substances (heroin, crack cocaine, and fentanyl). On one of those occasions, Hamilton also sold the undercover agent a stolen, loaded handgun. At the time of the offenses, Hamilton was a previously convicted felon and, therefore, was prohibited from possessing firearms or ammunition under federal law. Hamilton had been released from a state prison in Florida six months before committing these new offenses.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the Fort Myers Police Department. It was prosecuted by Assistant United States Attorney Simon R. Eth.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety – one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Former credit union loan officer pleads guilty to role in fraudulent loan schemeRead the Press Release
ALEXANDRIA, La. – United States Attorney David C. Joseph announced today that Cynthia J. Feazell, 48, of Montgomery, Louisiana, pleaded guilty before U.S. District Judge Dee D. Drell to authorizing fraudulent loans that caused nearly a quarter of a million dollars of loss to her credit union employer.
According to the guilty plea, Feazell worked as a loan officer and assistant manager at Valex Federal Credit Union in Rapides Parish from 1997 to 2016. The defendant decided to purchase a mobile home in 2015 and obtained loan funds from Valex. She did not qualify for the loan, so she transferred three vehicle loans taken out in her name to her mother’s name in order for her to qualify for the loan. Additionally, Feazell authorized loans for her ex-husband, even though she knew he did not meet the Valex credit requirements. Feazell falsified documents to accomplish the scheme and was aware her actions were fraudulent. The defendant’s fraudulent acts caused Valex a loss of $243,167.95.
Feazell faces 30 years in prison, five years of supervised release, restitution and a $1 million fine. The court set the sentencing date for December 17, 2019.
The FBI conducted the investigation. Assistant U.S. Attorney Kelly P. Uebinger is prosecuting the case.
Former Union Treasurer Sentenced to 2 Years in Federal Prison for Embezzling at Least $82,000 in Union FundsRead the Press Release
Baltimore, Maryland – U.S. District Judge Deborah K. Chasanow today sentenced Annette Elizabeth Jones, age 45, of Port Deposit, Maryland, to 24 months in prison, followed by 3 years of supervised release, for bank fraud in connection with a scheme to embezzle funds from the labor union where she worked. Jones entered her guilty plea on May 7, 2019.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; District Director Mark Wheeler of the U.S. Department of Labor, Office of Labor - Management Standards; and Special Agent in Charge of the Mid-Atlantic Field Office Kim R. Lampkins for the US Department of Veterans Affairs Office of Inspector General.
According to her plea agreement, Jones is the former Treasurer of the American Federation of Government Employees (AFGE) Local Union 331, which represented approximately 760 employees of the Department of Veterans Affairs (VA) Medical Center in Perry Point, Maryland.
As detailed in her plea agreement, Jones executed two fraud schemes through which she embezzled at least $82,180.73 from the Union. First, from July 2012 through July 2015, Jones stole at least $80,944.80 in Union funds by forging her colleagues’ signatures on 335 Union checks that she wrote to herself and then cashed or deposited those checks at multiple financial institutions. Second, from January 2014 through July 2015, Jones used a Union-issued credit card to pay for $1,235.93 in personal expenses using Union funds on 20 separate occasions.
Jones admitted that she took steps to conceal the scheme from the Union. For example, not only did Jones have exclusive control of the Union’s checkbook, but she also maintained sole custody of a laptop computer that she was issued by the Union to manage its financial records on Union-purchased accounting software. In that software, Jones frequently recorded false information regarding the business purpose of the fraudulent Union checks she forged and negotiated, or recorded no information at all about the business purpose of such checks. Jones also provided false information about the Union’s finances to the Executive Board and the Union membership, caused reports to be submitted to the federal government that falsely certified the amount of money she received from the Union, and lied to the Union’s independent auditor.
Jones’ fraud was discovered in July 2015, when the Union’s Vice President overheard a phone call in which Jones attempted to purchase a smartphone for a family member using the credit card she had been issued to pay for Union expenses only. The Vice President then reported the conversation to the Union’s President. The President later conducted a search of Jones’s office and found two uncashed Union checks made payable to Jones on which it appeared that the President’s signature had been forged. The Union President then met with the manager of the bank where the Union’s account was held, and reviewed each of the checks to Jones that had been drawn on the Union’s account during the preceding three months. The Union President’s signature had been forged on all of them. When the manager provided the President with copies of the Union’s monthly credit-card account statements, the President also discovered that Jones had made a number of personal charges on her Union-issued card.
Jones was immediately removed from her position as Union Treasurer and resigned from the VA soon thereafter. Although Jones had agreed to return her Union-issued laptop at the time she was removed as Treasurer, Jones admitted that she never returned it.
As part of her sentence, Jones is required to pay restitution in the full amount of the loss, which the parties agreed is $82,180.73.
United States Attorney Robert K. Hur commended the DOL and VA-OIG for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Jeffrey J. Izant and Matthew J. Maddox, who prosecuted the federal case.
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Former State DOT Employee Sentenced for Federal Program TheftRead the Press Release
ALBANY, NEW YORK – Jerome Lauzon, age 45, of Gansevoort, New York, was sentenced today to 1 year of probation for misappropriating more than $17,000 from a federally funded program.
The announcement was made by United States Attorney Grant C. Jaquith; Douglas Shoemaker, Special Agent in Charge of the Northeast Regional Office of the United States Department of Transportation, Office of Inspector General (USDOT-OIG); New York State Inspector General Letizia Tagliafierro; and Robert L. Keihm, Chief Investigator for the New York State Department of Transportation (NYSDOT) Investigations Bureau.
Lauzon, formerly an employee of the NYSDOT, was the Engineer in Charge of a $10.5 million road reconstruction project in Washington County, New York, from 2012 to 2017. The Federal Highway Administration, a USDOT agency, provided 80 percent of the funding for the contract.
In pleading guilty, Lauzon admitted that employees of the project contractor purchased more than $17,000 in goods and services for Lauzon’s personal use, and Lauzon unlawfully reimbursed the contractor for these purchases using project funds. These goods and services included more than $2,500 worth of repairs to Lauzon’s personal car, a home entertainment surround sound system, a laptop computer, a computer monitor, a printer, lumber for a treehouse, a paint sprayer, a lawnmower, a snowblower, and a power washer. Lauzon previously paid restitution to New York State as part of a related case brought in Albany City Court.
This case was investigated by USDOT-OIG, NYSDOT’s Investigations Bureau, and the Office of the New York State Inspector General, and was prosecuted by Assistant U.S. Attorney Michael Barnett.
Former Executive at Adamo Group Sentenced for Conspiracy to Commit Honest Services Fraud in Connection with the Detroit Demolition ProgramRead the Press Release
Anthony Daguanno, 62, was sentenced today to 12 months in prison after having pleaded guilty to charges of conspiracy to commit honest services fraud in connection with the Detroit Demolition Program.
The Honorable Victoria Roberts sentenced Anthony Daguanno to serve 12 months in federal prison following his conviction for conspiracy to commit honest services fraud by taking bribes and kickbacks from a subcontractor while Daguanno was employed as an executive at Adamo Group. Following his release from prison, Daguanno will serve a two year term of supervised release and will complete 72 hours of community service. The court also ordered Daguanno to pay a $10,000 fine and to forfeit $372,750 for the bribes that he took while at Adamo.
The United States Treasury Department created the Blight Elimination Program, which focused on helping communities demolish vacant houses. The program was paid for through the Hardest Hit Fund (HHF), a housing support program intended to protect home values, preserve home ownership and promote economic growth. The City of Detroit was one of the recipients of this HHF money. Approximately $258,656,459 in Hardest Hits Funds have been allocated to the City of Detroit since Oct. 7, 2013.
As stated during Daguanno’s guilty plea, from January 2013 through January 2019, Daguanno was employed as a "Senior Estimator" at Adamo. Daguanno’s responsibilities at Adamo included soliciting bids from subcontractors, assembling bid packages in response to RFPs issued by the City of Detroit and communicating with subcontractors. In assembling the bid packages submitted to the City of Detroit, Daguanno communicated regularly with various subcontractors and kept track of the bids they submitted. "Contractor A" was one of the subcontractors with whom Daguanno communicated. On numerous occasions, Contractor A paid Daguanno money for disclosing confidential information about bids from Contractor A’s competitors. In return for these payments, Daguanno disclosed confidential information about the lowest competitor bid which allowed Contractor A to submit an even lower bid, ensuring that Contractor A was awarded lucrative contracts. In total, Daguanno accepted over $372,000 in bribes and kickbacks on 71 occasions over eight years.
The sentence imposed today demonstrates the Antitrust Division’s commitment to prosecuting conduct that subverts the competitive process and to protecting taxpayer funds.
"The Antitrust Division will aggressively pursue collusion that corrupts the government procurement process," said Assistant Attorney General Makan Delrahim of the Justice Department's Antitrust Division. "The confidential bid information that Daguanno disclosed in exchange for bribes harmed the competitive process on contracts worth millions of dollars. Bid information is confidential for a reason—disclosing it allows a bidder to unlawfully tilt the bidding process in his favor."
"The City of Detroit and its demolition program were entrusted with millions of taxpayer dollars to tear down abandoned houses in Detroit’s neighborhoods. The corruption of the government contracting process by Anthony Daguanno damaged the integrity of the demolition program and broke the public trust. This prosecution serves as a warning to other private sector companies and individuals that soliciting or accepting bribes will be punished and as a promise to the taxpaying public that such violations of the public trust will not be tolerated," said First Assistant U.S. Attorney Saima Mohsin of the Eastern District of Michigan.
"Investigating bribery that harms full and open competition in TARP-funded demolitions is one of SIGTARP’s highest priorities," said Special Inspector General Christy Goldsmith Romero of the Troubled Asset Relief Program (SIGTARP). "Harming competition through bribery is exactly what Anthony Daguanno did in the Blight Elimination Program from its creation in 2013 until charges were brought against him this year. I warn contractors that bribery in this program will be caught and there will be serious consequences."
"Mr. Daguanno was sentenced in federal court today for corrupting the bidding process while seeking contracts through a federally-funded program," said Special Agent in Charge Rainer Drolshagen of the FBI's Detroit Field Office. "The FBI’s Detroit Area Public Corruption Task Force will continue to investigate and fight corruption by those who give illegal, preferential treatment at the expense of honest American business. I would encourage anyone with information about potential public corruption in Michigan to contact FBI Detroit's Public Corruption tipline at 313-965-2222 or our main number at 313-965-2323."
Assistant Attorney General Delrahim and First Assistant U.S. Attorney Mohsin commended the outstanding work of SIGTARP and the FBI in conducting a comprehensive criminal investigation into the demolition program.
The case was prosecuted by Assistant U.S. Attorneys Sarah Resnick Cohen, Karen Reynolds, Adriana Dydell and DOJ Antitrust Trial Attorney Matthew Stegman.
Former Director of a Law Enforcement Association Sentenced for Stealing FundsRead the Press Release
St. Louis, MO – Paul Kesterson, 48, of Washington, MO, who was employed as a Lieutenant with the Washington, Missouri Police Department, was sentenced to two months and ordered to pay restitution in the amount of $25,556 for stealing funds. Kesterson appeared today before U.S. District Judge Webber.
According to court documents, between February 1, 2018 and April 2019, Kesterson served as the Director of the St. Louis Area Law Enforcement Exploring Association (STLEEA) and as a Lieutenant with the Washington, Missouri Police Department. As the Director of STLEEA, Kesterson handled all of the finances and managed the Explorer Academy training. He was issued a credit and debit card so he could draw upon funds of the STEELA checking account for the benefit of the organization. After the Assistant Director received a phone call from U.S. Bank regarding a late credit card payment, an investigation was conducted regarding Kesterson’s use of the STLEEA account, as well as a Washington Police Department bank account controlled by Kesterson on behalf of STLEEA. Financial records revealed that Kesterson had been using the credit/debit card to make personal purchases. During the instant investigation regarding the STLEEA U.S. Bank account activity from 2018 to April 2019, no other members of the Washington Police Department or any other law enforcement agencies were found to be involved in Kesterson’s criminal activity.
This case was investigated by the U.S. Secret Service, Washington Police Department and O’Fallon, Missouri Police Department.
Former CFO of Long Island Real Estate Company Pleads Guilty to Multi Million Dollar FraudRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Kwesi Bovell, the former chief financial officer (CFO) of The Mulholland Group, a real estate company in Manhasset (Mulholland), pleaded guilty to one count of wire fraud in connection with his embezzlement of millions of dollars from his employer over the course of three years. The plea was entered before United States Magistrate Judge Gary R. Brown. When sentenced, Bovell faces up to 20 years in prison, as well as restitution and a fine.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the guilty plea.
As described in court filings and as admitted during his guilty plea, Bovell was hired in 2015 as CFO of Mulholland, and was given signature authority over numerous bank accounts of the company and its subsidiaries. Over the next three years, Bovell fraudulently transferred over $3.5 million from Mulholland to his own company, Southgate Holding, LLC. Bovell used the stolen funds to support two laundromats and a fitness center that he owned and to purchase luxury goods.
“With today’s guilty plea, Bovell has been held responsible for betraying his employer’s trust by stealing millions of dollars to benefit himself, from the time he was hired until the discovery of his fraud,” stated United States Attorney Donoghue.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Charles P. Kelly and Madeline O’Connor are in charge of the prosecution.
The Defendant:
KWESI BOVELL
Age: 36
Valley Stream, New YorkE.D.N.Y. Docket No. 18-571 (JMA)
Former Blackwater Employee RE-Sentenced for Fatal 2007 Shooting at Nisur Square in IraqRead the Press Release
WASHINGTON – Three former security guards for Blackwater USA were sentenced September 5, 2019, for their roles in the Sept. 16, 2007, shooting at Nisur Square in Baghdad, Iraq, that resulted in the killing of 14 unarmed civilians and the wounding of numerous others.
The sentencing, in the U.S. District Court for the District of Columbia, was announced today by U.S. Attorney Liu and Timothy R. Slater, Assistant Director in Charge of the FBI’s Washington Field Office.
Paul Alvin Slough, 39, of Keller, Texas, was sentenced to 180 months; Evan Shawn Liberty, 36, of Rochester, N.H., was sentenced to 168 months; and Dustin Laurent Heard, 37, of Maryville, Tenn., was sentenced to 151 months. All were found guilty by a jury on Oct. 22, 2014, following a 2 ½-month trial. On August 4, 2017, the Court of Appeals for the District of Columbia remanded the case to the district court for re-sentencing. The defendants were sentenced by the Honorable Senior Judge Royce C. Lamberth.
The jury found Slough guilty of 13 counts of voluntary manslaughter, 17 counts of attempted manslaughter, and one firearms offense. Liberty was found guilty of eight counts of voluntary manslaughter, 12 counts of attempted manslaughter, and one firearms offense. Heard was found guilty of six counts of voluntary manslaughter, 11 counts of attempted manslaughter, and one firearms offense.
At the sentencing hearing, Judge Lamberth explained, “We have 13 Iraqi citizens who were all innocent victims who were killed and 17 more who were injured. The defendants' orders were for self-defense, and they were firing wildly into cars. [Some of the victims were] turning around in the other direction. There was just wild shooting that could never be condoned by any court.” Judge Lamberth said that the sentences reflect “what kind of country is the United States. We hold our Armed Forces and our contractors accountable for their actions.” And he noted that “the government found and exposed and delivered to the world a trial where the truth of what happened in Nisur Square came out and was there for the world and the public to see, and I think the government of the United States deserves great credit for how the truth came out in this case and in this trial.” Judge Lamberth emphasized that he “squarely reject[s] any notion … that there is any question as to the factual guilt of each of the three defendants . . .”
The case was investigated by the FBI Washington Field Office’s Northern Virginia Violent Crime Squad, which has extraterritorial investigative responsibilities, and prosecuted by the U.S. Attorney’s Office for the District of Columbia.